@ Halal | March-April . 2024

HIMP 2030 steers Malaysia ’ s halal industry towards global prominence

BY KHIRTINI K KUMARAN

Halal Development Corporation ( HDC ) Chairman Khairul Azwan Harun explained that HIMP 2030 was developed to catalyse the comprehensive growth of Malaysia ’ s halal industry by the Ministry of Investment , Trade and Industry ( MITI ), with strategic support from HDC .

“ The HIMP ’ s theme , ‘ Prominent , Visible and Globalised Halal Malaysia ,’ represents the nation ’ s aspiration to strengthen its leadership in the world ’ s halal industry and achieve socioeconomic progress ,” said Azwan .

“ HIMP 2030 also aims to advance Malaysia ’ s participation in the halal industry globally . It positions the industry as a lucrative and competitive opportunity , further develop a dynamic halal industry ecosystem that advances Malaysia ’ s products and services , and contribute positively to the growth of Malaysia ’ s socioeconomic wellbeing .”

STRATEGIC FRAMEWORK

Under HIMP 2030 , 23 initiatives have been identified to anchor the seven ( 7 ) strategic thrusts and address all identified opportunities and challenges . These seven strategic thrusts include :

• Enhancing halal-friendly policy and legislation .

• Creating new and bigger market spaces for Malaysia ’ s halal products and services .

• Establishing a larger pool of halal experts and professionals to meet global needs .

• Enhancing the quality and integrated infrastructure development fostering thought leadership .

• Fostering thought leadership .

• Producing more home-grown halal champions .

• Facilitate more competitive participation of bumiputeras in the halal industry . These initiatives are expected to be driven by the five key outcomes of HIMP 2030 , which include :

• Having a robust and diversified domestic halal industry .

• Possessing end-to-end Shariah compliance .

• The ease of doing business in Malaysia .

• Competitive business participation .

• The globalisation of Halal Malaysia . Phase A ( 2023-2025 ) of HIMP 2030 is underway , with efforts to build momentum , broaden expertise , and penetrate domestic and global markets .

Azwan stated : “ Additionally , the master plan outlines the development of the domestic halal industry to foster local champions capable of capturing the global halal market and establishing themselves as significant players across the halal industry supply chain .

“ This strategic direction aligns with HDC ’ s

vision of ensuring halal businesses are the preferred choice .

“ HIMP 2030 lays the foundation for Malaysia to emerge as a global leader in the halal industry , contributing significantly to the nation ’ s socioeconomic wellbeing .”

CHALLENGES AND SOLUTIONS

Leveraging the current halal ecosystem in Malaysia , the domestic halal industry aims to contribute 10.8 per cent towards Malaysia ’ s total gross domestic product ( GDP ) by 2030 .

However , Azwan highlighted that several challenges and opportunities have been identified within the domestic and global halal industry .

Challenges hindering the implementation of HIMP 2030 include : i . Low awareness of Halal Industry development ; the focus is still strong on the Halal management perspective , particularly in certification and standard development , such as product R & D and innovation . ii . Poor coordination to develop comprehensive policies and strategic thrusts for the halal industry . iii . Resources provided were not streamlined , making it difficult to control , monitor and report halal-related programmes and performance . iv . Lack of data on halal limits the capability to produce comprehensive analyses and reports which can assist the government in making informed decisions . v . Wrong perception of the value and importance of halal by industry players vi . Duplication of roles among agencies Not all halal-related activities are eligible for tax incentives ( e . g ., Manufacturing or bottling of beverages ). viii . Tax incentives offered for the halal sector vary and are not streamlined . Each Investment Promo Agency , like MIDA Corridors , has its own set of incentives . ix . Tax incentives are given based on activities for companies investing in HALMAS Status Parks rather than companies . x . Investors buy land in Halal Parks but do not develop or conduct any activities in the park . This has caused land speculation , where investors buy for investing purposes without intending to conduct business activities . However , he emphasised HDC ’ s proactive approach to addressing these challenges through the strategic thrusts and initiatives outlined in the master plan .

By fostering collaboration , streamlining policies , and enhancing awareness , HDC aims to overcome obstacles and ensure the successful execution of HIMP 2030 .

ENVISIONING THE FUTURE Looking ahead , HDC envisions a dynamic and