Malaysia Steps Up Efforts To Achieve US$30 Billion Trade Target With Thailand
By Kenny Teng Khoon Hock
BANGKOK, Oct 15 (Bernama) -- Malaysia is stepping up efforts to achieve its US$30 billion bilateral trade target with Thailand in 2027 through improved border infrastructure, cross-border financing and trade facilitation measures under Budget 2027, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
Amir Hamzah said bilateral trade reached RM85.08 billion in the first seven months of 2026, compared with RM66.95 billion in the same period last year, while trade along the Bukit Kayu Hitam-Sadao corridor totalled RM27 billion in the first half of this year.
"Budget 2027 includes measures to strengthen the Delapan Special Border Economic Zone, including a cross-border financing framework with Labuan International Business and Financial Centre to facilitate multi-currency transactions," he said in a speech at the Policy Dialogue between the Ministry of Finance (MoF), Thailand Development Research Institute and Malaysia-Thailand Chamber of Commerce (MTCC) here today.
He added that other measures include direct access linking the East Gate of the Bukit Kayu Hitam Immigration, Customs, Quarantine and Security Complex to the inland container depot to expedite cargo movements, as well as improved trade facilities at Perlis Inland Port.
The dialogue, held in conjunction with the International Monetary Fund-World Bank Group Annual Meetings 2026, was organised by the Investment, Trade and Industry Ministry (MITI) Bangkok and MTCC.
Meanwhile, Amir Hamzah also highlighted the Malaysian ASEAN Business Entity (MA-ABE) status, which aims to help Malaysian companies expand across the region by facilitating staff mobility and reducing administrative barriers.
He said deeper ASEAN economic integration was essential amid geopolitical tensions, shifting trade patterns, technological disruption and climate pressures.
"ASEAN accounted for 25.4 per cent of Malaysia’s total trade in 2025, with bilateral trade between Malaysia and Thailand reaching RM118 billion. Malaysian exports to Thailand rose 8.6 per cent to RM64.07 billion, while imports from Thailand totalled RM54.50 billion.
"The two countries are closely linked through regional production networks spanning electronics, automotive, machinery, agriculture, food, energy, services and the digital economy," he said.
He added that Malaysia’s trade with ASEAN grew 21.5 per cent to RM454.5 billion in the first half of 2026.
Amir Hamzah said ASEAN had eliminated tariffs on about 98.86 per cent of products under the ASEAN Trade in Goods Agreement (ATIGA) as of 2025, with remaining barriers largely involving differences in standards, regulations, customs procedures, licensing and documentation.
He explained that the second protocol to amend ATIGA, signed in October 2025, extends cooperation to supply chain connectivity, trade and the environment, and food security.
"ASEAN must now translate its commitments into tangible reductions in the time and cost of cross-border trade," he said.
-- BERNAMA