| kasehdia.com | www.halaljournal.com | JAN+FEB 06
our first year anniversary
AUSTRALIA AU$6.50 • MALAYSIA RM9.90 • SINGAPORE S$5.50 • UAE DHS10 • UK £2.95
PP 13884/ 10/ 2006 | MICA (P) 135/ 12/ 2005
HALAL MARKET TRENDS
IN USA, EUROPE AND NEW ZEALAND
PALM OIL: MALAYSIA’S HALAL SLEEPING GIANT? AUSTRALIAN MEAT BAN: The Saga Continues
Halal
sky
in the
ISLAMIC UNIT TRUSTS IN MALAYSIA
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How one company is revolutionising airline food
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LIVING : M.N A S I R O N I S L AM, MUSIC AND E N T E R TA I N M E N T +GOOD MUSIC FOR HEAR T AND SOUL +TRAVEL TO CHINA WITH PEACE OF MIND +‘E’ NUMBERS IN FOOD 1/3/06 9:35:06 AM
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J A N UA R Y + F E B R UA R Y 2 0 0 6
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HALAL IN THE SKY
A Malaysia and German venture dominates airline Halal food service in the world, complete with a world’s first samak machine.
contents
18} HALAL BUSINESS FORUM
The World Halal Forum in May will be the first event to focus on the business of Halal. Here’s why
19} AMERICAN HALAL MARKET
Producers picking up the pieces after 9/11
21} EU MARKET TRENDS
www.halaljournal.com | ISSN 1823 1411 • PP 13884/ 10/ 2006 • MICA (P) 135/ 12/ 2005
Making sense of changes in the UE retail sector
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22} MALAYSIA–AUSTRALIA HALAL MEAT SAGA
The latest in Australian banned meat
28} PALM OIL: MALAYSIA’S HALAL SLEEPING GIANT
How can palm oil be a sleeping giant when Malaysia is its number one producer in the world? Read on
31} UNIT TRUST IN MALAYSIA
Basic things you need to know ©2006 KasehDia Sdn. Bhd. All Rights Reserved
DISCLAIMER : While all care is taken, the publisher accepts no responsibility for the information contained herein which is believed to be reliable. The publisher/editor takes no responsibility for opinions expressed or implied as they are the writers’ own and do not necessarily reflect that of the publisher or editor who make no warranties governing material, including advertising or features contained within this publication. This publication may not in whole or part, be copied, reproduced or translated without prior written permission of the publisher.
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Ed’s Note NEW YEAR, NEW LOOK.
T “Our local music will reflect the nation, the people itself.” M.NASIR
Regulars 08} QUIETLY SPOKEN 08} GLOBALNEWS 14} CALENDAR OF EVENTS 15} BETWEEN THE LINES
Lessons Learned from the Giant Retailers
16} MATRADE NEWS
The CEO himself talks about the deal with Muslim products
This issue marks the birthday of The Halal Journal; we are now officially one year old, and to celebrate the occasion, we have decided to make a few changes. And they are more than skin deep. Our change of design reflects an improvement in content. In addition to our bold new masthead, we have also decided to broaden our reach. We have received feedback that there is increasing consumer interest in the world of Halal products and services and we are accordingly widening the scope of the magazine. Halal is fast becoming recognised as a lifestyle choice – and, as important as food is, it is not just about what you eat. Halal is much wider than that. It encompasses all the diverse elements that go to make up a way of life. To reflect this, we have added a new lifestyle section called ‘Living’ to cover some of these new topics of interest. You can now also expect to read more about music, fashion, product reviews, books, films and other services that are in line with the concept of Halal and moderation in Islam. This is of course on top of the all business articles on the global Halal market, hence our new tagline- BUSINESS. LIFESTYLE. TRENDS. So to kick off this New Year’s new magazine we’ll tell you, amongst others, why your airline food is safe, how palm oil industry is just warming up and go inside the mind of an iconic Muslim artist. The Halal Journal team would like to wish ‘Eid Mubarak’ to all our Muslim readers.
36} COUNTRY FOCUS
NEW ZEALAND : How a Christian country is all about Halal
the Halal Journal team
48} PARTING WORDS
Man on a Halal mission, Dr Mohamed Sadek answers our questions
Living 40} PEOPLE
M. Nasir on Islam, music and entertainment
42} TRAVEL
Travel to China with Peace of Mind
43} BROWSING
Good music for heart and soul, restaurant review, website review and more
45} ON DISPLAY
Check out the good products for Muslim consumption
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MANIFESTO
:: the Heart of The Halal Journal :: Halal refers to that which the Creator has made lawful. Its apposite, Haram, refers to what is forbidden. These parameters has been designed for health, safety and benefit of all mankind regardless of age, faith or culture. The realm of the Halal extends beyond the obvious references to food and touches all matters that relate to human life. In the commercial arena, all goods and services, markets, transactions, currencies and other activities come under the judgments of Halal and Haram. These parameters include protecting the environment, humane treatment fo animals, ethical investment, the intrinsic value of currencies and fairness in all commercial transactions. We believe that the emerging global Halal market will be one of the great market forces in the coming decades.
1/2/06 7:09:25 PM
KASEHDIA HALAL GUIDES “The world’s first series of Halal food restaurant guides.”
THE TEAM Editor Jumaatun Azmi
Asian Wall Street Journal
Writers Kamarul Aznam Contributing Writers Salama Evans, Shahreen Nayan Director, Research & Intelligence Abdalhamid Evans
Top 3 ‘Best Guide in the World’ for 2004 Gourmand Awards
Creative Director Nori Abdullah Graphic & Design M. Zailan Director, Sales & Distribution Nordin Abdullah
CORPORATE Managing Director Sales Director Creative Director Directors
Jumaatun Azmi Nordin Abdullah Nori Abdullah Abdalhamid Evans Fareen Shazli Ali
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PARTNER EVENTS
Available in all major bookstores www.kasehdia.com • info@kasehdia.com
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Quietly Spoken
GlobalNEWS
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THE BEST OF BOTH WORLDS
“Pork dumplings? Clutching one of the specially printed menus, one red-faced organiser stood up and apologised for menu items that were obviously not Halal.”
T
he saying ‘best of both worlds’ has come to carry a slightly negative overtone. It’s like the idea that ‘you can’t have the cake and eat it too’. But yet Muslims ask for the ‘best of both worlds’ in our prayers. So why is there a gap in these two realities? It is important to understand that we should have both successes in this world and the hereafter. Because everything the Creator asks us to do is attainable, or He would not ask us to ask for it. With that in mind, Islam comes with built-in tools for management. The Azan (call for prayer) is an interesting and important element of Islam. For five times a day, the Azan calls the faithful to pray. But that is not all it does. The line “Let Us to Success” is repeated twice in each Azan; success in this world and success in the next. Success means the best of this world and the best of the next world. The concept of success is something that management wants to build into every person in the organisation, yet many are not taking advantage of the resources that are at their disposal to achieve this. In our struggle to succeed, we have little battles and big wars to win. Continual improvement is the order of the day. Likewise, as the Azan calls us to success, it also leads us to a higher goal. This element should be used in day-to-day management. Imagine the level of productivity, if we think about success in the morning, noon, afternoon, evening and night, using the Azan as a reminder. It means improvement five times a day, seven days a week, even during holidays. The best part is, the Azan comes free of charge with hj global coverage.
:: HONG KONG
HALAL FAUX PAR AT THE WTO
Having endured several hours of negotiations at the recent World Trade Organisation meeting in Hong Kong, members of the Saudi delegation on Wednesday took some time out to give a lunch presentation to hedge fund managers at the exclusive China Club. The event, which was sponsored by a local brokerage house, got off to a wobbly start when microphone problems forced the Saudi minister of commerce and trade to shout his message across the room. The fund managers and Saudi government officials gracefully ignored the technical glitch, as they were looking forward to a sumptuous, eight-course Chinese meal, complete with crispy fried chicken, poached garoupa and steamed pork dumplings. Pork dumplings? Clutching one of the specially printed menus, one red-faced organiser stood up and apologised for menu items that were obviously not halal. Again, Saudi delegates put on a brave face. But with their stomachs half empty, some delegates might have found it hard to return to the negotiating table. | SOURCE: THE FINANCIAL TIMES, 14/12/05
:: UNITED STATES
FARMERS GET A KICK FROM THEIR GOATS
Steve Wagoner, like many small farmers across Missouri and Illinois, believes he’s caught the upswing in demand for freshly killed goats just about right. “Now we’re feeling gale-force winds,” he said. “Now we’re seeing a steadily increasing demand for high-quality meat.” The reason: the growing Muslim population from the Middle East, southern Europe, the former Soviet Union, south Asia and Africa, as well as immigrants from Mexico, Latin America and the Caribbean. “We’re seeing extreme growth (in goat farming) in the former tobacco-producing states,” said Marvin Shurley, president of the American Meat Goat Association, based in Sonora, Texas. “Goats also allow land that is not usable for other purposes to be put into agricultural production.” While customers from the Western Hemisphere might be less particular, many Muslims want young, fresh goats for religious and personal celebrations. For instance, many will buy two young goats to eat when a baby boy is born and one for a baby girl. Harry Richmond’s small slaughter house, a family business since 1953, caters both to Muslims and Jews who want animals killed according to their religious laws. The business is changing, said Richmond, a Roman Catholic. “Kosher’s going down, and Muslim’s going up.” That’s the trend that’s caught the attention of the increasing number of goat farmers. In 2005 the US has 1.97 million meat goats and 7,400 goat producers. Its largest producer state is Texas. | SOURCE: STLTODAY, 18/1/2005
THE HALAL JOURNAL
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Event highlights :: MALAYSIA
MANUFACTURERS TOLD TO LABEL CONTENT OF HALAL PRODUCTS IN DETAIL
Producers and manufacturers have been advised to specify in the label of their Halal products what they contain to avoid confusion by consumers. Domestic Trade and Consumer Affairs Minister Datuk Mohd Shafie Apdal said at present the Halal label on some products did not indicate whether the products were truly Halal especially when scientific terms were used. This frustrated consumers as they would need to obtain the exact meaning of such ingredients in order to clear their doubts, he said in a speech at the opening of a seminar entitled “Understanding Halal from the consumer perspective” organised by the ministry and the Federation of Malaysian Consumers Association (Fomca). Mohd Shafie also advised non-Muslim producers to be well versed with the production requirements in accordance with Islamic principles. He said it was best for the producers to employ Muslim staff who could advise them on the issue or alternatively the company could set up a Halal monitoring committee. “The vast majority of Muslims in this country who are the main consumers of Halal products and the potential to export such products to other Muslim countries like in the Middle East create a world market with an estimated value of RM2 trillion. Hence, recognising the enormous potential, the government has announced that it is Malaysia’s vision to become the global Halal food hub,” he added. | SOURCE: BERNAMA, 18/11/2005
KLIFF 2005
The recent Kuala Lumpur Islamic Finance Forum (KLIFF 2005) was well received by the participants, expressing it as a “fruitful and engaging” affair. Topics covered include critical success factors in Islamic finance, updates on Islamic financial products and services and development around the globe. It also touched on Islamic finance’s market opportunities, dynamism of fatwa, Islamic derivatives, pricing and performance analysis in Islamic Finance. Over 200 scholars, practitioners and academicians were present. Several institutions were later presented with the Islamic Banking Awards during their gala dinner, with CIMB Islamic Malaysia and Gulf Finance House Bahrain receiving the Most Outstanding Islamic Financial Institution Award for the Malaysian and international categories respectively.
