THE GLOBAL HALAL TRADE
AUSTRALIA AU$6.50 • MALAYSIA RM9.90 • SINGAPORE S$5.50 • UAE DHS10 • UK £2.95
PP 13884/10/2007 MICA (P) 143/02/2007
| kasehdia.com | www.halaljournal.com | MAY+JUNE 2008
Latest numbers & trends
HALAL TRACED PRODUCT
HALAL TRACEABILITY A question of authenticity MUSLIMS AS A MARKET What you should know ICCI’S GLOBAL HALAL MANDATE FROM OIC What it means for the rest of us
+
LIVING: MUSLIM YOUTH STATE OF PANORAMA, SOUTH AFRICA SERI ANGKASA REVOLVING RESTAURANT HASHIM KAMALI UP CLOSE FREAKONOMICS
cov may 08.indd 2
5/8/08 12:50:29 AM
T H E
P R E M I E R
G L O B A L
World Halal
w w w. w orl dh a l a l f orum . org i n f o @ w or ldh al alf orum org t el : + 6 0 3 6 2 0 3 1 0 2 5 fax : + 6 0 3 6 2 0 3 4 0 7 2
www.ha l al jour nal . c om www. kasehdi a. c om Platinum Sponsors
Event Sponsors
WHFAD HJ-08.indd 4
5/7/08 4:57:33 PM
F
H A L A L
I N D U S T RY
E V E N T
Forum 2 0 0 8 SU S TA IN E D DE V E LOP M EN T THROU GH I N V ES TM EN T & IN T E G R AT ION 12-13 MAY 2008 KUALA LUMPUR CONVENTION CENTRE KUALA LUMPUR, MALAYSIA
HOSTED BY
Gold Sponsor
Premier Supporters
Silver Sponsors
official media
on-line media partners
WHFAD HJ-08.indd 5
partner event
organiser
official hotel
official travel agent
media partners
supported by
5/7/08 4:59:19 PM
HJ-cimb-cov.indd 2
4/9/08 8:42:25 PM
www.halaljournal.com
M AY + J U N E 2 0 0 8
contents 10} NEW CHAIRMAN FOR WORLD HALAL FORUM
Sheikh Saleh Kamel of ICCI is now the chairman of WHF
18} THE LAST 12 MONTHS WITH THE WORLD HALAL FORUM A globe-trotting endeavour
30} THE 5TH MALAYSIA INTERNATIONAL HALAL SHOWCASE
New venue, more traders, bigger crowd
32} THE GLOBAL HALAL TRADE Two years of in-depth research on trade in Halal products and services in more than 12 countries
36} MUSLIMS’ AWARENESS OF HALAL IN THE AGE OF GLOBALISATION Where in the spectrum are they?
40} GLOBAL IMAGE AND PERCEPTION OF ISLAMIC VALUES What you need to know
44} ISLAMIC CHAMBER OF COMMERCE AND INDUSTRY
The platform for a global Halal standard
46} HALAL TRACEABILITY A question of authenticity
48} MALAYSIAN HALAL PARKS What is it all about?
52} FASTRACK AMERICAS The Uruguayan beef industry
46} FASTRACK MIDDLE EAST
Halal Tourism: Travel and good clean fun
48} FASTRACK EUROPE
Opportunities and threats of the Halal market in France
50} FASTRACK EUROPE
Turkey: The plight of pork butchers and pig farms
56} FASTRACK ASIA
Malaysian Halal certification changes hands
66} FASTRACK ASIA
China: One bite at a time
80} FINANCE
The Development of the Malaysian Islamic Capital Market ©2008 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.
