Philippines Sets up National Halal Office to Boost Global Trade

Posted by Written by Ayman Falak Medina Reading Time: 2 minutes

The Philippines has taken a significant step toward enhancing its position in the global halal economy by establishing the National Halal Industry Development Office (NHIDO). Spearheaded by the Department of Trade and Industry (DTI), the office is designed to transform the country into a competitive player in the halal market, which is projected to reach US$4 trillion by 2028.

This initiative not only bolsters the Philippines’ domestic halal ecosystem but also creates avenues for increased exports to key international markets, particularly in Southeast Asia.

Driving Halal trade and investment

The NHIDO is tasked with streamlining halal policies, facilitating international certifications, and ensuring compliance with global halal standards. The office aims to enhance the Philippines’ reputation as a reliable source of halal-certified products and services by addressing gaps in certification processes and raising awareness among local businesses.

DTI’s roadmap for the halal industry includes:

  • Promoting halal-certified products in international markets.
  • Developing a robust halal supply chain.
  • Providing training programs for businesses on halal standards.

This initiative is expected to create new opportunities in sectors such as food, cosmetics, pharmaceuticals, and tourism.

Tapping into Indonesia: The world’s largest Halal market

One of the most promising opportunities for the Philippines is to target Indonesia, the world’s largest halal market. With its massive demand for halal-certified products and proximity to the Philippines, Indonesia is an ideal trade partner to boost exports and establish stronger regional collaborations. Further, with 87.5 percent of its population adhering to Islam, Indonesia boasts the largest Muslim population in the world, providing a vast consumer base for halal products.

Indonesia’s halal market was valued at US$ 279.26 billion in 2023 and is projected to grow to USD 807.86 billion by 2031, at a compound annual growth rate (CAGR) of 14.2 percent. This explosive growth highlights the increasing demand for halal-certified goods across diverse sectors.

Diverse industry segments

Indonesia’s halal industry is vast, encompassing:

  • Food and beverages are a key driver of the halal economy, with a growing demand for processed and packaged foods.
  • Pharmaceuticals and cosmetics: Increased consumer awareness has boosted demand for halal-certified health and beauty products.
  • Halal tourism: Indonesia is positioning itself as a leader in halal-friendly tourism, offering opportunities for cross-promotional campaigns.
  • Islamic banking and finance: Supporting the overall growth of the halal economy.

A Step Toward Global Halal Leadership

The establishment of the NHIDO is a pivotal move in the Philippines’ journey to becoming a global halal leader. By addressing certification challenges, fostering collaboration with stakeholders, and targeting high-growth markets like Indonesia, the Philippines is poised to unlock new economic opportunities in the halal sector.

With the rising global demand for halal-certified products, the Philippines’ efforts will enhance its economic prospects and reinforce its commitment to cultural inclusivity and regional cooperation.

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