KUALA LUMPUR: Malaysia’s halal exports may hit RM50 billion mark this year, earlier than 2020 target on stronger demand, unfazed by the global trade slowdown, Halal Industry Development Corp (HDC) said.
This will be at least 11 per cent growth from last year’s RM45 billion, higher than 2.6 per cent growth from 2016 to 2017 and Malaysian Islamic Development Department’s (Jakim) year-end growth target of 10 per cent.
The export value currently stood at RM20 billion this year.
HDC chief executive officer Datuk Seri Jamil Bidin said the halal export growth is expected to pick up 'tremendously' in the second half of this year.
“For the past several years, we see the same trend. Normally, the growth in the first half of the year is quite slow but it will pick up tremendously in the rest of the year.
“We hope we could at least achieve, if not breach, the RM50 billion export value target for Halal Industry Masterplan 1.0 this year as we will be launching the new masterplan (Halal Industry Masterplan 2.0) in December," he said recently.
Jamil said the Masterplan 1.0 was supposed to end in 2020 but HDC decided to come up with the new masterplan sooner as it is approaching the RM50 billion target.
"We also need to adapt to the new changes the industry is facing,” he said.
Jamil said Malaysia’s halal industry will grow irrespective of the global economic situation.
“Certain sectors may feel the effect from the slowdown in global trade especially with the escalation of trade tension but it will not be significant,” he said.
Last month, Jakim said it expected an increase of 10 per cent in halal exports this year from RM45 billion in 2017.
Its director of Halal Hub Division Datuk Sirajuddin Suhaimee said this is on the back of the consistently improving demand for halal-certified products, not just from Muslim countries but also non-Muslim countries that seek hygienic processes and food safety as well as halal and shariah-compliant services.
“Countries with high demand for halal certification from Jakim include China, Japan, Taiwan and Hong Kong,” he said.
Meanwhile, CCM Duopharma Biotech Bhd group managing director Leonard Ariff Abdul Shatar said the halal pharmaceutical industry, valued globally at an estimated USD$83 billion in 2016, is expected to grow to USD$132 billion by 2022.
“The market potential may be even greater as it is not just exclusive to Muslim communities. Pharmaceuticals account for 26 per cent, the second largest after food sector with 61 per cent and cosmetics with 11 per cent,” he said.
Leonard said the company aims to grow its market share globally in the years ahead.