As Malaysia’s 2nd largest trading partner in Southeast Asia, Thailand offers numerous opportunities for Malaysian exporters. Thailand has the 2^nd largest economy in Southeast Asia, with a strong consumer power having a total buying power of over US $246.11 billion. Besides that, Thailand has a strong relationship with neighbouring CLMV countries (Cambodia, Laos, Myanmar and Vietnam), serving as an entry point to those markets.

Malaysia and Thailand currently share several trade agreements, such as the Regional Comprehensive Economic Partnership (RCEP), ASEAN Free Trade Agreement, ASEAN Trade in Goods Agreement (ATIGA), ASEAN Economic Community (AEC), ASEAN Connectivity Master Plan and ASEAN e-commerce Agreement. These trade agreements serve to enhance trade ties between the countries as well as facilitate the trade of goods by reducing trade barriers.

Thailand’s F&B industry has seen considerable growth in the past year due to the increase in convenience stores across the country and the rising numbers of foreign tourists. Ready-to-eat products offers high export potential for Malaysian exporters, as they are the current trend in Thailand. There are currently many well-known Malaysian brands established in Thailand, such as Julie’s, Mister Potato, Ayam Brand, Hup Seng, Glinter (MBG member), Mamee, Tatawa, Secret Recipe (MBG member) and others.

MATRADE has highlight several challenges of exporting to Thailand that Malaysian businesses should take note of. Firstly, Thai consumers are price conscious, and prefer products from local suppliers and low-priced imports. Secondly, Malaysian exporters with products that are not price competitive should consider working with a local partner as part of their market-entry strategy. Finally, many of the key domestic companies in Thailand are family businesses that have spanned generations. These businesses have a deep knowledge of their industries, which offers them a distinct advantage over new, emerging businesses in Thailand.  

Malaysian businesses interested in exporting to Thailand can reach out to MATRADE for assistance and enquiries.

For enquiries, please contact:

MATRADE Bangkok
Trade Commissioner
Mohamed Hafiz Md Shariff

Deputy Trade Commissioner
Shahnurraisa Mohd Zain

T: +66 2108 1792 /93/94
F: +66 2108 1795
E: This email address is being protected from spambots. You need JavaScript enabled to view it.

Sources:
MATRADE webinar (Corporate Establishment in Thailand)