REPORT OF THE 13th IMT-GT STRATEGIC PLANNING MEETING 5 – 7 FEBRUARY 2020 BANGKOK,

INTRODUCTION

1. The 13th IMT-GT Strategic Planning Meeting (SPM) was held in Bangkok, Thailand on 5-7 February 2020. The Meeting was attended by IMT-GT National Secretariats (NSs), Centre of IMT-GT Sub-Regional Cooperation (CIMT), representatives of the Sectoral Working Groups (WGs), Chief Minister and Governor Forum (CMGF) and Joint Business Council (JBC). The IMT-GT Senior Officials meeting was held on 7 February 2020.

The full list of delegation appears as Annex I.

AGENDA 1: WELCOMING REMARKS BY THE HOST

2. Hon. Mr. Danucha Pichayanan, Deputy Secretary General Office of the National Economic and Social Development Council (NESDC), Chair of the 13th IMT-GT Strategic Planning Meeting welcomed all delegation to Bangkok. He expressed his commitment to work hand- in-hand with all IMT-GT entities to reach the maximum achievement. The mid-term review 2017-2021 is one of the vital issues to be emphasized during the SPM as directed by the Leaders and Ministers. To fulfil the directives, the 13th SPM is very timely to provide opportunity for IMT-GT Working Groups, Sub Working Groups, JBC and UNINET to discuss and review the Implementation Blueprint and to plan the new action ahead. He reiterated that Leaders and Ministers underscored several important issues, including; completion of PCP projects, finalisation of Framework of Cooperation on CIQ, strengthening rubber cities and the establishment of Working Group on Environment. In response to sustainability and climate change, IMT-GT is encouraged to realise the establishment of Working Group on Environment. He requested all member countries to identify and assign ministries/institutions to take the role in the working group. 3. Mrs. Netty Muharni, Assistant Deputy Minister for Regional and Sub-Regional Economic Cooperation, Coordinating Ministry for Economic Affairs, National Secretariat of Indonesia expressed her gratitude to NESDC and Kingdom of Thailand for the warm hospitality and appreciation to CIMT for preparing all needed documents to be discussed during the SPM. She highlighted President of Indonesia’s statement in the 12th IMT-GT Summit, that IMT-GT Cooperation has contributed in developing economic in the subregion. However, the collaboration needs to be advanced by developing the subregion’s main strength in palm oil, rubber, cruise, and halal sectors. She highlighted the importance of local governments and

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private sector in the cooperation and tasked Working Groups (WG) and Sub-Working Groups (SWG) to utilize the meeting to develop projects for the benefit of wider community. She mentioned several pending matters that need to be expedited such as Framework of Cooperation on CIQ, and operationalisation of RoRo Dumai Melaka. She highlighted the needs for the Focus Group on Environment to be upgraded to Working Group level. She also stated on the necessity of Midterm Review to ensure that IB is still relevant and respond to current challenging issues of global economy. 4. Dr. Suhana bt. Md. Saleh, Director of Strategic Planning and International Cooperation Division, Ministry of Economic Affairs, National Secretariat of , conveyed her appreciation to NESDC as the host for the 13th SPM. She conveyed the importance of SPM to accelerate the implementation of the programmes/projects and to review the achievement of each of focus areas in the sub-regional cooperation. She emphasised on the need to all sectors to improve its role, coordinate and implement the programme/projects to achieve IMT-GT Vision 2036. Leaders and Ministers through the Summit and Ministerial Meetings have tasked Senior Officials to set the clear target for sub-regional cooperation. She highlighted on the review of Implementation Blueprint 2017-2021 (IB2017-2021), maximisation of the utilisation of the MoU signed under the sub-regional cooperation to promote trade and digital literacy that act as enabler to accelerate the development in subregion. She hoped that the WGs take full advantage on the SPM and looked forward to the delivery of the programmes/projects created. 5. Mr. Firdaus Dahlan, Director of Centre for IMT-GT Subregional Cooperation (CIMT) welcomed all delegates to the meeting and expressed his appreciation to NESDC for hosting the meeting and kind hospitality extended to all delegation. He stated three main objectives of the 13th SPM as follows: (i) update on the progress of projects; (ii) discuss on potential new project proposal; and (iii) formulate new cooperation in the spirit to accelerate the IB2017-2021. He reported that 13th SPM recorded big participations from member countries with 120 participants registered from Thailand, 47 participants from Indonesia and 20 participants from Malaysia. During the meeting, WGs, SWGs and all participants are expected. He reported that under the Implementation Blueprint 2017-2021, there are 57% ongoing projects, 20% completed and 23% delisted. Coming to near end of IB2017-2021 in 2021, he hoped with the strong commitment of member countries, IMT-GT may achieve the target. Outcome: The meeting took note of the remarks by member states, and expressed appreciation and support to all stakeholders including WGs, CMGF, JBC, and UNINET to accelerate the implementation of programmes / projects toward the targets of IB 2017 – 2021.

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AGENDA 2: BRIEFING ON THE 13TH IMT-GT SPM

6. Mr. Firdaus Dahlan, CIMT Director, briefed the Meeting on the objectives of 13th IMT-GT Strategic Planning Meeting and the plan of two-day breakout session for WGs, SWGs, JBC and CMGF as well as the convergence meetings in the second day.

The presentation appears as Annex II.

7. In response to the presentation, the Meeting took note of the following comments and suggestions:

a) Hon. Mr. Danucha Pichayanan mentioned to utilize SPM in identifying the obstacles that hinder the projects/programmes under IB2017-2021 and finding the solutions for better execution.

b) Mrs. Netty emphasized on the need of WGs to assure the action plans are aligned to expedite the implementation of IB2017-2021. WGs also need to revisit the mechanism on proposing new projects/programmes and assure that the proposal agreed to be translated into a concrete programme. She also highlighted the importance of WGs and SWGs to synergise their plans to support the Economic Corridor.

c) Dr. Suhana commented that the convergence meetings need to have clear instructions to facilitate the discussion among working groups. CIMT is tasked to give clear timeline and to look into the convergence meeting topics to cover the cross- cutting issues.

Outcome: The meeting took note of the presentation of the Director of CIMT on the objectives and expectation of SPM. It was requested that all stakeholders to take advantage of the meeting, identify obstacles faced in the implementation of projects/programmes, and encourage them to find out ways for better execution. The meeting encouraged stakeholders to conduct more convergence meeting on crossed-cutting issues for better coordination and impact of the projects / programmes’ completion to the economic development in the subregion. The meeting also requested CIMT to set timeline and look into crossed-cutting issues of the convergence meetings.

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AGENDA 3: OVERVIEW OF THE IMT-GT IMPLEMENTATION BLUEPRINT 2017-2021 (IB2017- 2021) MID-TERM REVIEW (MTR) 8. Mr. Firdaus Dahlan, CIMT Director, explained that Mid-term Review of IB2017-2021 is one of the leaders' directive at the 12th IMT-GT Summit in 2019, in Bangkok, Thailand. The result of the review is necessary to seek new development opportunities as well as to respond to the emerging challenges, and to review the relevancy of the IB with the current situation. CIMT as the secretariat for IMT-GT has conducted in-house review in response to the directive.

9. Ms. Wariya Pisuchpen, CIMT Deputy Director, briefed the meeting on the current scenario of IB implementation and initial findings. The current projects/programmes listed under IB2017-2021 are 107 in total. CIMT has prepared template and questions related to the strategies of focus area, project-fit, implementation status and issues/challenges faced by WGs and SWGs in implementing IB2017-2021. CIMT requested the WGs and SWGs to complete the template prepared and submit the feedback at the end of day 2 of the SPM. CIMT summarised the comments and inputs from the WGs and SWGs and presented it on the third day of SPM.

The presentation appears as Annex III.

10. In response to the presentation, the Meeting took note of the following comments and suggestions:

a) Hon. Mr. Danucha Pichayanan encouraged WGs and SWGs to provide the updated data and information with regards to the review of IB 2017 – 2020 as well as to provide possible solutions that hinder the implementation.

b) Dr. Suhana highlighted the importance to set up Project Monitoring System that may link the projects to CIMT directly, to ease the monitoring system, for instance the application of online system to replace the offline template which is currently used. Malaysia also urged WGs and SWGs to not only proposing new projects but also maintaining the sustainability and continuity of projects proposed in the previous meeting. The subregional-based projects were encouraged to be conducted more, in the response of CIMT’s finding that many projects submitted were national-based projects.

c) Mrs Netty suggested to incorporate the report of Asian Development Bank Study on the “Review of the existing five IMT-GT economic corridors”, and the “Study on Collaborative approach to SEZ development and cooperation in IMT-GT and BIMP-

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EAGA” into Midterm Review of IB2017-2021. A clearer guidelines to conduct review is needed, in order to guide the WGs and SWGs in reviewing their projects/programmes.

