indonesia-malaysia-thailand growth … imt-gt roadmap for development 2007–2011 set the vision for...

INDONESIA-MALAYSIA-THAILAND GROWTH TRIANGLE

Implementation Blueprint 2012–2016

iii

Contents

Abbreviations iv

Introduction: Background, Concept, and Guiding Principles 1

Background 1

From Roadmap to Implementation Blueprint 3

Concept and Guiding Principles 4

Sector Strategies and Flagship Programs 6

Sector Strategies 6

Transport and Energy 7

Trade and Investment 17

Tourism 20

Agriculture 21

Halal Products and Services 23

Human Resources Development 25

Operational Mechanism 27

Results-Based Monitoring 30

Concluding Remarks 32

Appendixes

1 Projects in the IMT-GT Implementation Blueprint 2012–2016 342 IMT-GT Implementation Blueprint 2012–2016: Initial Two-Year

Rolling Pipeline by Flagship Program, 2012–2013 59

iv

AbbreviationsADB – Asian Development BankAEC – ASEAN Economic CommunityASEAN – Association of Southeast Asian NationsBIMP-EAGA – Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth AreaCIMT – Centre for IMT-GT Subregional CooperationCIQ – customs, immigration, and quarantine D/D – detailed designEC – economic corridorECER – East Coast Economic RegionFA – final assessmentHRD – human resources developmentIB – Implementation BlueprintICD – inland container depotICQS – immigration, customs, quarantine and securityIMT-GT – Indonesia-Malaysia-Thailand Growth TriangleJBC – Joint Business CouncilJDS – joint development strategykm – kilometerLCC – low cost carrierMOU – memorandum of understandingMM – ministerial meetingMTR – mid-term reviewMRA – Mutual Recognition AgreementNS – national secretariatOTOP – one town, one product PCP – priority connectivity projectPPP – public−private partnershipRoRo – Roll-on Roll-offSBEZ – special border economic zoneSEZ – special economic zoneSMEs – small and medium-sized enterprisesSOM – senior officials’ meetingTEKIH – Trans Eastern Kedah Interland HighwayTICA – Thailand International Development Cooperation AgencyWG – working group

Note: In this report, “$” refers to US dollars unless otherwise stated.

1

Introduction: Background, Concept, and Guiding Principles

Background The Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) subregional economic cooperation program was established in 1993 with the goal of accelerating the economic transformation of the member states and provinces in the three countries by exploiting their underlying complementarities and comparative advantages. Since its establishment in 1993, IMT-GT has expanded to its present geographic scope of 32 provinces and states—14 provinces in Southern Thailand; 8 states in Peninsular Malaysia; and 10 provinces in the island of Sumatra in Indonesia (Table 1). The member states and provinces in this subregion form a natural bloc for economic cooperation given their many complementarities; geographical proximity; and close historical, cultural, and linguistic ties. The subregion is predominantly agricultural, with

Table 1. IMT-GT Participating States and Provinces

Indonesia Malaysia Thailand

Aceh Melaka Nakhon Si Thammarat

Bangka Belitung Kedah Narathiwat

Bengkulu Kelantan Pattani

Jambi Negeri Sembilan Phatthalung

Lampung Penang (Pulau Pinang) Satun

South Sumatra Perak Songkhla

Riau Perlis Trang

Riau Islands Selangor Yala

North Sumatra Chumpon

West Sumatra Krabi

Phangnga

Phuket

Ranong

Surat Thani

2 Implementation Blueprint 2012–2016

abundant lands and rich natural resources that are potential sources of high economic growth that could help reduce poverty. Combined with a dynamic private sector, these endowments have the potential to transform the subregion into a powerful growth magnet and substantially improve the quality of life in the IMT−GT subregion. The subregion has a population of about 70 million whose consumption spending is an important factor for sustaining output growth.

Supported by the active dynamism of the private sector, several key initiatives were implemented in trade, travel, and tourism, as well as in physical connectivity improvements within the IMT-GT subregion. Early progress in the IMT-GT subregional cooperation initiative, however, was stalled by the 1997 Asian financial crisis, compounded by constraints in the setting up of effectively functioning institutional mechanisms. Around the late 1990s to the early 2000s, IMT-GT experienced a hiatus. But the onset of economic recovery and continuing favorable economic performance in most of the Asian region in early 2000 triggered renewed interest in subregional cooperation initiatives in Asia, including the IMT-GT. The globalization of production and accelerating pace of regional economic integration in Asia have increased the strategic importance of subregional cooperation as a means to leverage national development efforts on linking with external markets. Thus, during the 1st IMT-GT Summit Meeting held in Malaysia in December 2005, the member governments reaffirmed their commitment to the IMT-GT program and agreed to the formulation of a roadmap to guide cooperative efforts among the three countries in the next five years. The Asian Development Bank (ADB) was requested to assist in formulating the first-ever roadmap for the subregion covering the period 2007–2011.

On the whole, the implementation of the IMT-GT Roadmap for Development 2007–2011 achieved modest results. The Mid-Term Review (MTR) of the Roadmap in 2009 maintained that the strategic thrusts of the roadmap remained relevant but project implementation has lagged behind. The MTR observed that the Action Plan Matrix (APM) supporting the roadmap needed to be transformed effectively into results to realize concrete benefits from cooperation under the IMT-GT program. Based on the MTR recommendations, the 17th Senior Officials’ Meeting and Ministerial Meeting (SOM/MM) held in Krabi, Thailand, in August 2010, discussed the idea of an implementation blueprint as a framework document to guide IMT-GT cooperation beyond 2011.

Apart from the need to catch up with the serious lag in project implementation, the SOM/MM recognized other compelling reasons to accelerate the pace of IMT-GT cooperation. The proximity of the Association of Southeast Asian Nations (ASEAN) Economic Community (AEC) target date of 2015 has prompted the need to accelerate the growth of lagging areas within the ASEAN member states so that they can take advantage of the opportunities from integration. Moreover, the Master Plan for ASEAN Connectivity (MPAC) launched in 2010 has explicitly recognized the important role of the three major subregional programs—the IMT-GT, Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA), and the Greater Mekong Subregion (GMS)—as building blocks to the physical, institutional, and people-to-people connectivity that is essential to ASEAN community building. These wide-ranging developments are potent forces that are likely to shape the content and pace of IMT-GT cooperation over the medium to long term. Moreover, the Asian financial crisis of 2008 underscored the need for countries to rebalance their economies through enhanced regional cooperation in trade and investment to mitigate the impact of external shocks from the developed countries.


From Roadmap to Implementation Blueprint

The IMT-GT Roadmap for Development 2007–2011 set the vision for IMT-GT as “a seamless, progressive, prosperous and peaceful subregion with improved quality of life.” Toward realizing this vision, the roadmap identified five strategic thrusts to

(i) facilitate and promote intra- and inter-IMT-GT trade and investment;

(ii) promote the growth of agriculture, agro-industry, and tourism;

(iii) strengthen infrastructure linkages and support to the integration of the IMT-GT subregion;

(iv) develop human resource and skills competencies, enhance mobility of labor, and strengthen environment and natural resource management; and

(v) strengthen institutional arrangements and mechanisms for cooperation, including public–private sector collaboration, participation of stakeholders at the local level, and the mobilization of support from development partners.

The roadmap specified two anchors where projects and activities would be clustered, namely: (i) a policy and regulatory anchor, which is aimed at providing an enabling policy and regulatory environment conducive to private sector activities in the IMT-GT subregion; and (ii) an anchor built around major IMT-GT connectivity corridors that can serve as the “trunk lines” from which development will radiate to neighboring areas through transport and economic linkages. All measures directed at facilitating the movement of capital, goods, people, and vehicles in the IMT-GT subregion constitute the “IMT-GT policy and regulatory anchor.” The second anchor was directed at using major IMT-GT connectivity corridors as the focus for the clustering of major economic activities, starting with the improvement of transport facilities and linkages, as well as other supporting infrastructure. The roadmap explicitly stated that the development of the IMT-GT should not only be consistent with, but also contribute to, the realization of the AEC.

There were 37 flagship programs/projects and more than 50 measures, programs, and projects identified at the time of the roadmap formulation. The operational responsibility for pursuing these programs and projects has been assigned to working groups in six areas, namely: (i) infrastructure and transport; (ii) trade and investment; (iii) agriculture, agro-based industry, and environment; (iv) tourism; (v) Halal products and services; and (vi) human resource development.

In 2009, the MTR of the IMT-GT Roadmap for Development 2007–2011 was initiated, following the directive of the 4th IMT-GT Summit held in Hua Hin, Thailand, in February of that year. As envisaged by the Leaders in their Joint Statement, the MTR would be comprehensive and inclusive of all stakeholders, and would include a review of IMT-GT’s business processes that will assess how IMT-GT mechanisms could function more effectively to achieve the goals set by the roadmap. A Business Process Review (BPR) to assess IMT-GT’s institutional mechanism was conducted by three eminent persons as a separate but parallel exercise in December 2009.


The MTR came up with a number of important findings. First, it raised the question of whether and to what extent IMT-GT cooperation was making a difference in stimulating economic development of its member states and provinces. It noted that while the private sector has established well-functioning business networks that are helping to boost trade and investment in the subregion, economic growth of the IMT-GT participating states and provinces has been either static or slow. Public-sector-led initiatives had limited progress: part of this could be attributed to the program’s hiatus following the financial crisis of 1998, and part of it was due to inherent weaknesses in the national and regional institutional mechanisms of the program. Second, the MTR observed the absence of explicit and well-defined sector strategies that could effectively guide the program/project formulation process, and recommended the set of strategies that should guide cooperation in the six sectors of cooperation. Third, the weaknesses in the strategy-program/project-fit resulted in flaws in the management of the project cycle and in the program’s business processes, including the evident lack of project accountability.

In its recommendations, the MTR stressed the need for a more disciplined and well-informed process for identifying projects based on sector strategies, clear accountability for delivering project outputs, monitoring based on results, and an action-oriented implementation blueprint to succeed the roadmap. The sector strategies that resulted from the MTR process were subsequently endorsed by the 17th SOM/MM in Krabi, Thailand, in August 2010. The strategies served as the anchor for further streamlining the flagship programs from 37 to 12, which eventually served as the basis for program and project identification for the Implementation Blueprint (IB) 2012–2016.

The Final Assessment (FA) of the Roadmap for Development 2007–2011, which was completed in March 2012, documented the transition from the roadmap to the IB. The FA reported that a number of projects, physical connectivity and transport linkages were implemented during the roadmap implementation period. Economic linkages among the IMT-GT member countries and provinces had grown with expanded private sector networks. The FA confirmed that the strategic thrusts and sector strategies of the roadmap remain relevant and should continue to be pursued during the IB period. To deepen economic cooperation and integration, the FA called for the adoption of binding subregional agreements in IMT-GT, and greater alignment of its cooperation programs with that of ASEAN to make itself an indispensable building block of ASEAN cooperation. Greater focus should be given to devising and implementing environmentally sustainable strategies to enable IMT-GT products to stay competitive internationally. A legalized Centre for IMT-GT Subregional Cooperation (CIMT) will be pivotal to the success of the IB.

Concept and Guiding Principles

The IB 2012–2016 reflects IMT-GT’s commitment to an action-oriented agenda for the next five years. Each project in the IB has a well-defined project concept and rationale linked to the relevant underlying strategy, with estimated cost, identified source of funding, and an accountable implementer. Specific milestones and results will also be specified. The criteria adopted for projects to qualify and to be included in the IB reflect these dimensions. Activities/projects in the first two years will be reflected in a 2-year rolling pipeline (RP), to be updated


annually. To be included in the RP, a project must have (i) a firm financing commitment; (ii) an operational plan indicating the activities to be implemented on a yearly basis; (iii) a system for monitoring results; and (iv) a pre-feasibility study, for infrastructure projects.

The following principles guided the contents of the IB:

(i) Connectivity, in its broad sense of linking geographic areas, facilitating economic transactions, and enhancing people-to-people interface, shall be the overarching objective that should guide the inclusion of projects in the IB, consistent with the rationale for the growth area model of subregional cooperation.

(ii) The sector strategies and the 12 flagship programs shall anchor the areas of cooperation in the IB. To the extent possible, linkages across sectors shall be defined to create greater synergies.

(iii) Consistent with the objective of narrowing the development divide between the rich and poor areas within the IMT-GT participating countries and provinces, and within each of the participating countries and provinces, the IB shall ensure that there is a desired balance in the mix of projects that promote economic and social objectives, in particular those that promote livelihood in remote areas outside the state and provincial capitals.

(iv) Projects should be part of the national or local development plans.

(v) Projects should be subregional projects (i.e., involving at least two countries); or national projects with subregional implications, or that can benefit from subregional synergies.

(vi) The IB should serve to catalyze investments from the private sector, including from small and medium-sized enterprises which are the basic production units in IMT-GT, and through innovative public–private partnership modalities, including for connectivity infrastructure.

6

Sector Strategies and Flagship Programs

Sector Strategies

The sector strategies developed in the course of the Mid-term Review of the Roadmap for Development 2007–2011 of the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) were discussed by the working groups (WGs) and the Senior Officials’ Meeting (SOM) at the Special Consultation Meeting in July 2010, and subsequently endorsed by the 17th SOM/Ministerial Meeting (MM) in Krabi, Thailand, in August 2010. They provided the basis for identifying the new set of 12 flagship programs, and the projects and activities in the Implementation Blueprint (IB) 2012–2016. Figure 1 explains how the IB projects in the 12 flagship programs support the overall objective and vision of the IMT-GT cooperation, and how they are realized through the implementation of the rolling pipeline and monitored by the results framework of the IB. The highlights of the six sector strategies are described below:

(i) In transport and energy, the strategy is to enhance the subregion’s connectivity, with particular focus on the priority connectivity corridors; while in energy, the focus will be on the sustainable development of the energy sector and in ensuring security, reliability, and cost-effectiveness of energy supply.

(ii) In trade and investment, the strategy is to pursue tangible, cost-efficient, and results-oriented action in the areas of regulation, public–private sector collaboration, and the provision of business services in areas where demand exceeds supply.

(iii) In agriculture, the strategy is to promote investments in production, processing, and marketing of agricultural products, with government focusing on reducing or eliminating the constraints to these investments; and at the subregional level, undertaking measures to promote coordination of policies and standards to facilitate production, as well as investment and trade-related initiatives to promote investments in the agriculture supply chain.

(iv) In Halal products and services, the strategy is three-pronged: (i) the development of regulatory processes and standards to maintain Halal integrity; (ii) the development of the Halal industry, including for small and medium-sized enterprises (SMEs); and (iii) the promotion of the IMT-GT Halal brand.

(v) In tourism, the strategy is to develop thematic tourism routes in the subregion and forge strategic alliances among the private sector in promoting thematic tourism.

(vi) In human resources development, the strategy is to collaborate on actions associated with the development of the competitiveness of the work force as well as improvements in labor mobility.


Figure 1. IMT-GT Implementation Blueprint: Strategic, Operational, and Results Framework

Sectors and Flagship Programs

Transport and Energy

Vision: The IMT-GT envisions a seamless, progressive, prosperous, and

peaceful subregion with improved quality of life.

Agriculture Trade and Investment

Objective: To increase intra- and inter-IMT-GT trade and investment

Rolling Pipeline: Programs/Projects/Policy Support/Activities/Events

Results Monitoring(Outputs and Outcomes)

Halal Products/ Services

Tourism HumanResources

Development

Five Connectivity

Corridors

Streamlining of trade

regulations and procedures

Promotion of logistics/

supply chain and business

services

Marine fisheries and aquaculture

development

Application of new technologies

for livestock

Trade in agriculture

Environment-friendly

agriculture

Halal integrity (standards

and certification)

Industry Development

Branding and promotions

Develop thematic tourism

routes or circuits with a

logical sequence of destinations

and sites

Enhanced labor mobility by adopting

Mutual Recognition Agreements

along the lines of the

ASEAN framework

Transport and Energy

IMT-GT cooperation aimed at physically integrating the subregion involves close collaboration among the three countries in the spatial planning of infrastructure connectivity, improving transport facilitation, and promoting air services and facilities as well as sea linkages through ports and Roll-on Roll-off (RoRo) services. The IMT-GT Roadmap for Development 2007–2011 has as one of its anchors, the development of IMT-GT connectivity corridors1 that would serve as the locus for the clustering of major economic activities, starting with the improvement of transport infrastructure, as well as other supporting infrastructure. The roadmap identified four connectivity corridors, and subsequently, a fifth one was added (Figure 2). These corridors are:

(i) Extended Songkhla–Penang–Medan Corridor (Nakhon Si Thammarat – Phatthalung – Songkhla–Yala–Pattani–Penang–Medan);

(ii) Straits of Malacca Corridor (covering the western coastal belt from Trang in Southern Thailand to Melaka in Peninsular Malaysia);

1 The Asian Development Bank (ADB) was requested to provide assistance in developing priority economic corridors in IMT-GT. In December 2007, ADB approved regional technical assistance (RETA) 6441: Efficiency Improvement and Connectivity Strengthening in aSEA for this purpose. Unless otherwise indicated, the description of the IMT-GT Connectivity Corridors and their subcomponents were taken from the consultants’ reports under this RETA.

Note: The Implementation Blueprint is based on the objectives in the Roadmap for Development 2007–2011, and revised action plans.


(iii) Banda Aceh–Medan–Pekanbaru–Palembang Economic Corridor (a road corridor running south to north through Sumatra);

(iv) Melaka–Dumai Economic Corridor (a maritime corridor linking Sumatra and Peninsular Malaysia); and

(v) Ranong–Phuket–Aceh Economic Corridor.

Figure 2. The Five IMT-GT Economic Corridors

Banda Aceh--Medan--

Pekanbaru --Palembang

Economic Corridor

Extended

Songkhla–Penang– Medan

Economic Corridor

Straits of Malacca

Economic Corridor

Melaka-- Dumai

Economic Corridor

Ranong– Phuket– Aceh

Economic Corridor

I N D I A N O C E A N

S o u t h C h i n a S e a

A n d a m a n S e a

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J a v a

S e a

Trang

Songkhla

Pattani

Narathiwat

Kota Bahru

George Town

Ipoh

Kuala Terengganu

Yala

Alor Star

Kangar

Kuantan

Seremban

KUALA LUMPUR

Melaka

Johor Bahru

Pekanbaru

Padang

Jambi

Tanjung Pinang

Palembang

Pangkal Pinang

Bandar Lampung

Bengkulu

Medan

Lingga Islands

Riau Islands

Bangka Island

Nias Island

Simeulue Island

Siberut Island

Batu Islands

Pagai Islands

Banda Aceh

Satun

Phuket

Krabi

Nakhon Si Thammarat

Surat Thani

Ranong

Phang Nga

Chumphon

Phatthalung

Shah Alam

Teluk Kuantan

Rengat

Baturaja

Lampung

Lahat

Tebing Tinggi

Binjai

Belawan

Kisaran

Rantau Prapat

Pematang Siantar

Sibolga

Aek Kanopan

Dumai

Pariaman

Sigli

Langsa

Lhokseumawe

Kuah

Kepala Batas

Bayan Lepas

Sepang

Subang

Batu Berendam

Senai

NORTH

SUMATRA

R I A U

PAHANG

WEST

SUMATRA

RIAU ISLANDS

J A M B I

SOUTH SUMATRA

BENGKULU

LAMPUNG

NANGGROE

ACEH DARUSSALAM

BANGKA

BELITUNG

TERENGGANU

KELANTAN

PERLIS

KEDAH

PENANG

PERAK

SELANGOR

MELAKA

JOHOR

NEGERI

SEMBILAN

Langkawi Island

Penang Island

PHANG NGA

PHUKET

KRABI

TRANG

SATUN

PHATTALUNG

SONGKHLA

PATTANI

NARATHIWAT

YALA

RANONG

CHUMPHON

SURAT

THANI

NAKHON SI

THAMMARAT

S U M A T R A

I N D O N E S I A

PENINSULAR

MALAYSIA

SINGAPORE

THAILAND

MYANMAR

IMT-GT Province/State

Economic Corridor

National Capital

Provincial/State Capital

City/Town

Airport

National Road

Other Road

Provincial/State Boundary

International Boundary

Boundaries are not necessarily authoritative.

INDONESIA-MALAYSIA-THAILAND

GROWTH TRIANGLE

Kilometers

0 50 100 150 200 250

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IMT-GT 11-1106d AV

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This map was produced by the cartography unit of the Asian Development Bank.

The boundaries, colors, denominations, and any other information shown on this

map do not imply, on the part of the Asian Development Bank, any judgment on the

legal status of any territory, or any endorsement or acceptance of such boundaries,

colors, denominations, or information.

This map was produced by the Cartography unit of the Asian Development Bank (ADB). The boundaries, colors, denomination, and any other information shown on this map do not imply, on the part of ADB, any judgement on the legal status of any territory, or any endorsement or acceptance of such boundaries, colors, denominations, or information.


The land corridors are basically intended to improve cross-border infrastructure and transport service connections between northern Malaysia and southern Thailand, as well as connectivity from south to north across Sumatra, while the maritime corridors are intended to enhance Sumatra’s links with Malaysia and Thailand. The land and maritime links are to be supplemented by air services, as well as transport facilitation measures that would make it easy to move goods and people across the subregion.

During the five years of roadmap implementation, several road projects have been implemented to connect northern Malaysia and southern Thailand, and the improvements along the north–south corridor in Sumatra have enhanced potential connectivity with the two countries in the peninsula. More cities within IMT-GT are also being interconnected by air with new low-cost carriers (LCCs) that have developed new aviation routes. Several seaport projects to establish linkages between Malaysia and Thailand, on one hand, and Sumatra, on the other hand, have also been initiated. However, although several infrastructure projects have started construction, technical, financial, and legal impediments continue to pose constraints to the timely implementation of infrastructure projects. Feasibility studies for a number of roads and other transport systems remain to be conducted or completed. A number of potential public–private partnership (PPP) projects are still looking for investors.

At the 4th IMT-GT Summit in February 2009, the Leaders resolved to individually and collectively strengthen implementation of programs related to the connectivity corridors and urged the Asian Development Bank (ADB) to help identify, prioritize, and finance appropriate projects for this purpose. Following the Summit directive, the SOM held in Putrajaya, Malaysia, in September 2008 agreed on a “fast-track” process of identification and endorsement of priority infrastructure projects that would be developed further with ADB support in terms of providing technical advice and mobilizing resources. Following a series of national consultations, an initial list of eight projects (referred to as priority connectivity projects or PCPs) was endorsed by the 16th SOM/MM held in October 2009 in Melaka, Malaysia. This list was subsequently modified to account for project-related issues and changes in financing plans. As of January 2012, 11 projects with a total estimated cost of $5.2 billion are in the PCP list (Table 2). Out of these projects, 10 are located in the priority connectivity corridors. One of the PCP projects—the Melaka–Pekanbaru Power Interconnection between Indonesia and Malaysia—is among the priority projects under the Master Plan for ASEAN Connectivity.


Table 2. IMT-GT Priority Connectivity Projects

No. Project Name

Estimated Project Cost

($ million) Financing

INDONESIA

1 Sumatra Ports Development 57.4 Government of Indonesia or official development assistance (ODA); listed in Blue Book

2 Melaka–Dumai Economic Corridor Multimodal Transport

875.2 Government of Indonesia or ODA; listed in Blue Book

3 Sumatra Toll Roads 493.0 Government of Indonesia or public–private partnership (PPP)

4 Most southerly section of the Eastern Highway from Bandar Lampung to Bakauheni and linked across to Java

820.0 Government of Indonesia or PPP

5 Melaka–Pekanbaru Power Interconnection 300.0 Possible Asian Development Bank (ADB) loan

6 Development of Aceh highway facilities: Banda Aceh–Kuala Simpang(Toll Roads)

2,000.0 Government of Indonesia or PPP

Subtotal for Indonesia 4,545.6

MALAYSIA

7 Melaka–Pekanbaru Power Interconnection 200.0 Government or PPP

8 ICQS Bukit Kayu Hitama 120.0 Private Finance Initiative

Subtotal for Malaysia 320.0

THAILAND

9 Southern Thailand Ports Development Program (Phuket Port and Naklua Port)

25.0 Government of Thailand

10 Hat Yai–Sadao Intercity Motorway 300.0 Government of Thailand or ODA

Possible ADB loan

11 Southern Region Cargo Distribution Center at Thungsong

28.0 Government of Thailand

Subtotal for Thailand 353.0

Grand Total 5,218.6

ICQS = immigration, customs, quarantine, and security.a This project was included in the priority list of projects by the countries at the 4th IMT-GT Working Group Meeting

on Infrastructure and Transportation held in Bangkok, Thailand, on 9–10 May 2011.


In the IB 2012–2016, greater focus will be given to addressing the gaps in economic corridor development, as well as the required infrastructure expansion to cope with the rapid growth of certain areas in the subregion.

(i) The road development for Sumatra Economic Corridor 3 will need to be accelerated through a combination of road and railway investments. In particular, the ASEAN Highway Route 25 between Banda Aceh and Palembang in Sumatra (north–south link) with associated road links to ports will be an important focus.2

(ii) In Malaysia and Thailand where the condition of the roads is better, the priority will be on the needed road improvements to cope with increased traffic volume and increased economic activity from industrial development in the border areas of Thailand and Malaysia. Among the priority routes are Hat Yai–Sadao, Padang Besar–Penang–Kuala Lumpur–Melaka, with main port linkages. Upgrading to Asian Highway standards would also be important (footnote 2).

(iii) Industrial development and the promotion of value chains in the border areas of Thailand and Malaysia are being pursued actively and will require close collaboration in the scoping, scheduling, and financing of master plans and related feasibility studies. Much of the ground work conducted under the Joint Development Strategy (JDS) bilateral framework between Thailand and Malaysia will be pursued under the IB.

(iv) As regards the maritime subsector, the development of Roll-on Roll-off (RoRo) services, especially across the Straits of Melaka and ports in Sumatra and southern Thailand, will be an important priority. Recent studies have observed that the potential for passenger RoRo services across the Straits is limited, unless major changes in passenger car access arrangements between Malaysia and Sumatra are made. This challenge will have to be addressed to better realize maritime connectivity with Sumatra.

