Malaysia view

Malaysia sees itself in a strong position to be "the" global halal industry hub, with its established reference point as a centre for training, research and development, as well as standards.

Halal food is prepared, processed, transported and stored according to requirements of Islamic Law, which forbids the consumption of pigs and other animals, including food additives derived from them.

Currently, Chinese mainland and Hong Kong suppliers provide certain categories of goat meat and canned foods on an international basis, such as Wuyi Patern Import and Export Co, in Anhui Province. The company produces various canned products, including corned and stewed beef and luncheon meat, prepared and stored according to Islamic tradition.

Commentators see increasing demand for halal-prepared foods, accelerating with the Malaysian government's new policy, which will also address the access of funding for halal suppliers. This is seen as a sector in which Hong Kong institutions involved in trade finance are well placed to provide services.

Halal Industry Development Corporation (HDC) Managing Director and Chief Executive Officer, Dato' Seri Jamil Bidin, said that having taken the lead, Malaysia has moved aggressively to create the right industry environment.

"We started with the development of standards and we're moving into logistics, non-food products and are now way ahead of many countries in terms of the halal industry," he said.

Jamil said the Malaysian halal industry has the potential to contribute 5.8% of GDP by 2020, in line with the target set by HDC under its master plan for the industry.

He said the global economic downturn had caused HDC to prioritise its projects.

"This is a big industry we are pursuing and we also face stiff competition from some countries. However, we have the edge as we started moving aggressively in this industry way back in the 1980s," he added.

HDC was established in 2006 to co-ordinate the overall development of the halal industry with its focus being the development of standards, audit and certification, capacity building for halal products and services, and to facilitate the growth of Malaysian companies in the global halal market.

Malaysia External Trade Development Corporation (MATRADE) CEO, Dato' Noharuddin Nordin, said the country's second economic stimulus budget will also help in the development of the halal industry. "It addressed issues on the access of financing," he said.

Noharuddin said the US$1.3 billion working capital guarantee scheme to be established by the government, more funding will be available for small- and medium-sized enterprises (SMEs).

Deputy Prime Minister Datuk Seri Najib Tun Razak said in his budget address that SMEs could apply for loans under the scheme.