Food Service Sector
Malaysia has a sizeable and rapidly growing food service market today. Sources from the trade
estimate the food service market today is valued between US$ 4.9 billion to US$ 5.5 billion
today. The food service market has been growing at a rapid average rate of around 6.5% per
annum over the past five years. They indicated that this market is likely to grow at between
7%-10% per annum over the next three to five years.
Hotels and resorts, restaurants, and the institutional sub-sectors represent the best potential
for exporters. The restaurant sub-sector accounted for 70% of the total food service sales in
2008. This is followed by the hotels and resorts (8%) and catering services to institutions (5%)31
.
The Halal Industry
With a Muslim population of 60%, the demand for halal foods by Malaysian consumers has
increased over the years. The expectation of halal standard in food products have extended
from meat and meat products to non meat-based products such snacks, confectionery, dairy,
bakery, etc. Halal is fast becoming recognized as a new benchmark for quality, hygiene and
safety. Food products and ingredients that have halal certificates have added marketing value
in Malaysia. Hence, most retailers, foodservice operators and food manufacturers are inclined
to ask for halal certificates for non-meat based food products and ingredients32
.
With the emphasis given by the Government to promote Malaysia as an international halal hub,
the prospects for the halal food industry are promising. Malaysia also works closely with the
Organization of Islamic Conference (OIC) countries to promote the Malaysian Halal Standard as
the benchmark for international standard for halal products. This is expected to further
contribute to the acceptance of Malaysia’s halal food products globally.
The halal industry in Malaysia provides immense opportunities for Malaysian manufacturers. It
was estimated that the potential value of the halal food industry range between USD600 billion
and USD2.1 trillion. The concept of halal is associated with food products which are of high
quality in terms of cleanliness, sanitation and compliance with religious requirements33
.