Funding Societies, the leading SME digital finance platform in Malaysia and Southeast Asia, has entered into a strategic collaboration with Halal Development Corporation Berhad (HDC), a Malaysian federal government agency under the Ministry of International Trade and Industry (MITI).
The partnership aims to provide Shariah-compliant digital financing facilities for halal businesses, contributing to the growth of the halal ecosystem.
The formalisation of this partnership involved the exchange of a Memorandum of Agreement (MoA) between Syarina Hyzah Zakaria, partnerships lead of Funding Societies Malaysia, and Hairol Ariffein Sahari, CEO of HDC. The ceremony was witnessed by Mohd Azlan Helmi Helmi, a member of the State Government Council in Perak, at the Jelajah Halal Malaysia 2023 event in Ipoh, Perak.
This collaboration is geared towards supporting the local halal industry’s development and meeting the rising global demand, projected to reach US$5 trillion (RM23.4 trillion) by 2030.
The Halal Industry Master Plan 2030 envisions Malaysia’s halal industry growing to US$113.2 billion (RM529.8 billion) by 2030, contributing 8.1% to the GDP by 2025. In 2022, the halal industry contributed 7.4% to the country’s GDP with a total halal export value of RM59.5 billion.
Chai Kien Poon, country head of Funding Societies Malaysia, highlighted the company’s commitment to serving the growing demand for Shariah-compliant SME digital financing. The collaboration, initiated following the introduction of comprehensive Islamic Financing solutions in May 2023, aims to boost trade and investment activities in the halal economy.
Hairol Ariffien emphasized the collaboration’s role in empowering micro-SMEs (MSMEs) and narrowing gaps in the Halal Economy, fostering an environment conducive to Halal homegrown champions.
With MSMEs representing 97% of overall business establishments, this collaboration aligns with government policies outlined in the 2023 Malaysia Madani Budget. The private sector’s involvement, exemplified by Funding Societies, aims to widen access to business financing for MSMEs and contribute to sustainable economic advancement, especially in the halal industry.
As the memorandum signing coincides with the goals outlined in Belanjawan 2024, Funding Societies, operational in Malaysia since 2017, continues its mission of providing financing to underserved SMEs.
The Fintech platform targets to have 50% of its disbursement from its Shariah-compliant financing portfolio by 2025.