Thailand and Malaysia Seek to Boost Bilateral Trade to $30 Billion

Thailand is strongly pursuing an ambitious goal of increasing bilateral trade with Malaysia to US$30 billion by 2025. This determined push will be a highlight at the upcoming Joint Trade Committee (JTC) meeting set for July 4 in Kuala Lumpur.

Chotima Iemsawasdikul, Director-General of Thailand’s Trade Negotiations Department, revealed the details, stressing the importance of this third JTC summit between the two nations. Commerce Minister Phumtham Wechayachai, representing Thailand, is preparing to spearhead the discussions. This meeting marks Thailand’s first JTC engagement with an ASEAN country for this year.

For 2023, trade between Thailand and Malaysia garnered an impressive US$25 billion, and Thailand aims to boost this figure by an additional US$5 billion by the next year. Central to these discussions will be the facilitation of market access for Thai agricultural products into Malaysia, reflecting a strategic effort to remove existing trade barriers.

The bilateral talks will also delve into new economic partnerships to bolster mutual economic benefits and encourage entrepreneurial endeavours. Particular focus will be on enhancing economic activities and streamlining trade along the border regions. Plans include the creation of a task force to oversee cross-border trade and investment and the development of a road connecting the Sadao immigration checkpoint in Thailand's Songkhla province with Malaysia’s corresponding entry point.

In the realm of trade dynamics, Malaysia is noted as Thailand’s primary trading partner within ASEAN, and fourth globally. In the first five months of this year alone, bilateral trade hit US$10.787 billion. Thai exports to Malaysia include vehicles, auto parts, and computer parts, whereas imports from Malaysia predominantly feature crude oil, circuit boards, and chemical products.

Additionally, Thailand's significant leap to the 32nd position on the Global Trade Modernisation Index 2024 underscores its moderate but improved performance in digital trade. The nation stands third among ASEAN countries, reflecting its growing readiness for digital-era commerce.

Picture courtesy: CHUTTERSNAP, Unsplash via UN

-- 2024-07-01

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