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@ Halal | September-October . 2021

As one of the leading banks that provides Shariah-compliant financing and programmes that enable halal transactions , CIMB Islamic is ready to bring businesses to the next level .

Ahmad Shahriman Mohd Shariff , Chief Executive Officer of CIMB Islamic Bank Berhad , told @ Halal that MIHAS is the right platform for the bank to reach a broader audience searching for halal solutions in their businesses . He then shared his view on the development of the halal industry and some of the bank ’ s initiatives to assist companies on their halal and sustainability journey .

How does CIMB Islamic view the halal industry ’ s potential in driving Malaysia ’ s economy ? Malaysia is known to the world as a leading halal economy . Malaysia is ranked No 1 in the world in many sectors , including Islamic finance , halal food and beverage , Muslim-friendly travel , pharmaceuticals and cosmetics . The halal certification provided by Jabatan Kemajuan Islam Malaysia or JAKIM is one of the most recognised by halal communities worldwide , regarded as the minimum standard for halal certification . Malaysia has all the ingredients for becoming the most influential leader in halal business . As one of the leading banks supporting and promoting the halal industry , CIMB Islamic believes that a growing halal ecosystem is readily one of the Malaysian economy ’ s competitive advantages .

Being a bank that enables halal businesses , what interests CIMB to partner with MIHAS ? MIHAS is one of the most significant halal exhibitions globally , attracting the participation of many local and international traders , manufacturers , trade bodies , financial institutions and government bodies to expand halal business . The event offers various halal-based solutions for several industries . As one of the leading banks promoting halal , CIMB Islamic is confident that MIHAS is the right platform to showcase our halal solutions to reach local and international business communities . Besides that , CIMB has also invited our affiliate banks from Singapore , Korea , Indonesia , and the UK to be under one roof to promote their halal solutions .

MIHAS also encourages the development of SMEs and microbusinesses through consistency and alignment with the standards and requirements of halal to gain exposure to international demand . As they expand , CIMB Islamic is on hand to help them with various solutions to aid their growth .

CIMB Islamic also introduced the Halal Corridor in MIHAS 2019 . Can you share with us about this CIMB Halal Corridor and CIMB HalalBizReady ? The CIMB Halal Corridor is an enhanced trade network linking halal businesses in ASEAN and across the globe .

It is estimated that Muslims spent US $ 2.02 trillion in 2019 across the food , pharmaceuticals , cosmetics , fashion , travel and media / recreation sectors . In addition , Islamic finance assets were estimated to have reached US $ 2.88 trillion in 2019 . Halal spend is forecasted to reach US $ 2.4 trillion by 2024 at a five-year cumulative annual growth rate ( CAGR ) of

3.1 per cent .

ASEAN is home to the world ’ s largest Muslim population . With CIMB ’ s comprehensive footing in the area , we can assist businesses seeking to unlock the potential of the halal market via its ecosystem of partners . This would include anything from certification to supply , logistics as well as fulfilment across the value chain .

One such initiative is the CIMB Halal- BizReady programme which provides an ecosystem with different enablers for businesses that want to access the global halal economy . This is through offering exposure and brand awareness for businesses post-certification via CIMB Islamic ’ s own and partner platforms , events , tradeshows and sponsored activities . The comprehensive list of solutions for SMEs includes halal know-how , consulting , financing , e-commerce , human resource and cash solutions which are offered as a complete package for SMEs in growing their halal business going forward .

As one of the leading Islamic banks , what was CIMB Islamic ’ s commitment to providing Shariah-compliant solutions to halal businesses and Muslim consumers ? This can be through financing , trade settlement , cash management , investment and operating accounts . While Shariahcompliant solutions promote the diversity of solutions , they also encourage fairness , transparency and competitiveness . This will help all businesses across the various industries , especially halal-related businesses and Muslim consumers .

