Under a growth blueprint mapping out the strategy to 2010, the government has earmarked key halal sectors for growth, namely in processed foods, cosmetics and personal care, pharmaceuticals, food ingredients, livestock and meat products, said Prime Minister Abdullah Ahmad Badawi.

'For industry players in these promoted industries, the incentives include investment tax allowance, or exemption on statutory income from export sales,' he said in a speech launching the two-day World Halal Forum.

'In addition, there will be exemption from import duty on raw materials as well as double deduction on expenses incurred in obtaining international quality standards,' he said.

State-backed halal industry parks have been set up in key states to facilitate investors, who can apply to the state-run Halal Industry Development, or HDC, to benefit from the incentives, he said.

A halal designation means a product complies with Islamic principles of hygiene and humane treatment of animals and other rules involving production processes.

Mr Abdullah said worldwide halal trading in products and services was estimated to be worth US$2.3 trillion (S$3.2 trillion) and has huge growth potential.

'With these steps in place, Malaysia is confident it can emerge as a major global halal hub in the future,' he said.

With energy and food prices soaring worldwide, Mr Abdullah said Muslim countries - of which many are net food importers - should venture into the halal industry especially in agriculture and food-based sectors.

Malaysia has said it would use its edge over other Muslim nations in trading, logistics, banking and halal certification to position itself as a global centre for the manufacture and export of halal products by 2010. -- AP