On 1st of August 2022, Mutiara Perlis Sdn Bhd (Mutiara), the Owner-Developer-Operator of the new Perlis Inland Port (PIP) signed a Strategic Cooperation Framework Agreement with PTT pcl (PTT), and Nathalin Group (Nathalin), for Thailand-Malaysia Track and Perlis Inland Port (PIP) Cooperation.
At the same ceremony, United Overseas Bank (Thailand) Co. Ltd., also signed a “Strategic Cooperation Framework Agreement” with PTT, Nathalin and Mutiara.
The ceremony was witnessed by His Excellency Chainarong Keratiyutwong, Ambassador of Thailand to Malaysia and Mr. Mohamad Haris Kader Sultan, Chief Executive of Northern Corridor Implementation Authority of Malaysia (NCIA).
Mutiara Perlis was represented by its Chairman, Dato’ Shabaruddin Ibrahim while the Thai counterparts were represented by Mr. Chansak Chuenchom, Senior Executive Vice President of PTT, Mr. Suraphon Meesathien, Chief Executive Officer of Nathalin and Mr. Tan Choon Hin, President and Chief Executive Officer of UOB (Thailand).
PTT and Nathalin developed a seamless connectivity to Vientienne and Kunming in Thailand, with Chinese counterparts in April 2022, and is now cooperating with Mutiara to complete the Bangkok-Peninsular Malaysia loop. This will greatly improve the supply chain between Europe, China and ASEAN as China has already embarked on developing rail connectivity to Europe since 2011.
“This cooperation between Thailand and Malaysia stems from having the same vision and values. Through this co-operation, we aim to lead the integration of the supply chains of Malaysia-Thailand-China-Europe. This will mark the birth of a new intercontinental railway supply chain,” said Mr. Amir Abdillah, Executive Director of Mutiara, speaking on behalf of Mutiara.
Mr. Chansak of PTT believes the cooperation between Thailand and Malaysia is a real strategic cooperation based on both sides’ mutual benefit and win-win situation. This cooperation will eventually lead to the integration of the supply chain from Singapore-Malaysia-Thailand-China-Europe. This is the first time in history that Southeast Asia, China and the European continent are connected by railway since the start of Silk Route 1000 years ago. This will surely contribute to the prosperity of both Malaysia and Thailand.
The Thai Government is supportive of this cooperation, as this will facilitate not only trade movements but enable Thais and Malaysians to collaborate for the greater good of both nations. There are plans in the pipeline to have a Thai delegation visit the Northern Corridor Economic Region (NCER) of Malaysia in the near future to see further investment potential according to His Excellency Chainarong Keratiyutwong.
Mr. Haris of NCIA highlighted the joint call by Prime Ministers of Thailand and Malaysia in February 2022 for a closer collaboration between the two nations to increase trade value from current USD23 billion to USD30 billion by 2025, of which almost half will be transported via land.
“NCIA is committed to support PIP and other supporting infrastructures’ developments. These include Chuping Valley Industrial Area (CVIA) which is adjacent to PIP and nearby industrial parks in Kedah that falls under the purview of NCIA namely the Kedah Rubber City (KRC) and Kedah Science & Technology Park (KSTP). PIP Phase 1 will have a capacity of 250,000 TEU which is double the current facility at Padang Besar, apart from improvement of border clearance facilities, services and space,” said Mr. Haris.