Economic Corridor 1: Extended Songkhla–Penang–Medan Corridor (Nakhon Si Thammarat–Phatthalung–Songkhla–Yala– Pattani–Penang–Medan)

This Economic Corridor 1 (EC1) hosts some of the most agriculture-rich provinces in Southern Thailand that trade with Malaysia, Sumatra, and Singapore; and plays an important role in the supply chain of traded goods outside the subregion. The corridor covers the well-established international gateways of Songkhla, Penang, and Medan with well-equipped seaports that are important for bulk shipment of goods within the subregion and for providing onward shipping services to East Asia and Europe. The Songkhla to Penang subcorridor is a very important corridor for Thai exporters, particularly of rubber and related products, as well as agro-based products. However, customs facilities in this subcorridor need to be expanded to avoid delays due to congestion, especially during peak hours. The Medan–Penang subcorridor is well-developed although there is a need to improve inter-modal connection, including RoRo services, for greater efficiency and improved access to Belawan Port. Nakhon Si Thammarat

2 ADB. 2009. Mid-Term Review: Transport and Infrastructure Sector Strategy.


Province has vast potential for developing economic linkages with the rest of IMT-GT. The Hua It Agricultural Wholesale Market, located in the province, is the largest wholesale market in Southern Thailand supplying agricultural products to Malaysia and Singapore. Phatthalung Province, located in the rice-growing plain of Southern Thailand, also offers huge potential for cattle-raising to supply the IMT-GT subregion with meat and dairy products.

Further development of EC1 in the IB will focus mainly on strategic locations in Southern Thailand and Northern Malaysia. The initiatives involve

(i) large-scale development of special economic zones (SEZs), townships, and urban areas at the border of Southern Thailand and Northern Malaysia, in particular the Narathiwat Special Border Economic Zone in Thailand; and industrial and urban developments in Kelantan and Kedah States in the East Coast Economic Region (ECER) of Malaysia;

(ii) improvement and expansion of infrastructure connectivity (roads, bridges, ports) between Southern Thailand and Northern Malaysia as well as with Sumatra; and

(iii) expansion of customs, immigration, and quarantine (CIQ) and related facilities (container yards, container depots).

Special Border Economic Zones

Large scale development of special border economic zones (SBEZs) will involve the preparation of master plans and implementation plans in strategically located provinces in the border of Thailand and Malaysia. A master plan for the development of Narathiwat SBEZ (Thailand) is part of the long-term strategy to develop Sadao–Bukit Kayu Hitam, Narathiwat–Kelantan and the joint township at Betong–Pengkalan under the JDS—a bilateral cooperation framework involving Thailand and Malaysia. A master plan for Kota Bharu City will also be conducted by Malaysia to rationalize spatial planning and investments for the future development of Kota Bharu City, focusing on the required infrastructure and utilities, and the potential for developing new retail and leisure areas. Kota Bharu in Kelantan State has always been a center for cross-border trading and tourism due to its proximity to Thailand. Malaysia will also undertake a strategic implementation plan for the development of Bukit Bunga–Jeli, a new strategic entry point resulting from the opening of the Bukit Bunga–Ban Buketa Bridge (the “Friendship Bridge”) in Kelantan State in December 2007 and the establishment of the Bukit Bunga CIQ Complex in January 2011.

The establishment of an economic/industrial zone in Pengkalan Hulu Malaysia—the Northgate Manufacturing Park—is also being planned. Pengkalan Hulu is in the northernmost part of Perak and is a meeting point for Southern Kedah and Thailand. Its importance has been enhanced by the development of nearby border towns as a duty-free area. The Northgate Manufacturing Park to be established in the town will include recreational, retail, and commercial centers; border facilities (terminals and open yards); and health facilities.

Improvement and Expansion of Infrastructure Connectivity

To further enhance connectivity between Thailand and Malaysia, infrastructure improvements and expansion will be required at strategic locations. An important priority will be the Golok River bridges—the Takbai–Pengkalan Kubur Bridge (Thailand/Malaysia), and the


second Rantau Panjang–Sungai Golok bridge (Thailand/Malaysia). These two bridges have been identified for priority construction as part of the planned development of the Narathiwat SEZ. The construction of a bridge connecting Tak Bai (Narathiwat, Thailand) and Pengkalan Kubur (Kelantan, Malaysia) will replace the existing ferry service by providing a more stable and efficient means of crossing. A second CIQ Complex along the Takbai–Pengkalan Kubur Bridge will also be developed. The construction of the second bridge from Rantau Panjang (Kelantan, Malaysia) and Sg.Golok Town (Narathiwat, Thailand) will increase the capacity of the existing bridge-crossing at this location. Meanwhile, a feasibility study for the Hat Yai–Sadao Intercity Motorway will be conducted by Thailand. The proposed expressway will run parallel to the existing road to accommodate the large traffic volume flowing through several rural villages in Southern Thailand, as well as the increased flow of goods and passengers passing through the main gateway of Thailand and Malaysia.

To improve connectivity with Sumatra, improvements in Belawan Port (Indonesia) will consist of building a temporary RoRo facility to enable the port to handle the proposed RoRo link with Penang, handling existing fast and unconventional traffic vessels. The LCC Firefly will also open an additional route, flying directly from Medan (Sumatra) to Ipoh (Perak). The Ipoh–Medan Direct Flight is in response to the Leaders’ directive to further enhance air connectivity with Sumatra. The direct flight is envisaged to promote Perak’s potentials in nature and heritage tourism, as well as provide residents of Sumatra with the opportunity to avail themselves of medical services at the Ipoh Specialist and Pantai Hospital. The project will complement the route from Melaka to Medan.

Expansion of CIQ and Related Facilities

The new Sadao CIQ Complex Development will accommodate the huge demand for cross-border travel and trade along the Sadao–Bukit Kayu Hitam border. The new system will allow traffic to be segregated between tourists and cargo trucks. The CIQ Complex at Bukit Kayu Hitam in Kedah State, which borders Sadao, will also be expanded to cater to long-term requirements and will be equipped with secure and efficient facilities in order to reflect the image of the main entry point to the country. CIQ facilities will also be constructed at the borders of Nathawi–Ban Prakob (Thailand) and Durian Burung–Pedu Kupang and Durian–Burung-Alor Setar (Malaysia). The construction of these border CIQ facilities will improve connectivity to the Thai gateway in Durian Burung through the Trans Eastern Kedah Interland Highway (TEKIH) Project, as well as through the upgrading of the Durian Burung-Alor Setar road network. The port at Kuala Enok will also be developed by upgrading the access road and developing the Bulk Terminal. On the Malaysian side, the upgrading of TEKIH will connect the gateway to Thailand in Durian Burung with the East–West Highway through Baling, Kedah. The second CIQ Complex along Takbai–Pengkalan Kubur Bridge will be developed to facilitate cross-border travel and trade along the Thailand–Malaysia border.

The planned construction of the Inland Container Depot at Padang Besar (Malaysia) is envisaged to accommodate increased trade volume of rubber, auto parts, electronic products, and perishables that pass through this strategic border between Malaysia and Thailand and which links directly to Penang Port via the Ipoh–Padang Besar double track rail link. With the project, the potential for outbound commodity traffic can be increased through uninterrupted rail connectivity within Malaysia, and commodities will flow faster and safer from Padang Besar to Penang port and back. These will lead to the development of suitable logistics-cum-transport infrastructure to boost trade through the Malaysia–Thailand border.


In Thailand, the construction of the Southern Region Cargo Distribution Center at Thungsong, Nakhon Si Thammarat will serve as a hub in Southern Thailand, connecting domestically via multimodal links to Kantang seaport in Trang Province. The project will leverage on Thungsong’s central location in Southern Thailand and the current high volume of traded goods (cement, ores, minerals, industrial products) passing through Nakhon Si Thammarat, Trang, Surat Thani, Krabi, and Phatthalung; and connecting with the rest of the subregion via multimodal links. In Kuala Perlis (Malaysia), the planned upgrading of fish landing jetty into an international fisheries port is a response to the increasing quantity of fish landed at the port, increased number of boats, and active barter trading. Based on existing activities, the landing jetty has exceeded its capacity resulting in haphazard layout of facilities and congestion.

On the whole, the projects to be implemented in EC1during the IB’s 5-year period will address the traffic build-up and congestion resulting from the increased pace of economic activity between Southern Thailand and Northern Malaysia. Traffic volumes are even more likely to increase as the major industrial developments planned along the border province in Thailand that would lead to the ECER are realized. This highlights even more the importance of upgrading the CIQ facilities; and simplifying customs, immigration and quarantine procedures in order to maximize the benefits from investments in infrastructure.

Economic Corridor 2: Straits of Malacca Economic Corridor (also referred to as Trang–Satun–Perlis–Penang–Port Klang–Malacca Connectivity Corridor)

Due to the proximity of this corridor to Sumatra, there is considerable potential for complementation in various stages of the production chain with this province, especially if a series of economic and industrial zones are established at strategic points along the corridor. This corridor has the potential to serve as a food hub, especially for Halal, since a number of food terminals and integrated food centers are being planned within the corridor. The corridor can be transformed into a coastal belt development zone. The Straits of Malacca Economic Corridor (EC2) is important for expanding connectivity—physical, economic, commercial—between Southern Thailand and Peninsular Malaysia along the western coast. The approach to connectivity along this corridor is multi-modal—with land as well as coastal linkages. With the recent upgrading of supporting CIQ and related facilities, traffic growth between Kantang Port in Trang Province, Thailand, and Penang Port, Malaysia, averaged 37% per year since Trang Province became a member of IMT-GT in 2004.3 Improvements in Port Klang, as part of the Harbor City Development, saw the construction of a new passenger terminal, with an IMT-GT plaza, to accommodate more tourists and passenger boats for which a duty free status is being arranged.

For the period 2012–2016, the major infrastructure initiatives under EC2 will include the (i) development of Kantang Coastal Port at Naklua (Thailand), (ii) construction of inland container depot rail link, and (ii) upgrading of the existing state road between Kaki Bukit and Wang Kelian.

3 ADB. 2008. Logistics Development Study of IMT-GT.


The development of Kantang Coastal Port at Naklua involves the construction of a bulk and break bulk port in Trang Province to further facilitate sea transportation, especially for the increasing volume of rubber exports (via the Andaman side of Thailand) to the subregional, Asian, and global markets. The new port at Kantang will develop connectivity to Malaysia via the Trang–Satun–Melaka Corridor. Meanwhile, rail link to connect the Inland Container Depot to Kantang Port in Trang Province will also be constructed, which will potentially enhance the connectivity between Thailand and North Sumatra. The expansion of Kantang Port at Naklua halfway to the sea, responds to the recent increase in the growth of sea transportation by barges from Kantang Port to the ports in Penang and Belawan. This will enhance the access of goods moving along the corridor to transshipment points to other parts of Asia.

The road upgrading between Kaki Bukit and Wang Kelian (Malaysia) is intended to provide a smooth link to the second entry point in the State of Perlis with Wang Prachan, Thailand; and set the stage for smoother and faster commodity flow from Wang Kelian to Penang Port and back.

Economic Corridor 3: Banda Aceh–Medan–Pekanbaru–Palembang Economic Corridor

The Banda Aceh–Medan–Pekanbaru–Palembang Economic Corridor (EC3), which is part of ASEAN Highway Network (AH) 14 (Banda Aceh–Medan–Dumai–Palembang–Bakaheuni), is of critical importance for developing Sumatra. It is also an important building block for further enhancing connectivity within the IMT-GT subregion. Its development is closely linked with that of the other three corridors. It complements the Extended Songkhla–Medan–Penang corridor, as it will improve the flow of goods and services to major trading centers and staging points in Sumatra, which can then connect with those in Southern Thailand and Northern Malaysia. It provides access to several international ports in the eastern coast of Sumatra such as Banda Aceh, Medan, Pekanbaru, Dumai, and Jambi. The fourth corridor between Melaka in Malaysia and Dumai in Indonesia constitutes another principal link between Sumatra and Peninsular Malaysia. In terms of the corridors, it serves as another link between the Straits of Malacca Economic Corridor and the Banda Aceh–Medan–Pekanbaru–Palembang Economic Corridor.

Several projects falling under EC3 are included in the PCPs, namely:

(i) Sumatra Toll Roads. The Palembang and Indraraja Toll Road is located in the Eastern Highway running south out of the city toward Bandar Lampung [22 kilometers (km) stretch]; the Palembang–Betung Toll Road is part of Sumatra Eastern Highway. The proposed toll road is planned to minimize traffic load on Palembang–Betung corridor and will support the accessibility to and from the future sea port of Tanjung Api-Api. It is envisaged to create positive impact on economic growth in South Sumatra Province, which produces abundant natural resources from agriculture, fishing, and plantation.

(ii) Bakauheni–Terbanggi Besar Toll Road. The project will provide better infrastructure and facilities to attract more foreign tourists particularly from neighboring countries. The project will put up a toll road in Bakauheni–Terbanggi Besar located at Lampung Province which is part of the Sumatera Eastern Highway.


(iii) Banda Aceh–Kuala Simpang Toll Road. The project will provide better infrastructure (toll road and highway) and facilities to attract tourists in Banda Aceh. The project will cover Banda Aceh–Sumatera and part of the Sumatera Eastern Highway.

(iv) Sumatra Ports. The Ulee Lheue Port project consists of adding another dolphin and a walkway and installing a CIQS facility in the existing terminal; while the Malahayati Port project consists of providing an operational container terminal, which will require strengthening and widening of the dedicated quay, paving the container yard, dredging along the quay to increase the water depth to 9 meters (m), and providing mobile container crane and other equipment. Meanwhile, the Belawan Port project will build temporary RoRo facilities, and will involve a technical study on drainage and flooding and feasibility studies for passenger terminal relocation and break-bulk wharf expansion.

Other important projects in EC 3 are the ASEAN Highway route 151 East–West Feeder Link between Pekanbaru–Bukittinggi–Pematang Siantar–Jambi-Sarolangun; Bengkulu–Lubuk Linggau–Lahat; Baturaja–Bandang Lampung (Indonesia);4 and the ASEAN Highway Route between Banda Aceh and Palembang (Indonesia) which involves improving the width of the road.

Economic Corridor 4: Melaka–Dumai Economic Corridor

This maritime corridor has a long tradition of freight and passenger traffic between Sumatra and Malaysia. Under the Melaka–Dumai Economic Corridor Multimodal Transport Project are two components: (i) Dumai Port, and (ii) Pekanbaru–Dumai Road. Dumai, the gateway port of Riau Province, is one of the richest provinces of Indonesia with abundant palm oil plantations and on-shore oil and gas resources. The port of Dumai is located opposite the Malaysian port of Malacca and lies adjacent to one of the narrowest stretches of the Straits of Malacca. Dumai is principally a palm oil-related export port with general cargo, fertilizer, cement, and rice being the main import traffic. The Kuala Enok Port development will handle the transport of palm oil which at present has to be sent up to Dumai using the congested Eastern Highway. The Dumai Port Project will involve completion of the container terminal. The Pekanbaru and Dumai Road will provide an important port access road and connectivity road for a future RoRo service to Malaysia. The port at Kuala Enok will also be developed by upgrading the access road and developing the Bulk Terminal.

On the Malaysian side, there are four ports on the west coast with maritime connectivity to the Riau Province, in Sumatra. In the south is Malacca, further north is Sungai Linggi, then Port Dickson, and finally Port Klang. Malacca, which has a long history as a successful trading post, is now predominantly an anchorage port, having lost its trade position in favor of Penang and Singapore. Further north is the port of Kuala Linggi where a RoRo facility has been recently constructed to connect with Dumai. Another port further north is Port Dickson, approximately 90 km south west of Kuala Lumpur, that can accommodate bulk cargoes. A new ferry terminal to accommodate the fast craft services to Dumai has modern facilities consisting of a passenger hall with full CIQS facilities and a jetty pier. Port Klang is the largest port in Malaysia handling 152 million tons of cargo a year, of which 130 million tons is in containers. The major cargo operations are concentrated within the North Port and West Port complexes. The old Passenger Cruise Terminal (PCT) is located at Southpoint, formerly

4 Baturaja–Bandang Lampung does not belong to any economic corridor.


known as South Port, and it caters to passengers bound for Indonesia and cruises. Facilities are understood to be suitable. From a logistics aspect, developing integrated activities along the corridor is very limited as there are no major commodity flows between both locations.

The Melaka–Pekanbaru Power Interconnection (Indonesia and Malaysia) along EC2 has the objective of exchanging expensive peak load against cheaper base load between the two countries by making use of the (i) one-hour time difference between them; and the (ii) difference in peak hours and load curve pattern (Malaysia has a day peak, while Sumatra has a night peak). The Melaka–Pekanbaru Power Interconnection will involve construction of a 500 kilo-Volt (kV) high voltage direct current (HVDC) power transmission line between Malacca and Pekanbaru. The proposed project foresees the construction of a 600 megawatt (MW) ±250kV HVDC transmission line from Sumatra to Peninsular Malaysia plus converter stations and other transmission facilities. The project also traverses the Banda Aceh–Medan–Pekanbaru–Palembang Economic Corridor.

Economic Corridor 5: Ranong–Phuket–Aceh Economic Corridor

The Ranong–Phuket–Aceh Corridor is envisaged to enhance the connectivity between Sumatra and Southern Thailand primarily through maritime mode. Connectivity will be established through the development of facilities in key ports in Sumatra, among them Ulee Lheue and Malahayati. Ulee Lheue is a newly-reconstructed port serving RoRo ferry and fast craft to the island of Weh (Sabang) and can accommodate, with some minor adjustments, passenger vessels and RoRo services from the south of Thailand (Phuket). Malahayati is also a reconstructed port which is the natural freight gateway port for Banda Aceh. Despite very limited trade between southern Thailand and Banda Aceh, tourism possibilities exist and could be developed between Phuket and Sabang, which has a lot of unspoiled places to offer. Currently, the facility at Phuket Port is very limited, with no passenger terminal, RoRo ramp, or container facilities. Ranong Port located at the extremity of the corridor in Southern Thailand at the mouth of Kraburi River in Ranong Province, basically serves as a supply base for oil and gas offshore exploitation and can accommodate limited container service between Ranong and Port Blair, Rangoon, and Chennai. Plans to develop Ranong as the western gateway of Thailand is constrained by the absence of a significant hinterland and rail connection.

Under the Southern Thailand Ports Development, the Phuket Port (Thailand) Project aims to provide a passenger facility complementing the role of Phuket as a major tourist destination on the west coast of Thailand through the development of a relatively low cost direct passenger or passenger RoRo service facilities. The primary structure is the new passenger terminal with a projected building, which will be 60 m long and 40 m wide, sufficient for intermediate passenger processing. To develop a RoRo service, a new facility would be required, as the existing quay is a standard general cargo berth with no ramps. The project would provide the port with high quality passenger handling facility, comparable with other ports in the region, to be used by cruise liners. The facility would complement the image of Phuket as a tourist “hub,” which the Tourist Ministry and provincial authorities are trying to project.

Trade and Investment

IMT-GT cooperation in trade and investment facilitation includes measures aimed at enhancing the competitiveness of the subregion for investment and exports by reducing the


cost of doing business and promoting the freer flow of goods and services in the IMT-GT subregion. Consistent with this thrust, a number of initiatives were implemented during the period 2007–2011, among them are: (i) establishment of one-stop investment centers to facilitate licensing and processing of business permits, (ii) conduct of the Sumatra Investment and Trade Survey (SITS) which provided inputs to planned improvements in the business and regulatory environment, (iii) publication of the Business Opportunities Directory, and (iv) organization of numerous trade fairs and investment missions.

Given the modest accomplishments under the IMT-GT Roadmap for Development 2007–2011, the importance of reducing business transactions costs, through the streamlining of trade regulations and procedures, will be given greater focus and accelerated during the IB period 2012–2016. More specific measures will include:

(i) Streamlining of trade regulations and procedures. This would entail: (i) streamlining CIQ formalities and other border customs, immigration, quarantine, and security/transit procedures; (ii) conducting an inventory of all other measures affecting border trade in IMT-GT and minimizing them; (iii) rationalizing port fees and charges (e.g., customs license, quarantine charges, and terminal charges); and (iv) establishing bilateral payment arrangements.

(ii) Provision of logistics/supply chain and business services. In view of the number of priority ports that have been identified for implementation, an assessment would be needed of the demand for logistics and business services along the corridors where these ports are located (i.e., transport, cargo handling, storage, rental or leasing, packaging, laboratory testing, finance, insurance, accounting, management, information and communication, and advertising services). Business services would include the establishment of common wholesale markets (IMT-GT plazas) with duty- free status in border locations, for the preferential display for IMT products.

(iii) Addressing constraints and impediments to doing business in the subregion. This would entail the assessment of constraints and impediments experienced by the private sector in doing business in the subregion. Areas to be covered include business formation/structure and ownership, zoning, licenses and permits, contracts, corporate law, accounting practice, environment, land rights (purchase, lease, and concession), employment, pricing and taxation, foreign exchange, intellectual property, and consumer protection.

The set of projects that support these measures for implementation in 2012–2016 are described below.

Streamlining Trade Regulations and Procedures

The 16th SOM/MM established the Task Force on CIQ under the Working Group on Trade and Investment (WGTI) with the objectives of (i) strengthening CIQ initiatives aimed at simplifying cross-border procedures; (ii) making rules, regulations, and procedures more transparent; (iii) identifying specific issues and practices in the proposed areas of simplification, both on entry-to-entry point and on a multilateral basis; (iv) developing a simplified, improved, and time-bound system in processing documents at identified entry points; and (v) simplifying procedures in complying with quarantine standards, under World Trade Organizations/Sanitary and Phytosanitary Agreement. The CIQ initiative will contribute to ongoing trade facilitation in ASEAN. The Task Force will conduct a benchmarking and gap analysis exercise


to determine the priority ports and border crossings that will undertake improvements in CIQ administration. A memorandum of understanding (MOU) is envisaged to define the scope of improvements to be undertaken in the priority border crossings. The initiatives under the CIQ Task Force would be consistent with ASEAN Trade Facilitation initiatives such as the ASEAN Single Window, ASEAN Customs Transit System, ASEAN Trade Repository, among others.

As part of the CIQ initiatives, Thailand will be pursuing a Thai Immigration Cooperation Framework which seeks to contribute to the goal of harmonizing immigration systems in IMT-GT. Harmonization schemes will be piloted at Bukit Kayu Hitam–Sadao, and Padang Besar–Sg. Golok–Rantau Panjang to include a one-stop service center in each of these borders, a paperless visa system, and a 24-hour CIQ operation. For this purpose, a cooperation framework which will provide inputs to refinements in Thailand’s Immigration Act, will be formulated.

Exchange of study visits of CIQ personnel will be carried out to allow them to jointly receive, assess, and summarize appropriate policy recommendations on CIQ management. The exchange is expected to broaden their perspective through interaction and exchange of information and experience. This interaction and increased understanding are expected to facilitate the needed adjustments in the rules and regulations between the two countries as may be needed.

The CIQ Complex Development at Narathiwat and Songkhla will also be undertaken to accommodate increased cross-border activities. This will include the construction of facilities at Ban Prakob, Sadao, and Takbai.

Provision of Logistics/Supply Chain and Business Services

The IMT-GT Contact Center was launched in April 2011 in Perak, and is currently serving retailers in IMT-GT through customer services outsourcing, business matching, publicity, and information and networking. Retailers and small and medium-sized enterprises (SMEs)/industries comprise more than 75% of business units in the IMT-GT and are therefore important players in the subregion’s economy. By providing business services, the center is able to assist these enterprises to expand their business opportunities and realize better returns on investments for their products and services, as well as compete at global standards. The center’s services are provided 24/7 through an electronic portal which buyers and sellers in 32 IMT-GT provinces can access. The portal also serves as a platform for publicity and networking, and business-to-business (B2B) solutions. To further promote cross-border trade, tourism, and commercial industrial development, a strategic implementation plan for Bukit Bunga–Jeli and a master plan for Kota Bharu City will be formulated.

Addressing Constraints and Impediments to Doing Business in the Subregion

The private sector has taken the initiative of constructing wholesale markets (IMT-GT plazas), especially in the border areas where CIQ facilities, passenger terminals, and economic zones have cropped up. These plazas—such as those that have been developed in Trang, Thailand; Batam, Riau Island, Indonesia; Bukittinggi, Padang, Indonesia; and Sabang Island, Indonesia—provide the space and facilities where producers, especially SMEs can showcase and sell their products. Apart from plazas, the private sector has also participated actively in the construction of townships in strategic locations: Kota Putra Township, Kota Perdana Township, Takbai–Pengkalan Kubur, Sungai Golok–Rantau Panjang, Buketa–Bukit Bunga; and Betong–Pengkalan Hulu. The development of Border Township at Padang Besar (Friendship


City) is in progress. Also ongoing in Klang, Selangor is the Harbor City Development Project which includes a passenger terminal, RoRo jetty, IMT-GT Plaza, and a duty free terminal.

An annual IMT-GT Trade Fair is organized by the five southern provinces of Thailand to promote trade opportunities for consumer goods and showcase products developed under the One Town, One Product (OTOP) Program. It provides a platform for increasing market share among existing customers in IMT-GT areas; launching a business to a new market; strengthening relationships with existing suppliers and vendors in IMT-GT areas; and forging relationships with new suppliers and vendors. Thailand also conducts an annual trade mission to Malaysia and Indonesia to encourage Thai entrepreneurs to expand their business network in IMT-GT countries, and to increase trade opportunities for Thai companies in the growing Malaysia and Indonesia market. Thai entrepreneurs in the 14 southern provinces find business partners and trade opportunities in Malaysia and Indonesia.

Tourism

The rich natural and cultural destinations in IMT-GT offer tremendous potentials for tourism. Although the share of IMT-GT countries among the Southeast Asian countries is significant, it remains small from a global perspective and below potential given the richness of their cultures and biodiversity, the pristine beaches, and mountains and tropical forests. Cooperation in the tourism sector focuses on four areas, which are: (i) joint tourism promotion and marketing for IMT-GT as a tourist destination; (ii) development of tourism products and facilities, as well as new IMT-GT tourist destinations in each of the IMT subregions; (iii) promotion of regional and international sea and air linkages with IMT-GT; and (iv) capacity building for skills needed by the tourism industry in the subregion.

Currently, a strategic framework for cooperation in the tourism sector is not in place making it difficult to determine the issues and priorities that would yield the optimal results and garner the full support of all the stakeholders especially the private sector. Although the preparation of a tourism master plan for IMT-GT was envisaged in the roadmap, initial discussions have not progressed to full implementation and realization of the plan that would identify subregion-wide opportunities, weaknesses, and gaps. A more strategic plan would also have enhanced collaboration and cooperation between tourism and natural heritage site managers, improved subregional institutional arrangements, and developed capacities and resources for implementation.

Recent trends in the tourism sector are shaping the development of innovative tourism products. There is a growing trend of travel based on activity-interest rather than on destination. Examples of these are tours built around cultural themes, biodiversity themes, or ecotourism that can cover multiple countries. This augurs well for IMT-GT’s strategy of marketing the subregion as a single destination based on the countries’ shared historical, cultural, and religious heritage. Moreover, interconnectivity among various stakeholders in the industry has become a common practice in contemporary tourism. This is reflected in strategic alliances, collaboration between public and private sectors, and partnerships between countries and regions which have become common practice in contemporary tourism. Convergence between priority tourism routes and physical connectivity is also being effectively addressed through careful planning and coordination of investments under the framework of IMT-GT cooperation.


