Indonesia–Malaysia–Singapore Growth Triangle

The Sijori was established in 1994 between three countries, Indonesia, Malaysia and Singapore, to strengthen economic links in the region and optimise the complementarity between the three countries. It started off as the SIJORI Growth Triangle in 1989, which includes Singapore, Johor (in Malaysia), and a part of Riau Islands Province (in Indonesia), specifically the Riau Archipelago.[1]

History

The SIJORI Growth Triangle is a partnership arrangement between Singapore, Johor (in Malaysia), and Riau Islands (in Indonesia) that combines the competitive strengths of the three areas to make the subregion more attractive to regional and international investors. More specifically, it links the infrastructure, capital, and expertise of Singapore with the natural and labour resources and the abundance of land of Johor and Riau.

The SIJORI Growth Triangle was first publicly announced in 1989 by Singapore Deputy Prime Minister Goh Chok Tong. The 'triangle of growth' was envisioned to be a key component of the Singapore regionalisation scheme of the 1980s and 1990s, relocating labour-intensive industries to neighbouring places such as the Malaysian state of Johor (known as the Iskandar Development Region) and the island of Batam in the nearby Indonesian province of Riau Islands.

As more Malaysian and Indonesian states joined the grouping, the IMS-GT was formed to formalise the new grouping. A Memorandum of Understanding (MOU) was signed on 17 December 1994 by the representatives of the participating countries; Singapore's Deputy Prime Minister Brigadier-General (NS) Lee Hsien Loong, Malaysia' s International Trade and Industry Minister Datuk Seri Rafidah Aziz and Indonesia's Coordinating Minister for Trade and Industry Hartono.

Even with the low wages on Batam, some companies find themselves struggling with rising costs. Nidec, a Japanese conglomerate, has moved its factory from Batam to Vietnam due to labour costs.[2]

Statistics

Batam is a tax free export zone rather than a free port, therefore much industry is limited to international exports. Batam has also become an alternate air transport hub as Javan airports are congested. Some 62,000 Singaporeans visited Batam in January 2012, compared with stronger links to Johor, some 70,000 daily.[3] Indonesia has a long way to make its Riau islands competitive with Johor.

Administrative division Area (km²) Population
JOHOR STATE, MALAYSIA
Johor Bahru District 1066 1,386,569
Kulai District 756 251,650
SINGAPORE
Singapore[4] 716 5,399,000
RIAU ISLANDS PROVINCE, INDONESIA
Batam Regency 1010.88 1,153,860
Kota Tanjung Pinang 144.6 187,359
Bintan Regency 1318.2 142,300
Karimun Regency 912.75 212,561
Entire Land Area 6,891 8,733,299

sources: (Budan Pusat Statistik 2010 Census Indonesia, Statistics Singapore, Statistics Malaysia)

For GDP stats, Riau Island's Quarterly GDP output was Rp26.510.648,31 mln (Q1/14, US$2.3 billion or US$9 billion annual)[5] Singapore's Quarterly GDP was 95,959.1 mln (Q1/14, $76.57 billion or US$310 billion annual)[6] and Johor Bharu state was RM24,452 per capita (entire 2012, US$26 billion annual).[7]

See also

References

  1. ↑ "Growth triangle". National Library Board.
  2. ↑ http://www.thejakartapost.com/news/2014/07/15/increasing-wages-driving-investors-out-batam-island.html
  3. ↑ http://www.thejakartaglobe.com/business/indonesias-batam-losing-its-economic-luster/508073
  4. ↑ http://www.singstat.gov.sg/statistics/latest_data.html#14
  5. ↑ http://kepri.bps.go.id/post/551?title=PDRB-Kepri-Triwulan-I-Tahun-2014-Tumbuh-5%2C21-Persen
  6. ↑ http://www.singstat.gov.sg/statistics/latest_data.html#1
  7. ↑ http://www.statistics.gov.my/portal/index.php?option=com_content&view=article&id=473&Itemid=111&lang=en&negeri=Johor
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