Bangkok, EXIM BANK joins hands with ibank to join forces with government and private sector partners to upgrade Halal products for export to the world market.
Dr. Rak Vorakitpokatorn, President of Export-Import Bank of Thailand (EXIM BANK), Dr. Thaweelap Ritthaphirom, Director and Manager of Islamic Bank of Thailand (ibank), Pol. Maj. Gen. Surin Palare, Secretary-General of the Central Islamic Council of Thailand, along with executives from the Office of Industrial Economics, Director of the Institute for Small and Medium Enterprises Development, and Director of the Halal Institute, Prince of Songkla University, signed a memorandum of understanding on the ‘Project to Promote and Support Halal Entrepreneurs for Export’, witnessed by representatives of the Chularatchamontri, Mr. Prasit Mahamad, Secretary-General of the Chularatchamontri, to promote potential and support Thai SMEs to export Halal products to foreign markets through integrated cooperation, promotion and development of academic knowledge on Hala
l, directions of international trade and investment in the modern world, access to Halal certification, expansion of trade opportunities through business matching activities and exhibitions in Thailand and abroad, as well as access to sources of funds and financial instruments to enhance business potential and manage international trade and investment risks.
Dr. Thaweelap Ritthaphirom, Director and Manager of ibank, revealed that in the past 10 years, consumer spending from the Halal market has increased by more than 40% from 1.62 trillion US dollars to 2.29 trillion US dollars, driven by the rapid expansion of the Muslim population, which has increased by almost 2 billion people worldwide. From BRF, the world’s largest food company, Nestle, to Nike, they have continuously invested and developed a variety of products to meet the needs of the Halal market.
Development institutions in the OIC group, such as The Islamic Development Bank (ISDB) or The Islamic Centre for Development of Trade (ICDT), along with U
nited Nations organizations such as UNHCR and the World Bank, are interested in Islamic finance in the social dimension. Therefore, it is an important opportunity for the Thai Halal industry. iBank is considered one of the important Halal ecosystems. Being a financial institution, it is a source of Halal funds from the upstream in order to nurture and support various Halal businesses to grow towards the country’s goals.
Dr. Rak Vorakitpokatorn, Managing Director of EXIM BANK, said that Thailand is the 15th largest Halal food exporter in the world and the 4th largest tourist destination for Muslim tourists worldwide (in the Non-OIC group). They are very interested in Thai food products and cultural tourism. Meanwhile, the world’s largest Halal food exporters to the Organization of Islamic Cooperation (OIC) are Brazil, India, the United States, Russia, and Indonesia. The world’s largest Halal food importers in the OIC group are Indonesia, Malaysia, Turkey, Saudi Arabia, and the United Arab Emirates. This is a
very large market.
Entrepreneurs participating in the project can apply for credit services to be used as working capital or to expand investment from EXIM BANK for SMEs that are exporters and manufacturers for exporters, including EXIM Start Export Loan, special rate starting at 5.35% per year (Prime Rate – 1%), maximum credit line of 3 million baht, participants in this project will receive a discount of 0.25% per year for the first year, EXIM Green Start Loan, special rate starting at 4.10% per year (Prime Rate – 2.25%), maximum credit line of 200 million baht, participants in this project will receive a discount of 0.25% per year for the first 6 months, and EXIM Top Up Export Capital Loan, special rate starting at 4% per year, maximum credit line for SMEs of 20 million baht.
Participants of this program will receive a 0.25% annual discount for the first 6 months, including a waiver of the initial fee, a special rate of 3.85% per year for environmentally friendly business loans, a maximum credit line of
200 million baht, and an EXIM for Small Biz export insurance policy to protect against the risk of non-payment of goods from overseas buyers. Free! Insurance premium for 1 case worth 1,800 baht for guaranteeing a buyer credit line of 0.30 million baht with a 90-day payment term, or a discount on the buyer risk assessment fee according to the bank’s conditions. In the case of being certified with Halal product standards, additional benefits include a voucher worth up to 2,000 baht to be used as a discount on the EXIM for Small Biz export insurance service premium for insuring the second buyer, or a discount on the buyer risk assessment fee for 1 case.
For ibank, we have joined in driving the IGNITE THAILAND strategy by issuing the IGNITE HALAL loan to support financial liquidity and investment for Halal business operators in the tourism business group, medical and health business group, and food business group. The aim is to push SMEs without collateral to be able to access Halal funding sources. The minimum
credit line is 1 million baht, up to 5 million baht, with a maximum repayment period of 7 years, no collateral required, with the SME Bank guaranteeing the credit line. Special! The government supports the guarantee fee for up to 3 years, according to the terms and conditions of the SME Bank. For customers with business establishments in the 5 southern border provinces, ibank offers a special discount for the first 3 months, with an installment rate of only 50% of the normal installment.
Source: Thai News Agency