Outcome: The meeting took note of the presentation of the Director of CIMT on the overview of IMT-GT Implementation Blueprint (IB) 2017 – 2021 Mid-term-review (MTR) and initial findings on the current status projects / programmes. The meeting requested working groups and sub-working groups to provide required information for the IB mid-term review. CIMT was requested to explore project monitoring system (PMS) to replace the current off- line template to ease monitoring system for projects/programmes. The meeting also recommended CIMT to utilize ADB reports on: Framework study to review the existing five IMT-GT corridors; and The proposed 6th Corridor and Study on Collaborative approach to SEZ development and cooperation in IMT-GT and BIMP EAGA “ to finalize and enrich IB mid- term review.

AGENDA 4: BREAKOUT DISCUSSION Working groups and Sub-working groups, CMGF, JBC, UNINET facilitated by CIMT had parallel meetings to discuss the progress of projects / programmes implementation IB 2017 -2021.

Outcome: The meeting requested WGs, SWGs, CMGF, JBC, and UNINET to discuss the progress of the IB2017-2021 and provide input for the review of IB2017-2021. The meeting encouraged WGs and SWGs to propose new projects/activities to be included in IB2017-2021, The meeting requested WGs, SWGs, CMGF, JBC, and UNINET to present the outcome of the discussion on the third day of the SPM, and update calendar of events.

AGENDA 5: OPENING REMARKS BY SENIOR OFFICIALS ON 7TH FEBRUARY 2020

11. Hon. Mr. Danucha Pichayanan, Deputy Secretary General Office of the National Economic and Social Development Council (NESDC), Senior Official of IMT-GT Thailand, Chair of the 13th IMT-GT Strategic Planning Meeting welcomed all delegations to the meeting, in Bangkok, Thailand. He expressed Thailand’s commitment in mobilizing the leaders and ministers’ directive to accelerate the integration within the sub-region. IMT-GT has strength in many aspects but need to be expedite, for example the Priority Connectivity Projects (PCPs). The cooperation also needs to consider change of global trend which involves the environmental issue, climate change, and the 4th Industrial Revolution. He also appreciated CIMT to arrange the convergence meeting to address the cross-cutting issues.

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12. Hon Mr. Bobby Hamzar Rafinus, Senior Advisor for Regional Development Coordinating Ministry of Economic Affairs Indonesia, Indonesia Senior Official of IMT-GT mentioned that entering the fourth year of IB2017-2021, the subregional cooperation has achieved numerous achievements despite the presence of several obstacles that still need to be addressed. He emphasized on the need to determine strategies and indicators that are measurable and achievable as outlined in IB20187-2021.

13. Hon Dr. Suhana Md. Saleh, Director of Strategic Planning and International Cooperation Division, Ministry of Economic Affairs, representing Senior Official of IMT-GT Malaysia, expressed her sincere appreciation to the Kingdom of Thailand for hosting the 13th IMT-GT SPM. During the two-day meeting, the WGs have discussed issues and challenges to expedite the implementation of the projects under IB2017-2021. She also appreciated initiatives developed during the meetings which are beneficial for IMT-GT cooperation to move forward.

14. Ms. Rhodora Concepcion, on behalf of Mr. Alfredo Perdiguero, Director Regional Cooperation and Operations Coordination, Asian Development Bank, apologised for his absence due to the global disease situation. Nevertheless, ADB will join the session through Skype and deliver the presentation to the Meeting.

Outcome: The meeting took note of remarks by member countries, CIMT and development partner ADB, and expressed its appreciation for numerous projects completion. The meeting reiterated its support for projects/programmes implementation of IB 2017 – 2021. The meeting requested stakeholders to expedite the completion of the projects/programmes to meet timeline as stipulated in IB 2017-2021.

Agenda 6: WORKING GROUP REPORTS 15. Below were the presentations of WGs, JBC and CMGF to the Senior Officials:

WG on Agriculture and Agro-Based Industry (WGAA)

16. Mr. Endy Ghafur Fadyl, Minister Counsellor/Head of Chancery of Economic Affairs, Permanent Mission of Republic of Indonesia for ASEAN, represented the Chair of WGAA presented the report of WG to the Meeting. On the Review of IB2017-2021, the WG agreed with six (6) crops: (i) pineapple; (ii) coconut; (iii) herbs; (iv) coffee; (v) durian; and (v) paddy for indicator 1: Agriculture product value-added categories. The WG proposed to conduct a project on herbs and requested IMT-GT University Network (UNINET) to share best practices on the success of superfruits project to the Member Countries. The WG also added new

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indicator for Objective 3: Agriculture production is responsive to market demand. The WG will share market information on agriculture products and propose to link it with CIMT website.

17. The WG also agreed to drop Objective 4: Freer flow of agriculture products regionally and globally supported by harmonisation of trade regulation. He raised on the issues and challenges in the implementation of IB2017-2021. The challenges and issues are the limited budget for project implementation, unavailability of data at IMT-GT area, proposed to include Ministry of Ocean and Fisheries and to have one dedicated personnel for each WG for better coordination and keeping track with the progress.

18. The current WGAA projects are: a) Development of Surathred Goat Breed; b) Genetic Diversity of Surathred Goat; c) Regional Training for Agriculture Young Farmers in the Framework of IMT-GT; d) Increasing Asian Seabass Productivity by Promoting the Utilisation of Genetic Improvement Seed-a-Field Trial; and e) Development of Agro-Eco-Friendly Agriculture through Adoption of Appropriate Technologies.

19. WGAA proposed four (4) new projects namely: a) Smart Farm Technology Smart Choice of Young Farmer; b) Empowerment of Grain Corn Producers in Combating Major Pests in Corn Production; c) IMT-GT Network for Animal Production and Biotechnology Development of Livestock and Beef Cattle 2019-2021; and d) Innovative Rural Flagship Products Development Seminar Improving Agro-Based Products Packaging to Enhance Market Penetration.

20. Two (2) other projects, namely: (i) Development of Sriwichai Beef Cattle Industry and (ii) Development of Kwala Bekala Technobiz Park for Strengthening Cooperation in Education and Training among IMT-GT Members are still under consideration and required further discussion.

21. WGAA also conducted two (2) convergence meeting with UNINET on the superfruits project and WG on Trade and Investment Facilitation (WGTI) on IMT-GT Rubber Cities. WGAA Thailand requested additional time to conduct internal coordination to discuss on the Terms of Reference and nomination for Project Implementation Team (PIT) for IMT-GT Rubber Cities collaboration. The 13th WGAA meeting will be tentatively conducted on 11-12 August 2020 in Lampung, Indonesia.

The presentation appears as Annex IV.

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22. In response to the presentation, the Meeting took note of the following comments and suggestions:

a) Hon. Mr. Danucha Pichayanan, Deputy Secretary General Office of the National Economic and Social Development Council (NESDC), Thailand expressed his support to the Superfruits project and he agreed on the proposal to focus on herbs farming as this could be niche area to bring IMT-GT in the international market presence. He took note on the improvement in the WGAA’s indicators challenges that is faced by the WG for efficient coordination.

b) Hon Mr. Bobby Hamzar Rafinus, Senior Advisor for Regional Development Coordinating Ministry of Economic Affairs Indonesia, Indonesia Senior Official of IMT-GT, mentioned the importance of agriculture sector in this subregion and to develop effective mechanism for cross-cutting issues such as in the area of rubber cities by utilising existing structure such as IMT-GT University Network (UNINET) and IMT-GT Joint Business Council (JBC). He proposed for the WGAA to explore the possibilities to look into the area of fisheries as ADB has provided significant amount of funding for Ocean Health which was announced during the 25th IMT-GT Ministerial Meeting.

c) Hon Dr. Suhana Md. Saleh, Director of Strategic Planning and International Cooperation Division, Ministry of Economic Affairs, took note on the challenges faced by the WGAA and highlighted on the importance of agriculture to deal with the food security issue. She took note on the proposal of the WGAA to drop Objective 4 and congratulated the WGAA on the success in organising the 1st IMT-GT Regional Training for Agriculture Young Farmers in the Framework of IMT-GT in 2019, in Thailand.

Working Group on Tourism (WGT)

23. Mrs. Patthanasiri Salyasiri Ewtoksan, the head of Working Group on Tourism, presented the report of Working Group to the Meeting. WGT conducted five (5) projects namely: (i) IMT- GT Cruise Business Forum which was held in Sabang, Indonesia from 17 – 18 October 2019; (ii) IMT-GT International Cheng Ho Festival and Seminar which were held in Melaka, Malaysia from 14 – 16 November 2019; (iii) IMT-GT International Peranakan Festival which was held in Melaka, Malaysia 17 November 2019; (iv) IMT-GT FLY and Rail Tourism Experience 2019 Mega FAM which was held on 17 November 2019; and (v) Production of booklet of ASEAN Heritage Trails to promote cultural heritage. One of the themes in the ASEAN Heritage Trails booklet is the Peranakan: A Colourful Culture.

