Thailand is being urged to tap Malaysia's Penang port and work more closely to create better connectivity between it and Songkhla, boosting mutual marine shipments.
Thai exporters will save on logistics costs if they make better use of Penang port for shipments from southern Thailand, Deputy Prime Minister Somkid Jatusripitak said yesterday after meeting with Malaysian Second Finance Minister Johari bin Abdul Ghani.
The Malaysian government is striving to position Penang as a cargo port to attract shipping from southern Thailand and achieve the goal of turning Malaysia into a logistics hub in Asean.
The Penang Port Authority has been directed by Malaysia's transport officials to outline a policy and development plan for increasing cargo volume at the port.
Mr Somkid said Thailand is set to cooperate with Malaysia under the framework of the Indonesia, Malaysia, Thailand Growth Triangle (IMT-GT) agreement of 1993.
"We are neighbouring countries, but close cooperation has yet to be implemented," he said.
This year's IMT-GT summit was held on April 10 in Manila with Prime Minister Prayut Chan-o-cha attending.
The summit resolved to develop 40 projects worth a combined US$47 billion (1.56 trillion baht) in the three countries, including high-speed rail service between Kuala Lumpur and Singapore, the first phase of a goods distribution centre at Thung Song in Nakhon Sri Thammarat, a motorway linking Hat Yai and Sadao in Songkhla, an expansion of border checkpoints and other infrastructure projects under the IMT-GT development plan for 2017-21.
According to Mr Somkid, Malaysian executives are keen to invest in Thailand's rubber city and the state-initiated Eastern Economic Corridor.
Two-way trade between Thailand and Malaysia totalled $20.5 billion in 2016, down 7.2% from the year before, with Thai exports representing $9.63 billion and imports worth $10.9 billion.
