The Institute of Strategic Analysis and Policy Research (Insap) expressed concern that the recent leadership change in Thailand, with Paetongtarn Shinawatra becoming the 31st Thai prime minister, could potentially disrupt the progress of the SEZs that were previously agreed upon.

“It is crucial for Malaysia to act with strategic urgency, engaging the Shinawatra administration to consolidate commitments and expedite the SEZ collaboration.

“Both Malaysia and Thailand need to balance development and reduce regional economic disparities in their respective countries, reduce poverty and foster social cohesion for the long run,” Insap said in a statement.

The think tank said delays or changes in the SEZs could occur as past agreements and verbal commitments may not seamlessly transfer under the new Thai government.

It also said there was a need for more robust border security measures, including advanced surveillance and biometric systems, when the SEZs are set up to create a safe environment conducive to the economic growth of both nations.

“(The SEZs) could be the next step forward to put a stop to social and political unrest in the southern provinces of Thailand and address the economic disparities in the northern states of Malaysia,” it said.

Insap said the SEZs are expected to enhance trade, job creation, human capital development, and technology transfer between Malaysia and Thailand, particularly in sectors like agriculture and tourism.

In May, Prime Minister Anwar Ibrahim and then Thai prime minister Srettha Thavisin discussed developing joint special economic zones, especially in the halal industry.

Three months later, Anwar proposed that the private sector be roped in to set up these SEZs with Thailand, saying it could attract more investment.

A week later, Srettha was removed from office.