Islamic Bank of Thailand boosts halal loans

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Thailand wants to increase halal food exports by ten per cent annually

Thailand’s only Islamic finance institute, the Islamic Bank of Thailand (IBank), will step up its halal industry financing business by granting up to three billion baht (almost $100 million) for loans for the sector this year, the bank’s president Dheerasak Suwannayos said in an interview with the Bangkok Post  published on June 28.

This means a 50 per cent increase of the loan volume and a strong commitment to the halal industry, according to the president.

The  bank expects rising activity in the halal industry in ASEAN after the ASEAN Economic Community will come into effect by 2015. Out of the ten member bloc’s population of approximately 600 million, 260 million are Muslims and potential targets for halal products.

Bandhit Sotipalalit, Chairman of Islamic Bank of Thailand, told Inside Investor in an earlier interview that IBank wants to address at least half of the seven million Muslims in Thailand with its Shariah banking services. The bank is currently working on expanding its branch network all over Thailand and is running large marketing and advertising campaigns. By the end of 2011, the bank had 101 branches, and 2012 will see 50 more branches, Sotipalalit said.

IBank also plans to expand to Malaysia and Indonesia, countries with huge potential in Islamic banking, and to China. It also works on opening a branch in Dubai to address the Middle East market including Iran.

Currently, retail customers account for 62 per cent of the bank’s total credit portfolio, with small and medium-sized enterprises representing the rest.

The Director-General of the Thai Department of International Trade Promotion (DITP), Nantawan Sakuntanak, said on June 20 that the halal food industry in Thailand will be upgraded to be on a par with the international standards to further increase its export volume by more than ten per cent per year.

She added that the export of halal food during the first quarter of this year was worth $1.5 million, an increase of 5.3 per cent year-on-year. She said her department has, for this year, formulated a plan to promote the halal food business both inside and outside of Thailand.

The DITP is also planning to develop a logistic system and to collect information of all halal food products to facilitate the export of the products, as well as to look into new market segments.

The global halal market is estimated to have a value of  $22 billion. Thai halal food exports are currently standing at only  $312.5 million, out of total Thai food exports of around $28 billion, according to government figures.

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Reading Time: 2 minutes

Thailand wants to increase halal food exports by ten per cent annually

Thailand’s only Islamic finance institute, the Islamic Bank of Thailand (IBank), will step up its halal industry financing business by granting up to three billion baht (almost $100 million) for loans for the sector this year, the bank’s president Dheerasak Suwannayos said in an interview with the Bangkok Post  published on June 28.

Reading Time: 2 minutes

Thailand wants to increase halal food exports by ten per cent annually

Thailand’s only Islamic finance institute, the Islamic Bank of Thailand (IBank), will step up its halal industry financing business by granting up to three billion baht (almost $100 million) for loans for the sector this year, the bank’s president Dheerasak Suwannayos said in an interview with the Bangkok Post  published on June 28.

This means a 50 per cent increase of the loan volume and a strong commitment to the halal industry, according to the president.

The  bank expects rising activity in the halal industry in ASEAN after the ASEAN Economic Community will come into effect by 2015. Out of the ten member bloc’s population of approximately 600 million, 260 million are Muslims and potential targets for halal products.

Bandhit Sotipalalit, Chairman of Islamic Bank of Thailand, told Inside Investor in an earlier interview that IBank wants to address at least half of the seven million Muslims in Thailand with its Shariah banking services. The bank is currently working on expanding its branch network all over Thailand and is running large marketing and advertising campaigns. By the end of 2011, the bank had 101 branches, and 2012 will see 50 more branches, Sotipalalit said.

IBank also plans to expand to Malaysia and Indonesia, countries with huge potential in Islamic banking, and to China. It also works on opening a branch in Dubai to address the Middle East market including Iran.

Currently, retail customers account for 62 per cent of the bank’s total credit portfolio, with small and medium-sized enterprises representing the rest.

The Director-General of the Thai Department of International Trade Promotion (DITP), Nantawan Sakuntanak, said on June 20 that the halal food industry in Thailand will be upgraded to be on a par with the international standards to further increase its export volume by more than ten per cent per year.

She added that the export of halal food during the first quarter of this year was worth $1.5 million, an increase of 5.3 per cent year-on-year. She said her department has, for this year, formulated a plan to promote the halal food business both inside and outside of Thailand.

The DITP is also planning to develop a logistic system and to collect information of all halal food products to facilitate the export of the products, as well as to look into new market segments.

The global halal market is estimated to have a value of  $22 billion. Thai halal food exports are currently standing at only  $312.5 million, out of total Thai food exports of around $28 billion, according to government figures.

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