In an interview with FMT, Invest Selangor CEO Hasan Azhari Idris said the manufacturing of food and beverages was already very established in the state.
“When we talk about manufacturing in Selangor, most people think of factories which make electrical and electronic equipment or components.
“Actually, Selangor is home to many food and beverage manufacturing companies who are in the business of food processing and manufacturing.”
Hasan said for decades, many large companies had been producing food and beverage products for both the domestic and international market, contributing to the state’s continued growth.
In fact, food and beverage manufacturing is the fifth largest industry in Selangor, with over RM13 billion invested in the sector over the years and employment created for over 33,000 people, Hasan said.
“Now, Selangor has set its sights on becoming a world trading hub, and the food and beverage manufacturing sector is an important part of this, especially with the growth of the halal industry on the global stage.
“So what we have is a huge demand for halal-certified food and beverages. In fact, last year Malaysia exported RM42 billion in halal products. We see this trend going one way, and that’s upwards.”
Hasan said this was why Invest Selangor was eager to tap into the needs of the increasing demand for halal-certified food production.
Naturally, he said there would be challenges, particularly regarding the high dependency on foreign technological machinery and knowledge in food production as well as the reliance on low-skilled foreign labour and raw materials.
“The reality is that even though food production is big here, other countries have perhaps more experience and access to raw materials which can’t be sourced in great quantities locally, including dairy, cereal, wheat or poultry.
“Other countries which are big on food and beverage manufacturing produce these raw materials on a large scale.”
But, Hasan said, Selangor too had its advantages with its strategic location along the Melaka Straits and well developed infrastructure including Port Klang, which is among the top 12 biggest ports in the world.
He said Selangor also had a huge talent pool and was home to numerous institutions of higher learning, which attracted the best students from the country and region.
Hasan said a recent study conducted by Monash University had proposed that a food cluster be built around local and traditional food, tourism and core competencies such as the halal, education and food sectors to further develop the food and beverage manufacturing industry.
“This is actually in line with what we’re doing through Halal International Selangor.
“So aside from food and beverage manufacturers, Invest Selangor is also looking to attract those from the tourism sectors as well as to further develop our promotional capabilities and export infrastructure and facilities.”
Hasan said Selangor was also studying additional financial assistance initiatives and incentives to increase competitiveness and create new opportunities.
For the coming years, Selangor’s main driver for the halal-certified food sector will be the 700-acre halal hub in Pulau Indah, which aims to create a suitable ecosystem for industry players.
“Invest Selangor will continue to build on the strengths of the state in making sure we fully tap the potential of the halal-certified food and beverage manufacturing industry.
“These are exciting times for Selangor, and we will be working hard to draw investments to the state, which is our bread and butter, and also to develop the growth of the industry in the interest of Selangor and its people.”
He added that the upcoming Selangor International Business Summit (SIBS 2017) will play a vital role in showcasing Selangor’s food and beverage industry to the world.
The 10-day SIBS 2017, which will run from September 7 to 17, will include the Selangor Smart City & Future Commerce Convention 2017, the Selangor-Asean Business Conference and the Selangor International Expo 2017.