Malaysia appears to help standardize the halal economy as Southeast Asia and the Middle East build new “smart partnerships”
Consumers in the Islamic world are becoming wealthy They want to buy It reflects their values. It promotes the growth of goods and services in line with the “halal economy”, Islamic principles. However, as some countries now have their own accreditation bodies and logos, there is potential disruption as they grow.
Malaysian Deputy Prime Minister Ahmad Zahid Hamidi wants to expand the “halal economy.” Talk in luck At the ASEAN-GCC Economic Forum held in Kuala Lumpur on Wednesday, he agreed that the Association of Southeast Asian Countries (ASEAN) has a common halal logo for ASEAN’s 10 countries and revealed that they will discuss global halal accreditation in Riyadh in November.
The GCC consists of six countries, including Saudi Arabia, Qatar and the United Arab Emirates.
“Halal is not just F&B, but pharmaceuticals, banking and insurance. The way of life for Muslims is halal and I would like to share this knowledge,” Ahmad Zahid said.
He commented on the panel on promoting investments in ASEAN and GCC, along with Jing Guangjun, chairman of Guangzhou Industrial Investment Holdings Group.
Halal refers to products that are deemed acceptable under Islam, and the demand for halal goods and services is poised to grow. Globally, Muslim consumers spent $2.29 trillion on halal products and services in 2022, according to a study by Salaam Gateway, the Dubai Headquarrad organization that tracks the world’s Islamic economy. Salaam Gateway predicts spending will rise to $3.1 trillion by 2027.
Ahmad Zahid is chairman of Malaysia’s Halal Industry Development Council. The country is promoting the development of the halal economy in Southeast Asia, and its largest bank, Maybank, is the largest bank in the region. Provider of Islamic finances. (In particular, Sharia-compliant finance will not charge interest, which is prohibited under several interpretations of Islamic law).
Malaysia and Indonesia are both Muslim majority countries, with other Southeast Asian countries such as Thailand, the Philippines and Singapore having important Muslim populations.
The majority of Muslim countries have moved from low-income to middle-income positions. These increasingly wealthy consumers want to see their religious and cultural values reflected in what they buy, encourage the growth of local businesses and startups, and offer halal alternatives to products such as cosmetics and fashion.
Beyond the Halal economy
Apart from the expansion of the halal economy, Malaysia, the current ASEAN chairman, is promoting a partnership that connects the Gulf Cooperation Council (GCC), ASEAN and China.
Ahmad Zahid said ASEAN does not appear to be “inwards” and that both Malaysia and ASEAN are aiming to “get forward in a smart partnership” with the GCC and China under Prime Minister Anwar Ibrahim.
He added that ASEAN and China have been working together for years and the two will benefit from adding GCC as a new partner.
One potential area of collaboration that could benefit China, ASEAN and GCC could be AI. “Every country, every region should seize the opportunity to share new technologies,” Ahmad Zahid said. “We can see the growth of the GCC countries. They are discussing and looking at it internally, as well as looking at ASEAN as a new region where they invest and share technology research results.”
The GCC consists of six countries, including Saudi Arabia, Qatar and the United Arab Emirates. ASEAN is made up of 10 countries in Southeast Asia.
The UAE is one country at the forefront of trying to develop AI-related capabilities and technologies in the region, particularly through the AI investment holding company G42.
This story was originally introduced Fortune.com