part is contributing technical know-how, skill and managerial personnel, and in some
cases product design, and marketing channel. Via the relocation of production
processes, China's manufactures can be upgraded and product quality improved whereas
Hong Kong's and Taiwan's economic structure can be transformed. Hong Kong also acts
as the major entrepot for China. In 1990, 60% of China's exports went through
Hong Kong, making use of Hong Kong's physical infrastructure and professional services.
Similar to the South China Economic Zone, the Growth Triangle comes into
existence mainly because of three factors: (1) complementary resources, (2) geographical
proximity and (3) shared economic interests." Since the three member countries are
at different stages of economic development, there is much room for complementarity.
Specifically, Indonesia can offer ample land, natural resources and abundant labour,
Malaysia can offer skilled workers whereas Singapore can offer infrastructural facilities
such as telecommunications, technological expertise and financing. Furthermore,
geographical proximity of the three places reduces transportation cost and time and
enhances efficient coordination of activities.
Economic zones of this nature is expected to prosper along the West Pacific
Economic Corridor and is going to generate long term effects on the region. Just
imagine what China, Hong Kong and Taiwan can do together when these three places
share their factors of production, markets and production processes. The South China
Economic Zone could become a large market and is ready a huge production base.
These economic zones along the Western Pacific Basin are also interacting and in fact
interlocking with each other. They do not grow and develop independent of the others.
The sub-regional type of economic cooperation in Asia Pacific will generate sufficient
momentum to sustain rapid economic growth in the region for a long time to come.
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