SEPTEMBER-OCTOBER . 2023 | @ Halal
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11 include the digital economy , green technology , electrical and electronics , medical devices , pharmaceuticals , chemicals and aerospace .
“ Malaysia is fortunate because it has a diversified economic structure , which will cushion the downturn expected from the slowing global growth . However , it is pertinent for Malaysia to reinvigorate its investment climate to ensure the country captures potential investment opportunities . For 2023 , MIDA ’ s primary strategy is targeting investments based on country focus and industry focus .”
INCREASING HALAL INVESTMENT
In addition to the overall growth in various sectors , Isham noted that the halal industry had witnessed increased interest from foreign investors . These investors seek information on utility support and infrastructure needs to accommodate significant product capacity in food processing , feed ingredients , dairy and livestock farming and durian cultivation .
“ To support halal food production , MIDA is leading efforts to promote advanced machinery and technology for the production processes . There is also an ongoing review of tax incentives related to halal food production to attract further investment in food processing projects , including poultry products , sauces , spices paste , food flavouring , palm oil-based fats , cocoa-based products , and more .
“ Many multinational brands such as Tyson Food , Nestle , Dutch Lady , Lee Kum Kee , Kerry , Hershey , Coca-Cola , Givaudan , Campbells Soup , Kellogg , Fernleaf , Yakult , and F & N have long established and are still expanding their range of halal products from their plants in Malaysia . Additionally , some brands are venturing into plant-based alternatives to cater to the growing demand for sustainable and environmentally-friendly products .”
He said federal and state agencies were carefully mapping the allocation and availability of land for the agro-food sector . This effort is to attract foreign investment and ensure domestic smallholder farmers benefit from these developments and stay caught up in the long run . It is part of the government ’ s strategy to promote inclusive growth and support the agriculture and food sectors in the country .
MALAYSIA ’ S HALAL ECONOMY
According to the State of the Global Islamic Economy Report 2022 , the halal economy in the post-pandemic era is forecast to reach US $ 7.7 trillion in two years , growing at 7.5 per cent per annum .
Isham said the halal industry in Malaysia was not new . It has been one of the strategic sectors in the country for many years .
“ With consistent returns and brighter prospects in the future , the halal industry remains a vast ocean of opportunities for our players to explore . Malaysia has once again been ranked as the leading halal economy in the world for the 9th consecutive year ,” said Isham .
“ Malaysia is known to be a leading supplier of a wide range of halal-certified products and services , namely food , cosmetics , pharmaceuticals , finance and tourism .
“ To promote the growth of Malaysia ’ s halal economy , Halal Industry Master Plan ( HIMP ) 2023 sets out clear action plans on how we can strategically capitalise on the growing global demand for halal products and services and strengthen Malaysia ’ s leadership role by leveraging our world-recognised halal industry ecosystem and cumulative expertise . Malaysia ’ s halal industry is projected to grow to RM500 billion ( US $ 113.2 billion ) in 2030 with a GDP contribution of 8.1 per cent by 2025 .”
As the global demand for halal products and services continues to rise , he said the halal industry was becoming increasingly crucial for micro , small and medium enterprises ( MSMEs ) to generate revenue and become the source of employment and economic development . Hence , the spillover from the economies of scale would positively impact the rakyat ’ s
Malaysia ' s exports to CPTPP member countries grew to RM225.49 billion from January to June 2023 .
livelihood in general .
MALAYSIA INTERNATIONAL HALAL SHOWCASE ( MIHAS )
In pursuing the national plan to position Malaysia as the global halal hub , Malaysia External Trade Development Corporation ( MATRADE ), a federal trade promotion agency under MITI , spearheads the internationalisation agenda of domestic halal products and services through Malaysia International Halal Showcase ( MIHAS ), a flagship trade show organised since 2004 .
Dubbed the world ’ s largest halal trade show , Isham believes that MIHAS completes the halal ecosystem by establishing itself as an excellent trading platform for Malaysian halal SMEs to gather , meet , network and transact with counterparts globally .
“ MIHAS 2022 achieved over RM2.39 billion in sales , surpassing its original target of RM1.9 billion . This helped maintain MIHAS ’ s pole position as a key large-scale showcase for halal products and services from around the world ,” he elaborated .
He noted a growing interest in halal due to concerns about cleanliness , safety , and sustainability , whether applied to goods or services . Additionally , the number of countries participating in MIHAS has consistently increased . Regarding competition between nations , he clarified that Malaysia did not seek to compete .
“ The concept of halal is universal ; it is not just
One of the main products exported by Malaysia in the first half of 2023 was electrical and electronic ( E & E ) products . for Malaysia . The global acceptance of halal signifies our successful introduction of halal products as safe , secure , and clean , while the growing interest in MIHAS indicates our success in its previous editions .”
ENSURING CONTINUED LEADERSHIP OF THE HALAL INDUSTRY
Isham said : “ To retain Malaysia ’ s standing as a significant player in the global halal market and to capitalise on the two billion-strong Muslim population worldwide , MITI is dedicated to maintaining and enhancing all components of the halal ecosystem .”
“ MITI is honoured to be the strategic driver for the HIMP2023 , launched during the Malaysian Halal Development Council ( MPIH ) in March 2023 by Deputy Prime Minister Dato ’ Seri Dr Ahmad Zahid Hamidi .
“ The MPIH brings together various halalrelated ministries and plays a vital role in coordinating the implementation of related action plans , obtaining input , views and suggestions in analysing current issues related to the halal industry .”
He shared that MITI ’ s role as the MPIH ’ s secretariat was to ensure that the Council contributes significantly towards socio-economic development and is in line with the government ’ s priority to accelerate the growth of strategic and high-impact industries and their contribution to the nation ’ s GDP .
The HIMP2030 is expected to spur Malaysia ’ s halal industry through its three themes : Prominent , Visible and Globalised Halal Malaysia .
The 23 initiatives that underpin the seven significant thrusts of the HIMP2030 are expected to improve the nation ’ s dynamic halal industry ecosystem for more of the country ’ s products and services , supporting the future growth of Malaysia ’ s socio-economic prosperity .
The strategic goals include improving halal laws and policies , expanding the market for Malaysia ’ s halal goods and services , building a larger pool of halal experts and professionals to meet global demand , and improving the integration and quality of infrastructure development . It also includes supporting thought leadership , developing more domestic halal champions and encouraging higher Bumiputera participation in the halal industry .
“ MITI is fully committed to continuing to work closely with relevant stakeholders in the halal industry to elevate Malaysia ’ s position as a key player in the global halal market .” –