BY ZAFIRAH ZAFRUDDIN

To support this national agenda, the Malaysian Industrial Development Finance Berhad( MIDF) launched the Halal Accreditation & Technology Improvement( HATI) programme on Jul 15, 2024.

HATI is designed to empower small and medium-sized enterprises( SMEs) in the manufacturing and services sectors, particularly within the halal industry.

At the launch of HATI, the Ministry of Investment, Trade, and Industry( MITI) Minister Tengku Zafrul Abdul Aziz stated:“ HATI will empower SMEs to achieve halal certification, enhance their capabilities, and seize opportunities in the international marketplace.”

PROVISION OF FUNDS

With a capital pool of RM100 million, HATI seeks to facilitate the transition to halal compliance and enhance technical readiness among local SMEs. The maximum funding for each eligible SME is capped at RM5 million. This allocation could support up to 20 businesses at full financing capacity.

However, as MIDF Chief Executive Officer( CEO) Azizi Mustafa pointed out:“ In practice, many SMEs may not require the full RM5 million, especially those in the initial stages of halal implementation. Therefore, the actual number of beneficiaries may exceed this estimate.”

While halal certification is supported, the programme’ s funding also covers other key areas. Eligible expenses include premises renovation, machinery and automation, branding and packaging, as well as training and consultancy.

Azizi Mustafa

“ While HATI is open to all SMEs in the halal supply chain, the programme prioritises sectors with high impact and growth potential,” said Azizi.

These sectors encompass food and beverage( F & B), pharmaceuticals and nutraceuticals, cosmetics and personal care, and logistics and supply chain services. This focus is consistent with the objectives of Malaysia’ s Halal Industry Master Plan( HIMP 2030) and the New Industrial Master Plan( NIMP 2030).

TECHNOLOGICAL UPGRADES

Going beyond financial support, HATI offers capacity-building initiatives such as training workshops focused on leveraging Industry 4.0 tools within halal processes. Additionally, SMEs will also receive expert consultations from Halal Development Corporation Berhad( HDC) and technical partners to guide them in modernising their production while ensuring strict halal compliance.

This approach, highlighted Azizi, directly supports Malaysia’ s“ digital first” manufacturing initiative, as outlined in NIMP 2030.

Essential technologies for SMEs to boost both halal compliance and market competitiveness are outlined as follows:

• Automation and smart manufacturing tools: For

consistent hygiene and halal assurance.

• Digital traceability systems: Use of RFID, QR codes, or blockchain for supply chain integrity.

• Digital quality assurance systems: To track contaminants, cross-contamination risk, or non-compliance in production.

• Halal-friendly ERP and documentation software: Halal-friendly ERP and documentation software: For overseeing audits, certification, and compliance documentation.

• Packaging innovation technologies: Packaging innovation technologies: To ensure halal identification, packaging security, and adherence to export regulations.

COLLABORATION & IMPLEMENTATION

“ Collaboration is the backbone of HATI’ s ecosystem-centric model,” Azizi remarked.

The impact of this model is evident in the partnership between MIDF and Halal Development Corporation( HDC). For one, their joint effort has made halal consultancy services much more affordable and accessible for SMEs, reducing the cost from RM20,000 to RM5,000.

HATI’ s collaborative approach also relies on the engagement of key players, each with a defined role. These stakeholders contribute in the following ways:

• MIDF: Funds essential upgrades and certifications.

• HDC: Offers technical expertise, training, and mentorship.

• Department of Islamic Development Malaysia( JAKIM): Regulates and ensures compliance with Malaysian halal standards and Shariah guidelines.

• Other stakeholders: Encompasses consultants, auditors,

and international bodies.

Furthermore, HATI follows a five-stage framework to track the progress of participating SMEs: 1. Pre-application assessment 2. Halal readiness training 3. Certification roadmap planning 4. Certification submission 5. Post-certification monitoring

HATI commenced with a pilot phase involving 20 SMEs across various halal sectors. These companies are fully supported, from funding to mentorship and certification assistance.

While still in its initial stages, this pilot aims to document the experiences of participating SMEs as case studies. Thiswill not only allow for the demonstration of scalability and measurement of business impact but also provide real-world feedback to enhance HATI’ s support mechanisms.

“ HATI is designed to be scalable and expandable,” said MIDF CEO Azizi Mustafa. The initial RM100 million allocation serves as a kick-off, and future funding expansions are actively being considered.

Notably, the outcomes of the pilot phase, SME adoption rates, MITI’ s strategic guidance, and potential collaborations with other agencies and financial institutions will guide future development.

“ The vision is for HATI to become a national anchor programme for halal development, continuously evolving to support deeper digitalisation, ESG compliance, and cross-border trade growth within the halal industry,” he affirmed. –