24. WG also proposed eight (8) new projects to be undertaken in 2020-2021 namely: a) ASEAN/IMT-GT Eco-Tourism Business Planning Workshop;

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b) Development and promotion of Muslim Friendly Tourism Concept and Standard within the IMT-GT; c) The 2nd IMT-GT Tourism Forum; d) The IMTGT Peranakan; e) IMT-GT Cheng-Ho Seminar 2020; f) IMT-GT Sabang Yatch Seminar 2020; g) Development and promotion of IMT-GT Geoparks; h) IMT-GT East Coast of North Sumatera Cruise Business Forum 2020; i) IMT-GT Calendar Tourism Events 2020; j) IMT-GT Tourism Packages 2020/2021; and k) Tourism Student Exchange Programme on community.

25. The main issues and challenges of the WG is the inadequate data to measure IMT-GT tourism performance such as international arrivals in IMT-GT and average length of stay due to lack of data specifically for the subregion. The WG recommended to engage with the SWG ITITD to explore the possibility to obtain the required tourism data.

26. In the convergence meeting, the WG discussed on IMT-GT Visa, IMT-GT Cruise Tourism and IMT-GT Halal Tourism.

27. She reported that the WG agreed to drop the initiatives of IMT-GT Visa with following reasons namely: (i) Visa is not under the Ministry of Tourism authority to decide; (ii) insufficient data to support the needs to have common visa in IMT-GT Region; (iii) the mechanism to control the travellers who travel in IMT-GT region is yet to be established; (iv) the needs to explore ASEAN common visa as the test-bed before applying in the subregional level; and (v) the needs to review various aspects especially safety and security.

28. On IMT-GT Cruise Tourism, the WG noted on the importance of the development of cruise tourism in the subregion that need to be enhanced in terms of attractions and tourist destinations. She reported that the Meeting will look into the possibility to link cruise ports of call in IMT-GT subregion. Working Group on Transport and ICT Connectivity (WGTIC) proposed to conduct Port Community Dialogue back to back with 13th Working Group on Tourism Meeting in Thailand.

29. On Muslim Friendly Tourism, she reported that the WG agreed to use Muslim Friendly Tourism term instead of Halal Tourism. The meeting took note on the development of Halal Route applications developed by Halal Science Centre Chulalongkorn University. WGT is planning to conduct Focus Group Discussion (FGD) on Muslim Friendly Tourism tentatively in March 2020 in Malaysia with aims to discuss on the Terms of Reference, strategy and action plans on Muslim Friendly Tourism in the subregion. She invited WG on Halal Products and Services WGHAPAS) to attend the FGD.

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30. The 13th WG Tourism will be held tentatively in July 2020 in Hat Yai, Songkhla Province, Thailand.

The presentation appears as Annex V. 31. In response to the presentation, the Meeting took note of the following comments and suggestions: a) Hon. Mr. Danucha Pichayanan, Deputy Secretary General Office of the National Economic and Social Development Council (NESDC), supported the WG proposal to collect the data on the tourism to evaluate WG progress. He reiterated the decision made by the WG on not to pursue to establish IMT-GT Visa as it is beyond the capacity of the WG. He believed the tourism industry is an important tool for the economy of the subregion. He encouraged the WG to link tourism with local community as it may improve the condition of the local economy and prosperity to the subregion.

b) Hon Mr. Bobby Hamzar Rafinus, Senior Advisor for Regional Development Coordinating Ministry of Economic Affairs Indonesia, believed the tourism should reflect on the single destination. Tourism is also driven by private sector therefore WGT should also incorporate with JBC. He reminded that the convergence with other WG is important to create a single destination tourism; as for examples, convergence with WG Transport and WGHAPAS to resolve cross cutting issues in implementation of air linkages, cruise tourism, and halal tourism.

c) Hon Dr. Suhana Md. Saleh, Director of Strategic Planning and International Cooperation Division, Ministry of Economic Affairs, welcomed the initiative on the Muslim Friendly Travel proposed by the WG. She looked forward on the result of the 2nd convergence meeting on Muslim Friendly Travel. She encouraged the WG to put more collaboration in developing joint-tourism package 2020/2021 to promote single destination in IMT-GT Subregion.

Working Group on Halal and Product Services (WGHAPAS)

32. Dr Winai Dahlan as the Head of WGHAPAS, presented the report to the Meeting. On the review of IB2017-2021, WGHAPAS has achieved the indicator that was targeted in IB2017- 2021. WGHAPAS agreed to set the revised target from 3000 halal export oriented SMEs to at least 7000 Halal export-oriented SMEs in 2021, considering that the WG HAPAS has achieved the target to 4215 Halal export-oriented SMEs.

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33. Current WGHAPAS projects are as below: a) Gap Analysis Task Force; b) Development Halal Curriculum through EDU-Halal project; c) Exchange of Halal expertise through HKE; d) Enhance collaboration between Halal SMEs and LLCs/MNC; e) Promote Halal related trade promotional events through IMT-GT pavilion; f) Improve efficiency of Halal Certification process through the website based for Halal certification registration; g) Develop an online platform to integrate and disseminate information; h) Halal e-commerce project; i) Halal Blockchain; j) Halal Route; and k) Strategic Halal Industry Collaboration Task Force (SHICTF).

34. New projects agreed by the WGHAPAS are as follows: a) Collaboration with Islamic Development Bank (IsDB) to conduct capacity building on Halal Industry; and b) Development of Halal Ecosystem Development (HED) Framework for IMT-GT subregional 2021-2036.

35. Issues and challenges that were raised by the WG are as follows: a) There is a gap on the Halal Economy between the Members and the WG proposed to develop a framework on Halal Ecosystem Development (HED) to evaluate the performance. b) Although WGHAPAS has achieved the target of Strategy 2 and 3, the indicators could not be used to examine the gap between the member countries. WGHAPAS proposed to conduct training in Halal Best Practices in collaboration with IsDB to overcome this issue.

36. The presentation appears as Annex VI.

37. In response to the presentation, the Meeting took note of the following comments and suggestions:

a) Hon. Mr. Danucha Pichayanan, Deputy Secretary General Office of the National Economic and Social Development Council (NESDC), congratulated WG for their achievement and supported their proposal to set new indicators. He supported on the proposal to establish strategic collaboration for Halal industry task force. He urged JBC, CIMT and CMGF to work together with WGHAPAS in making halal industry as main catalyst for subregion.

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b) Hon Mr. Bobby Hamzar Rafinus, Senior Advisor for Regional Development Coordinating Ministry of Economic Affairs Indonesia, emphasized on the importance to utilise IMT-GT cooperation to promote active involvement and develop SMEs in Halal industry. He informed the Meeting that the 1st Halal industry Summit will be held on 1-2 Nov 2020 in Jakarta and invited other member countries to participate in exhibition to promote halal industry. A pavilion will be provided for IMT-GT to showcase halal products and services from IMT-GT.

c) Hon Dr. Suhana Md. Saleh, Director of Strategic Planning and International Cooperation Division, Ministry of Economic Affairs, supported the proposal to develop Halal Ecosystem Development Framework (HED). As for collaboration with IsDB, she believed the collaboration may harmonise Halal standard in subregion and that will contribute to halal industry at large and enhance investment and knowledge of the SMEs in Halal industry.

Working Group on Transport and ICT Connectivity (WGTIC)

38. Mr. Khairul Nizam Hashim, Principal Assistant Secretary, Ministry of Transport Malaysia, as the Chair for WGTIC presented on the of WG to the Meeting. He reported that the WGTIC had proposed to drop Indicator 1: Number of inter-state road transport operation and 2: Number of commercial vehicle carrying passenger on cross-border transport operation at the 10th WGTIC Meeting and 5.1: Kilometre of road and facilities added/upgraded within IMT-GT region, as it is overlap with Priority Connectivity Project reporting.

39. Issues and challenges faced by the WGTIC are: (i) funding to implement projects; (ii) security and safety concern regarding dangerous goods, health and environment; (iii) general alignment and coordination challenges between relevant authorities to promote cross border connectivity; (iv) encourage private sector participation in transport sector; and (v) lack of transport related studies to ensure the sustainability and balance implementation of all sectors. He reported that the WG proposed to strengthen close engagement with private sector, research institution and universities, international bodies such as International Maritime Organisation and International Civil Aviation Organisation, other public agencies and public to overcome some of the issues and challenges.

