Focus Far East2 Focus Far East December 2020FTW3365SDLogistics a key factor in success of growing Halal marketThe opportunities for economic growth offered by the global Halal industry, worth about $2.2 trillion, are huge. This is according to Dato’ Hasan Azhari Idris, CEO of investment agency Invest Selangor Berhad, who has witnessed first hand the benefits of tapping into the Halal market. “From its point of inception, the Halal industry has made a prominent impact on Malaysia’s economic growth,” he said.Selangor, known as the Golden State of Malaysia, has actively focused on the Halal sector, growing into a vibrant commercial centre and becoming the economic and administration hub of Malaysia with a gross domestic product (GDP) of $342 billion.The country this year led the overall Global Islamic Economy Indicator (GIEI) rankings for the eighth consecutive year, increasing Halal export figures in food, pharmaceuticals, and media and recreation. Strong awareness and governance credentials have allowed Malaysia to rank higher than other countries with larger export volumes to the Halal sector.According to Idris, considering the size of the Halal industry, the opportunities are endless. “The global Halal market was worth $2.2 trillion in 2018. Specifically, the global Halal food industry was valued at $1.4 trillion, representing more than 60% of the total Halal industry market. With this huge market, Halal logistics is playing a significant role in different industries across Selangor and Malaysia .”In South Africa the potential of exports to the international Halal market is gaining momentum. Wesgro, the investment agency of the Western Cape, has set itself a target of doubling the region’s exports by 2025, which will bring an estimated $58 million to the economy.Idris said much of Malaysia’s success in the Halal market was due to its logistics meeting the high standards required in moving these products and maintaining integrity in the Halal supply chain.“Halal products’ integrity can easily be impaired while being transported. Halal logistics is responsible for the entire transport process – establishing a network, securing that integrity, and creating a transport environment that Muslim customers can use without a n x ie t y.”According to the latest Global Islamic Economy Report, Far East and South Eastern countries are increasingly realising the opportunities presented by the Halal market.Singapore's entry into the top 15 countries serving this market signals both the important role and the momentum of the Islamic economy for the country and the region.
