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September-October . 2024 | @ Halal
Budget 2025
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FREEPIK
Key Announcements
UNDER the Madani Budget 2025 , the government introduced a range of strategic initiatives to support the growth and resilience of Malaysia ’ s halal industry :
Merger of HDC with MATRADE The consolidation of Halal Development Corporation with MATRADE is a bold move that aims to streamline the management and promotion of the halal industry . By combining HDC ’ s industry expertise with MATRADE ’ s export support , the new structure seeks to provide halal businesses with a more integrated approach to enhance export growth and international partnerships . However , as the sector expands , a focus on diversifying halal products beyond food and compliance is essential .
Support for export growth through MATRADE With RM20 million allocated to MATRADE , the budget provides support for halal export initiatives such as the Malaysia International Halal Showcase ( MIHAS ). This can open more doors for halal businesses in global markets and help them develop stronger international connections . To further enhance Malaysia ’ s broader halal economy , this approach can be expanded to industries of halal tourism , cosmetics , and pharmaceuticals .
Enhancement of halal certification with MYeHALAL The MYeHALAL system upgrades will integrate 20 government agencies and 100 international certification bodies to allow businesses to secure certifications faster . It will also enable smaller enterprises to enter global markets more readily . This effort could be extended to provide comprehensive guidance on ethical practices and sustainability in halal production .
“ Programmes like HalalBiz Financing , BPMB loans , and government guarantee schemes are designed to facilitate ethical financing and empower companies to expand sustainably .”
positive , the overall funding for halal-specific growth may be insufficient to meet the sector ’ s expanding global demand .
The focus on certification is undoubtedly valuable , but a broader strategy that supports halal businesses in branding , international access , and sustainability could strengthen its global impact . Additionally , the emphasis remains on food and compliance , leaving other promising sectors like halal tourism , cosmetics , and pharmaceuticals with insufficient support .
The budget could also further engage small and rural enterprises in the halal economy to foster inclusivity . Enhancing support for education and talent development would attract more specialised professionals to the halal sector and create a foundation for future expertise .
More explicit links between halal initiatives and ESG goals could position Malaysia as a leader in both sustainability and halal and set the standard for ethical growth that aligns with the values of today ’ s global halal market .
FROM HALAL TO TAYYIB
Building on the Madani Budget 2025 ’ s initiatives for the halal industry , Malaysia is taking a bold step by moving beyond compliance into the realm of tayyib principles .
This approach prioritises ethical and sustainable practices that not only meet Shariah requirements but also align with values of goodness , purity , and social responsibility . Malaysia can set a higher benchmark within the industry that reflects a commitment to positive social and environmental impact through this initiative .
A key strategy of this approach is reflected in the Malaysia International Islamic Financial Centre ’ s ( MIFC ) Halal Tayyib framework , which provides businesses with a roadmap for integrating sustainability into their operations .
Such initiatives are vital as Malaysia positions itself in global markets where responsible practices are becoming essential to brand value and market access .
While there are areas for improvement , the Madani Budget 2025 does contribute to this shift by offering targeted support for halal businesses to adopt ethical and sustainable practices .
Programmes like HalalBiz Financing , BPMB loans , and government guarantee schemes are designed to facilitate ethical financing and empower companies to expand sustainably .
Furthermore , the enhancement of the MYeHALAL system and the recruitment of additional JAKIM auditors reinforce the importance of high certification standards and ensure that the industry upholds both compliance and tayyib values .
With Malaysia as the ASEAN Chair in 2025 , the country is well-positioned to lead regional initiatives that unify halal standards across Southeast Asia and create vast opportunities for halal trade , tourism , and investment within the region ’ s 650 million-strong market .
Beyond its national growth , Malaysia ’ s focus on promoting the tayyib agenda can further promote ethical finance , sustainable tourism , and responsible business practices and set a global benchmark for aligning profit with purpose .
Ultimately , the Madani Budget 2025 reflects Malaysia ’ s vision for growth that transcends just numbers towards meaningful outcomes . By embedding tayyib principles at the core of the halal economy , Malaysia can shape a future where the halal sector becomes a true force for sustainable prosperity . –
Expansion of JAKIM ’ s certification team The recruitment of 100 new halal auditors for JAKIM addresses the growing demand for certification and calls to shorten approval times . While valuable , this expansion could be enhanced by integrating environmental and ethical considerations in halal certifications .
Financial support for SMEs through HalalBiz financing programme With RM100 million allocated to the HalalBiz Financing Programme , the budget can help SMEs in the halal industry expand responsibly . The financing provided , which can go up to RM1 million , provides these businesses with essential resources . Broadening this support to branding and digital tools could further strengthen their competitive edge .
Targeted financing for sustainable growth in the halal ecosystem The Government Guarantee Scheme managed by Syarikat Jaminan Pembiayaan Perniagaan ( SJPP ) allocates RM20 billion in financing for sectors like Bumiputera businesses , high technology , ESG-focused initiatives , the halal industry , and tourism . This broader support can contribute to a more resilient halal economy , though more targeted funding for halal-specific green initiatives would enhance alignment with global sustainability goals .
BPMB ’ s economic development loans for bumiputera businesses Bank Pembangunan Malaysia Berhad ( BPMB ) will offer RM500 million in subsidised loans to Bumiputera businesses in high-growth areas , including those within the halal ecosystem and supply chains . This programme could be expanded to focus on inclusive growth for rural businesses to ensure a more balanced development across the halal sector .
Investing in research on Islamic economics The RM10 million investment in research through the International Islamic University Malaysia ( IIUM ) and INCEIF reflects the government ’ s commitment to developing Islamic economic principles for the halal industry . This collaboration could yield valuable insights into ethical business practices and sustainable growth . Aligning it with broader halal industry needs , such as innovation in non-food sectors , can drive more impactful results .