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Accelerated industrialization strategies adopted by most of the developing countries in Asia in the post World War II period had been generally successful. However, one of the serious consequences is the ever widening regional disparities within these countries, due to polarization of modern industries in one or few relatively developed regions. The ASEAN countries, especially Malaysia, Thailand, Indonesia and the Philippines provide typical examples of the above phenomena. This paper discusses the policy measures adopted by the above countries for decentralization of manufacturing industries from the core region. The role of transportation infrastructure in regional development is assessed along with the above policies.

IMPACT OF INFRASTRUCTURE ON DECENTRALIZATION OF MANUFACTURING INDUSTRIES IN ASEAN COUNTRIES