:: PHILIPPINES
MINDANAO PUSHED TO BECOME HALAL CENTER
Two Moro non-government organizations, the Muslim Business Forum, a prime mover on Halal advocacy, and the National Halal Fatwa Council are pushing for Mindanao to become the Halal hub of the country. Both groups are hopeful the move will boost the island’s economy once Philippine Halal products enter the global market. “We need to put up first strict and world class Halal certifying entities that will put Halal seal on food and non-food products of our country so it can penetrate the market in the Muslim world,” said Sheikh Salih D. Musa, chairman of Region-12 Halal Fatwa Council. “One of the requirements of Halal certifying bodies is that there must be Muslim workers in the production and some monitoring officers who will check if the raw materials from farm to factories will be free from Haram,” explained lawyer Guialil Kanda, field director of the Office of Muslim Affairs in Region-12. The MBF and region 12 Halal Fatwa Council is planning to put up the Mindanao Halal Service Center in General Santos City. The center is where Muslim workers will be trained and they will then be deployed to plants that are certified as Halal producers and have the laboratory for testing products to be certified as Halal. Before putting up the center here, the two entities will send four technical staffs and 2 ulama [Muslim scholars] to Australia to study the Halal certification process there for replication in this country. Early in October the OMA, the Departments of Agriculture, Trade and Industry, Science and Technology, and Health and the National Halal Fatwa Council created the Philippine Halal Industry Development Council. The council’s primary objective is to push for the Halal industry development with the National Halal Fatwa Council as the body authorized to put Halal seals on export products. | SOURCE: MINDANEWS, 11/12/05
LETTERS
Letter 1
Dear Sirs, We are a Spanish consultant company interested in knowing a little bit more about Halal, its requirements and economic data. I have been taking a look at your journal, which I found really interesting, but I have not seen any economic data related to the consumption of Halal products around the world. I would be interested to know the rates of consumption of this kind of products per country and the economic information. Rocío González Martínez Palencia - SPAIN
Letter 2
Dear Halal Journal, I am just writing to comment on the Halal food and quality issue. It is noble what the government is doing in promoting Halal food and hopefully Malaysia as a Halal hub. Food industries all over the world should by now be aware of the Halal requirements for foods intended for Muslim consumption. The Halalness will become one of the most important criteria for success in the world market. Time will come when multinational companies all over the world decide to switch to Halal food production and join the vast market of Halal food. I can foresee the future of quality food products all over the world being marketed in Malaysia and we the consumers will be the lucky beneficiaries of this move. Hopefully our SMIs are up to the challenge in ensuring high quality products to compete with these multinationals. This quality requirement will also be necessary if they (our SMIs) were to join the export market. Dr Azhar Mat Easa Food Technology, Universiti Sains Malaysia
THE HALAL JOURNAL
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GlobalNEWS :: KENYA
BARCLAYS INTRODUCES ISLAMIC BANKING IN KENYA
To meet the needs some 8 million Kenyan Muslims who desire to remain compliant with their faith, Barclays Bank of Kenya has launched Islamic banking products. Barclays Bank Managing Director Adan Mohamed said his bank became the first one to launch Islamic banking products in Kenya, targeting thousands of its Muslim customers who profess the Muslim faith. Muslims can now get the services through the La Riba Current Account, designed to address the sensitivities of customers who adhere to the Muslim faith, which forbids the earning, or payment of Interest. “This product will not be exclusive to Muslims. We encourage non-Muslims to use it too. Just as we accept deposits from people without regard to their faith,” Mohamed said. He said Islamic Banking will be extended to all customers, unless there is “very strong reason” to suspect that the funds will be used for non- Shariah compliant activities. | SOURCE: ANGOLA PRESS, 21/12/05
:: MALAYSIA
CARREFOUR LOOKS TO OWN BRANDS
Carrefour Malaysia, the local unit of the French retailer, expects its two household brands to make up 15 per cent of its sales by the end of next year. The first, Carrefour Big Saver, comprises essential goods sold at a lower price than the cheapest available item on the shelves, while the Carrefour household brand offers goods of equal quality to the leading brand in the market but will be cheaper by up to a fifth. There are currently 300 products supplied by 11 small- and medium- sized enterprises (SMEs) carrying the Carrefour brand. The Carrefour range of products has made up 13 per cent of total sales since it was introduced in outlets about a month ago. The group, which experiences 5 per cent growth a year, is projecting revenue of RM1.1 billion this year. Managing director Patrice Rincheval said Carrefour is continuously studying the market to include more categories for local SMEs to supply. It plans to increase local products supplied by SMEs by another 1,000. “Malaysia will be the halal hub for our Carrefour brand products, which have already been exported to Singapore and will also be exported to other countries by the first quarter of next year,” he said at a media briefing recently. By selling its own brand from locally made products, Carrefour can help maintain price control without compromising on product quality. Carrefour products are available in Carrefour Logo packaging. The Carrefour brand products include an entire selection of household items like fragrant rice, distilled water, instant coffee and detergent air freshener, while the Big Savers offer over 500 products. | SOURCE: WWW.HALALJOURNAL.COM. 30/11/05
Event highlights FOOD EXPORT CONFERENCE IN SINGAPORE
The Singapore Food Manufacturers Association recently hosted The Food Export Conference as part of The Asia Pacific Food Expo in November 2005. A half-day was dedicated to the Halal food market, and judging by the level of interest, this will become a regular topic. Speakers came from as far away as China, Turkey and India, as well as from local manufacturers and consultants. With Halal food imports and exports both on the rise (by 10% and 5% respectively), Singapore food manufacturers are likely to be paying increased attention to this strategically important food sector.
“Muslim mothers’ have wanted Halal baby food for a long time. And by it being organic it makes you feel good to be able to give your baby something so healthy.”
Fatima Amatullah of Michigan, mother of two
:: UNITED STATES
HALAL ORGANIC BABY FOOD HITS THE MARKET
Nature’s Noor has come up with an allnatural and organic Halal foods to meet market demand. “It’s exciting, people in many parts of the world are interested in Halal baby food from Michigan, the U.K., as well as South Africa,” said owner Sakeena Rashid. The Dublin resident coincidently works for the largest natural and organic grocery store in the U.S. and the first in Ohio, Whole Foods Market. ”I didn’t plan for everything to accumulate so fast, my business started taking off and left me very little time for anything else,” she said. Tariq Mahmood a U.K. importer and distributor says, “I have been searching for any Halal baby food manufacturers around the world, but with very little success.” That’s until he found Nature’s Noor. Mahmood now has an agreement with Nature’s Noor to distribute Nature’s Noor Halal baby food throughout the United Kingdom. Fatima Amatullah of Michigan, mother of two says, “Muslim mothers’ have wanted Halal baby food for a long time. And by it being organic it makes you feel good to be able to give your baby something so healthy.” | SOURCE: WWW.HALALJOURNAL.COM, 17/11/05
10 THE HALAL JOURNAL
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GlobalNEWS :: UNITED STATES
US BEEF PRODUCERS URGE CONGRESS TO SUPPORT BAHRAIN FREE TRADE AGREEMENT
R-CALF USA recently urged support of the U.S.—Bahrain Free Trade Agreement (FTA) because these particular negotiations are a step in the right direction for U.S. trade policy for the domestic cattle and beef industries. “R-CALF believes U.S. cattle producers can compete and thrive in the global marketplace if the rules that regulate those markets are fair,” said R-CALF USA President-Elect Chuck Kiker.Kiker said under the Bahrain FTA, Bahrain’s tariffs on imports of frozen beef from the U.S. – the largest category of U.S. beef exports to the region – will immediately go to zero. “Bahrain produces only a minimal amount of cattle and beef, and thus this FTA’s 10-year phaseout of out-of-quota tariffs on Bahraini beef exports to the U.S. is unlikely to have any significant impact on U.S. producers,” Kiker noted. “Liberalisation of cattle and beef trade under this FTA will allow U.S. producers to access more of the Bahraini beef market and build a presence in the Middle East.” Currently, Bahrain consumes more than $8.5 million in beef each year and imports more than 90 percent of its consumption, according to a 2003 U.S. Department of State report titled “Country Commercial Guide: Bahrain.” The U.S. is on track to export nearly $2 million in beef to Bahrain this year, according to statistics from the U.S. Department of Agriculture’s (USDA’s) Economic Research Service (ERS). According to USDA’s Food Safety and Inspection Service (FSIS), Bahrain currently requires that all meat imported from the U.S. be slaughtered under ritual Islamic halal conditions and that all packaged meat imported from the U.S. must bear a country-of-origin label. | SOURCE: BY CATTLENETWORK.COM, 8/12/05
The UK is home to about 2.5 million Muslims, with most centred in the large metropolitan areas of London, Manchester, Birmingham and Bradford. :: UNITED KINGDOM
MALAYSIA’S MEAT MANUFACTURERS URGED TO COORDINATE
Malaysian meat manufacturers, particularly those eyeing the £500 million (£1 = RM6.50) Halal market in the UK, must ensure that they comply with the strict food safety requirements in the UK and the European Union (EU). Ali Sher, who is director of education under the UK Overseas Malaysian Executive Club (Omec), said Malaysia is not on the approved list of countries authorised to import meat products into the EU. Due to strict regulations, Halal or non-Halal products containing meat from Malaysia are not allowed to be sold in the UK even if the meat content is less than 5 per cent. “Like the Thais, Malaysian food manufacturers must co-ordinate and acquire membership of the UK Halal Food Authority for their products to be approved and endorsed for acceptance into the UK Halal market,” Ali said. Malaysian Halal products, he said, are mostly distributed by oriental supermarkets while the local supermarkets have a small section dedicated to Halal products. He suggested Malaysian food manufacturers to negotiate and co-ordinate reciprocal agreements between the Department of Islamic Development Malaysia (Jakim), Selangor Religious Department (JAIS), HFA and the UK Food Standard Agency for issues such as labelling, gelatine, health and hygiene concerning Muslims and Islamic dietary laws. The UK is home to about 2.5 million Muslims, with most centred in the large metropolitan areas of London, Manchester, Birmingham and Bradford. The increased demand for Halal products within the Muslim community and public has created important consumer opportunities for major food retailers, supermarkets, restaurants, hotels, catering, gourmet, schools, universities and hospitals. | SOURCE: BUSINESS TIMES, 24/11/2005
:: DUBAI
WILL DUBAI BECOME THE NEW “CITY OF GOLD”?
The newly launched Dubai Gold and Commodities Exchange (DGCX) became the world’s newest commodities exchange and the first such marketplace in the Middle East after officially commencing trading at 10 a.m. on 22 November, 2005. Founder and chairman of GoldMoney. com James Turk said the DGCX gives Middle Eastern investors the opportunity to trade in a local market, which adds more participation and more liquidity to the global gold market - both of which are always very good things to achieve. This new exchange would also give North Americans the opportunity to trade in an established market with pre-defined trading contracts (size, time for delivery, etc.) in another time zone, which is also an important development, he said. The Exchange will offer an uninterrupted trading window of 13 hours and fill the time gap between Far East and Europe. “I see it as a very positive development for gold,” Turk said. “With all of the money now flowing to the Middle East because of the rise in energy prices, the new Dubai exchange is well placed.” DGCX began trading with a 1 kilogram gold futures contract. However, silver futures and gold and silver options will be available during first quarter of 2006, followed by a diversified range of commodities such as steel, freight rates and cotton. Fuel oil futures contract will kick off in the second half of next year. | SOURCE: RESOURCE INVESTOR, 24/11/2005
12 THE HALAL JOURNAL
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:: MALAYSIA
MUHYIDDIN: NAFC TO BE CENTRE OF EXCELLENCE
Agriculture and Agro-based Industry Minister Tan Sri Muhyiddin Yassin has proposed that the National Agriculture and Food Corporation (NAFC) to be a centre of excellence for, among others, logistics, branding, commercialisation, marketing, distribution, formation of high-tech farms and food processing and packaging. NAFC is to be formed by Khazanah Nasional with an estimated RM500 million paid-up capital. “Khazanah is still discussing NAFC’s roles and functions. It is really important for NAFC not to be seen as taking over the roles of existing government agencies or those being handled by the private sector. “We want to avoid duplication of functions. Khazanah must recognise MOA as the lead agency and that it has to work closely with other agencies like Fama and Mardi,” he said.Muhyiddin welcomed the formation of NAFC as the agriculture sector urgently needed increased resources to boost production. “To do this, we need people who have the money. Khazanah wants to come in as the Government feels it is necessary to boost the agriculture sector further. “It is imperative to set the investment strategy of Khazanah correctly from the start to make sure that it is doing things that will add value to what we are doing at the moment.” | SOURCE: BERNAMA, 19/12/05
:: UNITED KINGDOM
UK HALAL FOOD FIRM READY TO ENTER REGIONAL MARKETS
A Halal food firm in the UK has introduced its second chocolate bar and is starting to think about entering the Middle East. Khalid Sharif, a founder of Ummah Foods, says the company has received approaches from the region and that it is now a case of ensuring product supply and identifying the right business partner to work with. “Our only hold back from the Middle East has been our own size and resources,” said Sharif. “We’ve had requests from Yemen, Kuwait and the UAE, and it’s now about us being able to find a good distribution partner over there. I definitely feel there’ll be a lot of demand for our product because some distributors have already spotted it and made enquiries.” The company has also been approached by potential investors, mostly in the UK, and Sharif says finding a partner with knowledge as well as money is key. Whoever does invest in Ummah Foods will find a company with plenty of ambition. Whilst it is early days for his firm, Sharif told RNME that he does have dreams to build a broad Halal foodstuffs company, with distribution around the world. “Once we’re happy with our chocolate line, we’re going to move onto other packaged food products. We’ve looked at drinks, biscuits, every fast moving packaged product that you can think of. We’ve seen that some will work, some won’t and the complexity in some is too much. But we do have plans for a lot of them.” | SOURCE: ITPBUSINESS.NET, 9/11/2005
:: BRUNEI
‘BRUNEI HALAL’ AIMS TO GO GLOBAL
Brunei Darussalam will soon have its own Halal brand name under the label of “Brunei Halal” to be used to market Halal products worldwide. The Ministry of Industry and Primary Resources (MIPR), the ministry who is in the forefront in diversifying Brunei’s economy, has taken steps to redevelop the premium brand name of “Brunei Halal” including the redesigning of the logo to give it a good commercial image overseas after gaining Halal certification in Brunei. The new Brunei Halal Logo will not only mean the products are Halal, but are also of high standard accepted by the international market. Brunei, famous for its Halal accreditation, is taking the opportunity to forge partnerships with selected countries to work together to build its quality Halal products. The “Brunei Halal” brand project is split into two phases. In the first phase, Brunei will certify Halal products from developed countries that utilise the Brunei Halal brand that will be marketed worldwide. Brunei will gain through loyalty, which is the dividend from the profits of marketing the products or through profits in the company invested. The second phase which represent a long term planning whereby the established brand name of Brunei Halal will be applied to local products and local products need to gain the standard in order to sustain the image of Brunei Halal. At the moment, the programme has received positive response in Australia where Brunei Halal logo is being used by Australia to market Australian products to Muslim countries around the world. | SOURCE: BRUDIRECT.COM, 22/11/2005
Event highlights HALAL IN THE UK MARKET
The advent of Halal sections in EU and UK trade shows is proof of the continuing development of the Halal food sector. November 23 and 24 saw the hosting of the first Halal specialist trade event at ExCel in London’s Docklands. As part of the French-based World Food Market covering Ethnic, Kosher and Halal, this new trade show has tapped the growing market for specialist foods in the UK. The show hosted around 100 exhibitors, with a good showing in the Halal sector from local producers, plus some overseas companies (Netherland, Maldives, USA) also in attendance. As Debbie Graham, head of sales at National Halal UK put it, “We are extremely pleased with the show. We have seen school, prison and university suppliers and even big supermarkets like Asda and Tesco.” With around 2,500 trade visitors, this event was a respectable start for the UK Halal industry, and there was a general feeling that next year will see a bigger and better show.
