Malaysia Seeks to Become Islamic Halal Hub

Prime Minister Abdullah Ahmad Badawi told the two-day World Halal Forum that the plan envisages an Internet site for trading, certification assistance, and an online library for halal research and market intelligence.

Malaysia's state-run Halal Industry Development Corp., or HDC, signed an agreement at the forum with Microsoft Malaysia to develop technology for dealing with the international halal market.

A halal designation means a product complies with Islamic principles of hygiene and humane treatment of animals, and other rules involving the production processes.

"We must broaden the horizon of halal to go beyond just food-related products and services," Abdullah said.

"The vast business and commercial potential of the halal sector is beyond doubt, with a captive market of 1.6 billion Muslims and an estimated market size of more than US$600 billion (euro442 billion)," he said.

"The halal sector not only offers lucrative and tangible returns, but it is also a duty for Muslims."

Abdullah said Microsoft and the HDC would create a pilot program in Malaysia before expanding it to other Muslim nations.

"Malaysia remains committed to becoming a significant player in the global halal market and ultimately, to become a world halal hub," he said.

Malaysia has said it would use its edge over other Muslim nations in trading, logistics, banking and halal certification to position itself as a global center for the manufacture and export of halal products by 2010.