HDC plans fund to spur Malaysia halal industry

KUALA LUMPUR: Halal Industry Development Corp (HDC) hopes to manage a dedicated fund under Budget 2012 to assist and develop local halal companies.

HDC has formed tie-ups with six local banks to provide financial assistance to potential companies. However, these banks do not have specific financial packages dedicated to the halal industry.

"HDC undertakes the role to nurture, guide and assist the companies but when they reach the final stage, we would have to refer them to the banks, which of course have their own criteria in approving business loans," chief executive officer Datuk Seri Jamil Bidin said in an interview.

HDC had recently submitted a proposal to the Ministry of Finance (MoF) under its new business plan for year 2011-2015.

"We hope to hear something positive during Budget 2012. We are not asking for much, just enough to help local halal players and to spur the halal industry forward," he added.

Jamil proposed that instead of having a fixed sum for HDC, MoF could pull in a percentage of funds that are allocated under government agencies for the development of the halal industry.

"For example, MoF could allocate a small percentage from SME Bank to develop halal SMEs (small- and medium-sized entreprises) and a percentage from Mosti (Ministry of Science, Technology & Innovation, Malaysia) for halal R and D (research and design) purposes," he said.

Jamil said it would be ideal if HDC is able to operate like its peers, namely Biotech Corp.

HDC hopes to be a full-fledged one-stop centre that can provide services across the board, from advisory to financial assistance, he added.

"We need the government's intervention to nurture local halal players into bigger global players. Many local companies have the potential but lack the capacity-building to grow.

"We can no longer depend on being strong in certification and halal logo. We have to move beyond that and create a sustainable industry from this lucrative market," he said.

The global halal market is estimated at US$2.3 trillion (RM6.78 trillion), covering both food and non-food sectors.

HDC is organising a "Halal Transformation Programme" in Gambang, Pahang, this weekend.

More than 100 booths will be showcased at the event. There will be a seminar to create awareness on the potential of the halal market.

It will emphasise on halal entrepreneurship training and halal-related contract farming activities.

Prime Minister Datuk Seri Najib Razak will officiate at the event tomorrow and meet industry participants.

More than 10,000 visitors are expected to attend the two-day event