40. On the ratification of ASEAN Framework Agreement on the Facilitation of Inter-State Transport (AFAFIST), Malaysia and Thailand have completed the ratification process meanwhile Indonesia are in the process and target to complete by end of 2020.

41. On the finalisation and ratification of ASEAN Framework Agreement on the Facilitation of Cross Border Transport of Passengers by Road Vehicles ASEAN (CBTP), both Malaysia and Thailand have completed and Indonesia target to complete the process by end of 2020.

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42. On the progress of implementation of the revised IMT-GT Memorandum of Understanding (MoU) on Air Linkages, Indonesia has notified through diplomatic note to Malaysia and Thailand on 27 August 2019 informing that Indonesia has completed its internal procedures. Malaysia will notify through diplomatic channel that it has complied necessary domestic requirements to implement the MoU in the 1st quarter of 2020 and Thailand currently in the process to seek approval from the Parliament.

43. The WGTIC proposed to conduct Port Community Dialogue at the 2nd IMT-GT Tourism Forum that will be conducted in Thailand.

44. The update on Priority Connectivity Projects (PCP) are as follows:

Road: a) Sumatera Toll Road Project – Indonesia Completed section: I. Bakahueni – Terbanggi Besar (140.83km) II. Palembang – Simpang Indralaya (21.58km) III. Medan – Kualanamu – Tebing Tinggi (62.11km) IV. Terbanggi Besar – Permatang Panggang – Kayu Agung (189.2km)

On-going: I. Kayu Agung – Palembang – Betung (111.69km) construction 56.93%, land acquisition: 74.86% (expected to be completed in 2020) II. Pekanbaru – Kandis – Dumai (130.44km) construction 84.28%, land acquisition 98.93% (expected to be completed in 2020) III. Medan – Binjai (16.72km) construction 93.09%, land acquisition 97.87% (expected to be completed in 2020) IV. Kuala Tanjung – Simpang Indrapura – Tebing Tinggi – Parapat (143.5km) construction 16.77% V. Pekanbaru – Padang Toll Road (254.8km) Land acquisition 6.98% VI. Binjai – Langsa – Lhokseumawe – Sigli – Banda Aceh (454km) construction 2.72%, land acquisition 37.66% VII. Palembang – Tanjung Api-Api (70km) Construction awaiting completion of toll road concession agreement VIII. Betung – Tempino – Jambi – Rengat – Pekanbaru (556km) construction awaiting completion of toll road concession agreement IX. Dumai – Sp. Sigambali – Rantau Prapat – Kisaran – Sp. Indrapura (322km) awaiting readiness criteria completion by concessionaire

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b) Upgrading of D21 road from Tumpat to Kota Bharu (Malaysia): The meeting reported that the upgrading work is a domestic initiative and will be excluded from PCP list.

c) Hat Yai – Sadao Intercity Motorway (Thailand): PPP study and EIA has been completed and currently seek approval from the Cabinet to select private entity for investment. The construction is expected to be started in 2022.

Train: d) Trans Sumatera Railway Project (Indonesia): Completed section: I. Besitang – Binjai (85km): completed in 2020; II. Prabumulih – Kertapati (80km): Completed in April 2018; III. Muaro Kalaban – Muaro (13km): Completed in 2016: IV. Spur line to Kuala Tanjung Port: Completed in 2020; and V. Spur line to Minangkabau International Airport: Completed in May 2018.

Detailed Engineering Design Phase: I. Lhokseumawe – Langsa (248km); II. Duri – Pekanbaru (90km); III. Pekanbaru – Teluk Kuantan – Muaro (164km); IV. Pekanbaru – Jambi (350km); V. Solok – Muaro Kalaban (37km); and VI. Spur line to Tanjung Api-Api Port

On-going Phase: I. Langsa – Besitang (35km); II. Rantauprapat – Duri – Dumai (249km); and III. Jambi – Palembang/Kertapati (218km).

e) Light Rail Transit – South Sumatera (Indonesia): Completed and operationalised in 2018.

f) Malaysia – Singapore High Speed Railway Project (Malaysia): Project is currently under re-evaluation and Malaysia proposed to withdraw this project from IMT-GT list until decision is made.

g) East Coast Railway Link Project (Malaysia): Realignment made on West Coast portion of the project and unaffected section is currently being constructed with 14.49% progress and expected to be completed by December 2026.

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h) Upgrading of KTMB Cargo Terminal in Padang Besar, Perlis (Malaysia): Construction 98.84% completed by end of February 2020

i) Double Track Rail linking between Surat Thani – Hat Yai – Songkhla (Thailand): Currently under EIA and awaiting approval from Cabinet. Project is expected to be constructed in 2021.

j) Double Track Rail linking between Hat Yai – Padang Besar (Thailand): Currently under EIA and awaiting approval from Cabinet. Project is expected to be constructed in 2021.

Bridges: k) Bridge link – (Malaysia): Bridge design has been completed and the Technical Coordination Meeting with Thailand will be conducted in February 2020.

l) Second bridge link at – Sg. Golok (Malaysia): Bridge design has been completed and the Technical Coordination Meeting with Thailand will be conducted in February 2020.

m) New Bridge link across at Tak Bai, – Pengkalan Kubor, (Thailand): Bridge design has been completed and the Technical Coordination Meeting with Malaysia will be conducted in February 2020.

n) Second Bridge link across Golok River at Sungai Golok, Narathiwat – Rantau Panjang, Kelantan (Thailand): Bridge design has been completed and the Technical Coordination Meeting with Malaysia will be conducted in February 2020.

o) Highway-Bridge linking Thammalung, Satun with Puyu and Bukit Putir, Perlis (Thailand): Currently under feasibility study.

Inland cargo: p) Perlis Inland Port (Malaysia): Currently finalising scope and agreement as well as business plan with the private investor.

q) Thungsong Cargo Distribution Centre, Nakhon Si Thammarat (Thailand): Awaiting approval from the government.

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Airport r) Upgrading of Kota Bharu Airport (Malaysia): Appointment of contractor is expected in the 2nd Quarter of 2020.

s) New Betong Airport, Yala (Thailand): Construction completed and scheduled for operation in June 2020.

t) Expansion of Hat Yai International Airport, Songkhla (Thailand): Currently under Phase I (2016-2025)

u) Phuket International Airport Development (Phase II), Phuket (Thailand): In the process of hiring consultant for EIA study.

Seaport v) The expansion of Kuala Tanjung Development Port (Indonesia): Stage I has completed and operationalised in 2018. Development of Hub Port is expected to begin construction in 2022.

w) Belawan Port (Indonesia): Container Terminal Phase I completed. Container Terminal Phase II construction progress: 98.54%

x) Melaka Dumai economic Corridors Multimedia Transport Project (Indonesia): Port facilities upgrading expected to be completed in 2020. Indonesia has conducted domestic consultation and national coordination meeting in Dumai to discuss readiness of port facilities and infrastructure, the availability of RORO vessels, CIQ preparation and security support.

y) RoRo Dumai Melaka (Malaysia): Malaysia proposed to defer the implementation of Phase I (accepting commercial vehicle) to 4th Quarter of 2020 due to joint formulation of SOP and series of development projects to be undertaken in Tanjung Bruas Port including the establishment of new CIQ facilities, parking area, additional dolphins and moveable bridge.

z) Second Songkhla Deep Sea Port (Thailand): Project is delayed due to prolonged consultation with relevant authorities and local community.

aa) Development of Cruise Ports in Koh Samui (Thailand): Marine Department requested to conduct a business viability and business analysis during 2020-2021 budget.

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bb) Port (Thailand: Feasibility study has completed and Port-to-Port MoC has been signed with India – Krshnapatnum Port and Sri Lanka – Hambantota Port.

Customs, Immigration and Quarantine Facilities

cc) Upgrading of Padang Besar ICQS (Malaysia): Project is delayed, and the construction progress are 93%. Project is expected to be completed by 14 February 2020.

dd) New – Sadao CIQ (Malaysia): Phase I completed and fully operated on 1 November 2017. Phase II was completed, and the Certificate of Acceptance for Phase II was issued on 26 June 2019. The ICQS is currently fully operationalised.

ee) New Sadao CIQ (Thailand): Construction progress: 99%

ff) Rehabilitation of Padang Besar CIQ (Phase II) (Thailand): Currently finalising equipment and quarters.

gg) Rehabilitation of CIQ (Thailand): Detailed design and land acquisition planning are completed and awaiting for Malaysia confirmation on upgrading of CIQ.

