NEW HALAL PLATFORM TO SPUR SECTOR GROWTH
For domestic players, HIP will be main catalyst to drive exports, says HDC CEO
ANEW online marketplace called the Halal Integrated Platform (HIP), under the Halal Industry Development Corp (HDC), is set to drive the growth of the halal industry in Malaysia.
HDC chief executive officer Hairol Ariffein Sahari said the initiative will encourage industry players to compete productively and innovatively.
He said with HIP’s launch expected in December, HDC is targeting about 5,000 companies initially, and about 20 partners comprising government agencies and service providers such as banks, insurers and logistics players.
“The market players have the potential to further tap the US$3 trillion global halal market with the rising demand for halal products among non-Muslim consumers. And for domestic players, HIP will be the main catalyst to drive halal exports. This online marketplace will facilitate companies looking to grow their businesses,” Hairol told the New Straits Times.
The domestic market for halal products is worth US$70 billion and is expected to reach US$150 billion by 2030.
Hairol said HDC wants to increase the number of halal-certified companies in Malaysia by giving them the access and capacity to become export-ready.
“Looking at our halal ecosystem, the certification and standards are already there. But what about the capability of our companies? About 98 per cent of them are small and medium enterprises (SMEs) and they need mentoring, money and markets.
“With proper consultation, HDC is positive that halal certification can be obtained by the SMEs within 30 working days.”
He said Malaysia’s halal standards are well-recognised in the world. However, having the best ecosystem and standards do not
guarantee a high global demand for Malaysian halal products.
There are other aspects to successfully penetrate the global market, said Hairol.
“SMEs need to understand the elements of marketing, from branding, distribution channels and messaging to communications strategy. As the country’s halal development agency, HDC is at the forefront of promoting Malaysian products in the international market through various platforms and networks set up overseas.
“With HIP, HDC is paving the way for halal players to enter the New World Economy,” he said.
Hairol said HDC plays an important role in collaborating with
other countries to spearhead the development of Malaysia’s halal economy.
He said the agency has taken steps to work with Japan, Taiwan and South Korea to create a bigger market for Malaysian halal products. It is also targeting China, Vietnam and Indonesia in the next five years.
Meanwhile, he said HIP bodes well for the World Halal Conference 2020’s (WHC 2020) objective of the halal community driving the New World Economy.
Hairol said WHC 2020, to be held on Oct 6 here, will be a hybrid virtual conference.
“We expect about 300 invited delegates and about 1,500 virtual delegates.”