Thailand, Malaysia Set Sight On US$30 Bln Trade By 2027, Greater Cross-border Ties

By Nabilah Saleh

KUALA LUMPUR, Dec 28 (Bernama) – Thailand and Malaysia are strengthening bilateral relations with an aspiring plan to achieve US$30 billion bilateral trade target by 2027, while prioritising greater cross-border trade promotion and facilitation in key sectors.

The recent visit by Thai Prime Minister Paetongtarn Shinawatra to Malaysia from Dec 15 to 16 at the invitation of Malaysia's Prime Minister Datuk Seri Anwar Ibrahim has catalysed renewed efforts to foster economic collaboration and deepen ties between the two nations.

Thailand’s ambassador to Malaysia, Lada Phumas, said both nations are prioritising greater cross-border trade promotion and facilitation, particularly in the halal and rubber industries.

“To achieve this target, both sides agreed to promote cross-border trade, including joint export activities in halal goods and services, R&D (research and development) of halal products and collaborative efforts to develop a sustainable rubber trade and supply chain, considering the growing demands and trends of the two sectors," she said.

Lada, in a written statement to Bernama following Paetongtarn’s inaugural visit to Malaysia, said a joint taskforce on agriculture and food security, including halal cooperation, is being expedited to boost economic opportunities.

She said cross-border connectivity remains a cornerstone of the bilateral relations with infrastructure projects playing a critical role.

Lada highlighted the progress of two major infrastructure projects, namely the Second Bridge linking Rantau Panjang, Kelantan and Su-Ngai Kolok, Narathiwat, and the road alignment linking ICQS Bukit Kayu Hitam and the new CIQ Sadao.

“These projects will ease the cross-border flow of goods and passengers, elevating trade, investment and tourism activities.

"The checkpoints are vital to local economies, with ICQS Bukit Kayu Hitam – CIQ Sadao accounting for approximately 33 per cent of Thailand’s border trade volume,” she said.

The road alignment linking ICQS Bukit Kayu Hitam and the new CIQ Sadao is expected to be completed by 2025, alongside ongoing discussions on memoranda of understanding (MoUs) for cross border transport of goods and passengers to boost regional integration further, she said.

“Both (Thailand and Malaysia) leaders urged the relevant authorities to expedite discussions to conclude these MoUs, which would further boost two-way economic activities and people-to-people connectivity along the border. This, in fact, could contribute to our ASEAN regional integration,” Lada said.

Highlighting the importance of the digital economy, she said both nations should fully utilise the potential of an MoU between Thailand's Digital Economy Promotion Agency (DEPA) and the Malaysia Digital Economy Corporation (MDEC), signed in 2003.

"This aims to create a conducive environment in support of potential technology companies in both countries,” she said.

In stressing the critical role of the private sector in driving trade and investment, Lada said: “I encourage Thai and Malaysian businesses to engage in more regular dialogues and activities such as trade fairs, exhibitions and meetings.”

According to Lada, at the core of the discussions between Paetongtarn and Anwar was the commitment to enhance political and security collaboration, with a particular focus on combating transnational crimes and fostering peace in Thailand’s Southern Border Provinces (SBPs).

The connected borders remain a cornerstone of bilateral ties, with both nations agreeing to strengthen efforts in border management and tackling issues such as human trafficking, drug smuggling, cybercrime, international terrorism and extremism, she said.

“The cooperation will include information and intelligence sharing, as well as promoting moderation and best practices in deradicalisation programmes.” 

According to Lada, Malaysian and Thai leaders also addressed the need for enhanced coordination among law enforcement and border management agencies to address emerging challenges such as online job scams, with timely and effective responses.

Both prime ministers commended the positive progress in the ongoing Peace Dialogue Process in the SBPs.

“The development of the Joint Comprehensive Plan towards Peace (JCPP) reflects the mutual trust and confidence shared by the parties, providing a roadmap to create a conducive environment for lasting peace,” she said.

The visit also witnessed the signing of two MoUs – one on rubber industry cooperation and another on cultural exchange.

“These agreements are timely, particularly for the rubber industry, given the global focus on sustainability. They include R&D collaborations and exchanges of best practices, which will enhance the existing cooperation,” Lada said.

On the cultural front, Lada said Thailand and Malaysia agreed to deepen ties through initiatives such as the ASEAN Heritage Train and other collaborative projects.

Tourism collaboration under the "6 Countries, 1 Destination" initiative featured prominently in bilateral ties, comprising various activities aimed at easing border crossings, coordinating promotional campaigns and enhancing travel connectivity.

“It is not only a two-way tourism promotion but also a win-win cooperation for all participating countries and beyond,” she said.

-- BERNAMA