45. WGTIC proposed new projects as following: a) Study for container loops between Kuala Tanjung Port, Malaysia Port and Thailand Port for smooth transportation of goods; b) Industrial area development at Kuala Tanjung, Sei Mangkei Special Economic Zone, Industrial area at Malaysia and Thailand: Invite and facilitate investors from Indonesia, Malaysia and Thailand with special treatment to invest in both locations such as Container Depot, storage tank for fuel, warehouses, industrial park and other supporting facilities; and c) Study for cruise and tourism package among IMT-GT: Provide feasibility study on tourism.

46. Under WGTIC, the secretariat of Chief Minister and Government Forum (CMGF) Thailand also proposed several new projects. The projects are as follows: a) Construction of highway no.43 Klong ngae – Narathiwat (14.2km); b) Upgrading of Pattani fishing port; c) Development of highway network no.410 Tebing Tinggi, (37.8km); d) Development of highway network no. 410 Borhin, (26km); e) Development of highway network no. 4326; f) Development of Narathiwat Airport;

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g) Development of Buke Ta Customs Facilities; h) Phuket Smart City; i) Development of Deepsea Port Phuket; j) Light Rail Transit Phuket; k) Phang Nga Airport; l) New railway route project for tourism (Surat Thani – Phang Nga – Phuket); m) Upgrading and effectiveness of highway, Trang Province; n) Study on creative suitability for economic, engineering and EIA for Satun Airport; o) Study on Creative suitability for economic, engineering and EIA for Yan Ta Khao – Amphoe Pa Lien – Amphoe Thungwa – Amphoe Langu highway; p) New double track railway Amphoe Donsuk to South Railway Surat Thani; and q) Development of Surat Thani Airport.

47. The WGTIC proposed to conduct meetings at tentative schedules as follows;  The 12th WGTIC meeting in the 1st week of August 2020 in Ipoh, Perak, Malaysia  The 2nd Dumai-Melaka Task Force Meeting will be conducted in April 2020 in Malaysia.  The Joint Technical Meeting of Rantau Panjang – Sg Golok and Tak – Bai Pengkalan Kubor bridges will be conducted in the 1st week of March 2020 in Kelantan, Malaysia.

The presentation appears as Annex VII.

48. In response to the presentation, the Meeting took note of the following comments and suggestions:

a) Hon. Mr. Danucha Pichayanan, Deputy Secretary General Office of the National Economic and Social Development Council (NESDC), mentioned that the new proposed projects required efficient and effective arrangement for smooth implementation. He took note on the Joint Technical Meeting of Rantau Panjang – Sg Golok and Tak – Bai Pengkalan Kubor bridges that will be conducted in the 1st week of March 2020 in Kelantan, Malaysia. He emphasized on the importance of timely progress of cruise port development as it will contribute to tourism sector.

b) Hon Mr. Bobby Hamzar Rafinus, Senior Advisor for Regional Development Coordinating Ministry of Economic Affairs Indonesia, took note on the progress report of the PCP and encouraged WGTIC to expedite the implementation of MoU on Air Linkages and proposed to collaborate with other WGs. He emphasized on ensuring timely completion and operationalisation of RoRo Dumai-Melaka.

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c) Hon Dr. Suhana Md. Saleh, Director of Strategic Planning and International Cooperation Division, Ministry of Economic Affairs, took note on the progress report and look forward on the Joint Technical Meeting of Rantau Panjang – Sg Golok and Tak – Bai Pengkalan Kubor bridges and RoRo Dumai-Melaka. She mentioned that the development of RoRo Dumai-Melaka requires WG to lead the project implementation as it is beyond the capacity of Melaka State Government.

Sub-Working Group on ICT Connectivity (SWGICT)

49. Datin Anna Amalina binti Imam Baweh, Deputy Under Secretary, Communications Technology Division, Ministry of Communications and Multimedia Malaysia, as the Chair of the SWGICT, presented on the report of SWGICT to the Meeting. The SWGICT agreed to send data to finalise Indicator 1: Number of MSMEs doing online business under IMT-GT, data on business adopting e-payment gateway for Indicator 2: Number of businesses under IMT-GT using ICT to transform their operation and data on broadband penetration (mobile and fixed) for Indicator 3: Percentage of IMT-GT population with broadband access to CIMT by 31 March 2020.

50. She further reported on the challenges faced by the SWGICT on measuring businesses using ICT to transform their operation as businesses are embracing digital transformation in many ways and at different levels. The SWGICT recommended to review the indicator for measuring enhanced competitiveness through ICT to businesses subscribing e-payment gateway services.

51. Another issue that was highlighted by the SWGICT is change in the way of business operation and people work as a result of disruptive technologies. The rapid growing sharing/gig economy could mitigate the issue by offering digital talent platforms and new options for independent/freelance work. The SWGICT proposed to conduct further discussion on this matter to reduce rural-urban migration.

52. The SWGICT proposed to include National Fiberisation and Connectivity Plan (Malaysia), 5G Testbed (Malaysia) and Net Pacharat Broadband Internet (Thailand). In the absence of representative of SWGICT Indonesia, she requested SWGICT Indonesia to include their ICT infrastructure projects in the list.

53. New project / activity proposals to be included in IB2017-2021 are as follows: a) Digital Economy Immersion Programme The aim of this project is to share experience and best practices on digital economy from each member country to identify common challenges and opportunities.

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b) E-commerce Capacity Building The project aims to empower MSMEs via structured training to harness the potential of online business, particularly cross-border e-commerce trade. The project will support the development of IMT-GT e-commerce platform.

c) Fourth Industrial Revolution Framework (4IR) The SWGICT will assist WG on Human Resource Development, Education and Culture (WGHRDEC) to share best practices on 4IR initiatives, particularly in promoting adoptions among businesses.

d) Digital for Businesses Growth The project aims to assist the Startup to showcase solutions that will encourage businesses to adopt digitalisation to improve efficiency and customer experience.

e) Rubber City Project The project aims to leverage on disruptive technologies across the supply chain (upstream and downstream) within IMT-GT Rubber City project.

54. Update on Current project as follows: a) IMT-GT E-Commerce Platform On 6th February 2020, a convergence meeting between SWGICT, WGTI, WGT, WGHAPAS and WGHRDEC was conducted to update the progress of the establishment of IMT-GT e-commerce platform. She reported that the member countries agreed to furnish comments and feedbacks of the Terms of Reference (ToR) by 14 February 2020 and CIMT to circulate the comments and feedback by 17 February 2020. The SWGICT will finalise the ToR by 26 February 2020. On budget matter, Project Implementation Team (PIT) will submit the budget draft to CIMT. The member countries agreed to present related capacity building programme and e-commerce training to support the establishment of IMT-GT e-commerce platform in the 3rd Convergence Meeting on E- commerce Platform. The 3rd Convergence Meeting on E-commerce Platform to be held at the earliest of WGTI or WGTIC meeting. She also welcomed other WGs to host the convergence meeting in their WG meeting. The establishment of IMT-GT e-commerce platform is targeted to be completed by end of 2020 and SWGICT proposed to launch the platform during the 14th IMT-GT Summit in 2021.

The presentation appears as Annex VIII.

55. In response to the presentation, the Meeting took note of the following comments and suggestions:

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a) Hon. Mr. Danucha Pichayanan, Deputy Secretary General Office of the National Economic and Social Development Council (NESDC), welcomed the SWGICT initiative to promote digital economy accessibility for community through IMT-GT e-commerce platform project. He commented that this could be an important tool to achieve equal distribution for the subregion to a wider market. He also highlighted on the importance of data protection and agreed on the proposal to use existing local e-commerce platform for the IMT-GT e-commerce platform project.

b) Hon Mr. Bobby Hamzar Rafinus, Senior Advisor for Regional Development Coordinating Ministry of Economic Affairs Indonesia, expressed his appreciation to the SWGICT and he will inform SWGICT Indonesia on the outcome of the meeting.

c) Hon Dr. Suhana Md. Saleh, Director of Strategic Planning and International Cooperation Division, Ministry of Economic Affairs, recognised the effort of the SWGICT to update the indicator and congratulated SWGICT in conducting convergence meeting between several WGs on IMT-GT e-commerce platform. She noted on the issue raised for job seeker sharing platform to increase job opportunities for the subregion. She expressed her support to the programmes and projects proposed by SWGICT and hoped the projects would be able to promote inclusivity in improving business efficiency. She encouraged JBC and private sector to participate actively in e-commerce platform project and government to provide necessary support.

Working Group on Trade and Investment (WGTI)

56. Mrs. Norazilawati Rohanuddin as Head of WGTI presented the report to the Meeting. On the issues and challenges, the working group mentioned that the projects in WGTI are too generic and not designed to achieve the goal of WGTI. The WG needs to differentiate between physical and facilitation projects to achieve the desired outcome. WGTI felt the mechanism of the convergence need to be enhanced. In terms of review IB2017-2021, WGTI need to ensure the indicators reflected to the projects.

