New border bridge, rail link: Malaysia, Thailand eye deeper economic ties in border regions, but hurdles remain

Improved transportation links will also allow goods shipped via the Gulf of Thailand to be moved by land to the Durian Burung checkpoint in Malaysia’s Kedah state, Piyasiri said, turning the area into a “distribution hub”.

“Talks with logistics operators in Tepa found that they are looking to increase their workforce to support their expansion,” he added.

“If the government works on driving this project, it will mean greater employment for people in the area, which will steer locals away from illegal activities.”

COOPERATION SHOULD MOVE BEYOND COMMODITIES

But to achieve the US$30 billion bilateral trade target by 2027, an expert said Malaysia and Thailand must broaden beyond commodities into services, green technology and digital trade.

Hazmi Rusli from Universiti Sains Islam Malaysia said both governments should deliver existing border improvement projects to “unlock throughput”, and pull in private capital and start-ups through “predictable, transparent incentives and streamlined border procedures”.

“Since the target was announced in December 2024, Thailand has seen leadership changes,” he said.

“The bilateral relationship is resilient, but such transitions can slow decisions on complex, capital-intensive joint projects until Cabinet priorities settle.”