Development of Thematic Routes and Circuits

In the IB 2012–2016, cooperation in tourism will focus on (i) designating and developing thematic tourism routes or circuits with logical sequence of destinations and sites; and (ii) forging strategic alliances among medical service providers to promote medical tourism. A novel thematic tourism product that has been identified for promotion is the Magic Journey along the Traversed Route by Luang Pu Tuad (Thailand) based on a cultural/religious theme aimed at attracting Buddhists from the IMT-GT subregion as well as outside the region. Tourist activities will involve not only paying homage to Luang Pu Tuad, one of the most revered monks in the history of Thailand and Malaysia, but will also involve awareness and experience of local culture and lifestyles along the journey. The Magic Journey by Luang Pu Tuad will also connect and integrate with nearby tourism destinations in Songkhla, Pattani, and Nakhon Si Thammarat in Thailand; and Kedah and Perak States in Malaysia.

To promote the homestay concept, an International Homestay Promotional Fair will be held in Perak in June 2012 (to coincide with Visit Perak Year) and in Negeri Sembilan in March 2013. The homestay concept is focused on lifestyle and experiential tourism where the uniqueness of the traditional songs, dances, cuisines, and sports, as well as rural economic activities, are the main attractions. The event will help promote awareness of the potentials of the homestay concept with the view to aligning homestay programs with ASEAN standards.

Strategic Alliances

Medical tourism will be promoted by presenting southern Thailand, together with Malaysia, as a medical tourism hub, based on their respective areas of expertise. The initial phase will involve (i) sharing of information, joint selection of target groups, and establishing a network of medical services in the subregion based on strategic business partnerships in specialized fields; (ii) conduct of joint research, and the development of marketing products; and (iii) capacity building to enhance medical service standards and quality. In the long run, both countries should be able to share expertise and jointly tap into the market for medical tourism based on each country’s distinctive competence, thus avoiding price competition through the lowering of service standards. A joint marketing team will promote the medical hub within and outside the region. Medical tourism will also extend to hotels, accommodations, and restaurants, as well as financial and health insurance services.

Agriculture

Although Indonesia, Malaysia, and Thailand have relatively large agriculture sectors, and the crops produced by them are similar, the differences in factor endowments suggest an opportunity for specialization. IMT-GT cooperation in agriculture seeks to promote investments in the production, processing, and marketing of agricultural products to take advantage of the complementarities within the subregion. The areas of complementarities that offer significant opportunities for production and investment are marine fisheries, aquaculture and livestock, and agricultural crops.

Among the primary sectors, marine fisheries offer the greatest scope for economic cooperation, resulting from the three countries’ inherent differences in resource endowments, input costs, and respective stages of technological development. For aquaculture and livestock, the major opportunities involve the expansion of existing productive capacities and the application of


new technologies, especially for sheep, goats, and cattle that have large export potentials. Meanwhile, agricultural crop production in the three countries has undergone changes in the composition of production and have become diversified as a result of its robust economic growth, thus opening up the opportunity to relocate activities for which the country’s comparative advantage has been diminished. For tree crops, in particular rubber and palm oil, the IMT-GT countries use similar production techniques and are competitors in the export market for these goods. The scope of cooperation in tree crops would mainly be in the form of institutional arrangements to set guidelines for sustainable production and accreditation for certification standards.

The strategic thrusts of cooperation in the agriculture and agro-based industry sectors are: (i) promotion of investments and business opportunities in the production and processing and marketing of agricultural products in the IMT-GT subregion; (ii) cooperation in research and development activities related to agriculture to help upgrade technology and increase productivity; and (iii) promotion of environmental management and sustainable practices in fishery, forestry, and plantation agriculture. Several activities to support these strategic thrusts have been implemented or initiated during 2007–2011 as part of the implementation of the IMT-GT Roadmap for Development. These include, among others, the establishment of a beef cattle breeding center, the development of beef cattle and goat production biotechnologies, the conduct of seminars and expos on fisheries, and the development of a fisheries sector website.

For the period 2012–2016, the priority projects for cooperation in the agriculture and agro-based industry sectors will focus on (i) strengthening the IMT-GT network for animal production and biotechnology; (ii) development of agro-eco-friendly agriculture, (iii) promotion of high value-added agriculture and fisheries partnership arrangements, and (iv) conduct of IMT-GT expo and seminar for fisheries.

Application of New Technologies for Livestock

Farmers in Southern Thailand face the need to meet the high demand for meat through increased productivity. Native cattle and goat breeds do not yield high production but are naturally resistant against tropical diseases, parasites, and hot/humid weather. On the other hand, exotic breeds of cattle and goats will not survive in such tropical conditions but they have higher production. To address this situation, the IMT-GT Network for Animal Production and Biotechnology Project expects to increase beef cattle and meat goat crossbreeds production by artificial insemination techniques, as well as exotic breeding bucks and does using embryo transfer technology.5 Producing crossbreeds will increase the productivity and disease-resistance of cattle and goats for which there is high demand from farmers in Southern Thailand to meet consumption. The project will also establish a reproductive biotechnology laboratory in Surat Thani Province and provide training courses in artificial insemination for farmers. The development of SurathRed goat breed, which is a cross between the Thai native goat and the exotic European breeds (Toggenburg and Kalahari Red), is a specific case to be undertaken by the IMT-GT Network for Animal Production and Biotechnology Project.6 The SurathRed is more tolerant to heat, diseases, and tropical parasites; and will increase livestock productivity and farmers’ income.

5 The project is the result of a merger of two projects, namely, “Beef Cattle and Goats Production Biotechnology IMT-GT Network,” proposed by Thailand; and “The International Breeding Center for Cattle” proposed by Indonesia.

6 The development of SurathRed goat breed is an extension of the IMT-GT Network for Animal Production and Biotechnology Project.


Development of Eco-Friendly Agriculture

To further boost research in ecologically-friendly agricultural technologies, the Department of Agriculture of Thailand has offered to develop a model center for the integration of ecological research for sustainable agro-production processes through the use of renewable resources in the production sector. The center will serve as a platform for the development of eco-friendly agriculture through the adoption of appropriate technologies. It will disseminate its research findings to farmers and other researchers in the region, including the provision of technical services. It is also envisaged to be a repository of the collection of traditional plant species, a model community learning center, and the hub for technological innovation for research in sustainable agriculture.

Promotion of High Value-Added Agriculture, Fisheries, and Aquaculture

A BIMP-EAGA and IMT-GT High Value Agriculture Business Conference and Trade Expo will take place in late 2012 to pitch the potential of IMT-GT and BIMP-EAGA to become global players in the production of premium foods. Endorsed by the 5th IMT-GT Summit in October 2010 and the 7th BIMP-EAGA Summit in May 2011, the conference and expo will have the theme, “Promoting High-Value Agriculture through Public–Private Subregional Partnerships.” The objective of the conference will be to find ways of leveraging on global cross-border investment trends by taking advantage of technological advances in agricultural production and to ensure sustainable and high-value supply against rising costs of energy and fertilizer and climate change effects. This conference will bring together the key stakeholders in the subregion to share experiences and expertise on innovations and good practices for achieving sustainable and high-value supply, including food safety.

Narathiwat Province, Thailand, aims to build the center/market for agricultural produce and products, including OTOP, manufacturing goods, and BIO-diesel station service. It is expected that the Narathiwat Agricultural Market will facilitate trade in agricultural goods and services between Thailand and Malaysia.

In the fisheries sector, an IMT-GT fisheries conference and partnership arrangement is also being planned to disseminate business opportunities in agriculture and agro-industry, through seminars, expositions, and workshops (i.e., the IMT-GT Expo and Seminar for Fisheries), held alternately in Indonesia, Malaysia, and Thailand. The event will involve exchanging data and information with regard to an identified theme (e.g., ornamental fish). Apart from knowledge exchange and discussion, the forum serves as a platform for identifying concrete partnership arrangements and future actions.

Halal Products and Services

Halal products and services are significant for the IMT-GT subregion because of its large Muslim population, and its share to the global trade in Halal agri-food products estimated at about 12%. The global Halal market offers significant opportunities: global Halal production (supply) is estimated at $700 billion while consumption (demand) is estimated at $2.3 trillion, increasing by 12% annually.7 The Halal market is not limited to food items alone; it encompasses

7 Source: World Halal Forum 2010.


a wide range of products and services from pharmaceuticals, cosmetics, health care, finance and other non-consumables. It also includes services, such as logistics, packaging, branding, marketing, print and electronic media, and travel and tourism. Global trade in Halal products and services can generate further growth opportunities, as greater awareness and availability of Halal alternatives are promoted.

On account of increasing demand for Halal foods, companies throughout the world are seeking authentic Halal certification to gain consumer confidence and expand their existing markets. In response to this global demand, the IMT-GT countries have recognized the need to develop internationally accepted Halal standards in production, marketing, and logistics, including production and transport facilities for these products. Malaysia has been in the forefront in terms of developing standards for Halal products and is relatively advanced in harmonizing its certification process; while Thailand has been in the forefront in terms of Halal science and technology, as well as its innovation of najis cleansing clay in accordance with shariah compliance with HAL-Q system for safety Halal. Thailand has also initiated steps toward this end with the establishment of the Institute of Halal Standards of Thailand. Indonesia, with its huge Muslim population, has also taken steps to implement a certification system consistent with international standards in Halal products supported by Halal science.

In order to boost the potential of the Halal industry within the IMT-GT, three strategic components will be addressed under the IB, namely: (i) Halal integrity, (ii) industry development, and (iii) branding and promotions. Halal integrity focuses on the development of regulatory processes and comprehensive standards, efficient Halal certification processes, Halal research, and Halal training. Industry development focuses on enhancing Halal production by developing Halal SMEs, encouraging foreign investment, and innovation, and extending the reach of SME’s through the Halal trade network and coordination of the development of systemic Halal parks. Branding and promotions would address the promotion of the IMT-GT Halal brand, and the concept of Halal.

Development of Standards and Certification for Halal Integrity

The concept of the Integrated Halal Superhighway was initiated in 2008 with the aim of developing linkages along the Halal value chain involving the IMT-GT subregion. One of the principal goals is to standardize Halal certification for all IMT-GT member countries, thereby uniting them in competing with other suppliers of Halal food. The MOU on the Development of Halal Logistics and Information and Communication Technology (ICT) Halal Superhighway was signed during the World Halal Science and Industry Business International Conference (WHASIB 2010) in Phuket in June 2010 between the Halal Science Center, Chulalongkorn University (HSC-CU), and 10 organizations in seven countries.8 HSC-CU is building a training center for the IMT-GT Host System at Chulalongkorn University to help current and prospective MOU signatories to comply with its provisions, and to help firms in digitizing information on the sources of raw materials in a form that could be accessed by all users.

8 These include Penang International Halal Hub of Malaysia, ADempiere Asia, Indonesian Forwarders and Logistics Service Providers Association of Indonesia, South Africa National Halal Authority (SANHA), European Institute of Halal Certification (EHZ) of Germany, the Mediterranean Halal Science Research Centre of Turkey, and the Department of Science and Technology of the Philippines.


Development of Halal Industry

A number of Halal parks will be constructed in Malaysia to add value to the regional agriculture output by leveraging on Malaysia’s developed and globally respected Halal framework. The Pasir Mas Halal Park in Kelantan is envisaged to develop local and regional Halal entrepreneurs in processing, manufacturing, and trade/distribution for the regional and global market. The park will be developed as a commercially driven resource-based park for processing, collection, and distribution of high value food products; and will be positioned as a Halal industry business park of choice in the region. The Perlis Halal Park will also host facilities and laboratories for a variety of services for Halal entrepreneurs. These include: (i) identifying means and methods for developing Halal products and services; (ii) creating awareness on the importance of the government’s Halal certification in order to improve product marketability; (iii) assisting entrepreneurs in improving product quality and introducing and promoting potential products to the domestic and international markets; (iv) creating and maintaining a database of qualified entrepreneurs based on product competitiveness and export capability; and (v) developing more entrepreneurs in the production and marketing of high-demand Halal products, such as food, beauty, pharmaceuticals, herbal-prepared products, etc.

The Tok Bali Fisheries Integrated Park in Kelantan will be developed as a commercially driven integrated complex for processing, collection, and distribution of high-value-fish-based products; and will be positioned as a regional fisheries hub promoting downstream high-value industries. It is envisaged that the project will accelerate growth of local and regional entrepreneurs in processing, manufacturing, and trade/distribution of fish-based products for the regional and global Halal market.

Human Resources Development

In the context of the IMT-GT Roadmap for Development 2007–2011, human resources development (HRD) is generally associated with the need to develop the competitiveness of the workforce, and enhance their mobility, together with measures to improve the efficiency of labor markets within the subregion. The measures needed to support these thrusts include: (i) training in skills competencies required in IMT-GT priority sectors; (ii) adoption of mutual recognition arrangement and accreditation programs in line with agreements under the ASEAN framework of cooperation; (iii) facilitation of the entry of foreign workers and professionals among the IMT-GT subregions, including easing of travel requirements such as visa and permit requirements; and (iv) promotion of cooperative HRD programs among educational and training institutions in the IMT-GT subregion.

The roadmap lists three flagship programs under the strategic thrust on cross-cutting concerns. For HRD and labor mobility, there are three flagship projects, namely: (i) accreditation and training programs, focusing basically on business support organizations; (ii) Adoption of Mutual Recognition Agreement (MRA) which is being pursued on a case-by-case basis under the ASEAN framework; and (iii) promotion of the UNINET (University Network). However, the number of HRD projects implemented is relatively few. With regard to the MRA framework, the Joint Business Council (JBC) has identified five priority sectors for piloting the harmonization of competency standards; these sectors are shipping, tourism, nursing, construction, and health. Planned guidelines for harmonizing competency


standards in these sectors have not materialized. On the supply side, the UNINET has been established to strengthen networking among institutions of higher learning that will provide training and conduct studies supportive of human resources development and labor mobility.

The slow progress in the various HRD projects stems largely from the fact that many of the policy issues, like labor mobility and university accreditation, are outside the mandate of subregional bodies and are basically driven by national policies. This is especially the case for the adoption of the MRA and the facilitation of entry of foreign workers and professionals through the easing of travel requirements, which are more within the framework of ASEAN cooperation. Given these constraints, IMT-GT cooperation in HRD will thus focus mainly on the enhancement of the quality of human resources in the subregion through capacity building programs.

Enhancement of the Quality of Human Resources in the Subregion through Capacity Building Programs

For the IB 2012–2016, the Thailand International Development Cooperation Agency (TICA), Ministry of Foreign Affairs and the Ministry of Labor, have offered to provide the following capacity building programs: (i) International Seminar on Women Participation in the Labor Market, (ii) Workshop on the Effectiveness and Efficiency of Technical and Vocational Training, and (iii) Workshop on Project Method in Vocational Training. TICA will also sponsor a workshop on management and skills development in tourism. Prince Songkhla University, in partnership with two other universities in Malaysia and Indonesia, will sponsor a training and workshop for IMT-GT executives/mid-management.

Details of the projects in the IB are in Appendix 1 and the list of projects and activities in the initial 2-year rolling pipeline is in Appendix 2.

27

Operational Mechanism

The operationalisation of the Implementation Blueprint (IB) 2012–2016 will require closer cooperation and coordination among all the IMT-GT institutions concerned. The focus on implementation will require greater clarity and differentiation of roles in both the conceptualization and implementation phases of a project, and among the various tiers in the IMT-GT institutional mechanism. The following section defines the roles and responsibilities of the different IMT-GT bodies in the overall implementation of the IB.

The IMT-GT Leaders’ Summit is the highest decision-making body which sets major goals and principal direction for cooperation in IMT-GT. The Summit is held once a year. Leaders of the IMT-GT states and provinces will also be involved in the Summit process to emphasize the political support for the IMT-GT process.

The IMT-GT Ministerial Meeting (MM) is the body of designated IMT-GT Ministers responsible for overseeing the overall implementation of the IB in terms of the timely and effective delivery of project outputs and their impact on IMT-GT goals. As the highest policy-making body below the Leaders’ Summit, the MM deliberates on policy issues that need to be elevated to the Leaders’ attention. The MM meets at least once a year, and may combine a formal and retreat format during this meeting. The retreat format provides platform for open and frank discussions among the ministers on certain themes or issues. With the IB’s focus on implementation, line agency ministers may be invited to attend the MM based on specific agenda items tabled at the meeting.

In the performance of its functions, the MM will be supported by the Senior Officials’ Meeting (SOM) which is the body responsible for coordinating the overall implementation of the IB at the regional level. The SOM is composed of the designated IMT-GT senior official from each country. Individual senior officials have the responsibility to coordinate the implementation of the IB at the national level. More specifically, the tasks of the senior officials are to

provide guidance on issues raised by the sectoral working groups, and bring to the attention of the MM any policy or implementation issues requiring action from higher authorities;

monitor, evaluate, and review on a regular basis, or as appropriate, the implementation of strategies, actions, and projects of the IMT-GT;

engage with the relevant line ministries to ensure the effective implementation of the IMT-GT projects and initiatives;


identify issues and challenges from the implementation of IMT-GT initiatives and make appropriate recommendations to the IMT-GT Summit through the MM;

engage with IMT-GT governors, development partners, the Joint Business Council (JBC), and other relevant stakeholders to promote the implementation of the IMT-GT initiatives and mobilize possible sources of funding; and

lead and oversee outreach activities and consultation with stakeholders to raise awareness on IMT-GT cooperation.

The National Secretariat (NS) of each member country is responsible for the overall operationalization of the IB as the national focal point for the coordination of IB project-level implementation. More specifically, the NS performs the following tasks: (i) ensure that the subregional programs are reflected in, and complement, the national development plans; (ii) review project proposals and ideas together with relevant national working group (WG) focal points; and (iii) provide inputs to the senior officials at the national level. The NS is also responsible for regularly reporting the outcomes and issues of the IMT-GT cooperation to the national-level mechanism established for this purpose. Representatives of local governments, the private sector, and other IMT-GT stakeholders are part of this national mechanism.

The six IMT-GT sectoral WGs will be in the frontline of operationalizing the IMT-GT strategic thrusts. The WGs develop the sector strategies in support of the overall thrusts of IMT-GT, and identify the key programs and projects that would translate these strategies into action and results. The WGs, with its membership comprising relevant stakeholders of the project, including provincial and state authorities as well as private sector representatives, will be responsible for the deliverables under their respective sectors. They play a key role in all stages of the project cycle by determining the fit between the projects and sectoral strategies and filtering the projects for implementation based on physical and financial preparedness. The terms of reference of the WGs will be developed in 2012.

The private sector has been the key driver of the subregional cooperation activities in IMT-GT, with the public sector providing the enabling policy and regulatory environment and necessary infrastructure support. Private sector participation in all levels of the IMT-GT institutional structure is vital. In this regard, the IMT-GT JBC plays a key role and its functions are to

represent and serve as the official voice of the private sector in the IMT-GT program;

foster closer relationships among business and business organizations in the IMT-GT subregion;

advocate policies, programs, projects, and implementing rules and guidelines supportive of increasing private sector participation in the development of the subregion; and

initiate the identification of IMT-GT commercial projects and participate in the identification of key IMT-GT infrastructure requirements.

The JBC is also the link with the private sector bodies outside the subregion, such as the ASEAN Chamber of Commerce and Industry, BIMP-EAGA Business Council, and the APEC Business Advisory Council.

Operational Mechanism 29

The overall operational mechanism for implementing the IB is supported by the Centre for IMT-GT Subregional Cooperation (CIMT), as the regional secretariat of the IMT-GT program. The main functions of the CIMT are to (i) strengthen the coordination mechanism and consultation process among IMT-GT institutions in the subregion as well as to provide the institutional framework to support public and private sector activities; (ii) improve facilitation and implementation of priority projects as well as the monitoring and evaluation of projects and agreements; (iii) establish and enhance external relations with potential investors and donors; and (iv) develop useful databases of IMT-GT activities and enhance information dissemination within and outside the subregion.

30

Results-Based Monitoring

The rolling pipeline of IMT-GT projects and activities (Appendix 2) will be updated annually while the Implementation Blueprint (IB) 2012–2016 will undergo a mid-term review in 2014. To ensure that a comprehensive review of both quantitative and qualitative measurement is made on the IB, the projects in the IB will be monitored based on a results framework that will indicate substantive outcomes and development impacts. The results framework will be the basis for monitoring both the progress of implementation and the delivery of outputs as specified in the operational plan. The results framework will consist of three levels:

(i) Level 1 consists of development goals which IMT-GT supports or complements; these goals are reflected in the IB.

(ii) Level 2 consists of outputs delivered through cooperation in the programs and projects that support the three strategic pillars which can also indicate the extent of contribution to broad sector outcomes.

(iii) Level 3 consists of indicators that measure program performance and organizational effectiveness in terms of, but not limited to, the progress of the projects as they move through the various stages of the project cycle; application of the results framework; timeliness in meeting milestones or target outputs; financial resources mobilized; and improvements in business processes.

Adopting a results framework for the for IB will evolve over time; and the working groups (WGs), national secretariats and the Centre for IMT-GT Subregional Cooperation (CIMT) will need to agree on both the baseline measures, as well as the set of indicators at each level. Some flexibility will therefore be required in the application and use of these indicators. The IMT-GT Trade, Investment and Tourism Database (ITITD) project, initiated by the Asian Development Bank (ADB) and CIMT in 2008, will provide some of the parameters for the indicator system. The database of trade, investment, and tourism statistics at both the national and provincial/state levels would allow an analysis of growth patterns and trends in the subregion over time. The 1st Phase, which has been completed, involved the construction of baseline data focusing on information and statistics available from published sources. The 2nd Phase, which is ongoing, focuses on customized provincial and state data. A study to assess the impact of IMT-GT cooperation using these data is being planned; it will also recommend data and information requirements for conducting more comprehensive impact assessments.

The overall responsibility for adopting and managing the results framework resides in the IMT-GT Ministers, working through their senior officials and WGs. At the operational level,

Results-Based Monitoring 31

the responsibility for developing the results framework will reside in the WGs and the CIMT. To the fullest extent possible, the participating states and provinces should be consulted and involved in generating pertinent data to be used in the results framework.

Since the indicators for the results framework will need some time to develop, it is expected that at least for the first year of the IB, monitoring will continue to focus only on the status of project implementation and the delivery of outputs. A simple output-based indicator system will be in place for each project in the rolling pipeline that will commence implementation in 2012.

32

Concluding Remarks

The IMT-GT Implementation Blueprint (IB) 2012–2016 is a concrete manifestation of the countries’ resolve to an action-oriented and results-based path in the next five years. The strategic investment projects in the IB, complemented by software initiatives, will significantly improve connectivity in the subregion, thus allowing member countries to take full advantage of the benefits of integration with the realization of the ASEAN Economic Community.

The IB has set the framework for a more disciplined process of project planning and implementation and monitoring. Projects with well-defined concepts and implementation plans have been selected for inclusion in the IB in order to ensure that they can be carried out effectively and with the desired outcomes, as well as impacts on both national as well as subregional objectives. Toward this end, the IB has incorporated a results-based framework to capture the delivery of outputs, outcomes, and impacts. While this new system of monitoring will undoubtedly pose a challenge to the program, it will also compel quality of project delivery, and greater accountability on the part of the implementer.

The successful implementation of the IB requires a stronger, more focused institutional mechanism. The operational mechanisms have been defined with greater clarity to specify the accountability of officials responsible for the various bodies, including the chairs of working groups, the national secretariats, and the Centre for IMT-GT Subregional Cooepration. The involvement of line ministries will be crucial in delivering results. The national secretariats, in particular, will need to assume a greater role in appraising projects in relation to the IB guidelines; advising on project conceptualization; and managing the process of monitoring outputs, outcomes, and impacts based on the results framework. The Asian Development Bank (ADB) will assist in this process.

As the IB is a living document, it is expected to evolve and adapt to key changes in the subregion in the course of its 5-year implementation period. New projects that are critical to attaining the objectives in the six sectors, as well as adjustments in the timing and sequencing of the projects, could be reflected in the course of IB implementation, as long as they are consistent with the IB guidelines. An annual update of the rolling pipeline will be the mechanism for accommodating changes at the level of programs and projects.

Appendixes

34 Appendixes

Go

als/

Ob

ject

ives

and

Str

ateg

ies

Pro

ject

s/A

ctiv

ities

Fla

gsh

ip P

rog

ram

1: F

ive

Co

nnec

tivity

Co

rrid

ors

Fla

gsh

ip P

rog

ram

1a:

Ext

end

ed S

ong

khla

–Pen

ang

–Med

an C

orr

ido

r (N

akho

n S

i Tha

mm

arat

–Pha

ttha

lung

–So

ngkh

la–Y

ala–

Pat

tani

– P

enan

g–M

edan

)

1H

at Y

ai–S

adao

Inte

rcity

Mo

torw

ay

The

road

fro

m t

he b

orde

r of

Tha

iland

at

Sad

ao a

nd M

alay

sia

goin

g to

war

d H

at Y

ai i

s in

poo

r co

nditi

on a

nd h

eavi

ly c

onge

sted

. Th

e ro

ad

pass

es t

hrou

gh s

ever

al s

mal

l vi

llage

s, a

nd d

ue t

o th

e la

rge

volu

me

of

traf

fic,

serio

us r

oad

acci

dent

s oc

cur

to b

oth

pede

stria

ns a

nd v

ehic

les.

Th

e In

terc

ity M

otor

way

to b

e bu

ilt b

etw

een

Sad

ao a

nd H

at Y

ai p

aral

lel t

o th

e ex

istin

g ro

ad w

ill di

vert

traf

fic a

way

from

the

rura

l villa

ges

and

enha

nce

a hi

gher

leve

l of s

ervi

ce a

nd s

afet

y to

the

high

way

use

r.

(i)

New

Sad

ao C

usto

ms,

Imm

igra

tion,

and

Qua

rant

ine

(CIQ

) Com

plex

D

evel

opm

ent (

refe

r to

pro

ject

23-

ii fo

r m

ore

deta

ils).

