5-7-2024 (KUALA LUMPUR) In a landmark move aimed at bolstering regional economic cooperation, Commerce Minister Phumtham Wechayachai of Thailand attended the third Joint Trade Committee (JTC) meeting with Malaysia on Thursday, marking Thailand’s first such engagement with an ASEAN nation this year. The gathering, held in the Malaysian capital, carried the weight of ambitious aspirations, as both nations set their sights on fostering closer trade ties and unlocking new economic opportunities.
At the heart of the discussions lay the shared goal of propelling bilateral trade from its current level of US$25 billion in 2023 to an impressive US$30 billion by 2027. This ambitious target underscores the unwavering commitment of both countries to deepen their economic partnership and unlock the full potential of their commercial relations.
“Thailand is in talks with Malaysia’s Customs Department to allow the import of cattle, pork and Javanese doves, including certifying Thai manufacturers of fresh, chilled and frozen chicken products to export to Malaysia,” Phumtham Wechayachai revealed, highlighting the tangible steps being taken to expand market access for Thai agricultural products in the Malaysian market.
Beyond mere trade figures, the meeting presented a unique opportunity to cultivate economic connections along the shared border regions. Recognizing the strategic importance of these areas, both nations expressed a keen interest in discussing the formation of a collaborative task force on cross-border trade and investment. This initiative, spearheaded by Malaysia’s Ministry of Investment, Trade and Industry, and Thailand’s Commerce Ministry, is slated to convene later this month, further underscoring the urgency and commitment to fostering seamless economic integration.
In a bold and visionary move, Thailand proposed a “twin-city” project aimed at transforming the nation’s five southernmost provinces – Satun, Songkhla, Yala, Pattani, and Narathiwat – into thriving economic hubs through strategic partnerships with their Malaysian counterparts, namely Perlis, Kedah, Perak, Terengganu, and Kelantan. This initiative carries the promise of turning former conflict zones into vibrant trade arenas, paving the way for lasting peace and prosperity.
Acknowledging the pivotal role of infrastructure in facilitating cross-border commerce, both countries took note of the progress made on the construction of a road connecting the new Sadao immigration checkpoint with Malaysia’s Bukit Kayu Hitam ICQS, scheduled for completion in 2025. This vital transportation link is poised to serve as a catalyst for enhanced trade flows and economic integration between the two nations.
Recognizing the importance of streamlining cross-border movement, Phumtham Wechayachai urged the Malaysian side to expedite the consideration of a draft Memorandum of Understanding (MoU) on cross-border transport of goods and passengers. The MoU, expected to be signed by the end of the year, promises to facilitate border trade activities and foster greater efficiency in the movement of goods and people.
The meeting also highlighted the shared commitment to forging new partnerships that will benefit the economies and entrepreneurs of both nations, aligning with policies aimed at promoting trade, reducing obstacles, and enabling bilateral commerce. These efforts encompass working together to open more halal market channels in Malaysia for Thai farmers and entrepreneurs, as well as exploring potential collaborations in the burgeoning digital economy.
In a gesture of goodwill and economic cooperation, the Thai government extended an invitation to the Malaysian delegation to participate in the upcoming Border Trade Expo in Songkhla, as well as other trade events hosted in Thailand. Such initiatives not only serve to showcase the diverse array of products and services offered by both nations but also provide valuable networking opportunities for businesses seeking to expand their reach and forge new partnerships.
Malaysia stands as Thailand’s number one trading partner within the ASEAN bloc and ranks an impressive fourth overall. The robust trade figures, totaling US$25 billion in 2022 and a staggering US$10.7 billion during the first five months of this year, bear testament to the deep economic ties between the two nations. With exports to Malaysia amounting to US$5 billion and imports tallying US$5.7 billion, the stage is set for further growth and mutual prosperity.
