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EUMMARIVE SYTUCXEHALAL INDUSTRYMASTER PLAN2030Prominent,VisibleandGlob a lise d H alal M alaysia

INTRODUCTIONThe Halal industry of today is strong and robust. There are many newand expanding opportunities for economic growth and consumersawareness on Halal products is increasing around the world.International organisations are beginning to embrace Halal valuesaligned with those practiced by Muslims, where the core values of Halalare consistent with the enhancement of social wellbeing, protection ofthe environment and ethics of business conduct.With a comprehensive Halal ecosystem, Malaysia sets the bar globallyas the reference for best practices in the development of Halalstandards and business processes through nurturing growth andparticipation of local businesses into the global Halal market.The Halal Industry Master Plan 2030 (HIMP 2030) was developed tocatalyse Malaysia’s strengths towards the development of its Halalindustry holistically. The theme ‘Prominent, Visible and GlobalisedHalal Malaysia’ depicts Malaysia’s goal to achieve socio economicdevelopment through leading the global Halal industry.The HIMP 2030 brings together an analysis of the Halal industry trendsand projections, both global as well as in Malaysia and asseses theindustry developments based on focus sectors. This Master Plan linedup developmental framework for Malaysia’s Halal industry and highlightsopportunities for Malaysia‘s socio economic growth in order to maximizepotential economic return over the next decade and beyond.

ACRONYMAIBIMAssociation of Islamic Banking Institutions MalaysiaASMAcademy Science MalaysiaDOSMDepartment of Statistics MalaysiaDSMDepartment of Standards MalaysiaEDAEconomic Development AuthorityFSQFood Safety and Quality DivisionGDPGross domestic productHDCHalal Industry Development CorporationIPAInvestment Promoting AgencyJAINState Islamic Religious DepartmentsJAKIMJabatan Kemajuan Islam MalaysiaJPKJabatan Pembangunan KemahiranKIHIMKonsortium Institut Halal IPT MalaysiaKPDNHEPKementerian Perdagangan Dalam Negeri dan Hal Ehwal PenggunaMAINState Islamic Religious CouncilsMAMPUMalaysian Administration Modernisation and Management Planning UnitMARAMajlis Amanah RakyatMATRADEMalaysia External Trade Development CorporationMDECMalaysia Digital Economy CorporationMHCMalaysia Halal CouncilMIDAMalaysia Investment Development AuthorityMOAMinistry of Agriculture and Agro-based IndustryMOEMinistry of EducationMOHRMinistry of Human ResourceMPIHMajlis Pembangunan Industri HalalMTAMalaysian Takaful AssociationMTDCMalaysian Technology Development CorporationNPRANational Pharmaceutical Regulatory AgencyPBTlocal authority (Pihak Berkuasa Tempatan)PNSPerbadanan Nasional BerhadPUNBPerbadanan Usahawan Nasional BerhadSCSecurities Commission MalaysiaSMECORPSME Corporation MalaysiaSSMSuruhanjaya Syarikat MalaysiaTERAJUUnit Peneraju Agenda Bumiputera

The Halal industry is a strong promoter of socioeconomic growth inMalaysia, and therefore efforts to improve governance, capacity buildingprogrammes, and promotion of the industry needs to be intensified.IMPORTANCE OFHALAL INDUSTRYMalaysia, Pioneer of theHalal IndustryMore than 40 years ofexperience in the developmentof the Halal industryHuge Global HalalMarket PotentialIncreasing DomesticDemandMalaysia is still a net importerof various products, includingHalal productsThere is an estimated 80% gapbetween demand and productionof global Halal productsMalaysian WelfareThe Halal industry providesbroader job opportunities andincreases the safety of productsEconomic WelfareHalal gives added value,promotes trade and investmentHALAL INDUSTRY MASTER PLAN 2030 Executive Summary1

