Halal Industry Amongst Crucial Growth Drivers in IMT-GT, BIMP-EAGA
KUALA LUMPUR: The rapidly-growing halal market is amongst nine sectors that can set off high financial growth in the Indonesia-Malaysia-Thailand Development Triangle (IMT-GT) and the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA).
The other crucial sectors include sustainable farming and agribusiness; tourist; green and eco-friendly energy (RE); the digital economy; transportation and logistics; palm oil and downstream markets; and Islamic financing, according to International Islamic University Malaysia (IIUM) associate teacher of economics, Dr Muhammad Irwan Ariffin. The marine and fisheries industries are exclusive to the BIMP-EAGA sub-region, he noted.
He stated the halal industry in both IMT-GT and BIMP-EAGA sub-regions holds strong global need for halal food, cosmetics, finance and tourist. “It shares Islamic values across Malaysia, Indonesia, Brunei, southern Thailand and Mindanao, making it a strategic objective to develop IMT-GT as an international halal center,” he informed Bernama.
Turning to the farming sector, Muhammad Irwan stated the combination of huge arable land and a tropical environment drives strong need for high-value crops, natural farming, agro-processing and agribusiness worth chains, which are important for supporting rural economies.
As for the digital economy, he said increasing internet access in rural areas throughout the sub-regions has driven the development of e-commerce, fintech and digital abilities advancement, together with plans for smart cities and cross-border digital passages.
“The sub-regions, which are understood for their abundant biodiversity, natural parks, and cultural heritage, are increasingly focusing on eco-tourism, halal tourism, and cross-border travel circuits, supported by strategic efforts such as the Go To IMT-GT Year 2023– 2025 campaign,” he continued.
“In the Islamic finance sector, the large Muslim population and underserved rural communities present opportunities for inclusive growth through shariah-compliant financial services that support the development of small and medium business (SMEs) across the regions.”
IMT-GT, BIMP-EAGA align with wider ASEAN goalsMuhammad Irwan stated that while ASEAN’s wider goals for economic integration and connection are guided by the ASEAN Economic Community (AEC) Blueprint 2025 and the Master Plan on ASEAN Connectivity (MPAC) 2025, the IMT-GT and BIMP-EAGA sub-regions can align with these goals through 5 crucial areas.
Firstly, he described that the sub-regions can support ASEAN’s objective to narrow development gaps across the region by focusing on peripheral areas by creating economic opportunities in places often neglected by national strategies, helping ASEAN advance as a more inclusive and cohesive community.
Secondly, he mentioned that IMT-GT and BIMP-EAGA can support ASEAN’s goal of establishing seamless transportation, trade facilitation, and digital infrastructure, as outlined in MPAC 2025, by investing in cross-border infrastructure like ports, airports, and roads, and by coordinating efforts on border trade facilitation, customs harmonization, and logistics.
“For instance, BIMP-EAGA has launched 210 priority infrastructure projects (PIPs) since October 2024, including the expansion of border economic zones and connectivity corridors, directly supporting MPAC’s goal to physically link ASEAN markets,” he said.
Muhammad Irwan stated IMT-GT and BIMP-EAGA can support ASEAN’s goal to increase intra-ASEAN trade and investment by focusing on regional supply chains in agriculture, halal products, tourism, and manufacturing. For example, IMT-GT’s Halal Market Development initiative supports ASEAN’s bid to become a global halal hub.
“IMT-GT and BIMP-EAGA also facilitate cross-border investments and SME partnerships, which deepen economic connectivity within ASEAN and integrate border areas into the broader ASEAN market,” he added.
He said sub-regions can strengthen ASEAN’s mission to promote resilience, climate action, and sustainable development through promoting green infrastructure and sustainable tourism, such as UNESCO Geoparks. Muhammad Irwan also emphasized that IMT-GT and BIMP-EAGA can support ASEAN’s goal to promote cultural ties, movement, and shared identity by encouraging cross-border travel and joint celebrations such as the Visit IMT-GT Year 2023– 2025.
