Version 2 (8.11.

2017)

Halal Industry Seminar 2017 – Surabaya, Indonesia

Halal Industry Development

10 November 2017 Copyright HDC 2014

Presentation by:
Hairol Ariffein Sahari
VP, Halal Industry Development Corporation
Presentation outline

Halal Industry Overview

“Halal as a new source of Malaysia’s Experience

economic growth”

Conclusion

Economic Planning Unit

Prime Minister’s Department
2009

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Overview of Islamic Economy

Halal Industry

Islamic Finance &

Zakat & Waqaf Islamic Economy
Banking

Islamic Mortgage i.e.

Ar-Rahnu

Legend:

The focus for this presentation 3

 Halal from integrity management and industry development perspective

Industry Development Perspective determines the areas where

halal can contribute to the socio-economy of a country. Industry
development plays a significant part in transforming halal into a
source of economic growth. This is where activities like halal
production, manufacturing, services, infrastructure development,
industry policies, researches and industry talent development are
symbiotically linked together forming a halal ecosystem. A
sustainable halal ecosystem will ensure the continuous growth of
the halal sector in the long run.

Integrity Management Perspective is the

aspects within the Islamic law that governs
halal. This is supported by the Islamic
knowledge disseminated by the shariah
experts or scholars based on the Al-Quran
and Hadiths. With regards to products and
services for consumers, the certification
process and the Halal Logo are the
assurance steps so as to ensure that they
are halal and thoyyib.

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Halal is diverse - halal is not just confined to food

USD 1.8 trillion

USD 100
billion
Cosmetic &
Personal Care Islamic
Financing

Takaful Lifestyle
Services
Logistic
USD 20 billion
Services
Healthcare
Services
Ingredients
More
Food & …
Beverages
Hospitality
Services

USD 2.3 trillion

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Halal industry’s key driver 1: Increasing demand by Muslim worldwide

• Global Muslim population is 1.8 billion (23% of the total population); and
• Estimated to reach 27% of total population by 2030

Global
1,800 million

Emergence of new markets:

Asia
ASEAN
1,000 million Estimated Muslim
Country
230 million Population (mil)
Indonesia 204.6
Pakistan 178.1
Malaysia
India 177.3
17 million Bangladesh 148.1
China 40.0

Muslim Populations 2015

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Halal industry’s key driver 2: Global supply and demand gap

Demand Main Sources of Supply Export

(Estimated USD)

Main Players Products

10 billion
Australia Beef
1.8 bil Muslim New Zealand Lamb 3 billion
Value USD 680 bil
Brazil Poultry 9 billion
Halal food Malaysia Processed Food,
10 billion
Ingredients, Non-food
Thailand Processed Food 6 billion

Source: HDC analysis

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Due to the potential - the global interest on halal is getting stronger

Japan
UAE
(Tokyo Olympic 2020)
(Center of Islamic Economy)

China
Saudi Arabia
(OBOR)
(Vision 2030)
Mexico Thailand

(Kitchen of the World)

Brazil Indonesia

Peru
Australia
South Africa

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Evolution of Malaysia’s Halal Industry

1974 Halal Certification was introduced by JAKIM

1994 Halal Logo and Cerfificate were introduced by JAKIM

2006 HDC was established

2008 Halal Industry Master Plan (2008-2020) endorsed by the Cabinet

2014 Halal as one of the focus areas in the 11th Malaysia Plan

2015 HDC’s role as the ‘Focal Point’ for matters regarding Halal industry
development was endorsed by the cabinet

Malaysia Halal Council was established – HDC, JAKIM and

2016 Standards Malaysia as Joint Secretariat

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Halal industry development in Malaysia ia a national agenda

3rd Industry Masterplan 9th Malaysia Plan’s 11th Malaysia Plan

(2006 – 2020) Mid Term Review (2016 – 2020)
(2008 – 2010)

Chapter 21: Chapter 3: Chapter 8:

