The SIJORI growth triangle : territorial complementarities or competition for FDI in the oil and gas industry?

After some initial euphoria, the SIJORI Growth Triangle — formed by Singapore, Johor (Malaysia) and Riau Islands (Indonesia) — seems to have been forgotten. The growth triangle concept was developed to enhance the attractiveness of the three territories for foreign investment. This paper aims to explore whether firms in the oil and gas industry are making use of the different factor endowments accessible in close spatial proximity. Based on FDI data and expert interviews, it is observed that Singaporean firms are, in fact, taking advantage of the different factor endowments that SIJORI offers, especially in sectors related to storage and and offshore equipment manufacturing. However, in the case of Johor and Riau Islands, the focus continues to be on lower value-added activities. (J SEA Econ/GIGA)