The “Halal” market and cultural assets
Currently, the Malaysian government is aggressively developing Malaysia as a “halal hub” for
the regional and global Muslim markets, which the Malaysian government began targeting
after launching of Halal Hub Corporation in 2008. With their tagline “Halal for all”, this
marketing campaign targets everyone, and involves a wide range of products and services.
Malaysia’s strategic location means that it is easier for people from all around the world to visit
for business or leisure. With its steady growth, the government’s move in promoting and
developing Malaysia to become a world halal-hub is a smart choice. The markets estimated
worth—US$150-billion (Fischer 2008)—and buying power strength of approximately US$1.9-
billion worldwide (Shafie & Othman 2006) offers a stable platform for Malaysian products to
enter the global market, particularly in Europe and North American. The substantial potential
of the halal market, means that many non-Muslim countries such as Australia, China,
Denmark, New Zealand and the UK are also starting to capture this market (ibid.) mostly by
offering more halal food outlets, cosmetics, pharmaceuticals and hygiene products.
Unfortunately, their products are limited and lack the professional skills that are available in
Malaysia.
With little western understanding of halal, Malaysia has an advantage in tapping into this
market. The country has all the right facilities and a clean image as a Muslim country to
become successful in this market. For example, the halal accreditation license by Department
of Islamic Department Malaysia (JAKIM) is recognised worldwide, and their certification and
logo is highly respected and sought after by businesses worldwide (ibid.). Halal covers a wide
range of products and services from food to non-food categories. Hence, Malaysian halal is
not limited to only providing food and beverages, but also covers slaughtering, storage,
display, preparation, hygiene and sanitation (Shafie & Othman 2006), Islamic finance and
banking (refer Rosly & Abu Bakar 2003), fashion (Pak 2009), cosmetics for Muslims (Abd Aziz
et al. 2010), and halal tourism. In offering a halal hub, Malaysia is also targeting halal tourism
for Muslim and non-Muslim markets.
For more than a decade, the multicultural image has always been at the centre of Malaysia’s
major marketing campaign. However, at the same time, globalisation has seen more
countries—particularly developed countries—make similar claims. Now, the concept of a
multicultural image has become a common selling point, particularly in large cities all over the
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world. Recognising this, the Malaysian government is expanding their market beyond that
image into health tourism, halal tourism, and establishing a second home in Malaysia. In order
to attract Muslim tourists—particularly from the Middle East—the government has developed
many Middle Eastern-friendly facilities. In Bukit Bintang, Kuala Lumpur there is a place called
as “Ain Arabia” or Arab Street, which offers significant Arab influences in cafes, restaurants,
and shopping complexes. This raises the issue of staged authenticity in the tourism industry
(MacCanell 1979; McKercher & du Cros 2002, 12). Also, tourists might not truly experience
Malaysian culture by visiting this type of place, which is the same as what they have in their
own countries.
Apart from halal tourism, the Malaysian government has initiated many projects in order to
become the market leader for halal products and services. Moreover, MDeC has collaborated
with Al-Jazeera to produce the animated television series, Saladin, which tells the story of a
famous Muslim war hero and his clash with the Crusaders in Jerusalem (see Fig. 7.1.4).
Figure 7.1.4: Saladin produced by MDeC and Al-Jazzera
(Multimedia Development Corporation 2010)
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Although the term, halal is not directly suitable to be used for animation or content industry
products, contemporary Malaysian animation products are suitable for Muslim audiences
because the Malaysian culture that these products are portraying has Malay (Muslim) and
traditional Asian influences. In 2010 and 2011, Malaysian local animation companies began to
produce animated television series with Muslim characters for local and international viewers
such as Bathutta, Boboiboy and Saladdin. Other Malaysian content products including books,
magazine, and television productions are suitable for the Muslim market. With low violence
and almost no obscenity, particularly in their animation, film and television products, Malaysia
can enter this market easily. The first reality show on finding young Imam was produced by
private television channel Astro, attracted international audiences, and created media frenzy in
non-Muslim countries (AFP 2010). The second season of this program is scheduled for
broadcast by mid-2011, with contestants from Brunei and Singapore. For the past five years,
Malaysian Muslim fashion designers have been active in organising “The International Islamic
Fashion Festival” in Kuala Lumpur. The annual event receives support from the government
agencies and local authorities, and attracts many international designers. Organisers have
collaborated with Indonesian fashion designers to host this event outside Kuala Lumpur.
