Malaysia’s Bank Islam is allocating an initial 100 million ringgit ($24.1 million) to provide financing to encourage more SMEs to enter the halal market.
The new facility will benefit around 300 local SMEs, Bank Islam said in a statement on Tuesday (June 29).
The Shariah-compliant bank will work with the Halal Development Corporation to reach SMEs.
The GO Halal SME Financing Program will provide package deals for HDC members, including halal certification training and Bank Islam’s product-bundling package to SMEs, said the two companies.
The program will also integrate Bank Islam’s SME mobile app with HDC’s halal ecosystem platform that is scheduled to be launched in September.
The Halal Integrated Platform is a virtual halal industry ecosystem that houses the country’s key stakeholders, including producers and service providers, government agencies, financial institutions, insurance providers and higher learning institutions.
Bank Islam’s new program follows other local banks targeting halal SMEs, including CIMB Islamic’s own 100 million ringgit facility announced in November 2019 and its Halal Biz Ready scheme launched in early 2020 that aims to connect local businesses to the global halal trade.