Malaysia to invest RM12.63m to grow halal industry next year

The Malaysian government has allocated RM12.63 million for 2022 to bolster the development of the country's halal industry, said Lim Ban Hong, deputy international trade and industry minister, according to The Edge Markets. The investment includes RM3.9 million for management and development, RM5.1 million for development projects, and RM3.63 million for three development projects, The Edge said.

According to Lim, the halal industry's development will be accelerated through the Halal Industry Master Plan 2030 (HIMP 2030), which outlines seven strategic thrusts with a focus on the production of high-quality products and services along the halal supply chain. 

The Halal Industry Master Plan 2030 was developed to catalyse Malaysia's strength towards the development of its Halal industry holistically. It is said in the report that by 2030, the global halal market is expected to grow to US$5.0 trillion, while domestic growth is estimated to reach US$113.2 billion. "With a comprehensive halal ecosystem, Malaysia is endowed with a competitive advantage to fully capitalise on this timely opportunity," the report said.

The report also highlighted the importance of the halal industry in Malaysia, indicating it as "a strong promoter of socio-economic growth". Though Malaysia is known to have more than 40 years of experience in the development of the halal industry, the report said there is an estimated 80% gap between demand and production of global halal products. As a result, efforts to improve governance, capacity building programmes, and promotion of the industry needs to be intensified, said the report. Similarly, in the Twelfth Malaysia Plan, development projects have been rolled out to boost the halal industry. 

Lim explained that these measures and efforts are predicted to increase the halal industry’s contribution to Malaysia's GDP to 8.1% and generate exports revenue of RM56 billion by 2025, reported The Edge. This is compared to 6.6% and RM30.5 billion, respectively in 2020.

Meanwhile, companies are also seeing the potential in the halal industry. For example, early this year, Fraser & Neave Holdings (F&N) established halal food as its new pillar of growth after acquiring three F&B companies for up to RM60 million last December - Sri Nona Food Industries, Sri Nona Industries, and Lee Shun Hing Sauce. According to CEO, Lim Yew Hoe, the latest investment serves as a platform to expand into more halal food segments and to meet the rising demand for convenience and ready-to-eat food products.

"With our robust R&D capabilities, we are confident that the new acquisitions will help us grow our halal food categories, complement our offerings, introduce more innovative products and increase our profit margin in the long run," Lim said. 

Photo courtesy: 123RF

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