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As the central coordinator tasked with facilitating the growth of Malaysia's halal economy, Halal Development Corporation Bhd (HDC) has implemented strategic initiatives to nurture local halal companies to become champion, and position the country as a leader in the global halal industry.

One such initiative is the Halal Home Grown Champion — Sourcing Partnership Program (HSPP) that helps small and medium enterprises (SMEs) scale up to international standards.

The HSPP's SME development facilitation service has recorded notable successes since its introduction in 2020.

Four main scopes of facilitation are offered under the HSPP.

The first is the international certification for obtaining critical certifications for exports, such as the Hazards Analysis Critical Control Point (HACCP) and the ISO 22000.

This six-month facilitation is to assist manufacturers to improve internal systems and processes to qualify for international certifications and to eventually gain the confidence and trust of clients.

The second type of facilitation is for digital branding, a six-month programme to assist participating SMEs to raise brand awareness and visibility. The facilitators includes working closely with the SME's marketing team and coach them on ways to optimise online campaigns and target a broader audience effectively to boost brand visibility and online sales channels.

The third facilitation is for product development, with a focus on packaging. The five-month programme aims to improve product packaging based on the buyer's requirements. Through HSPP, SMEs can develop more appealing and high-quality packaging suitable for domestic and export, allowing the companies to penetrate new markets around the world.

Finally, HDC's newest facilitation programme is the training and development for environment, social and governance (ESG). As global markets increasingly prioritise sustainability, HDC's ESG training and development programme helps SMEs align with international standards on sustainability, enabling them to tap markets that prioritise ESG factors.

"For HSPP 2.0, we have included the new scope on ESG practices, which is crucial for domestic SMEs looking to penetrate the globalised market," said HDC chief executive officer Hairol Ariffein Sahari.

"Another scope that we have improved is the international certification facilitation. Previously, this facilitation focused solely on audits to obtain either HACCP or ISO 22000 certification. Starting in 2024, we have introduced a consultancy service as part of the program," he added.

Hairol recalled that HSPP initially focused on only one scope of facilitation but had since expanded based on the prevailing and future needs of halal SMEs.

"Our main objective is to strengthen the global competitiveness of local halal products and services. With better quality products and services, these SMEs can expect increased opportunities and collaborations from larger businesses to perhaps become suppliers for large global retailers and multinational corporations."

This increase in sectorial competitiveness and marketability of Malaysian halal products will indirectly push the SMEs to be more export-oriented. With the accelerated business growth, the SMEs can become the de facto halal champions in the targeted sectors, further improving the halal supply chain ecosystem in Malaysia.

"In this sixth year since the first offering of SME development facilitation under HSPP 1.0, I am happy to announce that to date, the HSPP has helped almost 200 companies on their journey towards internationalisation," said Hairol.

"With multiple successes, from increasing sales revenue, new proposal requests and new offers from larger businesses and multinational corporations to successfully exporting their first halal shipment, all these are tangible evidence of the effectiveness of HDC's HSPP," he added.

HSPP is open to Malaysian-registered companies with valid halal certification. They are required to have an annual sales of between RM300,000 and RM50 million, and have been in operation for the last three years.

Source https://www.nst.com.my/business/sme/2025/01/1165241/boosting-local-halal-smes-international-reach