Islamic Bank of Thailand joins CPF’s employee saving program

Bangkok (12 October 2018) -- Charoen Pokphand Foods Public Company Limited (CPF) has joined forced with Islamic Bank of Thailand as the latest financial institute to provide a low interest rate package to CPF’s “Debt Free, Happy life” saving program to help CPF employees become debt-free.

The program is not only helped manage employees’ debt but also encourages the employees to have more financial discipline. They have to create their accounts to manage household expenses systematically.

At present, there are four banks offer such low-interest-rate package to the project including Government Savings Bank, Thanachart Bank, Bangkok Bank and the latest Islamic Bank since it was kicked off in 2015.

CPF’s Vice president Mrs.Jitpinun Rattanachaisuwan said the employee’s household debts mainly derive from loan shark and credit card, which is among the most concerned problems of workers. Bad financial situation has directly affected their quality of life and consequently, performance at workplace.

The Company realizes that workforce is one of the most important driven engine of the business. With serious financial trouble, employees could not work well. As a result, the company has partnered with financial institutes to provide low-interest loans for debt-laden employees of CPF.

Successfully, the program now has been expanded to cover a total of 47 companies both in CPF and Charoen Pokphand Group’s subsidiaries.    

“The partnership with Islamic Bank of Thailand will help the employees, especially the low-income group, to have wider financial sources. In addition, the company also provides financial consultant to help them manage their debts systematically and effectively,” Mrs.Jitpinun.

Mr. Putthachart Phaiphut, Vice President at CPF, said the current saving program focuses on improving financial literacy. The main goal is to build financial discipline by teaching employees to record their household spending and incomes.

CPF targets its 3,500 employees from the pig farms nationwide will apply household budget system within 2018. Currently, 2,454 employees had already involved the project with the guidance from their supervisors. Additionally, 1,837 employees started a saving plan already. The average saving is 1,260 per month.

One of a debtor works at pig farm in Chachoengsao, who also a member under the “Debt Free, Happy Life” saving program said all debtors have worried about payment period especially from shark loan, which charge very high interest rate. These cause them not concentrate on their works and low efficiency.

“The Debt Free, Happy Life has returned my life into normal again since I can release from all debts,” the worker pointed.

He added that the program gives him a better metal health, better financial discipline, saving for his retirement and, consequently, a positive impact to his work performance.

“Debt Free, Happy life” Saving Program was established in 2015 for employees who work in pig business. As of September 30, it has provided low interest loan worth 42 million baht to 373 employees in 82 pig farms. 87 participants are now debt-free. In addition, the company expects that 22 more employees will complete the payment of their loans within the end of 2018.

After the successful run with employees from CPF’s pig business, the saving program has been extended to all employees who work for CP group since 2017.