Special Border Economic Zones as tools for regional development and cooperation: Thai-Malay border (Indonesia-Malaysia-Thailand Growth Triangle)
Alfredo Perdiguero Asian Development Bank SEZs as Catalysts for Economic Corridors, Value Chains and Production Networks Training Shanghai, People’s Republic of China 18 October 2016 • Are SBEZs different than SEZ?
• Criteria to decide where to establish an SBEZ
• Case study: Malaysia-Thai Border SBEZ SEZ SBEZ • Geographically • Geographic location delimited area nearby international • Single management border and administration • Opportunities from • Special incentives and differences in factors benefits for companies (labor, capital, land) and in zone resource endowments, • Separate customs area between the two countries • Requires collaboration between two countries (legal/institutional) 3
Level 1 Level 2 Level 3
SBEZ SBEZ
National Boundaries Level 1 Level 2 Level 3 SBEZ facilities Informal SBEZ Joint SBEZ on either or collaboration facilities and both sides of cross-border supporting the border VCs and activities infrastructures
Corridor System
Thai-Malaysia 5 1 Border
2 1
4
LEGEND: 3 1 - Extended Songkhla-Penang-Medan Corridor 2 - Straits of Malacca Corridor 3 - Banda Aceh-Medan-Pekanbaru-Palembang Corridor 4 - Melaka-Dumai Corridor Thai-Malaysian 5 - Ranong-Phuklet Ace Corridor Railway Systems Malaysia: East Coast Thailand’s Economic Region Southern (ECER) Masterplan Region Development
Plan ECER SEZ: Integrated Logistics & Industrial Hub in Kuantan Port City
Malaysia: Northern Corridor Economic Region (NCER) Border Area
Satun, 296,105 Narathiwat, 789,396
Songkhla, 1,478,618 2 Yala, 1 3 4 494,011 8 7 5 6
Perlis 227,025 Kelantan 1,459,994 Kedah 1,890,098
Perak 2,258,428 • Attract foreign and domestic investment; transfer know how and technology • Enhance social and economic development in border areas • Generate employment in area and develop skills of local population • Support cross-border trade and investment (along economic corridors) • Serve as “demonstration area” to transition to subregional and regional integration
ASSESSMENT RESULTS
Wang Padang Sadao Ban Ban Su Ngai Prachan Besar - Bukit Prakob - Betong - Buketa Kolok - Takbai - - Wang (Songkhl Kayu Durian Pengkalan - Bukit Rantau Pengkala Kelian a & Perlis) Hitam Burung Hulu Bunga Panjang n Kubur
Special Economic Zone 3.5 2.5 4.0 5.0 3.0 2.5 4.0 3.0 Value Chains 3.0 4.5 4.5 5.0 3.0 2.5 4.5 3.0 Transport & Logistics 2.0 2.5 2.5 4.0 3.0 3.0 3.0 1.5 Socio-Econ Development 4.0 2.0 2.0 3.0 3.5 3.0 4.5 3.0 SME Development & BDS 3.5 3.0 3.0 3.5 3.0 2.5 5.0 3.5 Linkages to Indonesia 2.0 3.5 5.0 4.5 2.5 2.0 4.0 2.5
Mean Average 3.0 3.0 3.5 4.2 3.0 2.6 4.2 2.8 Takbai - Pengkalan Kubur
Su Ngai Kolok - Rantau Panjang
Ban Buketa - Bukit Bunga
Betong - Pengkalan Hulu
Ban Prakob - Durian Burung
Sadao - Bukit Kayu Hitam
Padang Besar (Songkhla & Perlis)
Wang Prachan - Wang Kelian
- 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 Special Economic Zone Value Chains Transport & Logistics Socio-Econ Development SME Development & BDS Linkages to Indonesia Commercial Focus Welfare Focus
Su Ngai Kolok - Ban Prakob - Durian Rantau Panjang Burung Ban Prakob - Su Ngai Kolok - Rantau Durian Burung Panjang Sadao - Bukit Kayu Sadao - Bukit Kayu Hitam Hitam Padang Besar Padang Besar (Songkhla (Songkhla & Perlis) & Perlis) Betong - Pengkalan Wang Prachan - Wang Hulu Kelian
Wang Prachan - Betong - Pengkalan Hulu Wang Kelian Takbai - Pengkalan Takbai - Pengkalan Kubur Kubur Ban Buketa - Bukit Ban Buketa - Bukit Bunga Bunga
0 1 2 3 4 0 1 2 3 4 5