By 2030, the global Halal market is expected to grow to USD 5.0 trillion,while domestic growth is estimated to reach USD 113.2 billion. With acomprehensive Halal ecosystem, Malaysia is endowed with a competitiveadvantage to fully capitalise this timely opportunity.GLOBAL HALAL MARKET2018USD 3.1 Tril2018USD 0.8 Tril2018USD 0.3 TrilMiddleEastern &North AfricaEurope &EurasiaGlobalHalalMarket2030USD 5.0 Tril2030USD 1.2 TrilNorthAmerica2018USD 0.2 Tril2030USD 0.5 Tril2018USD 0.2 Tril2018USD 1.6 TrilSubSaharanAfricaAsiaPasific2030USD 0.4 TrilNotes:Based on the proportion consumption of the total Halal market by the Muslim population22030USD 0.3 TrilHALAL INDUSTRY MASTER PLAN 2030 Executive Summary2030USD 2.8 Tril

MALAYSIAN HALAL MARKET2018USD 68.4 BillMalaysiaHalalMarket2030USD 113.2 BillCORE SECTORS2030USD 10.5 Bil2030USD 85.2 BilFood &Beverage2018USD 7.0 Bil2018USD 51.9 BilCosmetic &PersonalCare2030USD 11.7 Bil2030USD 5.9 BilOthers1Pharmaceutical2018USD 3.4 Bil2018USD 6.2 BilNotes:Based on the proportion consumption of the total Halal market by the Muslim population1Includes relevant/ emerging sectors (e.g. modest fashion, medical devices, medical tourism)HALAL INDUSTRY MASTER PLAN 2030 Executive Summary3

The HIMP 2030 focuses on strengthening and internationalising Halalecosystem in Malaysia by re-evaluating and improving existing initiatives,as well as introducing high impact initiatives in line with the Government’sdirection.MALAYSIA’s HALAL ECOSYSTEMThe Halal Ecosystem is a network of components involved ingrowth cycle and delivery of Halal products or servicescontributing to the overall socio-economic development. Eachcomponent in the ecosystem has its own unique activities thatare interrelated with each other, creating a constant evolvingrelationship towards sustainability.4HALAL INDUSTRY MASTER PLAN 2030 Executive Summary

With a foundation built on the strength ofMalaysia’s Halal ecosystem, the goals of theHIMP 2030 are both realistic and achievable.WHY HIMP 2030 ?Addressunsettledissues andchallengesRe-evaluate andimprove existingplansTo achieve amore substantialcontribution toMalaysia’s socioeconomyRe-alignwith aspirationsof the MalaysianGovernmentAchievements to Dateas of December 20187.8%RM 40.8 bil8.7%Contributiontowards GrossDomestic Output1,4011,600RM 50 bilNumber of SMEHalal ExportersHalal ExportValue350,000RM 13.3 bil330,000Number ofJobs CreatedRM 15 bilInvestments Valuein Halal ParksHALAL INDUSTRY MASTER PLAN 2030 Executive Summary5

7 Strategic Thrusts of HIMP 2030 aim to encourage quality,innovative and competitive Halal industry offerings; develophigh –performing home grown enterprises; and spur sustainable,balanced and inclusive socio-economic growth.HIMP 2030 STRATEGIC FRAMEWORK01.Enhancing HalalIndustry-friendlyPolicy andLegislation07.Facilitating MoreCompetitiveBumiputeraParticipation In theHalal Industry02.Creating New andBigger Market Spacesfor Malaysia’s HalalProducts andServicesFood &BeverageCosmetics &Personal CareU TC ODYOISEKEGLELIBOBALSVIM IS S ON06.Producing MoreHome-grownHalal ChampionsVISION:MALAYSIA ASTHE GLOBALLEADER OFTHE ngThoughtLeadership6HALAL INDUSTRY MASTER PLAN 2030 Executive Summary04.Enhancing Qualityand IntegratedInfrastuctureDevelopment03.Establishing aLarger Pool of HalalIndustry Experts toMeet Global Needs

Malaysia’s Halal industry must aspire to move into higher-value sectors bycontinuously pushing the boundaries of knowledge, exploring new frontiersand influencing consumer trends, with a strong willingness to invest ininnovation and new product development.EMERGING SECTORSEmerging opportunities in the Halal industry include new economic sectorswhich are increasingly embracing Halal values in their operations.Modest FashionMedical TourismMedical DevicesHALAL INDUSTRY MASTER PLAN 2030 Executive Summary7

