KEPALA BATAS: The ongoing conflicts in the Middle East, coupled with disruptions to critical global trade routes, present Malaysia with a unique opportunity to enhance its status as a reliable halal hub, stated Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi. These developments, he noted, have underscored vulnerabilities in global supply chains, emphasizing the necessity for Malaysia to cultivate a more robust and resilient halal ecosystem.
“The unrest in the Middle East, particularly affecting strategic routes like the Strait of Hormuz, has significantly disrupted global supply chains,” he remarked during an address on Tuesday (April 7).
“This upheaval has not only impacted the energy sector but has also triggered a ripple effect throughout the halal industry, including increased logistics costs, shipment delays, and uncertainty regarding market accessibility,” he elaborated.
Ahmad Zahid pointed out that halal products, especially perishable items and those requiring specific temperature controls, rely heavily on a stable and efficient supply chain.
He also highlighted that rising costs in energy and raw materials are further escalating production expenses across the sector. “In some cases, the cost of fertilizers alone can make up as much as 60% of production expenses, which directly affects the overall halal food value chain in the country,” he stated.
Despite these hurdles, he encouraged viewing the prevailing uncertainty as a strategic opportunity.
“This global unpredictability has, in fact, opened doors for Malaysia to solidify its role as a stable, trusted, and resilient halal hub,” he emphasized.
“Enhancing our ability to diversify export markets, fortify domestic supply chains, and optimize logistics efficiency will be crucial in ensuring the growth of our halal industry, even amid a challenging global landscape,” he noted.
Additionally, he stressed the importance of reducing reliance on external systems to build stronger internal capacities.
“Now is the time to transition from depending solely on the global system to developing our own organized and resilient capabilities,” he asserted during the groundbreaking ceremony for the second phase of the Penang Regional Development Authority (Perda) Halal Park development project in Kubang Menerong.
The RM33 million project will cover an area of 4.05 hectares and is part of a larger 48.56-hectare halal industrial initiative by Perda, aimed at strengthening the halal industry infrastructure in the state.
This new phase will feature 22 single-storey light industrial units, an administration office, a multipurpose hall, and a food complex with five shop units, among other facilities.
Construction is slated to commence in July, with plans for completion by July 2028. The initial phase, encompassing 16.19 hectares, was successfully completed in 2015.
In conclusion, the current geopolitical landscape highlights a pivotal moment for Malaysia. By leveraging these challenges, the nation can position itself as a leader in the halal industry, ensuring sustainability and growth in the face of uncertainties.
