Thai and Malaysian government representatives are expected to meet in the next few weeks to discuss the subject, he said.

He said the proposal was mooted by a company which is said to be related to a renowned Malaysian tycoon with a link to the Penang Port.

This idea will benefit both ports as they can serve as transit ports before goods are shipped to international destinations, he told a media briefing on the Malaysia-Thailand trade and investment ties here today.

This proposal is new and unheard of.

Earlier, there was a proposal for the multi-billion dollar Kra Canal plan, which was tossed as early as 1677 but which was not taken up due to the high cost and environmental concerns.

There is renewed interest in the canal plan from Thailand. If it were to materialise, the canal could pose a challenge to ports along the Straits of Malacca, such as Port Klang and Tanjung Pelepas Port, as well as Singapore Port.

The proposed Penang-Songkhla rail line is expected to shorten the transit time to ship goods to nine hours compared with nine days via the Straits of Malacca.

Commenting on Malaysian-Thai relations, Damrong said Thailand had been overlooked by Malaysian business leaders despite its vast opportunities and infrastructure.

“For instance, Thailand has road access to China, and other Indo-Chinese countries, which would benefit Malaysian businesses,” he said.

Malaysia is Thailand’s sixth trading partner and total trade between both countries in 2016 stood at US$20 billion.