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Government spending and Private Consumption to spur Thai economy

With a 3.8% increase in private consumption in the second quarter this year and higher tourism growth, the Thai economy seems to be on the way of a modest economic recovery. Deputy finance minister Wisudhi Srisuphan yesterday voiced optimism that government spending in infrastructure projects will help bolster economy with continual growth is expected in the second half of the year. Besides, government’s spending on infrastructure mega projects would stimulate growth in the second half of this year. GDP growth this year is now projected to rise to 3.3%, exceeding the earlier forecast 3%, the University of the Thai Chamber of Commerce (UTCC) revealed last week. The improved growth was attributed mainly to government spending in mega projects and the charter referendum which ended peacefully with the majority giving approval to the charter. Thanawat Pholvichai, director of the UTCC’s Center for Economic and Business Forecasting, said the recent sign of economic recovery was seen in the consumers confidence index in July which rose for the first time in seven months, along with lower inflation rate, improving drought situation helped boost the growth. BOT: High consumption growth in Q2 reflects economic recovery The Bank of Thailand (BOT) has indicated that the Thai economy has fully recovered, judging from the significant increases in GDP and private consumption in the second quarter. Mr Jaturong Jantarangs, the BOT’s Assistant Governor for the Monetary Policy Group, noted that national GDP expanded 3.5 percent year-on-year during the second quarter. Moreover, according to a report by the National Economic and Social Development Board, private consumption also posted a rise of 3.8 percent. He said both figures are indicative of full economic recovery although public investment, which has been a major driver of the economy, is slowing down slightly while private investment remains sluggish. Compared with domestic factors, the Assistant Governor pointed out that the central bank is indeed giving more weig

FROM banking to food to cosmetics, the Halal economy is constantly growing.

The food industry is one of the biggest markets in the Halal sector, as it caters to the entire 1.8 billion Muslim consumers globally. According to The State of the Global Islamic Economy Report 2015/16 published by Thomson Reuters, muslim consumer spending on food and lifestyle has reached US$1.8 trillion in 2014 and is projected to reach US$2.6 trillion in 2016. The Brunei Times journalist Zafirah Zaili recently interviewed Dato Seri Ibrahim Haji Ahmad Badawi, executive chairman of Brahim Holdings Sdn Bhd, to delve into his thoughts on the global food industry. You’ve been in the Halal food industry for almost 30 years now and have succeeded in building a business that expands to Japan and The Middle East. What should local companies here do to reach that level of success? There are so many opportunities in the market especially now that the global Halal market is expanding at such a fast rate. Even non-Muslim countries like Japan and China are stepping up their game and developing Halal products because they want to tap into this huge market. They do however have their own challenges and obstacles as they lack the knowledge and expertise on Halal. Brunei has an upper hand because it is well known for its strict Halal certification. Companies here should really take advantage of this and supply these countries with Halal products or partner up with them to supply expertise and knowledge on the process of Halal. The opportunities in the market are endless, it's all a matter of grabbing the ones that are viable and feasible for Brunei's capabilities. The bruneihalal brand is now available in the UK and is also planning to penetrate markets in Southeast Asia, Europe and the Middle East. What can they do to ensure a successful expansion? Being able to export to other countries is always a great accomplishment for a company and I believe that the bruneihalal brand has worked hard to be able to penetrate other markets. There are many other markets in need of Muslim partners and also experts in Halal and th

Indonesia must look to neighbours for halal export inspiration

Indonesia’s halal industry is looking to follow the footsteps of neighbours Malaysia and Thailand to become one of the world’s major halal product suppliers, as it looks to seize the vast opportunity brought about by the ever increasing global halal market. “As we know, the global halal trade is growing fast, especially halal product exports from the Asean region to middle east and OIC (Organisation of Islamic Cooperation) countries, as the biggest consumers of halal products,” Mohamad Bawazeer, chairman of the Middle East and Organization of Islamic Conference (OIC) at the Indonesian Chamber of Commerce and Industry, told Asean Today. “And of course this will cause a trade competition between the Asean countries in taking advantage of this opportunity,” he added. This opportunity, is no small matter. It is estimated that Muslims account for 27 per cent of the world population, or 1.7 billion people, and is expected to surge to 2.8 billion in 2050. The current halal product supply is only enough to meet more or less 20 percent of the world halal demand. Furthermore, the whole of the Muslim population currently consumes an estimated US$265 billion worth of halal foods a year. What is interesting is that the spending power of Muslims is increasing. According to the State of the Global Islamic Economy 2014-2015 report by Thomson Reuters, the global expenditure of Muslim consumers on food and lifestyle grew 9.5 percent from the previous year’s estimate to US$2 trillion in 2013 and is expected to reach US$3.7 trillion by 2019. Simply put, this is a growing yet gravely undersupplied market, making it a mouth-watering prospect for many the world’s halal producers. Asean countries, both the Muslim and non-Muslim majorities, have jumped into the bandwagon. While Malaysia and Thailand continue to establish themselves as two of the world’s main halal kitchens, other countries in the region have also started to pull up their sleeves. Singapore has been building its halal brand through product development

Tanjung Manis Halal Hub can be China’s stepping stone into Asean market

August 24, 2016, Wednesday Tanjung Manis Halal Hub can be China’s stepping stone into Asean market XI’AN, China: Sarawak can complement efforts of China’s halal industry players to expand into the Asean market and beyond by tapping into the strategic Tanjung Manis Halal Hub (TMHH) in the state. Minister of Industrial and Entrepreneur Development, Trade and Investment Datuk Amar Awang Tengah Ali Hasan said this in a meeting with business leaders from the timber and halal food industry in Xian yesterday. “This could be your stepping stone into the Asean market in the Asean Business Community which has a population of 625 million,” he said. Awang Tengah is leading the state’s delegation on an investment promotion mission to China, starting in Xian where they meet business and industry leaders to establish ties for prospective economic cooperation and collaboration. Among those at the meeting were Xiao Nan, (Minister of E-Commerce) of Shaanxi Halal Food Chamber of Commerce, Xi’an Muslim Chamber of Commerce and furniture and halal food industry players in Xian. The association represents some 2,000 companies in the halal food industry in China. Tanjung Manis Halal Hub (TMHH) is a specially designated zone aimed at tapping the lucrative global halal food market, and can serve the demand of Malaysia, Brunei, Indonesia, Thailand and other countries in the vicinity. Malaysia has been spearheading the halal industry and being a pioneer in halal certification, Malaysia ensures the integrity of halal products and services through strict compliance with Syariah requirements whilst still being business focused. According to the Tanjung Manis Halal Hub Master Plan approved by the Sarawak state government on March 25, 2015, the total area of TMHH is 124,517 hectares, out of which 89,753 hectares are still available for investment in various halal products. It is the largest among all the other halal hubs or parks in Malaysia and earmarked for the nucleus development of manufacturing, processing, aquaculture, agricultu

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