Malaysia continues to lead global Islamic economy indicator for seventh year

KUALA LUMPUR: Malaysia continues to lead the Global Islamic Economy Indicator (GIEI) for the seventh year in a row due to a robust halal economic ecosystem as the country enjoys a substantial lead in the Islamic finance and halal food sectors.

Halal Development Corporation (HDC) chairman Datuk Mahmud Abbas said Malaysia has reaffirmed its position as the leading global halal hub in 2020 with an annual export value of RM31 billion for halal products and at the same time attracted investments worth RM0.6 billion in the Malaysia Halal Park.

"To date, a total of 28,000 jobs have been created via this endeavour.

"Malaysia has 6,727 companies with halal certification, of which 1,507 are exporters and over 1,300 are small and medium enterprises (SMEs)," he said in his welcoming remarks at the inaugural Securities Commission Malaysia-HDC Forum on Shariah-Compliant Fundraising for micro SMEs held virtually today.

Mahmud said Malaysia also has 1.3 million businesses, of which 90 per cent are categorised as SMEs, including 200,000 involved in halal-related businesses.

"Indeed, there is a huge potential for the halal industry to grow even further.

"Northeast Asian markets like Japan, China and South Korea are already jumping on the bandwagon and opening up their markets for Muslim capital and Muslim-friendly tourism," he added.

He said the lockdowns across nations have raised questions about the need for self-sufficiency in certain critical products that cuts across pharmaceuticals, medical devices and food.

The halal food industry alone is worth US$1.6 trillion, while both the halal cosmetics and pharmaceutical industries are valued at US$39 billion and US$97 billion, respectively.

By 2030, the global halal food and drink sector is estimated to be worth as much as US$2.1 trillion.

"Hence, there are opportunities in these halal industries not only in terms of business, but more importantly the ability to cater to the sufficiency of a nation," he said.

-- BERNAMA