Kuala Lumpur: Sub-regional initiatives such as the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) and the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) have not only borne fruit significantly but proven to be vital complements to the ASEAN Economic Community (AEC) in boosting trade, investment, and regional connectivity.

According to BERNAMA News Agency, UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan highlighted that while the AEC sets a broad macroeconomic framework, prioritising sub-regional areas has also addressed developmental disparities by targeting marginalised and less-developed areas while operationalising ASEAN’s inclusive growth agenda.

“The IMT-GT hugs the Strait of Malacca, one of the world’s busiest trade routes, while the BIMP-EAGA sits along the Sulu and Sulawesi Seas, a gateway for maritime connectivity, making them natural nodes for boosting trade, investment, and connectivity across ASEAN and beyond,” Mohd Sedek stated. He noted that their strength lies in their focus on what economists call ‘spatial economics’-targeting lagging regions with tailored interventions.

These sub-regions are strategically positioned along critical maritime corridors. Mohd Sedek elaborated that IMT-GT focuses on agro-processing and tourism, capitalising on the complementarities between southern Thailand, northern Peninsular Malaysia, and Sumatra, while BIMP-EAGA leverages its strengths in fisheries, renewable energy, and ecotourism.

“This is not a one-size-fits-all approach; it is about leveraging local advantages to plug into regional and global value chains,” he added. Both sub-regional initiatives are set to develop special economic zones (SEZs), which act as economic catalysts by attracting foreign investments, sparking industrial growth, and creating jobs through incentives and streamlined regulations.

In the IMT-GT, zones such as Medan and Bukit Kayu Hitam in Malaysia, or Sei Mangkei in Indonesia, are already active, while BIMP-EAGA boasts over 60 SEZs from Bitung in Indonesia to Zamboanga in the Philippines. “These zones are not just factories-they are engines of structural transformation, fostering ‘agglomeration economies’-clusters where businesses, workers, and infrastructure feed off each other to drive growth,” Mohd Sedek explained.

By linking these SEZs to cross-border trade and investment, IMT-GT and BIMP-EAGA are building bridges to ASEAN’s broader economic cohesion.