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Image credit: Borneo Post Online

KOTA KINABALU: The State Government will identify a suitable location in Sabah to set up a new halal hub, especially Tawau which sits strategically along the borders of neighbouring Kalimantan, Indonesia. 

Assistant Industrial Development Minister Mohd Tamin Zainal said the Government will leverage on the relocation of the new Indonesian capital from Jakarta to East Kalimantan, which potentially yields economic spillovers through investments and bilateral trade. 

“In taking advantage of the economic potentials, the State Government will ensure that all economic activities, including the halal industry, will be given special focus so that Sabah continues to be an attractive investment destination in the region,” he said during question time at the State Legislative Assembly sitting, Wednesday. 

He was responding to Balung Assemblyman Datuk Hamild @Hamid Nasir who asked if the State Government will set up an industrial park that would be a halal hub in Tawau. 

Tamin added that Sabah’s wealth of natural resources, such as palm oil, aquaculture, fisheries and seaweed, is advantageous for developing the halal industry sector in the State. 

“These materials can be found in various geographical locations, including Tawau. 

“Therefore, in the long-term, the State Government will not only focus on developing the halal sector in existing strategic locations such as the Lahad Datu Palm Oil Industrial Cluster (POIC) or Kota Kinabalu Industrial Park (KKIP). 

“We will also look at developing the halal industry in other suitable places, including Tawau, based on its advantages, such as the supply of raw materials, market potential and strategic position, among others,” he said.

Tamin said the halal industry is expected to become a new growth sector, especially in driving the growth of small and medium enterprises (SME) and Sabah’s economy in the long-term. 

“Halal business opportunities that will be created include food and non-food processing activities as well as service sectors such as logistics, finance, banking, education and tourism,” he added. 

In 2020, the State’s halal industry contributed RM9.7 billion to the national Gross Domestic Product (GDP).

Last year, the Economic Planning Unit (EPU) projected that Malaysia’s halal industry will contribute 8.1 per cent to the national GDP and generate export revenue of RM56 billion in 2025, compared to RM30.6 billion in 2020.

Source: https://www.dailyexpress.com.my/news/203570/halal-hub-government-looking-for-suitable-location/