Malaysia and Thailand ease shrimp, seabass trade row, reaffirm trade goal

KUALA LUMPUR – Malaysia and Thailand have resolved outstanding fisheries issues, Prime Minister Anwar Ibrahim said on July 9 after talks with his visiting Thai counterpart Anutin Charnvirakul.

The announcement, which came after weeks of bilateral negotiations on the trade in seafood, eases tensions over Kuala Lumpur’s suspension of imports of five Thai shrimp species and Thailand’s tighter import requirements for Malaysian seabass.

Both leaders also agreed to accelerate cross-border infrastructure projects, pursue a special border economic zone and reaffirmed their target of achieving US$30 billion (S$39 billion) in bilateral trade by 2027, from US$27.7 billion in 2025.

At the Perdana Putra complex in Putrajaya, the two leaders witnessed the exchange of an agreement on agricultural cooperation between Malaysia’s Agriculture and Food Security Minister Mohamad Sabu and Thailand’s Minister of Agriculture and Cooperatives Suriya Jungrungreangkit.

“We have resolved this outstanding issue of fisheries with both ministers’ commitment. They wanted the memorandum to be effective in one month. We agreed the issue will be effective in one week,” Anwar said at a joint press conference with Anutin.

Anutin said he welcomed “the meeting between our ministers of agriculture to find amicable solutions to pending cases of market access for fishery and agricultural products”.

In a statement after the meeting, Thailand’s Prime Minister’s Office said the agriculture ministers of both countries had reached a joint solution on the shrimp and seabass issues and agreed to expedite its implementation to ease the problems faced by farmers.

Mr Anwar’s remarks marked a significant shift from Malaysia’s earlier position.

On July 5, Fisheries Department director-general Adnan Hussain said the department would require at least 30 days to assess documents submitted by the Thai authorities before deciding whether to resume imports of the Thai shrimp species, provided the information received was complete. He said a technical team was expected to meet the following week before making its recommendation.

Boosting connectivity

The easing of the seafood dispute allows both governments to turn their attention to a broader agenda of expanding trade, improving border connectivity and strengthening security cooperation.

Anwar said both governments would proceed with plans for a special border economic zone, improve immigration and customs facilitation and accelerate cross-border infrastructure projects.

“Strong friendship and collaboration, including tourism, must start with the fundamental issue of economics and trade,” he said.

The two leaders agreed to expedite long-delayed connectivity projects, including a second bridge linking Rantau Panjang in Kelantan with Sungai Golok in Thailand, as well as a proposal to revive the railway connection between the two towns.

Border security

The two leaders also discussed security cooperation.

Anutin thanked Malaysia for continuing to facilitate dialogue aimed at ending the insurgency in Thailand’s southern border provinces, saying that “peace and development must go hand in hand”.

A low-intensity conflict waged by insurgent groups in Thailand’s Muslim-majority region bordering Malaysia has killed thousands of people since 2004.

The two leaders’ discussions came a week after negotiators representing the Thai government and the largest separatist group Barisan Revolusi Nasional resumed a second round of technical-level peace talks in Malaysia, the first since Anutin took office.

Thailand’s delegation included National Security Council Secretary-General Chatchai Bangchuad and chief negotiator Thanat Suvarnananda, who was appointed in May and also heads the National Intelligence Agency.

Anutin said Malaysia and Thailand, which will mark the 70th anniversary of bilateral relations in 2027, would boost cooperation between their defence and security agencies.

This includes establishing a joint working group that will coordinate security measures against border crime along the Sungai Golok River as well as develop a flood warning system between the two countries.

Anwar and Anutin are scheduled to travel on July 10 to Bukit Kayu Hitam in Kedah and Thailand’s Sadao district to officiate the opening of a new road linking the new Sadao Customs House with the Bukit Kayu Hitam Customs House, one of the busiest land crossings between the two countries.

The two-day visit marks Anutin’s first official bilateral trip to Malaysia since taking office. He had previously travelled to Kuala Lumpur for the ASEAN Summit in October 2025 but cut short his stay following the death of Thailand’s Queen Mother, Queen Sirikit, to return home for the royal mourning period.