MALAYSIA AND THAILAND RESOLVE SEAFOOD DISPUTE, PLAN BORDER ECONOMIC ZONE

Malaysia and Thailand said they had resolved a fisheries trade dispute and would work on developing a special border economic zone, according to Reuters. Malaysian Prime Minister Anwar Ibrahim and Thai Prime Minister Anutin Charnvirakul announced the agreement after talks in Putrajaya during Anutin's two-day visit to Malaysia.

Reuters reported that the dispute began in May, when Thailand restricted imports of Malaysian-caught sea bass over concerns about chemical residues. Malaysia later responded by temporarily banning some varieties of Thai shrimp over food-safety controls, creating a trade dispute between the neighboring countries.

Anwar said the fisheries issue had been resolved and that both sides agreed the settlement should take effect within one week, according to Reuters. The leaders also witnessed the signing of a memorandum of understanding on agricultural cooperation, signaling an attempt to move the relationship beyond the seafood dispute and into broader economic coordination.

The two governments also agreed to proceed with developing a special border economic zone and to make immigration and customs exchanges easier, Reuters reported. The plan is intended to strengthen cross-border trade and movement between the countries, which share a land frontier across northern Malaysia and southern Thailand.

Reuters reported that Anwar and Anutin are expected to travel to Malaysia's northern Kedah state to jointly open a new border crossing linked to Thailand's customs and immigration complex in Sadao, Songkhla province. The crossing is part of the two countries' effort to improve border connectivity and reduce friction in trade, travel and official processing.

The visit also took place amid renewed security concerns in southern Thailand. Reuters reported that the southern border provinces have faced a decades-old separatist insurgency and that recent violence has again raised concern on both sides of the border. Anutin said ending violence and addressing challenges in Thailand's southern border provinces remained a top priority for his government.

Reuters reported that two Malaysians were injured in a roadside bombing in Tak Bai district in Thailand's Narathiwat province in late June. The incident prompted both countries to tighten border security measures, adding a security dimension to the leaders' economic and trade discussions.

The immediate question is whether the fisheries settlement is implemented as quickly as the leaders indicated and whether the proposed border economic zone produces concrete customs, trade and infrastructure changes. Both governments are trying to stabilize seafood trade, deepen economic cooperation and manage security risks along a border where commerce and public safety are closely connected.

Fact-check date: 10 July 2026
Article type: News
Sources: Reuters, Malaysian and Thai officials reported by Reuters