The World Trade Center Metro Manila (WTCMM) has recently demonstrated a keen interest in shaping the halal industry within the Philippines and throughout the ASEAN region. Through its recent Business Broadcast forum, titled Innovating the Halal Ecosystem: Maximizing Opportunities and Adapting to Key Challenges in the Global Market, WTCMM explored crucial issues such as halal certification, standardization, and market potential, drawing key stakeholders from various sectors. As interest in halal products continues to grow on a global scale, this forum highlighted the Philippines’ positioning to tap into the opportunities within ASEAN and beyond.
The Global Halal Economy’s Growth
The halal economy is currently experiencing rapid growth. Forecasts suggest that the global halal market will surpass $2.3 trillion by 2024. This growth is being driven by the expanding Muslim population worldwide and an increasing interest in halal products among non-Muslims who value the ethical, hygienic, and sustainable practices often associated with halal-certified goods. Halal encompasses a broad spectrum of products, including food, pharmaceuticals, and cosmetics. According to the State of the Global Islamic Economy Report 2023, halal products are experiencing an average annual growth rate of 7%, with demand increasing in Europe, North America, and the Asia-Pacific region.
The Philippines’ Strategic Entry
For the Philippines, the growing global halal market represents an opportunity to strengthen its economy through export and tourism. Pamela D. Pascual, CEO of WTCMM, highlighted the Philippines’ potential to establish a sustainable halal ecosystem that not only meets domestic demand but also serves ASEAN and broader international markets. By creating a robust framework for halal certification that aligns with international standards, the Philippines could give Filipino businesses the credibility they need to access new markets, building on ASEAN’s goal to harmonize halal standards across member countries and foster seamless intra-regional trade.
At the forum, the Department of Trade and Industry (DTI) introduced its Halal Industry Development Program, spearheaded by Aleem Siddiqui Guiapal. The program focuses on educating local businesses on halal requirements and helping them achieve internationally recognized certifications. Guiapal emphasized that standardization in halal certification is a “stepping stone” for the Philippines to become a leader in this area. This initiative aligns with the ASEAN agenda to boost intra-regional trade by harmonizing standards, which could significantly ease trade barriers and foster growth in halal products across the region.
Addressing Halal Certification
One of the main challenges discussed at the WTCMM forum was the establishment of a unified halal certification system that could meet diverse international requirements. The global halal industry is fragmented, with varying certification requirements across countries due to differences in Islamic law interpretations and local practices. In response, the National Commission on Muslim Filipinos (NCMF) has been working with the DTI to create a cohesive and comprehensive halal standard in the Philippines.
Malaysia’s Ambassador to the Philippines, Dato’ Abdul Malik Melvin Castelino, stressed the role of certification in building trust among international consumers. Malaysia’s stringent halal certification process has allowed it to become a significant player in the global halal market, with halal exports growing by 63.8% in 2022 to $13.51 billion. Ambassador Castelino encouraged Philippine businesses to adopt a rigorous approach to halal certification, noting that consistency in standards could open new markets, particularly in regions with high demand for halal products, such as the Middle East.
The Scope of Halal Tourism
Beyond food, the concept of halal has expanded to include tourism and other lifestyle elements, positioning Muslim-friendly services as an essential aspect of the halal economy. Isabelle Biscocho, chief of staff for Halal Tourism and Muslim Concerns at the Department of Tourism (DOT), discussed the rising trend of Muslim-friendly tourism. According to the Global Muslim Travel Index, the Muslim travel market is anticipated to reach 230 million travelers by 2028, driven by growing connectivity and the increasing affluence of Muslim populations in emerging markets.
In line with this trend, the Philippines’ Department of Tourism has been working to make the country more welcoming to Muslim travelers by offering prayer spaces, halal-certified dining options, and culturally appropriate accommodations. Biscocho emphasized that fostering a welcoming environment for Muslim travelers could enhance the country’s tourism offerings for all visitors by promoting diversity and inclusivity. Such initiatives could position the Philippines as a leading Muslim-friendly destination within Southeast Asia, bolstering its tourism industry and differentiating it from other travel markets.
Benefits of The Global Halal Market
Entering the global halal market brings extensive economic benefits. According to data from the DTI, halal-certified products are among the most promising Philippine exports, with potential demand in neighboring countries like Indonesia, Malaysia, and across the ASEAN region. The Philippines has particular strengths in food production, cosmetics, and pharmaceuticals, all of which have significant markets within the halal economy. Additionally, emerging sectors such as halal-certified health supplements and eco-friendly halal cosmetics are becoming lucrative niches that the Philippines could capitalize on.
At the Business Broadcast forum, Ruby Bañares-Victorino, chairwoman of the Philippine Chamber of Commerce and Industry’s Halal Committee, emphasized the importance of partnerships between businesses, government bodies, and communities in establishing a robust halal economy. Bañares-Victorino noted that a successful halal ecosystem requires collaboration across sectors to ensure that all stages of production—from sourcing to packaging—adhere to halal standards.
Collaborative Efforts
The WTCMM Business Broadcast underscored the need for collaborative efforts within the halal industry. The Halal International Chamber of Commerce and Industries of the Philippines (HICCIP), led by its CEO, Ustadz Alexander Sultan, highlighted the importance of educational programs that raise awareness about halal certification and compliance. Sultan emphasized that “building a halal ecosystem requires commitment from all stakeholders to educate, train, and support one another.” The HICCIP is working on training initiatives that empower local businesses to better understand halal standards, thereby enhancing their competitive edge in the global market.
The Philippine Halal Market
The WTCMM Business Broadcast outlined several key areas for the Philippines to focus on as it seeks to establish a stronger foothold in the halal sector:
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Enhanced Training
To establish a sustainable halal industry, there is a pressing need for comprehensive training sessions. These programs will equip local businesses with the knowledge and skills necessary to comply with halal standards, increasing their appeal to international consumers and boosting their marketability. -
Export Relationships
Developing export partnerships with countries that have a high demand for halal products could open up new revenue streams for the Philippines. For instance, the DTI has been pursuing trade agreements with India, which has a growing demand for halal-certified products and shares favorable trade terms with ASEAN nations. -
Product Development
The development of unique halal products—particularly in cosmetics, pharmaceuticals, and health supplements—can help Filipino businesses stand out in the crowded global market. Products that cater to the ethical and health-conscious consumer offer an added value that aligns with current market trends. -
Government and Private Sector
By fostering partnerships between government agencies and the private sector, the Philippines can create an environment of shared resources and expertise, which is crucial for developing a resilient halal ecosystem. Joint initiatives could also streamline certification processes, making it easier for businesses to meet halal standards. -
Hosting Halal-Centric Events
Upcoming events like the Halal Expo Philippines, scheduled for November 2024, will further highlight the Philippines’ commitment to the halal market. Such events serve as platforms for Filipino businesses to showcase their halal offerings to an international audience, allowing them to connect with potential investors and expand their reach.
Philippines for Halal Market Success
The WTCMM Business Broadcast has illuminated the significant role that the halal market could play in the Philippine economy. As the country seeks to create a globally recognized halal ecosystem, collaboration between government bodies, private enterprises, and international organizations will be essential. With focused efforts on certification, tourism, and education, the Philippines is well-positioned to become a prominent player in the global halal economy, offering consumers high-quality, ethically produced products. As this potential continues to unfold, and with events like the upcoming Halal Expo Philippines, the country is on an upward path toward capturing a larger share of the global halal market.
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