The

Hat

Yai

–Sad

ao In

terc

ity M

otor

way

will

conn

ect T

haila

nd a

nd M

alay

sia

thro

ugh

Sad

ao (

Jung

Loa

nd)

and

Pad

ang

Bes

ar C

usto

ms

hous

e. T

he

proj

ect w

ill in

clud

e a

re-a

sses

smen

t of t

he fe

asib

ility

stud

y co

nduc

ted

abou

t 10

yea

rs a

go,

give

n a

muc

h hi

gher

tra

ffic

volu

me

via

Sad

ao a

nd P

adan

g B

esar

CIQ

, as

wel

l as

new

eco

nom

ic d

evel

opm

ents

aro

und

the

proj

ect

area

, nam

ely,

the

expa

nsio

n an

d re

habi

litat

ion

of S

adao

–Buk

it K

ayu

Hita

m,

alon

g th

e sh

ared

bor

der b

etw

een

Thai

land

and

Mal

aysi

a, a

nd d

evel

opm

ent

of th

e S

adao

–Buk

it K

ayu

Hita

m S

peci

al E

cono

mic

Zon

e.

The

proj

ect c

ompo

nent

s, a

nd th

eir

resp

ectiv

e tim

elin

es, a

re a

s fo

llow

s:(i)

Fe

asib

ility

Stu

dy

(201

2–20

13):

The

feas

ibilit

y st

udy

on t

he e

cono

mic

an

d en

gine

erin

g as

pect

s of

th

e pr

ojec

t w

ill be

co

nduc

ted.

A

n E

nviro

nmen

tal I

mpa

ct A

sses

smen

t or E

IA, t

o be

issu

ed b

y th

e M

inis

try

of S

cien

ce, T

echn

olog

y an

d E

nviro

nmen

t an

d su

bmitt

ed t

o th

e O

ffice

of

Env

ironm

enta

l Pol

icy

and

Pla

nnin

g, w

ill al

so b

e re

quire

d.

(ii)

Det

aile

d

Des

ign

(201

3–20

14):

The

deta

iled

desi

gn

(D/D

) w

ill be

co

nduc

ted

to

prov

ide

a cl

ear

pict

ure

of

the

right

s–of

-way

, co

st

estim

ates

, and

env

ironm

enta

l miti

gatio

n an

d m

anag

emen

t m

easu

res,

am

ong

othe

rs. P

ublic

con

sulta

tions

will

be u

nder

take

n. A

revi

ew o

f the

fe

asib

ility

stud

y w

ill co

mm

ence

in 2

012

at a

cos

t of 2

0 m

illion

bah

t. (ii

i) In

vest

men

t Op

tions

(201

4): T

he o

ptio

ns fo

r priv

ate

sect

or p

artic

ipat

ion

in t

he p

roje

ct,

eith

er t

hrou

gh a

con

cess

ion

or a

pub

lic–p

rivat

e se

ctor

jo

int v

entu

re, w

ill be

con

side

red

to re

duce

gov

ernm

ent o

utla

ys.

(iv) L

and

A

cqui

sitio

n (2

014)

: La

nd

acqu

isiti

on

will

com

men

ce

in

acco

rdan

ce w

ith th

e A

sset

Exp

ropr

iatio

n A

ct, B

.E. 2

530.

(v

) C

onst

ruct

ion

(201

5–20

17):

Con

stru

ctio

n is

targ

eted

to b

egin

in 2

015

for

a du

ratio

n of

thre

e ye

ars

up to

201

7.

(vi)

Op

erat

ions

(2

018)

: U

nder

pass

an

d ov

erpa

ss

faci

litie

s w

ill be

co

nstr

ucte

d in

are

as w

here

loca

l tra

ffic

rout

e cu

ts th

roug

h co

mm

uniti

es.

The

exec

utin

g ag

ency

will

be t

he D

epar

tmen

t of

Hig

hway

s, M

inis

try

of

Tran

spor

t, Th

aila

nd.

cont

inue

d on

nex

t pag

e

Ap

pen

dix

1.

Pro

ject

s in

the

IMT-

GT

Imp

lem

enta

tion

Blu

epri

nt 2

012–

2016

Appendixes 35

Go

als/

Ob

ject

ives

and

Str

ateg

ies

Pro

ject

s/A

ctiv

ities

Fla

gsh

ip P

rog

ram

1: F

ive

Co

nnec

tivity

Co

rrid

ors

Fla

gsh

ip P

rog

ram

1a:

Ext

end

ed S

ong

khla

–Pen

ang

–Med

an C

orr

ido

r (N

akho

n S

i Tha

mm

arat

–Pha

ttha

lung

–So

ngkh

la–Y

ala–

Pat

tani

– P

enan

g–M

edan

)

2N

atha

wi B

an P

rako

b–D

uria

n B

urun

g

(i)

Nat

haw

i–B

an P

rako

b/D

uria

n B

uro

ng R

oad

Pro

ject

This

pro

ject

will

upgr

ade

the

road

sec

tions

in T

haila

nd to

enh

ance

tr

ansp

ort c

onne

ctiv

ity b

etw

een

Thai

land

and

Mal

aysi

a.(T

his

proj

ect a

lso

incl

udes

Ban

Pra

kob

CIQ

Com

plex

Dev

elop

men

t, se

e de

tails

in p

roje

ct 2

3-i)

(ii)

Dur

ian

Bur

ung

–Ped

u–G

ubir

–Kup

ang

The

Tran

s-E

aste

rn K

edah

Inte

rland

Hig

hway

(TE

KIH

) Pro

ject

from

Dur

ian

Bur

ung

to K

upan

g, B

alin

g ai

ms

to e

nhan

ce t

he r

oad

netw

ork

in K

edah

S

tate

par

ticul

arly

in c

onne

ctin

g to

the

Nor

th a

nd S

outh

are

as. T

he p

roje

ct

will

impr

ove

acce

ssib

ility

and

serv

e as

the

cata

lyst

for t

he d

evel

opm

ent o

f K

edah

Eas

tern

Dis

tric

t (c

over

ing

Pad

ang

Tera

p, S

ik,

and

Bal

ing)

, an

d to

be

bal

ance

d w

ith m

ore

deve

lope

d di

stric

ts in

the

Wes

t.

(iii)

Alo

r S

etar

–Kua

la N

eran

g–D

uria

n B

urun

g

The

exis

ting

road

con

nect

ing

Alo

r S

etar

–Kua

la N

eran

g–D

uria

n B

urun

g,

Ked

ah h

as b

een

incr

easi

ngly

bus

y. A

lor

Set

ar is

the

capi

tal o

f Ked

ah a

nd

Dur

ian

Bur

ung

is th

e ga

tew

ay to

Tha

iland

. Alo

r Set

ar is

furt

her c

onne

cted

by

road

, air,

and

rail

to o

ther

sta

tes

in n

orth

ern

Mal

aysi

a an

d is

the

hub

in

Ked

ah f

or b

usin

ess.

The

roa

d tr

ansp

ort

proj

ect

links

Sou

ther

n Th

aila

nd

and

the

Nor

ther

n P

enin

sula

r M

alay

sia.

The

obj

ectiv

e of

the

pro

ject

is t

o im

prov

e th

e ex

istin

g fe

dera

l roa

d to

R5

stan

dard

.

Loca

ted

at t

he b

orde

r of

Tha

iland

and

Mal

aysi

a, t

he p

roje

ct c

onsi

sts

of

cons

truc

ting

the

CIQ

faci

litie

s an

d en

gine

erin

g D

/D o

f the

sec

ond

phas

e in

Ban

Pra

kob,

Nat

haw

i in

Thai

land

, in

clud

ing

impr

ovem

ent

of t

he r

oad

sect

ion

from

Nat

haw

i–B

an P

rako

b; a

nd, o

n th

e M

alay

sian

sid

e, im

prov

ing

conn

ectiv

ity t

o th

e Th

ai g

atew

ay i

n D

uria

n B

urun

g th

roug

h th

e Tr

ans–

Eas

tern

Ked

ah In

terla

nd H

ighw

ay P

roje

ct (T

EK

IH) a

s w

ell a

s th

e up

grad

ing

of th

e D

uria

n B

urun

g–A

lor

Set

ar ro

ad n

etw

ork.

(i)

Nat

haw

i–B

an P

rako

b/D

uria

n B

uro

ng R

oad

Pro

ject

The

Nat

haw

i–B

an P

rako

b ro

ad p

roje

ct c

over

s 34

kilo

met

ers

(km

), of

w

hich

4 k

m a

re fo

r up

grad

ing

into

a 2

-lane

Cla

ss I

stan

dard

, and

30

km

for

upgr

adin

g in

to a

4-la

ne C

lass

I s

tand

ard.

A 3

0-ki

lom

eter

sec

tion

is

unde

r co

nstr

uctio

n, w

hile

the

rest

is to

be

com

plet

ed w

ithin

201

2.

(ii)

Dur

ian

Bur

ung

–Ped

u–G

ubir

–Kup

ang

The

proj

ect w

ill up

grad

e th

e ex

istin

g ro

ad to

R5

stan

dard

and

bui

ld a

new

R

5 si

ngle

car

riage

-way

, lin

king

Dur

ian

Bur

ung,

Ped

u, G

ubir,

and

Kup

ang.

O

n th

e M

alay

sian

sid

e, th

e up

grad

ing

of T

EK

IH w

ill co

nnec

t the

gat

eway

to

Tha

iland

in D

uria

n B

urun

g w

ith th

e E

ast–

Wes

t Hig

hway

(PLU

S) t

hrou

gh

Bal

ing,

Ked

ah.

The

conn

ectio

n w

ill cu

t tr

avel

tim

e fro

m B

alin

g to

Dur

ian

Bur

ung

from

2 h

ours

and

15

min

utes

to 1

hou

r and

30

min

utes

; mor

eove

r, it

will

enha

nce

the

road

net

wor

k in

the

Sta

te o

f Ked

ah a

nd h

elp

cata

lyze

th

e de

velo

pmen

t of

the

Sta

te’s

Eas

tern

Dis

tric

t co

verin

g P

adan

g Te

rap,

S

ik,

and

Bal

ing

to b

alan

ce t

he m

ore

adva

nced

dev

elop

men

ts i

n th

e W

este

rn D

istr

ict.

Exe

cutin

g ag

ency

is

the

Pub

lic W

orks

Dep

artm

ent

of

Mal

aysi

a. T

he p

roje

ct is

wel

l adv

ance

d an

d is

sch

edul

ed to

be

com

plet

ed

in 2

013–

2014

.

(iii)

Alo

r S

etar

–Kua

la N

eran

g–D

uria

n B

urun

g

The

proj

ect

will

upgr

ade

and

impr

ove

the

exis

ting

fede

ral

road

to

R5

stan

dard

, 2-

way

sin

gle

carr

iage

-way

(2-la

ne) f

or a

leng

th o

f 33

km

, an

d 2-

way

dou

ble

carr

iage

-way

(4-la

ne) f

or a

leng

th o

f 15

km. T

he e

xecu

ting

agen

cy i

s th

e P

ublic

Wor

ks D

epar

tmen

t of

Mal

aysi

a. T

he p

roje

ct i

s sc

hedu

led

to b

e co

mpl

eted

in 2

012.

App

endi

x 1

cont

inue

d

36 Appendixes

Go

als/

Ob

ject

ives

and

Str

ateg

ies

Pro

ject

s/A

ctiv

ities

Fla

gsh

ip P

rog

ram

1: F

ive

Co

nnec

tivity

Co

rrid

ors

Fla

gsh

ip P

rog

ram

1a:

Ext

end

ed S

ong

khla

–Pen

ang

–Med

an C

orr

ido

r (N

akho

n S

i Tha

mm

arat

–Pha

ttha

lung

–So

ngkh

la–Y

ala–

Pat

tani

– P

enan

g–M

edan

)

3S

out

hern

Reg

ion

Car

go

Dis

trib

utio

n C

ente

r at

Thu

ngso

ng

Sin

ce s

ever

al m

arin

e an

d la

nd r

oute

s ca

n m

eet

at T

hung

song

Dis

tric

t, N

akho

n S

i Tha

mm

arat

Pro

vinc

e, it

is s

trat

egic

ally

reg

arde

d as

a c

ente

r of

dom

estic

and

inte

rnat

iona

l tra

nspo

rtat

ion.

Thu

ngso

ng is

con

nect

ed to

se

vera

l rou

tes,

i.e.

, Asi

a R

oad

No.

41

and

the

railw

ay ju

nctio

n. W

hole

sale

an

d re

tail

cent

ers

(Nak

hon

Si T

ham

mar

at, T

rang

, Sur

at T

hani

, Kra

bi, a

nd

Pha

ttha

lung

) als

o en

hanc

e th

e at

trac

tiven

ess

of T

hung

song

Dis

tric

t. A

ll of

th

em c

onst

itute

the

larg

est i

ndus

tria

l hub

in T

haila

nd’s

sou

ther

n re

gion

. It

is h

ome

to v

ario

us in

dust

ries,

i.e.

, ce

men

t, or

es a

nd m

iner

als,

and

oth

er

rela

ted

indu

strie

s.

The

cons

truct

ion

of

the

carg

o di

strib

utio

n at

Th

ungs

ong

is

aim

ed

at

redu

cing

log

istic

s an

d fre

ight

cos

t re

sulti

ng f

rom

ris

ing

fuel

pric

es.

The

CD

C i

n Th

ungs

ong

will

enab

le a

n in

tegr

atio

n of

rai

lway

and

int

erna

tiona

l m

arin

e ro

utes

, and

enh

ance

the

over

all t

rade

com

petit

iven

ess

in th

e IM

T-G

T su

breg

ion.

The

pro

ject

is p

art o

f the

stra

tegi

c de

velo

pmen

t pla

n of

Nak

hon

Si

Tham

mar

at a

nd th

e G

ulf o

f Tha

iland

for t

he S

outh

ern

prov

ince

s (C

hum

porn

, S

urat

Tha

ni,

Nak

hon

Si T

ham

mar

at,

and

Pha

tthal

ung)

. It

is a

lso

cons

iste

nt

with

the

11th

Nat

iona

l Eco

nom

ic a

nd S

ocia

l Dev

elop

men

t Pla

n of

Tha

iland

.

The

proj

ect

will

invo

lve

the

cons

truc

tion

of a

car

go d

istr

ibut

ion

cent

er

(CD

C)

at T

hung

song

, N

akho

n S

i Tha

mm

arat

Dis

tric

t to

ser

ve a

s a

hub

in

Sou

ther

n Th

aila

nd,

conn

ectin

g do

mes

tical

ly

via

mul

timod

al

links

to

Kan

tang

sea

port

in

Tran

g P

rovi

nce.

The

pro

ject

will

leve

rage

on

Thun

gson

g’s

cent

ral l

ocat

ion

in S

outh

ern

Thai

land

and

the

cur

rent

hig

h vo

lum

e of

tra

ded

good

s (c

emen

t, or

es,

min

eral

s, i

ndus

tria

l pr

oduc

ts)

pass

ing

thro

ugh

Nak

hon

Si T

ham

mar

at,

Tran

g, S

urat

Tha

ni,

Kra

bi,

and

Pha

ttha

lung

; and

con

nect

ing

with

the

rest

of t

he s

ubre

gion

via

mul

timod

al

links

. Inc

lude

d in

the

proj

ect i

s a

road

link

to H

ighw

ay N

o. 4

1 an

d N

o. 4

03

whi

ch w

ill be

con

stru

cted

in 2

011–

2012

, an

d a

rail

link

from

the

CD

C t

o th

e m

ain

railw

ay (

2012

–201

3).

Det

aile

d de

sign

for

ove

rall

cons

truc

tion

will

be c

ondu

cted

dur

ing

2012

–201

3 w

ith f

ull

oper

atio

n of

the

CD

C

targ

eted

for

2016

. The

pro

ject

will

be u

pgra

ded

to p

rom

ote

inte

rnat

iona

l co

nnec

tivity

this

yea

r.Th

e pr

ojec

t’s s

cope

incl

udes

:(i)

a

prel

imin

ary

stud

y of

pro

ject

pot

entia

l (co

mpl

eted

in 2

009)

; (ii

) co

nduc

t of

a f

easi

bilit

y st

udy

and

envi

ronm

enta

l im

pact

ass

essm

ent

(com

plet

ed in

201

0);

(iii)

deta

iled

desi

gn fo

r co

nstr

uctio

n w

ork;

and

(iv

) ph

ysic

al c

onst

ruct

ion

of C

DC

at T

hung

song

:ra

ilway

con

stru

ctio

n th

at l

inks

to

CD

C a

t Th

ungs

ong,

and

roa

d co

nstr

uctio

n th

at li

nks

to A

sia

Roa

d N

o. 4

1 an

d N

o. 4

03; a

nd

CD

C m

anag

emen

t to

be

done

by

com

pani

es g

over

ned

by l

ocal

go

vern

men

t adm

inis

trat

ion

unit.

cont

inue

d on

nex

t pag

e

App

endi

x 1

cont

inue

d

Appendixes 37

Go

als/

Ob

ject

ives

and

Str

ateg

ies

Pro

ject

s/A

ctiv

ities

Fla

gsh

ip P

rog

ram

1: F

ive

Co

nnec

tivity

Co

rrid

ors

Fla

gsh

ip P

rog

ram

1a:

Ext

end

ed S

ong

khla

–Pen

ang

–Med

an C

orr

ido

r (N

akho

n S

i Tha

mm

arat

–Pha

ttha

lung

–So

ngkh

la–Y

ala–

Pat

tani

– P

enan

g–M

edan

)

4G

olo

k R

iver

Bri

dg

es

Thes

e tw

o br

idge

s ha

ve b

een

iden

tified

for

prio

rity

cons

truc

tion

by

both

Mal

aysi

a an

d Th

aila

nd a

s pa

rt o

f th

e pl

anne

d de

velo

pmen

t of

the

N

arat

hiw

at S

peci

al E

cono

mic

Zon

e. T

he f

easi

bilit

y st

udie

s fo

r th

ese

brid

ges

have

bee

n co

mpl

eted

, w

ith d

etai

led

desi

gn s

ched

uled

to

follo

w

in 2

012.

(i)

Takb

ai–P

eng

kala

n K

ubur

Bri

dg

e

The

purp

ose

of t

his

brid

ge i

s to

rep

lace

the

exi

stin

g fe

rry

serv

ice

by

prov

idin

g a

mor

e st

able

and

effi

cien

t m

eans

of

cros

sing

. It

will

grea

tly

incr

ease

cro

ss-b

orde

r ec

onom

ic o

ppor

tuni

ties,

and

con

trib

ute

to t

he

regi

onal

dev

elop

men

t pla

ns in

Mal

aysi

a an

d Th

aila

nd.

(ii)

Takb

ai C

IQ C

om

ple

x D

evel

op

men

t (s

ee d

etai

ls in

p

roje

ct 2

3)(ii

i) S

ung

ai G

olo

k–R

anta

u P

anja

ng B

rid

ge

The

proj

ect

will

incr

ease

the

cap

acity

of

the

exis

ting

brid

ge-c

ross

ing

at

this

loca

tion.

The

cur

rent

brid

ge is

a s

ingl

e ca

rria

ge-w

ay (2

-lane

) con

cret

e br

idge

R3

stan

dard

whi

ch c

an n

o lo

nger

acc

omm

odat

e th

e ra

pid

grow

th

and

plan

ned

deve

lopm

ents

in

the

bord

er a

reas

and

sta

tes

of t

he t

wo

coun

trie

s.

(i) T

akb

ai–P

eng

kala

n K

ubur

Bri

dg

e

The

proj

ect

will

invo

lve

the

cons

truc

tion

of a

new

brid

ge s

pann

ing

the

Gol

ok r

iver

and

the

oth

er r

equi

red

plan

ned

deve

lopm

ents

for

the

co

nstr

uctio

n of

cus

tom

s, s

ecur

ity, a

nd o

ther

faci

litie

s.

(ii)

Takb

ai C

IQ C

om

ple

x D

evel

op

men

t (s

ee d

etai

ls in

p

roje

ct 2

3)(ii

i) S

ung

ai G

olo

k–R

anta

u P

anja

ng B

rid

ge

This

will

invo

lve

the

cons

truc

tion

of t

he s

econ

d br

idge

fro

m R

anta

u P

anja

ng (K

elan

tan,

Mal

aysi

a) a

nd S

g. G

olok

Tow

n (N

arat

hiw

at, T

haila

nd).

5Ip

oh–

Med

an D

irect

Flig

ht

With

man

y lo

w c

ost

carr

iers

(LC

Cs)

inc

reas

ing

thei

r co

vera

ge o

f th

e su

breg

ion,

avi

atio

n lin

kage

s in

IMT-

GT

are

now

of

good

qua

lity

and

are

suffi

cien

t in

capa

city

to c

over

gro

wth

in d

eman

d up

to 2

016.

The

Ipoh

–Med

an d

irect

flig

ht is

env

isag

ed t

o pr

omot

e P

erak

’s p

oten

tials

in

nat

ure

and

herit

age

tour

ism

, as

wel

l as

prov

ide

resi

dent

s of

Sum

ater

a w

ith t

he o

ppor

tuni

ty t

o av

ail t

hem

selv

es o

f m

edic

al s

ervi

ces

at t

he Ip

oh

Spe

cial

ist a

nd P

anta

i Hos

pita

l. It

will

also

pro

mot

e to

uris

m in

Per

ak in

line

w

ith V

isit

Per

ak 2

012.

In r

espo

nse

to t

he L

eade

rs’

dire

ctiv

e to

fur

ther

enh

ance

air

conn

ectiv

ity

with

Sum

ater

a, th

e LC

C F

irefly

will

open

an

addi

tiona

l rou

te fl

ying

dire

ctly

fro

m M

edan

(Sum

ater

a) to

Ipoh

(Per

ak).

Age

ncie

s in

volv

ed i

n th

e pr

ojec

t ar

e Fi

refly

(an

LC

C),

Per

ak T

ouris

m

Man

agem

ent

Bhd

., D

epar

tmen

t of

Civ

il A

viat

ion,

Min

istr

y of

Tra

nspo

rt,

Mal

aysi

a To

uris

m B

oard

, an

d M

inis

try

of T

ouris

m (

MO

T).

The

MO

T ha

s gi

ven

appr

oval

for F

irefly

to o

pera

te a

sch

edul

ed fl

ight

from

Ipoh

to M

edan

th

ree

times

a w

eek

star

ting

on 2

2 N

ovem

ber

2011

.

cont

inue

d on

nex

t pag

e

App

endi

x 1

cont

inue

d

38 Appendixes

Go

als/

Ob

ject

ives

and

Str

ateg

ies

Pro

ject

s/A

ctiv

ities

Fla

gsh

ip P

rog

ram

1: F

ive

Co

nnec

tivity

Co

rrid

ors

Fla

gsh

ip P

rog

ram

1a:

Ext

end

ed S

ong

khla

–Pen

ang

–Med

an C

orr

ido

r (N

akho

n S

i Tha

mm

arat

–Pha

ttha

lung

–So

ngkh

la–Y

ala–

Pat

tani

– P

enan

g–M

edan

)

6In

teg

rate

d I

mm

igra

tion,

Cus

tom

s, Q

uara

ntin

e an

d S

ecur

ity (

ICQ

S)

Buk

it K

ayu

Hita

m

The

CIQ

Com

plex

at

Buk

it K

ayu

Hita

m in

Ked

ah S

tate

bor

ders

Sad

ao,

Pro

vinc

e of

Son

gkhl

a, T

haila

nd.

It is

one

of

the

mai

n en

try

poin

ts a

t th

e M

alay

sia–

Thai

land

bor

der a

nd is

link

ed to

maj

or c

ities

, por

ts, a

nd a

irpor

ts

in M

alay

sia

and

Thai

land

suc

h as

Alo

r S

etar

(48

km),

Pen

ang

(143

km

), an

d H

at Y

ai (5

8 km

). Th

e de

velo

pmen

t of

the

ICQ

S C

ompl

ex w

ill cr

eate

a

mod

ern,

sec

ure,

and

effi

cien

t co

mpl

ex in

ord

er t

o re

flect

the

imag

e of

th

e m

ain

entr

y po

int,

to re

solv

e tr

affic

con

gest

ion

in th

e ar

ea, a

nd c

ater

to

long

-ter

m re

quire

men

ts.

The

exis

ting

CIQ

com

plex

, whi

ch o

ccup

ies

25.7

10 a

cres

, will

be e

xpan

ded

to 7

3.81

5 ac

res

com

plex

to

reso

lve

traf

fic c

onge

stio

n an

d ca

ter

to lo

ng-

term

requ

irem

ents

. The

pro

ject

spo

nsor

, Nor

ther

n G

atew

ay In

frast

ruct

ure

Sdn

. B

hd.,

star

ted

cons

truc

tion

in 2

011

and

expe

cts

to c

ompl

ete

the

proj

ect i

n 20

15.

7In

land

Co

ntai

ner

Dep

ot

at P

adan

g B

esar

The

Inla

nd C

onta

iner

Dep

ot (I

CD

) at P

adan

g B

esar

is s

trat

egic

ally

loca

ted

at t

he M

alay

sia–

Thai

land

int

erna

tiona

l bo

rder

; an

d it

links

dire

ctly

to

Pen

ang

Por

t vi

a th

e Ip

oh–P

adan

g B

esar

dou

ble

trac

k ra

il lin

k. T

rade

d vo

lum

e pa

ssin

g th

roug

h P

adan

g B

esar

con

stitu

tes

31.2

% o

f tot

al e

xpor

ts

from

Sou

ther

n Th

aila

nd. M

ajor

inbo

und

com

mod

ities

tran

spor

ted

thro

ugh

rail

are

rubb

er (

82%

), au

to p

arts

, el

ectr

onic

pro

duct

s, a

nd p

eris

habl

es.

Out

boun

d co

mm

oditi

es in

clud

e su

gar,

elec

tron

ics,

and

bui

ldin

g m

ater

ials

.

With

th

e pr

ojec

t, po

tent

ial

for

outb

ound

co

mm

odity

tr

affic

ca

n be

in

crea

sed

thro

ugh

unin

terr

upte

d ra

il co

nnec

tivity

with

in M

alay

sia,

whe

re

com

mod

ities

will

flow

fast

er a

nd s

afer

from

Pad

ang

Bes

ar to

Pen

ang

Por

t an

d ba

ck,

and

will

lead

to

the

deve

lopm

ent

of s

uita

ble

logi

stic

s-cu

m-

tran

spor

t in

frast

ruct

ure

to b

oost

tra

de t

hrou

gh t

he M

alay

sia–

Thai

land

bo

rder

.

The

ICD

pro

ject

in P

adan

g B

esar

will

cove

r an

are

a of

100

acr

es a

nd w

ill in

clud

e in

land

war

ehou

ses,

con

tain

er y

ards

, co

ntai

ners

, fre

ight

sta

tions

, bo

nded

war

ehou

ses,

adm

inis

trat

ive

build

ings

, se

curit

y fa

cilit

ies,

rai

lway

tr

acks

, and

bas

ic in

frast

ruct

ure.

