CIMB Islamic ready to invest RM1.5b to help halal players

CIMB Islamic Bank Bhd is prepared to invest RM1.5 billion to help small and medium enterprises (SMEs) in the halal industry.

Its chief executive officer, Badlisyah Abdul Ghani, said the move was prompted by the proven success of the segment, which started in late 2006.

"From zero base, we are now generating close to RM2 million. This is because of our aggressiveness in helping SMEs," he told reporters after launching the CIMB Islamic and Halal Industry Development Corp (HDC) Financial Advisory Services Programme in Kuala Lumpur yesterday.

Also present was HDC chief executive officer Datuk Seri Jamil Bidin.

On the sales target from the collaboration, Badlisyah said the partnership was an ongoing process and no specific target had been set as yet.

"But our indirect intention as a bank is to secure SMEs in the halal industry which are not our clients and support all the SMEs in the industry at large," he said.

Jamil pointed out that most Malaysians had the wrong impression that the country was the number one player in the halal industry globally.

He said the country was only the leader in the certification and standard process.

"This does not contribute much to the nation's economy as the government wants the SMEs to be one of its key economy drivers, like their counterparts in neighbouring countries."

Jamil added that the halal food global market was estimated to be worth US$635 billion (RM2.1 trillion) this year and to increase to US$642 billion (RM2.2 trillion) next year.

"Our halal industry players can capture the market provided they are willing to go global," he said. - Bernama