HDC Named Secretariat for Malaysian Halal Council

A Holistic Approach to Halal Industry Development

The appointment of HDC as the Secretariat is not merely an administrative change; it marks a strategic shift towards a more integrated and holistic approach to the development of Malaysia’s halal sector. According to Deputy Prime Minister and Chairman of the Halal Industry Development Council (MPIH), Datuk Seri Dr. Ahmad Zahid Hamidi, the growing global demand for halal products presents a unique opportunity for local industry players to expand their reach both domestically and internationally.

“Special attention must be given to developing the halal industry so that Malaysia can emerge as a global hub for halal production and distribution,” said Dr. Zahid. This move is expected to streamline the efforts to position Malaysia as the preferred destination for halal investments, ensuring that the country remains at the forefront of the global halal economy.

Malaysia’s halal industry is not just about fulfilling religious obligations but also about tapping into a market that is estimated to be worth over USD 2 trillion globally. The halal sector encompasses various industries, including food, pharmaceuticals, cosmetics, logistics, and finance. With the HDC at the helm, the Malaysian Halal Council is set to take a more proactive role in ensuring that Malaysia not only meets the growing demand for halal products but also sets the standard for halal certification worldwide.

Catalysts for Economic Growth

A key focus of the meeting was the ongoing initiative to improve the nation’s halal industrial parks. Currently, Malaysia boasts 14 designated halal industrial parks, covering a total area of 5,476 hectares. These parks are designed to attract both local and foreign investors, thereby creating job opportunities and contributing to Malaysia’s economic growth.

However, Dr. Zahid noted that only three out of the 14 parks—POIC Tanjung Langsat, Techpark @Enstek, and Melaka Halal Hub—have achieved land utilization rates exceeding 70%. This indicates a need for more effective strategies to optimize the use of these industrial zones. The HDC’s role as Secretariat will include addressing these challenges by implementing recommendations to enhance the parks’ effectiveness.

Moreover, these parks are not just about economic growth; they also play a crucial role in ensuring that Malaysia’s halal products meet international standards. The parks are designed to be centers of excellence, where innovation in halal product development can thrive. By fostering a culture of research and development within these parks, Malaysia can ensure that it remains at the cutting edge of the halal industry.

HALMAS Accreditation

A cornerstone of Malaysia’s strategy to attract halal industry players is the HALMAS accreditation, a prestigious status awarded to operators of halal parks that meet stringent guidelines set by the HDC. Achieving HALMAS status enables industry players and investors to access various incentives, including tax breaks and grants, which are crucial for fostering growth within the halal sector.

As part of its new role, HDC will be tasked with ensuring that more halal industrial parks meet the criteria for HALMAS accreditation. This will not only boost investor confidence but also ensure that Malaysia’s halal products meet the highest standards, further solidifying the country’s reputation as a global halal hub.

The HALMAS accreditation is more than just a certification; it is a mark of quality that signifies that a halal park meets the highest standards of operation. This accreditation is essential for attracting international investors, who are increasingly looking for assurance that the products they are investing in are genuinely halal. By increasing the number of HALMAS-accredited parks, Malaysia can attract more foreign direct investment (FDI) into the halal sector, further boosting the national economy.

Addressing Key Challenges

Despite the progress, several challenges remain. The meeting highlighted issues such as inadequate incentives and guidance for Micro, Small, and Medium Enterprises (MSMEs), insufficient infrastructure, and limited public transportation networks within the halal parks. Moreover, there is a pressing need for more robust promotional strategies to attract foreign investors.

MSMEs, which make up a significant portion of Malaysia’s economy, often face challenges in accessing the benefits of the halal industry. The lack of clear guidance and incentives has hindered their ability to scale up and compete on a global level. Addressing these challenges will be a key priority for the HDC as it takes on its new role within the Malaysian Halal Council. Providing targeted support for MSMEs, such as easier access to financing and streamlined processes for halal certification, could be game-changers in empowering these businesses to thrive.

Infrastructure is another critical area that needs improvement. The success of halal industrial parks depends heavily on the availability of robust infrastructure, including transportation networks, utilities, and communication facilities. The HDC will need to work closely with both federal and state governments to ensure that these parks are equipped with the necessary infrastructure to support growth and attract investment.

The Role of Innovation

As Malaysia continues to position itself as a global halal hub, the role of innovation and technology cannot be overlooked. The halal industry, like any other, is evolving rapidly, and staying ahead of the curve requires a commitment to research and development. The HDC, in its capacity as the Secretariat of the Malaysian Halal Council, will need to foster a culture of innovation within the halal parks.

This includes the development of new halal products, the improvement of halal certification processes, and the adoption of new technologies such as blockchain to ensure transparency in the halal supply chain. Blockchain, in particular, holds great promise for the halal industry, as it can provide an immutable record of a product’s journey from farm to table, ensuring that it complies with halal standards at every stage.

Furthermore, the integration of Industry 4.0 technologies, such as artificial intelligence (AI) and the Internet of Things (IoT), can enhance the efficiency of halal production processes, reduce costs, and improve product quality. By embracing these technologies, Malaysia can not only meet the growing demand for halal products but also set new standards for the global halal industry.

The Future of Malaysia’s Halal Industry

With the HDC now serving as the Secretariat of the Malaysian Halal Council, there is renewed optimism about the future of Malaysia’s halal industry. The combined efforts of the government, industry players, and stakeholders are expected to transform the halal sector into a major contributor to the nation’s economy.

As global demand for halal products continues to rise, Malaysia is well-positioned to capitalize on this trend. The strategic initiatives discussed at the Halal Industrial Park Improvement Task Committee meeting, coupled with the leadership of the HDC, will undoubtedly play a pivotal role in driving the growth of the Malaysian halal industry.

In conclusion, the appointment of HDC as the Secretariat of the Malaysian Halal Council marks a critical step forward in Malaysia’s journey to becoming a global halal hub. With the right strategies and collaborations in place, the future looks promising for the Malaysian halal sector. By addressing the challenges that remain and embracing innovation and technology, Malaysia can ensure that its halal industry not only meets but exceeds global expectations.