HDC Studies New Incentives To Boost Foreign Investments In Halal Industry

KUALA LUMPUR, Sept 18 (Bernama) -- The Halal Development Corporation (HDC), in collaboration with the Ministry of Investment, Trade and Industry (MITI) and the Malaysian Investment Development Authority (MIDA), is studying and formulating new incentives to boost foreign investment in the halal industry.

HDC chairman Khairul Azwan Harun said the incentives, to be finalised by the Halal Industry Development Council this year, aimed not only to attract foreign investment but also to boost domestic investment in existing and upcoming halal industrial parks.

"We want to provide new halal industrial parks with infrastructure that is conducive to both foreign and local investors, including by incorporating the use of renewable energy (RE)," he told reporters here today

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Khairul Azwan noted that many companies, particularly multinational corporations (MNCs), are keen to meet environmental, social, and governance (ESG) requirements, driving the need for factories to adopt RE.

Touching on the challenges in the new framework under study with MITI and MIDA, he said one key issue is ensuring the readiness of the infrastructure in these new parks to offer added value to investors.

He said foreign investors and MNCs are also concerned about the availability of raw materials in Malaysia.

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“If they want to manufacture a product but need to import raw materials from their home country, such as China, costs will rise due to the need to transport those materials to Malaysia.

“The ideal approach is to encourage foreign investors, especially from China, to establish raw material factories in Malaysia,” he said.

Previously, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi has stressed the importance of establishing raw material production in Malaysia to reduce reliance on imports.

Khairul Azwan noted that the new incentives will also support halal industrial park operators in upgrading infrastructure, including RE solutions, to maintain competitiveness.

"The incentives will cover green technology infrastructure, financial support, tax incentives and infrastructure development to attract local and international businesses," he said.

Regarding raw materials, Khairul Azwan added that HDC will continue focusing on increasing the production of palm-based ingredients and derivatives, which can be used in the food, beverage, pharmaceutical, and cosmeceutical sectors.

-- BERNAMA