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GlobalNEWS
“Given that food such as keropok and nasi dagang are Halal, traders refused to obtain the Halal certificate and took the matter lightly.”
Yayasan Pembangunan Usahawan (YPU) on Terengganu food producers
:: MALAYSIA
MALAY FOOD PRODUCERS IN NEED OF PARADIGM SHIFT
Yayasan Pembangunan Usahawan (YPU) will step up its efforts in making traders in Terengganu aware of the importance of obtaining a Halal certificate from the Malaysian Islamic Development Department (JAKIM). YPU chairman Datuk Abdul Rahin Mohd Said said currently, only one per cent of the over 2,000 food sellers in the country has obtained the Halal certificate, which is a very low figure stemming from a lack of awareness from among the traders on the matter. Given that food such as keropok and nasi dagang are Halal, traders refused to obtain the Halal certificate and took the matter lightly. “They must remember that the Halal certification is actually good for their business,” he told reporters after officiating the seminar on Halal Food Standard Realisation MS1500:2004 at the Terengganu Trade Centre recently. He said in the context of Terengganu or the East Coast states, the Halal status would not be a problem as the food sold could be guaranteed as Halal. “However, in major towns and food exported to overseas, the Halal standard plays an important role in convincing the Muslim consumers on the food or products sold in the market. Hence, we cannot view this matter lightly and that is why we are stepping up our efforts in promoting Halal food centres and a Halal standard on the products in distribution,” he added. | SOURCE: BERNAMA, 27/11/2005
:: TURKEY
IS ISLAM RETURNING TO TURKEY?
A large sign at the gates of Ankara’s new city-run lakeside park and restaurant complex reads: CONSUMING ALCOHOL IS FORBIDDEN. And when the city’s oldest park reopens after refurbishment next year, it will be without its famed open-air bars. Across the country, restaurants managed by municipalities are implementing a dry policy, irking secular Turks who say the government is stamping a Muslim way of life on Turkey, even as the country enacts Western-leaning reforms in hopes of joining the European Union. Separately, Prime Minister Recep Tayyip Erdogan’s Islamic-rooted Justice and Development party has enacted a law giving mayors the power to issue liquor licenses and designate areas where alcohol can be consumed. It’s not just the alcohol-free zones that are troubling secular Turks. Recently, the state-run standards institute announced it would introduce “Halal” certificates for food that meets Muslim religious dietary requirements. A new women-only swimming pool and gym run by the Ankara municipality and plans to build a mosque inside an Istanbul park that is already surrounded by mosques have also caused many Turks to suspect Islamic mores are creeping into official policy. | SOURCE: NEWSFROMRUSSIA.COM, 15/12/05
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Calendar of events 19-22 FEBRUARY 2006 GULFOOD Food, hotel & catering Dubai World Trade Centre Dubai, UAE Tel: +9714 308 6081 Fax: +9714 331 8034 Email: elly.habt@dwtc.com www.gulfood.com 15-17 FEBRUARY 2006 FOOD INGREDIENTS ASIA-CHINA 2006 Shanghai New Int’l Expo Centre Pudong Shanghai, China Tel: +65 6735 3366 Fax: +65 6738 9644 Email: Doreen_Lee@cmpasia.com www.fi-events.com 15-24 MARCH 2006 39TH CAIRO INTERNATIONAL EXHIBITION Exhibitions Ground, Nasr City, Cairo, Egypt Tel: +202 260 7833 Fax: +202 260 7845 Email: info@cairofair.com www.cairofair.com 19-22 MARCH 2006 INTERNATIONAL ISLAMIC FINANCE FORUM Al Bustan Rotana Hotel Dubai, UAE Tel: +9714 335 2437 Fax: +9714 335 2438 Email: register@iirme.com www.iiff.com 19-23 MARCH 2006 SAUDI ARABIA’S INT’L TRADE FAIR Saudi Arabia’s Trade Expo for Light industries, Consumer goods,Clothing, Leather Goods, Fashion Accessories, Giftware and Textiles Jeddah International Exhibition & Convention Centre Jeddah, Saudi Arabia Tel: +966 2 654 6384 Fax: +966 2 654 6853 www.acexpos.com 25-28 APRIL 2006 FOOD & HOTEL ASIA 2006 Int’l exhibition of food, drinks, hotel, restaurant & foodservice products Singapore Expo Singapore Tel: +65 6738 6776 Fax: +65 6732 6776 Email: ace@acexpos.com www.foodnhotelasia.com 27-29 APRIL 2006 - INDONESIA HALAL INDONESIA 2006 Exhibit in the world’s largest Halal market Bidakara Convention Centre Jakarta, Indonesia Expam Tel: +603 7880 0413 Fax: +603 7880 2817 Email: halal@expam.com www.expam.com 8-10 MAY 2006 WORLD HALAL FORUM The Premier Global Halal Industry Event Crowne Plaza Hotel Kuala Lumpur, Malaysia Exporter’s Club Tel: +603 7880 0413 Fax: +603 7880 2817 www.worldhalalforum.org
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between the lines
Lessons Learned from the Giants
The recent gathering at the Malaysian Distributive Trades Forum in Kuala Lumpur brought together a good selection of speakers and delegates. The sessions covering the food sector highlighted some of the challenges for both the supermarket chains and the SME’s in the food retailing sector. There was also a session on Halal that – hopefully – may have opened a few eyes. THE ADVENT of the multinational food retails chain in Malaysia – or anywhere else for that matter – is generally viewed as something of a double-edged sword. A quick look at the history of the neighbourhood convenience store in an average European or UK city makes it very clear that these giant food retailers are tough competition. In fact, they raise the stakes all round. One issue that came up, as something of a recurrent theme, was the need for the smaller players, both food retailers and manufacturers, to raise their game. The big hypermarkets do their homework well- they do research and analysis, and put it into action. This is clearly one part of their competitive edge. What local and small manufacturers should do is to learn from someone else’s research! The hypermarkets, traditionally, are aiming for 40% of their product range to be under their own label, and this offers plenty of opportunity for contract manufacturers to get into the game. However in Malaysia, Tesco have only been able to cover 25% as own label products. Their problem is finding contract manufacturers who can meet their standards of safety, quality and consistency of supply. The same also goes for products from small local producers. Senior executives from both Tesco and Carrefour said that they are looking for more products from local suppliers, but are having trouble finding them. James McCann of Tesco cited the case at their Shah Alam store- they have five aisles set aside for local producers, but four are filled with bottled water, because they cannot find the products that can meet the standard. Local producers, whether for own label or contract manufacturing, have to be able to meet the standard set by the major retail chains if they are to compete in a global market. In this respect, the local branches of these multinational corporations can be considered as a training ground; they are like windows to the global market. If you can’t meet the standard at home, you will not be able to meet the standards needed for the export market. What is more, if you can meet the standard at home, you may well find that your product will find its way into the overseas branches of these same retailers. All MNCs are generally risk-averse, and like strong stable relationships. They make tough rules, and you have to play by them or not play at all, in many cases. But they do know what sells, they know what makes a product successful, and how to discover and fulfil customers’
Words By HAJJ ABDALHAMID EVANS
needs. And they need the smaller producers and manufacturers in order to be successful. The message from them right now is clear; if you can meet their standards, they are looking for you. And if you want to compete in regional or global markets, you have to meet those standards in any case.
Local producers, whether for own label or contract manufacturing, have to be able to meet the standard set by the major retail chains if they are to compete in a global market. This same message, according to KasehDia managing director Jumaatun Azmi, applies not just in the food retail and manufacturing sector, but to Malaysia’s Halal Hub ambitions as a whole. If we want to compete at a global level, then we have to raise our game, and meet – or in some cases, create – international standards for the Halal value chain. Citing statistics on Singapore and Thailand’s Halal import and export markets, Jumaatun made a convincing argument for Malaysia to engage in a little less talk and a lot more action as far as Halal is concerned. Recognising the difference between the two is sometimes an all-toorare skill. There is clearly no shortage of local potential; but realising it may yet prove to be a something of a challenge. hj
Senior executives from both Tesco and Carrefour said that they are looking for more products from local suppliers, but are having trouble finding them. THE HALAL JOURNAL 15
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MATRADE news
External Views
The Malaysia External Trade Development Corporation (MATRADE) is one of the most aggressive agencies in the development of the Halal market in the world. The Halal Journal recently caught up with its Chief Executive Officer, Datuk Merlyn Kasimir to find out his views on Halal products.
HOW IS MATRADE INVOLVED IN THE HALAL INDUSTRY? MATRADE as Malaysia’s trade and commerce agency is responsible in promoting Malaysian-made Halal products and services through our own activities and also through our network of 31 offices worldwide. With the overseas network, we feel that we are in a good position to promote the Halal industry in terms of trying to provide market information for our products and services. CHINA IS SEEN AS HAVING UNTAPPED POTENTIAL IN TERMS OF HALAL. WHAT ARE SOME OF THE ACTIVITIES THAT MATRADE HAVE RECENTLY UNDERTAKEN IN CHINA? We have done a few things this year actually. We have a specialised Halal marketing team in China; in June this year, our delegation visited Beijing, Xinjiang and Ninjia - cities that have a large concentration of Muslim population. The objective was to promote our Halal products in China and explore the vast potentials that exist within these high populated provinces. We also had representatives from JAKIM, Department of Veterinary Services and also from the public sector like representatives from two Halal Hubs in Selangor and Johor, to look at opportunities or other kinds of collaborations in China. ASIDE FROM FOOD ITEMS, WHAT OTHER HALAL PRODUCTS ARE YOU INTERESTED TO PROMOTE? We are also looking at other Halal related products like healthcare and pharmaceuticals, herbal and cosmetic products, and also other consumer products like leather based goods. Aside from Halal foods, we also feel Malaysia has a huge potential in these non-food items for the global Halal industry.
i
WHAT ARE THE STRENGTHS OF MALAYSIAN EXPORT IN YOUR OPINION? Malaysia is quite well known to be able to produce superior and consistent quality products and deliver them on time. These are our key strengths; we are no longer considered as a low cost producer. As it is, we do not have that many complaints about Malaysian companies and this helps us to enhance our export. In addition, the fact that we have our own Halal standard helps to assure the consumers that Malaysian Halal products meet strict Shariah standards and also health standards, like the HACCP. We feel we can ride on this reputation. WHO DO YOU THINK ARE OUR BIGGEST COMPETITORS AND HOW DO YOU THINK MALAYSIAN COMPANIES CAN BETTER COMPETE? Competition for Malaysia will be mainly from low cost producers with very competitive prices. For us to compete, we need to adapt quickly to meet the taste of local consumers. We also need to improve on our packaging, especially for food products. For example, when we supply Halal food products in France, we cannot produce whatever we have here and hope to sell it there. It’s different! It’s a question of how well our producers can adapt and localise in any given market. ANY PERSONAL COMMENTS? I think what’s important is to brand Malaysia as a progressive and moderate Muslim country that supplies quality and reliable Halal products and services. This has to be done as a concerted effort by all parties involved. The promotion of Malaysia’s global Halal standard would also help in this branding exercise. In terms of products, we need more healthcare hj and pharmaceutical.
