INTRODUCTION

International industry experts place the global halal industry in the region of USD3 trillion and the concept of halal goods and services is fast gaining ground in non-Islamic countries that have a substantial Muslim population. For instance, Europe's halal market is estimated to include over 50 million Muslim consumers with a substantial spending power of nearly USD66 billion a year. In the UK alone, the halal meat market is estimated to be worth up to £2 billion a year.

The food industry is the traditional mainstay of the wider halal industry and is centered around how food is prepared and whether animals have been slaughtered according to age-old Muslim practices (the word halal means ‘permissible’ in Arabic). Today's international halal industry comprises goods and services as diverse as pharmaceuticals, finance, logistics and biotechnology. The halal industry is more than just how livestock is prepared, it is the integration of many separate industries linked by a unique set of Islamic-based guidelines. This growing awareness of halal is creating new commercial possibilities much as what green development and the organic movement have done.

This chapter presents a brief overview of the global and Malaysian halal industry, and the development, opportunities and challenges faced by the halal industry in Penang.

HALAL IN MALAYSIA

Malaysia has been a key player in this global phenomenon, leading the way in certification, Islamic finance and food production. Two of the world's most established halal expos take place in Malaysia, including the World Halal Forum and the Malaysia International Halal Showcase (MIHAS) which promotes itself as the ‘world's largest platform for halal products and services.’ Concerted efforts and strategies to transform Malaysia into a global halal hub and to further develop the local halal industry have been outlined in various federal government plans including the Second Industrial Master Plan, 1996 - 2005, the National Agriculture Policy, 1998 - 2010, the Ninth Malaysia Plan (9MP), 2006 - 2010, and the Third Industrial Master Plan (IMP3), 2006 - 2020.