KUALA LUMPUR: Sub-regional cooperation frameworks such as the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) and the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) have delivered tangible outcomes and now play an increasingly critical role in advancing the ASEAN Economic Community’s (AEC) vision for inclusive regional development.
According to UOB Kay Hian Wealth Advisors Sdn Bhd’s Head of Investment Research, Mohd Sedek Jantan, these initiatives complement the broader macroeconomic direction set by the AEC by addressing intra-national disparities and enabling inclusive growth in marginalised and underdeveloped regions.
The IMT-GT spans the Strait of Malacca, one of the world’s busiest trade routes, while BIMP-EAGA lies along the Sulu and Sulawesi Seas, key maritime gateways that enhance regional connectivity and economic exchange. Their strategic geographic locations, said Mohd Sedek, render them natural trade and investment hubs.
“These sub-regions are not merely geographic areas — they are spatial economic strategies tailored to uplift lagging regions through targeted interventions,” he stated.
IMT-GT leverages agro-processing and tourism, aligning the complementary strengths of southern Thailand, northern Peninsular Malaysia and Sumatra. In contrast, BIMP-EAGA capitalises on fisheries, renewable energy and ecotourism to build sustainable economic activity.
“This is not a one-size-fits-all model. It’s about drawing on local advantages to integrate these regions into broader regional and global value chains,” he added.
Special Economic Zones (SEZs) have emerged as critical enablers, acting as growth catalysts that attract foreign direct investment, foster industrial development and create employment through favourable regulatory environments. Notable SEZs in the IMT-GT include Medan, Bukit Kayu Hitam and Sei Mangkei, while BIMP-EAGA encompasses over 60 zones from Bitung in Indonesia to Zamboanga in the Philippines.
“These zones are not just industrial hubs. They drive structural transformation by fostering agglomeration economies — ecosystems where businesses, infrastructure and skilled labour coalesce to fuel productivity,” Mohd Sedek said.
He noted that SEZs linked to cross-border trade and investment networks are building economic bridges that enhance ASEAN’s regional cohesion.
Key sectors showing strong momentum across both IMT-GT and BIMP-EAGA include tourism, agrobusiness, renewable energy and manufacturing. In tourism, eco and halal tourism are showing considerable potential, with IMT-GT advancing cross-border tourism under Vision 2036 and BIMP-EAGA promoting ecotourism and multi-country tourism circuits through key natural sites like the Heart of Borneo and the Sulu-Sulawesi Marine Ecoregion.
In agrobusiness, IMT-GT has emerged as a leader in agro-processing for palm oil and rubber, while BIMP-EAGA positions itself as ASEAN’s food basket, producing commodities such as shrimp, rice and seaweed. Both initiatives offer synergies in the halal food industry.
The sub-regions are also driving ASEAN’s clean energy transition. Mohd Sedek highlighted the potential of geothermal energy in Kalimantan, as well as ocean energy and biodiesel, noting that these efforts are vital in the face of rising energy costs and could benefit neighbouring ASEAN states.
Manufacturing in export-oriented SEZs — such as Medan, Sei Mangkei and Lhokseumawe — is supporting structural reforms and deeper integration into regional supply chains.
“These initiatives are strategic instruments for narrowing development gaps and improving spatial equity. They address economic disparities that the AEC alone cannot fully resolve,” he noted.
As evidence of their impact, Mohd Sedek pointed to the Penang-Medan economic corridor under IMT-GT, which facilitated US$4.2 billion (RM17.8 billion) in trade in 2024. Additionally, Malaysia-Thailand cross-border infrastructure projects have significantly improved regional connectivity.
Under BIMP-EAGA’s Vision 2025, infrastructure investments have reached US$2.8 billion (RM11.87 billion), supporting key upgrades to ports in Davao and Bitung. These projects contribute to regional resilience and align with the Master Plan on ASEAN Connectivity 2025.
Beyond infrastructure, both initiatives have made notable progress in strengthening local economies. The Southern Economic Corridor in Thailand, backed by IMT-GT, generated over 15,000 jobs in 2023 through projects that attract foreign investors and integrate entrepreneurs into broader supply chains. These efforts also support sectoral linkages in agriculture, energy and tourism.
Mohd Sedek concluded that the project-driven, bottom-up nature of IMT-GT and BIMP-EAGA serves as a decentralised complement to ASEAN’s top-down integration strategy.
“By reinforcing trade linkages, building human capital and enhancing cross-border governance, these sub-regional initiatives help ASEAN mitigate global supply chain risks and chart a resilient, inclusive and sustainable growth path for the region,” he said.
-Bernama
