30th March 2016, Wednesday
Plenary Hall, Level 3, Kuala Lumpur Convention Centre
YB Dato’ Sri Mustapa Mohamed, Minister Of International Trade And Industry
Assalamualaikum Warahmatullahi Wabarakatuh and a very Good Afternoon to all of you.
- I am delighted to be here to officiate the Opening of the World Halal Week 2016 (WHW 2016). Malaysia is once again hosting this important event for halal stakeholders across the globe. To our foreign guests who come from 40 countries, Selamat Datang and welcome to Malaysia. To fellow Malaysians, Terima Kasih for your strong support.
History of Halal industry in Malaysia
Ladies and Gentlemen,
- Our journey towards becoming the leader in the world’s halal industry began in 1974 when the Research Centre at the Islamic Affairs Division in the Prime Minister’s Office started to issue halal certification letters for products which met the Halal criteria.
- In the year 2000, our journey reached yet another significant milestone as Malaysia became the first country to have a documented and systematic Halal assurance system following the release of our halal standards. This created what we can call a revolution, which had transformed Halal from a traditional cottage industry to a vibrant new economy.
The Halal Industry Development Master Plan 2008-2020
Ladies and Gentlemen,
- Realising the vast potential of the Halal industry, our relentless efforts in developing this industry continued in 2008 as we embarked on the Halal Industry Development Master Plan (HIMP) 2008-2020, aiming to drive Halal as a new source of economic growth. This is in line with the Government’s efforts to diversify our economic activities against the backdrop of the global economic uncertainty. Credit goes to our former Prime Minister YABhg. Tun Abdullah Badawi, Patron of the World Halal Week, who was instrumental in providing leadership to promote the Halal agenda in this country and indeed throughout the world.
- The 13-year master plan has been divided into three implementation phases. The first phase implemented in 2008-2010 was meant to establish Malaysia as a global leader in Halal integrity through our improved certification process and the establishment of our Global Halal Support Centre. It continued with the second phase in 2011-2015 that focused on establishing Malaysia as the preferred location for halal related businesses through the development of our global knowledge base and global brand recognition.
- We are now in the third and final phase of completing the Master Plan. Having established a firm footing with regard to Halal integrity and as the preferred place to do business, our priority is to expand the footprint of Malaysian companies into the international market. The World Halal Week 2016 is one of many initiatives to place Malaysia firmly on the world Halal map.
The World Halal Week 2016
Ladies and Gentlemen,
- The World Halal Week is a very important platform for thought leadership, business matching, marketing and promotion, as well as trade and investment within the Halal sphere. It includes the Malaysia International Halal Showcase (MIHAS), World Halal Conference and International Halal Certification Bodies Convention.
- The theme for this year's World Halal Week -- "Beyond the Economy" -- is very apt given current geopolitical developments. The Halal economy comprises more than 70 core countries, and therefore events such as this will provide opportunities for networking amongst the stakeholders in the Halal Economy.
- There has been a growing acceptance of Halal brands and practices across the world, among Muslims as well as Non-Muslims. Indeed, this should not come as a surprise given that the concept of Halal was designed to be universal; as mentioned in the Quran:
طَيِّباً حَلاَلاً ٱلأَرْضِ فِى مِمَّا كُلُواْ ٱلنَّاسُ يٰأَيُّهَا
which means “Oh Mankind, eat what is Halal (lawful) and Thayyib (good, healthy)”.
- Halal is for all, Muslims and Non-Muslims alike. It is therefore our duty as Muslims to make Halal products and services available to all of humankind, thus making halal a global business. It is our responsibility to enhance and promote halal to become a premium brand – one that is associated with quality, safety and good health. InshaAllah, through the World Halal Week 2016, we will be able to further develop the Halal industry and economy, eventually creating a positive impact for Islam and Muslims in business and commerce around the world.
Ladies and gentlemen,
- Since the Arab Spring in December 2010, some Arabic countries have not yet fully recovered from the turmoil brought about by the uprising. In recent years, we have seen the rise of extremist groups such as the Islamic State that has been preaching violence in order to propagate their beliefs. This is indeed very alarming – the instability in certain parts of the world as a result of the Islamic State’s actions has distorted global perception about Islam and has adversely affected growth in some countries.
- The Government has a duty to ensure that we are able to feed our people and constantly create opportunities for them to move up the economic and social ladder. However, this will not be possible without economic growth, and for that to happen, we need to have in place the necessary conditions that would make it possible for our economies to progress and prosper. As such, the economic agenda must remain at the forefront to create opportunities for the Ummah and provide hope for the younger generation.
