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BY DR SYED MARWAN
IIUM Institute of Islamic Banking and Finance
MALAYSIA has built a strong reputation as a leader in the global halal economy . It has maintained the top spot in the Global Islamic Economy Indicator ( GIEI ) for ten consecutive years . The nation ’ s halal industry has developed a well-established ecosystem that includes sectors of Islamic finance , food , fashion , pharmaceuticals , and tourism .
The global halal market continues to grow , reaching US $ 2.29 trillion in 2022 . While over two billion Muslim consumers primarily drive this growth , it also attracts non-Muslim consumers who are drawn to the accessibility , quality , and ethical values associated with halal products .
Many also appreciate halal ’ s alignment with sustainability and social responsibility , which makes it an increasingly attractive choice for consumers worldwide .
The recently tabled Madani Budget 2025 has included various initiatives to support the growth of the halal industry and ensure its sustainable progress .
The budget , themed “ Madani Economy : Empowering the People ”, focuses on revitalising the economy ( membugar ekonomi ), driving transformation ( menjana perubahan ), and enhancing the well-being of the people ( mensejahtera rakyat ).
In his budget speech , the Finance Minister captured the heart of this vision by quoting Aristotle : “ The virtue of wealth is not to have it but to use it rightly .”
This statement embodies the budget ’ s philosophy that wealth should serve the common good and not personal gain . From this perspective , prosperity is about more than the accumulation of wealth but about empowering communities to foster sustainable
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growth and well-being for all .
Overall , the Madani Budget 2025 allocates approximately RM1.67 billion to direct halalspecific funding . In contrast , support to the broader halal ecosystem in halal-related sectors such as Islamic finance , Islamic social finance , green technology , and halal supply chains brings the total to more than RM2 billion . This reflects the government ’ s commitment
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to ensuring the sustainable growth of the halal ecosystem .
BROADER SUPPORT
The Madani Budget 2025 makes promising advances in supporting Malaysia ’ s halal industry , but certain areas can still be enhanced . While initiatives like the HalalBiz Financing Programme and MYeHALAL upgrades are
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