various incentives to entice the investor community . Kellogg , a major food manufacturer from the US , is planning to build a halal facility in Malaysia , having followed the footsteps of Nestle and Hershey , two major international manufacturers which have recently expanded their businesses in the country .
The Malaysian Government remains committed towards ensuring the components within the halal ecosystem will continue to evolve , thus providing opportunities for businesses to expand and excel further while addressing areas of concern confronting the industry .
Q : What are the challenges encountered by SMEs in their quest to be suppliers of multinational corporations ( MNCs ) engaged in halal-certified products ? How can SMEs circumvent arising complications ?
a ) The opportunities for SMEs in Malaysia are huge in the halal industry . However , only 30 % of Malaysian halal exports generated by SMEs . The challenges faced in this industry are ( i ) capacity to produce on large scale ( except for MNCs ), and ( ii ) marketing and promotion at international level . b ) Advices for Malaysian SMEs venturing into the halal industry :
• To optimise capacity / production of halal products by partnership ;
• To get assistance from HDC and other relevant government agencies , and
• To enhance marketing and product branding especially for international market .
c ) Programmes prepared by HDC to assist Malaysian SMEs : Halal is an important agenda in Malaysia ’ s New Economic Model ( NEM ) and it is in line with the Economic Transformation Programme ( ETP ). For Malaysia , the value proposition of halal is in the fact that it is as much driven by the bigger corporations as it is by the SMEs .
Malaysian SMEs are involved in the whole spectrum of halal products and services ranging from food and beverages , pharmaceuticals , cosmetics and personal care to herbal products , packaging and household products . Some of the efforts by HDC to help overcome these challenges include :
• Facilitating Halal Understanding and Certification Training : Our training programmes are aimed at educating SMEs to understand and explore halal opportunities in segments of economic value , businesses , industry engagement and job employment . Such training programme covers best practices within the halal industry for both food and non-food as well as services such as halal logistic , Islamic finance , etc .
• Capacity Building :
❏ Consolidate our efforts of awareness creation with wider entrepreneurial public and securing more SMEs for participating in the halal industry ;
❏ Grooming new individuals / companies in mentorship programmes with successful halal champions / halalfocused companies under the Halal Business Transformation Programme ( HBT ), and
❏ Work more closely with multinationals and overseas players for halal collaboration & enhancement programmes vis-à-vis fast moving consumer goods ( FMCG ) and other household and lifestyle products that are most marketable .
• Investment Attraction : Tax allowances for tenants and owners of halal parks .
• Global Halal Support Centre : Set up three years ago , HDC ’ s Global Halal Support Centre has recorded 12.5 million visitors from 122 countries visiting its portal sites for various halal-related information . Its i-kiosk is just as popular – having attracted 152,000 visitors while its halal apps recorded 55,000 downloads worldwide .
ISSUE 2 : 2016 | ASEAN COMMUNITY OF ENTREPRENEURS 25