The

exe

cutin

g ag

ency

is th

e P

erlis

Sta

te

Gov

ernm

ent.

cont

inue

d on

nex

t pag

e

App

endi

x 1

cont

inue

d

Appendixes 39

Go

als/

Ob

ject

ives

and

Str

ateg

ies

Pro

ject

s/A

ctiv

ities

Fla

gsh

ip P

rog

ram

1: F

ive

Co

nnec

tivity

Co

rrid

ors

Fla

gsh

ip P

rog

ram

1a:

Ext

end

ed S

ong

khla

–Pen

ang

–Med

an C

orr

ido

r (N

akho

n S

i Tha

mm

arat

–Pha

ttha

lung

–So

ngkh

la–Y

ala–

Pat

tani

– P

enan

g–M

edan

)

8N

ort

hgat

e M

anuf

actu

ring

Par

k at

Pen

gka

lan

Hul

u

Pen

gkal

an H

ulu

is t

he n

orth

ernm

ost

bord

er t

own

in P

erak

and

is

a m

eetin

g po

int f

or S

outh

ern

Ked

ah a

nd T

haila

nd, a

s w

ell a

s an

ent

ry p

oint

an

d ga

tew

ay t

o to

wns

in S

outh

ern

Thai

land

and

Ked

ah.

Its im

port

ance

ha

s be

en e

nhan

ced

by t

he d

evel

opm

ent

of n

earb

y bo

rder

tow

ns a

s a

duty

-fre

e ar

ea. I

n 20

06, t

he S

tate

Gov

ernm

ent o

f Per

ak o

ffere

d 15

0 ac

res

of l

and

in B

ukit

Ber

apit,

whi

ch i

s lo

cate

d in

bet

wee

n th

e Im

mig

ratio

n an

d C

usto

ms

of b

oth

Mal

aysi

a an

d Th

aila

nd,

to a

priv

ate

com

pany

, P

uri

Uta

ma

Dev

elop

men

t Sdn

. Bhd

., to

dev

elop

a p

lann

ed b

orde

r to

wn.

The

man

ufac

turin

g pa

rk w

ill in

clud

e re

crea

tiona

l, re

tail,

and

com

mer

cial

ce

nter

s; b

orde

r fa

cilit

ies

(term

inal

s an

d op

en y

ards

); an

d he

alth

faci

litie

s.

The

proj

ect s

cope

incl

udes

:P

hase

1:

Dev

elop

men

t of

Nor

thga

te A

rena

baz

aar

com

pris

ing

a bo

wlin

g ar

ena,

reta

il ou

tlets

, dut

y-fre

e, a

nd s

uper

mar

ket c

ompl

ex

Pha

se 2

: Pro

pose

d de

velo

pmen

t of N

orth

gate

Ave

nue

com

mer

cial

sh

op o

ffice

sP

hase

3: M

inis

try

of H

ealth

’s b

orde

r fa

cilit

ies

No

rthg

ate

Bo

rder

Ter

min

al/O

pen

yar

d f

acili

ty

The

proj

ect s

tatu

s is

det

aile

d as

follo

ws:

(i)

Ong

oing

Con

stru

ctio

n W

orks

–Pha

se 1

: Dev

elop

men

t of

Nor

thga

te

Are

na b

azaa

r co

mpr

isin

g a

bow

ling

aren

a, r

etai

l out

lets

, du

ty-f

ree,

an

d su

perm

arke

t com

plex

(ii

) In

vest

men

ts–P

hase

2: P

ropo

sed

deve

lopm

ent o

f Nor

thga

te A

venu

e co

mm

erci

al s

hop

offic

es(ii

i) In

vest

men

ts–P

hase

3:

Min

istr

y of

Hea

lth’s

bor

der

faci

litie

s w

hich

ha

ve c

omm

ence

d op

erat

ions

(iv)

Oth

er

Bus

ines

s D

evel

opm

ent–

Nor

thga

te

Bor

der

Term

inal

/Ope

n ya

rd fa

cilit

y (v

) O

ther

Inve

stm

ent

Opp

ortu

nitie

s–Th

ese

incl

ude

the

Nor

thga

te b

ed

and

brea

kfas

t bu

dget

hot

el J

oint

Ven

ture

with

Lig

htel

Sdn

. B

hd.

(ope

rato

r of

Wen

wor

th H

otel

KL)

whi

ch h

as b

een

com

plet

ed;

Facu

lty o

f Prin

ting,

Lim

kokw

ing

Inst

itute

, Joi

nt v

entu

re w

ith In

stitu

te

of P

rintin

g, U

nite

d K

ingd

om;

desi

gn a

nd b

uild

pro

pose

d ho

usin

g de

velo

pmen

t for

Imm

igra

tion

Dep

artm

ent w

hich

is p

endi

ng a

ppro

val

from

Min

istr

y of

Hom

e A

ffairs

.

The

deve

lope

r of

the

pro

ject

is

Pur

i U

tam

a D

evel

opm

ent

Sdn

. B

hd.

Age

ncie

s in

volv

ed in

the

pro

ject

are

the

Sta

te E

cono

mic

Pla

nnin

g U

nit,

Cus

tom

, Im

mig

ratio

n,

Pen

gkal

an

Hul

u D

istr

ict

Cou

ncil,

an

d M

inis

try

of F

inan

ce.

cont

inue

d on

nex

t pag

e

App

endi

x 1

cont

inue

d

40 Appendixes

Go

als/

Ob

ject

ives

and

Str

ateg

ies

Pro

ject

s/A

ctiv

ities

Fla

gsh

ip P

rog

ram

1: F

ive

Co

nnec

tivity

Co

rrid

ors

Fla

gsh

ip P

rog

ram

1a:

Ext

end

ed S

ong

khla

–Pen

ang

–Med

an C

orr

ido

r (N

akho

n S

i Tha

mm

arat

–Pha

ttha

lung

–So

ngkh

la–Y

ala–

Pat

tani

–P

enan

g–M

edan

)

9N

arat

hiw

at S

pec

ial B

ord

er E

cono

mic

Zo

ne

The

deve

lopm

ent

of N

arat

hiw

at S

peci

al E

cono

mic

Bor

der

Zone

(S

BE

Z)

is p

art

of t

he l

ong–

term

str

ateg

y to

dev

elop

Sad

ao–B

ukit

Kay

u H

itam

, N

arat

hiw

at–K

elan

tan,

an

d th

e jo

int

tow

nshi

p at

B

eton

g–P

engk

alan

un

der

the

Join

t D

evel

opm

ent

Str

ateg

y (J

DS

). A

clu

ster

of

valu

e–ad

ded

chai

ns w

ill be

dev

elop

ed in

Nar

athi

wat

, P

atta

ni,

and

Yala

pro

vinc

es w

ith

the

stat

us o

f sp

ecia

l ec

onom

ic z

one

(SE

Z) t

akin

g ad

vant

age

of t

heir

prox

imity

to, a

nd li

nkin

g w

ith, t

he E

ast C

oast

Eco

nom

ic R

egio

n (E

CE

R) o

f M

alay

sia.

The

SE

Z w

ill lin

k th

e m

ain

gate

way

s of

Tha

iland

with

Mal

aysi

a th

roug

h N

arat

hiw

at P

rovi

nce

at S

unga

i Gol

ok–R

anta

u P

anja

ng, T

ak B

ai–

Pen

gkal

an K

ubur

, and

Buk

eta–

Buk

it B

unga

. Nar

athi

wat

will

be p

rom

oted

as

the

hub

and

mai

n ga

tew

ay c

onne

ctin

g w

ith E

CE

R a

nd o

ther

pla

nned

de

velo

pmen

ts a

t Kel

anta

n S

tate

on

the

Mal

aysi

an s

ide.

The

proj

ect

will

deve

lop

an i

nteg

rate

d pl

an f

or e

stab

lishm

ent

of S

BE

Z at

Nar

athi

wat

–Pat

tani

–Yal

a co

nnec

ting

with

EC

ER

. Th

e pr

iorit

y w

ill be

th

e co

nstr

uctio

n of

a n

ew b

ridge

link

at

Sun

gai G

olok

–Ran

tau

Pan

jang

an

d Ta

k B

ai–P

engk

alan

Kub

ur t

o lin

k w

ith K

elan

tan

Sta

te a

t th

e E

CE

R.

A n

ew i

ndus

tria

l es

tate

will

be e

stab

lishe

d at

Tak

Bai

to

indu

ce m

ore

inve

stm

ents

in N

arat

hiw

at.

The

valu

e ch

ain

will

exte

nd t

o P

atta

ni’s

Hal

al

Indu

stria

l Est

ate

(IEAT

). O

ther

dev

elop

men

ts in

the

are

a in

clud

e th

e ne

w

CIQ

faci

litie

s, t

he N

arat

hiw

at a

gric

ultu

ral m

arke

t, Ta

k B

ai C

IQ g

reen

are

a fo

r to

uris

ts, S

unga

i Gol

ok t

ouris

t se

rvic

e ce

nter

, Sun

gai G

olok

rec

reat

ion

area

, and

the

Sun

gai G

olok

mun

icip

ality

floo

d pr

otec

tion

syst

em. B

orde

r to

wns

hips

are

als

o pl

anne

d fo

r Tak

bai,

Sun

gai–

Kol

ok, B

uket

a, Y

ingo

, and

R

uesa

.

Thai

land

will

cond

uct a

n in

tegr

ated

dev

elop

men

t pla

n fo

r the

dev

elop

men

t of

a S

EZ

at N

arat

hiw

at–P

atta

ni–Y

ala

linke

d w

ith t

he d

evel

opm

ents

at

Kel

anta

n S

tate

on

the

Mal

aysi

an s

ide.

The

stu

dy w

ill co

mm

ence

in 2

012.

Th

e in

tegr

ated

pla

n w

ill ut

ilize

the

findi

ngs

of a

n ea

rlier

stu

dy c

ondu

cted

un

der t

he J

DS

fram

ewor

k fo

r the

dev

elop

men

t of S

adao

–Buk

it K

ayu

Hita

m

and

Nar

athi

wat

–Kel

anta

n an

d th

e jo

int t

owns

hip

at B

eton

g–P

engk

alan

.Im

plem

entin

g ag

enci

es a

re t

he I

ndus

tria

l E

stat

e A

utho

rity

of T

haila

nd,

Cus

tom

s D

epar

tmen

t, H

ighw

ays

Dep

artm

ent,

and

Pub

lic W

orks

and

To

wn

and

Cou

ntry

Pla

nnin

g D

epar

tmen

t.

cont

inue

d on

nex

t pag

e

App

endi

x 1

cont

inue

d

Appendixes 41

Go

als/

Ob

ject

ives

and

Str

ateg

ies

Pro

ject

s/A

ctiv

ities

Fla

gsh

ip P

rog

ram

1: F

ive

Co

nnec

tivity

Co

rrid

ors

Fla

gsh

ip P

rog

ram

1b

: Str

aits

of

Mal

acca

Co

rrid

or

10D

evel

op

men

t o

f K

anta

ng C

oas

tal P

ort

at

Nak

lua

The

new

por

t at

Kan

tang

has

pot

entia

l co

nnec

tivity

to

Mal

aysi

a vi

a th

e Tr

ang–

Sat

un–M

elak

a C

orrid

or.

The

proj

ect

is a

new

bul

k an

d br

eak

bulk

po

rt w

hich

can

upl

ift e

ffici

ency

of s

ea tr

ansp

orta

tion

rout

e on

the

And

aman

si

de o

f S

outh

ern

Thai

land

. It

can

also

cre

ate

a m

ore

effic

ient

net

wor

k of

se

a tr

ansp

orta

tion

and

also

mul

timod

al t

rans

port

to

enha

nce

the

acce

ss

of g

oods

mov

ing

alon

g th

e co

rrid

or to

tran

sshi

pmen

t poi

nts

to o

ther

par

ts

of A

sia.

The

prop

osed

dev

elop

men

t of

Kan

tang

Coa

stal

Por

t at

Nak

lua

invo

lves

th

e co

nstr

uctio

n of

a b

ulk

and

brea

k bu

lk p

ort i

n Tr

ang

Pro

vinc

e to

furt

her

faci

litat

e se

a tr

ansp

orta

tion,

esp

ecia

lly fo

r the

incr

easi

ng v

olum

e of

rubb

er

expo

rts

(via

the

And

aman

sid

e of

Tha

iland

) to

the

subr

egio

nal,

Asi

an, a

nd

glob

al m

arke

ts.

The

port

siz

e, w

hich

is 1

85 m

eter

s in

leng

th a

nd 2

9 m

eter

s in

wid

th, w

ill co

ver

an a

rea

of 1

06,1

90 s

quar

e m

eter

s. T

he p

ort

will

be c

onst

ruct

ed

over

the

per

iod

2012

–201

4; a

nd w

ill co

ver

the

cons

truc

tion

of a

jet

ty,

carg

o ha

ndlin

g fa

cilit

ies,

and

adm

inis

trat

ive

and

mai

nten

ance

offi

ces.

It

will

enha

nce

the

conn

ectiv

ity b

etw

een

Thai

land

and

Nor

ther

n S

umat

ra.

11U

pg

rad

ing

of

Fis

hing

Po

rt a

t K

uala

Per

lis

The

plan

ned

upgr

ade

of th

e fis

h la

ndin

g je

tty

at K

uala

Per

lis (r

econ

stru

cted

in

200

3) in

to a

n in

tern

atio

nal fi

sher

ies

port

is a

resp

onse

to th

e in

crea

sing

qu

antit

y of

fish

land

ed a

t the

por

t, in

crea

sed

num

ber o

f boa

ts, a

nd a

ctiv

e ba

rter

trad

ing.

The

siz

e of

the

area

is 6

.413

4 ac

res.

The

orig

inal

site

was

a

fishi

ng j

etty

tha

t w

as d

estr

oyed

in

a fir

e on

3 J

une

2001

. O

ffloa

ding

ca

paci

ty is

25,

000

met

ric to

ns p

er y

ear.

The

proj

ect

to u

pgra

de t

he fi

sh la

ndin

g je

tty

at K

uala

Per

lis w

ill in

clud

e pr

elim

inar

y w

orks

, ear

thw

ork/

emba

nkm

ent,

exca

vatio

n w

ork,

dem

oliti

on,

reno

vatio

n, c

onst

ruct

ion

of n

ew b

uild

ing,

ext

erna

l wor

ks, m

echa

nica

l and

el

ectr

ical

wor

ks, l

ands

cape

wor

ks, a

nd p

rovi

sion

al s

lum

.

Exi

stin

g ac

tiviti

es a

nd f

acilit

ies

incl

ude:

(i)

loca

l fis

h of

fload

ing

activ

ity

and

tran

spor

tatio

n of

fish

for

im

port

/exp

ort;

and

(ii)

decl

ared

—fis

herie

s co

mpl

ex a

nd m

oorin

g, w

hole

sale

fish

mar

ket,

and

fish

prod

uce

mov

emen

t ga

tew

ay. O

pera

ting

hour

s ar

e fro

m 8

:00

a.m

. to

12:0

0 m

idni

ght.

Ther

e is

al

so b

arte

r tr

ade

with

Tha

iland

with

exp

orts

of

whe

at fl

our,

cook

ing

oil,

and

junk

food

; and

impo

rts

from

Tha

iland

of f

resh

fish

and

veg

etab

les.

cont

inue

d on

nex

t pag

e

App

endi

x 1

cont

inue

d

42 Appendixes

Go

als/

Ob

ject

ives

and

Str

ateg

ies

Pro

ject

s/A

ctiv

ities

Fla

gsh

ip P

rog

ram

1: F

ive

Co

nnec

tivity

Co

rrid

ors

Fla

gsh

ip P

rog

ram

1b

: Str

aits

of

Mal

acca

Co

rrid

or

12R

oad

Up

gra

din

g o

f K

aki B

ukit

and

Wan

g K

elia

n

The

upgr

adin

g of

the

6.5

km

roa

d be

twee

n K

aki B

ukit

and

Wan

g K

elia

n,

Per

lis is

inte

nded

to

prov

ide

a sm

ooth

link

to

the

seco

nd e

ntry

poi

nt in

th

e S

tate

of

Per

lis w

ith W

ang

Pra

chan

, Th

aila

nd;

and

set

the

stag

e fo

r sm

ooth

er a

nd f

aste

r co

mm

odity

flow

fro

m W

ang

Kel

ian

to P

enan

g P

ort

and

back

.

The

proj

ect

will

upgr

ade

the

exis

ting

road

(R

15)

of a

ppro

xim

atel

y 4

km

and

slop

e re

pair.

Roa

dway

upg

rade

sha

ll co

mpl

y w

ith th

e R

5 de

sign

with

m

inim

um d

esig

n sp

eed

of 7

0 km

per

hou

r. It

requ

ires

the

prov

isio

n of

road

al

ignm

ent

that

mee

ts c

erta

in m

inim

um v

ertic

al a

nd h

oriz

onta

l geo

met

ric

confi

gura

tion.

Fla

gsh

ip P

rog

ram

1c:

Ban

da

Ace

h–M

edan

–Pek

anb

aru–

Pal

emb

ang

Eco

nom

ic C

orr

ido

r

13S

umat

ra P

ort

s D

evel

op

men

t P

roje

ct(i)

B

elaw

an P

ort

(ii)

Ule

e Lh

eue

Po

rt(ii

i) M

alah

ayat

i Po

rt

Sum

atra

Po

rts

Dev

elo

pm

ent

Pro

ject

(i)

Bel

awan

Po

rtTh

e pr

ojec

t will

build

a te

mpo

rary

RoR

o fa

cilit

y; a

nd c

ondu

ct a

stu

dy w

ith

two

com

pone

nts:

(a)

tec

hnic

al h

ydro

grap

hic

and

drai

nage

stu

dy f

or

flood

ing

rem

edy;

and

(b) f

easi

bilit

y st

udy

for p

asse

nger

term

inal

relo

catio

n an

d br

eak/

bulk

bre

ak w

harf

expa

nsio

n.

14S

umat

ra T

oll

Ro

ads

(i)

Pal

emb

ang

and

Ind

rara

ja T

oll

Ro

ad

(ii)

Pal

emb

ang

–Bet

ung

To

ll R

oad

The

prop

osed

toll

road

is p

lann

ed to

min

imiz

e tr

affic

load

on

Pal

emba

ng–

Bet

ung

corr

idor

and

will

supp

ort

the

acce

ssib

ility

to a

nd f

rom

the

fut

ure

sea

port

of

Tanj

ung

Api

-Api

. It

will

also

cre

ate

posi

tive

impa

ct o

n th

e ec

onom

ic g

row

th o

f Sou

th S

umat

era

Pro

vinc

e, w

hich

pro

duce

s ab

unda

nt

natu

ral r

esou

rces

from

agr

icul

ture

, fish

ing,

and

pla

ntat

ions

.

(i)

Pal

emb

ang

and

Ind

rara

ja T

oll

Ro

adTh

e pr

ojec

t in

clud

es 4

-lani

ng b

etw

een

Pal

emba

ng a

nd In

drar

aja,

whi

ch

is t

he E

aste

rn H

ighw

ay r

unni

ng s

outh

out

of

the

city

tow

ard

Ban

dar

Lam

pung

(22

km s

tret

ch).

(ii)

Pal

emb

ang

–Bet

ung

To

ll R

oad

The

proj

ect

is lo

cate

d on

the

Pal

emba

ng–B

etun

g C

orrid

or,

whi

ch is

par

t of

Sum

atra

Eas

tern

Hig

hway

; an

d al

so f

unct

ions

as

conn

ecto

r to

the

S

umat

ra M

iddl

e H

ighw

ay.

cont

inue

d on

nex

t pag

e

App

endi

x 1

cont

inue

d

Appendixes 43

Go

als/

Ob

ject

ives

and

Str

ateg

ies

Pro

ject

s/A

ctiv

ities

Fla

gsh

ip P

rog

ram

1: F

ive

Co

nnec

tivity

Co

rrid

ors

Fla

gsh

ip P

rog

ram

1c:

Ban

da

Ace

h–M

edan

–Pek

anb

aru–

Pal

emb

ang

Eco

nom

ic C

orr

ido

r

15B

akau

heni

–Ter

ban

gg

i Bes

ar

This

pro

ject

is

loca

ted

in t

he m

ost

sout

herly

sec

tion

of t

he E

aste

rn

Hig

hway

from

Ban

dar

Lam

pung

to B

akau

heni

and

on

to th

e so

uthe

rn ti

p lin

k ac

ross

to J

ava.

The

proj

ect w

ill pu

t up

a to

ll ro

ad in

Bak

auhe

ni–T

erba

nggi

–Bes

ar lo

cate

d at

Lam

pung

Pro

vinc

e w

hich

is p

art o

f the

Sum

ater

a E

aste

rn H

ighw

ay.

16B

and

a A

ceh–

Kua

la S

imp

ang

To

ll R

oad

The

proj

ect

aim

s to

pro

vide

bet

ter

infra

stru

ctur

e (to

ll ro

ad a

nd h

ighw

ay)

and

faci

litie

s to

att

ract

mor

e to

uris

ts in

Ban

da A

ceh.

The

proj

ect

will

cove

r B

anda

Ace

h–S

umat

era

Uta

ra (d

ista

nce

of 4

50 k

m

and

brid

ge le

ngth

of

3,29

8 m

) an

d pa

rt o

f S

umat

era

Eas

tern

Hig

hway

pa

rtic

ular

ly B

anda

Ace

h–S

igli–

Lhok

seum

awe–

Lang

sa–B

inja

i.

17A

SE

AN

Hig

hway

ro

ute

151

Eas

t–W

est

Fee

der

link

bet

wee

n P

ekan

bar

u–B

ukitt

ing

gi–

Pem

atan

g S

iant

ar–J

amb

i–S

aro

lang

un;

Ben

gku

lu–L

ubuk

Lin

gg

au–L

ahat

; Bat

uraj

a–B

and

ang

Lam

pun

g

18A

SE

AN

Hig

hway

Ro

ute

bet

wee

n B

and

a A

ceh

and

Pal

emb

ang

Fla

gsh

ip P

rog

ram

1d

: Mel

aka–

Dum

ai E

cono

mic

Co

rrid

or

19M

elak

a–P

ekan

bar

u P

ow

er In

terc

onn

ectio

n

The

ratio

nale

for

the

Mel

aka–

Pek

anba

ru p

ower

inte

rcon

nect

ion

proj

ect i

s to

exc

hang

e ex

pens

ive

peak

load

aga

inst

che

aper

bas

e lo

ad in

the

othe

r co

untr

y by

mak

ing

use

of t

he (

i) on

e ho

ur t

ime

diffe

renc

e be

twee

n th

e tw

o co

untr

ies;

and

the

(ii) d

iffer

ence

in p

eak

hour

s an

d lo

ad c

urve

pat

tern

(M

alay

sia

has

a da

y pe

ak, w

hile

Sum

ater

a ha

s a

nigh

t pea

k).

The

Mel

aka–

Pek

anba

ru

Pow

er

Inte

rcon

nect

ion

Pro

ject

w

ill in

volv

e co

nstr

uctio

n of

a 5

00 k

ilovo

lt (k

V) h

igh

volta

ge d

irect

cur

rent

(H

VDC

) po

wer

tra

nsm

issi

on li

ne b

etw

een

Mal

acca

and

Pek

anba

ru. T

he p

ropo

sed

proj

ect f

ores

ees

the

cons

truc

tion

of a

600

meg

awat

t (M

W) ±

250k

V H

VDC

tr

ansm

issi

on l

ine

from

Sum

ater

a to

Pen

insu

lar

Mal

aysi

a pl

us c

onve

rter

st

atio

ns

and

othe

r tr

ansm

issi

on

faci

litie

s.

Per

usah

aan

List

rik

Neg

ara/

Sta

te E

lect

ricity

Com

pany

(PLN

of

Indo

nesi

a) s

hare

of

the

proj

ect

cost

is

$300

milli

on a

nd T

enag

a N

asio

nal B

erha

d (T

NB

of

Mal

aysi

a) s

hare

of

the

proj

ect c

ost i

s $2

00 m

illion

.

Bot

h P

LN a

nd T

NB

agr

eed

that

a d

etai

led

feas

ibilit

y st

udy

need

s to

be

carr

ied

out b

efor

e th

e pr

ojec

t can

be

finan

ced.

Det

aile

d te

rms

of re

fere

nce

have

bee

n pr

epar

ed fo

r th

e un

der-

sea

subm

arin

e ca

ble

surv

ey. C

ontr

act

will

be a

war

ded

soon

and

the

surv

ey w

ill be

com

plet

ed b

y th

e en

d of

firs

t qu

arte

r 20

12.

cont

inue

d on

nex

t pag

e

App

endi

x 1

cont

inue

d

44 Appendixes

Go

als/

Ob

ject

ives

and

Str

ateg

ies

Pro

ject

s/A

ctiv

ities

Fla

gsh

ip P

rog

ram

1: F

ive

Co

nnec

tivity

Co

rrid

ors

Fla

gsh

ip P

rog

ram

1d

: Mel

aka–

Dum

ai E

cono

mic

Co

rrid

or

20M

elak

a–D

umai

Eco

nom

ic C

orr

ido

r M

ultim

od

al T

rans

po

rt P

roje

ct

(i)

Dum

ai P

ort

(ii)

Pek

anb

aru–

Dum

ai R

oad

(i)

Dum

ai P

ort

The

proj

ect

will

cont

inue

the

unc

ompl

eted

con

tain

er t

erm

inal

(20

0 m

be

rth)

.

(ii)

Pek

anb

aru–

Dum

ai R

oad

The

proj

ect

will

reha

bilit

ate

the

63

km

Dur

i–D

umai

ro

ad;

cons

truc

t ne

w 9

0 km

roa

d on

Pek

anba

ru–K

andi

s; a

nd r

ehab

ilitat

e th

e 20

km

on

Kan

dis–

Dur

i. It

has

been

con

firm

ed b

y M

inis

try

of P

ublic

Wor

ks (

MP

W)

and

liste

d in

the

Pub

lic–P

rivat

e P

artn

ersh

ip (

PP

P)

Boo

k 20

10–2

014

(p. 9

2) a

s a

pote

ntia

l pro

ject

. It i

s al

read

y in

clud

ed in

the

Blu

e B

ook

(pub

lic

sect

or)

unde

r M

PW

. Th

e pr

ojec

t w

as i

nitia

lly o

ffere

d fo

r pr

ivat

e se

ctor

fin

anci

ng b

ut fo

und

not

finan

cial

ly fe

asib

le.

The

proj

ect

is n

ow p

ropo

sed

to b

e fin

ance

d by

gov

ernm

ent

whi

le t

he o

pera

tion

and

mai

nten

ance

will

be c

ondu

cted

by

the

priv

ate

sect

or.

