Malaysia Hotline: +603- 2141 8908
The
halal economy — encompassing everything from banking and finance to food and
beauty products — is on the rise. Halal refers to what is permitted or lawful
in Islam, and it is used in reference to food and lifestyle products which
include clothing, pharmaceutical items as well as cosmetics and personal care.
According
to a Thomson Reuters report, State of the Global Islamic Economy 2014-2015, the
global expenditure of Muslim consumers on food and lifestyle sectors grew 9.5
per cent from previous years’ estimates to US$2 trillion (RM8.3 trillion) in
2013 and is expected to reach US$3.7 trillion by 2019, at a compound annual
growth rate of 10.8 per cent.
“The
customers of Islamic economy are universal with shared values. At the highest
level, values-based customer needs that are driving these Islamic economy
sectors include Islamic/ethical financing, lawful and pure food, modest
clothing, family-friendly travel, gender interaction considerations, and
religious practices. “These needs also extend to business practices that seek
Islamic business financing, investment and insurance services (takaful),” the
report said.
According
to the Malaysia External Trade Development Corporation Halal Unit, Malaysia’s
total halal exports in the first half of last year was valued at RM19.5
billion, an increase of 3.6 per cent from the first half of 2014. The
contribution of halal products to the country’s overall exports during the
period stood at six per cent. “Halal food and beverage as well as cosmetics and
personal care were the only segments that reported an increase in exports
during the period while halal ingredients, palm oil derivatives and industrial
chemicals recorded a decrease,” it said.
Many
well-known and established international brands are now considering adding
halal cosmetics and personal care into their line, as the global market for the
segment totals RM695 billion. The Thomson Reuters report said global Muslim
spending on cosmetics increased one per cent to US$46 billion globally in 2013.
This spending was 6.78 per cent of the global sector expenditure and is
expected to reach US$73 billion by 2019.
“Top
countries with Muslim cosmetics consumers are the United Arab Emirates (US$4.9
billion), Turkey (US$4.4 billion), India (US$3.5 billion), and Russia (US$3.4
billion), based on 2013 estimates,” it said. The report added that Malaysia,
Egypt and Singapore lead a combined halal pharmaceuticals and cosmetics
indicator that focuses on the health of the halal pharmaceutical and cosmetics
ecosystem a country has relative to its size.
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