Funding Societies and HDC Join Forces to Boost Halal Business Financingby Fintech News Malaysia November 29, 2023 0 comments
SME digital financing platform Funding Societies has tied up with the Halal Development Corporation (HDC) to provide Shariah-compliant digital financing to halal businesses.
The partnership was officially cemented through a Memorandum of Agreement, signed by Syarina Hyzah Zakaria, Partnerships Lead of Funding Societies Malaysia, and Hairol Ariffein Sahari, CEO of HDC.
This collaboration supports the development of Malaysia’s halal industry, projected to expand to US$113.2 billion by 2030. The industry is expected to contribute significantly to the national GDP, with an estimated 8.1% contribution by 2025. In 2022, halal exports from Malaysia were valued at RM59.5 billion, accounting for 7.4% of the country’s GDP.
Funding Societies, operational in Malaysia since 2017, has disbursed over RM2 billion in the country and more than RM15 billion across the region. With its Islamic Financing solutions introduced in May 2023, the platform has already disbursed RM100 million in Shariah-compliant financing.
The company aims for 50% of its disbursement to come from its Islamic financing portfolio by 2025.
Chai Kien Poon, Country Head of Funding Societies Malaysia said,
“Consequent to the introduction of our comprehensive Islamic Financing solutions in May 2023, we are well positioned to serve the growing demand for Shariah-compliant SME digital financing from Muslim entrepreneurs and those in the halal economy.
Increasingly, given the emphasis on fairness and transparency of fees and charges, this class of products appeals to non-Muslims alike.”
Hairol Ariffien Sahari, Chief Executive Officer of HDC said,
“Collaboration between HDC and Funding Societies is a testament that HDC is proactively finding ways to address challenges faced by the underserved groups to participate in the Halal economy.
Our goal is to empower micro-SMEs (MSMEs) and to close the gaps for the underserved in the Halal Economy so that we can create a more conducive environment that cultivates more Halal homegrown champions.”
Featured image: (From left: Syarina Hyzah Zakaria, Partnerships Lead of Funding Societies Malaysia; Norashekin Yusof, Chief Corporate Communication Officer of HDC, YB Encik Mohd Azlan Helmi Helmi, Ahli Majlis Mesyuarat Kerajaan Negeri Perak (EXCO) and Hairol Ariffein Sahari, Chief Executive Officer of HDC.)