Mapping Malaysia's Resource Centres

07 Halal-related Services The Halal industry is one of the fastest growing sectors in line with global economic growth. According to the State of the Global Islamic Economic Report, nearly 1.8 billion Muslim consumers spent a total of over US$2.2 trillion across the food, pharmaceutical and lifestyle sectors that are impacted by Islamic faith-inspired ethical consumption needs. This spending reflects an estimated 5% year-on- year growth and is forecasted to reach over US$3 trillion by 2024. In addition, Islamic finance assets were reported to have reached over US$2 trillion. As ethical considerations become increasingly important, the Islamic economy also addresses the broader ethical needs of non-Muslim consumers. Consumers are willing to pay more for higher priced, ethical products. The Islamic economy has established an increasingly important footing in the global economy, driven by increasing Muslim consumer demand for dedicated products and services based on Islamic law that has developed the global sub-sectors of halal food and beverages, cosmetics, personal care, pharmaceuticals, Islamic financial services, modest fashion, Muslim-friendly travel, logistics and Islamic-themed media. Global growth is underpinned by 10 key drivers that include high growth and affluence among Muslim population, increasing adherence to ethical values, continued engagement by global multinational investors, and a growing number of national strategies dedicated to halal products and related opportunities. Several countries have taken the lead in establishing robust ecosystems, with Malaysia leading for the 6th consecutive year. Malaysia has developed world-class regulation, driving new initiatives to accedit halal certifiers worldwide, granting the first Islamic fintech crowdfunding license and launching a new certification scheme for Muslim-friendly hospitality. On top of a reinforced investment ecosystem through increased focus on the Digital Islamic Economy, Malaysia has also signed trade agreements with major economies such as China, Japan, South Korea and Turkey. Owing to its Muslim-majority population, Malaysia has the first mover advantage in the sectoral development of Halal food, pharmaceuticals and cosmetics; Shariah- compliant fashion, arts and entertainment; Halal logistics; Muslim-friendly tourism and financial services, among others. As such, the 12th Malaysia Plan (2021-2025) will see the halal industry moved to the centre stage given its great potential to accelerate economic impact and expand Malaysian companies’ capabilities.