by ANIS HAZIM / source Mohd Shahar’s Facebook
MALAYSIA requires collaborative efforts to support its halal industry and develop more homegrown halal champions among the micro, small and medium enterprises (MSMEs).
Deputy Finance Minister I Datuk Mohd Shahar Abdullah (centre) said Malaysia’s halal industry continues to face several issues and challenges despite its rank among the top halal export countries in the world.
Some of the challenges include the lack of capacity for innovation and research and development (R&D) to produce high value-added products and services, and lack of dynamism of domestic halal MSMEs to strengthen Malaysian halal brands as well as enhance product visibility.
“The funding for innovation and R&D will require support from both the public and private sectors to manage risks and attract potential long-term investors,” Mohd Shahar said at the launch of the report “Islamic Finance and the Development of Malaysia’s Halal Economy” today.
He said such collaboration will also help to develop brand value and utilise new media technology to increase awareness and generate more interest in local brands.
He added that Malaysia’s halal exports climbed 19% from RM30.5 billion in 2020 to RM36.3 billion in 2021, accounting for 2.9% of Malaysia’s overall exports, based on data by Halal Development Corp.
Malaysia’s top halal export destinations include China, Singapore, the US, Japan and Indonesia, while food and beverages, halal ingredients, cosmetics and personal care, palm oil derivatives, industrial chemicals and pharmaceuticals are the top product categories in 2021.
“In terms of investments, our halal parks have attracted a cumulative total of RM16.1 billion since 2011 from both foreign and domestic players.
“A total of 295 companies are currently in operation throughout the 21 halal parks across Malaysia, with 42 companies being multinational corporations, while the remaining are locally owned corporations,” he said.
Meanwhile, Malaysia’s export value of halal products is targeted to grow to RM56 billion by 2025, while the contribution of the halal industry to GDP is targeted to grow to 8.1% from 7.5% in 2020.