The Commerce Ministry has set a goal of achieving 2 trillion baht in cross-border trade by 2027, spurred by a 10.4% rise in exports through the Sadao checkpoint in the first half of this year.
Jittima Srithaporn, deputy director-general of the Foreign Trade Department, stated that to meet this ambitious target, the Ministry is dedicated to enhancing cross-border and transit trade as part of the government’s investment promotion strategy for 2024-2027.
Recently, a delegation from the Foreign Trade Department visited the Sadao and Padang Besar customs checkpoints to assess the current state of border trade with Malaysia.
Located in Songkhla, one of Thailand’s 10 special economic zones, the area serves as a significant production center for sectors including processed rubber, seafood, and electronics.
With robust infrastructure connecting various regions of the country, Songkhla acts as a conduit for distributing wealth and increasing the value of Thai products and tourism.
Moreover, Songkhla serves as a key business hub in Thailand, fostering economic interactions with neighboring Indonesia and Malaysia through various projects and collaborative efforts such as the Indonesia-Malaysia-Thailand Growth Triangle Economic Cooperation Project.
During the visit, Ms. Jittima learned that the value of border trade at the Sadao and Padang Besar customs checkpoints reached 569 billion baht last year.
The department is also tracking the implementation of one-stop service (OSS) centers designed to facilitate and boost cross-border and transit trade.
OSS centers have been successfully established in eight pilot provinces known for high border trade value, with 10 locations including Chiang Rai, Tak, Nong Khai, Nakhon Phanom, Mukdahan, Trat, Udon Thani, and Songkhla, which encompasses the Sadao and Padang Besar customs checkpoints.
In the first half of 2024, cross-border trade between Thailand and Malaysia reached 297 billion baht, marking a 1.25% increase compared to the previous year. Exports accounted for 172 billion baht (an increase of 8.89%), while imports totaled 125 billion baht (a decrease of 9.31%), resulting in a trade surplus of 47 billion baht.
Cross-border and transit trade through the Sadao customs checkpoint amounted to 214 billion baht in the first half of the year, reflecting a 3.51% decline year-on-year. Exports contributed 113 billion baht (up 10.4%), and imports were 102 billion baht (down 15.3%), leading to a trade surplus of 11 billion baht.
Key exports through this checkpoint include concentrated latex, computers and components, electrical circuit boards, hard disk drives, processed wood, electrical switchboards and control panels, plywood, rubber gloves, technically specified rubber, and various rubber products.
Conversely, trade through the Padang Besar customs checkpoint totaled 79 billion baht in the first half of 2024, marking a 14.7% increase year-on-year. Exports reached 56 billion baht (up 7.21%), while imports rose to 23 billion baht (up 39%), resulting in a trade surplus of 33 billion baht.
Prominent exports from this checkpoint include technically specified rubber, processed wood, smoked rubber sheets (grade 3), concentrated latex, other rubber products, automobiles and auto parts, electronic circuit boards, hard disk drives, and machinery for filtering and purifying liquids or gases.