Malaysia – Able to Provide Several Sectors in the Halal Economy

KUALA LUMPUR: As a leader in the Islamic world, Malaysia has a lot to contribute, particularly in the areas of best practices, commerce, and innovation, according to Datuk Seri Mustapa Mohamed, Minister in the Prime Minister’s Department (Economy).

He said the country is an example of the halal economy and has successfully positioned itself as the main driving force of the global halal economy, adding that based on the Global Islamic Economic Indicator (GIEI) Score, Malaysia has been ranked number one for nine consecutive years.

Mustapa stated today at the virtual Global Muslim Business Forum 2022 that the halal sector provides roughly 7.5 percent of Malaysia’s GDP. He claims that the country is currently at the forefront of Islamic banking, halal cuisine, Islamic-friendly tourism, and the media and entertainment industry.

“The largest component of the halal economy is the food sector, contributing approximately US$31 billion (US$1=RM4.72).

Malaysia is a pioneer in Islamic finance, with a well-developed and well-controlled business. “With about US$619.7 billion in Islamic financial assets in 2021, we are among the top five nations,” the minister said.

Malaysia continues to lead in terms of innovation, he says, noting that the nation launched the world’s first US dollar-denominated commercial financial notes on the long-term viability of Islamic banking last year.

“Malaysia’s widely recognized halal certification is as well. Malaysia’s halal stamp aids in the prevention of ‘dirty money laundering and the development of trust, particularly in international trade, ” he said.

According to Mustapa, the government also continues to emphasize the importance of the halal economy.

According to the 12th Malaysia Plan, the key aim is to establish Malaysia as a worldwide center by promoting halal talent development, implementing halal professional recognition, driving industrial growth, and raising product competitiveness.

The target is to increase the halal economy’s contribution from GDP to 8.1 percent and generate over US$12 billion in export revenue by 2025, he said.

According to Mustapa, the forum’s theme “The Rise of the Global Islamic Economy: Refocusing, Resetting, and Recovering in the Post-Pandemic Era” (The Rise of Global Islamic Economy: Refocusing, Resetting, and Recovering in the Post-Pandemic Era) is consistent with the huge business potential of the world’s 1.9 billion Muslim consumers.

The Muslim community’s global expenditure reached US$2 trillion in 2021, encompassing different industries such as food, fashion, and finance, as well as US$3.6 trillion in Islamic financial assets such as Sukuk and Islamic bonds.

According to DinarStandard’s latest Global Islamic Economic State Report, consumer expenditure in all sectors of the global Islamic economy, except travel, has recovered to pre-pandemic levels by the end of last year.

“The global Islamic economy has bright prospects.” Demand for halal goods and services is likely to rise, with worldwide spending expected to reach US$2.8 trillion by 2025.

“The worldwide Muslim population hit 1.9 billion in 2019 and is expected to expand twice as fast as the global population as a whole.” “According to the Pew Research Center, there will be at least three billion Muslims by 2060, accounting for one-third of the world population,” he said.

Mustapa also emphasizes the important role of digital connectivity in the Islamic world.

Citing Newzoo research data, he said 15 of the 50 countries with the highest smartphone penetration rates were from the Organization of Islamic Cooperation. Hence, the demand for Muslim-friendly digital products—from Islamic finance to lifestyle products—will grow.

“Businesses and investors must recognize the enormous potential of the global Islamic economy,” Mustapa said. “There is a definite movement toward Muslim-friendly goods and services, supported by the notion of halal throughout the Islamic world and beyond.”

Sumber Rujukan: Malaysia mampu tawar banyak perkara berkaitan ekonomi halal, bidang lain dalam dunia Islam – Mustapa | Astro Awani

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