Borong and Maybank Launch Malaysia’s First B2B Halal Marketplace

In a significant development for Malaysia’s halal industry, Borong, a leading wholesale business-to-business (B2B) e-commerce platform, has joined forces with Maybank Islamic to launch Salaam Market, the country’s first B2B halal marketplace. Designed to address the unique challenges faced by small and medium-sized enterprises (SMEs) in the halal sector, the platform provides a seamless digital solution for sourcing halal-certified products. By integrating financial services, halal certification support, and digital document management, Salaam Market marks a pivotal step toward establishing Malaysia as a global leader in the halal economy.

SMEs to Overcome Halal Market Challenges

The halal industry, known for its rigorous standards and regulatory requirements, presents both opportunities and challenges for businesses. While the global halal market is projected to grow to an impressive $5 trillion by 2030, many SMEs find it difficult to penetrate this space due to high ingredient costs, complex certification processes, and limited access to working capital. In Malaysia, the domestic halal market is expected to reach $113.2 billion by 2030, yet SMEs often struggle to capitalize on this growth due to barriers to entry.

Salaam Market is designed to empower these businesses by addressing their most pressing needs. The platform connects SMEs directly with suppliers, offering competitive pricing and eliminating minimum order requirements. This makes it easier for businesses to access certified halal ingredients and products, reducing procurement costs and streamlining the process of ensuring compliance with halal standards.

“For us, Salaam Market is more than just an e-commerce platform. It represents a significant step in modernizing the halal market,” said Aizat Rahim, managing director and co-founder of Borong. “We have worked hard to tackle the key challenges for SMEs—affordability, financing, and certification—by partnering with Maybank Islamic for financing solutions and receiving support from JAKIM for halal certification.”

Partnership for Islamic Financing

Maybank Islamic’s involvement with Salaam Market goes beyond providing financial services. The bank has developed tailored Islamic financial solutions that meet the unique needs of halal-compliant businesses. This aligns with Maybank Islamic’s broader strategy of “Halal beyond banking,” which seeks to provide comprehensive support to businesses throughout their halal journey.

The partnership provides more than just financial support; it integrates Islamic financing options directly into the platform, making it easier for SMEs to access funds needed for growth. This financing support is crucial, as SMEs often face cash flow constraints that limit their ability to scale. The involvement of JAKIM, Malaysia’s primary halal certification body, adds an extra layer of assurance by ensuring that all products listed on Salaam Market meet strict halal standards.

Addressing the Halal Certification Challenge

Halal certification can be a complex and time-consuming process, especially for SMEs that lack the resources to navigate regulatory requirements. Salaam Market simplifies this process by offering in-house halal facilitation services and digital document management tools. These features allow businesses to manage compliance more effectively, reducing administrative burdens and allowing them to focus on growth.

Certification is not just about adhering to religious standards; it is also a matter of consumer trust. Today, halal products are not only sought after by Muslim consumers but are increasingly popular among non-Muslims who perceive halal-certified items as high-quality and ethically produced. With rising demand for halal products, certification has become a critical factor for businesses looking to expand in the global market.

The Importance of the B2B Halal Marketplace

The introduction of the Salaam Market reflects a growing trend in the halal industry: the increasing importance of B2B marketplaces in facilitating trade. Traditionally, the halal market has been dominated by B2C (business-to-consumer) models, with companies focusing on end consumers. However, the B2B halal marketplace offers unique advantages, particularly for SMEs.

For instance, the platform allows businesses to source ingredients, raw materials, and finished products from halal-certified suppliers across Southeast Asia. This cross-border trade is vital in a region that is home to over 240 million Muslims, creating a substantial demand for halal products. With direct access to suppliers, businesses can reduce supply chain complexities and costs, making it easier to offer competitively priced products.

The halal marketplace is not limited to food products alone. It encompasses a wide range of industries, including cosmetics, pharmaceuticals, fashion, and even tourism. The halal tourism market is projected to reach $300 billion by 2030. This diversification highlights the growing significance of halal standards across different sectors, opening up new opportunities for businesses on platforms like Salaam Market.

Related: Maybank Becomes First Commercial Bank to Offer Islamic Banking in the Philippines

Malaysia’s Position as a Halal Hub

Malaysia has long been recognized as a leader in the global halal industry, with robust regulatory frameworks and strong government support. Initiatives like Salaam Market are part of the country’s broader strategy to solidify its position as a global halal hub. By providing a comprehensive digital ecosystem for halal businesses, Malaysia aims to attract more international trade and investment in the halal sector.

The government has already taken significant steps to support the Halal economy, including launching the Halal Industry Master Plan and setting up agencies like the Halal Development Corporation (HDC). With these initiatives in place, Malaysia continues to enhance its competitiveness in the global halal market, driving growth and encouraging innovation.