content.indd 3
5/8/08 12:52:25 AM
Ed’s Note
“We cannot expect to eliminate all differences or the grey areas but we can aim to reduce them.” Prof. Dr. Mohammad Hashim Kamali
Regulars 08} GLOBAL NEWS A brief insight into events currently shaping the Halal industry around the globe + Calendar of Events + Online Polls 76} COUNTRY IN FOCUS The United Kingdom
Living 95} FEATURE COVER Muslim Youth: Their Dilemmas, Challenges and Sense of Belonging 100} JOURNEY State of Panorama ˇ the most scenic routes in South Africa· 102} BROWSING Seri Angkasa Revolving Restaurant, KL; Farid Ali in Music; and Freakonomics and The Lost History in Books 106} ON DISPLAY Halal and good stuff found on the shelf 108} SNAPSHOTS Images of recent happenings in the industry 112} PARTING WORDS Prof. Dr. Mohamad Hashim Kamali, Professor of Law at the International Islamic University Malaysia
content.indd 4
It is that time of year again when the world gauges the size, penetration, effects, challenges and opportunities of the global Halal industry. The cue will come from the two biggest Halal events in the world happening back-toback in Kuala Lumpur – the Malaysia International Halal Showcase (MIHAS) and the World Halal Forum (WHF). The third World Halal Forum, themed “Sustainable Development through Investment and Integration”, is happening on the 12th and 13th May at the Kuala Lumpur Convention Centre. It is expected to feature OIC-endorsed developmental programmes on top of the forum’s customary menu of high-value speakers and topics. MIHAS will be held at the new MATRADE building starting 7th May, and is set to break all records in trade-matching value, which has become a key component of the event. Malaysia’s Halal initiative was a catalyst for pushing Halal to the forefront of the business agenda at the recent OIC Summit in Dakar, Senegal. For the first time, Halal was on the agenda of the 57-nation grouping, which represents over 1.8 billion Muslims. The OIC recognised the Islamic Chamber of Commerce and Industry (ICCI) and tasked them to play a leading role in the implementation of Halal programmes. The Prime Minister of Malaysia Dato’ Seri Abdullah Ahmad Badawi has implemented structural reforms in the Halal sector in Malaysia. The role of Halal certification has been shifted to the Halal Industry Development Corporation (HDC) to improve delivery time for Malaysian manufacturers. This proactive approach is to ensure that Malaysia keeps its competitive edge in Halal certification and allows Malaysian-based manufacturers to react quickly to the changes in global demand. Taking a cue from the recent OIC Summit, Turkey has also increased its efforts to be a player in the arena of standards development by hosting the OIC Standardisation Committee. The next meeting for this group will be hosted by the ICCI in Jeddah in February 2009. There will be exciting times ahead for the sector. Read all about it in The Halal Journal. For more upto-date news, visit www.halaljournal.com.
the Halal Journal team
:: THE HE A R T OF THE HA L A L J OU R N A L :: Halal refers to that which the Creator has made lawful. Its opposite, 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 for 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.
5/8/08 12:55:49 AM
• Master ad HJ.indd 2
4/17/07 10:08:17 PM
TM
EDITORIAL EDITOR
Jumaatun Azmi ju@kasehdia.com
ASSOCIATE EDITOR
Irfan Sungkar irfan@kasehdia.com
WRITER
Ruzanna Mohamad ruzanna@kasehdia.com Ahmad Khairol Shafizan Johari khairol@kasehdia.com
RESEARCHER
Zaahira Muhammad zaahira@kasehdia.com Norliyana Zulkeplee Norliyana@kasehdia.com Suraiya Ilyas Suraiya@kasehdia.com
CONTRIBUTING WRITERS Naseem Javed Dr. Cedomir Nestorovic Hariz Ahmad Kamal Jaspal Singh Saif Al Aswad
KASEHDIA HALAL GUIDE SERIES Top 3 ‘Best Guide in the World’ for 2004 Gourmand Awards “The world’s first series of Halal food restaurant guides.” -Asian Wall Street Journal
HALALfood KUALA LUMPUR 2007/08 A G U I D E TO G O O D E AT I N G
GRAPHICS & DESIGN M.Zailan
ONLINE COORDINATORS
Raja Ahmad Shazwan Iskandar raja@halaljournal.com Mohd Ikhwal Mohd Noor
SALES & DISTRIBUTION
Get your copy today!
Sharifah Noor Juzirawati Syed Othman sharifah@kasehdia.com
CORPORATE MANAGING DIRECTOR Jumaatun Azmi ju@kasehdia.com
EXECUTIVE DIRECTOR
Nordin Abdullah nordin@kasehdia.com
GENERAL MANAGER
Radha Vengadasalam radha@kasehdia.com
HEAD OF CONSULTING Azhar Jamal azhar@kasehdia.com
HEAD OF RESEARCH
Irfan Sungkar irfan@kasehdia.com
SPECIAL PROJECT MANAGER Jami Shaik jami@kasehdia.com
PUBLISHER
KASEHDIA SDN BHD
Over 100 reviews of restaurants, cafes, food courts, bakeries and confectioners Descriptive photographs Index and icons to find the exact place you want Maps for reference
31-2, Plaza Crystalville Jln. 22A/70A, Desa Sri Hartamas 50480 Kuala Lumpur, Malaysia Tel: +6 03 6203 1025 Fax: +6 03 6204 4072 Email: info@halaljournal.com
www.halaljournal.com www.kasehdia.com www.halalfoodguides.com www.worldhalalforum.org PARTNER EVENTS
PERMISSION & REPRINTS The Halal Journal is written and edited for a worldwide audience and is published bimonthly, except for special issues. Materials in The Halal Journal may not be reproduced in any form without the written permission of the publisher. SUBSCRIPTION INFO For subscription and circulation enquiries, address changes and request for copies, please call +6 03 6203 1025 or fax +6 03 6203 4072. To order back issues, please email us at info@kasehdia.com or log on to www.halaljournal.com. Printed in Malaysia by Art Printing Works Sdn. Bhd.
