Islamic Bank of Thailand to revive nation’s first sukuk

BANGKOK: Islamic Bank of Thailand is reviving plans to sell the nation’s first sukuk after the government approved legislation that avoids double taxation of the securities following a two-year delay. 

The lender will sell five billion baht (RM504 million) of 10-year notes in the fourth quarter,said chief executive Thanin Angsuwarangsi. 

The bonds will have to pay 150 basis points over the sovereign amid concerns about the bank’s rising bad debt, according to Porntipa Nungnamjai, a fund manager with Krungsri Asset Management. 

(Business Times / 14 Jun 2013)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Halal creates an opening for Thai firms in Malaysia

KUALA LUMPUR : Thai food makers are being urged to enter the Malaysian market to capitalise on the neighbouring country's vision of becoming a global hub for halal food.

Petch Chinabutr, director of Thailand's National Food Institute (NFI), said that despite a population of just 30 million, Malaysia has a high per-capita income compared with other countries in the 10-member Asean group, ranking only behind Singapore and Brunei.

"Furthermore, the Malaysian government has a policy to turn the country into a global hub of halal products, and the country also has established free-trade deals with many partners, especially in the European Union, so this is a good opportunity for Thai businesses to penetrate this market," he said.

His comments were made on the sidelines of the 10th Malaysia International Halal Showcase. The NFI brought 10 Thai companies to showcase their halal-certified products at the event.

Ugrid Chitcharoentham, assistant export manager of General Candy Co, the maker of Heartbeat candy, said most of General's confectionery, fruit snacks and jelly are certified halal, with two more items on the way.

General exports 70% of what it makes, half of which goes to South Africa, Dubai, Qatar, Yemen, Kuwait and Jordan. The company has begun shipping to Malaysia as well.

General makes some products especially for the Middle East markets, as some countries in the region have laws banning the use of food colouring.

Alak Pramernchamaen, director of Siamsurplus Co, has expressed interest in exporting her crispy fried salmon products to Malaysia since last year.

Under the brand SeaRun, the product is sold in 700 7-Eleven stores in the southern region of Thailand. Still, 70% of production goes to mom-and-pop stores and street vendors.

This year, the company expects to produce 200,000 packets a month, up from 100,000 a month last year, 50,000 in 2011 and 20,000 the year before.

Sarif Lohhama, manager of Budu Yiseng (Saiburi Pattani) Ltd, sends most of his instant khao yam sets to Malaysia.

Called nasi kerabu in Malaysia, khao yam consists of rice, budu fish sauce and vegetables.

The company, which has made and exported food for five years, ships 20% of its production to Malaysia, Egypt and Saudi Arabia. Revenue per year is 45 million baht, with 14 million baht in profit.

Last year, Malaysia was Thailand's sixth-biggest export destination and eighth-biggest import source. Exports to Malaysia totalled 33.7 billion baht, with imports reaching 14 billion baht.

(Bangkok Post Business / 15 April 2013)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Thailand set to boost Halal food industry with Kuwait

KUWAIT, Oct 16 - Thai Prime Minister Yingluck Shinawatra reaffirmed close ties between Thailand and Kuwait and pledged that Thailand is ready to cooperate with the Middle Eastern country to produce Halal food for the world.

The Thai premier made her remarks as she hosted a reception for the Thai and Kuwaiti business communities as she arrived in Kuwait, at the opening of her three-day visit there.

Ms Yingluck said Thailand and Kuwait have had a close relationship for nearly 50 years and the value of mutual trade between the two countries has increased by 185 per cent in the past five years.

In the first half of this year, about 40,000 Kuwait tourists visited Thailand, she said.

The Thai prime minister stated that Thailand's economic fundamentals remain strong: some US$74 billion is being invested for additional basic infrastructure development including transport routes connecting Thailand with neighbouring countries, expansion of international airports, and joint investment in Myanmar's Dawei deep-sea port which will link Thailand with India and the Middle East.

Regarding economic cooperation between Thailand and Kuwait, Ms Yingluck highlighted the concept "Kitchen to the World". She said that exports of Halal food have increased by 30 per cent compared to last year, and an efficient standardised Halal food industrial estate has been established in the country's southern region.

She said Thailand expects to cooperate with Kuwait in producing and exporting Halal food to the world community.

Ms Yingluck added Thai businesspersons who accompanied her during this trip are also keen to invest in the energy, public health and tourism industries here.

The Thai premier is scheduled to attend the opening ceremony of the Asia Cooperation Dialogue (ACD) summit, along with the leaders of 32 countries today.

As Thailand is an ACD coordinating country, Ms Yingluck will speak on Thailand's role in tourism, finance and human resources.

ACD was inaugurated in June 2002 in Cha-Am, Thailand, where 18 Asian Foreign Ministers met together for the first time.  A continent-wide forum, ACD aims to build links in Asia incorporating every Asian country, building an Asian community without duplicating other organisations or creating a bloc against others.

The grouping currently comprises 30 countries from East to West Asia, including Bahrain, Bangladesh, Brunei, Bhutan, Cambodia, China, India, Indonesia, Iran, Japan, Kazakhstan, Republic of Korea, Kuwait, Lao PDR, Malaysia, Mongolia, Myanmar, Pakistan, Philippines, Oman, Qatar, Russia, Saudi Arabia, Singapore, Sri Lanka, Thailand, United Arab Emirates and Vietnam, Tajikistan and Uzbekistan.

(Pataya Mail / 17 Oct 2012)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Islamic Bank of Thailand (IBank) sets sights on halal export loans

The Islamic Bank of Thailand (IBank) plans to increase its focus on halal food exports, with a target of 3 billion baht in loans for the industry this year, says bank president Dheerasak Suwannayos.

The target is a 50% increase from last year, he said. IBank expects to extend 20 billion baht in credit to all sectors this year.

Mr Dheerasak said of Asean's 601 million people, Muslims account for 260 million.

The planned market integration called the Asean Economic Community in 2015 will result in new business opportunities for the Thai halal food industry across the region, he said.

Other markets also offer strong potential in the sector. Mr Dheerasak said while the US has only 8 million Muslims, the value of its halal food market is quite large at an estimated US$12 billion per year.

The global market is estimated at 700 billion baht per year. Thai halal food exports are worth only 10 billion baht, out of total Thai food exports of some 70 billion baht.

Mr Dheerasak said in IBank's 10th year of operations it will increasingly focus on retail customers, particularly those unable to access formal financial services. Retail customers account for 62% of the bank's total credit portfolio, with small and medium-sized enterprises representing the rest.

The bank hopes its "Family Member" referral programme will help support its marketing initiatives, with current customers receiving commission fees based on new business volume generated from referrals.

Over the next several months, the bank also will introduce a new credit card, with a target of 40,000 cards issued by the end of the year.

In contrast to ordinary bank credit cards, the IBank card can be used to purchase goods and services while remaining in compliance with Islamic laws.

Mr Dheerasak said the bank plans to increase capital, now 12.5 billion baht, by another 1.5 billion in the third quarter to support new business growth. The additional capital is projected to be sufficient to support business growth for the next two years.

(Bangkok Post business / 28 June 2012)

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Alfalah Consulting - Kuala Lumpur:
www.alfalahconsulting.com
Islamic Investment Malaysia:
www.islamic-invest-malaysia.com