No immediate plans for Malaysia-Thailand border economic zones

By NST in July 30, 2025 – Reading time 2 minute

KUALA LUMPUR: The government currently has no specific plans to establish a Special Economic Zone (SEZ) or Financial Free Zone (FFZ) along the Malaysia-Thailand border.

Acting Economy Minister Datuk Seri Amir Hamzah Azizan said in a written parliamentary reply that the ministry is open to considering such a proposal in the future if a need arises and if it brings mutual benefits to both countries.

“At present, there are no specific plans to establish a Special Economic Zone or Financial Free Zone along the Malaysia-Thailand border.

“However, the government, through the Economy Ministry, is open to considering and further evaluating the proposal to establish a Border Special Economic Zone in the future, should there be a need and if it brings mutual benefits to both countries.”

He was responding to a question from Rushdan Rusmi (PN-Padang Besar), who had enquired about plans to establish Padang Besar as an SEZ or FFZ to spur cross-border investment and trade.

Amir Hamzah said that existing regional cooperation platforms include the Indonesia–Malaysia–Thailand Growth Triangle (IMT-GT) and the Malaysia–Thailand Joint Development Strategy for Development Areas (JDS).

He added that in efforts to boost the economy of border areas, the Economy Ministry, through its border development initiative, has identified and developed border economic areas in Kedah, Kelantan, Perlis, and Perak.

To date, various initiatives have been implemented, including the Kedah Rubber City (KRC), eight Border Special Economic Zones, and the Northern Corridor Highway.

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