Thai PM: Economic Corridor Crucial To US$30 Bln Trade Target With Malaysia

By Linda Khoo

KUALA LUMPUR, Feb 15 (Bernama) -- Thailand and Malaysia are accelerating efforts to unlock the full potential of cross-border trade and investment, aiming to establish a thriving economic corridor along their shared border.

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Thai Prime Minister Paetongtarn Shinawatra has emphasised the importance of stronger ties, streamlined regulations, and enhanced infrastructure to achieve a US$30 billion bilateral trade target by 2027.

Paetongtarn, 38, noted that Malaysia is one of Thailand's largest trading partners in ASEAN, with an average trade value of US$24.73 billion per annum from 2017 to 2023.

“With border trade currently accounting for more than 30 per cent of the total bilateral trade value, economic activities along the Thai-Malaysia border are key drivers of both countries' economic development.

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“I believe that there is still room to grow, and both countries should encourage greater cross-border trade and investment to achieve the targeted trade value of US$30 billion,” she told Bernama in a written interview.

Thailand remains a key trading partner for Malaysia, ranking as its sixth-largest globally and second-largest within ASEAN  in 2023, with bilateral trade valued at US$24.83 billion (RM113.16 billion). Between January and October 2024, trade between the two nations reached US$20.75 billion (RM95.50 billion), surpassing the US$20.69 billion (RM94.37 billion) recorded during the same period in 2023.

Paetongtarn, who has served as the 31st prime minister of Thailand since Aug 16, 2024, said Thailand and Malaysia are prioritising the integration of Special Border Economic Zones (SBEZs) to boost cross-border trade and investment.

"Prime Minister (Datuk Seri) Anwar Ibrahim and I have urged concerned authorities to link the SBEZs more closely to provide our private sectors with greater opportunities and create more job opportunities for people in the border areas. We are also supporting investment activities in various common-interest industries, especially the halal and rubber industries, by developing a business-friendly environment for investors, and supporting private sector cooperation from both sides,” she added.

These commercial and investment activities will be supported by seamless cross-border transportation of goods and passengers, facilitated through the synchronisation of rules and regulations, expedited negotiations on relevant memoranda of understanding (MOUs), and the development of key connectivity projects. These include the road alignment linking the new CIQ Sadao in Songkhla with the ICQS of Bukit Kayu Hitam in Kedah, and the second bridge connecting Rantau Panjang and Sungai Kolok.

“Prime Minister Anwar and I also concurred on advancing progress of the integrated double-track rail link, especially at Padang Besar, as well as the high-speed rail alignment,” Paetongtarn said.

She added that Thailand and Malaysia are enhancing border security and connectivity, ensuring safe and lawful crossings while combating illegal migration, drug trafficking, and smuggling. The youngest daughter of former Thai Prime Minister Thaksin Shinawatra said both nations are committed to securing border areas to facilitate economic activities and improve livelihoods.

To support these efforts, ongoing road and rail projects are being developed to boost cross-border trade and ensure the safe movement of people. Future initiatives to further enhance border connectivity and transport safety include the Andaman Gateway in Satun and a new bridge linking Tak Bai to Pengkalan Kubor.

“Our border agencies continue to collaborate and exchange information towards securing border areas for economic activities and the livelihoods of our peoples. I believe these efforts will contribute to seamless regional connectivity, aligning with Malaysia’s East Coast Rail Link (ECRL) and ASEAN Express, as well as the Master Plan on ASEAN Connectivity 2025,” she said.

-- BERNAMA