The Islamic month of Zulhijjah, culminating in the celebration of Eid al-Adha, is marked by the ritual of Qurbani, or animal sacrifice. While deeply rooted in religious tradition, Qurbani also generates significant economic activity throughout its supply chain, impacting various sectors from farming to logistics, employment, and food security. This article introduces the term “Qurbanomics” to describe the broad economic implications of Qurbani, highlighting its importance beyond religious observance and its potential economic benefits for Malaysia.

Understanding Qurbanomics

Qurbanomics refers to the economic activities and benefits generated by the Qurbani ritual. It encompasses the entire supply chain involved in the preparation, execution, and aftermath of Qurbani, from livestock farming to meat distribution. Recognizing Qurbanomics allows policymakers and economic planners to appreciate the full scope of Qurbani’s impact on the economy and to leverage this activity for national economic development.

Malaysia’s Islamic Economic Initiatives

Malaysia has a long history of integrating Islamic principles into its economic framework. Since the late 1970s, the country has systematically organized Islamic-related economic activities across various sectors:

1. Islamic Banking and Finance: Established in the late 1970s, Malaysia’s Islamic banking sector offers Shariah-compliant financial services, promoting ethical banking practices and attracting both Muslim and non-Muslim customers.
2. Tabung Haji: This institution provides a systematic savings scheme for Muslims intending to perform Hajj, ensuring financial readiness and supporting pilgrimage-related economic activities.
3. Islamic Insurance (Takaful): Takaful provides Shariah-compliant insurance services, fostering risk-sharing and ethical investment practices.
4. Zakat Institutions: These institutions manage the collection and distribution of zakat, the obligatory almsgiving, to support social welfare and reduce poverty.
5. Halal Food Control: Malaysia is a global leader in Halal certification, ensuring that food products meet stringent Islamic dietary laws and enhancing consumer confidence.
6. Waqaf (Endowments): Waqaf involves the donation of assets for religious or charitable purposes, supporting community development and social welfare.

Given this established framework, it is timely that Qurbanomics be recognized as another significant pillar of Malaysia’s Islamic economic activities.

Economic Activity Along the Qurbanomics Supply Chain

1. Farm Owners and Animal Husbandry

The demand for livestock during Zulhijjah drives substantial economic activity for farm owners. Farmers invest in raising animals that meet the criteria for Qurbani, ensuring they are healthy and well-nourished. This demand encourages the expansion of farms and more intensive animal husbandry practices, leading to increased land use for grazing and animal rearing. Consequently, this expansion contributes to higher land values and generates revenue for farm owners.

2. Land Use Economics

The Qurbani ritual necessitates significant land use for raising livestock. Farmers may invest in acquiring or leasing additional land to meet the increased demand, promoting agricultural development. This investment can lead to improvements in land management practices, sustainable grazing techniques, and overall better land utilization, fostering agricultural growth and sustainability.

3. Employment Generation

The Qurbani season creates numerous employment opportunities across the supply chain. From farm laborers who care for and manage livestock to workers in slaughterhouses and meat processing facilities, the increased demand for labor boosts local employment. Additionally, veterinarians and animal health specialists are in higher demand, ensuring the health and well-being of the animals, which translates into better animal husbandry practices and higher quality meat.

4. Logistics and Transportation

The logistics sector experiences a surge in activity during Zulhijjah. Transporting livestock from farms to urban centers, slaughterhouses, and distribution points requires a well-coordinated logistics network. This increased activity provides business for transportation companies, including specialized livestock transport services, and boosts demand for fuel and other logistics-related services. Efficient logistics ensure that animals are transported humanely and meat is distributed safely and promptly.

5. Standards and Quality Control

To meet religious and consumer expectations, the entire Qurbani supply chain must adhere to stringent standards. This includes proper animal welfare, humane slaughter practices, and hygienic meat processing. Regulatory bodies and certification agencies play a crucial role in maintaining these standards, ensuring the safety and quality of meat products. This emphasis on standards drives improvements in husbandry practices, slaughterhouse operations, and meat processing, ultimately leading to higher quality meat production.