content.indd 6
Available now at a book store near you or email info@kasehdia.com
5/8/08 12:56:18 AM
AD HJ.indd 2
5/8/08 3:07:31 AM
Quietly Spoken
GlobalNEWS
F
or the first time, the World Halal Forum is taking a proactive role as opposed to the reactive and corrective role that it needed to assume in the last few years. Sustainable development has been around for some time but it is only now finding its way into the Global Halal Industry. As much of the framework that was not in place a few years ago has now been created and implemented, it is time for the industry to grow to its full potential. From the outset, the goal of development and the model used for it should be in line with sustainability. With the incorporation of Halal into the sustainable concept, it will also push the envelope and redefine what a sustainable business truly is in this current global scenario, with 1.8 billion people requiring Halal to be an integral part of any product or service. It is clear for all to see that the Halal concept has had a positive impact on the food sector and Islamic Finance or Halal Banking, which has also started to make a real impact on the economy and how transactions are completed. To see this concept really take root, we will need to see the inclusion of a social compliance in Halal to complement the already strong social contract that Halal suppliers have with the community. For this, all aspects of Halal need to be properly understood throughout the supply chain – at the design level, before all components are brought together and in business transactions – and rooted in the simple understanding that the Halal concept does not allow harmful elements to be introduced into the body. Thus, producers will need to expand their knowledge of what is truly Halal. This rings true for the impact on the society, economy, and the environment, which are the three building blocks of a hj sustainability model.
COMPILED BY ZAAHIRA MUHAMMAD
“I sell Halal meat, but not only for religious reasons. It is because people see Halal as safer and healthier as they drain almost all the blood from the chicken.” Ivor Caesar, Soulfood Shack Co-owner
UK
FINGER LICKIN’ BRITAIN
Given their ubiquity, you would think the market has reached saturation point. Not so, according to Zack Kollias, international director of Texas Chicken. For him, the UK offers one of the world’s biggest markets for the food. His US-based firm, with more than 1,600 branches worldwide, has just launched here. Known as Church’s in the States, Texas has aggressive plans for growth in the UK. So far, there are six branches, but by the end of April, Kollias hopes to increase this to 25; hitting 50 by the end of the year. “We’re coming to the UK because it’s a fantastic friedchicken market and there really is no strong number-two player to KFC [formerly Kentucky Fried Chicken],” says Kollias. “There’s probably more than 1,000 individual chicken shops aside from KFC so clearly the market is accepting the chicken product.” The spicy variety, marinated in black and cayenne peppers, is already selling four times better than the plainer, “original” counterpart. Both halal and spicy are also among the company’s biggest global sellers, Kollias points out. The increasing number of Halal fried chicken shops in the UK is testament to changing demographic and eating patterns. “The Muslim community here is growing,” says Enam Ali, chair of the Guild of Bangladeshi Restaurateurs. “Fried chicken is cheap - [people who eat it] are young, students, with limited pocket money.” Masood Khawaja, president of the Halal Food Authority, says, “A great percentage of third generation Muslims are not eating the original cuisine of their families - they want more takeaways, more convenience foods.” At Halal Southern Fried Chicken in London’s Brick Lane, they lace their hot wing batter with chilli powder, turmeric, cumin and coriander. Most customers are men in their 20s. The story is the same further down the road at Al-Badar Fried Chicken and Curry Restaurant, where their hot wings are coated in cinnamon, coriander and fresh and crushed chillies. Manager Amer Salim differentiates his product from the nearby KFC, which, he says, caters to another market. “In London’s Tower Hamlets, the Bangladeshi community like spicy with more and more chilli,” he says. “Fried chicken in KFC is