Funding Societies, the leading unified SME digital finance platform in Malaysia and Southeast Asia, has entered into a strategic partnership with Halal Development Corporation Berhad (HDC), a Malaysian federal government agency under the Ministry of International Trade and Industry (MITI). The collaboration seeks to facilitate access to Shariah-compliant digital financing for halal businesses, contributing to the growth of the halal ecosystem.
The Memorandum of Agreement (MoA) formalising the partnership was exchanged between the Partnerships Lead of Funding Societies Malaysia, Syarina Hyzah Zakaria, and the Chief Executive Officer of HDC, Hairol Ariffein Sahari,. The signing ceremony took place at the Jelajah Halal Malaysia 2023 event in Ipoh, Perak, and was witnessed by YB Encik Mohd Azlan Helmi Helmi, Ahli Majlis Mesyuarat Kerajaan Negeri Perak.
The collaboration is aligned with the goal of supporting the local halal industry and tapping into the projected global halal market, expected to reach US$5 trillion (RM23.4 trillion) by 2030. Malaysia’s Halal Industry Master Plan 2030 forecasts the country’s halal industry to grow to US$113.2 billion (RM529.8 billion) by 2030, contributing 8.1% to the gross domestic product (GDP) by 2025.
Country Head of Funding Societies Malaysia, Chai Kien Poon highlighted the significance of the collaboration in meeting the growing demand for Shariah-compliant SME digital financing. Since the introduction of Islamic Financing solutions in May 2023, Funding Societies has disbursed over RM100 million, addressing the needs of Muslim entrepreneurs and those within the halal economy.
Hairol Ariffien Sahari, CEO of HDC, emphasized that the collaboration aims to empower micro-SMEs (MSMEs) and bridge gaps for the underserved in the Halal Economy, fostering an environment conducive to cultivating Halal homegrown champions.
“Collaboration between HDC and Funding Societies is a testament that HDC is proactively finding ways to address challenges faced by the underserved groups to participate in the Halal economy. Our goal is to empower micro-SMEs (MSMEs) and to close the gaps for the underserved in the Halal Economy so that we can create a more conducive environment that cultivates more Halal homegrown champions.”, stated the CEO of HDC.
The partnership comes as a timely initiative to advance the Malaysian economy, especially for the development of the halal industry. With MSMEs representing 97% of overall business establishments in 2022, collaborations between private sectors and government policies, such as those outlined in the 2023 Malaysia Madani Budget, are crucial to widening access to business financing and sustaining economic growth.
Operating in Malaysia since 2017, Funding Societies has disbursed over RM2 billion in financing, targeting to have 50% of its disbursement from its Shariah-compliant financing portfolio by 2025.
