September-October . 2021 | @ Halal
Focus
05
BY FATIHAH MANAF
IN 2019 , some Malaysian Small and Medium Enterprises ( SMEs ) announced their supply of food and beverages ( F & B ) for the Tokyo Olympics 2020 . However , due to the pandemic , the organiser decided to postpone and scale down the sporting event . It led to the cancellation of its deal with Malaysia to provide halal catering .
Despite the end of this deal , SME Corp Malaysia revealed that the agency still assisted halal businesses in penetrating the Japanese market .
This effort comes under its Halal Entrepreneurship Development Programme with the Ministry of Entrepreneur Development & Cooperatives ( MEDAC ), which aims to assist local halal businesses in enhancing their capacity and capability to penetrate the international market .
One of the initiatives under this programme is the Product Registration Incentive which helps SMEs market their products in specific international destinations with market linkers ’ assistance .
Under this programme , SME Corp Malaysia will assist SMEs in terms of financial incentives to cover the cost of SKU ( stock keeping unit ) registration . According to SME Corp Malaysia , 19 SKUs from seven SMEs have penetrated the Japanese market and marketed during the Tokyo Olympics .
Dato ’ Sri Syed Hussien Al Habshee , the Chairman of SME Corp Malaysia , stated SMEs needed to learn the technicalities of exporting halal products as some countries ’ requirements for halal products could be stringent , especially in the segment of F & B .
He revealed almost 90 per cent of SMEs were at risk of closing down due to the pandemic .
“ This is based on the statistics by MEDAC ,” said Syed , before highlighting the need for SMEs to re-strategise their businesses to cope with these uncertainties .
Opportunities open up
SME Corp Malaysia assists halal businesses to penetrate Japanese market
“ We cannot do business like in the past . Now you have to re-strategise your business such as review the forecast revenue , production planning and redeploy the workforce to minimise operating costs ,” said the Chairman .
By looking at the medium actions , he said SMEs might also take several key measures , including selling their products or services online through e-commerce platforms . He encouraged them to change their business model , improve their employees ’ skills , and re-strategise their business operations .
SME Corp Malaysia is ready to assist halal SMEs
According to Syed , SME Corp Malaysia has worked with MEDAC and Halal Development Corporation ( HDC ) for halal development . He highlighted SME Corp Malaysia was a central coordinating agency that helps coordinate all relevant agencies regarding SME businesses .
SME Corp Malaysia offered four main programmes to assist these local halal businesses , Syed shared :
• Halal Outreach Programme for entrepreneurs . This programme assisted the SMEs in terms of obtaining halal certification from JAKIM . We assist any registered company seeking help or advice in trying to register their companies to get the halal logo .
• Halal Technology Transformation Programme . This programme will support SMEs ’ halal supply chain management with automation systems to increase halal product capacity and quality . This programme is in collaboration with Technology Park Malaysia .
• Product Transformation Programme . This programme was initiated to increase the commercial value of products through branding , packaging and labelling with the assistance of the design development centre at Majlis Rekabentuk Malaysia .
• Product Registration Incentive or Market Access Incentive . We promoted and participated in international exhibitions . It is one way to market Malaysian halal
Dato ’ Sri Syed Hussien Al Habshee
products .
He added SME Corp Malaysia had another SME Revitalisation Scheme for businesses adversely affected by the pandemic . Through this scheme , companies will obtain financing to start or restart and continue their operations .
“ Eligible SMEs will be able to obtain financing of RM50,000-RM250,000 in this SME Revitalisation Scheme with an interest rate of three per cent . The fund can be used for asset financing and working capital .”
Agencies need to work together
Syed said about his hopes and aspirations : “ I think our leaders have to push Malaysian SMEs in this halal sector .”
He pointed out the small growth of this segment per year and highlighted the need for all agencies to accelerate the transition .
“ First , all these related agencies have to work together . With limited resources , we have to bring halal exports to the next level . Not just 1.7 per cent of growth for our halal exports , we have to increase that .”
He then highlighted the importance of digitalisation for SMEs , especially during the pandemic .
He said : “ The digital transformation has become more important than ever . Halal businesses must act fast to move in this direction . I ’ m hoping for this . People have to switch from the old kind of business into digitalisation .”
SME Corp Malaysia is one of the agencies that will help Malaysian entrepreneurs explore the global halal market . Local halal businesses that plan to tap further into this market could participate and discover more halal opportunities at the 8th OIC Halal Expo 2021 on Nov 25-28 , 2021 , in Istanbul .