Ibrahim, Fatimah Wati and Ahmad Samidi, Munzarina and Hassan, Sallahuddin and Abdul Karim, Noor Al-Huda
Awareness of private sector of the IMT-GT concept: Benefits and problems.
Analisis, 9 (1&2).
This paper focuses on the private sector awareness of the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT)concept, the benefits that can be gained as well as the problems encountered in the economic cooperation of the area. Analysis was done using data collected from a survey of 157 private companies located in the three countries sub-regions. The survey was conducted in 1997. The results of the study show that 78.9 percent of the total respondents are aware of the existence of the IMT-GT concept. However, out of the total respondents who are aware, 29 percent are still unclear about its purpose. In terms of the companies' participation in the form of business venture in the subregions, the survey found that only 10.2 percent of the respondents are involved. Of those companies which formed this type of business after the establishment of the IMT-GT, the finding reveals that they faced problems of wage rate and regulation, each with 43.8 percent; language and culture as well as market potential, each with 31.2 percent; and bureaucratic and intra-structural problems, each with 18.8 percent. In fact, there are many potential opportunities available within the IMT-GT sub-regions that are in line with the Asian Development Bank (ADB) report. The trade and tourism projects are among those opportunities that have great potential in the triangle cooperation. This study, shows that the existing problems and constraints faced by private companies involved in the IMT-GT area have to be tackled seriously if the objectives of the regional cooperation is to be fulfilled.
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