- I see Malaysia’s initiatives in promoting the Halal industry – in all dimensions – finance, food, pharmaceuticals, logistics and cosmetics making a big contribution to the growth of our economy. It is important for us to set our priorities right. The priorities for us are jobs and business opportunities. It is my hope that the World Halal Week 2016 will enable us to do a lot more to grow our economy. For us in Malaysia, the Halal economy is seen as one of the new sources of growth as embodied in our 11th Malaysia Plan that will bring about greater prosperity to our people. If all of us continue to focus on creating the conditions for economic progress and prosperity, our people will be able to live more comfortable and secure lives.
Global Halal Industry Outlook
Ladies and Gentlemen,
- The global Halal economy is now valued at an estimated RM8.4 trillion. The Halal food sector alone accounts for almost RM 2.5 trillion of that total. Given that by the year 2030 the worldwide Muslim population is expected to form about 27% of the global population, prospects of the Halal economy are indeed encouraging. In fact, the Global Islamic Economy (GIE) Report 2015-2016 already estimates that the international Halal and lifestyle market will be worth USD3.7 trillion just by 2019.
- Additionally, the same GIE Report released at the end of 2015 also recognized Malaysia as the world’s most advanced Islamic economy. Out of the six indicators used to measure the countries’ level of advancement, Malaysia scored highest in three of them namely the Halal Food, Islamic Finance and Halal Travel indicators. This achievement speaks volumes about the strength of Malaysia’s comprehensive Halal economy ecosystem.
- The Halal market is set to grow beyond Muslim majority countries. It should also be noted that the Halal agenda has been placed at a much higher level of priorities in many parts of the world, irrespective of whether Muslims are the majority or minority in those populations. Many nations now view Halal as an emerging market force and an important value proposition, capable of contributing towards their respective national economies.
- Japan, Brazil, Korea, Australia and New Zealand are some example of countries, which are placing higher priorities to the promotion of the Halal agenda. Australia and Brazil have built their entire food based industries to be the main suppliers of Halal food to the Middle Eastern markets. Japan is aggressively introducing and expanding exports of “Made in Japan” halal products and services to Muslim markets. The increase in Muslim tourists has also encouraged Japanese manufacturers to seek Halal Certification for their products.
- In ASEAN, Halal is recognized as having the potential to be a real engine of growth for their local economies. Malaysia, Indonesia, Thailand, Brunei, Singapore and the Philippines have put in place a number of government-led initiatives for Halal to drive economic growth.
The growth of Malaysia’s Halal Industry
Ladies and gentlemen,
- Malaysia has come a long way in the development of our Halal industry and we have definitely grown from strength to strength. The total investment in our Halal industry has grown from RM4.1 billion in 2012 to RM10.6 billion in 2015. Meanwhile, the number of Halal certified companies has more than doubled from 2336 companies in 2011 to 5726 companies in 2015. The total jobs created have also gone up from 97,000 jobs in 2011 to almost 250,000 jobs in 2015.
- More and more of our companies have also started venturing abroad. Our Halal exports in 2015 stood at RM39 billion, a big increase from RM24 billion in 2011. Our top export market for Halal products over the years has been China, followed by Singapore, the United States, Indonesia, Japan and Thailand.
- The Malaysian Halal brand is widely recognized and accepted throughout the world, hence reducing the barriers for our Halal products to enter the international market. We are currently in an interesting juncture whereby there is an undersupply situation in the gobal market, where Halal producers are estimated to be able to cater to 20% of the demand. Hence, our exporters must make full use of the strong Halal brand that we have to continue venturing abroad and establishing bigger market share within the global Halal market.
Ladies and Gentlemen,
- The services sector also presents us with an equally exciting prospect. For instance, the global Islamic finance industry has expanded rapidly over the past decade, growing at 10-12% annually. Today, Sharia-compliant financial assets are estimated at roughly USD2 trillion. The new sources of ethical and economically viable funding for the Halal industry can now be unlocked through the availability of Syariah compliant financing.
- The strength of Malaysia’s Islamic finance services industry is something which we can be particularly proud of. Our expertise is very much recognised and sought after by various countries across the globe. Many of our people and Malaysian companies are now involved in various international councils tasked to chart the future of Islamic finance. At the same time, we are committed in developing human capital for this sector and researching ideas in the Islamic finance space.
- Despite the challenges facing the world economy, slower Sukuk issuance and emergence of new issuers from other countries, Malaysia still managed to maintain its lead in the global Sukuk market last year where we accounted for 53% of global issuance. As the leader of the Sukuk market, Malaysia is indeed in a very firm position to offer a credible, convenient and Syariah compliant alternative to conventional financing needs. This is a key area, which we need to continuously build our competencies.
