The Department of Trade and Industry (DTI) signed a Memorandum of Understanding (MOU) on October 16 with DK PO Fulfillment Company, Inc. (DKPOFCI) to address the development of the Halal industry in the country, particularly for micro, small, and medium enterprises (MSMEs).
The MOU between DTI and DKPOFCI will provide non-interest-based financing opportunities for MSMEs, providing an avenue for their integration into the Halal industry.
The concept of non-interest financing addresses financial and economic inclusions and supports one of the underlying principles in Islamic financing, such as the absence of “riba” or interest.
The DKPO was founded with the purpose of empowering small and medium-sized enterprises through its Purchase Order (PO) Fulfillment Program, a proprietary system built for sustainable business performance. It is a comprehensive and integrated growth tool designed by DKPOFCI for expanding businesses with little or no access to capital reserves, insufficient funds to pay for the cost of goods, poor cash flow, or chronic difficulties securing traditional bank funding.
Apart from the marketing and promotional activities, the MOU will provide MSMEs with services and programs for logistics management, quality control and inspection, custom brokerage, insurances, and global sourcing and procurement.
“DK greatly believes that the true growth of the Halal industry will be dependent on a program that will address the development of an end-to-end entrepreneurial ecosystem. The sequence will focus on entrepreneurial education, then pre-seed funding incubation, then acceleration, then market penetration and development, and finally growth funding via transactional venture capital (profit sharing model),” DKPOFCI Executive Chairman Antonio Intal said.
According to DTI Secretary Alfredo Pascual, as part of the robust campaigns of the Department on Halal development, it also entered into partnerships with various stakeholders and global players in the Halal ecosystem. These include constant coordination with the Halal powerhouses in the region, namely, Malaysia, Indonesia, and Brunei Darussalam, to learn the best practices of these Halal experts to enhance the credibility and integrity of the Philippine Halal Industry. Capacity and capability building, expert exchanges, and mutual recognition in certification and accreditation are also among the cooperation being advanced by the DTI Halal team.
Further, Secretary Pascual also cited the important partnership of DTI with the private sector particularly Geiser Maclang Marketing Communications Inc.’s Digital Pilipinas, which advocates the Halal digital economy to the mainstream.
Digital Pilipinas Festival on November 20-24 at SMX Convention Center in Mall of Asia will be part of the DTI’s Invest Philippines Week. Invest Philippines Week brings together government and private sector initiatives in pushing investments in the country.
In the same week, the DTI, with the Philippine Halal Board member agencies, will host the Halal Economy Festival, with support from the DTI Special Halal Task Force, the Embassy of Malaysia in the Philippines, and Digital Pilipinas. The Festival will feature a trade and investment forum with renowned speakers from the global Halal authorities, mount business-to-business meetings, showcase Halal culinary and culture, and exhibit Halal-certified products and services, including Muslim-friendly hospitality and tourism, among other exciting festivities.
The program will be attended by leaders in the halal economy space, including advocates of innovation and fintech, Islamic banking, and the eCommerce landscape. Islamic banking and finance are vital components of the global Halal ecosystem. Islamic finance assets are estimated to have grown to USD3.6 trillion in 2021, 7.8% up from USD3.4 trillion in 2020.
