MITI Minister proposes halal category for FDI and DDI

28 May 2024

Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz has proposed a halal category for Foreign Direct Investment (FDI) and Domestic Direct Investment (DDI).

The minister said the ministry is also redefining the role of the Halal Development Corporation (HDC) to eliminate redundancies and sharpen the focus of halal industry promotion within the MITI ecosystem.

“I have requested MIDA to have a new category for FDI and DDI, which is the halal category. MIDA will spearhead overall investment promotions including halal, while HDC drives growth in the halal industrial ecosystem. HDC will craft strategies for fully halal and Shariah-compliant value chains, branching out into new sectors like pharmaceuticals, cosmetics, personal care, logistics, hospitality services, and medical devices to cater to the modern economy,” he said in his special address at the Global Forum on Islamic Economics and Finance held here today.

He said the global Islamic economy holds immense potential for growth with the global halal market predicted to reach US$9.71 trillion by 2025, with nations like Malaysia expected to lead the pack in the coming years.

“As the halal industry becomes one of the most competitive and fast-moving sectors in the world, so too will Islamic financial assets.

“In fact, global Islamic financial assets expanded by 163% over the past decade, from US$1.71 trillion in 2012 to US$4.51 trillion in 2022,” he pointed.

Tengku Zafrul said that this is attributed to strong balance sheets, high earnings, regulatory support, and sustained demand from customers and investors worldwide.

Therefore, he added it does not come as a surprise that many countries are now focusing on the halal industry, with many businesses looking to invest in halal-related products, driving innovation and creating solutions for their ‘target share’ of the 1.9 billion Muslims globally, which is almost 25% of the world’s population.

Source: The Sun