The Peace Agreement of Hat Yai (1989) marked the end of the Communist insurgency in Malaysia (1968–1989). It was signed and ratified by the Malayan Communist Party (MCP), and the Malaysian and Thailand governments at the Lee Gardens Hotel in Hat Yai, Thailand, on 2 December 1989.^[1]

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Peace Agreement of Hat Yai (1989)

Agreement Between the Government of Malaysia and the Malayan Communist Party to Terminate Hostilities
Chin Peng, Abdullah CD and Rashid Maidin during the peace agreement signed in 1989 in Hat Yai.
Signed	2 December 1989
Location	Hat Yai, Songkhla, Thailand
Signatories	Wan Sidek Wan Abdul Rahman General Mohd Hashim Mohd Ali Mohammed Hanif Omar Anek Sithipresasana General Chavalit Yongchaiyudh General Sawaeng Therasawat Lieutenant General Yoodhana Yamphundu Chin Peng Abdullah CD Rashid Maidin
Parties	Malaysia  Thailand Malayan Communist Party

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Losses in Peninsular Malaysia weakened the party's position and forced it to negotiate peace. The MCP realized that they no longer had a place to seek sanctuary, not even in Peninsular Malaysia. The deal was brokered by Thai authorities in collaboration with the Malaysian government.

The peace agreement required the MCP to disband its armed units, cease militant activity, destroy its weapons and pledge loyalty to His Majesty the Yang di Pertuan Agong of Malaysia. After 40 years, 5 months and 26 days (since the start of the Malayan Emergency, from 16 June 1948 to 2 December 1989), the MCP insurgency had ended.^[2]

The following delegates were present at the signing of the agreement in 1989:

After the signing of the 1989 peace agreement, the Malayan Communist Party was dissolved. Former members of the MCP were resettled in four villages known as Kampung Aman (Peace Village). A total of 330 former MCP members were allowed to return to Malaysia.

Those MCP members who settled in South Thailand became farmers, livestock breeders, and traders. They were able to adapt to the new environment and assimilate into the local community.

Members of the Communist Party of Malaya (CPM-ML), a splinter group of the MCP, were resettled in a Friendship Village in South Thailand known as Chulaborn Village. CPM-ML members who wanted to return to Peninsular Malaysia were required to comply with several conditions set by the government of Malaysia before being able to settle in the state of their choice.