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Cover Story
@Halal | July-august. 2020
Pandemic boost
for the halal industry
The Covid-19 pandemic has ironically seen increased demand
for halal food products with emphasis on quality and cleanliness.
BY CAMILIA REZALI
The need for Malaysians to
remain healthy by maintaining
increased hygiene has
never been more critical than
during the current Covid-19
pandemic.
From the early days of the
Movement Control Order (MCO)
until today, people have become more aware
of cleanliness and wellness, especially when
it comes to food consumption. As such, while
most other businesses suffered during the
pandemic, it ironically had a positive effect
in that there has been an increased demand
for halal products.
With halal-certified products, you have
an assurance that they are safe, clean and
healthy. The term ‘halal’ is no longer a purely
religious concept. Instead, it is becoming
a global symbol of quality assurance and a
lifestyle choice.
When stepping into a grocery store, for
instance, most people will start to question
whether a product is from a clean source.
Products which are not processed hygienically
can potentially cause diseases. Therefore,
buyers, be they Muslims or non-Muslims, are
looking for halal-certified products.
As Chairman of Halal Development Corporation
(HDC), Datuk Mahmud Abbas, put
it: “The halal marketplace is now emerging
as one of the most lucrative and influential
market arenas in the world.”
One year into the job since he took over the
chairmanship in July 2019, Mahmud has been
busy with his team, amongst others, driving
HDC through the pandemic and preparing for
the 12th World Halal Conference.
Malaysia’s halal exports
Today, the halal market is not just about
food. It has branched to other areas such
as pharmaceuticals, cosmetics & personal
care, logistics, hospitality services and even
medical devices. Last year, Malaysia exported
RM40.2 billion worth of halal products.
“We expect it to increase to around RM42
billion for 2020,” he said, noting that the country’s
total exports will be disrupted until the
second quarter (Q2) and expected to rebound
in the third quarter (3Q).
Undoubtedly, the pandemic has pressured
many countries to pull down their shutters
and postpone global events. Yet, the halal
market remains strong. Over the years, the
global and domestic halal industry has grown
from strength to strength, driving towards a
valuation of US$3 trillion and a market share
of 2.4 billion consumers by 2030.
Due to the growing demand of halal products
that the pandemic has brought, HDC is
stepping up efforts in the halal ecosystem by
working hand-in-hand with other agencies in
the development of halal standards, audit and
certification as well as on capacity-building
for halal products and services. It is also promoting
the growth of Malaysian companies
in the global halal market.
Building a halal ecosystem
Fundamentally, HDC plays an instrumental
role to put Malaysia on
a global map for the halal
market by establishing
a comprehensive halal
Creating halal parks with a difference
Malaysia has bright prospects for the halal
industry. Besides Islam being the official
religion, nearly two-thirds of the population
comprises Muslims.
Malaysia is also strategically located in
Southeast Asia and is an ideal facilitator for
the regional and international halal market.
During the Covid-19 pandemic, the halal
industry continued to show resilience. It had
brought on a renewed sense of demand for
halal products, and recognised as a hallmark
of a clean product, safe and healthy.
According to the Chairman of Halal
Development Corporation (HDC), Datuk
Mahmud Abbas, there is a chance for
Malaysia to be more successful in the halal
industry by constructing more halal parks. He,
however, suggested building halal parks with
a difference.
“A Halal Park must have a certain
infrastructure – a lifestyle of its own – to be a
proper Halal Park,” he said
In Malaysia, halal parks were not governed
before. He said “It was just a property play”
where it offered a 10-year incentive, and the
initiative ended there.
“If I were to build a new halal park, I would
put up a hotel, a convention centre, a lot of
halal restaurants with manufacturers at
the back. Then I will have quarters for the
manufacturers’ staff along with a complete
warehousing area. I would do it differently,”
he added.
At present, there are 14 strategic locations
of Halal Malaysia (HalMas) industrial
parks designated by Halal Development
Corporation (HDC) encompassing of
200,000 acres of land size for the investors
and the industry players to tap into the
growing opportunities.
Malaysia’s halal infrastructure is also
on a solid footing where the country has a
complete ecosystem and halal certification,
which is well-accepted.
Mahmud said: “What HDC will
have to do in future is to regulate the
development of halal parks and make
them into real halal parks.”
He described the potential
of a halal park in Malaysia as a
“fantastic” opportunity.
“The minute we have
a new model of halal
parks, I believe the
demand will increase
tremendously,” he
said.