57. The project progress was presented to the Meeting by classified the projects into physical and facilitation action. The facilitation projects are as follows: a) Framework of Cooperation for Customs, Immigration and Quarantine; The lists of definition of customs, immigration and quarantine are to be approved by each department and revert the comments to secretariat no later than 6 March 2020. b) TOR CIQ; c) IMT-GT Time Release Study; d) IMT-GT Trade Fairs/ Business Centre; e) 24Hrs Operation of CIQ Sadao-ICQs Bukit Kayu Hitam;

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f) Statistical Booklet production; and g) API System. 58. Physical projects namely as follows: a) Thailand SEZ; b) Science Technology Park; c) Chuping Valley Industrial Area; d) Tok Bali Fisheries Park; e) Tok Bali Industrial Park; f) Pasir Mas Halal Park; and g) IMT-GT Plaza -Jeli.

59. WGTI seek the approval from the Senior Officials to remove Kedah Science & Technology Park (KSTP) considering the project is no longer under Northern Corridor Implementation Agency (NCIA).

60. With regard to E-commerce platform project, WGTI expressed their commitment to support the establishment of IMT-GT E-Commerce Platform. Malaysia as the host for the 13th WGTI Meeting is considering to organise the 3rd convergence meeting on IMT-GT e-commerce platform held in July 2020 in , Malaysia.

The presentation appears as Annex IX.

61. In response to the presentation, the Meeting took note of the following comments and suggestions: a) Hon. Mr. Danucha Pichayanan, Deputy Secretary General Office of the National Economic and Social Development Council (NESDC), reminded WGTI to look into their role to facilitate and support the focus area. He appreciated the outcome of the 2nd convergence meeting on IMT-GT e-commerce platform. He thanked SWGCIQ in their effort to finalise the main text of Framework of Cooperation (FOC) CIQ that is expected to be completed and signed during the 26th Ministerial Meeting in 2020.

b) Hon Mr. Bobby Hamzar Rafinus, Senior Advisor for Regional Development Coordinating Ministry of Economic Affairs Indonesia, urged the WG to expedite the completion of FOC CIQ.

c) Hon Dr. Suhana Md. Saleh, Director of Strategic Planning and International Cooperation Division, Ministry of Economic Affairs, welcomed the initiatives done by the WG on the proposed framework for WGTI to streamline their physical and facilitation projects. She emphasized the importance to synergize WG projects to achieve the overarching objectives of trade and investment facilitation.

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She proposed the WG to conduct more convergence meetings to streamline activities and to achieve the desired goals.

Working Group on Human Resource Development, Education and Culture (WGHRDEC)

62. Mrs. Yanti Nurhayatiningsih, Head of Regional Cooperation, representing the Chair of WGHRDEC, presented on the WG report to the Meeting. She reported that the indicators for WGHRDEC are still relevant and WGHRDEC will provide latest statistics to CIMT on Indicator 1: Number of trainees certified by accredited vocational training centres in the subregion by 2021. On Indicator 3: Number of users accessing the IMT-GT Labour Market Information System (LMI) can only be obtained after the system operationalise.

63. WGHRDEC raised on the following issues and challenges: a) WGHRDEC encouraged active involvement of JBC in the WG to accelerate the implementation of Objectives of the IB2017-2021. b) Human resources development, education and culture is a cross-cutting issues thus it is proposed WGHRDEC to enhance cooperation and collaboration with other WGs. c) Skill development programme in IMT-GT should be able to respond to the opportunities and challenges of 4IR. d) Limited resources in term of personnel and funding for project implementation.

64. On the development of 4IR Framework, she reported that WGHRDEC shared common understanding on 4IR and WG supported by aligning their skills development with the needs and demand arise from 4IR. UNINET also aims to develop working papers in response to 4IR. The papers will cover the socioeconomic of the subregion on different areas such as economic, social and environment.

65. To achieve Strategy 1: Implementation demand-driven skills training, the WGHRDEC agreed to provide data on manufacture, agriculture, construction, services and mining based on ISCO both national and IMT-GT subregion data by 1st week of March 2020.

66. Malaysia has confirmed to conduct TVET Training Methodology on 17-21 February 2020 and Academic Quality Management System (AQMS) for Automotive on 17-21 February 2020. Indonesia and Malaysia are confirmed to participated in the courses, while Thailand only participate in AQMS for Automotive. On Spa Skills Competency Recognition, Thailand as the lead country for this project requested additional time to conduct internal discussion on this matter.

67. As for Welding Skill Competency, each country has appointed representatives for Committee Member for Authorised Certification Body (ACB) as well as Testing Center. Thailand is planning to conduct ACB Committee Meeting in July 2020 and Inspection for

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Authorised Testing Center in each country. On the progress of LMI, Malaysia and Thailand will inform the WGHRDEC on the focal point latest by the first week of March 2020. The data on tourism sector according to ISCO standard will be shared in English by the first week of March 2020.

68. WGHRDEC new project proposals are as follows: a) Training of Trainers on Multimedia Teaching Software; and b) Training of Trainers on Warehouse Management System.

69. Both projects are still in the preliminary discussion and yet to be decided.

70. Prof. Hizir Sofyan, representing the Chair of UNINET, presented on the UNINET report to the Meeting.

71. He recapped on the acknowledgement of IMT-GT University Network Strategic Planning (USAP) 2017-2021 that was presented during the 11th IMT-GT Summit. He also reported that UNINET is ready and fully supporting any request by the WGs. 72. Currently, UNINET involves in various projects such as conferences, STEM (science, technology, engineering and mathematics) programme, talent mobility project, Varsity Carnival, superfruits and internship.

73. He also reported that on 5-6 September 2019, UNINET has conducted a workshop on evaluation of IMT-GT USAP 2017-2021. Several projects and programmes have been planned as follows:

a) Assist UNINET members to increase their rating in QS World Ranking; b) Develop community outreach programme; c) Conduct UNINET student competition and international cultural programme; and d) Prepare baseline green initiatives for campus.

74. Moving forward, UNINET will assist in 4IR, share best practices on superfruits project to the member countries, assist local government in developing Halal StartUp and promote green campus in collaboration with the new Working Group on Environment.

75. UNINET is also planning to look into the area of research in medicine and peace building for Southern Thailand learning example from the member countries. The presentation appears as Annex X.

76. In response to the presentation, the Meeting took note of the following comments and suggestions:

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a) Hon. Mr. Danucha Pichayanan, Deputy Secretary General Office of the National Economic and Social Development Council (NESDC), emphasized on the aging society issue which resulted in declining of available labour in the subregion. He encouraged WGHRDEC, UNINET and JBC to work together to nurture and develop the needed skills to accommodate with the current demand.

b) Hon Mr. Bobby Hamzar Rafinus, Senior Advisor for Regional Development Coordinating Ministry of Economic Affairs Indonesia, encouraged WGHRDEC to expedite the completion of LMI as this will be beneficial for the subregion. He congratulated the WG for their effort in improving their activities to align with IB2017-2021 and requested WG to include related information on the workforce in LMI. He proposed the WG to develop related education and culture activities and cooperation in improving migration such as rural-urban migration.

c) Hon Dr. Suhana Md. Saleh, Director of Strategic Planning and International Cooperation Division, Ministry of Economic Affairs, supported the activities of the WG especially in the area of 4IR for the subregion. She encouraged the WG to conduct convergence meeting on certain issues such as development of 4IR for further discussion.

Joint Business Council (JBC) 77. Mr. Sjahrian Harahap, representing JBC North Sumatera, Indonesia, reported the outcome of the meeting between JBC Indonesia and JBC Thailand. He mentioned that it was a fruitful discussion and has agreed to conduct several programmes and projects for 2020. 78. Issues that were discussed are as follows: a) Legalisation of IMT-GT JBC to be completed in the 2nd quarter of 2020 and the regional secretariat will be located in Thailand. b) JBC in each country is expected to be endorsed by National Secretariat. c) JBC Thailand will finalise the draft constitution of IMT-GT JBC. d) The needs of financial support from Member States. e) JBC will support WGs projects and programmes, such as (i) development of eco- tourism in the subregion; (ii) support WGTIC to connect Satun-Langkawi and Lake Toba via flight route; (iii) facilitate the standardisation of halal certification; (iv) establishment of WG on Environment and implementation of green cities such as in the area of renewable energy; (v) internship programme especially in IT sector; (vi) collaborate with YEN-D Plus to build business network for the young entrepreneurs; and (vii) organise JBC business matching and trade mission annually in each country. The presentation appears as Annex XI.

