MALAYSIA’S HALAL INDUSTRY
The Halal industry of today is strong and robust with many new and expanding opportunities for economic growth. The consumers awareness on Halal products is increasing around the world. Many International organisations begin to embrace Halal values in line with those practiced by Muslims, where the core values of Halal are consistent with the enhancement of social wellbeing, protection of the environment and ethics of business conduct.
With a comprehensive Halal ecosystem, Malaysia sets the bar globally as the reference for best practices in the development of Halal standards and business processes through nurturing growth and participation of local business into the global Halal market.
Malaysia has developed the Halal Industry Master Plan 2030 (HIMP 2030) to catalyse its strengths towards the development of Halal industry holistically. The theme ‘Prominent, Visible and Globalised Halal Malaysia’ depicts Malaysia’s goal to achieve socio economic development through leading the global Halal industry.
The importance of Halal industry encompasses the increasing domestic demands with Malaysia being a net importer of various products, including Halal products. On top of that, there is a huge global halal market potential with an estimation of 80 percent gap between demand and production
of Halal products.
Halal industry also contributes to economic welfare by giving added value, promotes trade and investment as well as provides broader job opportunities and increases the safety of products. Malaysia is dubbed as the pioneer of the Halal industry with more than 40 years of experience in the development of the Halal industry.
According to the master plan, by 2030, the global Halal market is expected to grow to USD 5.0 trillion, while domestic growth is estimated to reach USD 113.2 billion. Among the core sectors that are expected to contribute to the growth encapsulate food and beverages; cosmetic and personal care; pharmaceutical and others.
The HIMP 2030 focuses on strengthening and internationalizing Halal ecosystem in Malaysia by re-evaluating and improving existing initiatives, as well as introducing high impact initiatives in line with the Government’s direction.
The Halal ecosystem is a network of components involved in growth cycle and delivery of Halal products or services contributing to the overall socio-economic development. Each component in the ecosystem has its own unique activities that are interrelated with each other, creating a constant evolving relationship towards sustainability. With a comprehensive Halal ecosystem, Malaysia is endowed with a competitive advantage to fully capitalise this timely opportunity.
HALAL DEVELOPMENT CORPORATION
HDC steers Malaysia’s halal industry that fosters socio-economic growth towards achieving global competitiveness. We central coordinate all matters pertaining halal development agenda through the Halal Industry Development Council, a special committee chaired by the Prime Minister with an objective to increase halal exports and direct investments. Our unique value propositions are embedded in our halal business consultancy, talent development and business matching platform services specially designed for local and international players.
HIMP 2030 KEY ENABLERS
Key enablers are listed below and they were put in place to support smooth implementation of HIMP 2030.
1) Halal Traceability Services
Strong focus on encouraging Halal innovation through the technological advancement of Industrial Relation 4.0 (IR 4.0), Internet of Things (IoT), Blockchain, FinTech and Big Data to ensure Halal products go through an entirely verified supply chain.
2) Talent Development/Upskilling Services
Competent Halal professionals and Halal experts to support comprehensive and future developments of the Halal ecosystem through the alignment of the Halal occupational framework.
3) Standards, Accreditation and Certification Services
Robust standards, accreditation and certification services ensuring the integrity of the Halal supply chain, in addition to ensuring global trust in Malaysia’s accreditation and compatibility with Halal emerging markets.
4) Islamic Finance
Accessibility to financial support for players in the Halal supply chain encouraging and supporting participation growth in the Halal industry through the innovation and promotion of a hybrid Islamic financing structure.
5) Logistic Services
Dedicated logistic services, from sourcing of raw materials to reaching the consumer (i.e farm to fork), to avoid cross-contamination thus ensuring the safety and quality of Halal certified products.