KUALA LUMPUR: HSBC Amanah Malaysia BHd has inked a memorandum of understanding (MoU) with the Halal Development Corp (HDC) to collaborate and support HDC as they embark on their new Greater Islamic Economy initiative comprising Islamic economy development tools or muamalat.
As a leading international Islamic financial institution, HSBC Amanah will also continue to facilitate programmes and financial facilities to help spur the growth of the halal export market within the Asia-Pacific region.
According to HDC, Malaysia’s 2021 halal export performance rose by 19% to RM36.3 billion from RM30.5 billion a year earlier while global consumption of halal goods and services is expected to grow at 3.5% annually to reach US$2.4 trillion (RM10.9 trillion) by 2024, largely driven by the fast-growing Muslim population.
HSBC Amanah is committed to deliver the intended outcomes of syariah through practices, conduct and offerings that generate positive and sustainable impact to the economy, community and environment, consistent with the HSBC Amanah’s sustainable return and long term interest. In parallel with the MoU, this collaboration seeks to facilitate Islamic finance activities in the halal industry either for the local market or other international markets for businesses that prioritises Islamic finance.
“These numbers are proof of the importance of the halal industry to the Malaysian economy, despite the challenges posed by the Covid-19 pandemic. In fact, this year’s first half halal export performance climbed by 75.2% compared to the same period last year which is equivalent to RM30.3 billion,“ said HDC CEO Hairol Ariffein Sahari.
He said based on these current numbers, it appears the halal industry is recovering sooner than expected. In fact, halal exports for this year are anticipated to surpass RM42 billion, above pre-pandemic levels.
“Our newly launched Greater Islamic Economy initiative and this collaborative and synergistically aligned effort between HDC and HSBC Amanah, is key to providing our Halal Integrated Platform (HIP) members with the right financial facilities and development tools as they look to expand their presence in the halal export market within the Asia-Pacific region. Additionally, as we kick-start our Greater Islamic Economy initiative, we believe that this new partnership will help to impactful increase the number of halal certified businesses in Malaysia,” said Hairol Ariffein.
HSBC Amanah CEO Raja Amir Shah Raja Azwa said connecting customers internationally is what HSBC does best.
“Our greatest strength is our ability to bridge capital and trade flows between the major economies of the world. Through this MoU with HDC, HSBC Amanah will be able to strategically support businesses who are on HDC’s Halal Integrated Platform (HIP) who intend to expand internationally.”
Raja Amir also shared that the timing for this MoU could not be better, echoing the pace of an ongoing global economic recovery.
“This collaboration will definitely unleash the potential for the multi-trillion-dollar halal industry to facilitate the Malaysia economy as well as help rejuvenate the global economy,“ he said.
