Global Islamic Economy Holds Immense Growth Potential -- Tengku Zafrul

KUALA LUMPUR, May 28 (Bernama) -- The global Islamic economy holds immense potential for growth and the global halal market is predicted to reach US$9.71 trillion by 2025, with nations like Malaysia expected to lead the pack in the coming years. (US$1=RM4.69)

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the halal industry has become one of the most competitive and fast-moving sectors in the world and so, too, will Islamic financial assets.

“In fact, global Islamic financial assets expanded by 163 per cent over the past decade, from US$1.71 trillion in 2012 to US$4.51 trillion in 2022. This is attributed to strong balance sheets, high earnings, regulatory support, and sustained demand from customers and investors worldwide.

“Therefore, it does not come as a surprise that many countries are now focusing on the halal industry, with many businesses looking to invest in halal-related products, driving innovation and creating solutions for their ‘target share’ of the 1.9-billion Muslims globally, which is almost 25 per cent of the world’s population,” he said in a special address at the Global Forum on Islamic Economics and Finance (GFIEF) here today.

To serve the fast growing and increasingly demanding halal sector, technology is a key factor in ensuring the progress of most halal industry developments moving forward, the minister said.

On the opportunities to be capitalised on, he said the growing number of non-Muslim halal consumers globally will see the halal industry grow exponentially, covering a wide range of sectors, including food and beverages, personal care products, pharmaceuticals, services, and business operations.

“Another opportunity where we see Malaysia’s halal industry should be heading is the use of technology, to ensure the integrity of the whole halal supply chain ecosystem, which includes procurement, certification and logistics.

“My third point is on facilitating halal trade and services. On this, the Malaysia International Halal Showcase organised by the Malaysia External Trade Development Corporation (MATRADE) serves as a key platform for showcasing Malaysian brands.

“The fourth point is on talent. In 2022 Malaysia boasts 20,000 halal-certified talents,” he shared.

To stay competitive and achieve its ambitious goals, the nation needs more innovation, a unified market, increased investments through ease-of-doing-business, reduced bureaucracy and smoother investor journey, he said.

To that end, Tengku Zafrul said, the government's decision to empower the Malaysian Investment Development Authority (MIDA) as the central investment promotion agency will ensure a more efficient, orderly, and focused promotional activities.

He said the Ministry of Trade and Industry (MITI) is also redefining the role of the Halal Development Corporation (HDC) to eliminate redundancies and sharpen the focus of halal industry promotion within the MITI ecosystem.

“MITI had requested MIDA to have a new category for foreign direct investment and domestic direct investment, which is the halal category. MIDA will spearhead overall investment promotions including halal, while HDC drives growth in the halal industrial ecosystem.

“HDC will craft strategies for fully halal and shariah-compliant value chains, branching out into new sectors like pharmaceuticals, cosmetics, personal care, logistics, hospitality services, and medical devices to cater to the modern economy,” he added.

-- BERNAMA