Attractive Incentives To Draw Businesses To Halal Industry In Malaysia

(Bernama) -- The government is offering attractive incentives to draw businesses in the halal industry in Malaysia.

They include investment tax allowances, perks for export of halal products and exemption of duties for the import of raw materials, Prime Minister Datuk Seri Abdullah Ahmad Badawi announced here, Monday.

He said there would also be goodies for halal parks and logistics operators to facilitate an optimal supply chain and infrastructure as well as pioneer status for cold room storage operations.

Elaborating, Abdullah, who is also Finance Minister, said there would investment tax allowances or exemption on statutory income from export sales for industry players in specialty processed foods, cosmetics and personal care, pharmaceuticals, halal ingredients and livestock and meat products.

"There will be exemption from import duty on raw materials as well as double deduction on expenses incurred in obtaining international quality standards," he said in the keynote address at the World Halal Forum 2008.

Abdullah said these incentives were put forward by Halal Development Corp(HDC) after the dialogues with global and local industry players, in order to meet the needs of businesses wishing to invest in the Malaysian halal sector.

He also announced that the government would provide RM15 million over the next three years as funding support to kick off the International Halal Integrity Alliance (IHI Alliance), the non-profit body set up following the adoption of the resolutions passed at the past two world halal forums in 2006 and 2007.

"My government has formally endorsed the functions and aspirations of the IHI Alliance. I understand that the Organisation of Islamic Conference, through Islamic Chamber of Commerce and Industry (ICCI), is also committed towards making alliance a strong, credible and respected global halal authority.

"I hereby urge other countries to formally endorse and support ICCI and its programmes and IHI Alliance in their efforts to develop the global halal industry," he said.

IHI Alliance was formed to ensure integrity throughout the entire halal supply chain by enhancing and harmonising halal standards and certification at the global level.

Meanwhile, at the press conference after the opening ceremony, Abdullah said the incentives had never been offered to halal industry players before.

"For the halal industry, it is something that we had not offered before," he said.