4.9.1 The Pattani Islamic Savings Cooperative Ltd.
The Islamic Savings Cooperative of Pattani Ltd. (hereafter called the Islam Pattani) began its operations on January 1, 1988. The cooperative was formed as a result of an effort by influential Muslim leaders, prominent Muslim intellectuals and well-known Muslim politicians. This initiative was a kind of influence from a neighbouring country, Malaysia, in which an Islamic bank was established in 1983. Among those people was Mr. Den Tohmeena who was at that time Pattani’s Member of Parliament.
A meeting was organised at the Prince of Songkhla University, Pattani Campus attended by two thousand people from Pattani, Yala, Nathiwat and some parts of Songkhla. The speakers, including Dato’ Dr. Abdul Halim Haji Ismail, the then Managing Director of Islamic Bank of Malaysia, Director of Cooperative Promotion Department, Deputy Cooperative Registrar and Mr. Den Tohmena, discussed the possibility of establishing an Islamic financial institution in Thailand. After the meeting, a steering committee was formed and their representatives travelled to Bangkok to discuss further details of the proposed Islamic savings cooperative.
Even though the Pattani Cooperative Promotion Office was deeply concerned about the feasibility of an interest-free cooperative, the office played a supportive role in forming the first ever Islamic financial institution in Thailand. The committee had to clearly explain to those officers how the cooperative could function. Eventually, they were convinced and granted savings cooperative status under the Cooperative Act B.E. 2511 on October 28, 1987, with 360 members. The first cooperative board of directors comprised well-known Muslim politicians, Islamic community leaders, Islamic scholars from the Pattani Islamic Committee, and Muslim professionals.
The Islamic Pattani currently has a head office and two branches. The head office located in Muang district covers Muang, Yaring and Yarang districts. The Palas office situated in Mayo district provides services to customers in Mayo, Panareh, Thongyangdeang, Saiburi, Maikhen, and Kapo districts, while Khokpo branch is responsible for Khokpo, Nongchik
93 and Mealan. The branches provide basic financial services such as receiving deposits, accepting loan requests and withdrawal facilities. The main office, apart from providing all those basic services, handles all administration, finance and accounting activities (PISC, 2005).
4.9.2 Ibnu Affan Savings Cooperative Ltd.
Ibnu Affan Savings Cooperative Ltd. (hereafter called Ibnu Affan) was formed by former Thai Muslim students who were studying at the universities in southern Thailand in the late 1990s. Some members of the group participated in a leadership training programme in Chonburi province and discussed the idea of establishing an Islamic financial institution with a Muslim economics lecturer. An Islamic savings cooperative model was then proposed.
They then conducted an exploratory study and found that there was only one interest-free financial institution in Thailand while the demand for Shariah-compliant financial services was huge. So the establishment of an Islamic savings cooperative was agreed upon by the members. They began by forming a small savings fund group which offered the opportunity for them to assess the possibility of the success of an Islamic financial institution in an unfriendly financial environment such as Thailand.
It was because of the rapid growth and increased interest from non- members during the first year that they decided to establish a savings cooperative. Their challenging task then was to explain to the government officers how an interest-free cooperative could function, on the one hand, and how to enable an Islamic savings cooperative to operate in line with the country’s cooperative law on the other. Eventually, they came to a conclusio n that satisfied both parties. The cooperative license was granted on June 1992.
Ibnu Affan currently has six offices. The main office located in Pattani town houses all its activities. The office is also the only office that conducts all the accounting, recording and reporting of the cooperative. The branches include Saiburi, Narathiwat, Yala, Ruesah and Chana. The cooperative uses modern facilities and now has its own website; it employs thirty-three managerial and administrative staff.
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4.9.3 Ibnu Auf Cooperative Ltd.
Islamic religious teachers and committed Muslims who were living around Sang Prateep Witataya Islamic School in Chalung, Satun, formed Ibnu Auf Islamic Cooperative Ltd (hereafter called Ibnu Auf). They began by establishing an Islamic funds group as a means of helping one another financially. A year later, some members made a field visit to an Islamic savings cooperative in Pattani province. Finding the Islamic cooperative model feasible, they thus decided to establish an Islamic cooperative.
When they applied to the Satun Cooperative Promotion Office to form an Islamic cooperative, the authority was very concerned about the feasibility of an interest-free cooperative. After a lot of discussions and enquiries between the two parties, the application was finally approved. The cooperative launched its operations as a service cooperative on June 9, 1993, with total funds of THB117,000 and 117 members.
Ibnu Auf presently occupies three offices, all located in Satun province. The main office is located in Chalung, housing thirteen staff and all the business activities of the cooperative. Other offices located in Langu and Thapea are mainly for depositing and withdrawal purposes. The members may also apply for purchase of goods at this office. The applications for purchase will be forwarded to the main office for approval and arrangement.
4.9.4 As-Siddeek Savings Coope rative Ltd.
As-Siddeek Savings Cooperative Ltd. (hereafter called As-Siddeek) was the result of cooperation and commitment of Muslim leaders, Islamic religious teachers and young professionals in Songkhla province who saw the need for an Islamic financial institution that served Muslims in the upper south of Thailand. After a few visits to an Islamic savings cooperative in Pattani, this group finally formed a savings group in 1994 and, subsequently registered under the Thailand Cooperative Act B.E. 2511 as a savings cooperative on December 12, 1997, with 106 founding members and THB47,160 initia l operating funds. It started operating a year later.
95 The cooperative main office now occupies a THB12 million building just outside Hat Yai city centre. In 2005, Nathawee branch was opened to capture the Muslim market in Nathawee and the nearby districts of Songkla. In order to reach a larger market-base, the cooperative also provides services through a mobile unit for Muslims in Phatthalung province, beginning from 2002. This unit was established to receive deposits and members’ funds. The members from Phatthalung need to travel to Hat Yai, which is about 100 kilometres away, to access other services. As-Siddeek is now administrated by ten full-time managerial and administrative staff, and utilises modern facilities in its day-to-day operations.
Table 4.12: Basic Information about the Cooperatives
Coope rative Type Location
The Pattani Islamic Savings Cooperative Ltd.
Thrift and credit cooperative Pattani Ibnu Affan Savings
Cooperative Ltd.
Thrift and credit cooperative Pattani, Yala, Narathiwat and Songkhla
Ibnu Auf Cooperative Ltd. Service cooperative Satun As-Siddeek Savings
Cooperative Ltd.
Thrift and credit cooperative Songkhla