Malaysia Is the Top Nation in Backing Islamic Economy

Malaysia has solidified its position as a global leader in supporting the multi-trillion-dollar Islamic economy, according to the State of the Global Islamic Economy (SGIE) Report 2022 published by DinarStandard. For the ninth consecutive year, the nation has secured the top spot in the report’s comprehensive rankings, which assess countries’ performance across key sectors of the Islamic economy.

Overview of the SGIE Report and Rankings

The SGIE Report offers an in-depth analysis of countries’ contributions to the Islamic economy, spotlighting opportunities and trends within this growing sector. Malaysia continues to dominate the rankings, followed closely by Saudi Arabia, the United Arab Emirates (UAE), and Indonesia.

The report’s Global Islamic Economy Indicator (GIEI) Score ranks countries based on their performance in six core sectors: Islamic finance, halal food, Muslim-friendly travel, media and recreation, modest fashion, and halal pharmaceuticals and cosmetics. Malaysia notably leads in four of these sectors: Muslim-friendly travel, Islamic finance, halal food, and media and recreation. The country also places second in halal pharmaceuticals and cosmetics and ninth in modest fashion.

Malaysia’s Strength in Muslim-Friendly Travel and Governance

In the Muslim-friendly travel sector, Malaysia is recognized as one of the top five global Muslim travel destinations, alongside Turkey, Saudi Arabia, the UAE, and Iran. The report attributes Malaysia’s strong performance in this area to its ease of travel and public awareness of Muslim-friendly services and facilities.

Malaysia leads two of the five government benchmark dimensions in the report:

• Governance: Malaysia’s regulatory framework for travel, including travel rules and guidelines, is particularly noted for its effectiveness in supporting Muslim tourists.
• Awareness: The country has a strong presence in media coverage, with proactive stakeholder training programs to raise awareness about Muslim-friendly travel.

Strategic Initiatives for Muslim Tourism

Malaysia’s proactive efforts to cater to the burgeoning Muslim tourism market are further emphasized by Tourism, Arts, and Culture Minister Datuk Seri Nancy Shukri. She points out that the country is on the right track in preparing tourism industry players for the growing demand from Muslim travelers.

During the pandemic, the Ministry of Tourism, Arts and Culture, through the Islamic Tourism Centre (ITC), increased efforts to train and upskill tourism stakeholders. These initiatives aimed to help the tourism sector better understand and meet the faith-based needs of Muslim travelers. The ITC’s work includes:

• Developing standards and guidelines to enhance the Muslim tourism and hospitality service delivery.
• Promoting the Islamic tourism ecosystem and Muslim-friendly tourism and hospitality branding as key drivers for the tourism sector’s growth.

Minister Nancy Shukri added, “The Islamic tourism ecosystem and Muslim-friendly tourism and hospitality branding are the way forward as we safely reopen Malaysia’s borders to new and returning visitors.” Malaysia’s strategic focus on Islamic tourism underscores its commitment to maintaining its leadership in the global Islamic economy, offering an inclusive experience for Muslim travelers worldwide.

Malaysia’s Pivotal Role in the Islamic Economy

Malaysia’s consistent top performance in the SGIE Report demonstrates the nation’s holistic approach to developing the Islamic economy. With its robust governance, comprehensive Islamic finance ecosystem, strong halal food industry, and well-developed media and recreation sectors, the country has not only catered to the needs of its domestic Muslim population but has also positioned itself as a global hub for Islamic economic activities.

The SGIE Report highlights Malaysia’s balanced approach to fostering growth in both established sectors like Islamic finance and emerging markets such as halal pharmaceuticals, modest fashion, and Muslim-friendly travel. By setting industry benchmarks and developing world-class standards, Malaysia serves as a model for other countries looking to tap into the rapidly expanding global Islamic economy, which is driven by increasing demand for halal products and services worldwide.