Laos, Malaysia agree to boost economic, trade and tourism ties

Laos and Malaysia have agreed to strengthen cooperation in the fields of energy, tourism, agriculture, education, health, security, labour, banking and defence, according to Laos’ Ministry of Foreign Affairs.
The agreement was reached during an official visit to Laos by Malaysian Prime Minister Datuk Seri Anwar Ibrahim on June 26-27 at the invitation of his Lao counterpart, Dr Sonexay Siphandone.
The two countries are preparing to resume direct flights between Vientiane and Kuala Lumpur in August, to boost tourism, trade and investment as

The Lao and Malaysian prime ministers give a press conference in Vientiane to outline the content of their talks.--Photo Sangkhomxay

Laos prepares to launch ‘Visit Laos Year’ and assume the Asean chairmanship in 2024.
AirAsia will operate direct flights from Vientiane to Kuala Lumpur starting on August 4, with three flights a week on Mondays, Fridays and Sundays.
During their talks in Vientiane, the Lao delegation asked Malaysia to increase the amount of electricity purchased from Laos from 300MW to 500MW, as a means to further boost energy cooperation.
Dr Sonexay was quoted in The Straits Times as saying that the two sides agreed to further promote rail transport connectivity to facilitate greater goods transport, and to work together in education, socio-cultural areas and public health, as well as provide support and assistance in human resource development and technical cooperation.
The two prime ministers witnessed the signing of Memoranda of Cooperation between Keretapi Tanah Melayu Berhad (KTMB) and the Lao National Railway State Enterprise as well as between Mutiara Perlis Sdn Bhd (MPSB) and the Thanaleng Dry Port.
The two premiers also witnessed the exchange of a Memorandum of Understanding between TNB Power Generation and Electricite du Laos (EDL).
Both sides spoke highly of their ongoing economic collaboration and agreed to further explore potential areas of cooperation and promote people-to-people exchanges by intensifying transport connectivity.
The value of trade between Laos and Malaysia surged from US$75.78 million in 2021 to US$241.7 million in 2022, an increase of 68.65 percent, mainly driven by the increase in demand for Malaysia’s electronic products.
The two sides agreed to create conditions conducive to further boosting bilateral trade based on the potential offered by the two countries, particularly the export of agricultural produce, facilitated by greater regional connectivity.
Malaysia is Laos’ fifth biggest foreign direct investment (FDI) contributor, with 46 investment projects reported in Laos worth US$924 million. Malaysia’s investment projects are mainly in the fields of hydropower, mining, agriculture, construction, finance, banking, hotel services and the wood processing industry.  
In addition, Malaysia has assisted human resource development in Laos, with 1,690 scholarships granted to Lao nationals from 1991-2023.
The two prime ministers also discussed Laos’ preparations to assume the chairmanship of Asean in 2024.
This is PM Anwar’s seventh official visit to an Asean member state after he was sworn in as the Prime Minister on November 24 last year. He has also visited Indonesia, Brunei Darussalam, Singapore, Thailand, the Philippines and Cambodia.
Malaysia and Laos established diplomatic relations on July 1, 1966.
During his visit, the Malaysian Prime Minister paid courtesy calls on Lao President Thongloun Sisoulith and met National Assembly President Dr Xaysomphone Phomvihane in Vientiane.

By Times Reporters
 (Latest Update June 28, 2023)