The Halal industry, one of the world’s fastest growing sectors in Malaysia and globally, is poised for continued growth and expansion, as it is a major contributor to Malaysia’s GDP. Initiatives like the Halal Industry Master Plan 2030 (HIMP 2030) aims to make Malaysia a global Halal hub, fostering robust domestic Halal sectors and attracting international investment. Through the HIMP 2030, Malaysia’s Halal industry is projected to contribute 11% to the country’s GDP in 2030, from 7.4% in 2018. The Halal GDP value, which stood at USD28 billion in 2018, is projected to reach USD58.5 billion by 2030, reflecting a robust CAGR of 5.8%. To also note, confidence of international markets in JAKIM’s comprehensive Halal certification system has led to an increase in Halal product exports.

But there are still challenges for the Micro, Small and Medium Enterprises (MSMEs) to overcome just to be part of this robust industry. These hurdles come in various forms, among others, getting Halal certified, sourcing Halal ingredients, and obtaining financing to grow their businesses in and beyond the Malaysian market.

With that in mind, Maybank Islamic Berhad seeks to address the challenges through an ecosystem approach, combining banking and beyond banking solutions to support and elevate MSMEs in their Halal business journey. These innovative solutions include tailored banking solutions, Halal Facilitation, Halal Assurance System (HAS) and the newly launched Salaam Market, a Halal marketplace to facilitate sale and purchase of Halal certified ingredients and goods.

Salaam Market is the first Business-to-Business (B2B) Halal Marketplace in Malaysia and it specifically addresses buyer pain-points of sourcing Halal ingredients which are currently scarce and fragmented. The collaboration with Macro Tech Ventures Sdn Bhd, the operator of Borong marketplace, enables Maybank Islamic to seamlessly connect Borong’s SME businesses to tailored Islamic financial solutions.

“Salaam Market will connect buyers and sellers on a unified platform to make online purchasing seamless. On top of that, customers will have access to banking products such as deposit and financing digitally. This is just one of Maybank Islamic’s Halal-tailored solutions to facilitate the growth of Halal businesses in Malaysia, in line with the national agenda of growing the Halal domestic market to an estimated USD113.2 billion by 2030,” said Maybank Islamic Strategic Programme Director, Dr Muhd Ramadhan Fitri Ellias.

Buyers and sellers of Salaam Market will also be granted access to Maybank Islamic’s other offerings, including comprehensive in-house Halal certification guidance, Halal Facilitation, which provides a step-by-step advice on JAKIM’s Halal requirements. This offering by the Bank combines both digital and personalised guidance for businesses, with the objective to assist them in navigating the extensive Halal certification requirements. The journey to getting the Halal certification may look like a daunting task to some businesses but with the guidance from Maybank Islamic, the process can be a smooth and seamless experience.

Another offering MSMEs can tap into is the HAS digital platform where they are given peace of mind to access a centralised system to store, access and track their Halal-related information such as invoices, purchase orders and receipts systematically and receive advance notification prior to their products’ Halal certification expiry.

Maybank Islamic CEO, Dato’ Muzaffar Hisham said the Bank, being the largest Islamic Bank in the world outside the GCC region, is committed with its vision to be a major player in the robust and dynamic Halal sector.

“This vision aligns with one of Maybank M25+ strategic thrusts, to build global Islamic banking leadership through a number of business drivers, one of them being the expansion of the Halal economy, not just within the ASEAN region but particularly in the Muslim populous countries,” he said.

Malaysia’s Halal industry and Islamic Finance industry share numerous common values as both are guided by the Shariah principles and entail intrinsic values that go beyond faith. This synergy provides ample opportunities for the two industries to complement one another, benefiting the economy and society at large. In realising this synergy, it is important for institutions like Maybank Islamic to play a vital role in providing the support, either through Shariah-compliant financing or beyond banking propositions to facilitate the development and growth of the Halal industry especially among the SMEs.

The need to finance Halal businesses via Shariah-compliant solutions has to some extent spurred innovation in Islamic financial products and services. This, in turn has enhanced financial inclusion, as more customers can access values-driven financial services including financial instruments such as Sukuk (Islamic bonds) and venture capital funds. The integration of technology, such as block chain which ensures transparency and traceability in the Halal supply chain has also positioned Malaysia at the forefront when it comes to Halal innovative solutions.

Emerging trends such as the rise of Halal e-commerce and digital platforms are poised to drive further growth in the Halal economy. With the increasing use of technology, Halal products are becoming more accessible to consumers worldwide. The potential for growth is immense, and a strong Halal economy benefits not just Muslims but also the global market by upholding ethical and quality standards.

Dato’ Muzaffar said with the Halal economy holding a significant potential for growth, driven by demographic trends, consumer awareness, and supportive government policies, there is an urgent need to address challenges related to certification, supply chain management, and market penetration.

He added that the Halal economy proposition can be further strengthened by implementing strategies such as standardisation, technological integration, investment in R&D, education, market diversification and public-private partnerships.

“Maybank Islamic, as a leading Islamic bank, is well-positioned to contribute significantly to the advancement of the Halal industry through innovative financial solutions, support for technological advancements, and promotion of Halal standards,” he added.