How Salaam Market Facilitates Trade

One of the standout features of Salaam Market is its ability to facilitate cross-border trade within Southeast Asia and beyond. By providing a digital marketplace that connects buyers and suppliers from multiple countries, the platform simplifies international halal transactions. This is particularly valuable in a region where halal standards may vary from one country to another, as Salaam Market ensures compliance with recognized standards, including JAKIM’s.

Additionally, the platform supports export initiatives by providing local SMEs with the tools and financial backing needed to compete in international markets. This capability aligns with Malaysia’s vision to boost exports of halal products, with the government aiming to double halal exports to $20 billion by 2025. Platforms like Salaam Market play a crucial role in achieving this target by making it easier for businesses to navigate regulatory requirements and connect with global markets.

Technology for a Smarter Halal Economy

Technology is at the heart of modernizing the halal industry. Salaam Market leverages digital tools to offer a more efficient and transparent platform for halal transactions. By utilizing cloud-based technology, businesses can access digital document management, halal certification tracking, and financing options from any location. This enables businesses to operate more efficiently and respond to market demands faster.

Blockchain technology could also be on the horizon for platforms like Salaam Market, offering the potential to further enhance traceability and transparency in the halal supply chain. Blockchain could ensure that every step of the production process complies with halal standards, from sourcing raw materials to manufacturing and distribution. This level of transparency is becoming increasingly important for consumers who want to know the origins and quality of the products they purchase.

Expanding the Halal Ecosystem

While food remains a cornerstone of the halal industry, there is a growing recognition that halal standards extend beyond dietary laws. Salaam Market is well-positioned to cater to this expanded scope, offering halal-certified products in areas such as cosmetics, pharmaceuticals, and fashion. This expansion is driven by the increasing demand for ethical and high-quality products, which halal certification can guarantee.

For instance, the global halal cosmetics market is projected to reach $76 billion by 2030, driven by demand from Muslim and non-Muslim consumers alike. Halal certification for cosmetics ensures that products are free from harmful substances, making them more appealing to health-conscious consumers. Salaam Market’s B2B platform could serve as a gateway for companies looking to tap into this rapidly growing sector.

Creating an Ecosystem for Halal SMEs

The launch of Salaam Market is just one piece of a larger puzzle aimed at empowering halal businesses. The Malaysian government, along with private sector partners like Borong and Maybank Islamic, is actively working to create a supportive ecosystem that facilitates growth. This includes providing grants, financing options, and training programs focused on halal standards and digital transformation.

The goal is to ensure that SMEs are not left behind as the halal market evolves. By equipping them with the tools they need to succeed, Malaysia is not only driving economic growth but also ensuring that halal products continue to meet the highest standards of quality and ethical production.

Malaysia’s B2B Halal Marketplace Plan

Malaysia’s Halal Industry Master Plan outlines a comprehensive strategy for positioning the country as a leader in the global halal economy. The plan includes initiatives to enhance the capabilities of local businesses, foster innovation, and strengthen regulatory frameworks. Salaam Market aligns with these objectives by providing a platform that encourages digital adoption and streamlines halal certification.

With the halal economy expected to grow at a compound annual growth rate of 7.2% over the next decade, Malaysia’s efforts to lead in this space could set a benchmark for other countries. By focusing on SME development and technology integration, the country is creating a blueprint for sustainable growth in the halal industry.

The Future of the B2B Halal Marketplace

The success of Salaam Market will depend on its ability to adapt to changing market dynamics and meet the evolving needs of businesses. As the halal industry continues to expand into new sectors and markets, platforms like Salaam Market must innovate to stay ahead. This could involve incorporating new technologies such as artificial intelligence for better demand forecasting or expanding the platform to include halal tourism services.

Challenges remain, particularly in ensuring compliance with varying halal standards across different countries. However, with a robust infrastructure and strong partnerships, Salaam Market is well-positioned to overcome these hurdles and drive the future growth of the B2B halal marketplace.

A Milestone in Malaysia’s Halal Journey

The launch of Salaam Market by Borong and Maybank Islamic marks a significant milestone in Malaysia’s efforts to lead the global halal economy. By addressing the unique challenges faced by SMEs and offering a comprehensive digital solution for halal sourcing and financing, the platform paves the way for businesses to thrive in an increasingly competitive market.

As the global halal industry approaches $5 trillion, initiatives like Salaam Market are crucial for positioning Malaysia at the forefront of this growth. By empowering SMEs, driving innovation, and expanding market access, Salaam Market is set to play a pivotal role in shaping the future of the halal economy, not just in Malaysia but across Southeast Asia and beyond.