Halal Industry Development
4 key focus areas; production and
distribution, services, standards and
R&D in Halal
Way Forward (2008 – 2010); Accelerate
New Source of Economic Growth:
“Halal Industry Masterplan as reference”
“Halal Malaysia certification to be
continuously promoted as globally
acknowledged standard”
Re-engineering Economic Growth to
Increase Well Being;
Focus Area A5:
Increase the Growth of Modern Services
Subsector – Halal Industry

Halal Industry Masterplan

(2008 – 2020)

Malaysia as global halal hub:

HIMP • Centre of innovation, trade and investment

(2008 – 2020)
• Global Reference Centre
• Focus is on promoted sectors i.e. Processed Food, Ingredients,
Cosmetics and Personal Care

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A sustainable halal industry ecosystem

A sustainable halal industry ecosystem consists of various halal sectors that co-exist and are supported by proper policy, legislation, halal
integrity management and industry development mechanisms in linking the government, industry players and consumers together.

Government Support

• Dedicated industrial development agency • Governing institutions e.g. High Level Council
• Dedicated integrity management agency • Fiscal and non-fiscal incentive

Human Capital Development Production, Manufacturing and

Services
• Training programs for students,
industrial workers and • Agricultural produces;
professionals; • Food and non-food products
• Modules and syllabus development; manufacturing;
• Accreditation centers. • Supporting services e.g. logistics,
financing, takaful, healthcare,
Halal Industry hospitality etc.
Ecosystem

Reference Centre Infrastructure

• Advisory and consultancy services; • Dedicated industrial areas;

• Datawarehouse and market • Dedicated collection and
intelligence; distribution facilities;
• Knowledge dissemination tools. • Dedicated testing and research
facilities.

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Development phases and macro-economic achievements thus far

Timeline Mission
2017

Malaysia as a
Global Halal Hub

Performance Indicators Current Achievement 2020 Target

Contribution to the Country’s GDP 7.5% 8.7%
Halal export RM42 billion RM50 billion
Exporting halal SMEs 1,257 1,600
Employment 248,508 330,000
Investment into Halal Parks RM11.9 billion RM15 billion

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HDC as the “focal point” agency for halal industry development matters

The Cabinet during its meeting on October 30,

2015 has agreed that the role of HDC as a
'focal point’ agency for matters related to the
development of the halal industry to be
strengthened

Main responsibilities:

Plan Implement Control and Monitor Report

Formulate strategies Implement key programs Ensure deliverables Report to stakeholders

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Malaysia Halal Council (est. 2016)

Chairman
Deputy Prime Minister of Malaysia

Joint-Secretariat
HDC JAKIM Standards Malaysia
Responsible for Responsible for Responsible for
Industry Halal Certification Halal Standards Dev
Development and Accreditation

The Council announced 2 major

Minister of Minister in the Prime initiatives to bring Malaysia’s halal
Minister of Finance International Trade & Minister’s Office industry to the next level:
Industry (Religious Affair)

1 National Halal Policy

Minister in the Prime Minister of Science, Minister of Domestic
Minister’s Office Technology & Trade, Cooperation
(Economic Affair) Innovation & Consumerism
2 Halal Industry Master Plan 2.0

Minister of Minister of
Agriculture & Agro- Minister of Health Education
Based Industry

Minister of Human Minister of Urban Chief Secretary

Resource Wellbeing, Housing General
& Local Government

Chairman of States
Attorney General Islamic Councils

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Islamic Finance model in Malaysia

Education

Regulatory & Supervisory Regulatory & Supervisory

(Overall) (Companies)

Islamic Finance Model

Talent Development Marketplace International Standard

Setting

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Conclusion

1. Halal industry is a significant contributor to the economy. It encourages investment, increases export,
creates employment and enhances talent development;

2. This is one industry that Malaysia has competitive advantages compared to other industries due to it 40
over years of experience and knowledge; and

3. From economic perspective, the industry is not about selling logo or certificate. It is about selling the real
products and services.

Q&A

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