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The Malaysian government has set RM12.63 million for 2022 to support the development of the country’s halal industry, said Lim Ban Hong, deputy international trade and industry minister, according to The Edge Markets. They mentioned that 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 Halal Industry Master Plan 2030 (HIMP 2030), which explains seven key strategies with a focus on the production of high-quality products and services along the halal supply chain, will, according to Lim, speed up the halal industry’s development.
The Halal Industry Master Plan 2030 was created to reinvigorate Malaysia’s efforts to develop its Halal industry in a holistic manner. According to the report, the global halal market is expected to reach US$5.0 trillion by 2030, with domestic growth reaching US$113.2 billion. The report stated, “With a comprehensive halal ecosystem, Malaysia is endowed with a competitive advantage to fully capitalize on this timely opportunity.”
The importance of the halal industry in Malaysia was also highlighted in the report, which described it as “a strong promoter of socio-economic growth.” Despite Malaysia’s more than 40 years of experience in the development of the halal industry, the report claims that there is an estimated 80% gap between global halal product demand and production. As a result, the report recommends that efforts to improve governance, capacity-building programs, and industry promotion be stepped up. Similarly, development projects to boost the halal industry have been rolled out in the Twelfth Malaysia Plan.
According to The Edge, these measures and efforts are expected to boost the halal industry’s contribution to Malaysia’s GDP to 8.1 percent and generate RM56 billion in export revenue by 2025. In 2020, this will be 6.6 percent and RM30.5 billion, respectively.
Meanwhile, businesses are recognizing the halal industry’s potential. For example, after attaining three F&B companies for up to RM60 million last December – Sri Nona Food Industries, Sri Nona Industries, and Lee Shun Hing Sauce – Fraser & Neave Holdings (F&N) established halal food as its new foundation of growth early this year. The latest investment, according to CEO Lim Yew Hoe, will be used to broaden into more halal food segments and to meet the growing 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.