However, there have been heated protests liberal-thinking Malaysian non-Muslim and Muslim
creative talents who are reluctant to be associated with Muslim or Malay images. For instance,
some of the non-Malay film-makers and audiences in the country question film needing to use
Malay language (Hoo 2006), which is the country’s official language, in order to be designated
a Malaysian film. This shows that some Malaysians are still confused about their own identity,
and have strong feelings regarding their ancestors’ land and western influence. Malaysians
normally speak their mother tongue instead of Malay, and watch the films and television
programs from the land of their ancestors. Some may speak English and watch western films
and television programs. These audiences tend to use other mediums to practise their
creativity, and are prone to identify themselves as the “indie group”. Their end products are
normally more controversial, lack Malaysian traditional culture, and are more global with
significant western elements. Nonetheless, once they join the mainstream sector they tend to
tone down their controversial ideas to fit into the main market, and to obtain government
support for their projects. Not only are they following government rules and regulations for the
sake of government funding, but the indie market is too small for them to survive long term.
For example, FINAS statistics show that indie films released without FINAS approval had poor
box office figures.
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Mainstream Malaysian filmmakers can accept the rules and regulation set by the government
that are described by indie filmmakers as too strict and limiting creativity. Some commercial
film activists accuse this group of filmmakers as overconfident with their own ability.
7.1.5: RQ4: How can Malaysia position itself in the region’s creative economy?
In order for Malaysia to position itself in the creative economy in the region, three imperatives
are suggested, namely,
1) Local to glocal culture
2) Policy improvement
3) Diversification of target market.
1) Local to glocal culture
The impacts of globalisation are unfolding quickly, and at the forefront of this new phenomena
are the developed countries, of which the majority are in the west. In recent years, developed
countries from the East, including Japan, and South Korea, have broken this western
monopoly, and now other countries in the East use these two countries as their model to
develop their scientific, economic, and technological sectors. For example, in Malaysia the
Look East Policy was launched in the 1980s to develop their culture and economy using the
same models as Japan and South Korea. However, some of their policies are not suitable for
Malaysia, and were amended by Malaysian policymakers to make them more suitable to local
environments that are significantly influenced by Malay culture and Islam teaching. This
practise—generally known as glocal culture—intermingles the global and the local (Robertson
1995, 26). Recognising the inevitability of globalisation—particularly in the face of the rapid
growth of ICTs and Internet usage—Malaysia’s latest marketing strategy promotes glocal
culture as their image in the global market. At the same time, much of the Malaysian public is
keen to protect their multiethnic and religious traditional culture.
Cultural protection is still relevant in this era, particularly in a multiethnic and religious country
like Malaysia. Developing countries can embrace advance technology and elements of culture
from developed countries, but they also can be proud of their own culture. Not all elements of
global culture and technology are good, and some of them conflict with Malaysian and Eastern
traditional cultures. Some hazardous technology—like modified drugs and nuclear weapons—
could cause great harm without proper management. In addition, local tradition is one of the
unique strengths of Malaysia. Trying to slow or stop globalisation might have a negative
impact on the country and discourage foreign investment. Thus, glocalisation is a more
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appropriate tactic for sustainability in developing countries like Malaysia, in that it will help to
save the local culture from extinction, and encourage the younger generation to become more
appreciative of their traditions. Also, this will foster acceptance within the global community.
Therefore, the content industry can be used by Malaysian government as an important
medium to unite Malaysians and world community. Like regional and global sporting events,
glocalisation can foster better understanding, and build good relationships among locals and
the international community.
Glocalisation has already been adopted by the Malaysian content and cultural tourism
industries to gain wider attention in their respective markets. Failing to do so might affect their
chances of attracting more viewers and visitors on their products and services. For instance,
most of Malaysian content products previously failed to gain minority ethnic audiences in
Malaysia and outside the country. At one point in early-2000, the sector reached its lowest
point, as most local animated production ceased production. Then, in 2005, LCP released
Upin and Ipin, and with the series’ glocal features, became a significant phenomenon in
Southeast Asia and other parts of Asia. Their products have become the most successful
Malaysian animated series and 3D films in history using 100 per cent local creative talent.
