SME Bank Malaysia
Reflections
Big Global Appetite For Halal Goods & Services
Halal certification has become a buzzword in today ’ s business world from food products to cosmetics , healthcare and financial offerings . Indeed the halal ecosystem has steadily transformed into a dynamic infrastructure that encompasses all sizes of business – from a large multinational corporation to small and medium enterprises ( including micro enterprises indulging in cottage industries ).
Between 2013 and 2019 , the global halal industry is poised to have a compounded annual growth rate ( CAGR ) of 12 % in the food & beverage ( F & B ) sector , fashion sector ( 11 %), travel sector ( 9 %), media and recreation sector ( 8 %), cosmetics sector ( 8 %) and pharmaceuticals sector ( 6 %), according to the State of the Global Economy Report 2014-2015 by Thomson Reuters .
This runs parallel with the Muslim population average annual growth rate of 1.5 % whereby Muslims are projected to make up about 26.4 % of the world ’ s total population of 8.3 billion in 2030 with a median age of 24.1 .
The 56-Muslim majority countries of the world ( members of the OIC and the Islamic Development Bank ) represented a total gross domestic product ( GDP ) of about US $ 6.7 trillion in 2013 with a 1.7 billion population ( which is growing at twice the rate of the global population ).
Epicenters of growth stretch from Malaysia and Indonesia in Southeast Asia to members of the Gulf Cooperation Council ( GCC ) and Turkey . Moreover , the increasing influence of Muslim-minorities in the West – who are fairly affluent – as well as the large Muslim population who reside in the emerging nations of India , China and Russia have also spurred substantial growth in the demand for halal products and services from the global market . With the advent of the ASEAN Economic Community ( AEC ), indulging in halal manufacturing and trade , could surely spur ASEAN SMEs to be world-class enterprises , offering the Southeast Asian region every potential to emerge as a global halal hub .
Of the 10 ASEAN member states , Malaysia , Indonesia and Brunei have almost a combined 265 million Muslim population , in addition to the abundance of raw materials and strategic know-how in lifting the halal trade to greater heights . For Southeast Asian SMEs in the F & B industry , the time is definitely ripe to give due consideration to ply the halal path . Similarly , the call goes to those participating in the healthcare , beauty , travel and financialrelated service industries .
In regard to financing of such businesses , the SME Development Bank of Malaysia has always been and will continue to provide financing facilities for the sector in support of the Malaysian Government economic agenda to promote the country as a regional halal hub . Let me encourage those players and potential participants to explore such opportunities with the bank .
SME Bank Malaysia
• Designed to function ultimately as a one-stop financing and business development centre , Malaysia ’ s SME Bank is dedicated to the accelerated growth of Malaysian SMEs .
• The principles activities of the Bank are to provide financing as well as financial and business advisory services to Malaysian SMEs residing within predefined categories which have been framed within the SME classification guidelines of the National SME Development Council .
• Through better segmentation of financial and non-financial needs of SMEs by industry , stage of growth , and product and market potential , the Bank strives to hasten the financing processing of eligible SMEs to meet their financing needs . It also supports their business growth requirements through the provision of timely advisory services .
Datuk Mohd Radzif Mohd Yunus
Datuk Mohd Radzif Mohd Yunus is the Group Managing Director of Malaysia ’ s Small Medium Enterprise Development Bank , a development financial institution ( DFI ) dedicated to accelerating the growth of Malaysian SMEs .
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ASEAN COMMUNITY OF ENTREPRENEURS | ISSUE 2 : 2016