Study on the Creation of Export Opportunities and Enhancement of Capabilities and Capacities to Enable Malaysia to Become a Leading Global Halal Hub – Halal Industry Development Corporation (HIDC)

Halal Industry Development Corporation is the principal government agency responsible for the preparation of development
of Halal for the nation.

BACKGROUND OF ENGAGEMENT

The purpose of the study is to assess the export opportunities and enhancement of capabilities and capacities to enable Malaysia to become a leading global Halal hub

SCOPE & VALUE DELIVERED

Clearly overlapping roles and responsibilities amongst agencies within the Halal landscape lead to an overlap of initiatives and inefficient use of resources. The establishment of an inter-government linked database system, which tracks Halal industry players, is aimed to address these issues. It will do so by allowing for a greater flow of information between government agencies, and reduce the duplication of data. Additionally, the use of ‘Halal’ as a search parameter would also help to reduce the impact of the abovementioned issues.

iA discovered a need for closer government collaboration – especially between Malaysia’s Department of Islamic Development (JAKIM), the sole certifiers of the Halal industry in Malaysia, and HDC, the lead agency responsible of the development of the Halal industry in Malaysia. In order to push for greater government collaboration, iA ensured that proposed recommendations would create an environment that allows for better collaborative efforts.

Additionally, iA recommended for the development and establishment of a Halal Economic Council (HEC), as a collaborative platform for all stakeholders within the Halal industry to discuss and raise issues pertaining the Malaysia’s Halal industry. As current platforms only look at the issue of certification, this study recognized the need for a more holistic approach to the Halal industry, as Halal cuts across various sectors and issues go beyond purely certification. Strategic recommendations also included enhanced roles for HDC, and renewed outcome-based KPI’s – all with the intention of increasing Malaysia’s Halal export performance.

Value to the client:

  • HDC’s greatest success with their establishment of tracking Malaysia’s Halal export data. To date, HDC’s tracking of Halal exports is the only kind in the world, and no other country has managed to capture Halal export figures as accurately as Malaysia. However, there is little understanding of the impact Halal has to the nation, and how to increase Malaysia’s Halal export figures.