The Thailand-Malaysia Special Economic Zone (SEZ): Addressing Balanced Development, Border Security & the Beginning of ASEAN Synergy

INSAP – ASEAN Discussion Papers #2024-0901

Formal large-scale conversations on Malaysia-Thailand Special Economic Zone (SEZ) took place in late 2023 when Malaysia’s Prime Minister Datuk Seri Anwar Ibrahim and his Thailand counterpart (now former Prime Minister) Srettha Thavisin with an announcement that both countries agreed to turn the border shared between the two countries into a trade zone. As official discussions between the two governments resume with the new Thai Prime Minister Paetongtarn Shinawatra, when it happens, it becomes increasingly imperative to delineate clear implementation strategies for the proposed Northern Malaysia–Southern Thailand SEZ, complete with well-defined timelines and actionable frameworks.

At the same time, there is no doubt that Malaysia will continue the ASEAN centrality and integration agenda in order to make regionalism work, when it takes over the ASEAN Chairmanship in 2025. At the same time, Malaysia and ASEAN for that matter, needs to acknowledge that the bilateral arrangements and cooperations between member states, such as the Malaysia-Thailand cooperation, are also important component that could complement the ASEAN framework as a whole. Rather than competing, this collaboration presents an opportunity for genuine integration through joint operations, where industries complement rather than compete with each other, embodying true vertical integration. This approach perfectly aligns with what could be an ASEAN Synergy 2025 – though not an official vision, it embodies the spirit INSAP believes we should strive for.

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