The

scop

e an

d le

ngth

of

the

road

ne

twor

k w

ere

clar

ified

at

a na

tiona

l con

sulta

tion

mee

ting

in M

ay 2

010.

Th

e G

over

nmen

t of R

iau

and

the

rege

ncie

s in

Ria

u si

gned

a m

emor

andu

m

of u

nder

stan

ding

(M

OU

) fo

r la

nd a

cqui

sitio

n of

the

pro

ject

. S

uppo

rtin

g st

udie

s on

the

proj

ect w

hich

hav

e be

en c

ompl

eted

incl

ude

pre–

feas

ibilit

y st

udy,

SID

Pen

kaba

ru–K

andi

s ro

ute,

SID

Kan

dis–

Dur

i rou

te, a

nd A

MD

AL

toll

road

Pek

anba

ru–D

umai

.

Sum

atra

Po

rts

Dev

elo

pm

ent

Pro

ject

(par

t o

f p

roje

ct 1

3)(i)

K

uala

Eno

k P

ort

(i)

Kua

la E

nok

Po

rtC

urre

ntly,

the

re is

an

80-m

eter

wha

rf bu

t or

igin

al d

evel

opm

ent

faile

d to

“t

ake

off”

due

to

lack

of

an a

cces

s ro

ad.

The

road

to

the

port

has

now

be

en c

onst

ruct

ed,

alth

ough

it o

nly

a br

own-

topp

ed r

oad

at t

his

stag

e.

Ther

e ar

e 15

0 he

ctar

es o

f bac

klan

d fo

r dev

elop

men

t. (T

he p

roje

ct is

list

ed

in B

AP

PE

NA

S P

PP

Boo

k as

Dev

elop

men

t of

Bul

k Te

rmin

al,

Kua

la E

nok

Por

t, R

iau.

)

Fla

gsh

ip P

rog

ram

1e:

Ran

ong

–Phu

ket–

Ace

h E

cono

mic

Co

rrid

or

Sum

atra

Po

rts

Dev

elo

pm

ent

Pro

ject

(par

t o

f p

roje

ct 1

3)(i)

U

lee

Lheu

e P

ort

(ii)

Mal

ahay

ati P

ort

(i)

Ule

e Lh

eue

Po

rtTh

e pr

ojec

t co

nsis

ts o

f ad

ding

ano

ther

dol

phin

and

a w

alkw

ay a

nd

inst

allin

g a

cust

oms,

imm

igra

tion,

qua

rant

ine

and

secu

rity

(CIQ

S) f

acilit

y in

the

exis

ting

term

inal

.

(i)

Mal

ahay

ati P

ort

The

proj

ect

cons

ists

of

pr

ovid

ing

an

oper

atio

nal

cont

aine

r te

rmin

al

requ

iring

str

engt

heni

ng a

nd w

iden

ing

of th

e de

dica

ted

quay

, pav

ing

of th

e co

ntai

ner

yard

, dr

edgi

ng a

long

the

qua

y to

incr

ease

the

wat

er d

epth

to

9 m

, and

pro

vidi

ng m

obile

con

tain

er c

rane

and

oth

er e

quip

men

t.

cont

inue

d on

nex

t pag

e

App

endi

x 1

cont

inue

d

Appendixes 45

Go

als/

Ob

ject

ives

and

Str

ateg

ies

Pro

ject

s/A

ctiv

ities

Fla

gsh

ip P

rog

ram

1e:

Ran

ong

–Phu

ket–

Ace

h E

cono

mic

Co

rrid

or

21S

out

hern

Tha

iland

Po

rts

Dev

elo

pm

ent

Pro

gra

m: P

huke

t P

ort

The

proj

ect’s

obj

ectiv

e is

to

prov

ide

a pa

ssen

ger

faci

lity

com

plem

entin

g th

e ro

le o

f P

huke

t as

a m

ajor

tou

rist

dest

inat

ion

on t

he w

est

coas

t of

Th

aila

nd th

roug

h th

e de

velo

pmen

t of a

rela

tivel

y lo

w c

ost d

irect

pas

seng

er

or p

asse

nger

RoR

o se

rvic

e fa

cilit

ies.

The

prim

ary

stru

ctur

e is

the

new

pas

seng

er t

erm

inal

with

a p

roje

cted

bu

ildin

g th

at is

60

m lo

ng a

nd 4

0 m

wid

e, w

hich

is s

uffic

ient

for i

nter

med

iate

pa

ssen

ger

proc

essi

ng.

To d

evel

op a

RoR

o se

rvic

e, a

new

fac

ility

will

be

requ

ired,

as

the

exis

ting

quay

is

a st

anda

rd g

ener

al c

argo

ber

th w

ith

no r

amps

. Th

e pr

ojec

t w

ill pr

ovid

e th

e po

rt w

ith h

igh

qual

ity p

asse

nger

ha

ndlin

g fa

cilit

y, c

ompa

rabl

e w

ith o

ther

por

ts in

the

regi

on, u

sed

by c

ruis

e lin

ers.

The

faci

lity

will

com

plem

ent

the

imag

e of

Phu

ket

as a

tou

rist

“hub

” w

hich

the

Tou

rist

Min

istr

y an

d pr

ovin

cial

aut

horit

ies

are

tryi

ng t

o pr

ojec

t. Th

e pr

ofile

indi

cate

s th

at th

e pr

ojec

t is

read

y fo

r im

plem

enta

tion

but i

ssue

s ha

ve b

een

rais

ed re

gard

ing

(i) th

e du

ratio

n of

the

conc

essi

on th

at w

ould

be

gran

ted

to t

he d

evel

oper

, an

d (ii)

the

opp

ositi

on t

o de

velo

pmen

t of

frei

ght

activ

ities

in P

huke

t and

the

cost

ly d

esig

n of

the

proj

ect.

Fla

gsh

ip P

rog

ram

2: S

trea

mlin

ing

of

Trad

e R

egul

atio

ns a

nd P

roce

dur

es

22S

imp

lifica

tion

of

CIQ

Reg

ulat

ions

and

Pro

ced

ures

The

impo

rtan

ce o

f tra

de fa

cilit

atio

n in

acc

eler

atin

g ec

onom

ic g

row

th a

nd

pove

rty

redu

ctio

n w

as r

ecog

nize

d by

loca

l bus

ines

ses

and

part

icip

atin

g go

vern

men

ts.

Trad

e fa

cilit

atio

n is

sues

rev

olve

aro

und

addr

essi

ng n

on-

tarif

f ba

rrie

rs t

o at

tain

effi

cien

t m

ovem

ent

of g

oods

and

peo

ple,

and

ge

nera

lly p

erta

in to

cus

tom

s, im

mig

ratio

n an

d qu

aran

tine

(CIQ

) iss

ues.

The

16th

IM

T-G

T S

enio

r O

ffici

als’

Mee

ting/

Min

iste

rial

Mee

ting

(SO

M/M

M)

on 1

3–15

Oct

ober

200

9 in

Mel

aka,

Mal

aysi

a, d

ecid

ed to

est

ablis

h th

e Ta

sk

Forc

e on

CIQ

und

er t

he W

orki

ng G

roup

on

Trad

e an

d In

vest

men

t (W

GTI

) w

ith t

he o

bjec

tives

of

(i) s

treng

then

ing

CIQ

ini

tiativ

es a

imed

at

sim

plify

ing

cros

s-bo

rder

pro

cedu

res;

(ii)

mak

ing

rule

s, re

gula

tions

, and

pro

cedu

res

mor

e tra

nspa

rent

; (iii)

iden

tifyi

ng s

peci

fic is

sues

and

pra

ctic

es in

the

prop

osed

are

as

of s

impl

ificat

ion,

bot

h on

ent

ry-t

o-en

try p

oint

and

on

a m

ultil

ater

al b

asis

; (iv

) dev

elop

ing

a si

mpl

ified,

impr

oved

, and

tim

e-bo

und

syst

em in

pro

cess

ing

docu

men

ts a

t id

entifi

ed e

ntry

poi

nts;

and

(v)

sim

plify

ing

proc

edur

es i

n co

mpl

ying

with

qua

rant

ine

stan

dard

s, u

nder

Wor

ld T

rade

Org

aniz

atio

n/S

anita

ry a

nd P

hyto

sani

tary

(WTO

/SP

S) A

gree

men

t.

The

proj

ect’s

obj

ectiv

e is

to

sim

plify

and

har

mon

ize

CIQ

reg

ulat

ions

and

pr

oced

ures

in m

ajor

ent

ry p

oint

s in

the

IMT-

GT

regi

on.

The

activ

ities

of

the

Task

For

ce o

n C

IQ w

ill in

clud

e: (

i) fin

aliz

atio

n of

the

M

OU

to

defin

e th

e sc

ope

of i

mpr

ovem

ents

to

be u

nder

take

n in

the

pr

iorit

y bo

rder

cro

ssin

gs; (

ii) id

entifi

catio

n of

pro

ject

bor

der c

ross

ing

poin

t (B

CP

)/por

ts;

(iii)

benc

hmar

k se

ttin

g an

d ga

p an

alys

is;

(iv)

deve

lopm

ent

of s

tand

ard

oper

atin

g pr

oced

ures

(SO

P) p

er s

ecto

r pe

r pi

lot

BC

Ps;

and

(v

) dev

elop

men

t of a

CIQ

act

ion

plan

.

The

proj

ect w

ill ha

ve tw

o ph

ases

:P

hase

1:

Est

ablis

hing

the

ins

titut

iona

l fra

mew

ork,

cho

osin

g de

dica

ted

prio

rity

pilo

t en

try

poin

t, an

d es

tabl

ishi

ng a

rou

tine

of m

eetin

gs a

nd

disc

ussi

ons

to fl

esh

out t

he c

oope

ratio

n an

d co

ordi

natio

n m

echa

nism

s in

ac

cord

ance

to th

e C

IQ T

ask

Forc

e Te

rms

of R

efer

ence

.P

hase

2:

To b

e im

plem

ente

d up

on s

igni

ng o

f th

e M

OU

and

SO

Ps,

and

ef

fort

s w

ill re

volv

e ar

ound

impl

emen

ting

refo

rms,

taki

ng in

to c

onsi

dera

tion

basi

c ne

eds

and

reso

urce

s av

aila

ble

at e

ach

desi

gnat

ed p

riorit

y en

try

poin

t. M

ajor

out

puts

exp

ecte

d ar

e im

prov

ed C

IQ s

yste

ms

and

bett

er

priv

ate

sect

or c

ompl

ianc

e.

cont

inue

d on

nex

t pag

e

App

endi

x 1

cont

inue

d

46 Appendixes

Go

als/

Ob

ject

ives

and

Str

ateg

ies

Pro

ject

s/A

ctiv

ities

Fla

gsh

ip P

rog

ram

2: S

trea

mlin

ing

of

Trad

e R

egul

atio

ns a

nd P

roce

dur

es

23C

IQ C

om

ple

x D

evel

op

men

t at

Nar

athi

wat

and

So

ngkh

laTh

e C

IQ C

ompl

ex D

evel

opm

ent P

roje

ct, w

ith fu

ll-sc

ale

faci

litie

s, is

mai

nly

aim

ed

at

acco

mm

odat

ing

cros

s-bo

rder

ac

tiviti

es

(suc

h as

tr

avel

ing,

tr

adin

g, a

nd i

nves

tmen

t) be

twee

n Th

aila

nd a

nd M

alay

sia.

Thi

s pr

ojec

t is

exp

ecte

d to

gen

erat

e ec

onom

ic g

row

th o

n bo

th s

ides

of

Thai

land

– M

alay

sia

bord

ers.

The

proj

ect

incl

udes

pre

para

tion

of a

mas

ter

plan

, a

feas

ibilit

y st

udy,

de

taile

d de

sign

, and

con

stru

ctio

n.

Pro

pose

d im

plem

enta

tion

sche

dule

is

2012

–201

6. E

xecu

ting

agen

cies

ar

e th

e D

epar

tmen

t of

Pub

lic W

orks

and

Tow

n an

d C

ount

ry P

lann

ing,

C

usto

ms

Dep

artm

ent,

and

othe

r re

leva

nt a

genc

ies.

(i)

Ban

Pra

kob

CIQ

Co

mp

lex

Dev

elo

pm

ent

The

new

CIQ

Com

plex

at B

an P

rako

b, N

atha

wi w

ill be

dev

elop

ed to

fa

cilit

ate

cros

s-bo

rder

trav

ellin

g an

d tr

adin

g al

ong

the

Thai

land

–Mal

aysi

a bo

rder

. The

firs

t pha

se is

und

er c

onst

ruct

ion

and

will

be fi

nish

ed b

y

mid

-201

2. T

he fe

asib

ility

stud

y an

d en

gine

erin

g de

taile

d de

sign

(D/D

) of

the

seco

nd p

hase

are

goi

ng to

be

cond

ucte

d in

201

2 an

d co

nstr

uctio

n w

ill be

und

erta

ken

in 2

014.

(ii)

New

Sad

ao C

IQ C

om

ple

x D

evel

op

men

t

The

new

Sad

ao C

IQ c

ompl

ex w

ill fa

cilit

ate

a hu

ge d

eman

d fo

r cr

oss-

bord

er tr

avel

and

trad

e al

ong

Sad

ao–B

ukit

Kay

u H

itam

bor

der.

(iii)

Takb

ai C

IQ C

om

ple

x D

evel

op

men

tTh

e se

cond

CIQ

Com

plex

alo

ng T

akba

i–P

engk

alan

Kub

ur B

ridge

will

be

deve

lope

d to

faci

litat

e cr

oss-

bord

er t

rave

l and

tra

de a

long

the

Tha

iland

–M

alay

sia

bord

er.

(i)

Ban

Pra

kob

CIQ

Co

mp

lex

Dev

elo

pm

ent

Loca

ted

at t

he b

orde

r of

Tha

iland

and

Mal

aysi

a, t

he p

roje

ct c

onsi

sts

of c

onst

ruct

ing

the

CIQ

fac

ilitie

s an

d en

gine

erin

g D

/D o

f th

e se

cond

ph

ase

in B

an P

rako

b, N

atha

wi

in T

haila

nd,

incl

udin

g im

prov

emen

t of

ro

ad s

ectio

ns f

rom

Nat

haw

i–B

an P

rako

b; a

nd,

on t

he M

alay

sian

sid

e,

impr

ovin

g co

nnec

tivity

to th

e Th

ai g

atew

ay in

Dur

ian

Bur

ong

(thro

ugh

the

Tran

s E

aste

rn K

edah

Int

erla

nd H

ighw

ay P

roje

ct (

TEK

IH),

as w

ell a

s th

e up

grad

ing

of th

e D

uria

n B

urun

g–A

lor

Set

ar ro

ad n

etw

ork.

(ii)

New

Sad

ao C

IQ C

om

ple

x D

evel

op

men

t Th

e ne

w S

adao

CIQ

Com

plex

will

cove

r 290

acr

es o

f lan

d, a

ppro

xim

atel

y 3

km t

owar

d th

e ea

st o

f th

e ex

istin

g co

mpl

ex.

It w

ill be

the

larg

est

CIQ

co

mpl

ex in

Tha

iland

.

The

proj

ect i

s un

derg

oing

a fe

asib

ility

stud

y an

d en

gine

erin

g de

taile

d D

/D,

and

will

be fi

nish

ed b

y m

id-2

012.

Con

stru

ctio

n w

ill st

art i

n 20

13.

(iii)

Takb

ai C

IQ C

om

ple

x D

evel

op

men

tTh

e fe

asib

ility

stud

y of

the

loc

atio

n si

te i

s to

be

unde

rtak

en i

n 20

13.

The

engi

neer

ing

D/D

will

be u

nder

take

n in

201

4 an

d co

nstr

uctio

n w

ill st

art

in 2

015.

cont

inue

d on

nex

t pag

e

App

endi

x 1

cont

inue

d

Appendixes 47 G

oal

s/O

bje

ctiv

es a

nd S

trat

egie

sP

roje

cts/

Act

iviti

es

Fla

gsh

ip P

rog

ram

2: S

trea

mlin

ing

of

Trad

e R

egul

atio

ns a

nd P

roce

dur

es

24E

xcha

nge

of

Stu

dy

Vis

its o

f C

IQ P

erso

nnel

The

stud

y vi

sits

will

enco

urag

e cu

stom

s, i

mm

igra

tion

and

quar

antin

e (C

IQ) p

erso

nnel

and

oth

er r

elev

ant

sect

ors

to jo

intly

rec

eive

, ass

ess,

and

su

mm

ariz

e th

e ap

prop

riate

pol

icy

reco

mm

enda

tions

foc

usin

g on

CIQ

m

anag

emen

t of I

MT-

GT

mem

ber c

ount

ries.

The

exc

hang

e is

exp

ecte

d to

br

oade

n th

eir p

ersp

ectiv

e th

roug

h in

tera

ctio

n an

d ex

chan

ge o

f inf

orm

atio

n an

d ex

perie

nce.

Th

is

inte

ract

ion

and

incr

ease

d un

ders

tand

ing

are

expe

cted

to fa

cilit

ate

the

need

ed a

djus

tmen

ts in

the

rule

s an

d re

gula

tions

be

twee

n th

e tw

o co

untr

ies

as n

eede

d.

Stu

dy v

isits

will

be o

rgan

ized

to

enha

nce

the

com

preh

ensi

ve k

now

ledg

e an

d ex

plic

it ex

perie

nce

of C

IQ p

erso

nnel

and

oth

er r

elat

ed s

take

hold

ers

rega

rdin

g C

IQ a

nd c

ross

-bor

der

mov

emen

t.

Targ

et c

lient

s ar

e (i)

CIQ

age

ncie

s’ p

erso

nnel

from

Pad

ang

Bes

ar–P

adan

g B

esar

, S

adao

–Buk

it K

ayu

Hita

m,

Bet

ong–

Pen

gkal

an H

ulu,

and

San

gai

Kol

ok–R

anta

u P

anja

ng; a

nd (i

i) bu

sine

ss s

ecto

r rep

rese

ntat

ives

from

bot

h lo

cal a

nd n

atio

nal l

evel

s.

25T

hai I

mm

igra

tion

Co

op

erat

ion

Fra

mew

ork

The

prim

ary

goal

of

the

Thai

Im

mig

ratio

n C

oope

ratio

n Fr

amew

ork

is t

o su

ppor

t th

e in

crea

se in

intr

a- a

nd e

xtra

-tra

de,

inve

stm

ent,

and

tour

ism

on

cro

ss-b

orde

r pa

ssen

gers

and

goo

ds b

y ha

rmon

izin

g an

d si

mpl

ifyin

g re

gula

tions

and

pro

cedu

res

betw

een

mem

ber

coun

trie

s. T

he p

roje

ct

aim

s to

for

mul

ate

a fra

mew

ork

of c

oope

ratio

n do

cum

ent,

follo

win

g th

e go

vern

men

t pol

icy;

and

a re

fined

Imm

igra

tion

Act

B.E

. 252

2.

This

ini

tiativ

e se

eks

to h

arm

oniz

e im

mig

ratio

n sy

stem

s in

IM

T-G

T to

fa

cilit

ate

the

mov

emen

t of p

eopl

es a

mon

g th

e co

untr

ies

with

pilo

t site

s at

B

ukit

Kay

u H

itam

–Sad

ao, a

nd P

adan

g B

esar

-Sg.

Gol

ok–R

anta

u P

anja

ng.

The

pilo

t ha

rmon

izat

ion

sche

me

will

incl

ude

a on

e-st

op s

ervi

ce c

ente

r in

eac

h of

the

se b

orde

rs,

a pa

perle

ss v

isa

syst

em,

and

a 24

-hou

r C

IQ

oper

atio

n. A

coo

pera

tion

fram

ewor

k w

ill be

for

mul

ated

for

thi

s pu

rpos

e,

whi

ch w

ill pr

ovid

e in

puts

to re

finem

ents

in T

haila

nd’s

Imm

igra

tion

Act

.A

genc

ies

invo

lved

in

the

proj

ect

are

the

Imm

igra

tion

Dep

artm

ent

of

Indo

nesi

a, Im

mig

ratio

n B

urea

u of

Tha

iland

, and

Imm

igra

tion

Dep

artm

ent

of M

alay

sia.

Fla

gsh

ip P

rog

ram

3: P

rom

otio

n o

f Lo

gis

tics/

Sup

ply

Cha

in a

nd B

usin

ess

Ser

vice

s

26B

ukit

Bun

ga–

Jeli

Str

ateg

ic Im

ple

men

tatio

n P

lan

The

open

ing

of t

he B

ukit

Bun

ga–B

an B

uket

a B

ridge

(th

e “F

riend

ship

B

ridge

”) in

Kel

anta

n S

tate

in D

ecem

ber 2

007

and

subs

eque

ntly

the

Buk

it B

unga

CIQ

Com

plex

in J

anua

ry 2

011,

has

pro

vide

d an

add

ition

al e

ntry

po

int a

t Buk

it B

unga

–Jel

i bet

wee

n Th

aila

nd a

nd M

alay

sia.

The

Str

ateg

ic

Impl

emen

tatio

n P

lan

(SIP

) w

ill be

de

velo

ped

for

the

prop

osed

inte

grat

ed B

ukit

Bun

ga–J

eli c

ross

-bor

der

tour

ism

, tr

ade,

and

co

mm

erci

al-in

dust

rial-r

esid

entia

l dev

elop

men

t.

A s

tudy

will

be c

ondu

cted

in 2

012

to p

lan

for t

he d

evel

opm

ent o

f the

new

st

rate

gic

area

, Buk

it B

unga

–Jel

i, fo

cusi

ng o

n tr

ade

and

tour

ism

pot

entia

ls.

The

stud

y w

ill pr

ovid

e (i)

an

over

view

and

ass

essm

ent o

f the

Buk

it B

unga

an

d Je

li are

as a

nd S

outh

ern

Thai

land

(i.e

., B

an B

uket

a an

d its

sur

roun

ding

de

velo

pmen

ts)

area

s in

clud

ing

land

use

ana

lysi

s an

d so

cioe

cono

mic

st

udie

s; (

ii) m

arke

t st

udy

on t

he e

cono

mic

sec

tors

for

the

opt

imiz

atio

n of

de

velo

pmen

t po

tent

ials

of

th

e st

udy

area

s (e

.g.,

tour

ism

, tr

ade,

co

mm

erci

al,

indu

stria

l, an

d re

side

ntia

l); (

iii) e

stab

lishm

ent

of i

nteg

rate

d de

velo

pmen

t st

rate

gies

for

Buk

it B

unga

and

Jel

i; (iv

) es

tabl

ishm

ent

of

syne

rgy

betw

een

Buk

it B

unga

and

Jel

i; (v

) bu

sine

ss m

odel

for

mul

atio

n;

and

(vi)

iden

tifica

tion

of re

quire

men

ts fo

r phy

sica

l enh

ance

men

t wor

ks fo

r B

ukit

Bun

ga a

rea.

The

exec

utin

g ag

ency

is t

he E

ast

Coa

st E

cono

mic

Reg

ion

Dev

elop

men

t C

ounc

il (E

CE

RD

C).

cont

inue

d on

nex

t pag

e

App

endi

x 1

cont

inue

d

48 Appendixes

Go

als/

Ob

ject

ives

and

Str

ateg

ies

Pro

ject

s/A

ctiv

ities

Fla

gsh

ip P

rog

ram

3: P

rom

otio

n o

f Lo

gis

tics/

Sup

ply

Cha

in a

nd B

usin

ess

Ser

vice

s

27K

ota

Bha

ru C

ity C

entr

e M

aste

r P

lan

Kot

a B

haru

has

alw

ays

been

a c

ente

r fo

r cr

oss-

bord

er t

radi

ng a

nd

tour

ism

due

to

its p

roxi

mity

to

Thai

land

. Th

ere

is p

oten

tial t

o ex

ploi

t its

ge

ogra

phic

al a

dvan

tage

as

a bo

rder

and

fro

ntlin

e ci

ty t

o Th

aila

nd a

nd

Indo

-Chi

na r

egio

n, t

oget

her

with

the

ent

repr

eneu

rial t

alen

t of

the

peo

ple

of K

elan

tan.

The

city

has

und

ergo

ne q

uite

a ro

bust

pha

se o

f com

mer

cial

de

velo

pmen

t dur

ing

the

last

dec

ade.

With

this

gro

wth

, tra

ffic

cong

estio

n,

espe

cial

ly in

the

inne

r ci

ty a

reas

, has

bec

ome

a cr

itica

l iss

ue.

With

the

impr

ovem

ent i

n cr

oss-

bord

er li

nkag

es b

eing

pur

sued

, the

re is

a

need

to s

tudy

the

pote

ntia

l gro

wth

of t

he c

ity a

nd it

s im

pact

on

incr

ease

d tr

affic

flow

s. A

n in

tegr

ated

mas

ter

plan

will

help

for

mul

ate

and

prop

ose

deve

lopm

ent

plan

s of

Kot

a B

haru

City

Cen

tre

incl

udin

g ne

w r

etai

l an

d le

isur

e ar

eas

for

the

city

.

Furt

her

plan

ning

for

Kel

anta

n S

tate

, th

is t

ime

for

Kot

a B

haru

City

, w

ill be

con

duct

ed in

201

2. M

alay

sia

will

cond

uct

a m

aste

r pl

an in

201

2 to

ra

tiona

lize

spat

ial p

lann

ing

and

inve

stm

ents

for

the

fut

ure

deve

lopm

ent

of K

ota

Bha

ru C

ity,

focu

sing

on

the

requ

ired

infra

stru

ctur

e an

d ut

ilitie

s,

and

the

pote

ntia

l for

dev

elop

ing

new

ret

ail a

nd le

isur

e ar

eas.

The

stu

dy

will

cove

r (i)

de

velo

pmen

t st

rate

gy

incl

udin

g so

cioe

cono

mic

im

pact

; (ii

) str

ateg

ic d

evel

opm

ent

com

pone

nts

to s

pear

head

priv

ate

inve

stm

ent;

(iii)

traf

fic

and

tran

spor

tatio

n pl

anni

ng;

(iv)

deta

iled

layo

ut

plan

an

d es

timat

ed c

ost o

f dev

elop

men

t; an

d (v

) im

plem

enta

tion

and

phas

ing

plan

fo

r th

e m

ain

infra

stru

ctur

e an

d ut

ilitie

s.

The

exec

utin

g ag

ency

is th

e E

CE

RD

C.

