Opening China’s Halal markets to Malaysian SMEs

An Exchange of Memorandum of Understanding between Halal Industry Development Exchange of Memorandum of Understanding with Gov of Malaysia, Bank of China and Halal Industry Development CorporationCorporation (HDC), Unit Pembangunan SME dan Mikro Kredit (SAME), under the Prime Minister’s Department, , and Bank of China (BOC) Malaysia.

Kuala Lumpur, 30th March 2016 – A new collaboration is set to double Malaysia’s halal exports to China in four years, further expanding China’s status as Malaysia’s largest export destination since 2009.

A memorandum of understanding will be signed between Halal Industry Development Corporation (HDC), SAME, a government SME-sector development agency, and Bank of China to contribute, together with other initiatives stipulated under Halal Industry Master Plan, to the overall increase in the number of Malaysian halal exporters from 800 today to 1,600 by 2020. It is expected that 100 SMEs will benefit from the collaboration each year.

The MoU will capitalise on long-standing strong economic and trade ties in the private sector between China and Malaysia, as both governments seek to develop mutual cooperation in the US$ 2.3 trillion global halal industry (excluding Islamic finance).

This collaboration’s main tasks are to create awareness on Malaysia’s wide array of halal products and services through direct engagement with the provincial governments of China and their high-potential industry players via a match-up with Malaysian halal exporters.

HDC and SAME’s roles as advisory channels will be at the forefront of ensuring that SMEs are well equipped with the correct knowledge and information via seminars and dialogues with their Chinese counterparts. Simultaneously, Bank of China will fill the needs of the SMEs in the areas of corporate lending, trade financing and other banking solutions in the halal industry in their foray into China’s vast markets.

With more than 10% of Malaysia’s impressive volume of halal exports already going to China, this initiative will further fill the world’s second largest economy’s growing demand for Malaysian halal products, with a focus on food and beverage, ingredients, and the palm oil derivatives sub-sectors.