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Marketing In Asia > Blog > Marketing > Opinion > Unlocking the Potential of Malaysia’s Halal Industry and its Impact on Businesses
Opinion

Unlocking the Potential of Malaysia’s Halal Industry and its Impact on Businesses

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Last updated: 2024/05/08 at 2:12 PM
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By Amri Sham, Head of Public Affairs at foodpanda Malaysia and Chairman of the Halal Committee, DHE Logistics Malaysia Sdn Bhd (DHEL)

The halal industry has emerged as a global force, driven by a growing Muslim population and increased awareness of halal-certified products. According to projections, this industry is set to soar to USD 9.71 trillion by 2025[1]

In Malaysia, it makes a significant contribution to the Gross Domestic Product (GDP), accounting for 7.8% in 2018, and it is expected to rise to 11% by 2030[2]. For foodpanda Malaysia, this represents a compelling opportunity. With Malaysia’s halal industry aiming to contribute 8.1% to the GDP and generate RM 56 billion in export revenue by 2030, as outlined in the 12th Malaysia Plan, it is recognised as a strategic sector by the government.

As the global halal market expands, projected to hit RM22.34 trillion by 2030, Malaysia is well-positioned to capitalise on this growth [3]. This trend is not only benefiting local residents but also Muslim travellers seeking authentic halal Malaysian cuisine.

The Importance of Halal Market to foodpanda Malaysia

We launched bekal by foodpanda to meet the increasing demand for halal food delivery services. Acknowledging the rising desire for halal options among consumers, bekal by foodpanda was created as a dedicated platform offering genuine halal-certified meals being delivered to the public. This initiative directly addresses concerns regarding the authenticity and halal compliance of food deliveries, guaranteeing customers the integrity of the meals they order.

Regular food delivery users often express worries about the authenticity and halal status of the food they order. With bekal by foodpanda, we alleviate these concerns by ensuring that all the food we deliver are halal-certified via a halal-certified delivery fleet, offering peace of mind to consumers. By the end of 2022, our supply delivery service had garnered official recognition from JAKIM (Department of Islamic Development Malaysia). This certification underscores our commitment to delivering halal-certified meals, further reassuring our customers, as the only halal  certified food delivery service in Malaysia.

Understanding the Significance of ‘Halal’ in Business

“Halal” represents adherence to Islamic principles and ethical standards, extending beyond food preparations. For us, operating bekal by foodpanda as a halal-certified delivery platform encompasses several crucial aspects.

Firstly, we prioritise rigorous certification processes by exclusively partnering with halal-certified vendors only. We ensure that vendors meet strict halal requirements through close collaboration with JAKIM.This certification not only instils confidence in customers but also assures them of the authenticity and purity of the food they order. Maintaining transparency in the supply chain, from ingredient sourcing to delivery, is paramount to ensure alignment with halal guidelines. This commitment extends to our delivery partners, who undergo special training in handling halal-certified orders. Moreover, we actively engage with the local halal community through event participation, collaborations with halal organisations, and soliciting feedback to enhance services. In a dynamic marketplace where consumer trust, social responsibility, and market expansion are crucial, bekal by foodpanda emerges as a pioneering force, bridging the gap between consumer preferences and business innovation.

Nurturing Collaboration with Delivery Partners and Vendors

At the heart of our operations lies a commitment to empower our delivery partners and vendors. By fostering an environment of trust, responsibility, and excellence, we pave the way for mutual growth and success as stated below:

  • Customer Trust:

A cornerstone of bekal by foodpanda’s success lies in its halal certification, fostering trust among consumers. Recent research underscores the preference of Muslim consumers for halal-certified food delivery services, affirming our strategic alignment with evolving consumer needs and preferences.[4]

  • Market Expansion:

By catering to the burgeoning segment of halal-conscious customers, we strategically expand our market reach, tapping into a rapidly growing market segment. This proactive approach not only widens the customer base but also fosters heightened brand loyalty, positioning foodpanda as a frontrunner in the competitive food delivery landscape.

  • Social Responsibility:

This initiative exemplifies our broader commitment to corporate social responsibility (CSR). With a focus on uplifting communities, our initiatives resonate with consumers, showcasing a brand ethos rooted in social impact and community empowerment. For instance, foodpanda Malaysia, in collaboration with Coca-Cola Malaysia and Viu, recently initiated a nationwide food basket distribution program in partnership with local NGO MyFundAction to support and distribute over 10,000 food baskets to families in need across Malaysia.

  • Elevating Standards:

DHE Logistics Malaysia Sdn. Bhd.,  the powerhouse behind bekal by foodpanda, sets industry benchmarks as the only halal food delivery company in Malaysia recognised by JAKIM. Accredited by the Food Handler Training School (SLPM) under the Ministry of Health Malaysia (KKM), this initiative exemplifies excellence in halal logistics and delivery services.

  • Unlocking Growth Potential:

Since its inception, bekal by foodpanda has witnessed exponential growth, highlighting its market relevance and consumer appeal. With a steady growth rate , the business trajectory has shown its strategic positioning and unwavering commitment to customer satisfaction.

Empowering Growth and Shared Success with bekal by foodpanda

Embracing halal practices isn’t just a business strategy; it’s a testament to inclusivity and cultural sensitivity. By tapping into the growing halal market, businesses unlock vast opportunities, catering to Muslim consumers, and health-conscious and ethically-minded individuals. Market statistics underscore the immense growth potential of the halal industry, which positions it as a lucrative avenue for business expansion and revenue growth.

As we embark on this journey alongside our vendors and delivery partners, we’re witnessing their remarkable success stories unfold with bekal by foodpanda. It’s incredible to see vendors experiencing growth in sales of  halal certified cuisine. From an expanding customer base to heightened branding visibility, the impact of choosing this initiative is clear.

The decision has significantly benefited our delivery partners, who exclusively serve from halal-certified restaurants. They appreciate the flexibility and competitive earnings provided by the gig economy while navigating bustling streets. Together, these experiences embody the essence of bekal by foodpanda—a journey of growth, fulfilment, and shared success.

Expanding on stories such as these, or the impact they represent, is not only a testament to our commitment but also contributes significantly to the aspirations and targets of the Malaysian halal industry. As the first and only halal delivery company in the world, bekal by foodpanda is positioned to lead and support industry partners in moving forward.

Pioneering the Path Forward for the Halal Industry in Malaysia

We strongly encourage other businesses, especially restaurant owners and Small and Medium Enterprises (SMEs), to join us in obtaining halal certification and be part of bekal by foodpanda. With more SMEs embracing halal certification, we envision a flourishing halal industry in Malaysia, seizing the global growth opportunities it presents.

In essence, the success stories of bekal by foodpanda highlight its transformative impact on vendors, delivery partners, and the broader business landscape. As a symbol of innovation and inclusivity, it showcases the potential of the halal platform to drive positive change and foster economic empowerment. Businesses are urged to take heed of the halal example and lead the way in embracing diversity and cultural sensitivity. As bekal by foodpanda continues to thrive, we aspire to inspire more SMEs to grow alongside us, unlocking fresh possibilities and shaping the future of commerce.

[1] https://www.isahalal.com/news-events/halal-industry-news

[2] https://ycpsolidiance.com/article/the-economic-value-of-malaysia-halal-industry

[3]https://www.mida.gov.my/mida-news/global-halal-economy-expected-to-reach-rm22-34t-by-2030/

[4]https://www.researchgate.net/publication/271822648_Consumers’_Preferences_Toward_Attributes_of_Manufactured_Halal_Food_Products

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    andrea.lim@archetype.co May 8, 2024 May 8, 2024
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