For more information contact MATRADE HEADQUATERS 7th Floor, Wisma Sime Darby, Jalan Raja Laut, 50350 Kuala Lumpur, MALAYSIA t +603 2616-3333 f +603 2694-7363 toll free 1 800 88 7280 e-mail info@matrade.gov.my
DATUK MERLYN KASIMIR
Malaysia at a Glance EAST MALAYSIA
W E S T M A L A Y S IA
NAME: Malaysia AREA: Total: 329,750 sq km Land: 328,550 sq km, Water: 1,200 sq km CAPITAL: Kuala Lumpur POPULATION: 23,953,136 ETHNIC GROUPS Malay 50.4%, Chinese 23.7%, Indigenous 11%, Indian 7.1%, others 7.8% RELIGIONS Muslim, Buddhist, Daoist, Hindu, Christian, Sikh LANGUAGES Bahasa Melayu (official), English, Chinese (Cantonese, Mandarin, Hokkien, Hakka, Hainan, Foochow), Tamil, Telugu, Malayalam, Panjabi, Thai GDP $229.3 billion GDP PER CAPITA purchasing power parity - $9,700 AGRICULTURAL PRODUCTS Rubber, palm oil, cocoa, rice, subsistence crops, timber, coconuts and pepper INDUSTRIES Rubber and oil palm processing and manufacturing, light manufacturing industry, electronics, tin mining and smelting, logging and processing timber, agriculture processing, petroleum production and refining
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feature highlights
World Halal Forum in May to Focus on Business The World Halal Forum, scheduled to take place in May, will be the first gathering of world business leaders involved in the Halal sector. The event is a marked shift from other Halal-related events happening around the world that tend to focus more on the academic or religious aspect of Halal. “It is time to establish a forum that not only discusses Halal in religious terms, but also from the business and economic applications and appreciation,” said World Halal Forum chairman Khairy Jamaluddin during the event’s media briefing in Kuala Lumpur recently. He said the forum will be an important platform for business people from various disciplines and industries to meet and consider new ideas and Halal implementation processes for the market of 1.8 billion Muslims worth at least USD150 billion a year. The sectors that will be addressed at the forum are meat and poultry, food services, distributive trade, food manufacturing, standard and policy, and future developments. The inaugural World Halal Forum will be taking place in Kuala Lumpur from May 8-10, 2006. The Malaysian Prime Minister Dato’ Seri Abdullah Ahmad Badawi will deliver the keynote address. The forum will also be a part of the Halal Malaysia Week together with the third Malaysian International Halal Showcase (MIHAS) 2006, the world’s largest Halal trade fair. The WHF is supported by the Malaysian Government and sponsored by CIMB Islamic, Westport, Prima Agri-Products, Nestlé Malaysia, MISC, Malaysia Airlines and Islamic Development Bank. Head of CIMB Islamic Mr. Badlisyah Abdul Ghani said, “CIMB Islamic is proud to be associated with the World Halal Forum as its Platinum Sponsor. The WHF in Kuala Lumpur is a must-see event as it is the only such event that brings all the Halal players from around the world under one roof”. WHF Chairman Khairy Jamaluddin
Khairy: FOCUS ON THE BUSINESS AND ECONOMIC APPLICATIONS OF HALAL
also pointed out that this is an excellent opportunity for Malaysians take advantage of this event to optimise their strategies to play a strong role in this global market. “The development of the global Halal market is a golden opportunity to demonstrate and promote the many positive benefits that Islam can bring in terms of health, food safety, animal welfare, fair trading, good business practices and strong economic activity.” Speakers at the WHF will include market leaders from the entire Halal value chain, from meat and livestock suppliers, to manufacturing, processing & packaging, ingredients, logistics, shipping, certification, retailing, finance and marketing. Registration for the WHF is USD350 nett. It includes two full day’s attendance at The World Halal Forum, all materials and presentations, daytime meals plus attendance to the WHF Gala Dinner & The Halal Journal Awards Night attended by the Prime Minister of Malaysia. For more information please visit www.worldhalalforum.org or call +603-6203 1025. To register, please call The Exporters Club at +603 7880 0413. hj THE HALAL JOURNAL 17
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feature highlights
World Halal Forum in May to Focus on Business The World Halal Forum, scheduled to take place in May, will be the first gathering of world business leaders involved in the Halal sector. The event is a marked shift from other Halalrelated events happening around the world that tend to focus more on the academic or religious aspect of Halal. “It is time to establish a forum that not only discusses Halal in religious terms, but also from the business and economic applications and appreciation,” said World Halal Forum chairman Khairy Jamaluddin during the event’s media briefing in Kuala Lumpur recently. He said the forum will be an important platform for business people from various disciplines and industries to meet and consider new ideas and Halal implementation processes for the market of 1.8 billion Muslims worth at least USD150 billion a year. The sectors that will be addressed at the forum are meat and poultry, food services, distributive trade, food manufacturing, standard and policy, and future developments. The inaugural World Halal Forum will be taking place in Kuala Lumpur from May 8-10, 2006. The Malaysian Prime Minister Dato’ Seri Abdullah Ahmad Badawi will deliver the keynote address. The forum will also be a part of the Halal Malaysia Week together with the third Malaysian International Halal Showcase (MIHAS) 2006, the world’s largest
Khairy:
FOCUS ON THE BUSINESS AND ECONOMIC APPLICATIONS OF HALAL
Halal trade fair. The WHF is supported by the Malaysian Government and sponsored by CIMB Islamic, Westport, Prima AgriProducts, Nestlé Malaysia, MISC, Malaysia Airlines and Islamic Development Bank. Head of CIMB Islamic Mr. Badlisyah Abdul Ghani said, “CIMB Islamic is proud to be associated with the World Halal Forum as its Platinum Sponsor. The WHF in Kuala Lumpur is a must-see event as it is the only such event that brings all the Halal players from around the world under one roof”. WHF Chairman Khairy Jamaluddin also pointed out that this is an excellent opportunity for Malaysians take advantage of this event to optimise their strategies to play a strong
role in this global market. “The development of the global Halal market is a golden opportunity to demonstrate and promote the many positive benefits that Islam can bring in terms of health, food
certification, retailing, finance and marketing. Registration for the WHF is USD350 nett. It includes two full day’s attendance at The World Halal Forum, all materials and presentations, daytime
The WHF in Kuala Lumpur is a mustsee event as it is the only such event that brings all the Halal players from around the world under one roof safety, animal welfare, fair trading, good business practices and strong economic activity.” Speakers at the WHF will include market leaders from the entire Halal value chain, from meat and livestock suppliers, to manufacturing, processing & packaging, ingredients, logistics, shipping,
meals plus attendance to the WHF Gala Dinner & The Halal Journal Awards Night attended by the Prime Minister of Malaysia. For more information please visit www. worldhalalforum.org or call +603-6203 1025. To register, please call The Exporters Club hj at +603 7880 0413.
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advertorial
Selling Quality Halal
THE MIDAMAR WAY
MIDAMAR CORPORATION WAS ESTABLISHED IN 1974 by Bill Aossey, a Syrian descendent whose family migrated to the US in 1888. His 1963-65 experience with the Peace Corp in Senegal made him realise his home State Iowa had a lot to offer in terms of agricultural and food technology which many parts of the world could benefit. Midamar, according to Bill, stood for Mid America Agricultural Research. “In Senegal, about 40% of the children died before the age of 5 because of malnutrition,” Bill started thinking, with Iowa’s agricultural and food productivity, maybe he could start exporting Iowa’s food technology and protein enhancement worldwide.” A year later, he went on to establish the Islamic Services Authority (ISA), primarily as an educational foundation which then expanded into providing Halal certification and supervision for consumers and manufacturing facilities, which few knew of or even thought about in 1975. It is this relationship, according to some, that created a “conflict of interest” of sorts since Midamar and ISA are linked through Bill Aossey. They initially complimented each other as there were no other certifying organisations in US when we first organised it. He has this to say: “I’m a Board of Trustee of the Islamic Centre in Iowa; I’m on the Board of Trustees and a Director at Cornell College and East West University. I would say there’s no conflict. All have separate roles, separate mandates and separate functions.” In 1978, Malaysia began certification of Halal meat. Through the US Embassy, the United States Department of Agriculture (USDA) looked to find USA qualified producers. This search eventually led to Bill coming on a trade mission with the Governor of Iowa which resulted in Midamar Halal meat being directly supplied to Malaysia through Pok Brothers Sdn Bhd. By January 1981, hotels in Malaysia were serving Halal beef from the USA. Malaysia’s strong drive for tourism also benefited Midamar. “The Malaysian Government spends millions of Ringgit per year on the tourism, but you cannot have the tourists coming to Malaysia and dine on only ‘nasi goreng’ or other Malaysian dishes. Tourists would like to have sausages and eggs after some time. We were the first to introduce American breakfast beef and sausages onto the buffets, supplying to 5-star hotels and restaurants.” It has not been a smooth ride with events like the Gulf War in 1991 and 9/11 for exports.
Bill Aossey
Midamar Corporation is a respected United States’ supplier of quality Halal foods and Foodservice Equipment and Supplies to International Restaurant Concepts, Hotels, and Distributors throughout the Middle East, South East Asia, the Far East, as well as North America. www.midamar.com But Midamar carried on. It was the mad cow disease in 2002 that called an abrupt halt to USA beef being exported to Malaysia. Commenting on the USA market, Bill explains that although 9/11 events had caused sales to drop by as much as 40%, signs are pointing to a steady recovery in 2005. “September 11 was such a shock to everybody. The first 2, 3 weeks was hysteria and emotions. And then it was anger and retaliation. Non Muslim consumers who used to go to the ethnic markets stopped buying, even Muslim housewives were afraid to go out and buy Halal food. A lot of the small ethnic stores had no choice but to close,” Bill recalled. “Three Halal major concepts in the Detroit area served Halal. By November 2001, they dropped the Halal items. There was such a negative reaction by consumers saying,
“What are you doing serving Islamic food when they’re blowing up our country?” Although demand has returned since, the US Halal market never fully recovered to its pre-9/11 levels, with Bill estimating it is still down by 10%. And being in the industry for over 30 years, he is also noticing a certain change in preference amongst the younger Muslim generation of Halal buyers in the USA. “They don’t want to go to the traditional stores that aren’t clean and are smelly, with everything stacked up helter-skelter. Educated and young consumers go buy Halal meat where they know it’s clean. What they are doing is they are forcing the progressive ethnic and Muslim operators to either improve their stores or go out of business,” he added. This demand for quality Halal products fits perfectly with Midamar’s beliefs – “Quality Halal First”. THE HALAL JOURNAL 19
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Halal Market Trends in EU With everyone from the supermarket giants and fast-food chains through to small and medium-sized players wanting to get their share of the Halal market pie, The Halal Journal takes a look at the underlying trends in the European Union Halal food market.
THE BIGGER PICTURE The European Halal market is made up of at least 20 million Muslims commanding a collective annual spending power of an estimated 15 billion euros. The Halal sector is a sub-sector of the overall food and beverage market, so the underlying food retailing trends will have an impact on how the Halal food sector develops. In both the EU and the United Kingdom, food retailing has changed significantly in the past 25 years. In France, the neighbourhood convenience stores have seen their market share drop from over 30% in 1980 to under 5% in 2004, while the giant hypermarkets have moved from 30% to over 50% in the same period. And while the regular supermarkets share has remained at around 31% during this time, the new ‘hard discount’ stores have seen an 80% growth in the last decade to take a 10% share in 2004, posing a serious threat to small businesses. Clearly, any moves made by the major retail giants LeClerc, Carrefour and Auchan, who between them control 75% of the market, will have far-reaching repercussions. Threatened by the rapid growth rates of the discount retailers like Lidl, Leader Price and Aldi, the market leaders are looking for ways to keep their noses in front. With their growth rates slipping from 2.8% in 2000 to just 0.8% in 2004, they are by necessity on the lookout for new markets. Against this background trend of market share moving from the convenience store to the supermarket, and then on to the discount store, we can turn to look at the trends in the Halal sub-sector. THE HALAL OPPORTUNITY Currently, the small Muslim-owned Halal food stores still command around 80% of the Halal market. In addition to Halal meat, these neighbourhood shops also sell a variety of related products that fall loosely into the ‘ethnic food’ category, such as dates, olives, speciality breads, spices and condiments as well as other standard convenience foods. The retail giants, having had success in recent years with the ethnic food sector, has recognised that Halal overlaps and encompasses the ethnic sector in many respects, and represents a new homogenous market
The supermarket giants (like most of the rest of the world) have up until very recently only thought in terms of meat when they think about Halal; chilled and frozen beef, chicken, lamb or mutton. What they are fast realising is that the Halal sector includes an ever-widening spectrum of other foods…
In France, the neighbourhood convenience stores have seen their market share drop from over 30% in 1980 to under 5% in 2004, while the giant hypermarkets have moved from 30% to over 50% in the same period. sector with increasing spending power. The Muslim consumer who shops at the local Halal shop is still included in the 97% of the overall population who shop in the super and hypermarkets, and therefore represents a significant opportunity for the giants to a) take custom from the Halal shops and b) offset losses to the discount stores. The supermarket giants (like most of the rest of the world) have up until very recently only thought in terms of meat when they think about Halal; chilled and frozen beef, chicken, lamb or mutton. What they are fast realising is that the Halal sector includes an ever-widening spectrum of other foods – convenience foods, ready-cooked meals, sweet and savoury snacks, drinks – as well as non-food items such as toiletries, cosmetics, health products and even lifestyle
electronics. Not only does the Halal food sector include a dazzling array of ethnic and cultural cuisines from around the world, there is also a growing demand for indigenous European dishes to be available as Halal options for an increasingly Europeanised new generation of middleincome Muslim consumers with sophisticated tastes. Retail giants do not like to take chances. Judging by the recent decisions by Carrefour and Auchan in Europe, and Tesco in the United Kingdom to take advantage of the growing demand for Halal food, we can be fairly certain that these moves are likely to represent long-term trends. And as trends are indicative of market speed and direction, they can give producers and contract manufacturers a good shot at getting their products hj onto the shelves. THE HALAL JOURNAL 21
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Malaysia Ban on Australian Halal Abattoirs Continues A Malaysia delegation comprising of representatives from the Department of Islamic Development Malaysia (JAKIM) and Veterinary Services Department were in Australia to meet the Australian Quarantine & Inspection Services (AQIS) recently to deal with issues surrounding the Malaysian ban on most Australian abattoirs. The result: the ban continues. The Malaysian audit of the Halal practices in Australia and New Zealand in May 2005 resulted in the de-listing of all but two beef exporters from the two countries. Authorities have cited the use of thoracic sticking and stunning in the slaughtering process as the main causes of the delisting. “The issue of thoracic sticking is now resolved,” Minister at the Prime Minister’s Department, Datuk Dr. Abdullah Md. Zin whose department is in charged of JAKIM told The Halal Journal. “They used to do it (thoracic sticking) within 20 seconds after the cows were slaughtered which was in contravention with Malaysian Halal laws. But now the abattoirs will wait for two to three minutes before
they do it. This is to us is fine.” Thoracic sticking is the practice of sticking a steel tubing into the cattle’s heart. AQIS said it would induce more blood flow. “But in terms of stunning, we have recommended that the use of air stunning be phased out, and instead use electrical stunning,” Abdullah said. “Air stunning is a new technology introduced in America, and for us, the impact is too strong for the cattle, and it is much like killing. “So, we are currently waiting for a lab report from AQIS and in the meantime, we will present our
findings to our Fatwa Council.” On a different issue, Abdullah said the Organisation of Islamic Council (OIC)’s Islamic Fiqh Academy has reviewed the Malaysian Halal standard MS1500:2004 and provided comments for the Malaysian government. “The Malaysia Halal Standard was presented for comments to the Islamic Fiqh Academy, an OIC fatwa committee based in Jeddah comprising of ulama or Muslim scholars. “We have received their comments and works are being done in JAKIM and the Department of Standards for amendments and further refinement.” hj
“Jakim’s MS1500 halal standard requires a slaughtered cow to be left for two minutes before the thoracic sticking takes place,” MUSTAFA ABDUL RAHMAN, DIRECTOR-GENERAL, JAKIM
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and trends around the globe, The Halal Journal looked to the skies to find out what
is happening in the low heavens for Halal.
Kamarul Aznam finds that one company dominates.
