PETALING JAYA: The buoyant global halal market is worth around US$3 trillion (RM13.3 trillion) currently and is estimated to hit US$5 trillion (RM22.1 trillion) by 2030.
Driving the market will be Islamic financial, food and beverage (F&B), pharmaceuticals, cosmetics and personal care, fashion, logistics, tourism and recreation sectors.
According to Halal Development Corporation (HDC) chief executive officer Hairol Arffein Sahari, the US$5 trillion estimate is just a conservative target.
He said the halal market could reach US$30 trillion (RM132.6 trillion), taking into consideration Muslim and non-Muslim consumers.
Hairol said halal food has gained popularity among Muslim and non-Muslim consumers in recent years as it has developed from being an identification mark of religious observance to assurance of safety, hygiene and reliability.
He said the halal market in Malaysia alone could expand to more than RM450 billion by 2030.
The halal industry amounted to 7.4 per cent of gross domestic product (GDP) in 2022 and is expected to grow to 10.8 per cent of GDP by 2030, while the direct investment (cumulative) was at RM16.7 billion in 2022 and is expected to increase to RM25 billion by 2030.
The halal industry is expected to create 690,000 employment opportunities by 2030.
According to Hairol, the local halal market has around 200,000 enterprises, but only 8,000 have halal certification.
"There are less than 2,000 exporters, and they made up most of the RM59.46 billion achieved last year in the US$3 trillion (RM13.3 trillion) market," he told the New Straits Times.
In terms of sectoral contribution, F&B continued to be the main contributor to the Malaysian halal economy with RM27.84 billion in total export value, representing 46.8 per cent of total halal exports. This was an increase of 57.8 per cent from 2021.
The second largest contributor was halal ingredients, which also recorded a significant increase of 73.1 per cent from 2021 to RM23.35 billion, or 39.3 per cent of total halal exports.
The cosmetics and personal care sector remained the third largest contributor with RM3.49 billion in total halal export value, an increase of 43.5 per cent compared to the previous year.
Palm oil derivatives grew 63.6 per cent from 2021 to RM2.79 billion, representing 4.7 per cent of halal exports.
Industrial chemicals increased 69.7 per cent from 2021 to RM1.27 billion, while pharmaceuticals recorded the highest growth with a 156.7 per cent increase from 2021, contributing RM0.72 billion, or 1.2 per cent of total halal exports.
"Despite the challenges in the global economy, this is a testament to the growing demand for halal products globally and reflects the importance of the halal industry in Malaysia's economy.
"Malaysia is gaining popularity for its halal certification and logo. It is the best in the world. We are recognised by 84 halal certification agencies in 46 countries. If we can grow that to 100 countries, Malaysian companies have more options to trade their products and enter a wider global halal market space.
"Our readiness in the halal market is very good. The challenge is whether we can export the right product to the right country at the right timing," he said.
MEETING SUPPLY AND DEMAND GAP IN THE GLOBAL HALAL MARKET
Hairol said HDC is developing a strategy to discover other key business areas that may contribute to the local halal market, such as Islamic banking, healthcare and fashion.
Other areas of interest for the corporation include alternative ingredients, substitutes, oils and fats, and medical devices such as bone/skin graft, surgical mesh and prosthetics.
"There are many Malaysian companies involved in these segments, and we can leverage that to expand. We expect Malaysia's halal market to continue to expand. There is about an 80 per cent supply and demand imbalance between the current global market value and the predicted value in 2030 (US$30 trillion or RM132.6 trillion).
"We intend to increase collaboration and cooperation not only within the country, but also between Malaysia and the rest of the world, to fill the gap. We would like to see increased government-to-government cooperation with our neighbours and other countries around the world.
"We want to make it a mainstream agenda," he said.
HALAL INDUSTRY MASTER PLAN 2030 TO DRIVE THE LOCAL HALAL MARKET
Malaysia is expected to continue its leadership position in the global halal market, Hairol said.
In this regard, HDC launched the Halal Industry Master Plan 2030 (HIMP 2030), the country's blueprint to make Malaysia the undisputed global leader in the halal industry.
The master plan was launched on March 23 by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
Hairol said HIMP 2030 would be a game changer for the local halal sector, where multinational corporations (MNCs) made up 80 per cent of the RM59.46 billion export in 2022.
"Twenty per cent of the total 2,000 certified halal exporters in Malaysia are MNCs, and they contributed to 80 per cent of halal exports last year. Eighty per cent are Malaysian firms, yet they only contributed 20 per cent to the halal exports.
"We expect that through HIMP 2030, we will be able to reverse this trend. We hope to have more homegrown halal champions. We have incorporated digitalisation in the master plan. Digitalisation plays a big part in the growth. Today we can trace and track the products and that has really moved the industry," he said.
HIMP 2030 has identified 23 initiatives to underpin seven strategic thrusts, capitalise on opportunities and solve problems.
These seven strategic thrusts are enhancing halal-friendly policies and legislation; creating new and bigger market for Malaysia's halal products and services; establishing a larger pool of halal experts and professionals to meet global needs; enhancing the quality and integrated infrastructure development; fostering thought leadership; producing more home-grown halal champions; and, facilitating more competitive Bumiputera participation in the halal industry.
HIMP 2030 will be guided by five major outcomes: establishing a healthy and diverse domestic halal industry; providing end-to-end syariah compliance; improving the ease of doing business in Malaysia; having a competitive business ecosystem; and, promoting "Halal Malaysia" globally.
The International Trade and Industry Ministry will be the strategic driver for HIMP 2030, supported by HDC.