KUALA LUMPUR: A new online marketplace called Halal Integrated Platform (HIP), under the Halal Industry Development Corporation (HDC), is set to drive the growth of the halal industry in Malaysia.
HDC chief executive officer Hairol Ariffein Sahari said the initiative would encourage industry players to compete productively and innovatively in facing the global challenges.
Hairol said with its official launch expected in December, HDC aims to have about 5,000 companies in HIP initially with about 20 partners comprising government agencies and service providers such as banks, insurers and logistics players.
"The domestic market has the potential to further tap the US$3 trillion global halal market with the rising demand for halal products among non-Muslim consumers.
"And for the domestic players to go global, HDC's HIP will be the main catalyst to drive halal exports. This online marketplace will facilitate companies looking to grow their business capability and capacity backed by the halal certification," Hairol told the New Straits Times.
Domestic market for halal products is worth US$70 billion and is expected to reach US$150 billion by 2030.
Malaysia had a trade deficit in halal products as the country's imports stood at US$25 billion, compared with exports of US$10 billion.
Hairol said HDC wanted to increase the number of halal-certified companies in Malaysia by giving them access and capacity to become export-ready SMEs.
"Looking at our halal ecosystem, the certification and standards are already there. But what about the capability of our companies? About 98 per cent of them are SMEs and they need mentoring, money and markets.
"With proper consultation services, HDC is positive that halal certification can be obtained by these SMEs within 30 working days, " he said.
He said Malaysia's halal standard was the most recognised in the world because it was stringent and comprehensive.
However, having the best ecosystem and standard do not guarantee Malaysian halal exporters high global demand for their products.
There were other aspects to successfully penetrating the global market than just having a product certified halal, said Hairol.
"SMEs need to understand all the elements of marketing, from branding, distribution channels and messaging to communications strategy. Having your products certified halal does not mean you can sell them in the global market.
"As the country's halal development agency, HDC is at the forefront of promoting Malaysian-made products in the international market through various platforms and our network set up overseas.
"What may have been difficult for the local products to be marketed to the mass in the past, has now changed dramatically with HIP, showcasing that HDC is paving the way for halal players into the New World Economy," he said.
Meanwhile, he said HIP bodes well for the World Halal Conference 2020 (WHC2020) objective of the halal community driving the New World Economy.
The annual World Halal Conference is renowned as a platform for international networking between government heads, scholars, entrepreneurs and industry leaders to explore the opportunities and challenges relating to the halal economy, setting the direction for the halal industry moving forward.
Hairol said WHC2020 would be a hybrid virtual conference.
"Travel restrictions globally have made coming to the venue impossible; thus, a virtual platform will allow us to proceed with the conference to include our global partners, delegates and participants.
"We expects about 300 invited delegates at WHC2020 in accordance with the standard operating procedure imposed by the government and about 1,500 virtual delegates," he said.
On the international collaboration, Hairol said HDC played an important role to develop more collaboration with other countries to spearhead the development of Malaysia's halal economy.
He said the agency had taken steps to work with countries such as Japan, Taiwan and South Korea to recognise Muslim-friendly supermarkets to create a wider market for Malaysian halal products.
The joint venture was also targeted at China, Vietnam and Indonesia in the next five years, added Hairol.