Saudi Arabia finished in the top five at the Malaysia International Halal Showcase (MIHAS 2024), which took place in Kuala Lumpur from September 17 to 20. The Malaysia External Trade Development (MATRADE) Corp. and the Ministry of Investment, Trade, and Industry organized this event, intending to grow the halal industries in Malaysia and the 66 participating countries—China, Indonesia, Saudi Arabia, South Korea, and Thailand. Saudi Arabia is represented at this event with 38 booths and two buyers. Regarding Saudi Arabia's involvement, Reezal Merican, Chairman of MATRADE, expressed optimism that trade relations between Malaysia and Saudi Arabia will continue to grow due to each nation's dedication to growing the halal sector, which aligns with MIHAS's goals.
Malaysia's Minister of Investment, Trade, and Industry, Zafrul Abdul Aziz, stated that the country's halal exports are expected to reach approximately RM 55 billion (US$ 13 billion) in 2023. This condition is met for two years in a row when halal food exports exceed RM 50 billion. Food and drink accounted for the majority of export values in 2023, rising by 5% to RM 29.37 billion. Additionally, Abdul Aziz said that the Government of Malaysia is expected to reach US$5 trillion by 2030, while MIHAS 2024 aspires for 3.5 billion in sales. Moreover, MIHAS 2023 set a Guinness World Record by drawing 38,566 attendees to become the highest attendance at a Halal trade exhibition. From this position, Malaysia hopes to establish MIHAS as one of the world's most significant halal exhibitions.
As of June, Saudi Arabia had 19 investment projects approved, totaling US$ 1.65 billion, with an estimated 2,570 jobs expected to be created in Malaysia. These projects are from a variety of industries, including food processing, electronics, and pharmaceuticals. Additionally, four manufacturing projects worth US$ 53 million and 717 employees have been sponsored by Saudi funding. By firm, some significant businesses have made investments in Malaysia, including AJ Biologics, Al Rajhi Group, and Saudi Aramco. With the largest halal food market in the Middle East, valued at US$45 billion, Malaysia can take advantage of new trade opportunities.
Assessment
Malaysia is one of the largest players in the halal industry market. With the population being dominated by Muslims, Malaysia shows sustained growth in the halal industry. Data shows that as the global halal market will grow to US$ 5 trillion by 2030, the Malaysian halal industry will reach US$ 113.3 billion. With strong expectations and religious values, Malaysia is an ideal partner of Saudi Arabia as one of the most prominent Muslim countries with a king who is also a “Custodian of Two Holy Cities." The partnership between Saudi Arabia and Malaysia will become a mutually beneficial relationship because Malaysia will be able to provide goods that align with the preferences of Saudi Arabia’s consumers while still upholding halal principles. Data shows that Malaysia’s main strength is its food exports. On the other hand, Saudi Arabia has several investment projects that Malaysia needs for the economic development of this country. This condition becomes an example of a country with a mature halal industry with a strong market and sufficient knowledge of halal values.