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79. In response to the presentation, the Meeting took note of the following comments and suggestions: a) Hon. Mr. Danucha Pichayanan, Deputy Secretary General Office of the National Economic and Social Development Council (NESDC), emphasized importance to strengthen network of private sector in IMT-GT. He recommended JBC to extend their membership to young entrepreneur and StartUp as well as sharing knowledge and information.

b) Hon Mr. Bobby Hamzar Rafinus, Senior Advisor for Regional Development Coordinating Ministry of Economic Affairs Indonesia, mentioned that he is looking forward to the legalisation of IMT-GT JBC and encouraged active involvement of private sector in IMT- GT activities.

c) Hon Dr. Suhana Md. Saleh, Director of Strategic Planning and International Cooperation Division, Ministry of Economic Affairs, appreciated JBC’s planning for 2020 and agreed with JBC’s proposal to organise business matching. She is also looking forward to the legalisation of IMT-GT JBC.

Chief Ministers and Governors Forum (CMGF)

80. Representative of CMGF Thailand Secretariat presented CMGF Thailand report to the Meeting. He mentioned that all their projects that were proposed under WGs have been incorporated in the WG reports. He requested to conduct a meeting with CMGF Indonesia and Malaysia in the future to develop mutual projects for the benefit of the subregion.

81. He presented on the important role of UNINET in developing labour force for the subregion, cultural exchange, proliferation of technology transfer, and entrepreneurship incubation.

The presentation appears as Annex XII.

82. In response to the presentation, the Meeting took note of the following comments and suggestions: a) Hon. Mr. Danucha Pichayanan, Deputy Secretary General Office of the National Economic and Social Development Council (NESDC), thanked CMGF Thailand for their report and seconded the importance to conduct meeting between CMGFs of Indonesia, Malaysia and Thailand for proper project/programme planning. The planning will be referred by the local government in preparing their budget before submission to related ministries.

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b) Hon Mr. Bobby Hamzar Rafinus, Senior Advisor for Regional Development Coordinating Ministry of Economic Affairs Indonesia, encouraged CMGF to work closely with WGs and JBC especially in project engagement.

c) Hon Dr. Suhana Md. Saleh, Director of Strategic Planning and International Cooperation Division, Ministry of Economic Affairs, raised on the difficulties to conduct a CMGF meeting during the SPM. She proposed to conduct a separate avenue to conduct CMGF meeting for better planning and implementation.

83. Senior Officials endorsed the progress report of WGs, SWGs, JBC and CMGF.

Outcome: The meeting noted with appreciation the reports of discussion presented by working groups, GMGF, JBC, and UNINET. It was noted that the difficulty to conduct CMGF meeting due to lack of representation from member countries. The meeting congratulated stakeholders for the progresses made in projects/programmes implementation in IB 2017- 2021, and expected that the on-going projects/programmes can be finalized according to the timeline. The meeting provided its guidance on the on-going projects/programmes to be completed by 2020, among others: Roro Dumai – Melaka project; Mid-term review IB 2017-2021; Legalization of IMT-GT JBC; and other on-going projects.

Working Group/SWG Activities/Projects/Programmes WG AA 1. 2nd Regional Training for Agriculture Young Farmers in the Framework of IMT-GT WG Trade and 1. IMT-GT Rubber Cities Investment 2. Framework of Cooperation (FOC) CIQ 3. IMT-GT Statistical Booklet 2020 WG Transport 1. RoRo Dumai Melaka 2. Upgrading KTMB Cargo Terminal, Padang Besar 3. Operationalisation of Betong Airport, Yala 4. Belawan Port - Phase II 5. Upgrading of Padang Besar ICQS 6. New Sadao CIQ SubWG ICT Connectivity 1. E-Commerce Platform WG Tourism 1. ASEAN/IMT-GT Eco-Tourism Business Planning Workshop; 2. Development and promotion of Muslim Friendly Tourism Concept and Standard within the IMT-GT; 3. The 2nd IMT-GT Tourism Forum; 4. The IMTGT Peranakan;

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5. IMT-GT Cheng-Ho Seminar 2020; 6. IMT-GT Sabang Yatch Seminar 2020; 7. Development and promotion of IMT-GT Geoparks; 8. IMT-GT East Coast of North Sumatera Cruise Business Forum 2020 WG HAPAS 1. IMT-GT Halal Industry Training WG HRDEC 1. TVET Training Methodology 2. Academic Quality Management System (AQMS) for Automotive 3. Authorised Certification Body (ACB) Committee Meeting for Welding Skill Competency UNINET 1. Evaluation of UNINET Strategic Action Plan 2. IMT-GT Varsity Carnival

Agenda 7: SUMMARY OF THE IB2017-2021 MID-TERM REVIEW

84. Mr. Firdaus Dahlan, Director of CIMT presented to the Meeting on the review summary of IB2017 – 2021. He highlighted several important findings based on the assessment from the WGs as follows:

a) The difficulties in monitoring progress of implementation blueprint due to insufficient data for IMT-GT level as most of the data are in national level.

b) Limited collaboration among the cross-sectoral areas has resulted in the inability to support the WGs strategy.

c) Limited development programme to support Fourth Industrial Revolution and lack of relevant studies to identify the potential sector – project fit.

d) Strong participation of JBC in WGs activities/project is required to achieve Vision 2036.

e) Clear mechanism, time allocation, coordination and direction of the convergence meeting need to be established to enhance the collaboration between WGs.

f) More meetings require to be conducted to expedite some pending issues.

g) Insufficient budget for project implementation.

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h) Working Groups recommended several solutions such as enhancing convergence meeting frequency, conducting virtual meeting to keep track on certain projects, strengthening coordination between WGs, CMGF, CIMT and National Secretariats, and conducting more studies to ratify sustainability of IMT-GT projects before implementation.

The presentation appears as Annex XIII. 85. In response to the presentation, the Meeting took note of the following comments and suggestions:

a) Hon. Mr. Danucha Pichayanan, Deputy Secretary General Office of the National Economic and Social Development Council (NESDC), mentioned that the input from WGs is the first step towards the Review, while the ADB’s study may be included as additional points in the Review. In the meantime, he requested CIMT to coordinate with WGs to gather more information. b) Hon Mr. Bobby Hamzar Rafinus, Senior Advisor for Regional Development Coordinating Ministry of Economic Affairs Indonesia, proposed the summary points to be considered as inputs in preparing of the next Implementation Blueprint 2022- 2026.

c) Hon Dr. Suhana Md. Saleh, Director of Strategic Planning and International Cooperation Division, Ministry of Economic Affairs, took note on the input from WGs, and requested analysis to be conducted and required more data to complete the Review.

Outcome: The meeting took note of the preliminary report of CIMT on review of IB 2017- 2021. It was noted that the information / datas provided by working groups was not sufficient enough for review. Hence, member countries, working groups, and other relevant stake holders were requested to assist CIMT on information required to conduct IB review 2017-2021. The meeting also recommended CIMT to utilize relevant reports of ADB to enrich the review. The meeting agreed on the need to strengthen private sectors’ engagement (JBC) in IMT-GT projects/programmes.

Agenda 8. ADB PRESENTATION 86. ADB presentation as follows: a) Scaling up Green Cities Initiatives; b) Implementing the Tourism Strategic Framework and Action Plan;

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c) Review and Assessment of IMT-GT Economic Corridors; d) Study on Collaborative Approach to SEZ Development and Cooperation; e) Capacity Building for Government Officials and Youth; and f) Promoting Healthy Oceans and Sustainable Blue Economies Framework study to review the existing five IMT-GT corridors.

87. ADB is also in the view that the proposal to renew the MoU between ADB and CIMT is no longer needed, considering their new policy to have lesser MoU. ADB considered that CIMT secretariat has been well-established and no longer require support from ADB in term of secretariat matters. In the upcoming years, ADB will concentrate in providing more assistance in knowledge product and financial support.

The presentation appears as Annex XIV.

