Malaysia and Thailand Forge Alliance on US Trade, Eye Broader ASEAN Strategy

Bangkok and Kuala Lumpur seek joint ASEAN response to American tariffs and push for enhanced strategic partnership

 

Thailand's Commerce Minister, Pichai Naripthaphan, has revealed discussions with his Malaysian counterpart, Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, the Minister of Investment, Trade, and Industry, who also chairs the ASEAN Economic Ministers this year.

 

The pair exchanged strategic views on both Thai-Malaysian and regional matters, focusing on how to address Washington's latest trade policies, particularly the imposition of retaliatory tariffs that are causing ripples across the region.

 

Both countries have thrown their weight behind the ASEAN Economic Ministers' joint statement from April 10th, 2025, which underscored the bloc's unity and its ambition to forge a "comprehensive strategic partnership" with the United States. 

 

The ministers also emphasised the need for constructive talks to settle trade disputes fairly, with ASEAN committed to the multilateral trading system and keen to avoid tit-for-tat trade measures.

 

Furthermore, Pichai has urged Minister Zafrul Aziz, in his ASEAN chair capacity, to expedite a meeting to hammer out a unified ASEAN strategy and stance for discussions with the US.
  



 

He also extended an invitation to other ASEAN member states to join these crucial negotiations with Washington.

 

The aim is to present a united front and find sensible, lasting solutions that will protect the region's interests, as well as long-term economic, trade, and investment links, and the stability of supply chains.

 

Next month will see the 25th ASEAN Economic Community (AEC) Council Meeting and the 46th ASEAN Summit take place in Kuala Lumpur, where ASEAN leaders and economic ministers will delve further into these pressing issues.

 

The two trade ministers also addressed measures to tackle the influx of substandard goods from overseas. On Thailand's part, Prime Minister Paetongtarn Shinawatra has tasked Pichai with heading a committee to manage and resolve issues concerning foreign goods and businesses flouting the law.

 

These efforts have already led to 24,626 legal cases involving illegal goods, a surge of 1.5 billion baht in VAT collection, and a monthly average reduction of 3.645 billion baht in online goods imports.

 

Pichai pointed out that ASEAN boasts significant global economic potential, with a population exceeding 660 million, a combined GDP over $3.6 trillion, and robust, continuous growth in regional trade.

  

Thailand stands ready to support ASEAN in upholding principles of openness, connectivity, and sustainability with all its trading partners and is keen to be a key global trade and economic hub.

 

Earlier today (April 18th, 2025), Pichai was at the Rosewood Bangkok hotel to see off Malaysian Prime Minister Anwar Ibrahim, who was returning to Malaysia after concluding his official visit to Thailand.

 



 

Malaysia is Thailand's fourth-largest trading partner worldwide and its top partner within ASEAN. In 2024, total trade between the two nations reached $26,055.84 million (+3.88%), with Thailand experiencing a trade deficit of $1,385.43 million.

 

Key Thai exports to Malaysia include vehicles and components, refined petroleum, electrical circuit boards, computers and parts, rubber, chemicals, iron, steel, and related products. In the first two months of 2025 (January-February), bilateral trade amounted to $4,126.10 million (+5.28%), with exports valued at $2,011.81 million and imports at $2,114.29 million.

 

The United States has long been a major trading partner for ASEAN. In 2024, total trade between the US and ASEAN stood at $476.8 billion, with imports from ASEAN valued at $352.3 billion (+13.3%) and exports to ASEAN at $124.6 billion (+16.6%).

 

Key US imports from ASEAN include rubber and rubber products, footwear, clothing and accessories, electronic goods, and machinery. Major US exports to ASEAN include machinery and electrical equipment, clothing, machinery, raw materials and agricultural products, and vehicles, parts, and engines.

(2025/04/18-00:00)