Malaysia is set to launch a direct rail cargo service between its capital, Kuala Lumpur, and Bangkok, Thailand, later this year, according to official media citing Transport Minister Anthony Loke. The initiative, which has received approval from Prime Minister Anwar Ibrahim and the Malaysian cabinet, aims to enhance bilateral and regional trade connectivity.

Transport Minister Loke noted that the rail link would not only strengthen ties with Thailand but also open up improved trade access to other countries such as Laos, China, and nations in Central Asia. However, further details of the plan were not disclosed in the report, and Thailand’s transport ministry has yet to comment on the development.

This announcement follows Malaysia’s 2023 consideration of extending its $10 billion China-backed rail project to the Thai border. That 665-kilometer East Coast Rail Link (ECRL), designed to connect Malaysia’s east and west coasts, is expected to be completed by the end of 2026.

China remains the largest trading partner for both Malaysia and Thailand. Meanwhile, trade relations with the United States are under strain, with Washington imposing import tariffs of 24% on Malaysia and 36% on Thailand. In contrast, Chinese imports face even steeper tariffs, currently at 145%, under former President Donald Trump’s trade policies.