January-February . 2024 | @ Halal

Malaysian companies can tap into Germany ’ s halal market

The total value of the halal market in Germany is around US $ 3.9 billion annually . ing ,” said MATRADE Frankfurt in a recent statement .

In Europe , it has a lot of similarities with organic and vegan products .

Halal not only refrains manufacturers from using forbidden or haram ingredients but also motivates them to focus intensely on caring for the planet , social well-being , and good governance .

It aligns with the Sustainable Development Goals set by the United Nations and Malaysia ’ s strong commitment as a signatory to the Paris Agreement , which is aimed at strengthening the global response to the threat of climate change .

HALAL MARKET IN GERMANY

From the F & B perspective , the halal food sector in Europe , particularly in Germany , is booming and creates many opportunities for manufacturers .

The total value of the halal market in Germany is around US $ 3.9 billion annually . Therefore , the halal market is huge in Germany as the country has a sizable number of Muslims and a demand for halal food items .

“ Germans are also keen to get halal products because halal is not only related to a

The number of Muslims grows yearly , creating a niche market for halal products and services , including a logistic network . It has increased the opportunities for Malaysian suppliers of halal products and services in Germany .

Halal is a multi-billion and dynamic industry with a pool of consumers with strong purchasing power .

According to the State of the Global Islamic Economy Report produced by DinarStandard - a US-based research and advisory firm , consumer spending in global Islamic Economy sectors grew 9.5 per cent YOY to US $ 2.29 trillion in 2022 on food , pharmaceuticals , cosmetics , modest fashion , travel , and media .

Malaysia also retained the top spot in the Global Islamic Economy Indicator ( GIEI ) for the 10th consecutive year .

“ Malaysian companies who wish to explore Germany ’ s market can use halal as a business value proposition that emphasises strict supply chain management to ensure the highest level of care in product manufacturreligion but halal means clean , hygienic and every step of the production procedure is monitored carefully .”

The rising demand for halal products has opened the need for a well-functioning logistics network . Due to this , Germany ’ s logistics companies are increasingly eyeing the halal niche market since there is a vast consumer base of more than two billion Muslims worldwide , including the growing Muslim population in Germany itself .

MALAYSIA ’ S INTERNATIONAL HALAL SHOWCASE

As Malaysia ’ s National Trade Promotion agency , Malaysia External Trade Development Corporation ( MATRADE ) has put much effort into promoting Malaysia as a global halal hub and preferred sourcing destination .

MATRADE is the organiser of the largest halal trade event in the world , the Malaysia International Halal Showcase ( MIHAS ).

The upcoming 20th Malaysia International Halal Showcase ( MIHAS 2024 ) is poised to become the gateway for global exporters to access the fast-growing halal industry , which is expected to reach almost US $ 5 trillion by 2030 .

Hosted by the Ministry of Investment , Trade and Industry ( MITI ), MIHAS 2024 will be held over four days , from Sept 17-20 , at the Malaysia International Trade and Exhibition Centre ( MITEC ).

MIHAS 2024 is expected to be the largest halal showcase post-pandemic as global , regional and domestic players gear up towards increasing trade and investments in the halal economy .

MATRADE won its first World Trade Promotion Organisations ( WTPO ) Award under the “ Best Use of Information Technology ” category for its initiative in organising the virtual edition of the 17th MIHAS in 2021 .

EXPLORING OPPORTUNITIES WITH MATRADE

With its presence in Frankfurt , Germany , MATRADE Frankfurt is ready to build a closer connection between the Malaysian and German industry players and forge more strategic partnerships in the halal sector for the future .

Malaysia and Germany can collaborate to explore the potential of this industry through innovation partnership and in sustainable supply chain management .

“ MATRADE Frankfurt welcomes all German industry players , not only in the F & B sector but also from other manufacturing segments such as pharmaceuticals and FMCGs , to partner with Malaysia to capitalise on the prospects of the halal industry in the European region .

BY DANIAL FAUZI

THE Ekonomi MADANI framework launched by Prime Minister Datuk Seri Anwar Ibrahim in July 2023 emphasises intangible values such as inclusiveness , good governance and social justice , representing a holistic framework for a better economy .

As Ekonomi MADANI nudges many organisations towards reforms to rebuild Malaysia ’ s economy , Bursa Malaysia recently unveiled its new logo , marking the company ’ s resurgence towards its march to uphold its responsibility to make Malaysia ’ s capital markets more inclusive , innovative , vibrant and operated with the highest level of integrity .

“ When Bursa Malaysia launched what was then known as the Kuala Lumpur Shariah Index in 1999 , it opened doors for a new set of investors and broke grounds on investments permissible under Islamic principles ,” said Finance Minister II , Datuk Seri Amir Hamzah Azizan during the Bursa Malaysia ’ s logo launch .

“ As the years went by , the Shariah screening standards were refined , while new products and indices were introduced to meet investor ’ s fluxing demand .

“ Bursa Malaysia launched the world ’ s first Shariah-compliant voluntary carbon exchange recently . In one fell swoop , Bursa Malaysia again became a trailblazer in shariah investing and a proponent for environmental , social and governance ESG ) initiatives .”

In conjunction with Bursa Malaysia ’ s new logo launch , the Bursa Gold Dinar , an app-based digital investment platform backed by real gold bars and coins , was also unveiled .

The app provides Shariah-compliant investment that all walks of life can participate in to build their financial security , staying true to Ekonomi MADANI ’ s goal of elevating the Islamic economy .

“ This will not only open up new investment opportunities but also the door to economic inclusivity , where every layer of society , regardless of economic status , has access to viable investments ,” said Amir .

The MADANI framework has provided a clear roadmap for organisations to propel Malaysia to a higher economic value chain , breathing confidence into global investors . Within the first half of 2023 , the country managed to secure RM225 billion in approved investments , representing a 6.6 per cent increase from a year earlier .

“ This indicates that investors have responded well to the Ekonomi MADANI vision , along with the supporting policy documents , namely the National Energy Transition Roadmap ( NETR ), the New Industrial Master Plan 2030 ( NIMP ) and the Mid-term Review of the 12th Malaysia Plan .

“ The economic framework and the policy documents demonstrate the government ’ s commitment to elevating Malaysia ’ s position in the global supply chain and encouraging our businesses ’ ESG values .

“ In the coming months and years , the Government will see through the execution of these policy documents and ensure that Ekonomi MADANI ’ s vision will become a reality .” –