TRADE & INVESTMENT
Strategies to spearhead growth
trade and investment focus area strategies
The key strategies of the Trade and Investment Facilitation Focus Area are:
- Simplify technical, administrative and regulatory barriers to trade in goods and services and investment
- Improve logistics services along supply and value chains
- Increase trade and investment promotion activities
They were formulated to address the major challenges facing the subregion, as follows:
- Relatively high business transaction costs owing to the presence of technical, administrative and regulatory barriers to intra-IMT-GT trade and investment
- Supply chain challenges for companies investing in cross-border trade due to lack of simplification and standardisation of cross-border formalities and procedures (e.g., CIQ rules and procedures)
- There is a pressing need to incentivise the private sector players to utilise IMT-GT as a platform to expand their business interests as there are signs showing that the private sector is beginning to lose interest in IMT-GT
- Increased competition for FDI across ASEAN and beyond amid a challenging global economic environment
Implementation of the strategies is expected to increase intra and inter-IMT-GT trade and investment and enhance the subregion’s attractiveness to domestics and foreign investors. This will go a long way to spur the development and growth of the Lead Focus Areas, i.e., the agriculture and agro-based, tourism and Halal industries.
The following table depicts the three key strategies of the Focus Area, the types of interventions needed and how they will contribute to attaining Vision 2036.