The opening ceremony of the new iBank branch, located on Wirat Hongyok Rd, was presided over by Phuket Governor Sophon Suwannarat, joined by Dr Thaweelap Rittapirom, President of the Islamic Bank of Thailand, as well as numerous bank executives, employees, and representatives from both the public and private sectors.
The new branch not only offers banking services but also hosts a newly launched SME Business Center, aimed at providing maximum benefits to the people and entrepreneurs in the Andaman region.
Dr Thaweelap announced that the opening of the new Phuket branch and the launch of the SME Business Center are part of the government’s efforts to advance the IGNITE THAILAND strategy.
The initiative aims to provide maximum benefits to the public and entrepreneurs in the Andaman coast region, aligning with the government’s vision of transforming Thailand into a global industrial hub.
“This vision, as outlined in the "IGNITE THAILAND, Unite Hearts, Thailand Must Be One" statement, focuses on driving Thailand’s economy towards a sustainable future in sectors such as tourism, healthcare, food, aviation, transportation, automotive manufacturing, technology, and finance,” he said.
iBank is committed to supporting this vision with a target of B2 billion in loans under the IGNITE HALAL Credit Program, he added.
“iBank is committed to supporting this strategy by targeting three key industry groups: tourism, medical and health, and agriculture and food hubs. The bank plans to provide financial support totaling B2 billion under this initiative, with B1bn allocated to the Andaman coast and B1bn to the 14 southern provinces combined,” Dr Thaweelap explained.
“iBank has allocated over B4.3bn to support SME businesses in Phuket and the 14 southern provinces. The Phuket branch alone has total deposits of B1.524bn and total loans of B1.227bn, with Muslim customers making up 40% of the client base and general customers accounting for 60%,” he added.
“Phuket has a significant Muslim population of 95,239, representing 27.60% of the total [registered resident] population. Approximately 90% of the Muslim community is involved in tourism-related professions, directly or indirectly.
“The service and tourism sector in Phuket has seen continuous growth from January to June 2024… This growth has led to an increase in job opportunities, especially in the hotel industry, and has also driven expansion in the trade and investment sectors,” Dr Thaweelap noted.
The government is actively promoting the tourism industry, particularly targeting the global Muslim tourist market, which is known for its high spending power, he said.
“The Department of Tourism has developed the ‘Muslim Friendly & Gastronomy Tourism Routes’ guide to attract Muslim tourists to Thailand, offering them new travel experiences and stimulating the local economy. This initiative, along with the planned establishment of the Andaman International Health Center in Phuket, is expected to boost tourism and generate income for the region,” Dr Thaweelap said.
The IGNITE HALAL credit project is a financing initiative aimed at supporting SMEs in three key business sectors: tourism, food, and medical and health.
The project is designed for Muslim entrepreneurs or businesses with at least 20% Muslim ownership, as well as businesses offering Halal-certified products and services or those operating within the Shariah-compliant framework in the five southern border provinces.
The loans, ranging from B1mn to B5mn, are intended to help businesses expand their operations and improve liquidity.
The financing terms include a maximum repayment period of seven years, with no collateral required, Dr Thaweelap explained.
The Bank of Thailand provides special guarantee coverage for these loans, with the government covering the guarantee fee for up to three years.
Additionally, businesses in the five southern border provinces are eligible for a 50% reduction in instalment payments for the first three months, he concluded.