Travelled from Bangkok to Thailand’s southernmost province of Narathiwat to study consumer response to his company’s new halal crab sausage snack, he expected feedback mainly from local customers. Instead, what caught him by surprise were Malaysians clearing shelves in border towns, buying the ready-to-eat snacks in bulk to take home.
Prachaya, a senior marketing manager at a Thai firm producing halal microwaveable snacks, said it had been barely a month since his products were introduced in 7-Eleven stores across Thailand’s Muslim-majority southern provinces. Yet sales were already strong — not just among locals, but increasingly among Malaysian visitors crossing the border.
“Malaysians are coming to the Thai border towns and purchasing chicken burgers until the shelves are empty,” he said, his astonishment evident. “It’s something we didn’t anticipate so quickly.”
Encouraged by the response, Prachaya is now studying the feasibility of exporting to Malaysia. Any future shipments, he noted, would likely pass through the Sungai Golok–Rantau Panjang crossing linking Narathiwat with Malaysia’s Kelantan state — a vital artery for cross-border trade and travel.
He also welcomed plans by the two governments to build a second six-lane bridge parallel to the existing Muhibbah (Friendship) Bridge, saying improved connectivity would deepen economic and people-to-people ties between the two historically underdeveloped border regions.
“I think it’s a very good idea; the new bridge will improve the relationship between Thailand and Malaysia,” he said.
Thailand and Malaysia have set their sights on expanding bilateral trade to US$30 billion by 2027, a target reaffirmed in December 2024 when Malaysian Prime Minister Anwar Ibrahim hosted former Thai premier Paetongtarn Shinawatra in Putrajaya.
The neighbours agreed to deepen cooperation across a wide range of sectors, including rubber, tourism, halal food, digital industries, energy grids, gas supply and border management. Thailand is currently Malaysia’s seventh-largest trading partner globally and third-largest within ASEAN.
Trade momentum has remained strong. From January to August 2025, bilateral trade reached US$18.64 billion, following US$25.03 billion in 2024.
A cornerstone of this strategy is the twin-city project pairing Thailand’s five southernmost provinces — Satun, Songkhla, Yala, Pattani and Narathiwat — with Malaysia’s northern states of Perlis, Kedah, Perak, Terengganu and Kelantan. The initiative aims to boost agricultural trade, raise yields of cash crops and livestock, and improve livelihoods in historically marginalised regions.
Transport connectivity is also back on the agenda. Both sides have agreed to revive the Bangkok–Butterworth rail service on the west coast, while discussions continue on extending Malaysia’s East Coast Rail Link (ECRL) northwards to Thailand via Rantau Panjang and Sungai Golok.
“Improved transportation links are key,” said Amri Bakhtiar, director of the Centre for Indonesia–Malaysia–Thailand Growth Triangle (CIMT-GT). “They allow complementary industries on both sides of the border to integrate more effectively.”
Amri pointed to special economic zones (SEZs) in Thailand’s southern provinces, with Narathiwat focused on rubber processing and Songkhla on halal industries. With Muslims making up about 10 per cent of Thailand’s 65.96 million population — concentrated largely in the south — halal production has become a strategic growth area.
“Thailand is a major global food exporter, so it makes sense for them to see halal as a major industry,” Amri said. “Being a Muslim-minority country, they see strong benefits in cooperating with Malaysia and Indonesia.”
Thailand’s position as one of the world’s largest rubber producers also complements Malaysia’s downstream industries, particularly in Pahang. “With good connectivity, both sides stand to gain,” Amri added.
Yet progress has not been seamless. In mid-2024, Anwar and then-Thai premier Srettha Thavisin discussed jointly developing halal-focused SEZs along the border. Three months later, Anwar proposed involving the private sector to attract investment into southern Thailand.
But Srettha was removed from office shortly after, and momentum stalled. In July this year, Malaysia’s economy ministry said there were no immediate plans for a Malaysia-Thailand border SEZ, citing existing regional mechanisms like IMT-GT.
