Growth triangles in ASEAN

This report offers an insight into the growth triangle phenomenon with emphasis on growth triangles in the Asean region. Growth triangles have emerged as a result of two forces, namely, regional co-operation and large flows of foreign direct investments. The term "growth triangle" was launched to describe the subregional co-operation involving Singapore, Southern Johor of Peninsular Malaysia and the Riau province (SIJORI). The SIJORI story is highlighted to allow the reader to appreciate the workings of growth triangles. Based on the evaluation of the experiences of SIJORI and Southern China Growth Triangle, which are hailed as models for economic co-operation, we derived the theoretical determinants for success. The determinants form the framework for our analysis of the Northern and Eastern Asean Growth Triangles. We conclude that the Northern Eastern Triangle has fulfilled all the requirements of the framework and is likely to follow the lead of SIJORI. However, the smooth operation of Eastern Asean Triangle could be threatened by high risk of political instability and lack of complementarity between the parties. Finally, the importance of growth triangles is highlighted as the building ground for the realization of Asean Free Trade Area (AFTA) in the near future.ACCOUNTANC