Kuala Lumpur – The 11th World Halal Conference (WHC) 2019 commenced today, facilitating discussions on the ever-growing need for the industry to reflect on its existing strengths; and to build new capabilities to create new engines of growth within the industry. WHC 2019 will highlight the various growth opportunities in the halal market and the need to continuously reinvent; re-energise; and re-anchor the industry.
The State of the Global Islamic Economy Report 2018/19 estimates that Muslims spent US$2.1 trillion across the food, beverage and lifestyle sectors in 2017, and forecasts spending to reach US$3 trillion by 2023. By category, food and beverage leads Muslim spend at US$1.3 trillion, followed by fashion at US$270 billion, media and recreation at US$209 billion, travel at US$177 billion, pharmaceuticals at US$87 billion and cosmetics at US$61 billion.
The halal economy has proven its ability to keep pace with the latest developments in technology and investment. Companies are adopting blockchain for payments to ensure halal compliance, and track food, cosmetics and pharmaceutical products from the manufacturing facility to the retailer. Meanwhile, artificial intelligence (AI), virtual reality (VR) and the internet of things (IoT) are today attracting more investments than ever before.
With Muslim spend on food and beverages forecast to reach US$1.9 trillion by 2023 and regulatory oversight of halal food production steadily improving, there are significant opportunities for investment and the establishment of global halal food brands. More companies are active in halal food than in any other sector of the Islamic economy. The product offering is expanding proportionately with the rising number of halal-certified ingredients, and companies are diversifying their portfolios to cater to increasingly sophisticated tastes.
This is evident with the Exchange of Memorandum of Agreement (MoA) between the Halal Industry Development Corporation (HDC) and F&N Beverages Manufacturing Sdn Bhd for the Halal Sourcing Partnership Program during WHC 2019. The program aims to internationalise Small and Medium Enterprises (SMEs) in the halal industry through collaboration with large Malaysian companies as well as multinationals. HDC was represented by its Industry Development Vice President, Hanisofian Alias and F&N Beverages Manufacturing was represented by its Head of Halal Affair, Mr Akhtar Husseini Mohd Nor.
Dr. Khalid Abdul Hamid, Director of Service Industry Section, Ministry of Economic Affairs who witnessed the MoA Exchange emphasised, “We hope such initiative will increase the involvement of local companies as suppliers to multinational corporations (MNC) and large local companies (LLC) and thus creating bigger market space for them. I strongly urge more MNCs and LLC to come on board and be part of this initiative.”
Halal industry has contributed significantly to the economic growth since 1974. The industry is contributing to 7.5% of GDP in 2017 and expected to achieve 8.7% in 2020. Export amounted slightly over RM40 billion from the expectation of RM50 billion in 2020. Malaysia halal export is mainly contributed by food and beverages, halal ingredients and palm oil derivatives.
“The Government of Malaysia under the premiership of the Honourable Prime Minister, Tun Dr. Mahathir Mohamad during Invest Malaysia Conference 2019 recently, has outlined macro strategies in order to strengthen the resilient of the Malaysia economy. These strategies can only be realised, among others, through driving productivity and promoting quality investment. In this regards, the World Halal Conference 2019 is offering opportunities in investment through cooperation and further collaboration in halal economy.” said Hanisofian Alias from HDC.
Dr. Khalid also presented the Halal Excellence Awards to honour and recognize organisations that have demonstrated exceptional contributions and achievements for the development of the overall Halal industry and to showcase real inspiring role models for other businesses to follow.
Duopharma Biotech Berhad was awarded the Halal Brand Excellence Award (HBA) in honour of their high-profile brand and trademark built throughout the halal industry, creative excellence and consistency in promoting international acceptance and recognition while upholding halal integrity along the way.
The coveted Halal Science Research Award (HSRA) was presented to UKM UNIPEQ in acknowledgement for their efforts and commitment in innovative halal research and development; and the revolutionary ideas in uplifting halal through science and technology.al research and development; and the revolutionary ideas in uplifting halal through science and technology.
Kumpulan Ramly was awarded Halal Excellence for Malaysian Company to celebrate fast growth halal champion in the acknowledgement of innovative business processes, product development, enterprise, sustainability, leadership, and overall business success in penetrating halal market globally.
HDC Halal Performance State Excellence Award was granted to the State of Selangor for its outstanding initiatives which have helped achieving higher levels of consumers’ awareness and encouraged organisations and companies venturing into halal industry.
Meanwhile, McDonald’s Malaysia received the HDC Halal CSR Excellence Award in acknowledgement for its excellence of service, halal commitment to its customers, upholding ethical behaviour and environmental sustainability.
The Halal Excellence Awards’ goals are to accelerate innovation, excellence and a positive change in the global halal economy particularly to the Malaysian champions by recognizing best-in-class products, companies and individuals.