not spicy.” Meanwhile, Shelly, 25, is enjoying chicken and chips with her brother and her 15-month-old son in a KFC in Hackney. “I just like the flavouring - spicy with herbs,” she says. Her 12-year-old brother Lerick says he loves the hot wings “because they’re spicy”. At Caribbean takeaway Soulfood Shack in London’s Islington, co-owner Ivor Caesar says he sells halal meat, but not just for religious reasons. “It’s because people see halal as safer and healthier as they drain all the blood from the chicken.” They are about to start selling spicy fried chicken along with their jerk and barbecue wings at their customers’ requests. |SOURCE: GUARDIAN.CO.UK, 26 MARCH 2008
8
THE HALAL JOURNAL | MAY/JUNE 2008
GlobalNews.indd 8
5/8/08 12:58:54 AM
ad size.indd 66
1/20/08 1:46:40 AM
GlobalNEWS ASIA
SAUDI BILLIONAIRE SHEIKH SALEH KAMEL IS NEW WORLD HALAL FORUM CHAIRMAN
The Secretariat of the World Halal Forum, the largest and most influential forum of its kind in the world, has announced the appointment of Dato’ Seri Sheikh Saleh Abdullah Kamel of Saudi Arabia as its new Chairman. Sheikh Saleh takes over the post from Khairy Jamaluddin, who has completed his twoyear term as Chairman of WHF (2006-2007). Sheikh Saleh is currently the Chairman of the Islamic Chamber of Commerce and Industry, an OIC organ representing business chambers from the 57 member countries, and is also Chairman of the General Council for Islamic Banks. Born in 1941 in Saudi Arabia, Sheikh Saleh is both a highly successful businessman and a passionate activist for Islamic DATO’ SERI SHEIKH SALEH ABDULLAH KAMEL economy. He is the founder and Chairman of the Dallah Al Baraka Group, a conglomerate with interests in banking, media, agriculture and services in more than 32 countries. Forbes magazine recently ranked Sheikh Saleh the 114th richest person in the world. Sheikh Kamel has established the Islamic Economics Research Centre at the King Abdulaziz University in Jeddah, Saudi Arabia and the Saleh Abdallah Kamel Centre for Islamic and Commercial Research & Studies at Al-Azhar University in Cairo, Egypt. The Dallah al Baraka Group also conducts the Al-Baraka Annual Seminar on Islamic Economics and Ramadan Annual Symposium and Seminar. It created the Islamic Economy Analytical Indices, The Quranic Verses Indexing and Classification Program, Islamic Economic Rules, The Computerized Encyclopedia of Economic Fatwas and programmes on Carrying Out Islamic Translations by Means of Modern Techniques, Positive Contributions in Establishing the Islamic Banks Information Center and Intra-Islamic Banks Research Coordination Centre. Taking over for the new term which commences in 2008, Sheikh Saleh will deliver his maiden keynote address at the opening of the WHF 2008 on May 12, 2008. The World Halal Forum Secretariat believes that the new World Halal Forum Chairman will take the event and its programmes to even higher levels on a global scale. Outgoing chairman Khairy has been thanked by the Secretariat for his pivotal role in creating awareness and appreciation of Halal through the World Halal Forum. In the two years, his leadership, based on clear directions and strong principles, has made the World Halal Forum a force to be reckoned with globally. WHF 2008 will be held on May 12 and 13, 2008, at the Kuala Lumpur Convention Centre, and will be hosted by the Halal Industry Development Corporation (HDC) and organised by KasehDia Sdn Bhd (KasehDia). The two-day event, themed “Sustainable Development Through Investment and Integration”, is expecting a massive turnout of some 1,000 participants, ranging from trade ministers, industry leaders, government representatives and international Halal certification bodies who will discuss and deliberate topics that stand to shape the growth and direction of the global Halal industry. Sectors that will be represented at the WHF are manufacturing, agriculture, logistics, finance, retail, investment, trading, research, training and certification. Part of the WHF programme is the WHF Industry Dialogues, organised in different countries throughout the year including Bosnia and Herzegovina, Brunei, Thailand, Indonesia, Turkey, Singapore, Australia, the Netherlands, South Africa and China. For further information on the World Halal Forum, log on to www.worldhalalforum.org or contact the WHF Secretariat at +603 6203 1025.
