12 May, 2008 – Malaysia has unveiled new tax proposals designed to make it the worldwide centre for foods prepared in accordance with strict Islamic laws.
The country’s Prime Minister, Minister Abdullah Ahmad Badawi, outlined a raft of tax incentives as it bids to grow the halal sectors in processed foods, livestock , meat products and food ingredients.
Speaking at the World Halal Forum, the Malaysian leader was quoted as saying: "For industry players in these promoted industries, the incentives include investment tax allowance, or exemption on statutory income from export sales.
“In addition, 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 he was confident Malaysia could “emerge as a major global halal hub in the future”. The worldwide halal market was estimated to be worth US$2.3 trillion, with huge growth potential, he added.
State-sponsored halal industry parks have been set up in key area to help investors, who can apply to the state-run Halal Industry Development Corp (HDC) to benefit from the incentives, said the PM.
A 9000-hectare halal park was being set up in the region of Sarawak, one of four nationwide, will focus on prawn and fish farming, as well as poultry, agriculture and processing industries, officials said.
