HDC Aspiring To Turn Malaysia Into A High Income Country

The Halal Industry Development Corporation (HDC) is dedicated to supporting Malaysia’s goal of becoming a high-value-added, high-income economy and strengthening its connections with regional and international economies. This effort is crucial for the expansion of the global Islamic economy.

According to Chief Executive Officer Datuk Seri Jamil Bidin, the Islamic economy has gained global acceptance, becoming a key component of the international financial system and creating new opportunities for global participation.

Jamil highlighted that while the initial focus of the Islamic economy was predominantly domestic and religious, its growth has now transcended regional boundaries. “Today, the Islamic economy is no longer confined to Muslim-majority countries. The rising demand for halal products and the increasing acceptance of Islamic finance are significant drivers of this transformation,” he said during a panel discussion at the 4th World Muslim Leadership Forum in London. The forum, titled “Halal Economy and Islamic Finance-Powering The New Global Economy,” explored how the halal economy and Islamic finance can contribute to global economic growth.

Jamil emphasized that the internationalization of the Islamic economy over the past decade has opened up the potential for strategic partnerships between international regulators and stakeholders. This global integration and strategic collaboration can help Malaysia and other countries leverage their unique advantages and foster mutually beneficial relationships.

HDC also pointed out the robust growth forecasts for the halal and Islamic finance sectors. The global halal food industry is projected to reach USD 739.59 billion by 2025, while the Islamic finance industry is expected to grow to USD 6.7 trillion by 2020. This growth is partly fueled by increased interest in Islamic finance from non-Muslim countries.

Currently, over 300 Islamic financial institutions are operating worldwide, with more than USD 260 billion (approximately MYR 1.1 trillion) invested in Islamic funds. This indicates a substantial and growing interest in both halal products and Islamic finance, reinforcing Malaysia’s strategic role in the global Islamic economy.

In summary, HDC’s efforts align with Malaysia’s broader economic aspirations, positioning the country as a significant player in the expanding global Islamic economy. By fostering international partnerships and leveraging its comparative advantages, Malaysia aims to capitalize on the burgeoning opportunities in the halal and Islamic finance sectors.