Alliance Islamic Bank offers RM400m financing to help SME succeed in halal sector

KUALA LUMPUR: Alliance Islamic Bank Bhd (AIS) is providing RM400 million shariahcompliant financing this year through its Halal in One (HIO) programme, a halal ecosystem that offers financial and non-financial support to help business owners grow and succeed in the halal space.

AIS CEO Rizal Il-Ehzan Fadil Azim said the programme offers end-to-end halal certification support, advisory, shariahcompliant funding, assistance to digitise small and medium enterprises’ (SME) business, and global market access to businesses seeking to expand their customer reach in the halal segment.

HIO also helps businesses obtain customised financing for certification costs, premises renovation, equipment hire purchase and working capital, he said.

“With the global halal market expected to grow rapidly from US$3 trillion (RM14 trillion) currently to US$7.7 trillion by 2030, we found that many businesses were aware of the opportunity that they could seize to boost their sales.

“However, business owners face multiple challenges when venturing into the halal segment, such as capital constraints, intense competition, outdated technology, limited business network, and lack of experience in obtaining and maintaining halal certification,” Rizal Il-Ehzan told Bernama recently.

According to him, SMEs typically do not seek halal certification due to a lack of proper understanding, perceived complexity of the process, and financial limitations.

“Together with our diverse partners, the HIO programme can help SMEs begin their halal journey,” he said.

Among some of the partners are Halal Development Corporation Bhd and HQC Commerce, which help businesses generate high-quality leads through initiatives such as their on-ground events.

Rizal Il-Ehzan said the programme, which is centred around three value propositions (namely Set Up Halal, Grow Halal, and Fund Halal), supports AIS’ vision to be the preferred banking partner of business owners and communities.

“The three value propositions of HIO guide our partner selection and expand its ecosystem of experts.

HIO allows businesses to tap into the halal market via our services that are tailored to their needs,” he said.

AIS has so far collaborated with nine partners and supported more than 100 SMEs since the establishment of HIO in 2020. – Bernama