@Halal March/April 2021 - Page 22

Malaysia ' s journey towards becoming a global halal hub starts with leveraging its potential high growth sectors and utilising its halal ecosystem
The Malaysian halal market was estimated at US $ 68.4 billion in 2019 and is expected to grow to US $ 113.2 billion by 2030 . On top of it , the global halal market was valued at US $ 3.3 trillion and is projected to grow to US $ 7.7 trillion in 2030 .”
– Lokman
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Focus

@ Halal | March-April . 2021
BY CAMILIA REZALI

MITI : Prioritise halal ecosystem

Malaysia ' s journey towards becoming a global halal hub starts with leveraging its potential high growth sectors and utilising its halal ecosystem

Malaysia indeed has a robust halal ecosystem , hence underlining its colossal opportunity to grow as a global halal hub comprising halal manufacturers , halal traders , halal suppliers , halal buyers and halal consumers .

In term of halal certification , Malaysia provides one of the most globally recognised halal certificates , accrediting processing plants in Australia , the US , Argentina , Brazil , Uruguay , South Africa , New Zealand , Thailand and China . In fact , Malaysia is seen as a reference country when it comes to halal certification and regulations .
Therefore , Malaysia should capitalise on its existing worldwide reputation as a halal hub to capture immense business opportunities by tapping into its key target development sectors - food & beverages , pharmaceutical , cosmetics and personal care .
Secretary-General of International Trade and Industry Ministry ( MITI ), Datuk Lokman Hakim Ali , told @ Halal : “ The halal ecosystem is undergoing a transformation like never before . This includes some economic areas such as tourism and logistic industry that had high potential to support the halal industry development .”
In addition to that , he said the Traceability / Blockchain technology could also offer the halal supply chain greater standardisation and transparency , which have been crucial to its growth , including Islamic Fintech . This emerging market solution is needed to navigate technology disruption and support the development of the halal industry .
Though strict measures were enforced to contain the outbreak of the Covid-19 pandemic , it wasn ’ t without consequence .
“ The Malaysian economy contracted by 3.4 per cent in the fourth quarter of 2020 , mainly due to weak domestic demand .
“ During the period , the monthly GDP declined 4.7 per cent and four per cent in October and November , respectively . Subsequently , the monthly GDP contraction narrowed further to 1.7 per cent in December 2020 ,” added Lokman .
The shrinkage prompted the government to implement various lockdown measures to curb the infection rates and roll-out unprecedented monetary and fiscal measures to boost growth and ensure people ’ s safety through appropriate pandemic management and effective vaccination .
Moving forward , Lokman said the growth momentum was expected to be driven by the recovery in economic activities . This follows the roll-out of Covid-19 vaccination , the implementation of Budget 2021 measures ,
Perlindungan Ekonomi dan Rakyat Malaysia ( PERMAI ) assistance and ongoing stimulus packages , and improvement in the external trade .
According to the Malaysia Economic Monitor released by World Bank in December 2020 , Malaysia ’ s economy is projected to grow back by 6.7 per cent in 2021 , after contracting by 5.8 per cent in 2020 . This includes all the economic sectors covered in the Malaysian halal ecosystem .
The Silver Bullet
Looking past the overall market contraction , the halal industry was the fastest-growing sector in the market since the outbreak of Covid-19 .
To mark , the total contribution of the halal industry to gross domestic product ( GDP ) in 2019 was 7.6 per cent , valued at RM115.5 billion , representing an increase of 5.5 per annum from 2016 to 2019 , comprising 69.3 per cent from the manufacturing sector and 30.7 per cent from the services sector .
“ The Malaysian halal market was estimated at US $ 68.4 billion in 2019 and is expected to grow to US $ 113.2 billion by 2030 . On top of it , the global halal market was valued at US $ 3.3 trillion and is projected to grow to US $ 7.7 trillion in 2030 ,” said Lokman .
To fulfil the market projection and push Malaysia as a global halal hub , Lokman said the silver bullet would be “ to position the Malaysian halal ecosystem as a producer of premium products and services for the global market . This would be a game-changer for Malaysia ”.
The move required a robust collaborative platform constituted by halal professionals , regulators and other critical stakeholders for the holistic development of a robust halal supply chain .
Steps to building a halal ecosystem
But first , Malaysia needs to ensure there is an inclusive and competitive halal ecosystem . As Lokman mentioned , a complete halal ecosystem is underpinned by 7 Strategic Thrusts ( HIMP2030 ), which translates into several multiplier effects on the country ’ s socio-economic drivers . These include :
• Enforcing Halal Industry-friendly Policy
• Establishing a Larger Pool of Halal and Legislation
• Creating News and Bigger Market Spaces for Malaysia ’ s Products and Services Industry Experts to Meet Global Needs
• Enhancing Quality and Integrated Infrastructure Development
• Fostering Thought Leadership
• Producing More Home-Grown Halal Champions
• Facilitating More Competitive Bumiputera Participation in the Halal Industry As stated by Lokman earlier , the move towards transforming Malaysia into a halal hub requires a strong collaborative effort .
Agencies such as Halal Development Corporation ( HDC ) Berhad holds the vast responsibility to provide industry intelligence , synchronise on halal industry strategic direction , and coordinate action plans .
HDC also grips on the role to facilitate industry growth and promote the “ Halal Malaysia ” brand to achieve an effective industry ecosystem based on the Halal Industry Master Plan 2030 .
The Malaysian halal market was estimated at US $ 68.4 billion in 2019 and is expected to grow to US $ 113.2 billion by 2030 . On top of it , the global halal market was valued at US $ 3.3 trillion and is projected to grow to US $ 7.7 trillion in 2030 .”
– Lokman