Halal in the Sky
photo by Ulrik De Wachter
When all eyes are on the Halal markets
W
hen Malaysia Airlines’ subsidiary MAS Catering Sdn Bhd first started its Halal program back in 1978, little did they realise how
significant their work would be to the global airline industry. Its perfect Halal processes for airlines caught the attention of the world’s largest in-flight meal provider, Germany-based LSG Lufthansa Service Holdings AG. Thus in 2003, LSG together with Brahim International
“This (partnership) is to me, a strategic
Franchise bought over 70 per cent of MAS
move by LSG and Malaysia Airlines,” said
Catering in a strategic move to dominate the
Mohd Zaki Omar, deputy general manager
Halal airline food business.
of LSG Sky Chefs-Brahim’s Sdn Bhd.
Now known as LSG-Skychefs-Brahims Sdn
“LSG is the biggest airline catering
Bhd (LSGB), the company forms an expansive
company in the world and they want to
global catering network in more than 48
capture the Halal segment. One of the best
countries serving 173 airports. LSGB’s ‘Halal
ways was to acquire the knowledge and
Excellence Centre’ is responsible for Halal meals
technology that existed within Brahim’s and
on board 25 airlines, including Cathay Pacific,
MAS Catering.
FedEx, Emirates and Thai Airways. Nevertheless,
MAS Catering have been implementing
eighty percent of their revenue still comes from
Halal since 1978. By acquiring part of their
Malaysia Airlines.
shares, LSGB was instantly elevated to being
Aside from ensuring all their meals ex-KLIA
the Halal ‘reference centre’ for all of their
are Halal, LSGB’s ‘Halal Excellence Centre’ is also
existing 200 in-flight kitchens worldwide.
in charge of handling any requests from their
The Brahim’s brand name is known
overseas office to set up new Halal kitchens. The
internationally for its quality sources
team has since established 12 Halal kitchens
and has won various awards.
worldwide, with four granted a full Halal kitchen
“And it works both ways. We also make
status while the remaining have partial Halal
full use of the LSG’s hygiene institute in
sections.
Frankfurt,” Mohd Zaki added.
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Holistic Approach to Halal In general, LSGB has adopted three major guidelines to form an integrated Halal solution. The first is the Malaysian General Guidelines on Halal, which include the Department of Islamic Development Malalysia (JAKIM) Halal certification as well as the new MS1500:2004. The World Health Organisation’s (WHO) Codex Alimentarius Commission forms the second component while the Malaysia Airlines’ Halal Standard forms the final piece of the LSGB’s Halal mechanism (see graphics - opposite page). Invariably, each component would have its own set of operating procedures and it is this amalgamation of HACCP, GMP, GHP, HAP, HCP, ISO, Codex Alimentarius, JAKIM Halal certification, and the Malaysia Halal Standard MS1500:2004
Halal Warewash Washing Machine (samak)
LSGB created the Halal dish washing machine, or samak machine, to clean equipment and cutlery that are used by non-Halal airline caterers. Samak is a religious cleansing process that purifies anything that comes into contact with non-Halal materials. The established methodology is to first clean the item using one part clay (or clean dirt) and then rinse it with seven parts of water (or equivalent to 270 litres). Conceptualised by LSGB’s Halal Excellence Centre and developed by an in-house team from Germany, the Halal dish washing machine looks just like any other industrial washing machine, except for one key feature – it is fitted with a clay powder dispenser.
that will form a culture that governs their daily tasks. “We realise that we cannot impose Halal upon everyone,” said Abdul Aziz Mohamad, Chairman of Halal Excellence Centre, LSG Sky Chefs-Brahim’s Sdn Bhd. “What we have done is to follow all the existing standards recognised all over the world, fuse it together with Halal and have one truly complete system,” he added. Currently operating on a three shift pattern within their 60,000 sq metre facility, 658 production staff and 612 operation staff churn out an average of 31,000 meals a day and this figure increases up to 42,000 meals during peak seasons. Fully loaded, the centre is able to handle a maximum of 45,000 meals per day in which each of these meals has to go through a strict Halal Control Process (HCP) from farm to fork (read story on HCP).
The only one in the world at the moment, this Halal dish washing machine shoots off a jet stream of dry clean clay powder, or aluminium silicate to satisfy the first stage of the cleansing process. Then, the equipment and cutlery are washed, rinsed and finally blow dried as they normally would. It is now ready to be reused by Muslims.
Roles and Responsibilities In satisfying the passenger’s appetite for exquisite Halal food, LSGB spells out and distinguishes the roles and responsibilities of each supporting member within the team. It covers the roles of caterer and supplier, customer and consumer as well as LSG Sky Chef’s corporate role. “As a caterer, we are responsible and accountable for producing Halal and tayyibbah food,” Abdul Aziz said, “and this is done together with the supplier. We stress this from the very beginning, because we want the suppliers to be responsible in ensuring that all ingredients within their products are derived from 100% Halal origin.” Continuous re-education for their suppliers is held on regular intervals, to explain the best Halal standards and practices so that the suppliers themselves can detect possible problems, instead of LSGB doing the full fledge screening. The company also assumes the responsibility as a caterer to educate and inform their consumers (end-users) and their customers (clients) on Halal food’s best practices to enable them to make selective choices. “Most importantly, we have also established the program’s policies and strategies to ensure effective surveillance and enforcement of Halal food standards and guidelines, not just
LSGB’s Halal Control Points (HCP)
To ensure that there are no loopholes within their Halal procedure, LSGB has initiated four check points even before the cooking starts to eliminate any possible breaches. HCP 1 – Production Chef with Central Procurement will list down all items and ingredients needed for sampling. Each ingredient will be detailed out to avoid any hidden alcohol or Haram origin. HCP 2 – All raw materials are then sourced and purchased from Halal suppliers that have Halal certification. HCP 3 – All products and ingredients listed (especially animal products and its derivatives) are compulsory to comply with Halal Standard certified by JAKIM or local Islamic Authority. HCP 4 – During receiving of raw materials, quality control personnel will check the items are as per stated in the contract and strictly Halal. The transport used to deliver items must not be used for non Halal item and is cleaned and sanitised.
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LSG Halal Standard
INTEGRATED HALAL SOLUTION
Abdul Aziz Mohamad, Chairman Halal Excellence Centre, LSGB.
“What we have done is to
follow all the existing standards recognised all over the world, fuse it together with Halal and have one
truly complete system”
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The Halal Journal
AWARDS
THE INTERNATIONAL AWARD TO CELEBRATE AND HONOUR OUTSTANDING ACHIEVEMENT AND INNOVATION IN THE HALAL MARKET Invitation for Nominations
[
THE HALAL JOURNAL AWARD CATEGORIES
]
C AT E G O R Y 1
BEST NEW HALAL PRODUCT C AT E G O R Y 2
MOST CREATIVE MARKETING CAMPAIGN FOR A HALAL PRODUCT C AT E G O R Y 3
BEST ISLAMIC BANK C AT E G O R Y 4
BEST CORPORATE SOCIAL WELFARE PROJECT C AT E G O R Y 5
BEST HALAL EXPORTER C AT E G O R Y 6
BEST ENTREPRENEURIAL DEVELOPMENT PROJECT OR COMPANY C AT E G O R Y 7
BEST INNOVATION IN HALAL INDUSTRY C AT E G O R Y 8
OUTSTANDING PERSONAL ACHIEVEMENT IN THE HALAL INDUSTRY The Halal Journal Awards will be presented during the The World Halal Forum Gala Dinner on 8th May 2006 in Kuala Lumpur in the presence of the Prime Minister of Malaysia Dato’ Seri Abdullah Ahmad Badawi. Please visit www.worldhalalforum.org or www.halaljournal.com for nomination forms and further information.
Nominations can be submitted until 15th March 2006.
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for Malaysia but also for any LSG kitchen operations all over the world. This is essentially the gist of functions of our Halal Excellence Centre.”
1. WET RECEIVING AREA
Modernising the Halal Industry LSG Sky Chef’s approach to promote a Halal culture within the global in-flight catering industry was never destined to take off had it not been for their universal approach in selling Halal.
Behind the scenes of how your in-flight meal gets prepared 2. PERISHABLE STORAGE
Ever wondered how those neat casserole dishes filled with food gets prepared for you? It involves the systematic and concerted effort from 1,774 staff working in clockwork precision within three shifts a day. 1. PURCHASING. | Raw materials purchased are subjected to a Raw Material Process Flow, in accordance with their Halal Control Point (HCP) system.
3. PRODUCTION - SATAY PREPARATION
2. RECEIVING & STORAGE. | Wet and dry raw materials are delivered to warehouse via ordering system and sorted according to the HACCP standard. Perishables are then stored in a freezer room while non perishables are either stored in boxes or pallets within a 3-storey hi-bay area (max 3,000) or bins (max 14,000). 3. PRODUCTION. | Cooks will prepare and set all the meals. Kitchens are divided into four main areas: hot, cold, pastry and special meals (kosher, vegetarian, low fat, low sugar meals etc). All hot meals are then blast chilled in bulk to 5 degrees celsius, which takes approximately 4 hours and then stored in the Food Bank where it will wait to be apportioned for a maximum of 24 hours. 4. DISHING. | As the order comes up, two workers will apportion all prepared meals into the small casserole dishes. They are subjected to a “precision timing” of no more than 45 minutes per flight. 5. TRAY SETTING AND ASSEMBLY. | After dishing, the casserole dishes are packed into trays. Hot meals are loaded into oven racks while cold dishes and pastries are assembled onto trays and stored onto the meal carts. Complete meal carts are then cold soaked for 4 hours before the Standard Time Departure (STD). 6. LOAD AND SERVED. | Ready meal carts are then loaded into aircraft using hi lifts and stored in the aircraft’s galley. Flight attendants will then reheat the hot meals on board the aircraft and served to the passengers.
4. DISHING
7. FEEDBACK. | The clients will communicate directly with LSGB’s marketing and & sales department on any inputs.
“Being Halal nowadays may not be enough,” said Abdul Aziz. “To sell the Halal concept globally, especially in Europe, we needed a more modern the same, if not higher than any other systems out there,” explains Abdul Aziz. 6. LOAD AND SERVED
5. TRAY SETTING AND ASSEMBLY
approach to ensure that the standard is at least
“With a solid backing by the top management in Frankfurt, we not only managed to improve our own local operation, but also to spread the significance of Halal through our know-how and expertise in many other LSG operations around the world,” he said. Halal has truly taken off.
hj
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Oil Palm
MALAYSIA’S HALAL SLEEPING GIANT How can palm oil be a sleeping giant when Malaysia is its number one producer in the world? Take account recent developments and its potential in the Halal food industry and you’ll find the answer. Words By KAMARUL AZNAM KAMARUZAMAN
T
he consumer’s shift in dietary needs for a healthier alternative is one of the biggest causes for a higher global demand for palm oil. Greater acceptance of palm oil for its superior properties over other oils, better recognition of its efficiency as well as its health and nutritional values have led to increased propensity to using it for food and industrial uses. The Mad Cow Disease, or bovine spongiform encephalopathy (BSE) epidemic in 2001, had also prompted a worldwide shift for vegetable oils. Palm-based food applications are certified free from genetically-modified organisms (GMO) and trans fatty acid (TFA). Palm-based non-food applications also offer the potential for a renewable and biodegradable source
of fuel that is environmentally friendly, in line with the concept of Halal and tayyib. A nutritionally rich and versatile commodity, oil palm’s mesocarp and kernel can be processed to have a wide range of properties enabling its use in any formulations that require a fatty component. The use of various processing technologies allows the refiner to supply tailor-made palm-based building blocks to meet any manufacturer’s requirements. These building blocks are also known as oleochemicals, or chemicals derived from oils and fats. They are analogous to petrochemicals which are chemicals derived from petroleum and are used to make soaps, detergents, cosmetics, food emulsifiers and even baby food formulations.
PALM OIL AS A HALAL SUBSTITUTE The consumer’s preference for healthier living is boosting the demand for products using vegetable oils, as opposed to products using animalbased oils, or tallow. Tallow is a solid fat extracted from the tissues and fatty deposits of animals, especially from suet (or the fat of cattle and sheep). Pure tallow, which is white, odourless and tasteless, is usually obtained commercially by heating suet under pressure in closed vessels. It is widely used to make soaps, cooking oils and oleochemicals, making it suitable in the manufacture of pharmaceutical products. Industrially, tallow is not strictly defined as beef or mutton fat. Therefore, it is not uncommon for commercial tallow to contain fat derived from other animals, such as swine. Hence, palm-based oleochemicals pose as substitutes for tallow; a healthier and Halal substitute. “When you talk about chemicals, it is actually the chemical reaction between two or three components, which may or may
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not be from a vegetable base,” said Hafiz Jamaluddin, senior marketing manager of Natural Oleochemicals Sdn Bhd (NatOleo). “Like bread for example, it contains emulsifier, or personal care products such like toothpaste and mouth wash which uses glycerine. What is the base of this emulsifier or glycerine, we don’t know. Usually they just put it as a trade name, like PEG or some E numbers. What animal and whether it is slaughtered according to Islam, we still don’t know,” he said. MARKET IGNORANCE “With a greater awareness of Halal, Muslims are starting to shift their lifestyle trend, but it will take some time, because the manufacturers are still mostly non-Muslims. And the Muslims are not demanding such products,
tank is a Kosher tank. Say if it was previously filled with animalbased oil, if you don’t clean it according to their requirements, they will not certify it as Kosher and will refuse to buy it. “In terms of Halal, we have only reached the manufacturing stage. Transportation and distribution are still not at that level yet unfortunately,” said Haji Abdul Rahman. THE FUTURE LOOKS GOOD The trans fatty acid labelling requirement by the United States Food & Drug Administration (FDA) and China’s abolishment of Tariff Rate Quota for the imports of palm oil under World Trade Organisation beginning January 2006 are two of the most critical factors that would help support a positive outlook for the Malaysian palm oil industry.
