Sabah's halal promise: A second chance at a multi-trillion dollar future
Sabah, our Land Below the Wind, has always brimmed with potential. We've talked about it for years, a whispered promise of what could be. Yet, that promise, particularly in the expanding global halal economy, often felt like a distant dream — ambitious, yes, but perpetually just out of reach, until now.
The recent announcement from Qhazanah Sabah Berhad (QSB), the state government under the leadership of Datuk Seri Panglima Hj Hajiji Haji Noor's strategic investment arm, changes the narrative entirely.
Their plan for a new SME Halal Industrial Park on 8.09 hectares within the Kota Kinabalu Industrial Park (KKIP) isn't just about laying bricks and mortar. This is a comprehensive ecosystem designed to empower our small and medium enterprises (SMEs), providing crucial support facilities, integrating technology, offering digital platforms, guiding businesses through halal certification, and assisting with product marketing.
Historically, Sabah's industrial focus has been rather narrow, concentrating on resource-based sectors like timber, palm oil and fisheries. Despite a strong local Muslim population and our enviable proximity to major halal markets, Sabah's participation in the global halal economy has remained surprisingly underdeveloped.
Truth be told, our journey to this point has been paved with missed opportunities. Early on, Sabah and even our neighbor Labuan were touted as natural halal gateways, strategically located along vital shipping routes. Plans were drawn, land earmarked, and significant funding committed. Remember the much-publicized Labuan Halal Distribution Hub, launched in 2009 with RM86 million? It became a textbook case of a 'mega investment flop,' failing to export a single product. What a shame. Similar ventures in Brunei Bay and by KKIP itself also faded into obscurity.
The root cause was not merely bureaucratic red tape — it stemmed from a deeper, more fundamental misunderstanding of what 'halal' truly means in the context of a modern supply chain. Too often, we reduce halal to ritual slaughter or a certification stamp, overlooking the fact that a 'NO PORK SERVED' sign is not synonymous with halal. Halal is a comprehensive system of ethical and spiritual assurance that governs every stage of a product's lifecycle — from careful sourcing and processing to secure packaging, transportation, storage, and retail handling. It embodies a fusion of faith-based values and rigorous logistical standards.
Genuine halal integrity necessitates that products are not only certified but also scrupulously protected from any form of contamination — physical, chemical, or religious — at every single touchpoint. This demands dedicated halal logistics, segregated storage and robust traceability. Past initiatives stumbled precisely because they overlooked these practical requirements, constructing facilities without the crucial supporting ecosystem of trained logistics providers or real-time visibility technologies. The consequence? Halal products often lose their integrity the moment they leave the factory gates.
Against this sobering backdrop, the news of the SME Halal Industrial Park is both welcome and, frankly, critically overdue. This time, Sabah or QSB must transcend the mere provision of physical infrastructure. A comprehensive halal ecosystem is urgently needed, firmly anchored by three essential pillars: Logistics Integrity, Digital Visibility, and robust Supply Chain Governance.
Logistics Integrity is non-negotiable. Halal and non-halal goods must be kept strictly separate during storage, handling and transport, especially in environments where mixed cargo is common, like ports and distribution centers. Dedicated halal transport fleets and warehouses, backed by certifications from respected bodies like JAKIM, are no longer optional amenities but fundamental necessities.
Digital Visibility will form the very backbone of Halal Trust. Technologies like RFID, GPS and blockchain offer powerful tools to meticulously track the movement of goods, verify their chain-of-custody, and provide real-time assurance to both regulatory bodies and discerning consumers. While the initial investment in such technologies may seem significant, they present Sabah with a unique opportunity to leapfrog older, less efficient models and establish itself as a truly smart halal hub.
Finally, effective Supply Chain Governance mandates seamless collaboration among state agencies, halal certifiers, logistics providers and the SMEs themselves. Without coordinated training initiatives, transparent information sharing, and stringent quality control, even the most thoughtfully designed industrial park risks becoming another white elephant. The Halal Development Corporation (HDC), working in close tandem with JAKIM and local universities, should be empowered to establish a Halal Excellence Centre in Sabah, serving as both a vigilant watchdog and a dynamic think tank.
Malaysia's JAKIM halal certification remains a globally trusted benchmark, recognized by 85-88 international bodies across 47-49 countries. This provides Sabah's halal industry with a significant export advantage.
We've seen notable growth in certified companies, rising from 249 in 2014 to approximately 350 today, reflecting sector expansion.
This growth underscores the critical need for continued, comprehensive SME capacity-building and inclusive onboarding programs. This is essential to ensure our Bumiputera businesses fully participate in and benefit from Sabah's expanding halal economy. This is a profound opportunity to uplift micro-enterprises, particularly those in rural areas that remain uncertified due to a lack of awareness, technical support, or capital. With proper incubation and targeted training, the halal sector can transform into a powerful vehicle for economic justice, alongside its potential for export growth.
Moreover, the halal economy extends far beyond the food sector. It encompasses pharmaceuticals, cosmetics, personal care products, tourism, fashion, and even Islamic fintech. Sabah holds distinctive advantages that can be strategically leveraged across these diverse industries. Imagine our eco-tourism lodges offering tailored halal hospitality packages, catering to the rising number of Muslim travelers not only from within Malaysia but also from BIMP-EAGA, the Far East, the Middle East, and Europe. Or consider the potential of halal-certified herbal products, derived from Sabah's extraordinarily biodiverse forests, to secure a foothold in the expanding global halal wellness market.
Sabah has, arguably, slumbered too long on its halal potential. But the era of mere dreaming is over. The Halal Industrial Park initiative by QSB must be seen not just as a development project, but as a strategic reset for the entire state. It presents a crucial second chance to position Sabah as a credible, indispensable node in the global halal supply chain.
Success will not be measured by the scale of its infrastructure or the polish of its promotional materials. Instead, it will rest on an unwavering commitment to integrity, the precise execution of advanced systems, and strict adherence to international standards. Most importantly, it will depend on Sabah's ability to align vision with infrastructure and execution, elevating the halal economy from a symbolic label to a principled way of doing business.
This weekend, as we reflect on Sabah's potential, let's look forward to a future where our halal promise is not just discussed but fully realized.
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