PUTRAJAYA: The main contributing factor to the weak participation of Bumiputera companies in the halal industry is because many of them do not meet halal certification requirements.
Mydin Mohamed Holdings Bhd managing director Datuk Dr Ameer Ali Mydin said it is necessary to establish a tier system and 'green lane' for Bumiputera to obtain halal certification.
Ameer, who is the Bumiputera Retailers Association president, said based on data, only 3,562 Bumiputera companies obtained halal certification compared to 5,600 non-Bumiputera companies in 2023.
He said out of this total, 6,857 are micro-enterprises and 1,155 are small and medium-sized enterprises (SMEs), while 1,150 are multinational companies.
On that note, Ameer suggested that stakeholders should implement a halal business transformation programme through activities such as assessing availability and providing business guidance.
"Providing special financing funds through public funding or endowment for improving Bumiputera companies is crucial.
"Furthermore, the government can encourage halal-certified premises and industries through partnerships and offer special recognition to companies, promoting them through various agencies.
"The government can also provide incentives by mandating that 70 per cent of purchases of offical government programme goods are halal and Bumiputera products," Ameer said at a presentation during the Bumiputera Economic Congress (KEB) 2024 here today.
He also proposed implementing a policy that would allow products from Bumiputera entrepreneurs to enter all retail sectors such as hypermarkets or mini-markets.
He said the value of halal product exports in 2023 was at RM53.72 billion, and 6.1 per cent of this or RM3.26 billion were products from the Bumiputera.
"The shortage of products penetrating the global market is due to low production capacity and limited logistics provision along the supply chain, as well as the lack of participation from Bumiputera companies in overseas promotional activities.
"Therefore, it is necessary to provide an international promotion platform through strategic partnerships, provide a national-level trade promotion platform, provide special financing funds and grants.
"This will encourage the participation of Bumiputera halal product and service companies in international promotion platforms or activities," he said.
The Economy Ministry, in collaboration with the Rural and Regional Development Ministry is hosting KEB 2024, themed 'Positive, Progressive, Innovative,' at the Putrajaya International Convention Centre (PICC) for three days.