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HDC encourages SMEs to explore export potential of halal products globally

12/06/2020 08:11 PM

KUALA LUMPUR, June 12 -- Small and medium enterprises (SMEs) are encouraged to explore the export potential of halal products globally as the sector has high global value and is growing rapidly in Muslim and non-Muslim countries.

The Halal Development Corporation (HDC), in a statement today, said based on its data, the halal food and beverage (F&B) segment, which is the largest segment of Malaysia’s halal exports amounting to RM22 billion, increased by 10.4 per cent in 2019 compared to previously.

It said SMEs have the opportunity to tap into the global halal market which includes not only F&B products, but also other products such as pharmaceuticals, cosmetics, financial services, tourism, and fashion.

The HDC said there were more than 200,000 local SMEs involved in the production of halal products and it was important for these companies to obtain halal certificates to add value to their products domestically and globally.

In 2019, the value of exports of Malaysian halal products, which were well-known and well received internationally, was RM40.2 billion, with China being the largest export destination with export value of RM4.7 billion followed by Singapore, the US, Japan and Indonesia.

"In addition, the ASEAN region is one of Malaysia's leading halal export markets with a combined RM12 billion worth of halal exports in 2019," he said.

Meanwhile, Deputy International Trade and Industry Minister Datuk Lim Ban Hong said the global halal market offered a great opportunity for local SMEs, especially in the exports of food products, as the Malaysian halal certificates were well known and highly reputable worldwide.

"I would like to encourage more local SMEs to continue to tap into the growing halal export market and leverage the nationally recognised Malaysian halal certification to market their products globally," he said when visiting a factory owned by Kawan Food Bhd at the Selangor Halal Hub, Pulau Indah yesterday.

The visit was aimed at reviewing the factory’s compliance with the Standard Operating Procedure (SOP) under the Recovery Movement Control Order (RMCO), and to learn more about global supply chain disruption and the industry's approach to doing business under the new norm.

Kawan Food is a leading Malaysian manufacturer and exporter of halal food products such as frozen capati, popiah and buns.

So far the company has exported its products to 42 international markets and export activities accounted for 60 per cent of its revenue last year.






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