IN RESPONSE to the Malaysian government’s push to fortify the halal ecosystem, Hong Leong Islamic Bank Bhd (HLISB) has launched BizHalal, an Islamic banking solution designed for businesses, especially for small and medium enterprises (SMEs), in the halal industry.
The move aligns with the national agenda to strengthen the halal sector and contribute to overall economic development.
Through BizHalal, HLISB provides Shariah-compliant financing to assist halal businesses, along with halal advisory support from its in-house team of halal industry specialists.
The launch of BizHalal was marked by a memorandum of understanding (MOU) signing ceremony between HLISB and the Halal Development Corp (HDC), officially solidifying the bank’s role as HDC’s dedicated partner in promoting the halal industry.
The partnership underscores HLISB’s commitment to playing a pivotal role in fostering the growth and success of businesses, particularly SMEs, within the halal sector.
HLISB CEO Dafinah Ahmed Hilmi highlighted the strategic focus on the halal industry since 2018, with a commitment to revitalising the sector by supporting local halal SMEs and providing Halal financing through HDC.
“We see substantial growth potential in the halal industry, and we took steps to enhance our expertise by adding halal specialists to our team in 2023,” she said.
She highlighted the dedication to nurturing business growth, especially SMEs in the halal sector, through BizHalal.
The all-inclusive package, she said, in line with its brand promise, offers tailored halal advisory support and financing opportunities catered to customers’ specific needs.
The significance of the halal industry on a global scale is highlighted by HDC’s analysis, indicating demand reaching US$3 trillion (RM14.04 trillion) in 2020.
With Malaysia’s halal industry projected to expand to US$113.2 billion by 2030, contributing an expected GDP of 8.1% by 2025 through the Halal Industry Master Plan 2030 (HIMP 2030), there is a compelling need for increased investment and support in the domestic halal space.
HDC chairman Khairul Azwan Harun noted that the importance of collaborations with key industry players like HLISB to bridge the gap between demand and supply, particularly for SMEs.
“Out of the 10,000 halal-certified companies in Malaysia, only around 2,000 are exporters, and SMEs only contribute to about 10% of the total halal export value.
“However, there is an 80% gap between demand and supply in the halal market, underscoring the need for the country to foster new collaborations with key industry players like HLISB and create local halal champions who will inject new ideas and open new areas of investment within the halal space,” he said.
Khairul underscores HDC commitment to economic upliftment through digital solutions like the Halal Integrated Platform (HIP), a digital solution managing the entire Halal application journey efficiently.
Under the BizHalal programme, customers gain access to HLISB’s team of halal industry specialists, providing guidance through intricate processes and requirements for obtaining halal certification.
The halal advisory support is structured into three main segments — readiness assessment, advisory assistance, and engagement with the halal digital ecosystem.
Open to both existing and new-to-bank customers, whether already halal-certified or considered “halal potential,” BizHalal ensures that businesses receive tailored support.
Moreover, customers accepting any of the bank’s business financing facilities automatically qualify for the BizHalal programme.
Source: https://themalaysianreserve.com/2024/03/19/hong-leong-islamic-launches-bizhalal-to-support-smes/