Thailand is set to participate in a Joint Trade Committee (JTC) meeting with Malaysia on July 4, aiming to boost bilateral trade to $30 billion by 2025. Commerce Minister Phumtham Wechayachai will attend the third JTC meeting in Kuala Lumpur, marking Thailand’s first JTC engagement with an ASEAN country this year.
Ambitious Trade Goals
The upcoming JTC meeting seeks to surge trade between the two nations from $25 billion in 2023 to $30 billion by next year. Director-General of the Trade Negotiations Department, Chotima Iemsawasdikul, emphasized the meeting’s prospect to enhance market access for Thai agricultural products in Malaysia.
Forging New Economic Partnerships
Thailand and Malaysia will explore new economic partnerships designed to benefit their economies and entrepreneurs. The discussions align with Minister Phumtham’s plan to promote trade, dismantle barriers, and streamline bilateral commerce. Enhancing economic ties along their shared border is also on the agenda.
Infrastructure and Cross-Border Trade
Key topics will include the formation of a task force on cross-border trade and investment. An important infrastructure project under consideration is the construction of a road connecting the Sadao immigration checkpoint in Songkhla, Thailand, with Malaysia’s corresponding checkpoint. This project targets to improve connectivity and facilitate smoother trade between the two nations.
Current Trade Landscape
Malaysia is Thailand’s prominent trading partner within ASEAN and ranks fourth overall. In 2023, trade between the two countries totaled $25 billion, with $10.787 billion recorded in the first five months of this year. Thai exports to Malaysia include cars, auto parts, and computer parts, while imports from Malaysia consist mainly of crude oil, circuit boards, and chemical products.
Advances in Digital Trade
Thailand has advanced to the 32nd position out of 65 countries on the Global Trade Modernisation Index 2024, indicating a moderate performance in digital trade. Among ASEAN nations, Thailand ranks third, demonstrating substantial progress in digital trade readiness.
The forthcoming JTC meeting is poised to enhance Thailand-Malaysia trade relations, foster economic growth, and establish robust partnerships within the ASEAN region. The results of this meeting may set a precedent for future bilateral trade initiatives across the region.
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