The Department of Trade and Industry (DTI) and the DK PO Fulfillment Company Inc. (DKPOFCI) signed a Memorandum of Understanding (MOU) on Monday, Oct. 16, to offer non-interest-based financing to micro, small, and medium enterprises (MSMEs), enabling their integration into the Halal industry.

“Their [DKPOFCI’s] support will be pivotal in offering non-interest financing options for the inclusion of MSMEs in Halal development,” DTI Secretary Alfredo E. Pascual said during the launch of the Philippine Halal Economy Festival and Investment Philippines Week at Kingsford Hotel Manila.

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 to empower 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 such as logistics management; quality control and inspection; custom brokerage; insurance; and global sourcing and procurement.

Further, the MOU outlines the DTI's mandate to promote DK's Halal Task Force program and identify potential MSMEs for financing, subject to applicable laws, rules, and regulations.

For his part, DKPOFCI Executive Chairman Antonio Intal said, “we don’t want to concentrate on the big picture, we want to concentrate on the smaller picture, which is helping you fulfill the transaction,” stressing that the program incorporates a holistic approach.

Intal said that DK aims to boost Halal industry growth through an end-to-end entrepreneurial ecosystem, including education, pre-seed funding incubation, acceleration, market penetration, and growth funding via transactional venture capital.

He also mentioned that the DK “accidentally” discovered Islamic funding and wanted to pursue the initiative.

“It is important that we’re here. If we join this [Philippine Halal initiative], people will join, people will come,” he added, emphasizing that it is important to make people think that Halal is for all.

In addition, Intal also highlighted the importance of expanding the market environment. “Our development is depending on a tripod. One, market development, two, business development, and only then can finance come in,” he said.

DKPOFCI has been operating for eight years in the Philippines with Islamic funding, offering innovative PO Fulfillment solutions and management consultancy to SMEs, and providing diverse products and services.