Halal economy is new source of growth, says PM

PUTRAJAYA: The halal economy can become a strong contributor to the global economic recovery process post-Covid-19 pandemic by venturing into new sources of growth and enhancing trade ties, said Datuk Seri Ismail Sabri Yaakob.

The Prime Minister pointed out that the halal economy could act as a catalyst through its various value propositions.

He said opportunities in halal industries were immense, citing, the market size of the global halal industry was projected to be worth US$5 trillion in 2030 from its current value of US$3.1 trillion (RM12.8 trillion).

“Halal industry stakeholders should work together and collectively resolve to enhance international trade and investment ties, where halal standards should be viewed as a value proposition instead of barriers to trade.

“They should also enhance trade ties among Muslim trading nations through multilateral and bilateral meetings, trade missions and Free Trade Agreements to meet the demand of global Muslim and non-Muslim consumers,” he said when opening the World Halal Business Conference 2021 and the launch of Halal Integrated Platform.

The text of his speech was read out by International Trade and Industry Minister Datuk Seri Azmin Ali.Ismail Sabri said the pandemic had left immense damage on the global economy, adding that the halal industry had suffered the ramifications, too.

According to State of the Global Economy Report 2020/21, Muslim spending worldwide has decreased by 8% in various sectors of the Islamic economy last year.

Ismail Sabri said halal industry stakeholders should embrace the Fourth Industrial Revolution (IR4.0) which offers possibilities to boost their industrial capacity, increase productivity and enhance efficiency.

“Machine learning, cloud computing and the Internet of Things (IoT) can greatly change the way business activities are conducted.”

He said a master plan had been drawn up to help entrepreneurs venture into new business opportunities to gain domestic and international market access.

“In terms of knowledge-based halal development, Malaysia aspires to be the leading global centre of excellence for halal professionals and halal training,” he noted.