While open to revisiting the idea, the ministry stressed that any SEZ would need to deliver “mutual benefits”.
Amri said cross-border SEZs are inherently complex. “Even domestic SEZs take time,” he noted. “When you add cross-border elements, the complexity multiplies — responsibilities, documentation, governance. Political stability is also a key factor.”
Thailand’s fluid political landscape has added uncertainty. The current premier, Anutin Charnvirakul, is the country’s third leader in two years, and parliamentary elections are scheduled for February 8, 2026.
A Thai official involved in southern development said the Paetongtarn administration had formed a working committee and drafted legislation for joint SEZs, but the government fell “before much work was carried out”.
Infrastructure, however, is moving forward. Plans are advancing for a second bridge linking Rantau Panjang and Sungai Golok. The 117.3-metre structure, estimated to cost RM40.54 million (US$9.88 million) and jointly funded, is expected to be completed by 2028.
The new bridge will separate traffic flows — outbound to Malaysia on the new span, inbound to Thailand on the existing bridge — easing congestion at what is the busiest checkpoint along the Kelantan–Narathiwat border.
Thai immigration data show around 3 million people passed through the Sungai Golok crossing in 2024, surpassing pre-pandemic levels.
“This will improve tourism, trade and investment,” said Narathiwat deputy immigration chief Somsak Saengsin. “Movement of people and goods is already growing steadily.”
Customs officials say Malaysia exports timber, seafood and dairy products into Thailand, while Thailand sends seafood, vegetables and construction materials across the border.
Local workers like Saidee Ma, who loads goods onto lorries, believe the new bridge will ease severe congestion during weekends. But others worry construction could disrupt nearby residential and commercial zones.
On the Malaysian side, some vendors at the Rantau Panjang duty-free zone fear they may lose foot traffic if travellers bypass shopping areas entirely. Further east, traders at Pengkalan Kubor — linked to Thailand’s Tak Bai by ferry — reported steadier business, thanks to a more compact and walkable layout.
Looming over all ambitions is the persistent security challenge in southern Thailand. Insurgency-related violence continues to unsettle investors and visitors alike.
In March, Malaysia advised its citizens to postpone non-essential travel to Yala, Pattani and Narathiwat following deadly attacks. More recently, armed men robbed a gold shop inside a Big C supermarket in Sungai Golok, fleeing with gold worth 36.5 million baht and reportedly escaping across the border via illegal crossings.
Local business leaders say each incident sets back recovery efforts. “Hotel bookings are cancelled immediately,” said Somchot Saosri-on of the Narathiwat Chamber of Commerce. “We have to start again every time.”
While Thai officials insist disruptions are short-lived, concerns persist. Wattarapong Lertkhunakorn, vice-president of the Narathiwat Chamber of Commerce, said instability remains the biggest deterrent to large-scale investment.
“You can offer tax incentives, loans — it doesn’t matter,” he said. “If a factory worth hundreds of millions of baht is destroyed, investors lose everything.”
Malaysia continues to facilitate peace talks between Thai authorities and insurgent representatives, with the latest meeting held in Kuala Lumpur in December. Progress, however, remains elusive.
Analysts say meeting the US$30 billion trade target will require more than infrastructure. Hazmi Rusli of Universiti Sains Islam Malaysia said both countries must expand into services, green technology and digital trade, while ensuring predictable policies and streamlined border procedures.
“The relationship is resilient,” he said. “But leadership changes and security concerns slow complex, capital-intensive projects.”
For entrepreneurs like Prachaya Chimvises, the opportunity is real — and immediate. Halal snacks flying off shelves in border towns are a small but telling sign of untapped demand.
Whether that demand translates into sustainable growth for the border regions will depend on whether Thailand and Malaysia can bridge not only rivers, but long-standing political and security divides.
