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40Th MTJA Book 40 YEARS OF SHARED PROSPERITY Malaysia-Thailand Joint Authority 40 YEARS OF SHARED PROSPERITY Malaysia-Thailand Joint Authority Published by the Malaysia-Thailand Joint Authority Suite 06-01, 6th Floor, Menara See Hoy Chan 374, Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia Tel: 603-2172 2222 4 Foreword 10 40 YEARS OF SHARED PROSPERITY 22 COMING TOGETHER... HOW IT BEGAN 40 WORKING TOGETHER… FOR MUTUAL BENEFIT 58 STAYING TOGETHER… Copyright © Malaysia-Thailand Joint Authority A SUCCESSFUL PARTNERSHIP ISBN 978-967-11578-1-7 76 DIRECT IMPACT... All rights reserved. No part of this publication may be reproduced, stored or transmitted in any form or by any means — electronic, mechanical, by COMMUNITY COUNTS photography, photocopying or recording or any other information retrieval system — without the prior permission in writing from the publisher. 92 Acknowledgements Design & Production: CAPITAL CORPORATE COMMUNICATIONS SDN BHD Printing: VIVAR PRINTING SDN BHD The Miracle of Collaboration ich gas deposits were discovered in the Gulf of Thailand The MTJA organisational structure has at its apex two Co-chairpersons. remotely as well. In this commemorative book we recognise the in the 1960s. Neighbours, Malaysia and Thailand had to Both equal; occupying a position of primus inter pares (first among work they do and the benefits each one brings. Unified teamwork navigate a new socio-economic landscape; one that would equals). It is therefore an organisational practice between the Co- has resulted in the MTJA contributing USD10 Billion to the coffers of call into review centuries-old cultural, historical and social chairs to reach a joint position on all matters relating to the effective both Thailand and Malaysia. ties. We were faced with choices. We could either fight functioning of this Joint Authority. When board papers are prepared, over it or we could collaborate for the mutual enrichment of both the Co-chairs hold a four-eyed meeting before the formal board I would also like to put on record our gratitude for the cooperation Rcountries. meeting. We strategise together, assess risks, reach a consensus extended by all government representatives, MTJA management and hold a joint position on important matters. We then allow for and support staff who have been part and parcel of the MTJA We chose to build on the friendship we shared and work amicably the directors to offer expert opinions and advice in discussions that organisation over these past 40 years. We place a high value on the together. We put in place the framework of a grand plan that follow that will help us make more accurate decisions. kind of collaboration exhibited within the MTJA that exceeds the sum outlined the areas where each country would prospect for gas. The total of what can be calculated in only profits. mechanisms for the management of this precious resource were Today, sustainable development has emerged as one of the most agreed upon. Finally, the legislation required for the exploitation and important concerns of the 21st century. Gas is being seen as not Going forward we have reminded both our governments that this production of sizeable gas deposits was carefully drafted. A special merely a transition product but a destination fuel of the future. Most collaboration could extend beyond 2029. Gas deposits have been purpose ‘vehicle’ was built by the governments of Malaysia and of the gas produced at the JDA is bought for use by Malaysia and discovered further afield and we look forward to perhaps welcoming Thailand that would take us to 2029. Thailand for domestic consumption. We see ourselves as part of other members within the ASEAN group into the MTJA fold. At MTJA the global community that is engaged in a renewable energy shift. we implicitly understand that collaboration is better than competition. On 21 February 1979, a Memorandum of Understanding was signed We have established a research cess and the production sharing We believe in the miracles that can occur through collaboration. and a unique organisation called the Malaysia-Thailand Joint Authority contractors contribute to this fund. Several research projects (MTJA) was born. Since then this Joint Authority has nourished both supported by MTJA look at energy efficiency and the reduction of We have chosen as our front cover design of this commemorative our economies. More importantly we have been able to strengthen carbon emissions, waste heat energy recovery and green solutions book a stylised version of the Thai Kranok and the Malay Pucuk the ties that bind us in ways that offer many key lessons in building for drilling fluids. Rebong. Both are powerful symbols of harmony and peace. We bilateral relationships that are steadfast and enduring. find them fitting icons, reflecting 40 years of collaboration that has I would like to think what we have created within MTJA is an inspiring strengthened both our countries. Personally, I have found it fulfilling to watch both Thais