Malaysia-Thailand Border Economic Zone Also Boosts Trade With Other ASEAN Nations

KUALA LUMPUR: The development of the Malaysia-Thailand Border Economic Zone (BEZ) is expected not only to boost trade between both countries, but also between Malaysia and several other ASEAN nations.

Prime Minister, Datuk Seri Anwar Ibrahim, said in addition to development in the northern regions, including in Perlis, Kedah, Kelantan, Penang and northern Perak, sectors such as fisheries and agriculture are also expected to grow after Thailand agreed to give leeway for Malaysian products to be sent to Laos, Cambodia and Vietnam through its border.

“We are targeting, for example, increased trade between Thailand and Malaysia, which has great potential but has not been fully utilised.

“Currently, we are giving passage for food and fisheries goods from Thailand through the Peninsula to Singapore. Previously, Malaysian goods could not pass through several Thai customs restrictions to reach Laos, Cambodia and Vietnam.

“However, with this new agreement (under the Malaysia-Thailand BEZ), the Thai Prime Minister (Anutin Charnvirakul) has agreed to grant that leeway, meaning trade opportunities for Malaysia in the fisheries and agriculture sectors will be able to pass through the usual customs restrictions,” he said during Minister’s Question Time in the Dewan Rakyat today.

He was responding to the original question from Datuk Adnan Abu Hassan (BN-Kuala Pilah) regarding the economic benefits expected to be gained by Malaysia from the Malaysia-Thailand BEZ and the mechanisms to ensure that those benefits are also enjoyed by small enterprises and communities in border areas.

The Prime Minister said Anutin also agreed that focus should be given to development in the northern Peninsula and southern Thailand, especially in underserved areas, thus providing economic spillover to local residents in terms of business and employment opportunities.

He informed that under the Power Up 10K initiative, the Federal Government has approved financing to support small and medium industries (SMEs) and small traders in the north.

This involves RM400 million for entrepreneurs and cooperatives in Kelantan, RM287 million in Kedah and RM45 million in Perlis, to ensure that the interests of lower-level communities and small Bumiputera traders are not left out of increased economic activity.

“We have proposed to the state governments to develop areas around Rantau Panjang in terms of trade, traders and small operators, especially among the Malay Bumiputera community.

“This is encompassed in activities under the East Coast Rail Link (ECRL) project and the Federal Government has decided to extend it from Tumpat to Rantau Panjang and the border.

“At the same time, in discussions with Anutin, we proposed that the rail line be continued into Thailand on the same gauge, which is being discussed by the Ministry of Transport,” he said.

In response to a supplementary question from Datuk Mohd Suhaimi Abdullah (PN-Langkawi) on whether the government has set a minimum participation target for local SMEs in the Malaysia-Thailand BEZ, the Prime Minister said the matter would be given attention.

“That is why I have proposed to the state governments to provide locations, such as what is being organised by the Kelantan government upon our suggestion.

“The Federal Government can provide some funding to create job opportunities for small traders, for example around the new Rantau Panjang bridge development area in Kelantan, and to set up shops, stalls and restaurants for small traders,” he said.

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