- Having said that, maintaining Malaysia’s position as the global leader of Halal industry is no easy task. The knowledge of yesterday might still be useful, but not necessarily sufficient for us to meet the challenges of tomorrow. The onus is now on us to continue building upon our strong foundation and previous successes. With the effective execution of our plans, especially the Halal Industry Development Master Plan, I believe that Malaysia will remain as a force to be reckoned with in the global Halal industry.
Programmes in store at WHW 2016
Ladies and Gentlemen,
- The World Halal Week 2016 started with the 7th International Halal Certification Bodies Convention 2016 hosted by the Department of Islamic Development Malaysia (JAKIM). I was informed that 54 Halal certification bodies from 32 countries and 4 Halal authorities from OIC member countries attended the convention. One of the resolutions agreed in the Convention is to have an International Halal Authority Board (IHAB) as an accreditation body. This body will be based in Malaysia under the collaboration between JAKIM and the Department of Standards Malaysia (DSM).
- Another major programme is the Malaysia International Halal Showcase (MIHAS), which is currently in its 13th consecutive year. It has now become the premier halal event and a game changer in the global Halal arena, providing opportunity for the global business community to showcase Halal products and services and network with each other. In 2015, MIHAS has generated a total sale of RM1.1 billion.
- Yesterday, MATRADE has successfully organised a pre-arranged business matching session called International Sourcing Programme (INSP) involving 391 foreign buyers from 40 countries and more than 600 Malaysia-registered companies. The number of buyers was 27% higher compared to last year and the preliminary sale recorded was close to RM480 million for various products and services including food and beverages, as well as cosmetics. This represents an increase of 8% over the sales recorded last year. Combined with MIHAS, INSP has proven to become an important annual meeting place for the international Halal players.
- I was told that a total of 89 companies from ASEAN and 78 companies from OIC are present at this year’s edition of MIHAS. I would also like to welcome the newcomers, namely Bulgaria and Romania to MIHAS 2016. The participation of these two countries demonstrates my earlier point that the Halal industry is expanding beyond its traditional borders.
- This year, the Department of Trade and Industry of South Africa has been chosen as the Guest Country for MIHAS with the participation of 24 South African companies. There is a growing awareness about the future of the Halal economy in South Africa. It is our hope that this will further strengthen trade relation between the two countries. Next year, we look forward to more countries where Muslims constitute a minority to be part of the Halal week.
- The third major programme that we have lined up for you is our flagship event, the 9th World Halal Conference 2016 organised by the Halal Industry Development Corporation (HDC). A total of 1,200 delegates from over 50 countries are attending this two-day conference. This conference will be attended by the government leaders, industry captains, regional experts and many other stakeholders.
Ladies and Gentlemen,
- Allow me to place on record my appreciation to all involved in making this World Halal Week 2016 a success. This includes not just the Ministry of International Trade and Industry and its agencies MATRADE and HDC, but also the Department of Islamic Development (JAKIM) and each and every one of you here. I am pleased to note that there has been an increase in the number of participating companies and countries. This clearly is an indication that Halal has gained a lot of momentum. Let us therefore continue to maintain this momentum.
- Malaysia would like to see the Halal economy continues to enjoy solid growth. For us in Malaysia, the Halal economy is not only about food and finance. It is also about logistics, cosmetic and medicine, among others. This event has gone through major change in the last 10 years. Let me thank my fellow Malaysians for making this possible.
- In closing, I would like to assure all of you that the Malaysian Government is committed towards developing the halal sector and intensifying high valued-added activities within the industry. We spotted the potential of the Halal economy very early on, and over the decades have nurtured a Halal eco-system that has placed Malaysia in the forefront of this burgeoning industry. We are committed in the pursuit of Halal Agenda and this is reflected through the formation of the National Halal Council which is chaired by YAB Dato’ Sri Dr. Ahmad Zahid Hamidi, the Deputy Prime Minister of Malaysia. Our approach is holistic, our mission is singular: to make Malaysia the leading Global Halal Hub.
- On that note, and with the recitation of “Bismillahir Rahmanir Rahim”, it is my pleasure to declare open the World Halal Week 2016.
Wabillahitaufik Walhidayah Wassalamualaikum warahmatullahi wabarakatuh.
Slides Presentation : WHW2016 OC Slides
Last Updated 2016-04-05 16:22:28 by Azuna Hasbullah atau Abd Rahman