Focus
@ Halal | MARCH-APRIL . 2023
Halal boom in Kazakhstan
High Muslim population provides opportunities for halal industry growth
BY DANIAL FAUZI
WITH a population exceeding 76 million and approximately 90 per cent of them practising the Islamic faith , the region of Central Asia marks itself as a suitable prospect for marketing halal products and services .
The large number of people practising the Muslim faith in the region is a boon to the halal industry , giving companies and organisations many business and marketing opportunities that would no doubt contribute to the trade landscape of the area .
Additionally , the region had also executed several government stratagems to assist in expanding and supporting the halal landscape , allowing for smooth and seamless business operations for companies , organisations and businesses and even incentivising investments .
With a wide range of business opportunities , such as food and beverage ( F & B ) and financing , there is no shortage of options for the business-minded . One such country is ripe for the picking - Kazakhstan .
BIRTH OF KAZAKHSTAN ’ S HALAL INDUSTRY
After declaring its independence from the now-dissolved Soviet Union in December 1991 , Kazakhstan registered itself as a member of the Organisation of Islamic Cooperation ( OIC ) in 1995 . After its independence , Kazakhstan ’ s citizens began actively practising the Islamic faith .
Additionally , Kazakhstan ’ s government started implementing strategies to create unified halal standards for its Muslim citizens to adhere to Sharia Law .
In 2005 , Sarsenbayev M , Chairman of the Association of Halal Industry of Kazakhstan , instructed the creation of a committee to develop halal standards . It was on behalf of Absattar-kazhy Derbisali , the Supreme mufti of the Spiritual Administration of Muslims of the Republic of Kazakhstan and approved them in the system of State Standards .
The halal standards utilised by Kazakhstan follow Malaysia ’ s international halal standards developed by a Federal agency , the Department of Islamic Development Malaysia ( JAKIM ).
From there , Kazakhstan established its religious authority . In 2006 , the Kazakhstan Halal Industry Association was founded , resulting in the country ’ s exponential growth of halal food companies .
OPPORTUNITIES FOR BUSINESS AND GROWTH
With a dense population of Muslims in Kazakhstan , there is no shortage of opportunities for business companies and organisations .
The halal F & B sector is ripe for the picking as the country has a large agricultural industry for producing halal food products . With a growing demand for meat and dairy products , one can see the potential for developing halal food processing facilities .
Kazakhstan citizens have also been interested in halal cosmetics and personal care products . With increasing demand and popularity for these products within the country comes opportunity .
Even pharmaceuticals are in growing demand in Kazakhstan , especially when Covid-19 took the world by storm in 2020 . One can see the potential for developing manufacturing facilities for halal medicines and supplements in Kazakhstan .
Although still in its early stages , there is also potential growth for the Islamic Finance industry in Kazakhstan . The country introduced regulations for Islamic banking thanks to the Astana International Financial Centre ( AIFC ) in 2018 . The AIFC is the pioneering platform in Central Asia to provide businesses with systemic access to Islamic Finance .
MIHAS 2023 will pave the way for exporters
WITH the rising trend in providing the Muslim market with halal services and products for their travels , many organisations and businesses require a hub to showcase their products and services to the world .
Therefore , the upcoming 19th Malaysia International Halal Showcase ( MIHAS ) 2023 is poised to become the hub for global exporters to access the fast-growing halal industry , which is expected to reach almost US $ 5 trillion by 2023 .
The 19th MIHAS event will be hosted by the Ministry of International Trade and Industry ( MITI ) and organised by the Malaysia External Trade Development Corporation ( MATRADE ). MIHAS 2023 will be held over four days from Sept 12-15 at the Malaysia International Trade and Exhibition Centre ( MITEC ).
As such , MIHAS 2023 can be the largest halal showcase post-pandemic as global , regional and domestic players gear up towards increasing trade and investments in the halal economy .
LATEST HALAL TRENDS The theme for this year ’ s MIHAS is “ Paving the Way of
Halal ”, which aims to kindle and expand cross-border trade among participating industry players . Therefore , MIHAS 2023 will feature the latest halal trends , technologies and innovations across 13 clusters comprising :
• Food and Beverage
• Modest Fashion & Lifestyle
• Cosmetics & Personal Care
• Food Technology & Packaging
• Islamic Finance & Fintech
• Media & Recreation
• Retail & Franchise
• Muslim-friendly Hospitality & Tourism
• Pharmaceutical & Medicals
• Services & Enablers
• Education
• E-Commerce
• Islamic Arts & Culture 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 event in 2021 .
MIHAS 2023 is expected to engage with over 35,000 local and international visitors and 1,500 booths , targeting 40 country pavilions , more than last year ’ s MIHAS event which featured 1,200 booths from 33 countries .
INTERNATIONAL SOURCING PROGRAMME
As in previous years , MATRADE will be organising the International Sourcing Programme ( INSP ) in conjunction with MIHAS 2023 . The INSP is a one-on-one business meeting programme between foreign buyers and Malaysian exporters .
INSP 2022 generated sales worth RM745.2 million . During MIHAS 2022 , a total of six Kazakhstan companies and 13 Uzbekistan companies participated in INSP .
Through MIHAS , MATRADE continues to fortify Malaysia as the heart of the global halal hub , galvanising the global halal industry and promoting innovation .
Malaysian companies and other SMEs wishing to enter the halal segment in Kazakhstan and Central Asia can reach out to MATRADE Almaty , which covers the Central Asia region .