Al-Amanah Bank Targets MSMEs for Financing to Boost Halal Industry

AL-AMANAH Islamic Investment Bank of the Philippines said it is looking to provide capital to micro, small and medium enterprises (MSMEs) involved in the halal industry. Al-Amanah Bank Chairperson and Chief Executive Officer Amenah F. Pangandaman said the bank is currently determining how much it can allocate in total financing support via partnerships with government agencies. “We have the demand to fill, we have our people to do the job, we have a huge market waiting for us but without the capital — the financing — it will always be an arduous task to get out of that niche market concept attached to halal,” she said in a statement Sunday. The country’s only Islamic bank will help boost financing for the halal industry to ensure inclusive growth, increased investment and global competitiveness, she added. “There is no denying that halal certification, here and elsewhere, can be difficult, extensive and costly for MSMEs but the returns for both consumers and businesses are also abundant,” Ms. Pangandaman said. “As we work toward accessible and understandable certification, we must also bear in mind that it should not become an unnecessary hurdle for our MSMEs,” she added. Al-Amanah bank signed a memorandum of understanding (MoU) with the Department of Trade and Industry for the provision of the financing support that will enable halal expansion, particularly accreditation fees and halal slaughterhouses. It likewise signed an MoU with the National Commission on Muslim Filipinos to provide Islamic financing support for MSMEs and halal-certifying bodies. The bank also partnered with the Cooperative Development Authority to support the expansion of cooperatives engaged in the halal industry. The bank aims to seek to bridge the financing gap for MSMEs entering the halal market, as well as the supply gap, which has resulted in over $100 million worth of halal imports. “Unfortunately, many MSMEs are having a hard time financing the costs needed to enter the halal market such as certification and facilities and production upgrades, among others,” Ms. Pangandaman said. “We should not miss the boat. There is so much room for growth — growth to show that halal is more than just a dietary restriction in observance of our faith. But it is an opportunity to push forward economic development alongside inclusivity,” she added. — Aaron Michael C. Sy