Hence, glocal elements might be the best answer to close the gap between what all the ethnic
groups in Malaysia and global market needs and wants.
Glocalisation is more significant in the content industry than in the cultural tourism sector,
particularly in the museum sector, which could be one of the reasons why Malaysian
museums have lower attendance rates. The museum sector in the country should add more
global features like the content products to their museums, but retain their local culture
elements. More glocalised features might attract more interest from potential visitors. Although
traditional culture is important, modern features—particularly the use of advanced
technologies—can help to bring raise the museum sector to higher level. Thus, a combination
of the two is necessary. This research found that glocalisation is the most suitable concept—
especially considering current limitations in technology—to be adopted by developing
countries that depending significantly on their cultural resources for economic growth, and to
remain competitive. Since Robertson (1995) introduced the concept of glocalisation more than
two decades ago, and only from the western perspective, further study on this concept in an
Eastern context is warranted.
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Malaysia is the ideal country to a flagship for the concept of glocalisation, particularly in terms
of the close similarities between countries in the Eastern region. The glocalisation models and
policies of western countries may not be suitable for these eastern countries. Their experience
with foreign colonisers from the East (Japan) and West (Portuguese, Dutch and British)
between the sixteenth and nineteenth-centuries, means that there are many things could be
learnt from Malaysia. Also, the formation of Malaya, and then Malaysia since the nineteenthcentury
involves a combination of Eastern and Western cultures. Many Eastern countries
share a similar historical and colonial background like Malaysia, therefore Malaysia has a
strong claim to become a leader in glocalisation issues. The country may lack creative and
technological skills, but it has rich cultural experiences in relation to the unity of multiethnicity
and religion from the East and the West. Also, their cultural attractions are being underrated
significantly compared to developed countries. For example, when other countries may have
only one king and queen, Malaysia has nine Sultans from nine states who are elected to
become King on a rotational basis every four years. Their rich cultural background and
experience with multiculturalism means that Malaysia could be the leader in glocalisation and
globalisation matters.
While some may argue ethnic unity in Malaysia is superficial particularly the Malaysian
opposition political parties, many agree that Malaysia is an example of a successful
multicultural society (see Khalifah & Tahir 1997; Musa 2000; Van der Westhuizen 2004).
Malaysia is among the first countries in the world to promote this image in the market, and is
the first to experience globalisation. When most developed countries are promoting
multiculturalism as one of the characteristics in globalisation in the market, Malaysia had long
experienced that culture. The majority of Malaysians are happy living together side by side
because this is part of their heritage. They have high tolerance with each other, and each
culture is influenced by the other. Malaysian culture is unique because of these cultural
combinations.
However, there are many issues that need to be addressed in order for Malaysia to become
the glocal leader for developing countries. Firstly, the research culture in Malaysia needs to be
upgraded significantly. More research work on the history of Malaysian culture and glocal
features should be undertaken from a local perspective. At the moment, there is limited data
about global and glocal topics in Malaysia, and most of the research has been done by
westerners. With their understanding of their culture, local researchers are well-positioned to
take an active role in examining this topic to gain a deeper understanding of the concepts.
Secondly, Malaysian marketing campaigns and promotion lack creativity. With such cultural
wealth, Malaysia should be able to attract significant numbers of domestic and international
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tourists compared to developed countries with limited cultural resources. However, Malaysia
still fails to attract these cultural tourists. A third problem is evident in the poor maintenance of
tourist destinations by local authorities; some attractions have been left unattended, creating a
waste of resources. Malaysia has a significant opportunity to become world leader in glocal
and global issues, particularly relating to multiethnic and religious culture, but the government,
private sector, and public should be more responsible in improving their infrastructure and
attitude. Importantly, Malaysian researchers have yet to reach global standard. Now is the
time for them to become glocal researchers and later global researchers in order to inform a
better position in the regional and global creative economy.