88. In response to the presentation, the Meeting took note on the following comments and suggestions: a) Hon. Mr. Danucha Pichayanan, Deputy Secretary General Office of the National Economic and Social Development Council (NESDC), thanked ADB on the SEZ study that would be used to create possible value-chain in linking IMT-GT. He also appreciated several green cities initiatives, including the ASEAN Catalytic Green Finance Facility that may ensure the sustainability of green initiatives programmes. In tourism sector, he agreed that the subregional cooperation need to enhance their cooperation for the benefit of local community. He is looking forward to the result of Economic Corridor study and any possible other economic corridors to be developed in the future. He expected ADB to provide an effective mechanism for healthy ocean financing initiative. b) Hon Mr. Bobby Hamzar Rafinus, Senior Advisor for Regional Development Coordinating Ministry of Economic Affairs Indonesia, mentioned that, following CIMT’s presentation on the review of IB2017-2021 on budget constraint issue and data collection, he requested ADB assistance to solve these issues. For instance, in implementing green cities in IMT-GT areas, many cities require further assistance from ADB. He also encouraged WGs to match their projects with study conducted by ADB. For instance, in Economic Corridor 1, extended Songkhla-Medan-Penang and Economic Corridor 5, Ranong-Phuket-Aceh, recorded very little trade activities. While in Economic Corridor 6 (EC6), he expected to link EC6 to Riau Islands and Bangka Belitung to Economic Corridor 3 and Economic Corridor 4. c) Hon Dr. Suhana Md. Saleh, Director of Strategic Planning and International Cooperation Division, Ministry of Economic Affairs, thanked ADB for conducting the SEZ study and looked forward to the consultation meeting that will be conducted back-to-back with 13th IMT-GT Summit Senior Officials Preparatory

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Meeting in March 2020 in Malaysia. She also appreciated ADB for their technical assistance and capacity building programmes in several aspects including financing green cities initiatives which is important to further spur the growth in subregion. d) Mr. Firdaus Dahlan, Director of CIMT, conveyed his appreciation to ADB for their supports to carrying out the programmes under IMT-GT subregion. He took note on ADB’s notice of not to renew the MoU between CIMT and ADB and requested ADB to enhance cooperation and collaboration in the future. CIMT also requested ADB to share the preliminary report to be incorporated in the MTR report and as preparation for the upcoming IMT-GT Summit 2020. Outcome: The meeting noted with appreciation presentation from ADB on progress made of two projects, namely: Framework Study to review the existing Five IMT-GT Corridors; and the proposed 6th Corridor; and Study on Collaborative Approach to SEZ Development and Cooperation in IMT-GT and BIMP-EAGA. The meeting extended its profound gratitude to ADB for assistance provided in strengthening IMT-GT cooperation. The meeting also requested ADB to extending continuous support for achieving IMT-GT targets as stipulated in IB 2017-2021 and vision 2036.

AGENDA 9: PREPARATION OF IMT-GT SUMMIT AND IMT-GT MINISTERIAL MEETING

89. Malaysia updated that the 13th Summit will be conducted between 6 - 9 April 2020 in Da Nang, Vietnam. The 13th IMT-GT Senior Officials Summit Preparatory Meeting will be conducted in March 2020 in Malaysia, whereby the details will be updated in due course.

90. Indonesia updated that the 27th SOM Meeting/26th MM Meeting will be held in Padang, West Sumatera in September 2020. The details on preparatory meetings will be informed in due course.

Outcome: The meeting expressed its gratitude to CIMT for preparation the first drafts of Summit documents. CIMT was requested to finalize the drafts in coordination with member countries, working groups, and subworking groups, JBC and UNINET.

AGENDA 10: OTHER MATTERS 10.1. Endorsement of IMT-GT Development Partners Guidelines 91. Mr. Firdaus Dahlan, Director of CIMT presented to the Meeting on the IMT-GT Development Partners Guidelines. The objectives of IMT-GT Development Partners Guidelines are as follows:

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a) To establish partnership with potential dialogue partners, and develop mutually cooperation in areas/sectors related to the seven-pillar cooperation of IMT-GT; b) To explore all possibilities and avenues for collaboration with potential dialogue partners to accelerate economic integration in the sub-region; c) To accelerate achievement of IMT-GT Vision 2036 of becoming the sub-region that is developed in an integrated, innovation-driven, inclusive and sustainable manner. 92. Mr. Firdaus explained that currently there are 3 potential development partners to be engaged such as India, Islamic Development Bank and ICLEI. The presentation appears as Annex XV.

93. The Meeting in principle appreciated CIMT in developing IMT-GT Development Partners guidelines to increase development partners in IMT-GT sub-region. The details on the guideline still need to be discussed and further consultation will be conducted internally.

10.2. Proposal on Halal Ecosystem Development (HED) Framework for IMT-GT Sub-Region: 2021 – 2036 94. Mr. Firdaus Dahlan, Director of CIMT, presented HED Framework. The HED Framework is developed on the premise that the halal ecosystem to be an all-inclusive infrastructure that spans from business network, institution, government and non-government. There are six (6) priority areas such as Halal Standard & Certification, Human Capital, Product, Services, Halal Science, Management and Halal Ecosystem. Mr. Firdaus also explained the details on the timeline of creating the framework as well as budget required to the Meeting. The presentation appears as Annex XVI.

95. In response to the presentation, the Meeting took note and appreciate the initiative to develop Halal Ecosystem Development Programmes, which is also supported by the WGHAPAS. The Meeting agreed that the issue on budget should be raised in the next Advisory Committee Meeting. 96. Assoc. Prof. Winai Dahlan as the chairman of WGHAPAS mentioned the importance to create the halal atmosphere in the region, for the benefit of the people. IMT-GT is the initial platform in any sub-region which touch on the halal sectors in its cooperation. He is in view that IMT-GT should regain its strength in Halal cooperation and prove that IMT-GT positioning Halal as its important sector by developing halal ecosystem.

10.3. Halal Industry Training Programme: ISDB, WG HAPAS and CIMT 97. Mr. Firdaus Dahlan, Director of CIMT, reported that Halal Industry Training Programme for three (3) countries will be conducted in-collaboration with IsDB and WGHAPAS. The first

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training will be conducted in Malaysia, co-organized with Halal Development Centre (HDC) Malaysia. Second training will be conducted either in Indonesia or Thailand, and will be updated in due course. The participants of the training will consist of 32 provinces/states of IMT-GT with a full sponsored from fund by IsDB.

The presentation appears as Annex XVII.

98. In the response to the presentation, the Meeting took note and appreciated the initiatives to conduct the training for three countries.

Outcome: The meeting noted the presentation of Director CIMT on the draft of IMT-GT Development Guidelines and the progress made with potential development partners. It was agreed that members countries will finalize the draft internally and provide guidance at the coming Prep-SOM Summit to be held in Malaysia, March 2020. On the proposal Halal Ecosystem Development (HED) Framework for IMT-GT Sub-region: 2021-2036, the meeting approved the proposal and recommended the budget proposal to be approved by the 18th ACM meeting. The meeting noted with appreciation the first ever training programme on Halal Industry to be conducted by CIMT with full support from Islamic Development Bank (IsDB) regional Hub Jakarta-Indonesia. The detail of training programme was discussed under WG HAPAS. CIMT was requested to circulate the invitation to member countries for participation.

AGENDA 11. CLOSING REMARKS 99. Hon Mr. Bobby Hamzar Rafinus, Senior Advisor for Regional Development Coordinating Ministry of Economic Affairs Indonesia, expressed his appreciation for the fruitful meeting and took note on substantive ideas and discussion from member countries. The outcome will be used to prepare the work plan for 2020-2021. He encouraged each country focal point to prepare an implementation plan with all stakeholders to achieve IMT-GT mutual goals, sustainable and inclusive growth. 100. Hon Dr. Suhana Md. Saleh, Director of Strategic Planning and International Cooperation Division, Ministry of Economic Affairs, thanked all Senior Officials, National Secretariats, Working Groups, CMGF and ADB for active participations during three-day meetings which bring an impactful discussion. She also expressed her sincere appreciation to CIMT for facilitating excellence discussions throughout Strategic Planning Meetings. She took note that there are numbers of proposed projects and programme needed to be implemented and monitored.

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101. Mr. Firdaus Dahlan, Director of CIMT, expressed his sincere appreciation to the IMT-GT Senior Officials for their valuable inputs and comments. He congratulated the Kingdom of Thailand in hosting the 13th IMT-GT SPM and thanked for their hospitality and great arrangement during the meeting. 102. Ms. Rhodora Concepcion, on behalf of Mr. Alfredo Perdiguero, Director Regional Cooperation and Operations Coordination Division congratulated the meetings upon the successful discussion. She reiterated ADB’s support to continuously assist IMT-GT as conveyed by Mr. Alfredo during the skype session.

103. Hon. Mr. Danucha Pichayanan, Deputy Secretary General Office of the National Economic and Social Development Council (NESDC), thanked all delegation for their comments and attendance to the meeting. He hoped the progress for IMT-GT cooperation in 2020 will be expedited and bring more benefits to the local community especially under the implementation of IB2017-2021 and the future Implementation Blueprint 2022 – 2026.

Outcome: The meeting congratulated Thailand for chairing the success of the 13th SPM. The meeting also noted with appreciation the closing remarks by the Chair. The Chair thanked all Member Countries for the collaborative manner in which the meeting was held and also expressed appreciation to the CIMT for collaboration in supporting the meeting.

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