Thailand and Malaysia enhance bilateral relations to boost border trade and tourism

A significant agreement was recently reached between the leaders of Thailand and Malaysia to bolster their bilateral relations, with a specific focus on enhancing border trade and tourism. The Thai Prime Minister, Srettha Thavisin, and his Malaysian counterpart, Anwar Ibrahim, agreed upon this during their working visit at the newly inaugurated Sadao customs checkpoint in Songkhla.

Their meeting, which took place yesterday, November 27, was a continuation of PM Srettha’s visit to Malaysia on October 11, during which joint border trade development was the primary agenda. The meeting was graced by various esteemed officials, including Sudawan Wangsupakitkosol, the Tourism and Sports Minister, Suriya Jungrungreangkit, the Transport Minister, and Malaysia’s Minister of Works, Alexander Nanta Linggi, and Minister of Tourism, Tiong King Sing.

The leaders of Thailand and Malaysia demonstrated a shared interest in advancing their cooperation, particularly in the realm of joint border trade development. The 61 year old Thai PM proposed several ideas to stimulate trade and investments. He requested Malaysia to host the Joint Trade Commission meeting at the commerce minister level to address current issues and explore potential collaborations.

The Bangkok-born prime minister also emphasised the need for expediting the Memorandum of Understanding on Cross-Border Transport of Goods and encouraged a stronger partnership among local chambers of commerce to streamline joint action plans for augmenting trade volume, tourism, and border development.

In a bid to facilitate the travel of Malaysian tourists, Thailand consented to a temporary exemption from filling TM 6 immigration clearance forms at the Sadao checkpoint from November 1 to April 30, 2024. The Thai government also disclosed its plan to establish a department under the Industry Ministry to promote Thailand’s halal food products in the field of agriculture.

Both leaders agreed to tackle wildlife smuggling across the border and expect to review a draft agreement to combat wildlife trade in February next year. They also concurred on promoting the movement of goods and people by proceeding with a road project connecting the Sadao checkpoint with the Bukit Kayu Hitam checkpoint and a bridge project linking Narathiwat’s Sungai Kolok to Kelantan’s Rantau Panjang.

Bilateral border trade

After the meeting, PM Srettha shared on Twitter that both nations have committed to augmenting bilateral border trade to US$30 million (1 billion baht) by 2025. The installation of a One Stop Service CIQ at the bustling Sadao checkpoint would be the first step in this direction, and the completion of the road and bridge projects would further stimulate trade and tourism.

The checkpoint collected revenue of 7.69 billion baht and registered trade volumes of 428.9 billion baht in the fiscal year of 2023. From October 1 last year to September 30 this year, 5,358,270 people and 656,401 trucks passed through the checkpoint.

In related news, The Thai prime minister signed an order yesterday to establish The Peace Dialogue Panel, led by Chatchai Bangchuad, deputy secretary-general of the National Security Council (NSC).

The panel, tasked with driving the peace process, will include members from the Southern Border Provinces Administration Centre (SBPAC), the Foreign Ministry, the Justice Ministry, the National Security Council, and the Internal Security Operations Command’s Region 4.