Areas of Cooperation – Government Sector

1. Bilateral Payments Arrangements (BPA): The Meeting discussed the level of trade transaction under the
    BPA, and noted that there is potential to further expand the scheme. The Meeting agreed on the need to
    have more promotional campaigns to encourage increased business transactions under the BPA.  Other
    alternative trade financing mechanisms can be considered to promote two-way trade.
2. Customs cooperation: satisfactory progress has been made to facilitate clearance of goods at the common
    border entry/exit points, including on-going work on the development of a single inspection system to
    expedite clearance of goods at the common border points. There is also on-going work at ASEAN level to
    establish an "ASEAN Single Window" in 2006 to facilitate trade and clearance of goods within the region.
3. Small and Medium Enterprises (SME):  The Meeting agreed to enhance SME collaboration between both
    countries towards creating competitive supporting industries for mutual benefits. The Small and Medium
    Industries Development Corporation (SMIDEC), Malaysia, and the Office of Small and Medium Enterprises
    Promotion (SME), Thailand, will cooperate and work closely in forging SME collaboration.  Both countries
    agreed to conduct joint exhibitions abroad to promote SME products, particularly automotive components
    and parts, and engineering components and parts.
4. Mutual Recognition Arrangements (MRAs) on Agricultural Products: The Meeting noted the proposal to
    establish the Mutual Recognition Arrangements (MRAs) on Agricultural Products agreed by the Leaders of
    both countries, to facilitate import and export of agricultural products between the two countries. In this
    regard, Thailand proposed that the Thai National Bureau of Agricultural Commodity and Food Standards
    would be the focal point on the Thai side. Similarly, the Ministry of Agriculture Malaysia would be the
    focal point for Malaysia.
5. Free movement of goods: the Meeting discussed problems encountered by both countries on the
    movement of goods over land, particularly the need to transfer goods into different trucks at the border,
    including goods in transit.  The Meeting agreed that both countries will work expeditiously towards an
    agreement on transit and transport of goods for mutual benefit of both countries.

Areas of Cooperation – Private Sector

Both countries will continue to support private sector initiatives aimed at enhancing trade and investment
ties, including encouraging exchanges of trade and investment missions.

The Federation of Malaysian Manufacturers and The Federation of Thai Industries have taken initiatives to
identify areas for possible cooperation. The initiatives include:

1. Harmonization and synchronization of product coding in the food sector to improve efficiency and
2. Encouraging of standards harmonization and MRA of electrical and electronic products; and
3. Promotion and development of the halal food industry in both countries.

Thailand will host the next JTC meeting in 2006.
By Mr. Khoo Boo Seng
Economic Councellor, Malaysian Trade Office

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