KUALA LUMPUR: Major upgrade of trade logistics and cross-border infrastructure between Malaysia and Thailand are important to spur bilateral trade and seamless trade connectivity for both countries.
Thailand ambassador to Malaysia Narong Sasitorn said having too much trade reliance linked with China may affect supply chain, tourism and investment.
“Instead, we need to look at our inner strength within Asean in terms of intra-trade. We have only 25 per cent of total trades comes from Asean and the European Union account for over 60 per cent,” he said at CIMB Asean Research Institute’s (CARI) roundtable series on “Malaysia-Thailand: Towards Connectivity Beyond Borders” here today.
Narong said both countries should also embark on long-term investment for infrastructure projects to improve connectivity, while easing congestion at the borderline.
“Malaysia can also take a full advantage on the infrastructure in Thailand with immediate access to the growing market such as Cambodia, Myanmar and Southern China,” he added.
Narong said infrastructure projects connecting both countries should also be revisited to ease the flow of goods (logistics).
Narong said Malaysian companies could benefit from the economic opportunities in Thailand as billions are expected to be spent to expand the country's infrastructure network, particularly in rail.
He said Thailand has allocated about 80 per cent of its national budget for infrastructure, mainly railways.
According to Malaysia External Trade Development Corp (Matrade), the country’s total trade with Thailand stood at US$24.14 billion (RM99.98 billion) last year.
Matrade said Malaysia’s exports to Thailand contracted by 2.2 per cent to RM55.81 billion in 2019, underpinned by lower exports of electrical and electronic products.
However, exports of liquefied natural gas, machinery, equipments and parts, iron and steel products as well as transport equipment increased.
Meanwhile, Malaysia’s imports from Thailand posted at US$10.66 billion (RM44.17 billion) last year.
Bumiputera Agenda Steering Unit chairman Datuk Seri Mustapa Mohamed said expansion of border linkages are required to promote future traffic growth at the northern part of Malaysia and southern of Thailand.
“It is understood that the two governments (Malaysia and Thailand) have approved the expansion of the Rantau Panjang-Golok Bridge and new bridge between Takbai and Pengkalan Kubor.
“However, these projects have not taken off. We have to build for the future and plan now. The fact is traffic is building up, more people-to-people connectivity and tourists between the countries,” he added.
Mustapa said presently Malaysia, via Kelantan, and Thailand were connected at three points namely Pengkalan Kubor-Tak Bai, Rantau Panjang-Sungai Golok and Bukit Bunga-Buketa, all of which requires an upgrade.
Mustapa is hopeful that the government would seriously consider the Bukit Bunga-Buketa “friendship bridge”, expand existing Rantau Panjang-Buketa bridge and proceed with the proposed Pengkalan Kubor-Tak Bai bridge.
CARI chairman Tan Sri Dr. Munir Majid said the entry points at the boarders could become a chokepoint if Malaysia did not participate in border connectivity infrastructure.
“We want gateway not a chokepoint and we (relevant parties) should start small and think big to ensure seamless connectivity at the boarders,” he said.
Munir said it was imperative for Asean to push for greater seamless trade connectivity amid unstable international security and trade environment.
He believes Malaysia and Thailand can serve as a vanguard to help expedite the Master Plan on Asean Connectivity 2025 encompasses the physical, institutional and people-to-people linkages to provide the foundational means in achieving the Asean Community 2025.
Thailand former Transport Minister Arkhom Termpittayapaisith said improved physical and institutional connectivity between Malaysia and Thailand would not only improve the efficiency of logistics and trade flows.
“It also stimulates more investment and economic dynamism along the integrated belt of regional supply chain,” he said.