Malaysia prepares to embrace burgeoning non-Muslim halal markets

Photo: MIHAS 2015 / Courtesy MIHAS

The Malaysia International Halal Showcase (MIHAS) returns to Kuala Lumpur at the end of this month with increased participation from non-Muslim countries. China and Thailand are the biggest foreign participants, with China represented by 50 percent more companies this year.

“The trend in seeing more non-Muslim majority countries embracing the demand [for halal] is a testament to the growth in the halal trade,” Datuk Shukri Abdullah, CEO of MIHAS, told Salaam Gateway.

There is an 8 percent increase in the proportion of non-Muslim countries participating at MIHAS 2016.

“In MIHAS this year, 15 out of 25 nations are not from Muslim-majority countries. This proves that [the] halal economy transcends geographic and cultural boundaries and is emerging as a new economic paradigm that is likely to have a significant global impact,” said Abdullah.

Last year’s event saw 11 non-Muslim majority countries out of a total of 21 participating nations.

Four of the top five countries at this year’s event are not Muslim-majority nations: China (36 companies), Thailand (34), Indonesia (30), South Africa (24), and Taiwan (23).

POSITIVE PERCEPTION OF HALAL

Abdullah attributes the increasing interest in halal from non-Muslim countries to the demand from consumers who believe that food products should be “cleaner, purer, better,” with the result that they have “begun to look at halal food as something positive.”

“The potential consumers of halal products and services have been extended to those outside the Islamic faith who value the need for pure, hygienic food and, most importantly, ethical treatment towards farm animals,” said Abdullah.

GROWING HALAL TRADE

To accelerate sales of halal products and services from Malaysia, the International Sourcing Program (INSP) will be held a day before the opening of MIHAS 2016. The INSP is a business-matching program for Malaysian companies.

This year the program aims to link 500 Malaysian companies with over 350 buyers from 41 countries. Last year, it generated  443.2 million ringgit ($106 million) in sales.

The Malaysia External Trade Development Corporation (MATRADE) has also been working closely with foreign embassies and chambers of commerce from many countries to create better understanding in halal trade and to strengthen relations through MIHAS.

Organized by MATRADE, MIHAS 2016 is part of the World Halal Week (WHW), an annual event held within the first half of the year in Kuala Lumpur.

Besides MIHAS, other components of the WHW are the World Halal Conference, organized by the Halal Industry Development Corporation (HDC), and the Halal Certification Bodies Convention, organized by the Department of Islamic Development.

Over the past 12 years, MIHAS has generated more than 11 billion ringgit in revenue through the trade exhibition and business-matching programs.

MIHAS 2016 is confident that it will record between 2 and 3 percent growth in sales this year against 1.1 billion ringgit posted last year.

© Copyright SalaamGateway.com 2016