The Department of Trade and Industry (DTI), led by Secretary Fred Pascual, and the DK P.O. Fulfillment Company, Inc. (DKPO) have signed a Memorandum of Understanding (MOU) aimed at boosting the country’s Halal industry on Monday, October 16, 2023, in Parañaque City, Philippines.
DKPO, a non-interest financing service, will aid in addressing the development of the Halal industry in the country, particularly for micro, small, and medium enterprises (MSMEs).
During the event, the DTI chief emphasized that over the next five years, the Philippines plans to achieve a remarkable milestone of PHP 230 billion in Halal trade and investments while creating over 120,000 job opportunities.
Together with the DTI, eight other government agencies are working to find immediate ways to carve just a piece of this massive global Halal market that is expected to double to USD 7.7 trillion in 2025 from USD 3.2 trillion in 2015.
“Our Micro, Small, and Medium-sized enterprises, or MSMEs, are at the forefront of our Halal initiatives, poised to reap significant benefits. The DTI is taking substantial steps to champion its growth in this domain,” Secretary Pascual said in a statement.
Additionally, the DTI chief highlighted that the Halal industry development initiative forms part of the DTI’s four priorities, which include promoting regional development; attaining food security; upgrading, upskilling, and upsizing micro, small and medium enterprises; and enabling job skills matching and skills upgrading.
Philippines-UAE economic ties
During a press conference, The Filipino Times asked about DTI’s plans in terms of the Halal trade between the Philippines and the UAE.
According to Secretary Pascual, the DTI is working to establish the “rules of the game” for halal trade between the two countries in preparation for the upcoming 28th Conference of the Parties of the UNFCCC (COP28), a climate change summit set to take place in Dubai, UAE from November 30 to December 12, 2023. President Ferdinand R. Marcos Jr. has also expressed his intent to attend this highly-anticipated event.
He stressed that the government will play a role in setting the stage for halal trade, but the private sector will further drive the businesses.
“At the governmental level, we hope to be able to establish the rules of the game. Ultimately, the drivers of business will be the private sector which will be engaged in the production and selling of the products,” Secretary Pascual said.
The DTI’s proactive steps in defining guidelines for halal trade with the UAE represent a positive stride. Being a dominant market for halal products, the UAE boasts a Muslim population exceeding 80 per cent. Remarkably, the Philippines, with a Muslim population exceeding 10 million, stands as a significant halal product producer, emphasizing the mutually beneficial potential of this venture.
Furthermore, the DTI is working with other government agencies such as the Philippine Halal Export Development and Promotion Board to develop a halal trade strategy for the UAE that will focus on identifying and promoting Philippine halal products that are in demand in the UAE market.
Secretary Pascual, along with the UAE Minister of State for Foreign Trade Dr. Thani bin Ahmed Al Zeyoudi, reiterated their shared commitment to fortifying and amplifying the countries’ economic relations. In February 2022, the Philippines and the UAE formally signed the Investment Promotion and Protection Agreement (IPPA) during the Philippine National Expo Day at Expo 2020 Dubai.
“We are actively engaged in ongoing deliberations regarding the Comprehensive Economic Partnership Agreement (CEPA), which underscores our mutual dedication to further strengthen our economic ties,” Pascual said in a statement.
