@Halal January/February 2023 | Page 26

An international gateway SELHAC 2023 underlines the importance of Islamic financing in the halal industry

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Industry

@ Halal | JANUARY-FEBRUARY . 2023
Mat Ghazali Abd Rakim .
BY FATIHAH MANAF

ISLAMIC financing is crucial in the halal industry as it enables halal business transactions . Selangor International Halal Convention ( SELHAC ), returning in March 2023 at the World Trade Centre Kuala Lumpur ( WTCKL ), is set to highlight the topic of Shariah-compliant financing and halal exports .

Organised by the Selangor Islamic Affairs , Consumer and Halal Industry Standing Committee , SELHAC is managed by Menteri Besar Selangor Incorporated ( MBI )' s subsidiary , HIS Toyyiba Sdn Bhd ( formerly known as Aspire Flagship Sdn Bhd ) or better known as Halal International Selangor ( HIS ).
According to HIS CEO Mat Ghazali Abd Rakim , despite rapid growth , the Islamic financial sector is currently inappreciable compared to its true potential . The global market for Muslims in this sector has yet to be fully explored .
“ In this aspect , we are organising the Islamic Finance Forum on Mar 10 , 2023 . The forum will include discussions on Islamic banking , Ar Rahnu and Takaful services and further elaborate on the significance of Shariah-compliant financing ,” said Ghazali .
“ One of the aspects that we want the industry players to focus on and practise are strong moral and ethical considerations when conducting businesses . This issue will be discussed during the forum . We encourage socially acceptable investments and better personal or corporate etiquette .”
Acknowledging the importance of Islamic finance for the growth of the State ’ s halal industry , HIS recently signed a memorandum of understanding ( MoU ) with Bank Islam Malaysia Berhad ( BIMB ) and forged a strategic collaboration with the Association of Islamic Banking and Financial Institutions Malaysia ( AIBIM ).
SELANGOR , INTERNATIONAL HALAL GATEWAY
Touching on the theme for SELHAC 2023 - ‘ Selangor , international halal gateway ’, Ghazali noted that the value of the halal market would increase globally . The Global Islamic Economy Report reported that it would grow from RM8.8 trillion to RM14 trillion by 2028 .
Considering this scenario , the Selangor

An international gateway SELHAC 2023 underlines the importance of Islamic financing in the halal industry

government , through HIS , will embrace halal businesses to drive economic growth . As a worldwide halal hub , the State will attract and incorporate local and international companies into its halal industry .
“ As Malaysia is one of the leading pioneers of halal professionals , with concerted efforts to assist the innovation-led expansion of the global halal business , SELHAC 2023 will serve as the Selangor international gateway for traders and investors ,” he stated .
KNOWLEDGE-SHARING AND NETWORKING PLATFORM
Ghazali shared that the decision to hold the event at WTCKL helped the organiser to increase the number of booths from 105 to 200 .
“ There will be a few other events happening simultaneously at the venue . So , we are expecting 8000 visitors for SELHAC 2023 . We are targeting business matchings worth RM50 million , an increase from RM38 million last year .
“ We will also have more networking sessions between local and international companies from Thailand , Indonesia , etc . This will be an advantage to the exhibitors , especially SMEs , as they will gain domestic and international halal market exposure .”
SELHAC visitors , on the other hand , will gain more knowledge regarding the halal industry , including halal products , halal networking , Islamic finance , halal pharmaceuticals , modest fashion , halal logistics and many more .
“ Government organisations and local government-linked companies are also invited to be part of the event . They can work hand in hand with HIS to grow halal initiatives ,” he added .
AN OVERWHELMING RESPONSE FROM HALAL PLAYERS
Ghazali said the response for SELHAC 2023 was better than previously . Those who participated in last year ’ s SELHAC are returning to the event this year following the success of the 2022 edition .
“ We received enquiries from local halal players and foreign companies based in Malaysia . This time we will bring more international players from Thailand and Bangladesh . We are still waiting to receive confirmation from Indonesia and Australia .
“ This time , our preparation for SELHAC 2023 focuses more on quality . HIS has already engaged an experienced vendor to manage this event . We believe , with their expertise , we can make SELHAC 2023 successful .”
By having SELHAC as an annual event , HIS believes halal players will benefit more from promotion and networking . It will help expand their knowledge regarding export mechanisms and the usage of technologies in the industry .
STRENGTHENING SELANGOR ’ S HALAL INDUSTRY
When asked about the organisation ’ s plans moving forward , Ghazali shared : “ HIS will establish Selangor Halal Economic Zone ( SHEZ ), previously known as the halal hub , for industries to set up their factories with all the incentives from Federal and State levels . This will make it easier for them to manufacture halal products and meet the demand and standards of the global halal market .”
“ By raising awareness among industry players , the halal economy and businesses in Selangor will grow , as well as ethical consumerism . The establishment of SHEZ , as outlined in Rancangan Selangor 1 ( RS1 ), will result in increased business opportunities , market value and job opportunities for the local people , thereby elevating a robust halal ecosystem for industry advancement .”
He added that HIS would collaborate with other organisations in creating awareness of good practices and halal-related programmes , including halal certification , ‘ sertu ’, halal training and halal investments in Selangor . He revealed that the organisation also aimed to promote digital marketing to make the State ’ s halal products accessible globally .
We are working closely to establish a halal park in Bangladesh managed by HIS through the country ’ s collaboration with MBI Selangor .”