SUB-regional initiatives such as the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) and the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) have matured into strategic platforms supporting ASEAN’s broader integration agenda, particularly the ASEAN Economic Community (AEC), while addressing developmental disparities across the region.
According to UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research, Mohd Sedek Jantan, these initiatives operate in alignment with ASEAN’s inclusive growth aspirations, specifically targeting underdeveloped and geographically marginalised regions.
“The IMT-GT hugs the Strait of Malacca, one of the world’s busiest trade routes, while the BIMP-EAGA sits along the Sulu and Sulawesi Seas, a gateway for maritime connectivity, making them natural nodes for boosting trade, investment and connectivity across ASEAN and beyond,” Bernama cited him saying.
“These are not just random patches of land. Their strength lies in their focus on what economists call ‘spatial economics’ — targeting lagging regions with tailored interventions,” he told Bernama.
He added that IMT-GT has focused on agro-processing and tourism by leveraging complementarities among southern Thailand, northern Peninsular Malaysia and Sumatra. BIMP-EAGA, meanwhile, has built on strengths in fisheries, renewable energy and ecotourism.
“This is not a one-size-fits-all approach; it is about leveraging local advantages to plug into regional and global value chains,” he noted.
Both IMT-GT and BIMP-EAGA have prioritised the development of Special Economic Zones (SEZs) — strategically located areas offering investment incentives, streamlined regulations and infrastructure to attract industrial growth and employment.
Within IMT-GT, locations such as Medan, Bukit Kayu Hitam and Sei Mangkei have seen significant progress, while BIMP-EAGA now boasts over 60 SEZs, stretching from Bitung in Indonesia to Zamboanga in the Philippines.
“These zones are not just factories — they are engines of structural transformation, fostering ‘agglomeration economies’ — clusters where businesses, workers and infrastructure feed off each other to drive growth,” said Mohd Sedek.
“By linking these SEZs to cross-border trade and investment, IMT-GT and BIMP-EAGA are building bridges to ASEAN’s broader economic cohesion.”
Winning Sectors Across the Sub-Regions
Mohd Sedek pointed to tourism, agrobusiness, renewable energy and manufacturing as sectors where IMT-GT and BIMP-EAGA are well-positioned to deliver value.
Tourism, particularly halal and ecotourism, remains a high-impact sector. IMT-GT is promoting cross-border tourism under its Vision 2036, while BIMP-EAGA is advancing community-based tourism aligned with ASEAN standards, including strategic attractions such as the Heart of Borneo and the Sulu-Sulawesi Marine Ecoregion.
He also noted the development of integrated agricultural value chains — with IMT-GT strong in palm oil and rubber processing and BIMP-EAGA emerging as ASEAN’s food basket for products such as shrimp, seaweed and rice. Halal food production has also benefited from this sub-regional synergy.
Highlighting renewable energy opportunities, he pointed to geothermal prospects in Kalimantan, as well as ocean energy and biodiesel, noting that a shift towards cleaner energy is crucial in response to rising energy costs across the region.
Manufacturing, especially within export-driven SEZs such as Medan, Sei Mangkei and Lhokseumawe, is also transforming the regional economic landscape by deepening integration into global value chains.
Driving ASEAN Forward
IMT-GT and BIMP-EAGA have become vital mechanisms for reducing development gaps and enhancing spatial equity within ASEAN, said Mohd Sedek.
He cited the Penang-Medan economic corridor, which generated US\$4.2 billion (RM17.8 billion) in trade in 2024, and Malaysia-Thailand cross-border infrastructure as examples of enhanced connectivity under IMT-GT.
Similarly, BIMP-EAGA’s Vision 2025 has catalysed US\$2.8 billion (RM11.87 billion) in infrastructure investments, including major upgrades to Davao and Bitung ports, in line with ASEAN’s Master Plan on Connectivity 2025.
In southern Thailand, projects under the Southern Economic Corridor — supported through IMT-GT — generated over 15,000 jobs in 2023, highlighting how SEZs can draw foreign investment, strengthen value chains and support sectoral synergy across agriculture, tourism and energy.
Their decentralised, bottom-up, project-driven approach is viewed as a strategic complement to ASEAN’s top-down institutional mechanisms.
“By reinforcing trade linkages, fostering human capital development and enhancing cross-border governance, IMT-GT and BIMP-EAGA help ASEAN hedge against global supply chain risks and advance a more resilient, balanced and people-centric regional growth trajectory,” said Mohd Sedek. - June 8, 2025
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