Islamic bank to expand financing for halal MSMEs
Al-Amanah Islamic Investment Bank of the Philippines is looking to expand financing for businesses in the halal industry, particularly micro, small and medium enterprises as the government seeks to tap a rising global market.
Manila, Philippines — The state-owned Al-Amanah Islamic Investment Bank Philippines is set to broaden its financing for businesses within the halal industry, specifically for micro, small, and medium enterprises (MSMEs). The bank has pledged to provide capital to companies within the halal sector that face difficulties securing funding due to their non-conventional requirements.
Al-Amanah Bank chairperson and CEO Amenah Pangandaman revealed that the bank is in the process of determining the extent of its financing support while aiming to collaborate with other government entities.
Pangandaman emphasized that financing for MSMEs should encompass the entire value chain, including production, certification, logistics, scaling up, and ultimately, export. She also highlighted the significance of halal certification, stating that many MSMEs are struggling with the costs associated with entering the halal market, such as certification fees, facilities, and production upgrades.
To address this issue, Al-Amanah has entered into a memorandum of understanding (MOU) with the Department of Trade and Industry for financing support, including accreditation fees and halal slaughterhouse facilities. Additionally, the bank is partnering with the Cooperative Development Authority to bolster the expansion of cooperatives involved in the halal industry.
Pangandaman and the National Commission on Muslim Filipinos have also agreed to pursue an MOU for the provision of Islamic financing support for MSMEs and halal certifying bodies.
The global halal industry is valued at $4 trillion and is expected to grow to $10 trillion by 2030, fueled by a growing Muslim population and ethical consumerism. Non-Muslim consumers are increasingly gravitating toward halal products due to their adherence to high-quality and health standards. The Philippine Halal Industry Development Strategic Plan aims to attract P230 billion in investments by 2028, double the number of halal-certified products and services to 6,000, and create 120,000 jobs.
However, the country still relies on imports to fill a supply gap, with over $100 million worth of halal products imported in recent years.
Pangandaman, who previously served as budget secretary but resigned amid allegations of budget insertions, returned to government service in July to head Al-Amanah Bank.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
