SME Bank Fuels Halal Industry Growth at 20th Malaysia International Halal Exhibition 2024

SME Bank Malaysia Berhad (SME Bank), the lead agency for the Ministry of Entrepreneur and Cooperatives Development (MECD), has once again demonstrated its commitment to fostering the growth of small and medium enterprises (SMEs) in Malaysia’s Halal industry. At the 20th Malaysia International Halal Showcase (MIHAS) 2024, SME Bank took a prominent role, strengthening its position as a key player in promoting the Malaysian Halal economy and empowering local businesses to thrive globally.

Since 2013, SME Bank has been an essential partner of MIHAS, consistently providing a platform for businesses to showcase their products and services in the global Halal market. This year’s exhibition featured 26 Halal entrepreneurs and 14 local franchise companies that SME Bank has supported throughout their entrepreneurial journeys. These companies showcased their innovative products and services at the MECD pavilion, further solidifying the bank’s central role in nurturing Malaysia’s Halal industry and positioning the country as a leader in the global Halal economy.

A Strategic Platform for SME Empowerment

Datuk Dr. Mohammad Hardee Ibrahim, Acting Group President and CEO of SME Bank expressed his pride in the bank’s continued participation at MIHAS 2024. “We are honored to be part of MIHAS 2024,” said Dr. Hardee. “This event is a strategic platform for us to present key initiatives like the Business Export Programme (BEP), the SME Bank Umbrella Programme, HalalBiz Financing, and the Capacity & Capability Development Programme (PPKV).” These programs are essential for supporting Malaysian businesses, especially in their efforts to enter new markets and expand globally.

HalalBiz Financing, in particular, is a cornerstone of the National Budget 2024 and aims to boost Halal exports while positioning Malaysia as a global leader in the Halal economy. By offering specialized financing options, SME Bank is enabling local businesses to scale and export their products internationally, thus ensuring they remain competitive in the global market.

Dr. Hardee also emphasized the significance of MIHAS as a vital event for promoting Malaysia’s Halal ecosystem. The exhibition provides an unparalleled opportunity for SMEs to connect with international buyers, investors, and partners, helping them to establish crucial business relationships and explore new markets. Through initiatives like the Business Export Programme, SME Bank is actively supporting these efforts and empowering SMEs to capitalize on the growing demand for Halal products worldwide.

SME Bank’s Role in Empowering SMEs in the Halal Sector

SME Bank has introduced several initiatives specifically designed to address the needs of SMEs in the Halal industry. Among the most notable are the Halal Innovation & Technology Programme, the Halal Entrepreneur Internationalisation Programme, and the Halal Product Capacity Development Programme. These programs aim to improve businesses’ technological capabilities, strengthen their market presence, and enhance their global competitiveness.

For instance, the Halal Innovation & Technology Programme focuses on fostering innovation within the Halal sector, helping SMEs develop cutting-edge products that meet international standards. This program has been particularly beneficial for businesses seeking to differentiate themselves in a crowded market by leveraging technology to create unique and high-quality Halal offerings.

Additionally, SME Bank has allocated RM8.5 million in grants for the period 2023–2024 to support these initiatives. These funds provide much-needed financial backing to SMEs, enabling them to invest in product development, marketing, and international expansion. The grants are also instrumental in helping businesses comply with global Halal standards, which is a critical factor for companies looking to export their products to markets like the Middle East, Europe, and Southeast Asia.

Dr. Hardee further highlighted SME Bank’s commitment to driving global growth for Malaysia’s Halal industry. “SMEs are the backbone of Malaysia’s economy, and we are dedicated to ensuring their continued success,” he said. “Our upcoming initiatives, including FOODEX KANSAI 2024 in Japan, the 21st CAEXPO in China, and MIHAS 2024 in Dubai, are designed to provide local businesses with the exposure and opportunities they need to expand their reach globally.”

By participating in these international events, SME Bank is helping to create valuable networking opportunities for Malaysian SMEs, connecting them with potential buyers, investors, and partners from around the world. This global exposure is essential for businesses looking to expand their operations and tap into new markets.

The Let’s Engage Programme is another initiative aimed at accelerating the growth of Halal businesses. Through this program, SME Bank fosters collaboration between SMEs and larger industry players, facilitating the exchange of knowledge and resources. This collaborative approach is key to driving innovation and ensuring that local businesses have the support they need to succeed on the global stage.

Boosting Halal Exports with the Export Mission

One of SME Bank’s most impactful programs is the Export Acceleration Mission (EAM), which has played a critical role in helping Malaysian SMEs expand their presence in international markets. Since its launch in 2020, the EAM, along with the Business Export Programme (BEP), has generated over RM74 million in incremental export sales. Perhaps more impressively, 65% of the companies that participated in these initiatives successfully entered new markets, demonstrating the effectiveness of SME Bank’s export-focused programs.

The Business Export Programme, in collaboration with MATRADE (Malaysia External Trade Development Corporation) and MECD, has been instrumental in supporting SMEs looking to expand their businesses internationally. To date, the BEP has assisted 84 companies, securing RM154.94 million in new financing approvals for high-potential SMEs. These financing options provide businesses with the capital they need to scale their operations and compete on a global scale.

At the SME Bank XCESS 2024 event, Malaysian SMEs achieved significant success, reporting RM40 million in confirmed sales, with potential future sales projected to reach RM138 million. These impressive figures highlight the importance of events like XCESS in providing businesses with opportunities for growth and expansion. By facilitating connections between SMEs and international buyers, SME Bank is playing a pivotal role in driving the global growth of Malaysia’s Halal industry.

A Promising Future for SMEs

SME Bank’s continued involvement in MIHAS 2024 and its wide range of initiatives demonstrate the bank’s unwavering commitment to supporting SMEs in Malaysia’s Halal industry. Through its various programs and partnerships, SME Bank is helping local businesses navigate the challenges of international trade, scale their operations, and expand into new markets.

The global demand for Halal products is on the rise, and Malaysia is well-positioned to capitalize on this trend. With SME Bank leading the charge, the future looks bright for SMEs in the Halal sector. By providing critical financial support, fostering innovation, and connecting businesses with global opportunities, SME Bank is playing an essential role in ensuring that Malaysia’s Halal industry continues to thrive on the world stage.

As the world’s demand for Halal products continues to grow, the role of institutions like SME Bank will become even more important. By empowering SMEs and supporting their international expansion, SME Bank is helping to solidify Malaysia’s position as a global leader in the Halal economy.

For more information about SME Bank’s programs and initiatives, visit SME Bank’s official website.