Thailand and Malaysia have agreed to create a Rubber City along their border to raise the rubber prices.

The project was reached during a recent discussion between the Thai Commercial Minister Niwatthumrong Boonsongpaisan and Malaysia ’s Minister of International Trade and Industry Mustapa Mohamed.

The two sides agreed to strengthen their cooperation in trade and investment, particularly in the areas that they share strength like Halal food and rubber.

Malaysia proposed the establishment of the Rubber City along the Kedah-Thai border for the mutual benefits.

Under the proposed project, the city will be created in the border area linking Dan Prakob in Songkhla's Na Thawee district and Kota Putra in the Malaysian state of Kedah.

Thailand is currently a major source of rubber for Malaysia, while the country wants to learn about the latest technology for rubber production from its southern neighbour.

The Rubber City project should be mutually beneficial, as Thailand has the greater supply of rubber while Malaysia has several industries making products from it.

The project will also help increase the price of rubber and create sustainable incomes for Thai farmers.-VNA