Policy Improvement
Both new and traditional sectors are vital to the growth of Malaysian economy and society. As
the CEO of MDeC (Ramlee 2011) observes, the government promotion of a content industry
is not fun, but rather a serious business. He says the creative content industry is far bigger
than the information technology industry, with a net global worth of US$2 trillion including
animation, gaming and interactive comic books, special effects tailor-made for films, digital
content for mobiles, and visual effects (Ramlee 2011). Malaysian exports in creative content in
2010 totalled RM114.48 million (approximately AUD 38 million) (Business Times 2007), a
figure that is expected to increase in 2011 (Ramlee 2011). MDeC is collaborating with private
companies to find something new and fresh for the export market. Culture as acknowledged
as the most important element in the content and tourism industry, therefore Malaysian
policymakers should strengthen their cultural policies. Although, these are more advanced
compared to those for new sectors like the creative economy, some older policies need to be
revised to be more relevant in this era. Many issues need attention and improvement from
Malaysia policymakers, particularly in terms of a clearer definition of creativity.
Further, MSC project paid too much attention to tangible facilities rather than intangible
aspects (Jarman & Chopra 2007, 197; Ramasamy et al. 2004, 1196), and the knowledge
economy has been narrowly defined as relating to science and technology (ICT) (Evers 2003).
As a result, the MSC faces many shortcomings in their early stages of development.
Additionally, Jarman and Chopra (2007) argue Malaysia offers developed countries sources of
cheap labour for their animation sector and content industry. To date, the novelty of creative
sector development in Malaysia means that there limited guidelines for the market players.
Many are still being formulated by the government, while some are irrelevant or need
improvement and modification. In addition, the Malaysian government is accused regularly of
not being transparent enough in its decision-making (Pandiyan 2009; Sindhu 2009),
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particularly in terms of budget allocation and funding. Although funding is provided by the
government, it is difficult to obtain. The industries claim that cronyism and favouritism are
evident in the allocation and approval of funding and projects. Many demand a more
transparent system. Additionally, approval of applications can take months. Sometimes, by the
time a film script or television drama is approved, the production company has to make many
changes to the script because of other commitments and weather changes. Also, those who
obtain government funding have to follow the rules and regulations set out by the government,
and thus face restriction of their creative freedom. The government has to be more
transparent with their policies and less political in their decisions. All private companies should
be given fair treatment when tendering for government megaprojects. Financial assistance
should be given to companies that have unique products and services with comparative
potential. Frequent dialogue and seminars should be conducted between the government
agencies and those involved in the development of creative sectors in the country.
However, the government—with the help from private sector—is slowly overcoming these
problems. The past three years have seen positive changes in Malaysian creative sectors.
The MSC development is radically different from Silicon Valley and it will take longer time to
achieve a similar success, but each country has different experience in any developments.
Even different places within one country have different experiences in new developments.
This does not guarantee success for the MSC, even if the development studiously follows the
Silicon Valley model.
Unfortunately, the whole Malaysian cultural sector—and particularly the museums—are facing
decreasing attendance rates. Although museums in Malacca and Sarawak still attract
substantial numbers of visitors, they are face fierce competition from other modern tourism
attractions. Innovation and new governmental directives should be imposed on Malaysian
traditional cultural institutions, since Malaysians are accustomed to a top-down approach. The
government should take the initiative to encourage cultural institutions like museums to play a
more prominent role in their community. Malaysia has rich cultural natural resources that
deserve more attention from policymakers and local authorities. Many heritage buildings and
sites in the country are not given proper attention. This is also due to weaknesses on behalf of
the Malaysian government in enforcing their policies. While they have the policies for certain
areas, the processes of implementation are weak, and their marketing campaign strategies for
cultural attractions are also poor. All of these issues need urgent attention because they affect
economic growth. Malaysian ICT facilities—particularly in cultural institutions like museums—
should be improved all over the country to make venues more attractive, and help maintain a
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competitive edge. Currently, improvement of ICT applications only focused on certain sectors,
and museums possess the least technologically advanced applications.
In terms of research study, government funding for the creative industries or social sciences is
difficult to obtain compared to pure science research. This demoralises non-science
researchers from doing quality research; consequently, Malaysian research into the content
and tourism industries is neglected. The social sciences are as important as pure science
because they study the diverse aspects of human behaviour that makes up a national
community. The Malaysian government should allocate more funding for researchers in this
area in order for them to achieve the national goals of Vision 2020.
