KUALA LUMPUR: Thailand and Malaysia are strengthening trade relations with an ambitious goal of increasing bilateral trade to US$30 billion by 2027.

In his official visit to Malaysia as Thailand Trade Representative, H.E. Umesh Pandey emphasised the importance of enhancing economic cooperation and removing trade barriers to ensure both countries fully capitalize on their respective strengths.

“Malaysia is one of our most prosperous neighbours. If we want to expand, Malaysia is among the best markets to enter and vice versa,” said Umesh.

His visit underscores both nations’ commitment to achieving this goal through strategic initiatives:

1) Leveraging Complementary Sectors for Mutual Growth

Thailand and Malaysia have distinct advantages in key industries, which can be harnessed for greater economic synergy.

• Malaysia excels in halal industries, agricultural biotechnology, and financial services.
• Thailand is renowned for its automotive sector, medical innovations and construction materials.

“By leveraging each other’s strengths, both countries can accelerate economic growth and expand investment opportunities,” Umesh noted.

2) Enhancing Border Trade Efficiency

Currently, about 25% of Malaysia-Thailand trade occurs along border areas.

To improve trade flows, Umesh expressed his intention to personally assess border challenges and identify practical solutions.

He stressed the need to simplify trade procedures, reduce non-tariff barriers and enhance logistics efficiency to reach the US$30 billion target ahead of schedule.

3) Strengthening Business Connectivity

Thailand recently facilitated a business matchmaking session in Malaysia, bringing over 20 Thailand companies to explore collaboration opportunities.

“Even if just 10% of these companies successfully form partnerships, it would already be a significant achievement,” he affirmed.

4) Malaysia as ASEAN Chair: Bigger Role, Greater Responsibility

With Malaysia now holding the ASEAN Chairmanship, he highlighted the country’s pivotal role in driving regional economic integration.

“This is an opportunity for Malaysia to lead ASEAN’s efforts in deepening economic cooperation,” he said.

He further emphasized that ASEAN unity is key to regional economic stability, particularly in navigating global uncertainties.

5) The Future of Thailand-Malaysia Trade

The US$30 billion target is more than just a number as it represents a shared aspiration to foster prosperity for both nations.

By removing trade restrictions, improving logistics, and promoting cross-border investments, Thailand and Malaysia can establish a more resilient and competitive economic ecosystem.

Thai Prime Minister Paetongtarn Shinawatra reaffirmed Malaysia’s significance as one of Thailand’s largest ASEAN trading partners, with an average annual trade value of US$24.73 billion from 2017 to 2023.

Umesh remains optimistic, believing that with sustained efforts and strong political will, this goal can be achieved even before 2027, setting a benchmark for ASEAN-wide trade collaboration.