Small and medium-sized entrepreneurs (SMEs) should seize the lucrative potentials within the burgeoning global Halal market as it is the epitome of the Blue Ocean Strategy, a popular business strategy book first published in 2005 and written by W. Chan Kim and Renée Mauborgne of The Blue Ocean Strategy Institute at INSEAD.
He said that although Malaysia may be a bit behind as Halal food producers, it has done well in propagating the ideas and growing a global industry from scratch to one that is now worth in excess of USD 2 trillion a year.
The book estimates that the global Halal food market alone is worth US$720 billion (at 2009 prices), while Malaysia’s Halal food market is worth US$12.21 billion, or 6.3% of its nominal gross domestic product of US$192.82 billion (at 2009 prices).
“We are now seeing Malaysian SMEs exporting to GCC countries, when prior to this they would have no chance of doing so because they would have to compete with the Europeans and the rest. Because of Malaysia Halal standard and logo, they are now at par with the best of them,” he said.
Reiterating Government’s Commitment
In that same interview, Dato’ Mukhriz Mahathir also commented on the Malaysian Government’s commitment to the Halal agenda, especially since Halal isn’t one of the 12 National Key Economic Areas (NKEA).
Reasoning that the Halal agenda has now become much deeper and more complex and that Halal is actually prevalent in all of the government’s plans, he singled out two industries in which Malaysia could find a good niche – Halal hospitality and tourism as well as Halal logistics.