Economic Benefits and Food Security in Qurbanomics

1. Quality Meat Production

The Qurbani ritual contributes to the production of high-quality meat, which is a significant aspect of food security. The meat distributed after the sacrifice provides a substantial source of protein for many families, including those who might not regularly afford it. This increased meat supply can lead to lower prices and greater accessibility, enhancing overall food security.

2. Charitable Distribution

A significant portion of the Qurbani meat is distributed to the needy, ensuring that vulnerable populations receive nutritious food. This charitable aspect not only fulfills a religious obligation but also addresses food insecurity, improving the nutrition and health of disadvantaged communities.

3. Economic Multiplier Effect

The economic activities generated by Qurbani create a multiplier effect throughout the economy. Increased spending on livestock, feed, veterinary services, transportation, and meat processing stimulates related industries. For example, demand for animal feed boosts the agriculture sector, while the need for veterinary care fosters growth in the veterinary services industry.

Beyond Meat: Leather and Related Industries

The Qurbanomics framework also extends to the leather industry and other related sectors, creating further economic opportunities:

1. Leather Industry

The hides and skins from sacrificed animals provide raw materials for the leather industry. By processing these materials domestically, Malaysia can reduce its dependence on imported leather, fostering local leather production. This can lead to the growth of leather tanning and manufacturing industries, creating jobs and stimulating economic activity.

2. Halal Food Ingredients

The by-products of Qurbani, such as bones and connective tissues, can be utilized to produce Halal food additives, emulsifiers, and gelatin. Developing a local industry for these ingredients can ensure a supply of Halal-compliant products, reducing the need for imports and supporting the Halal food industry in Malaysia.

3. Sustainable Practices

Promoting sustainable practices in animal husbandry and processing can enhance the quality and safety of these by-products. By adhering to high standards, Malaysia can position itself as a leader in Halal food production, attracting global markets and boosting exports.

Technological Advancements and Service Providers

Since 2005, there has been an increase in the number of Qurban service providers offering accessible and hassle-free services to the Malaysian public. The advancement of digital technology, blockchain, online ordering, and payment systems has made Qurbani not only easy and transparent for participants but has also enhanced governance and reduced the risk of service scams.

One such provider, Ez Qurban, has been offering services since 2005 and sees great potential ahead. They believe Malaysia can become a hub for Qurban services, attracting foreign participants and drawing funds into the country. Currently, the ratio of local to foreign participants is about 9:1, but Ez Qurban aims to reverse this ratio, InshaAllah. They currently facilitate Qurbani in 42 countries, highlighting the potential for Malaysia to lead in this domain.

Qurbanomics as a National Flagship for Economic Development

Recognizing Qurbanomics as a vital economic activity can elevate its status to a national flagship for economic development in Malaysia. By integrating Qurbanomics into the broader Islamic economic framework, Malaysia can enhance its agricultural sector, improve food security, and generate employment. Strategic initiatives could include:

1. Government Support and Regulation: Establishing policies and regulations that support sustainable farming practices, humane animal treatment, and efficient logistics for Qurbani.
2. Public-Private Partnerships: Encouraging collaboration between government bodies, private sector companies, and Islamic organizations to optimize the Qurbani supply chain.
3. Educational Programs: Promoting awareness and training programs for farmers, butchers, and logistics providers to maintain high standards and improve practices.
4. Research and Development: Investing in R&D to develop better animal husbandry techniques, sustainable land use practices, and efficient logistics solutions.

Conclusion

Qurbanomics highlights the extensive economic impact of the Qurbani rituals during the month of Zulhijjah. From farm owners and land use to employment generation and logistics, the economic benefits of Qurbanomics are far-reaching. By adhering to high standards throughout the supply chain, the ritual promotes better animal husbandry practices and quality meat production, contributing positively to food security. Recognizing and leveraging Qurbanomics allows Malaysia to view Qurbani not just as a religious act but as a vital economic activity that supports agricultural development, employment, and food security. By expanding into related industries such as leather production and Halal food additives, Qurbanomics can further drive national growth and prosperity, establishing itself as a cornerstone of Malaysia’s Islamic economic initiatives. Through strategic planning and support, authorities can enhance the economic benefits of Qurbani, fostering a sustainable and prosperous future for the nation.

Mohd Roslan Saludin
Research Fellow
The Future Research

Photo credit is from Aqiqah Centre