The minister highlighted the opportunities to be seized, stating that the growing number of non-Muslim halal consumers globally is expected to drive the halal industry.
“This growth is expected to encompass various 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,” he said.
He said this is because the global Islamic economy holds immense growth potential, particularly within the global halal market, predicted to reach US$9.71 trillion (RM45.58 trillion) by 2025.
Tengku Zafrul added that the halal industry has become one of the most competitive and fast-moving sectors globally, with Islamic financial assets poised to follow suit.
He said the global Islamic financial assets expanded by 163% over the past decade, from US$1.71 trillion (RM8.02 trillion) in 2012 to US$4.51 trillion (RM21.17 trillion) in 2022.
Tengku Zafrul said this is attributed to strong balance sheets, high earnings, regulatory support, and sustained demand from customers and investors worldwide.
“Therefore, it is no surprise that many countries are now focusing on the halal industry.
“Many businesses are 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% of the world’s population,” he said in a special address at the Global Forum on Islamic Economics and Finance (GFIEF) here today.
He said to stay competitive, the nation needs more innovation, a unified market, increased investments through ease-of-doing-business, reduced bureaucracy, and a smoother investor journey.
Tengku Zafrul said the government’s decision to empower the Malaysian Investment Development Authority (Mida) as the central investment promotion agency will ensure more efficient, orderly, and focused promotional activities.
He said Miti is also redefining the role of 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.