Financial Incentives for Malaysian Halal Business
Standard Chartered Saadiq has launched a Shariah-compliant proposition termed as ‘Halal360’ to support local businesses thrive within the global halal eco-system.
The financial incentives are accorded to halal SME exporters in the form of attractive foreign exchange rates on export proceeds, preferential pricing on current and savings accounts and lower rates on business instalment financing programmes.
In addition, Malaysian SMEs and large corporates can gain access to Standard Chartered Saadiq’s full suite of Shariah-compliant trade financing, liquidity management and working capital solutions to meet their local and cross-border requirements.
The launch was witnessed by Yang Berbahagia Datuk Wan Suraya Wan Mohd Radzi, Secretary General, Ministry of Entrepreneur Development and Cooperatives. Datuk Wan Suraya said, “To achieve the spirit of a holistic halal economy that is ethical and sustainable, it is essential to ensure that Shariah compliance prevails in the entire product or service supply chain of an organisation. As a result, these Islamic values have a universal appeal making many halal products and services equally attractive to both Muslim and non-Muslim consumers. In this regard, Shariah-compliant financing is key to completing operational integrity and unlocking new sources of ethical and economically viable funding.”
Worldwide, the global demand for halal products will continue to increase as the halal market has expanded from food and beverage products to cosmetics, pharmaceuticals, modest fashion and halal tourism.
It is projected that the global halal industry is set to grow to USD 3.1 trillion by 2023 presenting ample opportunities for Malaysian companies to be part of this ever-growing market.
However, Bank Negara Malaysia reports that only 54.1 percent of halal businesses are bank-financed, and of this, less than a quarter is in the form of Islamic finance.
Abrar A. Anwar, Managing Director and Chief Executive Officer of Standard Chartered Malaysia said, “Over the years, there is growing awareness of halal tayyab which calls for Shariah compliance to be assessed throughout the entire supply chain of a halal business. This poses an equally growing need for utilising Islamic financial services to ensure end-to-end Shariah compliance in the operations of halal businesses. By capitalising on the synergies between the halal industry and Islamic finance, we can foster a truly halal economy”.
“As a Bank that has grown with the country over the last 145 years, we have a deep obligation to help facilitate and contribute to Malaysia’s growth in line with our purpose of driving commerce and prosperity through our unique diversity,” added Abrar.
Standard Chartered Saadiq is the first international Bank to offer Islamic financial services in Malaysia in 1998. It is the only international Islamic bank with a network spanning across Asia, Africa and Middle East that provides an unparallel network advantage to clients seeking access to new markets. Through its network, the Bank is poised to be a key driver in facilitating business matching opportunities for local businesses in their global expansion.
Halal360 offers the right solutions at each step of the business cycle, whether they trade within one country or across the world.