More and more companies have also started venturing abroad . Malaysia ’ s halal exports in 2015 stood at RM39 billion ( approximately US $ 10.02 billion ), a big jump from RM24 billion ( approximately US $ 6.17 billion ) in 2011 . The country ’ s top export market for halal products over the years has been China , followed by Singapore , the United States , Indonesia , Japan and Thailand .
Today , the Malaysian halal brand is widely recognised and accepted throughout the world , thus reducing the barriers for its halal products to enter the international market . This is a plus given that there is an undersupply situation in the global marketplace as halal producers are estimated to be able to meet only 20 % of existing market demand .
Elsewhere , the services sector also presents Malaysia with an equally exciting prospect . For instance , the global Islamic finance industry has expanded rapidly over the past decade , growing at 10 % -12 % annually . Today , Shariacompliant financial assets are estimated at roughly US $ 2 trillion . The new sources of ethical and economically viable funding for the halal industry can now be unlocked through the availability of Shariacompliant financing .
Doubtlessly , halal has every potential to be a real engine of growth for every local ASEAN economies . Malaysia , Indonesia , Thailand , Brunei , Singapore and the Philippines have put in place a number of government-led initiatives for halal to drive economic growth .
The strength of Malaysia ’ s Islamic finance services industry is something that the country can be particularly proud of . Its expertise is very much recognised and sought after by various countries across the globe . Not only are the number of Malaysian companies involved in various international councils tasked to chart the future of Islamic finance rising by the day , the country is committed in developing human capital for this sector and researching ideas in the Islamic finance space .
Despite the challenges facing the world economy – i . e . slower sukuk ( Islamic bond ) issuance and emergence of new issuers from other countries – Malaysia still managed to maintain its lead in the global sukuk market last year where we accounted for 53 % of global issuance .
As the leader of the sukuk market , Malaysia is indeed in a very firm position to offer a credible , convenient and Sharia-compliant alternative to conventional financing needs . This is a key area which Malaysia needs to continuously build its competencies .
Having said that , maintaining Malaysia ’ s position as the global leader of halal industry is no easy task . The knowledge of yesterday might still be useful , but not necessarily sufficient for it to meet the challenges of tomorrow . The onus is now on the country to continue building upon its strong foundation and previous successes .
ISSUE 2 : 2016 | ASEAN COMMUNITY OF ENTREPRENEURS
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