and Malaysians synchronicity. We seek to achieve the best possible outcomes at every within MTJA unify around a common vision. I think we have a history stage of our development. We have several employees, vendors, of finding innovative and solution-oriented ways to bring people consultants, production sharing contractors and other stakeholders together. Thus the story told in this book of “brothers drinking from working in our offices in Thailand and Malaysia, but many work the same well” truly resonates among so many people in the MTJA family. Tan Sri Dr Rahamat Bivi Yusoff Co-chairperson (Malaysia) of Malaysia-Thailand Joint Authority 40 YEARS OF SHARED PROSPERITY 40 YEARS OF SHARED PROSPERITY 4 5 A Blossoming Malaysia-Thailand Friendship here is a strong sense of permanence about the relationship The impacts of climate change are already evident around the resembles close family ties. I believe in the idea of “Happy thy between Malaysia and Thailand. We are inextricably linked; world. As part of the Mekong River Basin, Thailand is dealing with neighbour.” If our neighbour is happy, we are happy too. Should by history, by culture and by friendship. Over the years these ecological impacts by leveraging strongly on natural gas there ever be a misunderstanding, we talk things through and get it there have been many reasons for the relationship between made available to us from the Joint Development Authority Area resolved. the two countries to grow. (JDA). Thailand has used this clean source of fuel for all its energy production needs. As Co-chairman of MTJA, I work closely with my counterpart Tan Sri TWe saw immense benefits in being partners rather than competitors. Dr Rahamat Bivi Yusoff. We are guided by what is scoped out in the Most significantly, we became founding members of ASEAN. The Globally, natural gas is the fuel of choice to power economic MTJA Agreement of 1990 and outlined in the earlier MoU of 1979. ASEAN relationship has had a ripple effect across all social, cultural growth. Thailand is deeply committed to it as it is a cleaner burning We will continue to work in the same spirit of friendship, trust and and economic sectors. And I am happy to note that both our countries fuel than coal and oil and it emits less CO2 into the atmosphere. cooperation in the years to come. have prospered from this. Besides, gas is more abundant than oil. At MTJA, we will continue to support the exploration and development of natural gas resources In the past 60 years or so, Thailand has proven to be a true and reliable in the JDA for energy security as well as the economic prosperity of friend of Malaysia. I am delighted to share here that the Malaysia- our two nations. Thailand relationship is multi-dimensional and multi-layered, based strongly on mutual respect and trust. With the advent of social media This 40th anniversary celebration demonstrates how we have built HE Dr Kurujit Nakornthap and the convenience of travel, our relationship is poised to blossom and sustained the Malaysia-Thailand friendship. The relationship has Co-chairman (Thailand) of Malaysia-Thailand Joint Authority with trade and people-to-people contacts becoming more exciting strengthened over the years. We like to think that this relationship and dynamic. 40 YEARS OF SHARED PROSPERITY 40 YEARS OF SHARED PROSPERITY 6 7 40 YEARS OF SHARED PROSPERITY 40 YEARS OF SHARED PROSPERITY 8 9 40 YEARS OF SHARED PROSPERITY “It has been a wonderful journey to have reached 40 years of exceptional success in building a mutually beneficial relationship between two neighbouring nations. It took years of hard work and inspiring leadership to cultivate the trust and strong bond that we are Two countries have come together, worked together and proud of today. Heartiest congratulations to MTJA for a job well done.” stayed united over the past 40 years in the true spirit of ZULKARNAIN ISMAIL SENIOR GENERAL MANAGER JVM – MALAYSIA ASSETS, PC JDA “brothers drinking from1 the same well.” Nothing happens by chance. The Malaysia-Thailand collaboration was a deliberate decision to find common ground on which to build a meaningful partnership at several levels. At the government-to-government level, the prospect of a Malaysia-Thailand Joint Authority required respectful trust between the partners. This meant looking at ways and means to build an enduring relationship. A series of framework agreements was needed for transboundary sharing of hydrocarbon resources, fiscal regimes, fair distribution and capacity development. Rather than taking a hard bureaucratic and legalistic route, key persons within the MTJA achieved this by simply spending time together, listening to each other’s concerns, interests, needs, and then incorporating them into the larger MTJA agenda. Negotiation and discussion were vital to this process. As trust grew between the partners, it was found that each partner was more willing to make temporary concessions to promote a long-term collaborative relationship.
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