Sabah’s Connectivity and Resources Set to Revolutionize Halal Sector, Says HDC CEO

According to Hairol Ariffein Sahari, CEO of the Halal Development Corporation (HDC), the state’s rich resources and strategic advantages position it to revolutionize the halal industry. Notably, Sabah’s excellent flight connectivity, including direct flights from Tawau to major markets like China, enhances its ability to integrate smoothly into global halal supply chains. This strategic positioning not only supports local businesses but also opens up new opportunities for international trade and collaboration in the halal sector.

Geographical and Logistical Advantages of Halal Sector

Sabah’s geographical location and excellent flight connections provide a competitive edge for halal businesses. The direct flight links between Tawau and China open up vast opportunities for expanding halal businesses and accessing key markets in Asia, including China, Japan, and South Korea. This connectivity not only facilitates trade but also supports Sabah’s ambition to become a central hub in the global halal industry.

Showcasing Sabah’s Halal Potential

Hairol Ariffein Sahari envisions showcasing Sabah’s abundant resources and innovative entrepreneurs to both domestic and international manufacturers. This initiative aims to highlight Sabah’s capability to produce high-quality halal products, driven by a strong commitment to halal certification for raw materials and semi-finished goods.

Economic Goals and Future Projections

HDC’s overarching goal is to have the halal sector contribute 11% to Malaysia’s GDP by 2030. Sabah is expected to play a significant role in achieving this target. Hairol projects Sabah’s halal sector contribution to reach 2-3% of Malaysia’s halal GDP exports by 2030, given the state’s vast potential. Additionally, national halal exports are anticipated to grow by 5-6% from the RM53 billion recorded in 2023.

Halal Malaysia Journey @ Tawau

The Halal Malaysia Journey @ Tawau, held from September 12-14, 2024, serves as a platform for micro, small, and medium enterprises (MSMEs) to gain insights into halal market opportunities. Since its inception in 2021, this program has generated RM25.7 million in sales and engaged over 2,000 MSMEs nationwide. The three-day event focuses on local and export market opportunities and aims to enhance skills and development for local talent.

Expanding Sabah’s Halal Industry

Datuk Andi Muhammad Suryady Bandy, Sabah State Assistant Minister of Industrial Development and Entrepreneurship, highlights Sabah’s potential to evolve into a diversified halal hub. This includes not only halal food but also services like tourism. Sabah’s natural attractions, such as Tawau and Semporna, provide ideal settings for promoting Muslim-friendly tourism.

State Government Initiatives

The Sabah State Government is actively supporting local entrepreneurs through various initiatives. The establishment of the Sabah Islamic Religious Council (MUIS) Halal Hub is a notable effort, offering support for obtaining halal certification, particularly for those without dedicated processing facilities. The MUIS Halal Hub facilitates the Cottage Industry Halal Certification, helping food and beverage entrepreneurs in Sabah achieve Malaysian Halal certification.

Encouraging Participation in Halal Platforms

The state government is also encouraging MSMEs and larger enterprises in Sabah to join the Halal Integrated Platform (HIP). This membership offers valuable business support services and facilitates connections with other players in the halal industry.