28IM

T-G

T A

nnua

l Tra

de

Mis

sio

ns a

nd T

rad

e F

airs

Trad

e m

issi

ons,

as

prom

otio

nal

activ

ities

, w

ith M

alay

sia

and

Indo

nesi

a ar

e in

tend

ed t

o en

cour

age

Thai

ent

repr

eneu

rs t

o ex

pand

the

ir bu

sine

ss

netw

ork

in IM

T-G

T co

untr

ies,

and

to

incr

ease

tra

de o

ppor

tuni

ties

of T

hai

com

pani

es in

the

grow

ing

Mal

aysi

a an

d In

done

sia

mar

kets

. Th

e co

nduc

t of

tra

de f

airs

aim

s to

alle

viat

e po

vert

y am

ong

its p

eopl

e in

five

sou

ther

n bo

rder

pro

vinc

es t

hrou

gh a

sus

tain

able

inc

reas

e in

in

com

e an

d tr

ade

oppo

rtun

ities

for

con

sum

er g

oods

and

pro

mot

ion

of

the

One

Tow

n O

ne P

rodu

ct (O

TOP

) pro

gram

. It

also

pro

vide

s a

plat

form

fo

r in

crea

sing

mar

ket

shar

e am

ong

exis

ting

cust

omer

s in

IMT-

GT

area

s;

laun

chin

g a

busi

ness

to

a ne

w m

arke

t; st

reng

then

ing

rela

tions

hips

with

ex

istin

g su

pplie

rs a

nd v

endo

rs in

IMT-

GT

area

s; a

nd fo

rgin

g re

latio

nshi

ps

with

new

sup

plie

rs a

nd v

endo

rs.

The

Dep

artm

ent

of

Fore

ign

Trad

e w

ill le

ad

trad

e m

issi

ons

of

Thai

en

trep

rene

urs

in 1

4 so

uthe

rn p

rovi

nces

to

find

busi

ness

par

tner

s an

d tr

ade

oppo

rtun

ities

in M

alay

sia

and

Indo

nesi

a.

The

Pro

vinc

ial

Com

mer

ce O

ffice

of

Thai

land

in

five

sout

hern

bor

der

prov

ince

s (S

atun

, S

ongk

hla,

Pat

tani

, Ya

la,

and

Nar

athi

wat

) w

ill or

gani

ze

an IM

T-G

T Tr

ade

Fair

in S

ongk

hla.

cont

inue

d on

nex

t pag

e

App

endi

x 1

cont

inue

d

Appendixes 49

Go

als/

Ob

ject

ives

and

Str

ateg

ies

Pro

ject

s/A

ctiv

ities

Fla

gsh

ip P

rog

ram

3: P

rom

otio

n o

f Lo

gis

tics/

Sup

ply

Cha

in a

nd B

usin

ess

Ser

vice

s

29IM

T-G

T C

ont

act

Cen

ter

The

prim

ary

goal

of t

he IM

T-G

T C

onta

ct C

ente

r is

to

stre

ngth

en r

egio

nal

conn

ectiv

ity in

sup

port

of s

mal

l and

med

ium

-siz

ed e

nter

pris

es/in

dust

ries

(SM

Es/

SM

Is)

and

reta

ilers

for

incr

ease

d in

tra-

and

ext

ra-r

egio

nal t

rade

, in

vest

men

t an

d to

uris

m.

The

IMT-

GT

Con

tact

Cen

ter

was

est

ablis

hed

to p

rovi

de s

timul

atio

n of

bus

ines

s re

turn

s fo

r S

ME

s/S

MIs

/ret

aile

rs in

the

IM

T-G

T su

breg

ion

cons

istin

g of

32

prov

ince

s an

d st

ates

with

a g

row

ing

popu

latio

n of

70

milli

on p

eopl

e.

Pro

vidi

ng t

he b

est

prac

tices

in c

usto

mer

ser

vice

s ou

tsou

rcin

g (C

SO

) will

be t

he c

ore

obje

ctiv

e an

d vi

sion

of I

MT-

GT

Con

tact

Cen

ter

in s

timul

atin

g be

tter

retu

rns

of in

vest

men

ts fo

r th

eir

prod

ucts

and

ser

vice

s.

The

Con

tact

Cen

ter,

whi

ch w

as la

unch

ed in

Apr

il 20

11 in

Per

ak,

serv

es

reta

ilers

in

IM

T-G

T th

roug

h C

SO

, bu

sine

ss

mat

chin

g,

publ

icity

, an

d in

form

atio

n an

d ne

twor

king

. R

etai

lers

and

SM

Es/

SM

Is c

ompr

ise

mor

e th

an 7

5% o

f bu

sine

ss u

nits

in

the

IMT-

GT

and

are

ther

efor

e im

port

ant

play

ers

in t

he s

ubre

gion

’s e

cono

my.

By

prov

idin

g bu

sine

ss s

ervi

ces,

th

e co

ntac

t ce

nter

is

able

to

assi

st t

hese

ent

erpr

ises

to

expa

nd t

heir

busi

ness

opp

ortu

nitie

s an

d re

aliz

e be

tter

ret

urns

on

inve

stm

ents

for

th

eir

prod

ucts

and

ser

vice

s as

wel

l as

com

pete

at

glob

al s

tand

ards

. Th

e ce

nter

’s

serv

ices

ar

e pr

ovid

ed

24/7

th

roug

h an

el

ectr

onic

po

rtal

whi

ch b

uyer

s an

d se

llers

in

32 I

MT-

GT

prov

ince

s ca

n ac

cess

. Th

e po

rtal

als

o se

rves

as

a pl

atfo

rm f

or p

ublic

ity a

nd n

etw

orki

ng,

and

busi

ness

-to-

busi

ness

(B2B

) sol

utio

ns.

Fla

gsh

ip P

rog

ram

4: M

arin

e F

ishe

ries

and

Aq

uacu

lture

Dev

elo

pm

ent

30IM

T-G

T F

ishe

ries

Co

nfer

ence

and

Par

tner

ship

Arr

ang

emen

t

The

proj

ect

aim

s to

enh

ance

fish

erie

s co

oper

atio

n, k

now

ledg

e sh

arin

g on

fish

erie

s is

sues

and

bus

ines

s op

port

uniti

es f

or fi

sher

ies

prod

ucts

in

IMT-

GT.

The

diss

emin

atio

n of

bus

ines

s op

port

uniti

es i

n ag

ricul

ture

and

agr

o-in

dust

ry w

ill be

con

duct

ed th

roug

h se

min

ars,

exp

ositi

ons,

and

wor

ksho

ps.

Und

er t

he F

ishe

ries

Con

fere

nce

and

Par

tner

ship

Arr

ange

men

t, se

min

ars

and

expo

s ar

e al

so h

eld

alte

rnat

ely

in In

done

sia,

Mal

aysi

a, a

nd T

haila

nd

to e

xcha

nge

data

and

inf

orm

atio

n w

ith r

egar

d to

an

iden

tified

the

me

(e.g

., or

nam

enta

l fish

). A

part

from

kno

wle

dge

exch

ange

and

dis

cuss

ion,

th

e fo

rum

se

rves

as

a

plat

form

fo

r id

entif

ying

co

ncre

te

part

ners

hip

arra

ngem

ents

and

futu

re a

ctio

ns.

cont

inue

d on

nex

t pag

e

App

endi

x 1

cont

inue

d

50 AppendixesG

oal

s/O

bje

ctiv

es a

nd S

trat

egie

sP

roje

cts/

Act

iviti

es

Fla

gsh

ip P

rog

ram

5: A

pp

licat

ion

of

New

Tec

hno

log

ies

for

Live

sto

ck

31IM

T-G

T N

etw

ork

fo

r A

nim

al P

rod

uctio

n an

d B

iote

chno

log

y

Farm

ers

in S

outh

ern

Thai

land

face

a s

tron

g m

arke

t dem

and

for

beef

and

m

eat

goat

pro

duct

ion.

Nat

ive

catt

le a

nd g

oat

bree

ds d

o no

t yi

eld

high

pr

oduc

tion

but a

re n

atur

ally

resi

stan

t aga

inst

trop

ical

dis

ease

s, p

aras

ites,

an

d ho

t/hu

mid

wea

ther

. O

n th

e ot

her

hand

, ex

otic

bre

eds

of c

attle

and

go

ats

will

not

surv

ive

in s

uch

trop

ical

con

ditio

ns b

ut t

hey

have

hig

her

prod

uctio

n. T

here

fore

, cr

oss-

bree

ding

of

beef

cat

tle a

nd m

eat

goat

s of

na

tive

bree

ds w

ith e

xotic

bre

eds

is t

he s

olut

ion.

The

cro

ss-b

red

beef

ca

ttle

and

mea

t go

ats

can

surv

ive

in t

ropi

cal c

ondi

tions

and

stil

l pro

vide

hi

gh y

ield

and

inc

ome

to t

he f

arm

ers.

In

addi

tion,

the

dev

elop

men

t of

th

e S

urat

hRed

Goa

t B

reed

tha

t is

mor

e to

lera

nt t

o he

at,

dise

ases

, an

d tr

opic

al p

aras

ites

will

incr

ease

live

stoc

k pr

oduc

tivity

and

farm

ers’

inco

me.

The

proj

ect

seek

s to

inc

reas

e be

ef c

attle

and

mea

t go

at c

ross

bred

s pr

oduc

tion

by a

rtifi

cial

inse

min

atio

n te

chni

ques

, as

wel

l as

exot

ic b

reed

ing

and

embr

yo tr

ansf

er te

chno

logy

. Pro

duci

ng c

ross

bree

ds w

ill in

crea

se th

e pr

oduc

tivity

and

dis

ease

-res

ista

nce

of c

attle

and

goa

ts fo

r w

hich

ther

e is

hi

gh d

eman

d fro

m f

arm

ers

in S

outh

ern

Thai

land

to

mee

t co

nsum

ptio

n.

The

proj

ect

will

also

est

ablis

h a

repr

oduc

tive

biot

echn

olog

y la

bora

tory

in

Sur

at T

hani

pro

vinc

e an

d pr

ovid

e tr

aini

ng c

ours

es in

art

ifici

al in

sem

inat

ion

for

farm

ers.

A

n im

port

ant

com

pone

nt

of

the

proj

ect

is

the

deve

lopm

ent

of

the

Sur

athR

ed G

oat

Bre

ed. T

his

is in

res

pons

e to

the

nee

ds o

f goa

t fa

rmer

s to

incr

ease

goa

t pr

oduc

tion

by c

ross

ing

the

Thai

nat

ive

goat

with

exo

tic

Eur

opea

n br

eeds

(To

ggen

burg

and

Kal

ahar

i R

ed)

usin

g re

prod

uctiv

e bi

otec

hnol

ogie

s. Th

e ag

enci

es in

volv

ed in

the

pro

ject

are

the

Bur

eau

of B

iote

chno

logy

in

Live

stoc

k P

rodu

ctio

n, D

epar

tmen

t of

Liv

esto

ck D

evel

opm

ent,

and

the

Min

istr

y of

Agr

icul

ture

and

Coo

pera

tives

of T

haila

nd.

Fla

gsh

ip P

rog

ram

6: T

rad

e in

Ag

ricu

lture

32B

IMP

-EA

GA

and

IMT-

GT

Hig

h-Va

lue

Ag

ricu

lture

Bus

ines

s C

onf

eren

ce a

nd T

rad

e E

xpo

201

2

The

pote

ntia

l for

IM

T-G

T an

d B

IMP

-EA

GA

to

beco

me

glob

al p

laye

rs in

th

e pr

oduc

tion

of p

rem

ium

food

s ha

s be

en r

ecog

nize

d. T

he 5

th IM

T-G

T S

umm

it on

28

Oct

ober

201

0 in

Ha

Noi

, V

iet

Nam

, an

d th

e 7t

h B

IMP

-E

AG

A S

umm

it on

8 M

ay 2

011

in J

akar

ta,

Indo

nesi

a, h

ad d

irect

ed t

hat

a B

IMP

-EA

GA

and

IMT-

GT

Hig

h-Va

lue

Agr

icul

ture

Bus

ines

s C

onfe

renc

e an

d E

xpo

be o

rgan

ized

with

the

them

e, “P

rom

otin

g H

igh-

Valu

e A

gric

ultu

re

thro

ugh

Pub

lic–P

rivat

e S

ubre

gion

al P

artn

ersh

ips.

” Th

e pr

imar

y ob

ject

ive

of th

e co

nfer

ence

will

be to

find

way

s to

leve

rage

on

glob

al c

ross

-bor

der

inve

stm

ent

tren

ds b

y ta

king

adv

anta

ge o

f te

chno

logi

cal

adva

nces

in

agric

ultu

ral p

rodu

ctio

n an

d to

ens

ure

sust

aina

ble

and

high

val

ue s

uppl

y ag

ains

t ris

ing

cost

s in

ene

rgy,

fert

ilizer

, and

clim

ate

chan

ge e

ffect

.

This

con

fere

nce

will

brin

g to

geth

er t

he k

ey s

take

hold

ers

in t

he r

egio

n to

sh

are

expe

rienc

es a

nd e

xper

tise

on i

nnov

atio

ns a

nd g

ood

prac

tices

for

ac

hiev

ing

sust

aina

ble

and

high

val

ue s

uppl

y, i

nclu

ding

foo

d sa

fety

. Th

e ev

ent w

ill su

ppor

t cou

ntry

-driv

en p

artn

ersh

ip fr

amew

orks

for i

nves

tmen

ts in

hi

gh v

alue

agr

icul

ture

act

iviti

es. A

n es

timat

ed 3

00 tr

ader

s fro

m 5

cou

ntrie

s,

nam

ely,

Bru

nei D

arus

sala

m, I

ndon

esia

, Mal

aysi

a, P

hilip

pine

s an

d Th

aila

nd,

will

be p

artic

ipat

ing

in t

he t

rade

exp

o. A

spe

cial

ses

sion

for

tra

de b

uyer

s co

nsis

ting

of m

ajor

gro

cerie

s an

d ge

nera

l mer

chan

disi

ng r

etai

lers

will

be

arra

nged

, to

be

intro

duce

d to

pop

ular

and

priz

e-w

inni

ng p

rodu

cts

from

B

IMP

-EA

GA

and

IM

T-G

T m

embe

r co

untr

ies.

A s

peci

al c

ount

er m

anne

d by

trad

e of

ficer

s fro

m B

rune

i Dar

ussa

lam

, Ind

ones

ia, M

alay

sia,

Phi

lippi

nes,

an

d Th

aila

nd w

ill be

set

up

to a

ssis

t bu

sine

ss o

ppor

tuni

ties

seek

ers

e.g.

, (S

MEs

) in

serv

ices

rela

ted

to c

ross

-bor

der t

rade

.

The

BIM

P-E

AG

A a

nd IM

T-G

T H

igh

Valu

e A

gric

ultu

re B

usin

ess

Con

fere

nce

and

Trad

e E

xpo

2012

will

be h

eld

in M

elak

a, M

alay

sia,

in la

te 2

012

to b

e or

gani

zed

by th

e E

cono

mic

Pla

nnin

g U

nit o

f Mal

aysi

a.

cont

inue

d on

nex

t pag

e

App

endi

x 1

cont

inue

d

Appendixes 51

Go

als/

Ob

ject

ives

and

Str

ateg

ies

Pro

ject

s/A

ctiv

ities

Fla

gsh

ip P

rog

ram

6: T

rad

e in

Ag

ricu

lture

33N

arat

hiw

at A

gri

cultu

ral M

arke

t

Nar

athi

wat

P

rovi

nce,

Th

aila

nd,

aim

s to

bu

ild

the

cent

er/m

arke

t fo

r ag

ricul

tura

l pro

duce

and

pro

duct

s, in

clud

ing

the

One

Tow

n O

ne P

rodu

ct

(OTO

P)

prog

ram

, m

anuf

actu

ring

good

s, a

nd B

IO-d

iese

l sta

tion

serv

ice.

It

is e

xpec

ted

that

thi

s ce

ntra

l m

arke

t w

ill fa

cilit

ate

trad

e in

agr

icul

tura

l go

ods

and

serv

ices

bet

wee

n Th

aila

nd a

nd M

alay

sia.

The

proj

ect’s

ope

ratio

nal p

lan

incl

udes

est

ablis

hing

infra

stru

ctur

e (u

tiliti

es

grou

ndw

ork)

, bu

ildin

g of

agr

icul

tura

l com

mod

ities

sho

wro

om a

nd t

rade

ar

eas,

set

ting

up o

f a p

ilot

dem

onst

ratio

n fa

rm,

build

ing

of a

pro

cess

ing

plan

t, et

c.

Fla

gsh

ip P

rog

ram

7: E

nviro

nmen

t-F

rien

dly

Ag

ricu

lture

34D

evel

op

men

t o

f A

gro

-Eco

-Fri

end

ly A

gri

cultu

re t

hro

ugh

Ad

op

tion

of

Ap

pro

pri

ate

Tech

nolo

gie

s

The

Dep

artm

ent o

f Agr

icul

ture

of T

haila

nd h

as o

ffere

d to

dev

elop

a c

ente

r th

at w

ill se

rve

as a

pla

tform

for d

isse

min

atin

g re

sear

ch fi

ndin

gs to

farm

ers

and

othe

r re

sear

cher

s in

the

reg

ion,

incl

udin

g th

e pr

ovis

ion

of t

echn

ical

se

rvic

es. T

he C

ente

r is

also

env

isag

ed to

be

a re

posi

tory

of t

he c

olle

ctio

n of

tra

ditio

nal p

lant

spe

cies

, a

mod

el c

omm

unity

lear

ning

cen

ter,

and

the

hub

for

tech

nolo

gica

l inn

ovat

ion

for

rese

arch

in s

usta

inab

le a

gric

ultu

re.

To f

urth

er b

oost

res

earc

h in

agr

icul

tura

l te

chno

logi

es,

the

Dep

artm

ent

of A

gric

ultu

re o

f Th

aila

nd h

as o

ffere

d to

dev

elop

a m

odel

cen

ter

for

the

inte

grat

ion

of e

colo

gica

l re

sear

ch f

or s

usta

inab

le a

gro-

prod

uctio

n pr

oces

ses

thro

ugh

the

use

of r

enew

able

res

ourc

es i

n th

e pr

oduc

tion

sect

or.

The

proj

ect

is a

pro

toty

pe m

odel

lear

ning

cen

ter

for

sust

aina

ble

agric

ultu

re a

nd d

evel

opm

ent,

to b

e us

ed in

the

IMT-

GT

subr

egio

n. It

wou

ld

prom

ote

clos

er c

olla

bora

tion

betw

een

loca

l gov

ernm

ent a

genc

ies,

priv

ate

sect

or,

and

loca

l com

mun

ities

to

diss

emin

ate

know

ledg

e an

d pr

omot

e th

e m

anag

emen

t of a

gric

ultu

re a

nd e

nviro

nmen

t.

The

proj

ect’s

op

erat

iona

l pl

an

is

to:

(i)

esta

blis

h a

dem

onst

ratio

n an

d le

arni

ng

cent

er

(Gre

en

Cro

p M

anag

emen

t an

d B

io

Trea

tmen

t D

emon

stra

tion

and

Agr

o-To

uris

m T

rain

ing

Cen

ter);

(ii)

dev

elop

IM

T-G

T m

aste

r pl

an f

or t

he l

earn

ing

cent

er,

incl

udin

g ac

tiviti

es f

or k

now

ledg

e sh

arin

g an

d pr

omot

ing

sust

aina

ble

and

eco-

frien

dly

agric

ultu

ral p

ract

ices

an

d te

chno

logi

es; a

nd (i

ii) tr

ain

and

dem

onst

rate

env

ironm

enta

l agr

icul

ture

sy

stem

to s

take

hold

ers.

The

impl

emen

ting

agen

cy is

the

Dep

artm

ent

of A

gric

ultu

re.

Sup

port

ing

agen

cies

in

clud

e th

e R

oyal

Irr

igat

ion

Dep

artm

ent,

Met

eoro

logi

cal

Dep

artm

ent,

Dep

artm

ent

of

Live

stoc

k D

evel

opm

ent,

Dep

artm

ent

of

Fish

erie

s, D

epar

tmen

t of

Nat

ural

Res

ourc

es a

nd E

nviro

nmen

t, an

d ot

her

rele

vant

age

ncie

s of

the

Min

istr

y of

Agr

icul

ture

and

Coo

pera

tives

(MO

AC

). P

roje

ct im

plem

enta

tion

sche

dule

is O

ctob

er 2

011–

2012

. cont

inue

d on

nex

t pag

e

App

endi

x 1

cont

inue

d

52 AppendixesG

oal

s/O

bje

ctiv

es a

nd S

trat

egie

sP

roje

cts/

Act

iviti

es

Fla

gsh

ip P

rog

ram

8: H

alal

Inte

gri

ty (S

tand

ard

s an

d C

ertifi

catio

ns)

35In

teg

rate

d H

alal

Sup

erhi

ghw

ay–I

MT-

GT

Ho

st S

yste

m

The

Inte

grat

ed H

alal

Sup

erhi

ghw

ay is

gui

ded

by th

e pr

inci

pal g

oal

of s

tand

ardi

zing

Hal

al c

ertifi

catio

n fo

r al

l IM

T-G

T m

embe

r co

untr

ies,

th

ereb

y un

iting

them

in c

ompe

ting

with

oth

er s

uppl

iers

of h

alal

food

.

Two

earli

er p

hase

s of

the

pro

ject

hav

e be

en c

ompl

eted

foc

usin

g on

de

velo

ping

link

ages

alo

ng th

e H

alal

val

ue c

hain

. The

pro

ject

is in

pro

gres

s to

upg

rade

the

sys

tem

cal

led

“SIL

K”

and

“HO

ST.

” Th

e M

OU

on

the

Dev

elop

men

t of

Hal

al L

ogis

tics

and

ICT

Hal

al S

uper

high

way

was

sig

ned

durin

g th

e W

orld

H

alal

S

cien

ce

and

Indu

stry

B

usin

ess

Inte

rnat

iona

l C

onfe

renc

e (W

HA

SIB

201

0) i

n P

huke

t in

Jun

e 20

10 b

etw

een

the

Hal

al

Sci

ence

Cen

ter,

Chu

lalo

ngko

rn U

nive

rsity

(HS

C-C

U),

and

10 o

rgan

izat

ions

in

sev

en c

ount

ries.

HS

C-C

U is

bui

ldin

g a

trai

ning

Cen

ter

for

the

IMT-

GT

Hos

t S

yste

m a

t C

hula

long

korn

Uni

vers

ity t

o he

lp c

urre

nt a

nd p

rosp

ectiv

e M

OU

sig

nato

ries

to c

ompl

y w

ith it

s pr

ovis

ions

. Th

e fin

anci

ng f

or t

his

proj

ect

will

be a

rran

ged

by t

he N

atio

nal E

cono

mic

an

d S

ocia

l Dev

elop

men

t Boa

rd o

f Tha

iland

(NE

SD

B),

Min

istr

y of

Edu

catio

n,

and

Bud

get B

urea

u.

Fla

gsh

ip P

rog

ram

9: I

ndus

try

Dev

elo

pm

ent

36P

asir

Mas

Hal

al P

ark

The

regi

onal

and

glo

bal H

alal

mar

ket i

s hu

ge a

nd g

row

ing;

and

ther

e is

a

pote

ntia

l to

add

valu

e to

the

reg

iona

l agr

icul

ture

out

put

by le

vera

ging

on

Mal

aysi

a’s

deve

lope

d an

d gl

obal

ly re

spec

ted

Hal

al fr

amew

ork.

The

Pas

ir M

as H

alal

Par

k in

Kel

anta

n is

env

isag

ed t

o de

velo

p lo

cal a

nd

regi

onal

Hal

al e

ntre

pren

eurs

in

proc

essi

ng,

man

ufac

turin

g, a

nd t

rade

/di

strib

utio

n fo

r the

regi

onal

and

glo

bal m

arke

t. Its

str

ateg

ic lo

catio

n al

low

s it

to le

vera

ge o

n re

gion

al s

uppl

y an

d de

man

d ce

nter

s. T

he p

roje

ct w

as

iden

tified

in th

e E

ast C

oast

Eco

nom

ic R

egio

n (E

CE

R) M

aste

r P

lan.

The

park

will

be d

evel

oped

as

a co

mm

erci

ally

driv

en re

sour

ce-b

ased

par

k fo

r pr

oces

sing

, co

llect

ion,

and

dis

trib

utio

n of

hig

h-va

lue

food

pro

duct

s;

and

will

be p

ositi

oned

as

a H

alal

indu

stry

bus

ines

s pa

rk o

f cho

ice

in t

he

regi

on.

The

proj

ect

will

prov

ide

mut

ual s

uppo

rt t

o th

e To

k B

ali F

ishe

ries

Inte

grat

ed P

ark

proj

ect

and

prom

ote

easi

er fa

cilit

atio

n an

d m

ovem

ent

of

raw

mat

eria

ls.

The

proj

ect w

ill co

mpr

ise:

Pha

se 1

A -

Con

stru

ctio

n of

Ent

repr

eneu

r B

usin

ess

Com

plex

(S

ME

C

ompo

nent

s) w

ith b

uilt

up a

rea

of 1

2,00

0 sq

uare

met

ers

(sq

m)

Pha

se 2

- C

onst

ruct

ion

of e

arth

wor

k an

d in

frast

ruct

ure

(dra

inag

e an

d se

wag

e re

ticul

atio

n lin

e, in

tern

al ro

ad) w

ith to

tal a

rea

of 5

0 ac

res

Pha

se 1

C -

Con

stru

ctio

n of

SM

E C

ompl

ex o

f 5,0

00 s

q m

Ent

repr

eneu

r D

evel

opm

ent P

rogr

amm

e

Pro

pose

d im

plem

enta

tion

sche

dule

is 2

011–

2014

with

bas

ic in

frast

ruct

ure

expe

cted

to

be c

ompl

eted

in

2012

. A

genc

ies

invo

lved

in

the

proj

ect

are

the

Eas

t C

oast

Eco

nom

ic R

egio

n D

evel

opm

ent

Cou

ncil

(EC

ER

DC

), P

KIN

K, a

nd U

PE

N K

elan

tan.

cont

inue

d on

nex

t pag

e

App

endi

x 1

cont

inue

d

Appendixes 53

Go

als/

Ob

ject

ives

and

Str

ateg

ies

Pro

ject

s/A

ctiv

ities

Fla

gsh

ip P

rog

ram

9: I

ndus

try

Dev

elo

pm

ent

37P

erlis

Hal

al P

ark

The

Per

lis H

alal

Par

k is

loca

ted

at a

site

with

an

area

of 2

7.92

acr

es s

ituat

ed

alon

gsid

e th

e m

ain

road

from

Pad

ang

Bes

ar–K

anga

r, ap

prox

imat

ely

1 km

fro

m th

e Th

aila

nd–M

alay

sia

bord

er to

wns

hip

of P

adan

g B

esar

, Per

lis.

