PETALING JAYA – The past year has been both unprecedented and extraordinary, and despite the wide-spread devastation caused by the global pandemic, several notable achievements were recorded from the overall performance of the Malaysian halal industry in 2020, as revealed by Halal Development Corporation Berhad (HDC) today (March 23).
“Malaysia recorded an increase of RM0.2 billion (or 1.25%) in domestic direct investment into Malaysian halal parks in 2020, signaling that the local halal industry is still growing, despite the many ongoing challenges.
“To date, Malaysian halal parks have attracted a cumulative total of RM16.1 billion in investments since 2011. Of this, RM9.5 billion (or 59%) is foreign direct investment (FDI) while RM6.6 billion (or 41%) is domestic direct investment (DDI).
“A total of 295 companies are currently in operation throughout the 21 halal parks across Malaysia, with 42 companies (or 14.3%) being multinational corporations (MNCs), while 253 companies (or 85.7%) are locally-owned corporations,” said HDC.
At the global arena, Malaysia once again emerged highest in the annual Global Islamic Economy Indicator (GIEI) for year 2020/21, its eighth year in a row, when it came out tops in four out of six categories, including for Halal Food, Islamic Finance, Muslim Friendly Travel, and Pharmaceutical & Cosmetics sectors.
Based on HDC’s proprietary data sources and analysis for 2020, in terms of bilateral trade, Singapore emerged as Malaysia’s biggest importer of halal products in 2020. With a total export value of RM4.10 billion, the city-state relegated China’s RM3.44 billion to second spot, while the United States of America came in third with RM1.74 billion.
“Two other Malaysia’s neighbors, Thailand (RM1.48 billion) and Indonesia (RM1.34 billion), both came in fourth and fifth respectively, and was able to somewhat cushion the full economic impact from the border closures, which saw Malaysian halal exports contracting approximately RM10 billion in total, reduced from RM40.2 billion in 2019 to just RM30.5 billion for the whole of 2020.
“The reduced of halal export value also corresponds to the 19% reduction in the number of Malaysian halal exporters, from 1,876 in 2019 to 1,507 in 2020. Aside from the movement control orders (MCO), this drop also corresponds to the timeline of system upgrade for halal certification process, in order to facilitate online renewals and virtual submissions of supporting documents,” it said.
In terms of sectoral contribution, Halal Food & Beverages continues to be the main contributor to Malaysian halal economy with RM17.40 billion in total value, followed by Halal Ingredients (RM8.83 billion), Cosmetics & Personal Care (RM2.67 billion), Palm Oil Derivatives (RM0.89 billion), Industrial Chemicals (RM0.47 billion) and Halal Pharmaceuticals (RM0.30 billion) in second to sixth respectively.
As an agency under the Ministry of Trade and Industries (MITI), Hairol Ariffein Sahari, HDC’s chief executive officer said it will strive to fulfill its main mission to facilitate the onboarding of industry players into the halal economy, as well as to increase Malaysia’s total halal exports and total direct investments into Malaysian halal parks.
“Several initiatives have been lined up for this purpose, including the introduction of the HDC’s commercial units Halal Parks, Halal Integrated Platform (HIP), Halal Training Institute and Halal Consultancy & Advisory to attract at least 50,000 Small and Medium Enterprise (SME) companies to come onboard into the industry,” he added.
In terms of industry talent and experts, HDC has trained 2,337 personnel in Halal management training programmes in 2020 and making it a total of more than 60,000 personnel trained since 2011.