Abstract

Malaysia’s palm oil industry is facing a severe labor shortage, estimated to cost the industry US$4.6 billion annually. Meanwhile, Thailand’s southern border provinces (Yala, Pattani, and Narathiwat) are experiencing significant unemployment among returning migrant workers. This research explores how similar challenges can be addressed through complementary solutions within the frameworks of the ASEAN Economic Community (AEC) and the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT). Using qualitative research methods, data collection included in-depth interviews, focus group discussions, and document analysis. The informants were divided into three groups: 12 central and local government officials; 60 Thai repatriation workers residing in the three southern border provinces; and 8 Malaysian entrepreneurs owning palm oil plantations and factories located near the Thai-Malaysian border. The study examines the required labor skills for Malaysian palm oil plantations, the readiness of Thai workers, and the potential social and economic impacts of labor migration. The results indicate that 60% of the returning Thai workers in the sample group expressed a strong interest in working in the palm oil industry. The study found significant wage disparities (THB 15,000 per month in Malaysia compared to THB 4,000–5,000 in Thailand), potentially generating an average annual remittance of THB 120,000. However, the research identified several major obstacles, including outdated bilateral agreements, inadequate training infrastructure, and a lack of certification systems. Based on these findings, the research proposes a five-module training curriculum integrating theoretical instruction (40%) with 4–6 weeks of practical field training (60%), aligned with Malaysian standards and the IMT-GT framework. Policy recommendations emphasize the need to improve memoranda of understanding, sector-specific frameworks, certification systems, and monitoring mechanisms. Analysis suggests that effective implementation of this model could address Malaysia’s labor shortage, create significantly higher-paying employment opportunities for Thai workers, and contribute to peacebuilding in conflict-affected regions.