Strategies to spearhead growth

trade and investment focus area strategies

The key strategies of the Trade and Investment Facilitation Focus Area are:

  1. Simplify technical, administrative and regulatory barriers to trade in goods and services and investment
  2. Improve logistics services along supply and value chains
  3. 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.

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