country’s total export earnings in 2004, reaching well over 150 countries worldwide, with China, the European Union (EU), India and Pakistan as the biggest importers. “A ruling from an economic powerhouse such as the US would have a positive chain reaction on other markets such as India, China and Japan. As for the opening up of China, we have recently identified a European partner and will aggressively push our products in China. We expect to be seeing shipments of more than 100 containers a month from the current 4 to 5 containers,” explains Mazlan Muhammad, Managing Director of MM Vitaoils Sdn Bhd. Malaysia’s palm oil export to China stood at around 3.1 million tonnes per year in 2004, accounting for 70% of China’s total palm oil imports that year. This figure is
AT RM1,400 PER TONNE, PALM OIL IS A LOT CHEAPER THAN IMPORTED DIESEL, WHICH CURRENTLY HOVERS AROUND RM1,700 OR 1,800 TO RM2,000 PER TONNE. probably due to ignorance,” said Haji Abdul Rahman Sulaiman, chief operating officer of NatOleo. Haji Abdul Rahman said NatOleo is both Halal and Kosher certified, indicating that the consumers in Europe and US are demanding these requirements and are ultimately changing the entire supply chain. “Muslims cannot eat pork, true, but we also cannot use the utensils that are used to eat the pork. It’s the same thing in edible oils. Although the palm oil is Halal, if you store it in a facility that cannot segregate between what’s Halal and what’s Haram, it is no use. We are talking about a “cradle to grave” kind of scenario. The whole supply chain has to be Halal. “Buyers in Europe and US are demanding Kosher these days. Although they are small in numbers, they have managed to push the manufacturers in a big way. They would start asking if the shipping
“The USFDA ruling will have a direct impact on consumption of hydrogenated soybean oil in the USA and will benefit palm oil in the long run. It is estimated that about 2.5 million tonnes of partially hydrogenated vegetable oils in the US will be affected by this labeling law. With this ruling, palm oil is emerging as a viable replacement as a natural semisolid fats that does not require hydrogenation,” said Dato’ Sabri Ahmad, Group Chief Executive of Golden Hope Plantations Berhad and Chairman of the Malaysian Palm Oil Association (MPOA). Currently producing 14 million tonnes of crude palm oil per year, Malaysia accounts for 46% of the world’s supply with Indonesia a close second producing 12 million tonnes. Together, the two countries contributed 85% of the world’s supply in 2004. The industry accounted for RM 30 billion of the
set to increase by 4 – 4.5 million tonnes per year over the next five years, aided by an expected price increase within the near term. Apart from the technical aspects, palm oil’s price discount to soybean oil is another issue working in favour for palm oil. The increase in demand is already reflected in the increase of Malaysian palm oil export to United States from 263,000 tonnes in 2003 to more
Palm Oil Usage
Bakery pastry, cooking oiL, cooking products, carotine, candles, creamers, cocoa butter, chocolate, cosmetic products, detergent, lotion, lubricants, margerine, noodles, printing ink, PVC products, oleo chemicals, soaps & snacks
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Palm Oil BioDiesel in the USA: EarthFirst Americas Incorporated (EFA), a subsidiary of EarthFirst Technologies Incorporated, announced the arrival of the first shipment of palm oil-based biodiesel at the Port of Tampa, FL. The shipment, which arrived on November 8, 2005, contains 878 metric tons (267,790 gallons) of biodiesel. EFA plans to import regular shipments that are expected to grow to monthly loads of 3,000,000 gallons by the end of the first quarter of 2006. www.dieselnet.com
than half a million tonnes from January to November 2005. “In view of the demand growth will outpace the growth of supply, which has been the scenario over the past 10 years, I am therefore expecting the CPO price will move in the range between RM1500 - RM1600 with some seasonal consolidation period in-between. With the recent development in biodiesel, oleochemical and the recovery of the global economy, coupled with the inelastic supply nature of the commodity, the price outlook is expected to be firm and promising,” noted Dato’ Sabri. Others agree. Ng Lip Yong, Parliamentary Secretary to the Ministry of Plantation Industries and Commodities said the current CPO prices at RM1,400 per tonne was at a “comfortable” level, and the government does not want prices to shoot up to RM2,000. “Our CPO is competing with 16 others oils. It is now at a discount to soybean oil. Should our CPO price go up very high, it would not be competitive anymore,” he was quoted as saying. THE BIODIESEL PROSPECT Palm oil prices are not always on the high side, common in most traded commodities. A dip in price to RM700 per tonne in 2000 and the subsequent increase in petroleum prices have accelerated the research for palm oil to be used as fuel. The government’s setting up of
a National Biofuel Policy under the Ninth Malaysia Plan seems to be pointing to the urgency to fill such a void. By promoting the usage of biodiesel, the government is seen as taking a proactive measure to stabilise the palm oil prices. It would also lessen Malaysia’s import on diesel by 5%, or half a million tonnes of petroleum diesel. At RM1,400 per tonne, palm oil is a lot cheaper than imported diesel, which currently hovers at around RM1,700 or 1,800 to RM2,000 per tonne. Industrialised countries are also seeking to cut emissions to meet the UN Kyoto Protocol, since burning biofuel is considered to be carbon dioxide neutral and does not require emissions rights. The EU and US are actively pursuing the biodiesel alternative
utilised by the year 2020. Given Malaysia’s limited land acreage, can the industry produce enough palm oil to meet biodiesel’s increased global demand? The answer lies in increasing the oil palm’s yield, according to Dato’ Sabri. “It is possible for Malaysia to produce sufficient palm oil to meet the biodiesel demand. In terms of productivity, Malaysian producer would need to improve palm oil yield from the current 4 t/ha to a potential of 8 t/ha, oil extraction rate (OER) from 19% to 25% and FFB yield from 20t/ha to 40 t/ha. The FFB yield can be achieved using Golden Hope developed GH500 clone.” “While it is possible to meet the biodiesel demand, we would also need to be cautious as currently
“WE EXPECT MORE PALM OIL WILL BE UTILISED FOR BIO-DIESEL IN EUROPE NEXT YEAR. CURRENTLY, THEY USE RAPE SEED, WHICH IS MORE EXPENSIVE THAN PALM OIL” DATUK SABRI AHMAD, GROUP EXECUTIVE CHAIRMAN GOLDEN HOPE PLANTATIONS BHD
and are gearing up production. The production of biodiesel in these two regions will create a vacuum for edible oils that needs to be filled, and palm oil, being the cheapest and healthier alternative, is poised to replace this demand. By exporting 750,000 tonnes of biodiesel a year, Malaysia reportedly stands to earn RM1.7 billion. “We expect more palm oil will be utilised for bio-diesel in Europe next year. Currently, they use rape seed, which is more expensive than palm oil. At least 500,000 tonnes of palm oil are expected to be used there,” said Dato’ Sabri. Currently, about 4 million hectares of land has been cultivated with palm oil in Malaysia. Forecasted land acreage limit is 5-6 million hectares and this is expected to be fully
90% of palm oil produced is use for edible purposes. We need to have a balance between edible uses and for biodiesel,” he summarised. Clearly, palm oil will continue to play a positive role in the global supply and demand equation of the oils and fats industry. Malaysia’s strong support for the Roundtable on Sustainable Palm Oil (RSPO) will also benefit the industry and its community as it is vital that production and the use of palm oil be done in a sustainable manner based on economic, social and environmental viability. The growing demand for Halal, new rulings in the US, the opening up of China and the remarkable prospect of biodiesel are creating a new dimension for the demand and usage of palm oil. Let the hj Halal sleeping giant awake!
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finance
ISLAMIC CAPITAL MARKET: THE MARKET WHERE THE ACTIVITIES ARE CARRIED OUT IN WAYS THAT DO NOT CONFLICT WITH THE CONSCIENCE OF MUSLIMS AND THE RELIGION OF ISLAM.
Islamic Unit Trust in Malaysia an introduction FIRST LAUNCHED IN THE UNITED KINGDOM IN 1931 BY M&G, unit trusts are a form of investment by companies or individuals who pool their money to make large-scale investments in selected portfolio of securities. Within Malaysia, unit trust started with the formation of Malayan Unit Trust Ltd. in 1959. Government agencies started formulating regulations during the early years but it was in the 1980s that the industry started to bloom. The setting up of Amanah Saham Nasional by Permodalan Nasional Berhad (PNB) in 1981 drew overwhelming response. With an ingenious distribution channel, unit trusts nowadays are getting more attractive to the investing public. Post 1997-Asian financial crisis saw the emergence of Islamic funds as the popular type of unit trust issued by providers. The Securities Commission (SC) regulates the Malaysian unit trust industry and it defines the Islamic capital market as “the market where the activities are carried out in ways that do not conflict with the conscience of Muslims and the religion of Islam.” In other words, the Islamic capital market represents an assertion of religious law in the capital market transactions where the market should be free from the involvement of prohibited activities by Islam as well as free from the elements such as usury (riba), gambling (maisir) and ambiguity (gharar). To better strengthen this new banking reality, the Securities Commission established a Syariah Advisory Council (SAC) in 1996, to advice on all matters pertaining
to Islamic Capital Market, including that of unit trust. The eight members of the Syariah Council would naturally be best there is in Syariah – both knowledgeable and experienced as well as having a sound Islamic economics and finance background. The Chairman, Syariah Chief Justice Datuk Sheikh Ghazali Hj Abdul Rahman resides over seven other representatives including those from the International Islamic University Malaysia, Universiti Kebangsaan Malaysia, Islamic banks and the Human Rights Commission. To advise on all matters within the Islamic Unit Trust industry, the SC has appointed a total 26 Syariah individual advisers and four Syariah corporate advisers. Broken into four main categories to reflect its investment emphasis, Islamic THE HALAL JOURNAL 31
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POST 1997 -ASIAN FINANCIAL CRISIS SAW THE EMERGENCE OF ISLAMIC FUNDS AS THE POPULAR TYPE OF UNIT TRUST ISSUED BY PROVIDERS. Unit Trust in Malaysia is made up of Equity Funds (40 funds), Balanced Funds (17), Bond Funds (15) and Other Funds (5). An equity unit trust is the most common type of unit trust where a major portion of its assets are held in equities or securities of listed companies in the Malaysian stock market, which is the largest equity market in South East Asia. The performance of the units is therefore linked to the performance of the market. A rising market will normally give rise to an increase in the value of the unit and vice-versa. In Islamic unit trusts, funds can only be invested in “Halal” stocks that are not involved in Haram businesses like gambling, dealing of alcoholic beverages and the production of non-Halal products. It also excludes shares of companies that are involved in conventional banking, insurance or financial services. The returns of the Islamic Unit Trust will also avoid the incidence of ‘riba’ or usury interest through the process of cleansing or purification by the removal of such amounts representing the interest element. Such proceeds are normally donated to charities. As of September 2005, there are 36 unit trust management companies managing 331 approved funds in the overall unit trust industry that circulates some 99.6 billion units in the hands of 10.7 million unit holders. hj
TO P 3 B I G G E S T A P P R O V E D I S L A M I C U N I T T R U S T F U N D S BASED ON TYPE AND SIZE
1. EQUITY FUNDS FUND NAME
MANAGEMENT COMPANY
LAUNCH DATE
APPROVED FUND SIZE (RM Million)
MANAGER’S PRICE for Dec 3 Buy (RM)
MANAGER’S PRICE for Dec 3 Sell (RM)
Public Islamic Funds
Public Mutual Berhad
28.5.2003
6,000
0.2874
0.3060
Public Ittikal Funds
Public Mutual Berhad
10.4.1997
2,000
0.7970
0.8488
Mayban Dana Yakin
Maybank Unit Trust Berhad
24.11.2000
1,200
0.4035
0.4257
2. BALANCED FUNDS FUND NAME
MANAGEMENT COMPANY
LAUNCH DATE
APPROVED FUND SIZE (RM Million)
MANAGER’S PRICE for Dec 3 Buy (RM)
MANAGER’S PRICE for Dec 3 Sell (RM)
AMIslamic Balanced
AMInvest Services Berhad
10.9.2004
1,000
0.1870
0.1983
SBB Mutual Dana Al-Mizan
SBB Mutual Berhad
8.3.2001
1,000
0.3884
0.4136
Pacific Dana Aman
Pacific Mutual Fund Berhad
16.4.1998
1,000
0.4195
0.4484
3. BOND FUNDS FUND NAME
MANAGEMENT COMPANY
LAUNCH DATE
APPROVED FUND SIZE (RM Million)
MANAGER’S PRICE for Dec 3 Buy (RM)
MANAGER’S PRICE for Dec 3 Sell (RM)
Mayban Dana Arif
Mayban Unit Trust Mgmt. Berhad
27.4.2004
600
0.5220
0.5272
RHB Islamic Bond Fund
RHB Unit Trust Mgmt. Berhad
25.8.2000
500
0.0705
0.0705
AMBon Islam
AMInvest Services Berhad
26.11.2001
500
1.0619
1.0725
4. OTHER FUNDS FUND NAME
MANAGEMENT COMPANY
LAUNCH DATE
APPROVED FUND SIZE (RM Million)
MANAGER’S PRICE for Dec 3 Buy (RM)
MANAGER’S PRICE for Dec 3 Sell (RM)
1TA Dana OptiMix
TA Unit Trust Mgmt. Berhad
17.1.2005
800
0.4727
0.5022
TA Islamic CashPlus
TA Unit Trust Mgmt. Berhad
N/A
600
0.5054
0.5054
Mayban Dana Fitrah 1 Capital Protected
Mayban Unit Trust Berhad
27.7.2004
300
0.5225
N/A
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finance | update
Help for ASEAN Set-Up Planning to set up a factory somewhere in South East Asia? The Malaysian Industrial Development Finance Berhad (MIDF) has a financing facility to help offshore relocation for Malaysian-based companies to remain competitive. The Fund for Cross Border Investment in Manufacturing (FCBI) was setup to assist Malaysian companies to start manufacturing in ASEAN countries in order to take advantage of the cheaper labour cost as well as to increase the exports of Malaysianbased companies to these countries. To qualify, companies must be 51% Malaysian controlled and domiciled locally. Companies must also have a shareholders fund of at least RM5 million, and have been engaged in the manufacturing sector for at least 5 years. There is also a criteria pertaining to track record, with an average pre-tax return on shareholders’ fund of not less than 7.5% over the past three financial years. The debt gearing should not, overall, be more than 2:1, prior to obtaining the financing and not more than 2.5:1 when the financing is included. For companies abroad, they must have at least 51% of shareholding held by the borrowing company in Malaysia and is engaged or will be engaging offshore in manufacturing similar or related products as that of the parent company. MIDF provides financing, leasing or industrial hire purchase facilities for equipment, heavy and light machinery, plant and other related equipments. It also provides managerial, technical and administrative advisory hj support to its borrowers.
