Thailand expects to improve 2017 trade volume with Malaysia

KUALA LUMPUR: Thailand’s exports to Malaysia is expected to improve by three per cent this year from its 1.5 per cent growth in 2016, as the economic recovery in both countries strengthens bilateral trade.

Thailand’s Ambassador to Malaysia, Damrong Kraikruan said the positive current economic scenario and improvements to the ringgit and baht had encouraged growth in demand in both countries.

“The trade volume last year was about US$20 billion (US$1 = RM4.28) compared to US$22 billion in 2015.

“Malaysia was Thailand’s fourth largest trading partner, and both countries are working together to increase the trade volume,” he told Bernama.

Damrong said the agreement in 2015, where both countries agreed to use the Thai baht and Malaysian ringgit instead of the US dollar, would help increase the trade volume and continue to do so in the next five years at a moderate pace.

Thailand’s top exports to Malaysia includes petroleum, auto and computer parts, food products, and electrical appliances.

Moving forward, Damrong said Malaysia and Thailand should improve facilities such as road, rail, sea and air transportation infrastructure, while addressing the congestion issue at the border to further improve trade.

On Thailand’s halal food industry, Damrong said the kingdom is one of the top ten exporters globally.

“The issue over the halal status is the key factor making it difficult for Thailand’s food products to penetrate Malaysia’s market.

“We are still looking for solutions with regards to this issue. We believe there is a need to increase our promotional efforts towards changing Malaysia’s perception of our halal food and products. We need to assure Malaysian consumers that our halal certification is as good as that from the Malaysian Islamic Development Department (Jakim),” he added. — Bernama