September-October . 2022 | @ Halal
WHBC 2022
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Moving towards an
Olympic target
Transformation works is not a minor tweaking
BARELY a decade ago , only a handful of countries were aware of halal from an industrial or economic development perspective . Halal Development Corporation ( HDC ) chief executive officer Hairol Ariffein Sahari said HDC and various global organisations left no stone unturned to promote the halal development agenda . Now , because of that , the whole world knew what the halal or halal industry or economy was all about .
“ However , we are still not there yet as far as macroeconomic achievement is concerned ,” said Hairol in his closing remarks during World Halal Business Conference in Melbourne in September .
“ If we look at the market potential of this economic segment , the demand stood around US $ 3.1 trillion as of last year ( based on HDC ’ s analysis ).
“ But the supply was still hovering around 20-25 per cent for the past many years , leaving a huge gap of 80 per cent between demand and supply .”
On his view and strategic response about the demand and supply gap , Hairol said if the gap were only 10-15 per cent , the action to be taken by HDC would be to compete strongly with the rest of the world .
However , since the demand and supply gap on halal products and services was huge and now about 80 per cent , HDC would not compete . Instead , HDC would collaborate and cooperate at the G-to-G and businessto-business levels .
Hairol pointed out that the most significant challenge the halal business ecosystem community faces now is supply chain inefficiency and disconnectivity in some parts of the world .
“ When we look deeper into the issue , we found out that the halal ecosystems are not connected , and the number of certified halal players and products is far from reaching its critical mass .
“ So , HDC , the agency trusted by the government to coordinate the halal ecosystem development agenda in Malaysia , and to internationalise the agenda through government-to-government cooperation , is ready to spearhead the initiatives .
“ In a nutshell , the Malaysian halal ecosystem must be connected to the global halal ecosystem ,” added Hairol .
The World Halal Business Conference circuit , he said , was not a trade show nor an expo but a strategic networking platform for the followers to unlock business potentials and most importantly to creating values together , in this fastest-growing segment in the world ’ s economy .
Hairol said there was a need to co-develop robust and sustainable halal ecosystems all over the world which are connected efficiently .
And to develop a robust and sustainable halal ecosystem , two core pillars needed to be enhanced :
• the halal governance development framework ; and
• halal industry development framework . “ In order to make it efficient , science , innovation , technologies , and talent development come into play .
“ Above all , sharing responsibilities among stakeholders , be it from the government bodies , private entities and non-governmental organisations , is the key approach moving forward ,” said Hairol .
So , HDC , the agency trusted by the government to coordinate the halal ecosystem development agenda in Malaysia , and to internationalise the agenda through governmentto-government cooperation , is ready to spearhead the initiatives . In a nutshell , the Malaysian halal ecosystem must be connected to the global halal ecosystem .”
– Hairol Ariffein
MIDA and HDC ink MoU to woo investments |
THE Malaysian Investment Development Authority and Halal Development Corporation Berhad recently signed an MOU to boost Malaysia ’ s halal industry .
This strategic collaboration will allow HDC to leverage MIDA ’ s end-to-end facilitation to help and enhance the industry ’ s capability and capacity , driving economic growth .
The MOU was signed by MIDA Executive Director of Investment Facilitation Jasbir Kaur and HDC Chief Commercial Officer Adly Mohamed and witnessed by MIDA CEO Datuk Wira Arham Abdul Rahman and HDC CEO Hairol Ariffein Sahari .
MIDA CEO Datuk Wira Arham Abdul Rahman praised the partnership for boosting Malaysia ’ s business environment , especially the halal industry .
“ Today ’ s MOU strengthens the successful partnership between MIDA and HDC and enhances Malaysia ’ s position as the centre of halal ecosystem development ,” he said .
“ This collaboration foresees a broader scope of economic cooperation between
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MIDA and HDC . We have expanded our networks to facilitate investment and provided opportunities in new and innovative business and strategic areas , including halal parks and co-organising halal-related events .
“ Given the growing role of technology and the importance of its adoption , especially since the global pandemic , technology development should be prioritised now and after Covid-19 . This would also boost innovation and technology in Malaysia ’ s Halal industry .”
HDC CEO Hairol Ariffein Sahari says Malaysia ’ s halal parks have attracted RM16.28 billion since 2011 . Domestic direct investments into Halal Parks increased by RM95 million ( or 45.7 per cent ) in 2021 , signalling that the local halal industry is still growing despite many challenges .
“ We see a trend among local players , especially halal SMEs , who have been resilient during the Covid-19 pandemic . Despite challenges , they expanded and diversified to meet rising demand ,”
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said Hairol .
“ SMEs are scaling up and looking for large industrial spaces with better infrastructure and ecosystem support , which HDC ’ s Halal Parks provide ”.
The collaboration will synchronise HDC and MIDA ’ s pre and post-investment process flow . In 2021 , HDC engaged 130 domestic companies with 17 Letters of Intent ( LoI ) into Malaysian Halal Parks with a potential investment of RM133 million . With a two-year partnership , 60 per cent of the potential investment may be realised .
The MOU with HDC shows MIDA ’ s commitment to high-tech , high-value , innovative investment projects from domestic and foreign companies .
The partnership timely provides financial support to industry players , especially domestic investors , in expanding the government ’ s efforts to facilitate investments in Malaysia , which is consistent with the National Investment Aspirations ( NIA ) framework in driving economic growth .
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