The Islamic Bank of Thailand will set aside 2.4 billion baht next year to help finance halal food businesses, according to managing director Dheerasak Suwannayos.

The budget is part of a total of 6.4 billion baht that the bank plans to lend next year, almost double this year's target of 3.3 billion.

About 1.4 billion baht out of the 2009 budget will be provided to small and medium enterprises (SMEs), with another 2.6 billion allotted to corporate and consumer hire-purchase products.

"We will expand the loan budget next year as we want to increase liquidity for the business sector, as operators still need access to financial sources in order to expand their businesses further," Mr Dheerasak said.

The bank has seen strong potential to increase exports of Thai-made halal products, he said, at the Bangkok Global Halal Conference 2008 held yesterday.

Mr Dheerasak added that the loan expansion would also benefit the bank. "This six-billion-baht budget together with new strategies and an image revamp plan will also help raise the bank's asset value to 20 billion baht in 2009 from 16 billion at present."

The new strategies include its setting up new divisions for niche customers, each of which needs different financial packages and services.

"The new divisions will be monitoring and providing suitable financial products to corporate, halal businesses, Islamic SMEs, Islamic hire-purchase and consumer finance. We also plan to open eight more branches around the country to be closer to our clients," he said.

The bank plans to focus on becoming more of a business adviser to its clients and is currently recruiting 100 more personnel to accommodate its growth plan.

Meanwhile, the Islamic Bank also hopes that its advisory service will be able to play a significant role in improving halal food industrial standards in Thailand.

"Although [the halal food sector] has a lot of potential as our producers here are making good-quality products, the different standards used in each country in halal food processing are still a concern. We may meet standards here but do not meet [standards] elsewhere," he said.