Kuwait Finance House Warming Up Since Kuwait Finance House (KFH) got the nod to operate within Malaysia in May 2005, the Middle East banking giant has begun taking deposits since August and is presently concentrating on investment banking. KFH is planning to go even bigger as plans of launching a full range of Islamic financial products were made public recently. This would include housing and mortgage loans, car loans and even credit cards in the coming months. Fund management is also an area of interest for the Kuwait-based group, as they are looking to use Malaysia as their platform to penetrate into other markets in the region including China, Singapore, New Zealand, India and Indonesia. “Our plan for 2006 is to expand and we are looking at growing organically and via acquisitions for our investment banking and retail business. We are looking around and may partner local Islamic banks. But these are still early days and we are still exploring opportunities since we have a universal banking licence,” said newly-appointed KFH deputy chief executive officer, Jamelah Jamaluddin. “We would focus on investment, commercial and the retail sectors. We have a branch now and may expand in due time. We have also applied to set up an offshore banking unit in Labuan so that we can do non-ringgit deals,’’ she said. Aside from offering an avenue for Middle Eastern investors to invest in Malaysia and the region, KFH would also offer similar opportunities for Malaysian and regional investors to venture to the Middle Eastern markets. Incorporated in the State of Kuwait in 1977, Kuwait Finance House’s total assets amounted to USD11.88 billion as of December 2004 while revenue for 2004 stands at USD700 million. The Government of Kuwait owns 49% of the hj equity while the general public holds the remaining 51% interest.
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country focus
NEW ZEALAND Market Leader in Halal Meat THE ROBUST GROWTH IN GLOBAL DEMAND FOR HALAL GOODS, particularly agriculture-based products, has created a bright prospect for the New Zealand economy despite the fact that the country’s population is overwhelmingly dominated by Christians. Although it has a relatively small population of about four million, the country today is reputed to be one of the largest exporter of meat products. In addition, 98% of the meat products are certified Halal and exported to a number of Muslim countries around the world. The move to promote the Halal production methods among the producers has enabled New Zealand to cement its reputation and instill great confidence for the importing countries including Malaysia, Saudi Arabia, Egypt, The United Arab Emirates, Indonesia, Canada, United States of America and United Kingdom. The industry’s annual value is estimated at between NZ$200 million and NZ$300 million and the farming of animals is seen as an important aspect of the New Zealand economy. With the availability of vast swatches of pasture land and ideal climate for animal rearing, there are an estimated 50 million sheep, 9.6 million cattle and 1.6 million deer being farmed at any one time. New Zealand’s economy has traditionally been based on a foundation of exports from its efficient agricultural system. Other leading agricultural exports Words By DAFIZECK DAUD
IN 2003, 85% OF NEW ZEALAND MEAT, REPRESENTING NEARLY THREEQUARTERS OF A MILLION TONNES OF PROCESSED PRODUCT, WENT TO 70 OVERSEAS MARKETS.
in addition to meat are dairy products, forest products, fruit and vegetables, fish, and wool. The country is a direct beneficiary of many of the reforms achieved under the Uruguay Round of Trade. It is moving up towards the levels of the big west European economies with the agriculture in general and the dairy sector in particular while enjoying many new trade opportunities, boosted by the availability of substantial hydroelectric power and sizable reserves of natural gas. NEW ZEALAND’S HALAL MEAT INDUSTRY TOOK OFF IN 1960S and it began exporting to the lucrative Middle East market in mid-1970s. In view of the great potential for Halal
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NZ at a Glance POPULATION: 4,035,461 CAPITAL: Wellington ETHNIC GROUPS: European 69.8%, Maori 7.9%, Asian 5.7%, Pacific Islander 4.4%, other 0.5%, mixed 7.8%, unspecified 3.8%
98% OF THE MEAT PRODUCTS ARE CERTIFIED HALAL AND EXPORTED TO A NUMBER OF MUSLIM COUNTRIES AROUND THE WORLD.
RELIGIONS: Anglican 14.9%, Roman Catholic 12.4%, Presbyterian 10.9%, Methodist 2.9%, Pentecostal 1.7%, Baptist 1.3%, other Christian 9.4%, other 3.3%, unspecified 17.2%, none 26% LANGUAGES: English (official), Maori (official)
food products, the industry continues to emphasise on adhering to the Halal principles to ensure that the products can be accepted free of doubt. There are two major Halal certification authorities in New Zealand- the Federation of Islamic Associations of New Zealand (FIANZ) and the New Zealand Islamic Meat Management. While the former was established to pursue the interest of its seven member associations, the latter is an independent organisation. The two bodies oversee the national certification network that consists of more than 40 plants across the country. Today, New Zealand has emerged as the world leader for sheep and beef production. It has achieved this status without much of its government’s assistance. It is also facing quota restrictions and trade barriers in the majority of the global meat markets. In 2003, 85% of New Zealand meat, representing nearly three-quarters of a million tonnes of processed product, went to 70 overseas markets. The meat industry has also made significant growth in moving towards value-added exports. In the same year, the industry increased its percentage of value-added exports to 65%, up from 51% in 2002. In recent years, and in keeping with New Zealand’s history of innovation in agriculture, small populations of non-traditional farming species have also been introduced. These include llama, alpaca and water buffalo. The sophisticated meat industry is also reputed for its innovation, technologies and systems that enable it to produce, process and package high-quality, pasturefed, naturally raised meat in the world. New Zealand’s herds are raised on their natural diet of fresh pasture in wide open spaces without the need to provide grains or supplements. The country’s farmers run modern and wellmanaged farms, and take pride in working with their industry processors to deliver the finest meat food products in top condition to the discerning export markets. A cornerstone of the New Zealand economy, meat is the country’s second largest food export, worth $NZ4.16 billion in 2003. About 90% of export income is derived from lean, nutrient-dense sheepmeat and beef.
In addition, animalderived raw materials from New Zealand are sought after by the pharmaceutical and natural medicines industries. THE NEW ZEALAND MEAT INDUSTRY boasts one of the greatest quality assurance systems in the world. A key strength is the disease-free status of the national flock and herd. The country’s geographical isolation backed by stringent quarantine regulations means that overseas consumers can be assured that the New Zealand meat is free of BSE or other animal diseases such as foot and mouth. A strong regulation process of livestock inspection complements this and is underpinned by the adoption of HAACP quality assurance systems in all processing plants. The industry also runs unique traceback systems allowing products to be traced back to the farm gate. The growing meat industry has helped significantly improve the country’s economy, boosted by its favourable weather and high commodity prices.
ECONOMY GDP (PURCHASING POWER PARITY): $92.51 billion GDP - COMPOSITION BY SECTOR: agriculture: 4.6% industry: 27.4% services: 68% AGRICULTURE - PRODUCTS: wheat, barley, potatoes, pulses, fruits, vegetables, wool, beef, lamb and mutton, dairy products, fish INDUSTRIES: food processing, wood and paper products, textiles, machinery, transportation equipment, banking and insurance, tourism, mining EXPORTS: $19.85 billion EXPORTS - COMMODITIES: dairy products, meat, wood and wood products, fish, machinery EXPORTS - PARTNERS: Australia 21%, US 14.4%, Japan 11.3%, China 5.7%, UK 4.7% IMPORTS: $19.77 billion IMPORTS COMMODITIES: machinery and equipment, vehicles and aircraft, petroleum, electronics, textiles, plastics IMPORTS - PARTNERS: Australia 22.4%, US 11.3%, Japan 11.2%, China 9.7%, Germany 5.2% CURRENCY (CODE): New Zealand dollar (NZD)
The economy was estimated to have grown by 2.5% in 2000, which had slowed in 1997 and 1998 due to the negative effects of the Asian financial crisis and two successive years of drought and had rebounded in 1999. The increased exports would also help narrow the current account deficit, which stood at more than 8% of GDP in hj 2000, to lower levels. THE HALAL JOURNAL 37
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2006 JAN+FEB THE
HALAL
JOURNAL
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LIVING
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M. NASIR TRAVEL TO CHINA IN PEACE HALAL GOOD CONTEMPORARY MUSIC THAI FOOD IN MELBOURNE ‘E’ NUMBERS DE-MYSTIFIED LIVING IN MODERATIION
I like to read interesting stuff about Islam, past and present, and if I feel strongly enough about an issue, it would automatically spark an idea and a song would be born.
M.NASIR
✱Quick Info HOW TO CHECK A HALAL PRODUCT
1) Halal products around the world should have a Halal Guarantee symbol accredited by Islamic organisation of the respected country [such as JAKIM in Malaysia]. 2) Imported Halal products are checked and approved by local Islamic organisation before they reach the consumers. They should also display the Halal Guarantee symbol. 3) Check the ingredients of the product and refer to local Islamic organisation for Halal product listing. 4) If you are in doubt, do not buy.
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people
The Thinking Artist
M. Nasir is an original Muslim singer, composer, producer, actor, film director and even a fine arts painter. The Halal Journal caught up with him recently to find out the deal with his brand of music. He gave us a lot more. WHAT DOES MUSIC MEAN TO YOU? Music to me is an instrument for self expression used to entertain oneself or to entertain others. To me, it is a living being and if this ‘being’ is used against the acceptable norms of Islam, then it is haram- like singing to show off or ria’. And you get a lot of these in the entertainment industry. Some also say that Islam only permits certain musical instruments that are percussionistic in nature, no strings. I think that is not true, and I think it’s a matter of one’s perception and feel, and if that feeling is ‘over’ or extreme, then they shouldn’t listen to or do music. WHAT DO YOU HOPE TO ACHIEVE THROUGH YOUR MUSIC? Well, it’s only natural that we try to put the plight of our race and religion onto a pedestal and for me, this pedestal is music. In this regard, I’m fortunate that my kind of music is well received. But there are a lot more who didn’t have that kind of privilege, which I think is a pity since they continue trying and trying on the same form even after numerous failures. And for what? Move on!
YOUR SONGS ALWAYS HAVE A CERTAIN ISLAMIC OR MALAY THEME TO IT. HOW DO YOU COME UP WITH IDEAS FOR THE LYRICS AND FORM FOR A SONG? It is usually what I was obsessed about at that time. I like to read interesting stuff about Islam, past and present, and if I
“
I think it’s a matter of one’s perception and feel, and if that feeling is ‘over’ or extreme, then they shouldn’t listen to or do music.
”
feel strongly enough about an issue, it would automatically spark an idea and a song would be born. On the form, Malay music has a lot of different influences, mainly Arabic and Indian, just like the Irish music possessing Gaelic or Mediterranean elements. We never had our own form and I think, if we don’t really focus on our own style and identity, which direction we want to go, I think we will have a major problem later. WHAT DO YOU MEAN? I mean, take a look at the why the Indian and Arab music spread. It’s because of their extremities. The West view the Arabs in both extremes, the beautiful and the ugly, clean and dirty, paradise and hell. Whereas when we look at us here, everything seems to be the same all year round, every year. Nothing ever happens! That is why we are so slow because at the moment, nobody knows where we want to go. We can organise a ‘ship’ for us to travel in, but where we want to go, that remains a mystery. That is reflected in our music, since life imitates arts, arts imitates life. SO WHAT DO YOU THINK WE SHOULD DO? Well, definitely it has to start with some form of revolution, a change in the society’s thinking about certain things. For example, we cannot organise ‘happening’ events without people criticising on all sort of issues. Like making a film for example, nothing is happening in local films because we cannot do a lot of things. There is a certain double standard in film censorship and it is restricting and this is actually making us go nowhere. WHY IS THIS HAPPENING? It’s all because of our leaders. They are the root cause of our current situation. They are the ones who put people within the industry to limit our creativity. They are
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not convinced that they can ‘let us go’. That’s why we have what we have right now, this cannot, that cannot, so nothing is happening. Sure our government is really good in this ‘balancing act’, but there are side effects and the music industry is a good reflection of this side effect.”
it’s only natural that we try to put the plig ht of our race and religion onto a pedestal and for me, this pedestal is music.
“
”
OK. WHO HAS BEEN THE MOST INFLUENTIAL FIGURE IN YOUR CAREER? It’s hard to say actually. It depends on what I’m obsessed about during that period. When I was young, I was really into fine arts, so I liked Leonardo da Vinci. But when I grew older and started going into modern art, other artists got my attention. In music, there is no one figure, but when I liked folk rock, it was Bob Dylan and Crosby, Stills, Nash & Young. They produce music that was a true reflection of their time. The problem with our local musicians, there are actually no thinkers, mostly practitioners… IS THIS PREVALENT TILL TODAY YOU THINK? Yes, sadly enough. A few of us did try to come up with something intelligent along the way but since we are in Malaysia, there’s not much revolution, except during the early eighties when a lot of people started going to college. That’s when we start to see new forms, new branches of music developing. But still, there’s not too much change in the thinking department. So, when people talk about our local music catching up with the West, I think that will never happen. They are way too fast for us.
