Malaysia and Thailand sought today to cast aside economic rivalries and work towards closer integration to boost their industries and tap growth potential in Asean's markets.

Malaysian Prime Minister Dr Mahathir Mohamad said there could be a "degree of integration of the five southern provinces of Thailand and the northern Malaysian states of Kedah, Perlis and Kelantan."

Despite the formation of the Association of Southeast Asian Nations Free Trade Area (AFTA) to integrate the economies of the 10 member states, Mahathir said they should also work towards greater bilateral cooperation.