Public Relations Role in Promoting Islamic Product Globally: Malaysian Experiences

Public Relations Role in Promoting Islamic Product Globally:Malaysian Experiences

Associate Professor Dr Jamilah AhmadDean, School of Communication

Universiti Sains Malaysia

Introduction• Islamic compliance for commerce and trade MUST

include the following three principles (i) Risk Taking (ghorm)(ii) Work and Effort (kasb) (iii) Responsibility (Damam)

• Islamic law prohibits investing in businesses that are considered unlawful (haram).– alcohol or pork; – pornography– gambling * Any Islamic products offered must be based fulfill the

above principles

Introduction• It is estimated that the market for Shariah compliant

products is currently worth over USD$2 trillion worldwide (Andrew White; 2012)

• ‘Muslim’s consumers present a strong voice that the globalised world of business is paying more attention to, but has yet to fully understand’ how to deal with the market

• To understand the global market challenges, it is important for public relations practitioners to apply strategic promotional tools to cater this market

• Since then Malaysia has tapped on its Islamic financial system and the halal industry. In 2012, Malaysia export value for halal products has grown to RM35.4billion (Star, October 2012).

Islamic Product in Malaysia

• Islamic Banking• Halal Hub

Islamic Product Development

• Islamic Banking – Global– Malaysia

Incentives for Islamic Product on Budget 2013

1. Double tax deductions - additional expenses incurred in the issuance of retail bonds and Sukuk for 2012-2015.

2. Expenses related to the issuances of “agroSukuk” for 2012-2015 - exemption from paying stamp duties on retail which include Individual investors (Bursa Malaysia)

3.Halal industry fund (Islamic Development Bank will make available a RM200 million Halal Industry Fund to finance the working capital of participating SMEs)

Challenges to Promote Islamic Product

• Develop product in compliance with Sharia (law versus human right –freedom to choose)

• Explaining product to generate better ‘human soul and spirit’ (Business profit oriented)

• Implementing stringent policy by governing body (JAKIM)

• Inconsistency of global Halal standards worldwide (logo/trademark/policy)

Strategy for Islamic Product• Government support through MITI & MIDA• To facilitate GLC (government link companies) as

platform to promote Islamic product• Disseminate awareness of halal products & services• Organised effort such as Malaysia International

Halal Showcase (MIHAS) & Halal park to provide infrastructure & service support to facilitate growth of halal industry

• Standardisation of halal certification (JAKIM)• Positioning as the knowledge center for Halal trade

and investment

Product Extensio

n & Diversification

GLCPolicy

Support

Strategy for Islamic Product

Roles of Public Relation Practitioners

Expert Prescriber

Communication Technician

Communication Facilitator

Problem-solving Process Facilitator

Acceptant Legitimiser

• Understanding Islamic product & the services that can be being offered or can be offered (package them)

• Communicating effectively using both conventional (advertising, media etc) & social media

• Establish collaboration and linkage to expand further through (OIC or Malaysia in Southeast Asia)

• Branding of Islamic product & services (not restricted to Muslim but also non-Muslim)

• Building relationship with publics• Initiate CSR initiatives to increase demand & create

awareness towards Islamic product and services• Correcting any misconception or perception of Islam

Roles of Public Relation Practitioners

Public Relation Process

Identify Product

Planning

Implementation

Evaluation

Thank You Jamilah Ahmad