Also, the Malaysian corporate sector should improve support for the growth of content and
cultural tourism by providing funding or loans to market players, specifically SMEs. Currently,
while some of them do so, the funding on offer is too small and only focuses on metropolitan
businesses. Most remote and rural SMEs are ignored by the Malaysian corporate sector. The
establishment of the Ministry of Rural and Regional Development caters to issues relating to
Malaysian rural regions, but Malaysia’s corporate sector should play a more prominent role in
assisting the government to reach rural communities. More financial aid and moral support are
needed in the rural areas for their SMEs to survive. Once again, the government can offer
incentives to those corporate companies who are willing to support rural SMEs.
I argue that the domains of creativity identified by Mitchell et al. (2003) should be increased
from four to five domains. Beside scientific, technological, economic and cultural domains,
there should another domain: policies creativity (table 7.1.5). Growth of creative sectors not
only depends on these four domains; policymakers in developing countries also should be
creative. Many authors (see Low 2001, 7; Yue 2006, 18) argue that the success of
Singapore’s economy came through creative policymakers.
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Table 7.1.5: Domains of Creative Activity (Modified)
(Mitchell, Inouye & Blumenthal 2003, 22)
Diversification of target market
Currently, Malaysia practises diversification by globally marketing their products and services.
The Malaysian government is moving towards capturing the Muslim and non-Muslim markets,
particularly through their content and cultural tourism sectors (Khalid 2009); in the global
market, they are promoting multicultural products, while in Muslim markets, they are promoting
a moderate Muslim image with their halal hub. At the same time, the Malaysian government is
cautious not to push too many Muslim characteristics, and tries to balance the country’s image
with other images, not only because Malaysia is a multiethnic and mixed religion country, but
also because of “global Islamophobia”. This issue has prompted the Malaysian government to
take extra precautions in their marketing campaigns. Hence, rather than referring to an “Islam”
or “Muslim” hub, the government refers to a “halal hub” to market Malaysia globally. The
government fears that by overly using referring to Islam and Muslim, they might cause a
negative impact on their non-Muslim market. Malaysia’s marketing campaign depicts the
country as a modern, multiethnic, Muslim country (Van der Westhuizen 2004, 1278). The
government is using these images to building Malaysia’s national identity in all sectors. While
there is domestic and international criticism about government policies that allegedly favour
the Malay (or Bumiputra) ethnics and Islam (see Business Week 2003), the majority of
Policy
Creativity
Scientific
Creativity
Technological
Creativity
Economic
Creativity
Cultural
Creativity
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Malaysians tend to follow governmental direction. As a result, the country has become a
worldwide model for multiethnic and religious unity. As one of the popular developing
countries, more attention is paid to every aspect in Malaysia. With pressures from within and
outside, Malaysia has to take care with their internal affairs.
In 2010, over 200 local companies in Malaysia specifically focused on the area of animation,
post-production, e-learning, mobile and creative content within the MSC area. These
companies offer the services of more than 7,000 skilled and experienced professionals (Abu
Bakar 2010). This strength and growth is propelling the content industry in Malaysia,
particularly the animation sector, towards the global market. The strong support for the
Malaysian content industry received from the local market over the past three years is
encouraging more confidence in local companies to market their products globally. LCP plans
to expand their market in Southeast Asia, India and Latin America; local companies like Handy
Pro are eying Saudi Arabia (Abu Bakar 2009); and Igloo Digital Arts, Netcarbon and Shock3D
are examining the international market (3D Magazine 2010, 20-21). These companies
collaborate with international companies as partners on international projects. However, little
Malaysian culture is evident in internationally-marketed animated products. Their scripts
feature low violence scenes and are suitable for a family-oriented market, but their products
have significant global features (refer Fig. 7.1.5).
