Malaysia Poised to Export Halal Certification Services Globally

Malaysia is set to become a key global player in exporting halal certification services, as announced by Investment, Trade and Industry Minister Tengku Zafrul Tengku Abdul Aziz. This strategic development was emphasized during recent diplomatic engagements led by Prime Minister Datuk Seri Anwar Ibrahim with the Kyrgyz Republic, Kazakhstan, Uzbekistan, and Vietnam. These nations have shown a strong interest in adopting Malaysia’s renowned halal certification services to boost their agricultural and processed food sectors. This move aligns with Malaysia’s goal to enhance its influence in the global halal market, providing a framework for international partnerships that capitalize on the country’s well-established halal expertise.

Expanding Malaysia’s Halal Certification Services

The launch of the Halal Accreditation and Technology Improvement Initiative (Hati) by Malaysian Industrial Development Finance Bhd (MIDF) marks a significant stride toward empowering small and medium enterprises (SMEs) in the manufacturing and service sectors. With a dedicated fund of RM100 million, Hati aims to boost SME growth, enhance competitiveness, and encourage the global expansion of halal products and services through modernization and technology adoption.

Fostering Economic Inclusivity and Global Reach

The Hati initiative is designed to provide comprehensive ecosystem support to SMEs, going beyond mere financial assistance. This approach aligns with the principles of the Madani Economic Framework and the New Industrial Master Plan 2030 (NIMP 2030), which emphasize economic inclusivity for businesses of all sizes. By 2030, the global halal market is projected to reach a staggering US$5 trillion, and Hati is set up to ensure that Malaysian SMEs are well-positioned to tap into this lucrative market.

A Comprehensive Support System for SMEs

Through collaborations with the Halal Development Corporation (HDC) and other key stakeholders, Hati offers a robust support system for SMEs. This includes mentorship, training, and workshops designed to navigate the complexities of halal certification and ensure compliance with international standards. The initiative covers a wide range of activities necessary for gaining halal certification, such as premises renovation, machinery purchase, and staff training.

Interest rates for financing under Hati range from 4% to 6.5% per annum, with provisions for up to RM100 million in financing. This financial support is tailored to cover various needs, including branding and packaging, which are crucial for gaining a foothold in international markets.

Enhancing Capabilities and Standards

MIDF Chairman Tan Sri Abdul Rahman Mamat emphasized that Hati’s financing options ensure that Malaysian SMEs can compete globally and capitalize on the growing demand for halal-certified products and services. Tengku Zafrul expressed confidence that the Hati program will set a new benchmark for efficient, transparent, and internationally recognized halal accreditation processes.

As Malaysia cements its role as a global center for halal excellence, the Hati initiative stands as a powerful testament to the nation’s dedication to economic development and support for small and medium enterprises (SMEs). By assisting SMEs in acquiring halal certification services, facilitating their international expansion, and generating high-skilled job opportunities in the halal sector, Malaysia is not only advancing its economic framework but also establishing international benchmarks for halal certification services and accreditation. These strategic efforts showcase Malaysia’s leadership in shaping a globally recognized halal industry standard.