Phuket MP backs legal recognition for Islamic cooperatives

A Phuket MP is backing a proposal to amend Thailand’s Cooperative Act to formally recognise Islamic cooperatives and provide for interest-free savings and financial transactions in line with Sharia principles.

Somchart Techathavorncharoen, MP for Phuket Constituency 1 of the People’s Party, raised the proposal at the third meeting of a working group on Islamic cooperative reform in Phuket on 31 October 2026. The meeting included representatives of the Islamic Cooperative League of Thailand, local administrative officials and Islamic cooperatives from Phuket, Krabi and Songkhla.

The proposed amendment would create a separate Category 8 for Islamic cooperatives under the Act, providing a legal framework for their savings and financial activities. The reform remains under discussion.

The working group agreed to meet again in November 2026 and invite Islamic cooperative presidents from across Thailand to discuss the proposed changes with the parliamentary working group under the House Committee on Finance and Fiscal Affairs.

The reform drive was also highlighted at the ISMY NEXT 2027 forum and the annual general meeting of Al-Islamiyah Cooperative Ltd. Phuket Vice Governor Romdon Hayiawae called for stronger welfare systems, transparent management and wider cooperation among Islamic cooperatives.

Romdon urged cooperatives to ensure that their benefits lead to tangible improvements for members facing economic difficulties. He also encouraged them to support members seeking opportunities to undertake the Hajj and Umrah pilgrimages, and to expand networks beyond Phuket to support communities and economic development elsewhere.

The forum included discussions on finance, innovation and business growth, as well as the distribution of 20 zakat grants, five educational scholarships and 10 outstanding-member awards.