HALAL INDUSTRY MASTER PLAN 2030

1 EXECUTIVE SUMMARY Prominent, Visible and Globalised HALAL MalaysiaHALAL INDUSTRYMASTER PLAN2030 INTRODUCTIONThe HALAL INDUSTRY of today is strong and robust. There are many new and expanding opportunities for economic growth and consumers awareness on HALAL products is increasing around the world. International organisations are beginning to embrace HALAL values aligned with those practiced by Muslims, where the core values of HALAL are consistent with the enhancement of social wellbeing, protection of the environment and ethics of business a comprehensive HALAL ecosystem, Malaysia sets the bar globally as the reference for best practices in the development of HALAL standards and business processes through nurturing growth and participation of local businesses into the global HALAL HALAL INDUSTRY MASTER plan 2030 (HIMP 2030)

2 Was developed to catalyse Malaysia s strengths towards the development of its HALAL INDUSTRY holistically. The theme Prominent, Visible and Globalised HALAL Malaysia depicts Malaysia s goal to achieve socio economic development through leading the global HALAL INDUSTRY . The HIMP 2030 brings together an analysis of the HALAL INDUSTRY trends eht sesessa dna aisyalaM ni sa llew sa labolg htob ,snoitcejorp dnaindustry developments based on focus sectors. This MASTER plan lined up developmental framework for Malaysia s HALAL INDUSTRY and highlights opportunities for Malaysia s socio economic growth in order to maximize potential economic return over the next decade and of Islamic Banking Institutions Malaysia ASMA cademy Science Malaysia DOSMD epartment of Statistics MalaysiaDSMD epartment of Standards Malaysia EDAE conomic Development Authority FSQFood Safety and Quality Division GDPG ross domestic productHDCH alal INDUSTRY Development CorporationIPAI nvestment Promoting Agency JAINS tate Islamic Religious DepartmentsJAKIMJ abatan Kemajuan Islam

3 MalaysiaJPKJ abatan Pembangunan KemahiranKIHIMK onsortium Institut HALAL IPT MalaysiaKPDNHEPK ementerian Perdagangan Dalam Negeri dan Hal Ehwal PenggunaMAINS tate Islamic Religious CouncilsMAMPUM alaysian Administration Modernisation and Management Planning UnitMARAM ajlis Amanah RakyatMATRADEM alaysia External Trade Development CorporationMDECM alaysia Digital Economy CorporationMHCM alaysia HALAL CouncilMIDAM alaysia Investment Development AuthorityMOAM inistry of Agriculture and Agro-based IndustryMOEM inistry of EducationMOHRM inistry of Human ResourceMPIHM ajlis Pembangunan Industri HalalMTAM alaysian Takaful AssociationMTDCM alaysian Technology Development CorporationNPRAN ational Pharmaceutical Regulatory AgencyPBTlocal authority (Pihak Berkuasa Tempatan)

4 PNSP erbadanan Nasional BerhadPUNBP erbadanan Usahawan Nasional BerhadSCSecurities Commission MalaysiaSMECORPSME Corporation MalaysiaSSMS uruhanjaya Syarikat MalaysiaTERAJUUnit Peneraju Agenda BumiputeraIMPORTANCE OFHALAL INDUSTRY Malaysia, Pioneer of the HALAL IndustryMore than 40 years of experience in the developmentof the HALAL industryIncreasing Domestic DemandMalaysia is still a net importer of various products, including HALAL productsMalaysian WelfareThe HALAL INDUSTRY provides broader job opportunities and increases the safety of productsHuge Global HALAL Market PotentialThere is an estimated 80% gap between demand and production of global HALAL productsEconomic WelfareHalal gives added value, promotes trade and investmentThe HALAL INDUSTRY is a strong promoter of socioeconomic growth in Malaysia, and therefore efforts to improve governance, capacity building programmes, and promotion of the INDUSTRY needs to be INDUSTRY MASTER plan 2030 Executive SummaryBy 2030.

5 The global HALAL market is expected to grow to USD trillion, while domestic growth is estimated to reach USD billion. With a comprehensive HALAL ecosystem, Malaysia is endowed with a competitive advantage to fully capitalise this timely HALAL MARKETG lobalHalalMarketMiddle Eastern & North AfricaEurope & EurasiaNorth AmericaAsia PasificSub-Saharan Africa2018 USD Tril2018 USD Tril2018 USD Tril2018 USD Tril2018 USD Tril2018 USD Tril2030 USD Tril2030 USD Tril2030 USD Tril2030 USD Tril2030 USD Tril2030 USD TrilNotes: Based on the proportion consumption of the total HALAL market by the Muslim population2 HALAL INDUSTRY MASTER plan 2030 Executive Summary2030 USD Bill2030 USD Bil2030 USD Bil2030 USD Bil2030 USD Bil2018 USD Bil2018 USD Bil2018 USD Bil2018 USD BilNotes.

