KUALA LUMPUR: Malaysia will focus on supporting micro, small and medium enterprises (MSMEs) in the northern states bordering Thailand, says Datuk Seri Anwar Ibrahim (pic).
The prime minister said the focus was to ensure MSMEs could benefit from increased trade with Thailand following the opening of a new border checkpoint on July 11.
As of June 2026, he said the government had approved RM400mil in financing for MSMEs in Kelantan, RM287mil in Kedah and RM45mil in Perlis.
The financing was provided under the government's PowerUp 10K campaign, which aims to mobilise RM15bil this year for MSMEs.
"This is to ensure everyone, even our smallest businesses, can take advantage of this expected economic boom between the two countries," he said during Prime Minister Question Time at the Dewan Rakyat on Tuesday (July 14).
He added that the development of the Malaysia-Thailand Border Economic Zone (BEZ) would not only boost bilateral trade but also strengthen Malaysia's trade links with other ASEAN countries.
To this, Anwar said Malaysia and Thailand were working to unlock untapped trade potential by improving cross-border connectivity and easing trade flows between both countries.
He said Thailand had agreed to ease customs restrictions, allowing Malaysian fisheries and agricultural products to transit more easily through Thailand to Laos, Cambodia and Vietnam.
"The Prime Minister of Thailand has agreed to give relaxation, meaning trade opportunities for Malaysia in fisheries and agriculture.
“We now target an increase in Thailand-Malaysia trade, which has great potential but has not been fully utilised yet," he said.
Anwar said the improved arrangements would also allow food and fisheries products from Thailand to move through Peninsular Malaysia to Singapore, strengthening regional supply chains.
He said the BEZ would cover several strategic projects, including Bukit Kayu Hitam, Kedah Rubber City, Chuping Valley Industrial Area, Kulim Hi-Tech Park and the Perlis Inland Port.
He said the Perlis Inland Port in particular will eventually connect Malaysia with Laos while supporting an initial logistics capacity of 300,000 twenty-foot equivalent units (TEUs).
Anwar said the government was also accelerating the development of Rantau Panjang, including construction of the Sungai Golok Bridge and surrounding commercial areas for local traders.
"We have proposed to the state government to develop the surrounding area of Rantau Panjang in terms of trade, traders and small enterprises," he said.
He added that Malaysia had proposed extending the East Coast Rail Link from Tumpat to Rantau Panjang and eventually connecting it with Thailand's railway network.
Beyond transport, Anwar said Malaysia and Thailand were also strengthening cooperation in energy, ports and tourism as part of broader Asean economic integration.
He stressed that border development must remain inclusive, with local communities benefiting through better infrastructure, entrepreneurship programmes, skills training and employment opportunities.
"Our emphasis is more on SMEs and small enterprises... so that the interests of the lower-level community and small Bumiputera traders are not left out of the increase in economic activity," he added.
Anwar was responding to a question from Datuk Adnan Abu Hassan (BN-Kuala Pilah), on how the Malaysia-Thailand BEZ’s development will benefit Malaysia and MSMEs economically.
