Thailand Backs ASEAN-India Free Trade Zone, Aims for $30B Malaysia Trade
Commerce Minister Suphajee Suthum-pun has announced Thailand’s support for establishing an ASEAN-India Free Trade Area (FTA) during high-level talks in Kuala Lumpur. The minister also revealed ambitious plans to boost bilateral trade with Malaysia to $30 billion by 2027.
Key Takeaways
- Thailand supports ASEAN-India FTA, urges conclusion this year
- Target: Increase Thailand-Malaysia trade to $30 billion by 2027
- Current trade stands at $26.05 billion with Thailand facing $1.38 billion deficit
- Focus on border trade, transport connectivity and Halal food cooperation
Strengthening Regional Partnerships
After meeting Malaysia’s Trade and Industry Minister Tengku Zafrul Aziz at the ASEAN Economic Community Council Meeting, Minister Suphajee confirmed Thailand’s readiness to back the ASEAN-India FTA plan. She proposed that pooling both countries’ strengths in food and agricultural production would enhance regional food security amid growing threats from climate change, conflict and pandemics.
Thailand expressed readiness to export key agricultural products and serve as a raw material supplier to Malaysia, particularly in rubber, shallots and livestock products.
Trade Expansion Plans
Both countries agreed to continue bilateral discussions through the Thailand-Malaysia Joint Trade Committee (JTC), with Thailand offering to host the next meeting. The talks will focus on deepening collaboration in border trade, transport connectivity and Halal food.
Malaysia currently stands as Thailand’s fourth-largest trading partner globally and its leading ASEAN and border trade partner. In 2024, total trade reached $26.05 billion, with Thai exports at $12.33 billion and imports at $13.72 billion, resulting in a $1.38 billion trade deficit for Thailand. Border trade accounted for 35.6% of total bilateral trade.
Thailand’s major exports included automobiles and parts, refined oil, integrated circuits, computers and components, and rubber. Major imports from Malaysia included crude oil, integrated circuits, chemicals, computers and components, electrical machinery and natural gas.
ASEAN-India FTA Push
Both sides discussed the ASEAN-India FTA talks aimed at expanding market access and reducing trade barriers. Minister Suphajee urged Malaysia, as the negotiation chair, to conclude the talks this year by minimizing regulatory and trade restrictions to make the agreement more feasible for exporters.
Regional Security Cooperation
Meanwhile, Prime Minister Anutin Charnvirakul outlined priorities for ASEAN cooperation at the 47th ASEAN Summit Plenary Session. Government spokesman Siripong Angkasakulkiat said Thailand will build a secure ASEAN community by working with member countries to tackle security threats.
