Malaysia, Thailand eye border business zone<\/p>\n
Reuters,Langkawi, Malaysia<\/p>\n
Malaysia and Thailand pledged on Sunday to deepen business and
\ngovernment ties in an effort to boost trade and set a benchmark
\nfor other Southeast Asian states considering the next stage of
\nregional integration.<\/p>\n
Drawing parallels with the European Union, Malaysian Prime
\nMinister Mahathir Mohamad said Bangkok and Kuala Lumpur should
\nshow the eight other ASEAN Free Trade Agreement (AFTA) countries
\nwhat could lie ahead for their alliance.<\/p>\n
\"While we work towards AFTA, we should also experiment with
\ngreater integration between neighbouring countries on a bilateral
\nscale,\" he said in speech to a business forum attended by several
\nhundred delegates from Malaysia and Thailand.<\/p>\n
\"The cooperation between Thailand and Malaysia in the border
\nareas should show the way,\" he told the meeting, on Malaysia's
\nwest coast resort island of Langkawi.<\/p>\n
Mahathir said the border zone could incorporate Peninsular
\nMalaysia's three northern states of Kedah, Perlis and Kelantan
\nand Thailand's five southern states.<\/p>\n
\"In the designated border areas, the two countries'
\ncomparative advantages should be identified and offered to
\ninvestors from both countries and to foreigners.\"<\/p>\n
Malaysians, with a per capita gross domestic product of around
\nUS$4,000, had more money to spend than their Thai neighbours but
\nat the cost of higher wages, said Mahathir.<\/p>\n
He suggested cooperation could see Thailand help Malaysia cut
\nits costs while the latter contributed to Thai economic growth
\nand income. Malaysian exports to Thailand in 2002 were worth 15.1
\nbillion ringgit ($3.98 billion), a surplus of 3.1 billion ringgit
\nover its imports.<\/p>\n
Mahathir's Thai counterpart, Thaksin Shinawatra, suggested
\nalliances between businesses could include shared product testing
\nand standardisation, cost pooling, staff exchanges, co-funding
\nand joint supply chain and marketing deals.<\/p>\n
\"One plus one will equal more than two,\" he said in a speech
\nto the two-day meeting. Neither man gave practical details of how
\nthe proposed zone might take shape.<\/p>\n
Businessman-turned-politician Thaksin, who has enjoyed close
\nties with ASEAN's elder statesman Mahathir since coming to power
\nin 1999, cited bilateral successes in boosting rubber prices as
\nan example of government-to-government contacts that helped both
\nsides.<\/p>\n
However, the two neighbouring countries had been engaged in a
\npublic row over Malaysia's decision to delay tariff cuts on car
\nimports as protection for local carmakers like Proton<\/p>\n
The other members in the Association of South East Asian
\nNations (ASEAN) are Brunei, Cambodia, Indonesia, Laos, Myanmar,
\nthe Philippines, Singapore and Vietnam.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/malaysia-thailand-eye-border-business-zone-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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