Philippines To Launch National Halal Strategy

The Philippines is making a strategic move to position itself as a key player in the burgeoning global Halal market through the introduction of the Philippines National Halal Strategy. This ambitious plan, spearheaded by the Department of Trade and Industry (DTI), is not just a response to the escalating global demand for Halal products and services; it’s a calculated effort to reshape the economic landscape of the country. With a target of attracting PHP 230 billion in investments and creating 120,000 jobs over the next five years, the strategy is poised to unlock significant economic opportunities, particularly for the nation’s Micro, Small, and Medium Enterprises (MSMEs). This initiative aims to solidify the Philippines’ position as a leading Halal hub in the Asia-Pacific region, opening up new avenues for international trade and investment.

Understanding the Philippines Halal Strategy

The global Halal market is currently experiencing exponential growth, driven by an increasing Muslim population, which is projected to reach 2.2 billion by 2030. The Halal economy, which was valued at USD 3.2 trillion in 2015, is expected to surge to an astonishing USD 7.7 trillion by 2025. This growth is not just confined to traditional food products; it spans a wide range of sectors including Islamic finance, Halal-friendly tourism, modest fashion, Halal pharmaceuticals, and Halal cosmetics. The appeal of Halal products is expanding beyond the Muslim consumer base, attracting non-Muslims who are drawn to the ethical considerations, hygiene standards, fair trade practices, and just financing that Halal certification represents.

The Philippines, with its rich cultural diversity and strategic location in the Asia-Pacific, is uniquely positioned to tap into this lucrative market. By implementing the Philippines National Halal Strategy, the country aims to establish itself as a gateway for Halal trade and investment in the region. This initiative is aligned with President Ferdinand R. Marcos Jr.’s vision, as articulated at the World Economic Forum in Davos, where he emphasized the Philippines’ potential as a pivotal player in the regional economy. The strategy not only seeks to cater to the rising domestic demand for Halal products but also aims to capture a significant share of the international Halal market, particularly among the 57 member countries of the Organization of Islamic Cooperation (OIC), which span Asia, the Middle East, Africa, Europe, and the Americas.

The Strategic Vision of the Philippines Halal Strategy

At the core of the Philippines National Halal Strategy is a comprehensive plan to make the Philippines the most Halal-friendly trade and investment hub in the Asia-Pacific region. This vision is driven by the recognition that the Halal industry is not just about meeting religious requirements; it is an economic powerhouse that has the potential to drive significant growth and development. DTI Secretary Fred Pascual has emphasized the inclusive nature of Halal, noting that its appeal extends far beyond the Muslim community. Halal products are increasingly being recognized worldwide for their ethical and health-related benefits, which align with global trends towards sustainability, transparency, and consumer well-being.

The strategy is structured around four core priorities:

1. Promoting regional development: By focusing on regional development, the strategy aims to ensure that the benefits of Halal industry growth are distributed across the country, particularly in regions with significant Muslim populations such as Mindanao.
2. Ensuring food security: The strategy recognizes the importance of food security, particularly in the context of global supply chain disruptions. By developing a robust Halal food industry, the Philippines can enhance its food security while also catering to the growing global demand for Halal-certified products.
3. Upgrading and supporting MSMEs: MSMEs are the backbone of the Philippine economy, and the strategy places a strong emphasis on upgrading, upskilling, and expanding these enterprises to ensure they can compete effectively in the global Halal market.
4. Facilitating job skills matching and skills upgrading: The strategy also focuses on aligning the skills of the Filipino workforce with the needs of the Halal industry. This includes providing training and education programs that are specifically designed to equip workers with the skills needed to thrive in this growing sector.

The Role of DTI and the Halal Taskforce

The Department of Trade and Industry (DTI) will lead a nine-agency intergovernmental task force responsible for crafting and implementing a detailed roadmap to achieve the strategy’s ambitious goals. This task force will include representatives from key government agencies such as the National Commission on Muslim Filipinos (NCMF), the Department of Agriculture (DA), Bangko Sentral ng Pilipinas (BSP), the Department of Tourism (DOT), the Department of Health (DOH), the Department of Science and Technology (DOST), the Department of Foreign Affairs (DFA), and the Mindanao Development Authority (MinDA). The inclusion of these agencies underscores the multifaceted nature of the Halal industry, which touches on various aspects of the economy, from agriculture and tourism to health and finance.

The task force’s primary objective is to create a conducive environment for Halal trade and investment by establishing clear guidelines, providing necessary infrastructure, and ensuring that Philippine Halal products and services meet international standards. This includes efforts to streamline the Halal certification process, which has been identified as a critical barrier to entry for many MSMEs. By simplifying and standardizing this process, the task force aims to make it easier for businesses to enter the Halal market and compete on a global scale.

Empowering MSMEs: A Key Component of the Strategy

A significant aspect of the Philippines National Halal Strategy is its focus on empowering MSMEs, which are crucial to the success of the country’s Halal industry. MSMEs are poised to benefit from a range of initiatives designed to support their growth and development. One of the key initiatives is a PHP 66 million partnership between the DTI and the Bangsamoro Autonomous Region in the Muslim Mindanao-Ministry of Trade, Investment, and Tourism (BARMM-MTIT). This collaboration aims to promote local Halal goods and services, foster social entrepreneurship, boost local tourism, provide entrepreneur training, and revive the country’s creative sector.

In addition to this partnership, the DTI is organizing a series of events and training programs to support MSMEs in their efforts to enter the Halal market. The Halal Convention Expo, scheduled for November, will provide a platform for MSMEs to showcase their products and services, while a Halal preparedness and certification training program will equip them with the knowledge and skills needed to obtain Halal certification. The DTI is also launching Invest Philippines Week, which will feature sessions focused on Halal industry development and provide MSMEs with the tools and resources they need to succeed.

Strengthening Global Partnerships for a Competitive Edge

As part of the Philippines National Halal Strategy, the country is actively seeking to strengthen its international partnerships. Bilateral talks with Malaysia, a leader in the global Halal industry, have already begun, and a landmark agreement with the United Arab Emirates (UAE) is on the horizon. These partnerships are focused on building capacity in key sectors such as the Halal industry, Islamic banking, and food security. By leveraging the expertise and resources of these countries, the Philippines aims to enhance its competitiveness in the global Halal market.

These partnerships are not just about trade; they are also about knowledge transfer and capacity building. By working closely with established Halal industry leaders, the Philippines can gain valuable insights into best practices, technological innovations, and market trends that can help it develop a world-class Halal industry. These efforts are expected to yield significant benefits, not only in terms of economic growth but also in terms of job creation and poverty reduction.

A Promising Future for the Philippines

With the Philippines National Halal Strategy, the country is poised to become a significant player in the global Halal market. The strategy’s success will not only contribute to the country’s economic growth but also create more job opportunities, improve food security, and enhance the quality of life for Filipinos. As the global demand for high-quality Halal products and services continues to grow, the Philippines is ready to meet this demand, positioning itself as a beacon of authenticity, quality, and tradition in the Asia-Pacific region.

This ambitious strategy is more than just a plan; it’s a commitment to harnessing the potential of the Halal market to drive economic growth and create a better future for all Filipinos. By focusing on empowering MSMEs, strengthening global partnerships, and ensuring that Philippine Halal products meet the highest international standards, the Philippines National Halal Strategy is set to elevate the country’s standing in the global economy and pave the way for long-term sustainable development.