Figure 7.1.5: Alamaya: Garden of Beautiful Creatures by Shock3D
(Shock3D 2011)
With cultural wealth, cheap labour, and positive support from the government, Malaysia has
significant potential to become competitive in the regional creative economy. Her location in
Southeast Asia allows a closer proximity to regional market leaders like Japan, Singapore,
South Korea and Taiwan. This will contribute a spill-over of wealth from these countries to the
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Malaysian economy. Also, the rapid economic growth of China, India and Vietnam will bring
benefits to Malaysia, particularly in the creative sector. Hence, Malaysia should focus first on
marketing their creativity regionally, where other countries share similar histories and cultures,
and there is substantial potential in creative economic activity. The novelty of these sectors,
and a high interest among governments in the region, means that Malaysia can become one
of the market leaders. With her high regional profile, it is possible for Malaysia to establish a
strong position in Asia’s creative economy. For instance, countries like Hong Kong, Saudi
Arabia and Thailand seek Malaysia’s advice in developing their creative content sectors.
Hence, Malaysian government should have good strategy and planning to improve their
position in the creative economy in the region. Their policies also should be competitive with
other governments.
7.2 Conclusion
These two case studies in Malaysia exemplify Keane’s (2010) argument about fitting new
ideas and alternative visions to existing norms, values and patterns. Rather than creating a
totally a new idea, the two case studies demonstrate the advantages of adapting other
established concepts and models. This reduces the high risks encountered in competitive and
unpredictable sectors because some creativity may take time to be accepted. Developed
countries like Japan began with this approach, imitating elements in the creative products and
services of established developed countries.
The two case studies found a mixture of Malaysian culture and ICT application as part of the
unique identity used in marketing their products and services. Both LCP and PERZIM
products and services have fostered income generation, job creation, and export earnings
while promoting social inclusion, cultural diversity, and human development. Also, they
embrace economic, cultural, and social aspects through interaction with technology. LCP
animation and 3D products introduced aspects of Malaysian culture to the market through
advanced technology. They are also involved in intellectual property (IP) development, an
area that PERZIM might soon investigate. The transformation of PERZIM from traditional to
modern models has attracted more visitors to their museums—particularly younger generation
keen to learn about Malaysian history—and help to meet government tourism objectives. With
inter-ministerial collaboration, the development of LCP and PERZIM is feasible in terms of the
innovative elements and multidisciplinary responses that emerge from the combination of
culture and technology and their products and services. At least three ministries are involved
directly with the Malaysian animation or content industries—including the Ministry of
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Information Communication and Culture (MICC); Ministry of International Trade and Industry
(MITI); Ministry of Science, Technology and Innovation (MOSTI)—and cultural tourism—
MICC, MITI and Ministry of Tourism (MoTOUR). These all make contributions to the five major
characteristics of creative economy as defined by UNCTAD (2008, 15) namely,
• it can foster income-generation, job creation and export earnings while promoting
social inclusion, cultural diversity and human development;
• it embraces economic, cultural and social aspects interacting with technology,
intellectual property (IP), and tourism objectives;
• it is a set of knowledge-based economic activities with a development dimension and
cross-cutting linkages at macro and micro levels to the overall economy;
• it is a feasible development option calling for innovative, multidisciplinary responses
and inter-ministerial action; and
• at the heart of the creative economy are the creative industries.
Unfortunately, these UNCTAD characteristics are too broad, and there is no assurance that
the concept of a creative economy will be workable. This new concept needs more study to
understand the challenges faced by developing countries like Malaysia. To some extent, there
is a romantic perception about creative economy as the answer for economic transformation in
developing countries (Keane 2007; 2010). UNCTAD special report on developing countries
has become the major guideline for many policymakers to develop their creativity sectors. This
report has become the champion for developing countries to compete fairly with the developed
countries. However, the reality is far from perfect, particularly when many developing countries
still struggle with other important issues like legal systems (Schultz & van Gelder 2008, 139)
natural disasters. While they have rich cultural resources, developing countries still lack
creative skills, funding, and technology. As a result, the markets for content and tourism are
limited in the Asian region, with even less attention from other regions, particularly in the
animation sector, which has not penetrated the American, African and European markets.
Despite this, Malaysia’s rich cultural resources offer significant potential for the content and
tourism industries. This country can become a market leader in global and glocal issues.
However, to reach this goal, there are many aspects that need to be addressed by the
stakeholders. One major aspect involves policies, which need to be creative to suit global
forces. Currently, Malaysia has sufficient technology and natural resources, but lack of
creative policies. Policymakers need to produce creative policies in order for the country to
become competitive globally. Malaysian has unique characteristics, and with their glocal
features, has significant potential to become competitive through their creative sectors.