Ke y e n a b l e r s a r e p u t i nplace to support smoothimplementation of HIMP 2030KEY ENABLERSHalal Traceability ServicesStrong focus of encouraging Halal innovation through the technologicaladvancement of IR 4.0, IoT, Blockchain, FinTech and Big Data to ensure Halalproducts go through an entirely verified supply chainTalent Development / Upskilling ServicesCompetent Halal professionals and Halal experts to support comprehensiveand future developments of the Halal ecosystem through the alignment ofthe Halal occupational frameworkStandards, Accreditation and Certification ServicesRobust standards, accreditation and certification services ensuring theintegrity of the Halal supply chain, in addition to ensuring global trust inMalaysia’s accreditation and compatibility with Halal emerging marketsIslamic FinanceAccessibility to financial support for players in the Halal supply chainencouraging and supporting participation growth in the Halal industry throughthe innovation and promotion of a hybrid Islamic financing structureLogistics ServicesDedicated logistics services, from sourcing of raw materials to reaching theconsumer (i.e., farm to fork), to avoid cross-contamination thus ensuring thesafety and quality of Halal certified products8HALAL INDUSTRY MASTER PLAN 2030 Executive Summary

Out of the 42 initiatives formulated, 5 were identified as Super Catalyticlarge-scale transformative initiatives benefiting industry players at alllevel aimed at shifting the trajectory of the Halal industry’s growth, andsignificantly advancing a broad cross-section of the industry.HIMP 2030 SUPER CATALYTICINITIATIVESMuamalatFundHalalAdvancementin lFrameworkTargeted Beneficiaries :LLC/MNCSMEMICRO ENTERPRISESHALAL INDUSTRY MASTER PLAN 2030 Executive Summary9

Majlis Pembangunan Industri Halal (MPIH) plays a role to improve governancestructure in the development of the Halal industry by focusing on four keysuccess areas. 1 : Formulate Strategic Policy and Monitoring; 2 : CertificationEnhancement and Enforcement; 3 : Standard Development and Traceability;4 : Industry Development and Entrepreneurial Culture.MAJLIS PEMBANGUNAN INDUSTRI HALALMajlis Pembangunan Industri HalalChairperson: Deputy Prime MinisterSecretarySecretariatSecretary Generalof MEAMembers MOF MITI JPM (Religious Affairs) MEA MED MESTECC KPDNHEP MOA MOH MOE MOHR KPKT MOTAC Chief Secretary General of Malaysia Attorney General Chairman of State Islamic CouncilsAction Committee onCertification & EnforcementSecretariat:Lead Agency:Action Committee onIndustry Development &EntrepreneurshipLead Agency:Ministry of EntrepeneurDevelopment10Secretariat:Lead Agency:Ministry of InternationalTrade & IndustryJPM (Religious Affairs)Secretariat:Action Committee onStandard DevelopmentHALAL INDUSTRY MASTER PLAN 2030 Executive SummaryAction Committee onInternationalisationSecretariat:Ministry of InternationalTrade & IndustryLead Agency:

The HIMP 2030 targets 4 major outcomes: a robust and diversified domesticHalal industry; ease of doing business; competitive business participationand internationalisation of the Halal Malaysia brand.HIMP 2030 PERFORMANCE INDICATORThe Halal Industry’s contribution towards overall GDP20302018 7.4% 11%GDP(RM 107 bil)GDP(RM 266 bil)GDP IndicatorsCumulative HALMASInvestmentValue AddValue to consumers(Gross output lessinputs, “economic profit”)Halal ExportValue of exportsProductivity IndicatorsRevenue“Gross output”(industry revenue) earnedby Halal businessesEmployeesNumber of employeesin the industry2018202020252030Phase 1aPhase 1bPhase 2RM 15.3 bilRM 19.6 bilRM 25.0 bilPhase 1aPhase 1bPhase 2RM 76.0 bilRM 126 bilRM 171 bilPhase 1aPhase 1bPhase 2RM 40 bilRM 46 bilRM 56 bilRM 70 bil2018202020252030Phase 1aPhase 1bPhase 2RM 335 bilRM 497 bilRM 684 bilPhase 1aPhase 1bPhase 20.41 mil0.56 mil0.71 milRM 13.9 bilRM 59.7 bilRM 275 bil0.35 milHALAL INDUSTRY MASTER PLAN 2030 Executive Summary11