The

proj

ect

will

(i) id

entif

y m

eans

and

met

hods

for

the

dev

elop

men

t of

H

alal

pro

duct

s an

d se

rvic

es; (

ii) c

reat

e aw

aren

ess

for

loca

l ent

repr

eneu

rs

on th

e im

port

ance

of g

over

nmen

t’s H

alal

cer

tifica

tion

in o

rder

to im

prov

e th

e m

arke

tabi

lity

of p

rodu

cts;

(iii)

ass

ist

entr

epre

neur

s to

im

prov

e th

eir

prod

uct q

ualit

y in

ord

er to

qua

lify

for v

ario

us c

ertifi

catio

n [i.

e., H

alal

Haz

ard

Ana

lysi

s an

d C

ritic

al

Con

trol

P

oint

s (H

AC

CP

), G

ood

Man

ufac

turin

g P

ract

ices

(G

MP

)/Goo

d H

ygie

ne

Pra

ctic

es

(GH

P),

ISO

90

01,1

MA

L]

in

clos

e co

llabo

ratio

n w

ith

resp

ectiv

e is

suin

g/ce

rtifi

catio

n ag

enci

es;

(iv) a

ssis

t in

intr

oduc

ing

and

prom

otin

g po

tent

ial p

rodu

cts

to th

e do

mes

tic

and

inte

rnat

iona

l mar

kets

; (v)

cre

ate

and

mai

ntai

n a

data

base

of q

ualifi

ed

entr

epre

neur

s ba

sed

on

prod

uct

com

petit

iven

ess

and

expo

rt-a

bilit

y w

ith a

vie

w o

f pa

rtic

ipat

ing

in i

nter

natio

nal

trad

e ex

hibi

tions

ide

ntifi

ed

by t

he m

inis

trie

s; a

nd (

vi)

crea

te m

ore

entr

epre

neur

s in

the

pro

duct

ion

and

mar

ketin

g of

hig

h-de

man

d H

alal

pro

duct

s su

ch a

s fo

od,

beau

ty,

phar

mac

eutic

als,

her

bal-p

repa

red

prod

ucts

, etc

.

The

mai

n co

mpo

nent

s of

the

proj

ect a

re th

e co

nstr

uctio

n of

: (i)

m

ain

war

ehou

se,

(ii)

SM

I/SM

E b

uild

ings

,(ii

i) go

vern

men

t age

ncie

s bu

ildin

gs,

(iv) c

old

stor

age

faci

litie

s,(v

) m

arke

ting

and

dist

ribut

ion

cent

er.

The

proj

ect w

ill co

ver p

rodu

ctio

n of

Hal

al g

oods

acc

ordi

ng to

the

Sya

riah

law

s fo

r bot

h: (i

) foo

d pr

oduc

ts p

roce

ssin

g, p

acka

ging

, and

logi

stic

s; a

nd

(ii)

non-

food

pro

duct

s (p

harm

aceu

tical

s, h

ealth

, an

d be

auty

) an

d ot

her

rela

ted

serv

ices

.

Impl

emen

tatio

n sc

hedu

le i

s 20

10–2

012.

The

exe

cutin

g ag

ency

is

the

Per

lis S

tate

Eco

nom

ic D

evel

opm

ent C

orpo

ratio

n.

cont

inue

d on

nex

t pag

e

App

endi

x 1

cont

inue

d

1 IS

O 9

001

is b

y fa

r th

e w

orld

’s m

ost

esta

blis

hed

qual

ity f

ram

ewor

k an

d is

one

of

a se

ries

of q

ualit

y m

anag

emen

t sy

stem

sta

ndar

ds.

It ca

n he

lp b

ring

out

the

best

in t

he

orga

niza

tion

by e

nabl

ing

bett

er u

nder

stan

ding

of

the

proc

esse

s fo

r de

liver

ing

prod

ucts

/ser

vice

s to

the

cus

tom

ers.

(So

urce

: ht

tp://

ww

w.b

sigr

oup.

com

/en/

asse

ssm

ent-

and

-cer

tific

atio

n-se

rvic

es/m

anag

emen

t-sy

stem

s/st

anda

rds-

and-

sche

mes

/iso-

9001

/, ac

cess

ed 6

Feb

ruar

y 20

12).

54 AppendixesG

oal

s/O

bje

ctiv

es a

nd S

trat

egie

sP

roje

cts/

Act

iviti

es

Fla

gsh

ip P

rog

ram

9: I

ndus

try

Dev

elo

pm

ent

38To

k B

ali F

ishe

ries

Inte

gra

ted

Par

k in

Kel

anta

n

The

regi

onal

and

glo

bal H

alal

mar

ket

is h

uge

and

grow

ing

and

ther

e is

po

tent

ial t

o ad

d va

lue

to t

he r

egio

nal a

gric

ultu

re o

utpu

t by

leve

ragi

ng o

n M

alay

sia’

s de

velo

ped

and

glob

ally

resp

ecte

d H

alal

fram

ewor

k.

The

Tok

Bal

i Fis

herie

s In

tegr

ated

Par

k is

exp

ecte

d to

acc

eler

ate

grow

th o

f lo

cal a

nd re

gion

al e

ntre

pren

eurs

in p

roce

ssin

g, m

anuf

actu

ring,

and

trad

e/di

strib

utio

n of

fish

-bas

ed p

rodu

cts

for

the

regi

onal

and

glo

bal m

arke

t.

The

Tok

Bal

i Fis

herie

s In

tegr

ated

Par

k w

ill be

dev

elop

ed a

s a

com

mer

cial

ly-

driv

en i

nteg

rate

d co

mpl

ex f

or p

roce

ssin

g, c

olle

ctio

n, a

nd d

istr

ibut

ion

cent

er f

or h

igh-

valu

e fis

h-ba

sed

prod

ucts

; an

d w

ill be

pos

ition

ed a

s a

regi

onal

fish

erie

s hu

b pr

omot

ing

dow

nstr

eam

hig

h-va

lue

indu

strie

s.

Cur

rent

ly, t

here

are

no

CIQ

fac

ilitie

s fo

und

in T

ok B

ali.

CIQ

fac

ilitie

s ar

e ne

eded

to p

rom

ote

alte

rnat

ive

land

ing

site

for

Thai

fish

ing

vess

els

and

to

mak

e To

k B

ali F

ishe

ries

Inte

grat

ed P

ark

a re

gion

al fi

sher

ies

hub.

The

proj

ect i

nclu

des

cons

truc

tion

of in

frast

ruct

ure

wor

k an

d ut

ilitie

s (5

9 he

ctar

es) i

nclu

sive

of

inte

rnal

road

, dra

inag

e, s

ewag

e, a

nd w

ater

retic

ulat

ion

line;

cons

truc

tion

of e

ntre

pren

eur B

usin

ess

Com

plex

(SM

E C

ompo

nent

) at

a la

nd a

rea

of 1

2.5

acre

s; a

nden

trep

rene

ur d

evel

opm

ent p

rogr

am.

Pro

pose

d im

plem

enta

tion

sche

dule

is

20

12–2

014.

Th

e ex

ecut

ing

agen

cies

ar

e E

ast

Coa

st

Eco

nom

ic

Reg

ion

Dev

elop

men

t C

ounc

il (E

CE

RD

C),

UP

EN

Kel

anta

n, P

KIN

K, a

nd P

TG.

Fla

gsh

ip P

rog

ram

10:

Bra

ndin

g a

nd P

rom

otio

ns2

Fla

gsh

ip P

rog

ram

11:

Dev

elo

p T

hem

atic

To

uris

m R

out

es o

r C

ircui

ts w

ith a

Lo

gic

al S

eque

nce

of

Des

tinat

ions

and

Site

s

39T

he M

agic

Jo

urne

y al

ong

the

Tra

vers

ed R

out

e b

y Lu

ang

Pu

Tuad

“Lua

ng P

u Tu

ad”

or “

Son

dej P

hra

Raj

amun

i Sam

iram

agun

upam

acar

ya”

is o

ne o

f th

e m

ost

reve

red

and

wel

l res

pect

ed m

onks

in T

haila

nd w

ho

lived

a le

gend

ary

life

in th

e er

a of

Ayu

dhya

. His

foot

step

s co

vere

d pl

aces

in

Son

gkhl

a, P

atta

ni, a

nd N

akho

n S

i Tha

mm

arat

of T

haila

nd; a

nd K

edah

an

d P

erak

in M

alay

sia.

The

proj

ect a

ims

to a

ttra

ct to

uris

ts w

ho a

re B

uddh

ists

, eith

er fr

om IM

T-G

T or

nea

rby

regi

ons.

Tou

rist a

ctiv

ities

will

invo

lve

not o

nly

payi

ng h

omag

e to

Lu

ang

Pu

Tuad

, bu

t w

ill al

so in

volv

e aw

aren

ess

and

expe

rienc

e of

loca

l cu

lture

and

life

styl

es a

long

the

jour

ney.

Mor

eove

r, th

e pr

ojec

t will

crea

te a

ne

w tr

avel

rout

e in

Sou

ther

n Th

aila

nd a

nd e

ncou

rage

bor

derle

ss to

uris

m

dest

inat

ion

with

Mal

aysi

a.

The

proj

ect

invo

lves

the

join

t pr

omot

ion

of a

new

tou

rism

pro

duct

util

izin

g cu

ltura

l/rel

igio

us th

eme

by to

uris

m fi

rms

(priv

ate

sect

ors)

from

Tha

iland

and

M

alay

sia.

The

targ

et m

arke

ts a

re B

uddh

ists

from

the

IMT-

GT

subr

egio

n as

w

ell a

s ou

tsid

e th

e re

gion

. The

Mag

ic J

ourn

ey a

long

the

Tra

vers

ed R

oute

by

Lua

ng P

u Tu

ad w

ill al

so c

onne

ct a

nd in

tegr

ate

with

tour

ism

des

tinat

ions

in

Son

gkhl

a, P

atta

ni,

Nak

hon

Si

Tham

mar

at,

Ked

ah,

and

Per

ak.

The

first

pha

se w

ill in

volv

e pr

iorit

izat

ion

of t

ouris

t sp

ots

and

join

t m

arke

ting;

th

e se

cond

pha

se w

ill in

volv

e ex

pans

ion

to o

ther

pro

vinc

es t

hat

are

not

nece

ssar

ily c

onne

cted

to

the

cultu

ral

and

relig

ious

the

me

for

the

rout

e,

as w

ell

outs

ide

the

subr

egio

n. T

he p

rodu

ct c

ampa

ign

will

be l

aunc

hed

cove

ring

the

rout

e al

ong

Per

ak a

nd K

edah

Sta

tes

in M

alay

sia,

to S

ongk

hla,

P

atta

ni, a

nd N

akho

n S

i Tha

mm

arat

in T

haila

nd.

The

proj

ect

is e

xpec

ted

to c

omm

ence

in M

ay 2

012.

Exe

cutin

g ag

enci

es

iden

tified

are

the

loc

al g

over

nmen

t ad

min

istr

atio

n un

its,

the

Min

istr

y of

To

uris

m, a

nd T

ouris

m A

utho

rity

of T

haila

nd.

cont

inue

d on

nex

t pag

e

App

endi

x 1

cont

inue

d

2 Th

ere

wer

e no

prio

rity

proj

ects

iden

tifie

d un

der

this

fla

gshi

p pr

ogra

m.

Appendixes 55

Go

als/

Ob

ject

ives

and

Str

ateg

ies

Pro

ject

s/A

ctiv

ities

Fla

gsh

ip P

rog

ram

11:

Dev

elo

p T

hem

atic

To

uris

m R

out

es o

r C

ircui

ts w

ith a

Lo

gic

al S

eque

nce

of

Des

tinat

ions

and

Site

s

40In

tern

atio

nal H

om

esta

y P

rom

otio

nal F

air

The

hom

esta

y pr

ogra

mm

e is

an

expe

rienc

e w

here

tou

rists

sta

y w

ith

sele

cted

fam

ilies,

inte

ract

, an

d ex

perie

nce

the

daily

life

of

thes

e fa

milie

s w

hile

exp

erie

ncin

g th

e lo

cal c

ultu

re. T

he h

omes

tay

conc

ept i

s fo

cuse

d on

lif

esty

le a

nd e

xper

ient

ial t

ouris

m. T

he u

niqu

enes

s of

the

trad

ition

al s

ongs

, da

nces

, cui

sine

s, a

nd s

port

s, a

s w

ell a

s ru

ral e

cono

mic

act

iviti

es, a

re th

e m

ain

attr

actio

ns a

nd o

ffer

uniq

ue e

xper

ienc

e to

the

tour

ists

com

pare

d to

th

e ex

perie

nce

in th

e ci

ty.

The

proj

ect

will

help

pro

mot

e aw

aren

ess

of t

he h

omes

tay

conc

ept,

prov

ide

expo

sure

to

tour

ists

on

loca

l cus

tom

s an

d tr

aditi

ons,

and

boo

st

inco

me

thro

ugh

rura

l tou

rism

ent

repr

eneu

r dev

elop

men

t and

job

crea

tion,

am

ong

othe

rs.

The

Inte

rnat

iona

l H

omes

tay

Pro

mot

iona

l Fa

ir ac

tiviti

es w

ill in

clud

e th

e fo

llow

ing:

(i)

Pro

mot

iona

l boo

th fo

r ho

mes

tay

oper

ator

s;(ii

) C

ultu

ral

and

trad

ition

al

perfo

rman

ce

by

sele

cted

ho

mes

tay

from

IM

T-G

T su

breg

ion;

(iii)

Dem

onst

ratio

ns o

f si

gnat

ure

cook

ing,

uni

que

hand

icra

ft pr

oduc

ts,

and

rura

l eco

nom

ic a

ctiv

ity;

(iv)

Bus

ines

s m

atch

ing

sess

ion

amon

g in

dust

ry

play

ers

to

prom

ote

hom

esta

y pa

ckag

es; a

nd

(v)

Sem

inar

on

Mal

aysi

a’s

Hom

esta

y su

cces

s st

orie

s.

To p

rom

ote

the

hom

esta

y co

ncep

t, an

inte

rnat

iona

l hom

esta

y pr

omot

ion

fair

will

be h

eld

in P

erak

in J

une

2012

(to

coin

cide

with

Vis

it P

erak

Yea

r) an

d in

Neg

eri S

embi

lan

in M

arch

201

3.

Fina

ncin

g w

ill be

pro

vide

d by

the

sta

te g

over

nmen

t, M

inis

try

of T

ouris

m

Mal

aysi

a, a

nd th

e E

cono

mic

Pla

nnin

g U

nit.

cont

inue

d on

nex

t pag

e

App

endi

x 1

cont

inue

d

56 Appendixes

Go

als/

Ob

ject

ives

and

Str

ateg

ies

Pro

ject

s/A

ctiv

ities

Fla

gsh

ip P

rog

ram

11:

Dev

elo

p T

hem

atic

To

uris

m R

out

es o

r C

ircui

ts w

ith a

Lo

gic

al S

eque

nce

of

Des

tinat

ions

and

Site

s

41M

edic

al T

our

ism

Hub

in S

out

hern

Tha

iland

The

proj

ect w

ill in

trod

uce

new

pro

duct

s in

med

ical

tour

ism

by

pres

entin

g so

uthe

rn T

haila

nd,

toge

ther

with

Mal

aysi

a, a

s a

med

ical

tou

rism

hub

, ba

sed

on th

eir

resp

ectiv

e ar

eas

of e

xper

tise.

The

initi

al p

hase

of

the

proj

ect

will

invo

lve

shar

ing

of i

nfor

mat

ion,

joi

nt

sele

ctio

n of

targ

et g

roup

s, a

nd e

stab

lishi

ng a

net

wor

k of

med

ical

ser

vice

s in

the

subr

egio

n. T

his

will

serv

e as

the

basi

s fo

r for

min

g st

rate

gic

busi

ness

pa

rtne

rshi

ps i

n sp

ecia

lized

fiel

ds,

the

cond

uct

of j

oint

res

earc

h, t

he

deve

lopm

ent

of m

arke

ting

prod

ucts

, an

d ca

paci

ty b

uild

ing

to e

nhan

ce

med

ical

ser

vice

sta

ndar

ds a

nd q

ualit

y. I

n th

e lo

ng r

un,

both

cou

ntrie

s sh

ould

be

able

to

shar

e ex

pert

ise

and

join

tly t

ap i

nto

the

mar

ket

of

med

ical

tou

rism

bas

ed o

n ea

ch c

ount

ry’s

dis

tinct

ive

com

pete

nce;

thu

s,

avoi

ding

pric

e co

mpe

titio

n th

roug

h th

e lo

wer

ing

of s

ervi

ce s

tand

ards

. A

join

t m

arke

ting

team

will

prom

ote

the

med

ical

hub

with

in a

nd o

utsi

de

the

regi

on.

Med

ical

tou

rism

will

cove

r ho

tels

, ac

com

mod

atio

ns,

hosp

itals

, cl

inic

s,

wel

lnes

s sp

a, a

nd r

esta

uran

ts,

as w

ell a

s fin

anci

al a

nd h

ealth

insu

ranc

e se

rvic

es.

The

Wor

king

Gro

up o

n To

uris

m (t

hru

the

Min

istr

y of

Tou

rism

and

Spo

rts,

Th

aila

nd) a

rran

ged

two

inte

rnat

iona

l sem

inar

s in

Phu

ket a

nd B

ali p

rovi

ding

m

assi

ve p

oten

tial

for

mem

ber

coun

trie

s to

cre

ate

an I

MT-

GT

med

ical

to

uris

m h

ub/h

ealth

and

wel

lnes

s hu

b.

In T

haila

nd,

the

Min

istr

y of

Tou

rism

and

Spo

rts

com

plet

ed t

he s

tudy

to

prom

ote

Sou

ther

n Th

aila

nd a

s a

med

ical

tour

ism

hub

in IM

T-G

T.

Pro

pose

d im

plem

enta

tion

sche

dule

is

2012

–201

6. E

xecu

ting

agen

cies

in

clud

e IM

T-G

T JB

C T

haila

nd a

nd M

alay

sia

in c

lose

col

labo

ratio

n w

ith

prov

ince

s an

d st

ates

, loc

al g

over

nmen

t adm

inis

trat

ion

units

, and

Tou

rism

A

utho

rity

of T

haila

nd.

Fla

gsh

ip P

rog

ram

12:

Enh

ance

d L

abo

r M

ob

ility

by

Ad

op

ting

Mut

ual R

eco

gni

tion

Ag

reem

ents

alo

ng t

he L

ines

of

the

AS

EA

N F

ram

ewo

rk

42E

nhan

cem

ent

of

the

qua

lity

of

hum

an r

eso

urce

s, t

hro

ugh

cap

acity

b

uild

ing

pro

gra

ms

(i)

Trai

ning

and

wo

rksh

op

fo

r IM

T-G

T E

xecu

tives

/ M

id-m

anag

emen

t–P

rinc

e S

ong

khla

Uni

vers

ity

The

proj

ect

will

cond

uct

IMT-

GT

trai

ning

ses

sion

s on

key

are

as w

hich

ai

m t

o fu

rthe

r en

hanc

e co

ntac

ts,

netw

ork,

and

coo

pera

tion

amon

g th

e IM

T-G

T m

embe

rs.

(i)

Trai

ning

and

wo

rksh

op

fo

r IM

T-G

T E

xecu

tives

/ M

id-m

anag

emen

t–P

rinc

e S

ong

khla

Uni

vers

ity

It is

pro

pose

d th

at c

aref

ully

cho

sen

IMT-

GT

trai

ning

ses

sion

s (m

odul

es)

will

be la

unch

ed c

onsi

stin

g of

30

part

icip

ants

, 10

from

eac

h of

the

IMT-

GT

mem

ber

coun

trie

s.

The

follo

win

g ar

e ex

ampl

es o

f pro

pose

d m

odul

es a

nd s

ubje

cts:

IMT-

GT

stud

ies

whi

ch i

nclu

de p

rofil

es o

f ea

ch c

ount

ry a

nd i

ts

peop

le,

such

as

rela

ted

hist

oric

al,

anth

ropo

logi

cal,

mul

ti-cu

ltura

l, so

cioe

cono

mic

, and

pol

itica

l asp

ects

; Is

sues

rela

ted

to th

e si

x IM

T-G

T w

orki

ng g

roup

s; a

ndG

loba

l, co

ntin

enta

l, an

d re

gion

al f

acto

rs a

nd t

heir

impl

icat

ions

for

IM

T-G

T in

AS

EA

N, A

sia,

and

the

wor

ld.

Eac

h m

odul

e w

ill la

st 2

wee

ks,

and

the

part

icip

ants

will

spen

d 5–

7 da

ys

in e

ach

coun

try.

The

det

aile

d fo

rmat

s fo

r ea

ch p

rogr

am a

nd m

odul

e w

ill be

des

igne

d la

ter,

but

will

incl

ude

lect

ures

, in

tera

ctio

n, a

nd p

eer-

grou

p le

arni

ng,

wor

ksho

ps,

and

field

trip

s. E

xecu

ting

agen

cy i

s th

e P

rince

of

Son

gkla

Uni

vers

ity.

App

endi

x 1

cont

inue

d

cont

inue

d on

nex

t pag

e

Appendixes 57

App

endi

x 1

cont

inue

d

Go

als/

Ob

ject

ives

and

Str

ateg

ies

Pro

ject

s/A

ctiv

ities

Fla

gsh

ip P

rog

ram

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d L

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reem

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N F

ram

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rk

(ii)

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on

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erat

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agem

ent

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lls

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elo

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ent

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our

ism

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rmul

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elop

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reng

then

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GT

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ork

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on to

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Eff

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catio

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ls i

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etho

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linki

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iner

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rmin

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TIC

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istry

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Fore

ign

Affa

irs; a

nd D

SD

, Min

istry

of L

abou

r.

cont

inue

d on

nex

t pag

e

58 Appendixes

Go

als/

Ob

ject

ives

and

Str

ateg

ies

Pro

ject

s/A

ctiv

ities

Fla

gsh

ip P

rog

ram

12:

Enh

ance

d L

abo

r M

ob

ility

by

Ad

op

ting

Mut

ual R

eco

gni

tion

Ag

reem

ents

alo

ng t

he L

ines

of

the

AS

EA

N F

ram

ewo

rk

(v)

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rnat

iona

l Sem

inar

on

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men

Par

ticip

atio

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or

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ket

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ect’s

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ectiv

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ote

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om e

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cutin

g ag

enci

es

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A, M

inis

try

of F

orei

gn A

ffairs

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DS

D, M

inis

try

of L

abou

r.

App

endi

x 1

cont

inue

d

Appendixes 59

Appendix 2. IMT-GT Implementation Blueprint 2012–2016: Initial Two-Year Rolling Pipeline by Flagship Program, 2012–2013

Flagship Programs and ProjectsCost

($ million)

Flagship Program 1: Five Connectivity Corridors

Flagship Program 1a: Extended Songkhla–Penang–Medan Corridor (Nakhon Si Thammarat–Phattalung–Songkhla–Yala–Pattani–Penang–Medan)

1 Hat Yai–Sadao Intercity Motorway 300.00

2 Nathawi Ban Prakob–Durian Burung

(i) Nathawi–Ban Prakob (Construction of CIQ facilities)

(ii) Durian Burung–Pedu–Gubir–Kupang (Road Upgrading)

(iii) Alor Setar–Kuala Nerang–Durian Burung (Road Upgrading)

69.00

66.00

77.00

3 Ipoh–Medan Direct Flight TBD

4 Southern Region Cargo Distribution Center at Thungsong 28.0

5 Integrated ICQS at Bukit Kayu Hitam 120.00

6 Northgate Manufacturing Park at Pengkalan Hulu 47.00

7 Narathiwat Special Border Economic Zone TBD

Flagship Program 1b: Straits of Malacca Corridor

8 Development of Kantang Coastal Port at Naklua 22.00

9 Road Upgrading of Kaki Bukit and Wang Kelian 3.80

Subtotal for Flagship Program 1 732.80

Flagship Program 2: Streamlining of Trade Regulations and Procedures

10 Simplification of CIQ regulations and procedures TBD

11 CIQ Complex Development at Narathiwat and Songkhla 0.16

12 Exchange of study visits of CIQ personnel 1.00


Flagship Program 3: Promotion of Logistics/Supply Chain and Business Services

13 Bukit Bunga–Jeli Strategic Implementation Plan 1.59

14 IMT-GT Annual Trade Missions and Trade Fairs 0.26

15 IMT-GT Contact Center 1.00


Flagship Program 4: Marine Fisheries and Aquaculture Development

16 IMT-GT Fisheries Conference and Partnership Arrangement TBD

Subtotal for Flagship Program 4 TBD

60 Appendixes

Flagship Programs and ProjectsCost

($ million)

Flagship Program 5: Application of New Technologies for Livestock

17 IMT-GT Network for Animal Production and Biotechnology1 0.07


Flagship Program 6: Trade in agriculture

18 BIMP-EAGA and IMT-GT High-Value Agriculture Business Conference and Trade Expo 2012

TBD

19 Narathiwat Agricultural Market 14.5


Flagship Program 7: Environment-Friendly Agriculture

20 Development of Agro-Eco-Friendly Agriculture through Adoption of Appropriate Technologies

1.00


Flagship Program 8: Halal Integrity (Standards and Certification)

21 Integrated Halal Superhighway IMT-GT Host System 1.17


Flagship Program 9: Industry Development

22 Perlis Halal Park 3.13

23 Tok Bali Fisheries Integrated Park in Kelantan 17.94


Flagship Program 11: Develop Thematic Tourism Routes or Circuits with a Logical Sequence of Destinations and Sites

24 International Homestay Promotional Fair 0.10


Flagship Program 12: Enhanced Labor Mobility by adopting Mutual Recognition Agreements along the lines of the ASEAN Framework

25 Enhancement of the quality of human resources in the IMT-GT subregion through capacity building programs

(i) Training and workshop for IMT-GT Executives/Mid-management – Prince Songkhla University

(ii) Workshop on IMT-GT Cooperation for Management and Skills Development in Tourism

(iii) Workshop on the Effectiveness and Efficiency of Technical and Vocational Training

(iv) Workshop on Project Method in Vocational Training

(v) International Seminar on Women Participation in the Labor Market

0.14


TOTAL 774.86

ASEAN = Association of Southeast Asian Nations; BIMP-EAGA = Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area; CIQ = customs, immigration, and quarantine; ICQS = immigration, customs, quarantine, and security; IMT-GT = Indonesia-Malaysia-Thailand Growth Triangle; TBD = to be determined.1 A component of this project is the Development of SurathRed Goat Breed which is already part of the

estimated cost.

continued

indonesia-malaysia-thailand growth … imt-gt roadmap for development 2007–2011 set the vision for...

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