6 Based on the proportion consumption of the total HALAL market by the Muslim population1 Includes relevant/ emerging sectors ( modest fashion, medical devices, medical tourism) CORE SECTORSFood & BeveragePharmaceuticalOthers1 Cosmetic & Personal CareMalaysiaHalalMarket2018 USD BillMALAYSIAN HALAL MARKET3 HALAL INDUSTRY MASTER plan 2030 Executive SummaryThe HALAL Ecosystem is a network of components involved in growth c ycle and deliver y of HALAL produc ts or ser vices contributing to the overall socio-economic development. Each component in the ecosystem has its own unique activities that are interrelated with each other, creating a constant evolving relationship towards s HALAL ECOSYSTEMThe HIMP 2030 focuses on strengthening and internationalising HALAL ecosystem in Malaysia by re-evaluating and improving existing initiatives, as well as introducing high impact initiatives in line with the Government s INDUSTRY MASTER plan 2030 Executive SummaryWHY HIMP 2030 ?

7 Achievements to Dateas of December 2018Re-evaluate and improve existing plansAddress unsettled issues and challengesTo achieve a more substantial contribution to Malaysia s socio-economyRe-align with aspirations of the Malaysian GovernmentContribution towards Gross Domestic ,401350,000RM bilRM ,600330,000RM 15 bilRM 50 bilHalal Export ValueNumber of SME HALAL ExportersNumber of Jobs CreatedInvestments Value in HALAL ParksWith a foundation built on the strength of Malaysia s HALAL ecosystem, the goals of the HIMP 2030 are both realistic and INDUSTRY MASTER plan 2030 Executive SummaryHIMP 2030 STRATEGIC FRAMEWORK7 Strategic Thrusts of HIMP 2030 aim to encourage quality, innovative and competitive HALAL INDUSTRY offerings; develop high performing home grown enterprises.

8 And spur sustainable, balanced and inclusive socio-economic :MALAYSIA ASTHE GLOBALLEADER OFTHE HALALINDUSTRYC osmetics &Personal HalalIndustry-friendlyPolicy New andBigger Market Spacesfor Malaysia s HalalProducts MoreCompetitiveBumiputeraParticipation In theHalal a Larger Pool of HalalIndustry Experts toMeet Global Qualityand MoreHome-grownHalal ChampionsPharmaceuticalsFood &BeveragePROMINENTGLOBALISEDVISIBLEKEY OUTCOMESMISSON6 HALAL INDUSTRY MASTER plan 2030 Executive SummaryEMERGING SECTORSE merging opportunities in the HALAL INDUSTRY include new economic sectors which are increasingly embracing HALAL values in their DevicesModest

9 FashionMedical TourismMalaysia s HALAL INDUSTRY must aspire to move into higher-value sectors by continuously pushing the boundaries of knowledge, exploring new frontiers and influencing consumer trends, with a strong willingness to invest in innovation and new product development. 7 HALAL INDUSTRY MASTER plan 2030 Executive SummaryKEY ENABLERSK e y e n a b l e r s a r e p u t i n p l a c e t o s u p p o r t s m o o t h implementation of HIMP 2030 Islamic FinanceStandards, Accreditation and Certification ServicesLogistics ServicesHalal Traceability ServicesTalent Development / Upskilling ServicesStrong focus of encouraging HALAL innovation through the technological advancement of IR , IoT, Blockchain, FinTech and Big Data to ensure HALAL products go through an entirely verified supply chainRobust standards.

10 Accreditation and certification services ensuring the integrity of the HALAL supply chain, in addition to ensuring global trust in Malaysia s accreditation and compatibility with HALAL emerging marketsAccessibility to financial support for players in the HALAL supply chain encouraging and supporting participation growth in the HALAL INDUSTRY through the innovation and promotion of a hybrid Islamic financing structure Dedicated logistics services, from sourcing of raw materials to reaching the consumer ( , farm to fork), to avoid cross-contamination thus ensuring the safety and quality of HALAL certified productsCompetent HALAL professionals and HALAL experts to support comprehensive and future developments of the HALAL ecosystem through the alignment of the HALAL occupational framework8 HALAL INDUSTRY MASTER plan 2030 Executive SummaryHIMP 2030 SUPER CATALYTIC INITIATIVESOut of the 42 initiatives formulated, 5 were identified as Super Catalytic- large-scale transformative initiatives benefiting INDUSTRY players at all level aimed at shifting the trajectory of the HALAL INDUSTRY s growth.