Global Islamic Economy Poised for Significant Growth – Tengku Zafrul

Global Islamic Economy Poised for Significant Growth – Tengku Zafrul

KUALA LUMPUR: The global Islamic economy has the potential to experience substantial growth, with the world halal market projected to reach US$9.71 trillion (US$1=RM4.69) by 2025, with countries like Malaysia expected to lead in the coming years.

Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz stated that the halal industry, for example, has proven to be one of the most competitive and fastest-growing sectors in the world, a trend expected to be mirrored by Islamic financial assets.

“In fact, Islamic financial assets have grown by 163 percent over the past decade, from US$1.71 trillion in 2012 to US$4.51 trillion in 2022. This performance is driven by strong balance sheets, increased earnings, regulatory support, and sustained demand from customers and investors worldwide.

“Therefore, it is not surprising that many countries are now focusing on the halal industry, with many companies wanting to invest in halal-related products, driving innovation, and creating solutions targeting the 1.9 billion Muslims worldwide, nearly 25 percent of the global population,” he said during his keynote address at the Global Forum on Islamic Economy and Finance (GFIEF) here today.

Elaborating further, Tengku Zafrul said that in order to meet the rapidly growing demand in the halal sector, technology plays a key role in ensuring the industry’s continued advancement.

Discussing opportunities to be leveraged, he said the increasing number of non-Muslim halal customers globally will also contribute to the growth of the halal industry, encompassing various sectors, including food and beverage, personal care products, pharmaceuticals, services, and business operations.

“Another opportunity for the Malaysian halal industry is the adoption of technology to ensure the integrity of the entire supply chain ecosystem, including aspects of procurement, certification, and logistics.

“The third point I want to highlight is facilitating halal trade and services. In this regard, the Malaysia International Halal Showcase (MIHAS), organized by the Malaysia External Trade Development Corporation (MATRADE), serves as a key platform to showcase Malaysian brands.

“The fourth element is about talent. In 2022, Malaysia had 20,000 talents or workforce equipped with halal certification,” he said.

Tengku Zafrul also emphasized that to remain competitive and achieve high aspirations, the country needs more innovation, a unified market, increased investment through ease of doing business, reduced bureaucracy, and smoother investor journeys.

Reflecting on this importance, he said the government’s decision to empower the Malaysian Investment Development Authority (MIDA) as the main national investment promotion agency will ensure smoother, more organized, and focused promotional activities.

He stated that the Ministry of Investment, Trade, and Industry (MITI) is also in the process of restructuring the role of the Halal Development Corporation (HDC) to reduce overlaps and enhance focus on promoting the halal industry within MITI’s ecosystem.

“The ministry has requested MIDA to create a new category for foreign direct investment and domestic direct investment that is halal. MIDA will lead comprehensive investment promotion, including halal, while HDC will drive growth within the halal industrial ecosystem.

“HDC will devise strategies for the fully Shariah-compliant halal value chain, expanding into new sectors such as pharmaceuticals, cosmetics, personal care, logistics, hospitality services, and medical devices to meet the needs of the modern economy,” he said.

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