HDC: Demand For Halal Products Remains Strong Despite Economic Downturn
The demand for halal products remains positive despite the global economic downturn amid plunging commodity prices, the Halal Industry Development Corp (HDC) said.
Its Chief Executive Officer, Datuk Seri Jamil Bidin said Malaysia’s halal sector recorded a stellar performance last year, growing about 30 per cent year-on-year (y-o-y), dominated by the food and beverage (F&B) industry.
“This is one sector that I think is crisis free. I believe when there is a crisis, people tend to eat more,” he told a press conference after accompanying Deputy International Trade and Industry Minister Datuk Ahmad Maslan on a tour of Ramly Food Processing Sdn Bhd here today.
They were received by Ramly Group Founder and Managing Director Datuk Ramly Mokni.
In the first nine months of 2015, the export value of halal products increased to RM31.1 billion from RM28 billion in the corresponding period of 2014, with China, Singapore, the US, Indonesia, and the Netherlands being the top five markets.
The value for the whole year is expected to increase to RM40 billion.
The top six halal products sectors were F&B, halal ingredients, palm oil derivatives, cosmetics and personal care, industrial chemicals, and pharmaceuticals.
Jamil expects further growth of halal product export value from Malaysia under the Trans-Pacific Partnership Agreement (TPPA) as it would provide a special free-trade arrangement and greater market access among member states.
“It will encourage more intra-trade among TPP member states and I strongly believe that halal industry players will benefit from this arrangement,” he said, adding that the local halal industry would not be affected with the implementation of the TPPA as it was excluded from the negotiations.
He anticipates the TPPA would boost the growth of halal exports to more than 30 per cent.
For 2016, the export value is expected to hit RM50 billion with demand derived mostly from F&B and halal ingredients.