Bangkok:Malaysia The Malaysian government is intensifying efforts to achieve a US$30 billion bilateral trade target with Thailand by 2027. This initiative includes enhancing border infrastructure, facilitating cross-border financing, and improving trade measures as outlined in Budget 2027, according to Finance Minister II Datuk Seri Amir Hamzah Azizan.
According to BERNAMA News Agency, bilateral trade between Malaysia and Thailand reached RM85.08 billion in the first seven months of 2026, compared to RM66.95 billion during the same period in the previous year. Trade along the Bukit Kayu Hitam-Sadao corridor amounted to RM27 billion in the first half of 2026.
Amir Hamzah highlighted that Budget 2027 encompasses measures to bolster the Delapan Special Border Economic Zone and introduces a cross-border financing framework with the Labuan International Business and Financial Centre to support multi-currency transactions. These measures were discussed during a Policy Dialogue involving the Ministry of Finance, the Thailand Development Research Institute, and the Malaysia-Thailand Chamber of Commerce.
Additional initiatives include creating direct access from the East Gate of the Bukit Kayu Hitam Immigration, Customs, Quarantine and Security Complex to the inland container depot to expedite cargo movements. Trade facilities at the Perlis Inland Port will also be enhanced.
The dialogue was part of the International Monetary Fund-World Bank Group Annual Meetings 2026, organized by the Investment, Trade and Industry Ministry in Bangkok and the Malaysia-Thailand Chamber of Commerce.
Amir Hamzah also mentioned the introduction of the Malaysian ASEAN Business Entity (MA-ABE) status, designed to aid Malaysian companies in regional expansion by easing staff mobility and reducing administrative hurdles. He stressed the importance of deeper ASEAN economic integration in light of geopolitical tensions, evolving trade patterns, technological changes, and climate challenges.
In 2025, ASEAN accounted for 25.4 percent of Malaysia's total trade, with Malaysia-Thailand trade reaching RM118 billion. Malaysian exports to Thailand increased by 8.6 percent to RM64.07 billion, while imports from Thailand were RM54.50 billion. The two nations are interconnected through regional production networks covering electronics, automotive, machinery, agriculture, food, energy, services, and the digital economy.
Malaysia's trade with ASEAN grew by 21.5 percent to RM454.5 billion in the first half of 2026. Amir Hamzah noted that ASEAN had eliminated tariffs on nearly 98.86 percent of products under the ASEAN Trade in Goods Agreement as of 2025, with remaining barriers primarily concerning standards, regulations, customs procedures, licensing, and documentation.
He emphasized the significance of translating ASEAN's commitments into tangible reductions in the time and cost of cross-border trade, following the signing of the second protocol to amend ATIGA in October 2025, which extends cooperation to areas such as supply chain connectivity, trade, environment, and food security.