Brief
On his song Andalusia: “Andalusia pays tribute to ancient Spain, a centre of knowledge and excellence in the arts, science and technology during the classical era of Islamic civilisation.”
On his song Kias Fansuri: “Kias Fansuri is in reference to the Malay Sufi, Hamzah Fansuri, known for his great intellect and mystical poetry thus the song alludes to Fansuri’s visionary insight.”
On entertainment in Islam: “I’m involved in a new era of the country’s entertainment industry. I know what Islam is about and its limitations in entertainment from before…I suggest we understand what is Islam in entertainment.”
On his musical philosophy: “Music has to have its soul and its own original form. The soul must be strong and the form must be clear. Its form must be able to be heard and able to highlight its true, original self ... the form must be expressed as required by the soul or spirit.”
SOURCE: XSMUSIC.COM
NEVER? Our local music will reflect the nation, the people itself. The music, the culture will come from the demand of the local society. Malaysia is a simplistic society, if you’re nice, have a nice face and a good voice, they will accept. But in terms of thinking, hj you got to go further than that…
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travel
…Travel as far as China has always been an exciting yet daunting destination for Muslim visitors. Today with improving Halal services, more travel agencies are offering various tours for Muslims to discover China with peace of mind.
Sample authentic and world famous Chinese cuisines like the Peking Duck and enjoy the peace of mind knowing that it is fully Halal.
ISLAM WAS FIRST INTRODUCED IN CHINA IN 650 AD, eighteen years after the Prophet’s (PEACE BE UPON HIM) death. Saad Abi Waqqas brought the message from Caliphate Uthman ibn Affan inviting Emperor Yung Wei to embrace Islam and although he did not, he showed his admiration by ordering the establishment of the first mosque – the magnificent Canton City mosque or ‘Memorial Mosque’, which still stands until today. Now there are 31 million Muslims and as many as 32,750 mosques dotting the vast expense of the Chinese mainland. Realising the potential of Muslim-related excursions in China, TM Tours & Travel Sdn Bhd first started organising China Muslim tours as early as 1995 and the immense response had led to many other travel agents offering similar Muslim packages. Reliance Shipping & Travel Agencies Sdn Bhd in association with China Air also started a Muslim Tour to Beijing in 2003 and extended it to Shanghai and Xian. Indalucia Tours & Travel, another local travel agency that offers extensive Muslim packages to China, goes one step ahead when it came up with fully customisable, highly personalised and private escapades. The response has been “exceptional”, according to Norazimah, Director of Indalucia. “We are focussing on the market for personalised packages. Some (people) don’t like to travel within a large crowd where they don’t get the see and do what they want and when they want it. So we offer them a package that has a personal English-speaking local tour guide, private car, Halal cuisines and an itinerary that is both relaxing and enjoyable,” said Norazimah. Under Indalucia’s China package, Muslim tourists not only get to see the many Chinese historical sites but also get to indulge in some of the most amazing Muslim heritage and artefacts, some dating back thousands of years. Attractions that are usually not on tourist maps include the Niuje mosque, the oldest and widely regarded as the spiritual centre of Muslims in Beijing; the Phoenix Mosque, one of the four most famous mosques in east of China with a history spanning over 1,000 years; and the Great Mosque in Xian, founded in 742 AD during the Tang dynasty and was the pilgrimage centre for the Arab merchants coming to China via the Silk Road. Muslim tourists are also ensured full Halal meals throughout the entire tour. Feast in the diversity of legendary Chinese dishes and sample authentic and world famous Chinese cuisines like the Peking duck, kung pao chicken, bao zhi or shabu shabu and enjoy the peace of mind knowing that it is fully Halal. Besides the glimpses of Islamic heritage in China, tourists can also discover the Great Wall of China, Tiananmen Square, Imperial Garden’s Summer Palace or the Forbidden City in Beijing. In Xian, a town long considered as one of the cradle of civilisation dating back to 4000BC, tourists could also visit the Museum of Qin Terracotta Warriors or go shopping at a nearby Muslim market. hj
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browsing Contemporary Muslim Musician
Good music is not just about nasyid. Here are some of the hottest and latest cool tunes from around the world.
Youssou N’Dour “If any third world performer has a real shot at the sort of universal popularity enjoyed by Bob Marley, it’s Youssou, a singer with a voice so extraordinary that the history of Africa seems locked inside it.” - Rolling Stone
magazine on Youssou N’Dour A leading ambassador for Senegalese music, Youssou N’Dour’s 1994 hit with Neneh Cherry ‘7 Seconds’ catapulted him into the global limelight. His Grammy Award-winning album, ‘Egypt’ was described as a breath of fresh air with the opening track ‘Allah’ seemingly betrayed any European or American pop influences. > www.youssou.com
Dawud Wharnsby Folk, jazz, rock, worldbeat, classical, country: musical genres that have been defined and consistently evolving for decades. Many talented artists interpret, arrange and blend these genres with their unique styles. Few though, are able to claim being pioneers in charting a completely new musical market. Dawud Wharnsby,
however, is one such artist. His latest CD, “Vacuous Waxing” brings together a unique mix of featured artists, including Canadian songwriter Bill Kocher, UK bass legend Danny Thompson, Canadian folk icon Stephen Fearing and world renowned sitar master Irshad Khan. > www.wharnsby.com
Remarkable Current American-based Remarkable Current (RC) is an independent record label, a community outreach group, and a cultural education outfit, all rolled into one. With Islam as the focus, they “weave spirituality through contemporary musical expression” for all to enjoy. In addition to producing several critically acclaimed albums, RC also organises events and workshops to broaden the public’s understanding of contemporary Muslim culture. Their musicians cover a wide range of genres from traditional Moroccan music to R&B, from hip hop to jazz. Excellent! > www.remarkablecurrent.com
website visited Dinar Standard (www. dinarstandard.com) Enter Islamic business strategy service! Dinarstandard.com provides insights and data for businesses in the Muslim world. It features expert advices, key industry research reports and provides some of the unique challenges and opportunities for Muslims entrepreneurs. With original ideas and interesting data for working Muslims, this site is worth a visit.
fashion facts
“As a matter of fact, the younger generations did not only come up with better Islamic fashion, they are also slowly changing {the whole perception of what Islamic fashion should and could be}”
DATIN SERI SHARIFAH AZIAH ON YOUNG MUSLIM FASHION DESIGNERS.
Visit www.halaljournal.com for more story on Islamic fashion.
READ THE INGREDIENTS!
Did you know that the E numbers are reference numbers used by the European Union to facilitate identification of food additives? The “E” stands for “Europe” or “European Union” and it’s normally assigned a unique number: 100 – 199 are for food coloring, 200 – 299 are for preservatives and so on. The known non-Halal ones are E 120 - Cochineal (red colour from insects), E 441 – Gelatine, if the source is from swine and E 542 – Edible Bone Phosphate – if it is from pork bones. Obviously the E number can be misleading so read the ingredients the next time you go shopping. THE HALAL JOURNAL LIVING
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Halal Restaurant Review Halal Thai food in Australia
• Starters: AUD$4.80 - $12.80 • Main: AUD$17.80 - $29 • Dessert: AUD$7 - $10 • Beverage: AUD$16 - $35 • Open: Mon - Sun 12pm - 2.45pm || 6pm – 11pm
Sawasdee Thai Restaurant has established a reputation in Melbourne for providing a great Thai dining experience. If you can’t decided or don’t know what to order, you can head for the banquet as it provides a good selection of dishes available. Recommended is the Tom Yum Talay, a wonderful blend of sweet, sour and spicy tom yum perfected with tender seafood morsels. We tried the Mized Hot Entrée, a pretty looking and delicious set of prawn cake, light crispy spring roll and tender chicken parcel. For main entrée, try the fried fish in ginger sauce. This high ceiling and straw-lined roof restaurant is a good Halal dining option in Melbourne.
wisdom | MODERATION
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hen people think of the Sunnah of Islam, they generally think about religious matters, but on closer inspection we find that there are many practical lifestyle tips to be found there. And none are more important than the practice of moderation, particularly when it comes to food. A man asked the Prophet why it was that his companions were seldom ill. His reply is a statement that all of us would do well to keep in mind. The Prophet said, “We are a people who do not start to eat until we are hungry; and when we eat, we stop before we are full”. How many times have we eaten – even when not hungry – just because it was mealtime, and how often have we eaten too much, just because it was there? Then we wonder why we always have indigestion and put on weight…
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on display WHAT’S NEW, WHAT’S HALAL, WHAT’S ON DISPLAY? Halal products are those that are good, pure and safe for human consumption. It ranges from food to cosmetics, pharmaceuticals to toiletries. Here are some of the products with the Halal guarantee.
Digital al Quran Al Muneer
Fresh Fruit Delights
From the outside you would think you were about to bite into a savoury snack, but with Frozies you get a fresh fruit surprise instead. These lightly breaded fruit pieces can be shallow fried or baked in 5 minutes and are a great snack or end to a meal. The fruit keeps all the qualities of its original fresh state but with the added bonus of a light crispy outside. The products are breaded and blast freeze till -18C which allows the products to retain their nutrients and flavours and be kept for a year. There are choices of pineapple, banana, cempedak, sukun, sweet potato, tapioca and yam, all of which are rich in fibre and nutrients. Add ice-cream and you’re in for a special treat. For more details about Frozies and other Liasara products, visit www.liasara.com.
Pillsbury Pandan Pancakes
The famous Pillsbury pancake has come up with pandan flavour! Wake up to the new and exciting flavour of Pillsbury One-Step pancakes. Warm, fluffy with a light pandan fragrance, all you need to do is add water or milk and cook till golden brown. For a delightful treat, top the pancakes with fruits or butter. Each 250g pouch makes 9-10 pancakes. Certified Halal by the Islamic Dawah Council of the Philippines (IDCP), the product is scheduled to be hit the market soon. For further enquiries, contact General Mills Malaysia Sdn Bhd tel: +603 2282 0998 or email eliza.ong@genmills.com.
One of the most common problems faced by many when reciting the Qur’an is the improper pronunciation of the ayat or tajwid, and not understanding the full meaning of what is being read. Harnessing the power of modern technology, Darul Fikir Sdn Bhd has begun marketing an innovative product that groups all available information on the Holy Qur’an into one neat package. Through its color coded tutorial, a beginner can learn how to recite the Qur’an the way it is intended, taking a much lesser time than one would normally take. Al Muneer is also equipped with three modes of translations presented in eight different languages, as well as prayer times and the call for prayers (azan) from anywhere in the world. It is also equipped with a Qur’an encyclopedia, a large collection of information on the Qur’an and Islam. The pages can be electronically controlled by remote control as well as by using a wrist remote for browsing during a prayer. Al Muneer retails at RM4,999.00 per unit. For enquiries, please contact Darul Fikir at +603 2698 1636 or visit www.darulfikir.com.my.
Halal Licorice At Last
For those with a sweet tooth, finding that special chewy treat can be hard, especially when gelatine keeps popping up on the list of ingredients. Here is a delightful snack that not only tastes good, it is also certified Halal by the Muslim Judicial Council (MJC), one of the South African Halal certifying bodies. Promoted as “the original play-food”, Beacon’s ‘Licorice Allsorts’ has long been discovered by children as a worthy candy to slip into the shopping cart when mom’s not looking. With so many snacks still using gelatine, Beacon’s uses only gelatine derived from bovine sources. A bag filled with interesting shapes, colours and unforgettable taste, this South African snack is not only good to pacify the wailing kids, grown ups have also proven to have gone ga-ga over it.
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MISSION around the world. All the paperwork has to be done in the head office in Chicago. There, we have two officers who update the database, update the ingredients list and making sure everything else is done, like reviewing the ingredient spec sheets and all the supporting documents. When everything is clear, then only we tell you that a certification can be issued, and then we go out and tell the industry this.
A Malaysian living in Chicago, Dr. Mohamed Sadek is a man with many Halal hats. He is the Secretary General of the Indonesian-based World Halal Council, Vice President of Islamic Food and Nutrition Council of America (IFANCA) and the Chairman of the General Islamic Food Council of Europe. The Halal Journal caught up with him recently.
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Non-Muslim countries like China and the Europe are humming with Halal.
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TELL US ABOUT THE WORLD HALAL COUNCIL AND THE LATEST DEVELOPMENTS. The World Halal Council is set up to coordinate international Halal policies and develop and control the use of one standard logo. Last September we came out with a draft of a universal Halal Standards and Guidelines, deliberated it at length with all the members, welcomed comments, and at end of it, we unanimously agree to adopt the refined version and passed a resolution to implement it by all members. We plan to formally present it to the OIC Secretariat for them to review and possibly adopt. There are still minor details that need to be addressed. WHAT ABOUT IFANCA AND ITS HALAL CERTIFICATION PROCESS? IFANCA is based in Chicago but is also present various countries
WHAT WAS YOUR EXPERIENCE IN MALAYSIA? Actually, I used to work at the Prime Minister’s office in the Halal-Haram program, when I became the first to sit on the committee as technical member. This is under the Pusat Islam at that time, in 1982, the first time when we began the Halal certification that would eventually put Malaysia on the world map, now a globally recognised certification. We made a mistake at one time of going private, a very expensive experiment, but it (Halal certification) is back to the government now. BEING INVOLVED IN HALAL MATTERS IN VARIOUS POSITIONS, WHAT HAVE YOU OBSERVED SO FAR? Actually, the tragedy of it all is that the concept of Halal is not even in existence in many pre-dominantly Muslim countries like Turkey, Pakistan or Bangladesh. They really take Halal for granted since they are all Muslims. On the other hand, non-Muslim countries like China and the Europe are humming with Halal. There are a lot of activities related to Halal and I’m really amazed, people everywhere are all asking for Halal, hj Halal, Halal. It’s amazing.
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