The Hat Yai Peace Agreement marked the end of the Communist insurgency in Malaysia (1968–1989).

[1] Losses in Peninsular Malaysia weakened the party's position and forced it to negotiate peace.

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.

Those MCP members who settled in South Thailand became farmers, livestock breeders, and traders.