Scoping Study for the Special Border Economic Zone (SBEZ) in the IMT-GT Sadao-Bukit Kay Hitam border area Pawat Tangtrongjita Ph.,D. Songkla, Thailand 30 August 2017 Motivation Border Profile Border Crossings Findings SBEZ Task Force Reviewed pre-inception report Determined that study should be comprehensive and cover 8 border Scoping Study crossings in depth To make recommendations to Task Force Objective on possible location(s) of SBEZ 10 February 2014 – Start-Up 2-7 March 2014 – 1st Field Trip 29 March – 4 April 2014 – 2nd Field Trip THAILAND MALAYSIA Fiscal incentives, infrastructure and SPECIAL ECONOMIC services, supply chains, ZONE PPP, zone designation, regulations, safeguards Operation practices OPERATIONS and technology (R&D) Product conformity, GOODS standards and regulations; quality infrastrcuture Incentives and REGULATIONS commercial regulations and practices CUSTOMS, IMMIGRATION, Trade facilitation: QUARANTINE, SECURITY simplification, harmonization, (CIQS) standardization Vehicle and rail standards TRANSPORTATION and regulations; logistics centers Road, rail, water INFRASTRUCTURE transport; warehousing; electricity, water, sewage Business development LEARNING CENTERS service (BDS) centers, higher education Urban planning, BORDER TOWNS infrastructure services, social welfare services 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 BORDER AREA PROFILE 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 5 - Ranong-Phuklet Ace Corridor Thai-Malaysian Railway Systems 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 Satun $3,737 Songkhla Pattani 1 2 $4,735 Perlis 3 $1,910 4 Yala $3,929 8 Narathiwat Kedah $2,529 $5,410 7 6 5 Perak Kelantan $7,128 $3,863 East Coast Economic Region (ECER) Thailand’s Masterplan Southern Region Development ECER SEZ: Integrated Logistics & Industrial Hub in Plan Kuantan Port City Northern Corridor Economic Region (NCER) Border Area Seafood Rubber & Processing Rubber Wood Halal Products Palm Oil BORDER CROSSING ASSESSMENTS 1 km visa-free access on either side of the border crossing for Market for local visitors to the bazaar. products is well known & enjoys large attendance on Sundays Existing SEZ is already at SBEZ Level 1; both sides are interested in progressing to Level 2. Value chains in fisheries, canning, rubber industries and major focus on eco-tourism. Tunnel would greatly enhance trade and transport opportunities, but funding is uncertain. SBEZ would bring much-needed improvements in local incomes. SMEs are well organized and have strong networking system. Indonesian linkages: (a) already exist in fisheries; (b) opportunities for investors in fishery & rubber industries; (c) opportunities for Indonesian workforce to support fishing and rubber industries. Kedah State’s Industrial Development Plan Padang Besar Container Traffic by Freight Trains 12,000 Malaysian Exports to 9,000 Thailand Thai Exports to Malaysia 6,000 3,000 0 2008 2009 2010 2011 2012 2013 New railway station will attract more tourist to area. Large amount of truck congestion on Thai side of border. Perlis Halal Park offers opportunities for cross-border investments and collaboration in value chain. Cross-border collaboration opportunities in rubber and rubber wood industries, and palm oil supply chain. Malaysia’s rail cargo capacity and link to West Coast trunk line is very good. Land constraints on Thai side prevent much needed expansion of rail facilities. Indonesian linkages: (a) strong people and goods transport linkages; (b) opportunities for investors in rubber and palm oil industries. Bukit Kayu Hitam Planned ICQS Complex 2012 $4,642 $5,337 2011 $5,501 $4,578 2010 $4,648 $4,262 Thai-Malaysian Border Crossings at Padang Besar & Sadao Border Crossings 2009 $3,193 $3,649 2008 $3,775 $3,676 $- $2,000 $4,000 $6,000 Thai Exports to Malaysia Malaysian Exports to Thailand Site for New Industrial Park Site for New Border Town Proposed Rubber City Location in Malaysia …. …and 2 Options in Songkhla Province of Southern Thailand Proposed Kota Putra Rubber City New 4-lane highway on Thai side Durian Burung - ICQA Ban Prakob - CIQ Proposed Kota Putra Rubber City is fully integrated industrial park with integrated border town development. Thai-Malaysian rubber industry cooperation is well advanced. Cooperation in palm oil industry with Malaysia could improve integrated production system management. New customs facilities with similarly modern facilities on both side of border. Four-lane highway being constructed on Thai side of border; Well maintained highway on system on Malaysian side of border. Indonesian linkages: (a) strong transport linkages; (b) potential training and education opportunities; (c) investment opportunities. Pengkalan Hulu Commercial and Industrial Development Plan CIQ Facilities in Betong Road from Betong to Yala Capital New highway system on Malaysian side New ICQS Facilities in Pengkalan Hulu Development of Malaysian FTZ and Pengkalan Hulu Commercial & Industrial Development could greatly improve commerce in area. So far, there’s been a lack of interest in FTZ on the part of investors. Potential expansion of downstream production of rubber products. Potential expansion of furniture industry based on rubberwood production. Excellent roads to Butterworth port in Penang. Indonesian linkages: opportunities for Indonesian investors in (a) rubber industry; (b) rubber wood industry; (c) furniture industry. Designated SEZ Site in Narathiwat near Thai- Malaysian border Construction on new Ban Buketa CIQ appears to have halted. New Bukt Bunga ICQS Old CIQ Facilities. On Thai side, construction appears to have been halted due to difficulties with the contractor. Plans are underway to upgrade the bridge. On Malaysian side, new ICQS facility. Opportunities for cross-border cooperation in tourism. Large opportunities for cooperation in halal products and services with Malaysia, Indonesia and Brunei Darussalam. Su-ngai CIQ Rantau Panjang ICQS EZ in Narathiwat is strategic objective of the IMT-GT 2012-2016 Roadmap. Halal industry development is integral to ECER masterplan. Planned Rantau Panjang FTZ would greatly increase well-being of local population. IMT-GT Roadmap targets cluster of value–added chains in Narathiwat and Kelanta. Second bridge planned to accommodate expected traffic expansion. Thai CIQ complex is being upgraded to accommodate expected traffic expansion. Indonesian linkages: (a) Indonesia has large industry in development of halal industry; (b) Learning centers in Narathiwat and Kelantan could attract Indonesian students. Passenger and car vehicle transportation crossing modes Bridge linking Takbai to Pengkalan Kubur will greatly facilitate cross-border transportation of goods and people. Malaysian and Thai CIQ facilities will be constructed along the new bridge. Border crossing is close to the proposed SEZ site. Larger Pengkalan Kubur FTZ would greatly increase well-being of local population. Large opportunities for cooperation in halal products and services with Malaysia, Indonesia and Brunei Darussalam, as well as agro-industries. RATINGS SUMMARY & WAY FORWARD Takbai - Pengkalan Kubur Su Ngai Kolok - Rantau… Ban Buketa - Bukit Bunga Betong - Pengkalan Hulu Ban Prakob - Durian Burung Sadao - Bukit Kayu Hitam Padang Besar (Songkhla &… 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 Padang Wang Besar Sadao Ban Ban Su Ngai Prachan (Songkhl - Bukit Prakob - Betong - Buketa Kolok - Takbai - - Wang a & Kayu Durian Pengkalan - Bukit Rantau Pengkala Kelian 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 Commercial Focus Welfare Focus Su Ngai Kolok - Ban Prakob - Durian Rantau Panjang Burung Ban Prakob - Durian Su Ngai Kolok - Rantau Burung Panjang Sadao - Bukit Kayu Sadao - Bukit Kayu Hitam Hitam Padang Besar Padang Besar (Songkhla & Perlis) (Songkhla & Perlis) Betong - Pengkalan Wang Prachan - Wang Hulu Kelian Wang Prachan - Betong - Pengkalan Wang Kelian Hulu Takbai - Pengkalan Takbai - Pengkalan Kubur Kubur Ban Buketa - Bukit Ban Buketa - Bukit Bunga Bunga 0 1 2 3 4 5 0 1 2 3 4 Decide on Detailed ToR Comprehensive Location(s) ++ SBEZ Study Thank You for All Your Contributions to This Report.