The Peace Agreement of Hat Yai was signed in December 1989, concluding the longstanding conflict between the Malayan Communist Party (MCP) and the governments of Malaysia and Thailand. Since the late 1940s, the MCP had engaged in guerrilla warfare aiming to establish a communist state in Malaysia, strongly opposing British colonial rule and later the Malaysian government. The conflict led to extensive military operations, with both sides suffering casualties and significant socio-economic impacts on Malaysian society. Negotiations initiated in the 1980s aimed to facilitate a peaceful resolution, culminating in discussions held in Hat Yai, Thailand.

This landmark agreement involved a series of diplomatic engagements, where both parties recognized the need for reconciliation and the integration of former insurgents into society. The Hat Yai Agreement stipulated the disbandment of the armed wing of the MCP, and provided amnesty for those who laid down their arms. The agreement was indicative of shifting geopolitical dynamics in Southeast Asia, especially with the broader decline of communism globally and the establishment of more stable governmental structures in the region.

The signing ceremony involved representatives from the MCP, as well as Malaysian and Thai government officials. Post-agreement, many former MCP members were absorbed into national life, contributing to Malaysia's socio-economic development while moving away from insurgency tactics. This represented a critical change for the region, pivoting toward a more stable governance and reinforcing Malaysia's commitment to peace and unity. The historic accord became a model for conflict resolution in other regions beset by insurgencies and contributed significantly to Southeast Asia's socio-political landscape.