Thailand, Malaysia eye 1 trillion baht in mutual trade by 2027
The initial set-up will see Thailand’s five southernmost provinces paired up with Malaysian counterparts in a bid to boost trade and investment
At the 3rd Thailand-Malaysia Joint Trade Commission meeting this week, both sides agreed to boost their trade of agricultural and halal products. The aim is to achieve the mutual target of US$30 billion (1 trillion baht) worth of trade by 2027.
Summarising the meeting that he attended in Kuala Lumpur, Commerce Minister Phumtham Wechayachai said on Thursday that both sides had vowed to work closely with their trade and investment committees to address problems related to cross-border trade and investment.
He said Thailand had proposed the idea of matching the economies of five Thai southern border provinces with Malaysian counterparts. Under the initiative, Narathiwat province will be paired up with Kelantan, Songkhla with Kedah, Satun with Perlis, Yala with Perak, and Pattani with Terengganu. The paired-up provinces will trade products and promote investment, with a focus on agricultural and halal food products in each other’s markets.
Phumtham, who doubles as deputy prime minister, said the authorities also discussed the drafting of a memorandum of understanding (MOU) to facilitate the transport of products and passengers across Thai-Malaysian borders. The MOU is expected to be signed within this year.
He added that the meeting also checked the progress made in the road construction project linking the new Sadao border checkpoint in Songkhla with the Bukit Kayu Hitam checkpoint in Malaysia. The road, which is expected to open next year, will boost the transport of goods as well as tourism between the two countries. This will also facilitate future cooperation in several fields, Phumtham said.
The meeting also discussed cooperation in the digital economy and data sector, which both governments have placed as top priority, especially in terms of supporting each other in the process of digital transformation and infrastructure building.
Phumtham said he has asked his Malaysian counterpart to accelerate the approval of more imports from Thailand, such as beef, pork, frozen chicken, and singing zebra doves.
Last year, Malaysia was Thailand’s fourth largest trade partner and the top most in ASEAN, with a total trade value of $25.11 billion.
In the first five months of this year, Thailand exported $5.04 billion worth of products to Malaysia and imported $5.74 billion worth.
