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Thailand and Malaysia Target US$30 Billion Trade by 2027 Amid US Tariff Negotiations

2025-01-07 23:50:52.007000

In a significant diplomatic initiative, Thailand and Malaysia have set their sights on achieving US$30 billion in bilateral trade by 2027. This ambitious target was announced following Thai Prime Minister Paetongtarn Shinawatra's visit to Malaysia on December 15-16, 2024, where he met with Malaysian Prime Minister Datuk Seri Anwar Ibrahim. The discussions focused on enhancing cooperation across various sectors, including agriculture, food security, tourism, and security [06daf9ec].

During the visit, the leaders highlighted that border trade currently constitutes 30% of their total bilateral trade, emphasizing the need to bolster cross-border economic activities. To facilitate this growth, two Memoranda of Understanding (MoUs) on cross-border transportation were signed, aimed at improving logistics and connectivity between the two nations [06daf9ec].

A joint taskforce was established to focus on agriculture and food security, reflecting a commitment to address regional challenges collaboratively. Infrastructure projects were also discussed, including the Second Bridge and road alignment between ICQS Bukit Kayu Hitam and CIQ Sadao, which are expected to be completed by 2025 [06daf9ec].

In parallel, Thai Commerce Minister Pichai Naripthaphan is preparing for a visit to the United States in February 2025 to engage in negotiations aimed at preventing tariff hikes on Thai exports. This visit will include meetings with key committees such as the House Ways and Means Committee, Senate Finance Committee, and the US Chamber of Commerce, among others [aa51add6].

The minister's agenda includes discussions on strategies to promote trade and investment, particularly focusing on the 'Thailand Next Level' initiative, which aims to attract US investors in critical sectors like semiconductors and data centers [aa51add6]. Furthermore, the American Chamber of Commerce (Amcham) has proposed a 'Five to Thrive 2025' initiative to enhance business facilitation between the two countries [aa51add6].

The leaders of Thailand and Malaysia also emphasized cooperation in the halal industry and the rubber sector, with specific MoUs signed to enhance collaboration in these areas. This focus aligns with the broader goal of strengthening economic resilience and fostering partnerships in the face of global challenges [06daf9ec].

Additionally, both nations are committed to addressing transnational crime and ensuring peace in the Southern Border Provinces. This includes ongoing efforts in the Peace Dialogue Process, which aims to establish a Joint Comprehensive Plan towards Peace [06daf9ec].

The renewed focus on economic collaboration is complemented by initiatives in the digital economy and increased private sector engagement. Campaigns such as 'Visit Malaysia 2026' and 'Amazing Thailand Grand Tourism Year 2025' are set to promote cross-border travel and tourism, further enhancing the ties between Thailand and Malaysia [06daf9ec].

As both countries navigate the complexities of the global economy, their commitment to enhancing bilateral trade and cooperation is expected to yield significant benefits for their economies and contribute to regional stability. Meanwhile, Thailand's efforts to strengthen its trade relations with the US will be pivotal in mitigating potential tariff impacts and fostering a favorable investment climate [aa51add6].

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