Malaysia’s Halal Industry Aims to Revitalize National Economy

The Halal Development Corporation Berhad (HDC), operating under Malaysia’s International Trade and Industry Ministry, is spearheading efforts to integrate more industry players into the halal economy, aiming to rejuvenate the Malaysian economy. This initiative is expected to boost Malaysia’s halal exports, attract more direct investment into the country’s halal industrial parks, and create quality employment opportunities, paving the way for economic recovery.

In an interview with The Malaysian Reserve, HDC CEO Hairol Ariffein Sahari emphasized the importance of governance and business development in creating a sustainable and robust halal ecosystem. “Focusing on real economic indicators such as the halal industry’s contribution to GDP, exports, investments, and quality employment will guide our efforts in the right direction,” Sahari stated.

Global Leadership and Mutual Recognition

Since 1974, Malaysia has seen the organic growth of its halal industry, with significant policy integration occurring in the early 2000s. Today, Malaysia boasts the most mature halal ecosystem globally, providing a competitive edge. “Internationalizing our halal ecosystem and fostering mutual recognition will promote trade, investment, and employment opportunities,” Sahari noted, acknowledging the importance of recognizing and collaborating with emerging halal markets worldwide.

Resilience and Recovery Post-Pandemic

Before the pandemic, HDC’s halal parks attracted between RM1.5 billion and RM2 billion in direct investments annually, created over 300,000 jobs, and facilitated the certification of around 10,000 halal companies, leading to RM41 billion in exports. The COVID-19 pandemic, however, disrupted the halal supply chain, reducing exports and halal certifications significantly. Despite these challenges, HDC has observed a positive trend in export activities and investments, signaling a gradual recovery.

The Halal Integrated Platform

With the global halal market valued at approximately US$3.1 trillion, Malaysia aims to increase its share of halal exports, which has remained below RM50 billion for the past decade. The Halal Integrated Platform, developed by HDC, seeks to connect all 200,000 SMEs in Malaysia to the halal economy, with a focus on increasing the number of halal-certified companies and exporters.

Focusing on Strategic Sectors

HDC is prioritizing sectors such as food services and pharmaceuticals for long-term growth post-pandemic, emphasizing the importance of controlling halal raw materials. “Whoever controls the halal raw materials will control the halal supply chain,” Sahari remarked, highlighting the potential for Malaysia to expand its export of food supplements and medications.

As Malaysia continues to navigate the challenges and opportunities within the halal industry, HDC’s strategic initiatives and focus on sustainable development, mutual recognition, and strategic sector prioritization aim to position Malaysia as a global leader in the halal economy.