ASEAN COMMUNITY OF ENTREPRENEURS
COVER STORY
WALKING
THE HALAL PATH
Apart from food and beverage (F&B),
other sectors that drive the demand for
halal products and services include halal
ingredients, cosmetics and personal care,
industrial chemicals as well as Shariahcompliant business services such as those in
halal logistics, tourism and Islamic finance.
More notably, the top five export
markets for Malaysia’s halal products in 2015 were China,
Singapore, the United States, and Japan. Against the backdrop
of demand being a vital key driver of halal-based products and
services, ACE speaks to Dato’ Seri Jamil Bidin, the Managing
Director/Chief Executive Officer of Malaysia’s Halal Industry
Development Corporation Sdn Bhd (HDC) on how the ASEAN
region is able to ride on the ‘halal wave’.
Q: What is the definition of halal
from the stand-point of HDC and
what does halal encompass beyond
food which it is often associated to?
A: Halalan toyyiban means allowed
and permissible for consumption
with relation to Sharia law as long
as they are safe and not harmful.
The opposite of halal is haram/nonhalal which means forbidden and
prohibited.
Q: What is the latest global value
of the halal market? What is the
value of the halal market in the
ASEAN context?
A: The global halal market is a fast
growing industry and offers great
potential to be tapped by halal
industry players. As of 2012, there
is an estimated total of 1.8 billion
Muslims worldwide, a figure that is
projected to grow 2.2 billion by 2030
and 2.6 billion by 2050. Currently,
24
more than 50% of Muslims worldwide
reside in Asia with an estimate of 200
million located in the Middle East.
The rising population will ensure that
the demand for halal food product
will continue to rise in future.
The global halal market is
currently estimated at US$2.3 trillion
covering both food and non-food
sectors and ASEAN accounted for
60% or US$1.38 trillion of it.
Growing halal awareness and
the need to provide end-to-end halal
compliant services has unlocked
new
business
opportunities.
Recent progresses and efforts –
demonstrated by both the public
and the private sectors – support the
relevance of the halal industry as a selfreliant and sustainable proposition.
Across the globe, more and more
nations are seeking prominence by
becoming a regional halal hub. This
certainly augurs well for the creation
of hub-to-hub connectivity and
providing a seamless halal supply
chain which upholds halal integrity.
ASEAN COMMUNITY OF ENTREPRENEURS | ISSUE 2 : 2016
Q: With the advent of the ASEAN
Economic Community (AEC), what
are the prospects of halal-related
businesses in the Southeast Asian
region?
A: Competition in the halal industry
is increasing on regional and global
basis. The global halal economy
comprises
businesses
whose
operations comply with the principles
of Sharia. In spite of the word halal
being associated with the Islamic
religion, a halal economy ultimately
benefits the entire global community
since the founding principles of
a Sharia-compliant economy are
aligned with universal values.
In the ASEAN region, Indonesia
which boasts the world’s largest
Muslim population plans to establish
a centre for the halal industry in
2015 while in Thailand, more than
a quarter of its food factories are
currently producing halal products.
Malaysia
is
aggressively
promoting the halal industry through