Halal industry, maritime transportation collaboration a boost for Malaysia’s halal sector
30 Mar 2023
By Datuk Dr Sabirin Ja’afar, Mazlinawati Abdul Majid
THE halal industry and maritime transportation sectors are closely linked, and have a significant potential for collaboration to boost Malaysia’s halal economic development.
The halal industry requires a comprehensive halal logistics and transportation system to ensure halal products are transported in compliance with halal standards.
This requires collaboration between halal industry and maritime transportation sector to develop and implement halal transportation guidelines and standards, as well as to ensure the ports and shipping companies are equipped to handle halal products.
Based on several research and publications by the Maritime Institute of Malaysia (MIMA), we highlight the need for halal industry to connect with maritime transportations such as ports and shipping as well as other logistics industries to drive the development of the halal economy in Malaysia.
Previous studies by MIMA on halal ecosystem have raised awareness on the halal logistics ecosystem at ports.The halal industry is generating huge trade for Malaysia. This effort should be a concern to the government to ensure the sustainability of Malaysian exports in halal goods.
According to MITI, Malaysia’s exports of halal products increased by 19 per cent to RM36.30 billion in 2021 from RM30.50 billion in 2020.
The Economic Planning Unit (EPU) also projected that Malaysia’s halal industry will contribute 8.1 per cent to the national GDP and generate revenue of RM56 billion in 2025, compared with RM30.5 billion in 2020.
In addition, the halal certification and inspection are critical to the success of the halal industry, and require a comprehensive and standardised system for certifying and inspecting halal products.
Collaboration between the halal industry and maritime transportation sector can help to ensure that ports and shipping companies are compliant with halal certification and inspection requirements.
Thus, this collaboration also helps to promote halal trade, particularly through the development of halal trade routes and the provision of halal trade financing and insurance.
This includes the use of halal-certified transportation and storage facilities, as well as the implementation of halal supply chain management practices.
One of the key challenges in promoting the halal industry is to ensure adequate halal infrastructure in place to support the production and distribution of such products.
This includes halal certification bodies, halal logistics and transportation, halal processing facilities, and halal supply chain management.
Also, this is expected to attract investment in the halal industry, both from local and international companies. This, in turn, will create job opportunities and stimulate economic growth for both the country and the region.
There is significant potential for the halal industry and maritime transportation sectors to engage to boost Malaysia’s halal economic development.
Effective collaboration between these two sectors can help to promote the growth and sustainability of the halal industry, as well as improve the efficiency and competitiveness of the maritime transportation sector.
The World Bank report highlights the important role of Islamic finance in supporting the development of Malaysia’s halal economy and the need for policymakers to take a holistic approach to promote the integration of these two sectors.
Through effective policy and strategy coordination, as well as increased support from the Malaysian government, it will be critical in promoting the growth and development of the halal industry in Malaysia and ensuring that it remains competitive in the global market.
As a maritime research policy institute, MIMA can play an important role in promoting the development of the halal maritime industry in Malaysia.
MIMA can conduct potential research on the halal maritime industry in Malaysia as well as on the best practices and emerging trends in the industry.
With MIMA’s 30th anniversary approaching, the institute has a unique role to play in supporting the development of the halal maritime industry in Malaysia and can leverage its expertise and resources to promote the growth and sustainability of this important sector.
*Datuk Dr Sabirin Ja’afar is Director-General of MIMA and Mazlinawati Abdul Majid, a researcher