As CIMB continues to develop the CIMB Halal Corridor , the three most prominent potential corridors are between Malaysia and UK , Japan and Korea . Can you share what the incentives that could make Malaysia a solid global halal hub are ? The expansion of the halal market has exceeded expectations and continues to grow . CIMB is closely engaged with several local authorities , which can effectively advise on international requirements and standards to expand the Malaysia halal market . Focusing on the cosmetics , food and beverage , fashion , health and agriculture segments , we have started to collaborate with partner banks in this initiative , including Santander UK , Industrial Bank of Korea and Mitsubishi UFJ Financial Group , and continue to expand this business network to meet global requirements .

Ahmad Shahriman Mohd Shariff

CIMB Group is one of the leading ASEAN banks that provides comprehensive financial solutions to all customers , including those from the SME sector . Besides Malaysia , CIMB is also present in all ASEAN countries . This has given CIMB customers opportunities to tap into regional potential , including halal trade , sustainable business programmes , exports , and diversification via various solutions provided by the bank .

How can CIMB Islamic help to ensure long-term sustainable growth in businesses during this critical period ? With the challenges of the global pandemic , a few initiatives have been undertaken by CIMB Islamic to help ensure long-term sustainable growth for customers during this critical time .

These include : I . Immediate financial assistance through the various CIMB relief assistance schemes introduced for businesses that are in need II . Assisting businesses by helping them transition to sustainable practices is a critical direction in capitalising on new opportunities . CIMB has created the SME Sustainable Exporters Programme to help onboard SMEs onto a sustainable business journey III . The digitalisation of smaller businesses to adapt to the new normal by partnering with key e-commerce and digitalisation players IV . Assisting marginalised B40 communities ( the lowest 40 per cent of income earners ) from the PPR ( low-cost home ) community , women entrepreneurs , asnaf and the physically challenged by providing them with education , skills , and support to successfully navigate these challenging times . Among the initiatives run under our sustainable business programmes are the Malaysian Green Exporters Programme and SME Sustainable Exporters Programme . These also leverage the strengths of CIMB ’ s Trade Club Alliance and the HalalBizReady and GreenBizReady initiatives . We also collaborate with MATRADE , JAKIM , consultants and other halal logistics partners to help SMEs in business expansion and diversification .

( The CIMB Trade Club is an exclusive digital e-commerce ecosystem with 14 global banks with a presence in more than 50 countries as members .)

Do business payment moratoriums during the testing times of 2020- 2021 help for long-term sustainable growth ? During the pandemic , CIMB has supported its customers by extending financial payment relief assistance with an approval rate of virtually 100 per cent . This helps our customers by freeing up cash flow for their businesses that have been impacted by the pandemic . It will also help support firms ’ gradual recovery to establish new operating structures , capabilities , and marketing .

How does CIMB lead initiatives for Malaysian SMEs to compete confidently in the halal space ? HalalBizReady provides the most comprehensive solutions and guidance to enhance the SMEs ’ competitive advantage . This is done holistically by looking at the entire journey from halal certification , export opportunities and digitalisation to e-commerce .

Can you share the common opportunities and challenges in the halal sector ? Halal is a global phenomenon no longer associated with selected regions . The halal label has become a symbol of good quality and wholesomeness . It is an emerging market force that attracts Muslims and is also becoming a lifestyle choice for non-Muslims . The global Muslim population is estimated at two billion , or about 25 per cent of the world population . With an increasing demand for halal-certified products amongst end-consumers , many industry leaders recognise the importance of ensuring halal integrity to meet growing opportunities . Hence the need for halal products cannot be ignored . Additionally , SMEs will grow effectively when they fulfil and meet certification standards and requirements for the entire halal value chain .

The challenge for Muslim countries such as Malaysia and Indonesia in becoming global halal hubs is the increased involvement of other Muslim countries in the halal industry . Measures must be taken to remain competitive through strict halal standards , with a vital manufacturing infrastructure . The halal industry is viewed as a sunrise industry , and its growth potential is exponential . Most SMEs and small businesses still lack awareness and information involving halal business requirements and process flows . They also have limited access to authorised channels for guidelines and processes in applying for or maintaining halal status . This is where CIMB ’ s programmes and solutions can help them .