PH halal exports seen doubling to $1.4 B in 2018

The country’s exports of halal-certified products and services are expected to almost double next year $1.4 billion next year from $800 million this year with Marawi, the country’s only Islamic city, playing a central role.

Trade and Industry Assistant Secretary Abdulgani Macatoman told reporters that with the creation of the Philippine Halal Board it will be full blast for the local halal industry as envisioned under Republic Act 10817 of 2016 or the Philippine Halal Exports Development and Promotion Program because this will open more halal product certifiers.

The Halal Board has identified Mindanao, which hosts most of the country’s Muslim population, as central to the promotion of the halal industry in the country.

“From $800 million exports, we can almost double this to $1.4 billion by 2018,” said Macatoman.

Already, memorandum of understanding have been signed with Indonesia, Malaysia, Brunei and oil rich countries Qatar, Saudi Arabia and Kuwait, which are keen on importing halal products from the Philippines.

With R30-billion budget for the rehabilitation of Marawi City, there is a possibility for the establishment of an economic zone in Marawi, making it one of the halal hubs in the country,” said Macatoman.

“Marawi City is the only Islamic city in the country and can become the production hub for exports,” said Macatoman noting there are opportunities for exports to neighboring ASEAN countries Indonesia, Malaysia, and Brunei, as well as other Muslim countries Qatar and Kuwait.

Mindanao is the country’s link to the BIMP-East ASEAN Growth Area (EAGA), which comprises Brunei, Indonesia, Malaysia and the Philippines. This sub-region of ASEAN has a huge Muslim population.

Muslims are estimated to account for 32 percent of the world’s total population. This growing population will trigger increase in demand for halal products from $3.2 trillion to $10 trillion by 2030, said Macatoman.

There are also other parts of the country that can contribute to the supply chain of the halal products.

Aside from exports, there are 11 million Muslims out of the 100 million Filipino population. Halal is not only about food but also services like tourism, financial and banking services.

Meantime, Macatoman said that they have been implementing assistance to the displaced Marawi merchants with the establishment of another market in Iligan to replace the gutted “Padian” in Marawi. To ensure stable supply of basic goods and commodities, the DTI has been conducting “Diskwento Caravan” with the participation of all major manufacturers and retailers.

An estimated 250,000 Marawi residents have been displaced due to the ongoing war in the city.

There are also interested investors in Mindanao, especially from Brunei for agriculture plantation. He also noted of potential investors from the GICC countries since the halal industry has a huge value chain from farm to logistics to storage to consumers.

But he expects the government’s war against the terrorist Maute group to wind down in a few more days. In fact, he said, some of the big contractors have already expressed interest to participate in the rehabilitation projects for the city.