The deals, Dh25.7 million ($7 million) of which are still under negotiations, involved Philippine processed food and agricultural products, such as Filipino delicacies, desiccated coconut, coconut milk and fresh fruits and vegetables. ASIA
UAE TO HELP PHILIPPINES GROW ITS HALAL FOOD EXPORT
Manila will be sending marine-biology specialists to the UAE to inspect the country’s mangroves while Abu Dhabi will help the Philippines develop its Halal food and agricultural exports to the UAE which grew 39 per cent to Dh73.5 million ($20 million) last year. These are some of the salient points of the proposed areas of co-operation being considered by both countries, according to Philippine Agriculture Secretary Arthur Yap. During his visit Yap met with UAE Minister of Environment and Water Rashid Ahmed bin Fahad, who said the UAE would help the Philippines improve its Halal exports through food accreditation and capital grants. This according to Gil B Herico, trade representative at the Philippine Trade and Investment Centre °™ Dubai, who yesterday said that Minister Fahad noted that the Philippines, being free from the dreaded bird flu, would be a good source for Halal chicken. He added that the areas of co-operation between the UAE and the Philippines are in the Proposed Memorandum of Agreement (MoA) on Agricultural and Fisheries Cooperation that the two parties will sign in Manila no later than May. He said the deals, Dh25.7 million ($7 million) of which are still under negotiations, involved Philippine processed food and agricultural products, such as Filipino delicacies, desiccated coconut, coconut milk and fresh fruits and vegetables. |SOURCE: KHALEEJ TIMES, 2ND MARCH 2008
10 THE HALAL JOURNAL | MAY/JUNE 2008
GlobalNews.indd 10
5/8/08 12:59:26 AM
journey Words By JASPAL SINGH
State of Panorama
On a recent trip to South Africa, The Halal Journal finds itself on one of the most scenic routes ever...
I
n the grand scheme of things, you know you are experiencing something special when you see elephants and giraffes grazing by the side of a road. But then again this is Africa, where you simply cannot get by without seeing at least a Kudu deer, a Springbok or even the occasional zebra roaming about in the countryside. However, the wildlife is not the reason we have travelled from Kuala Lumpur to Johannesburg; we were there to cruise on the Panorama route – one of the most beautiful and popular drive destinations in South Africa. After a day’s rest and recovery from jet lag, we set out early from the city of Johannesburg in our rented Toyota. Shortly after negotiating the morning
rush hour, we managed to hit the city outskirts heading for the rugged mountain range of the Nothern Drakensberg. Undertaking the journey to the northeastern part of South Africa’s Great Escarpment, from exit 532 in the direction of Gaskorp, we were told that upon reaching this point we would see a stunning view, the likes of which we would have never seen before. At least, that is what our guide Johanes told us. “The Panorama Route is not only scenic but wonderful to drive on,” explained Johanes. However, he was quick to warn us that the long winding roads posed a danger to inexperienced drivers. “This is one of the more difficult journeys drivers here have to deal with and that is why inexperienced or drunk drivers should never be allowed on this road,” he said.
Soon after, we arrived at our first stop on our route – the sleepy town of Dullstroom, which is a quaint little place located on the R532. A well-known fishing destination for trout anglers owing to the many manmade dams in the area, the town is a popular tourist trap with its many restaurants and guesthouses. After a quick pit stop and a bite to eat we went on our way again, heading for the entry point of the Panorama Route, Blyde River Canyon. Sure enough, what we confronted was indeed fantastic. The third largest canyon in the world, Blyde River Canyon
100 THE HALAL JOURNAL LIVING | MAY/JUNE 2008
living.indd 100
5/8/08 1:48:41 AM
Travel Note The prices of diesel and petrol in South Africa are unregulated with the former possibly costing about ZAR6.59 a litre (USD0.87) and the latter around ZAR5.86 per litre, depending on the village or area.
Ironically, cars are relatively cheap in South Africa with prices on average starting from ZAR31000 to ZAR75000, for brand new cars. We were told that vehicle road tax for a 1988 1.3 Mitsubishi Colt (Johanes’ car,) is ZAR113 per annum. The price, however, is due to increase soon.
hosts the first stop, the Three Rondavels. A lookout point facing three huge rock spirals – with tops like the rounded roofs of huts – the Three Rondavels lookout dwarfs everything in its vicinity and is just metres away from a several thousand feet drop to the Blyde River, offering one of the best views on this scenic stretch. The lookout point takes its name from traditional African-style house called rondavels, because of the shape of its peaks. After snapping numerous photos, we continued on our journey until we reached Bourke’s Luck Potholes, a tourist stop named after the bizarre rock formations that formed due to the swirling waters of the Blyde and Treur rivers. Great for nature buffs, as it was a remarkable display of wildlife and geology of the canyon, Bourke’s Luck Potholes is also an ideal stop for stretching your legs and refreshing yourself before pressing on to the R534, the best part of the journey. The R534, which is in essence a giant loop, boasts the best stops
on the Panorama Route beginning with God’s Window with the kloofframed view of the Lowveld plains of the Blyde River Canyon. “This has always been my favourite spot,” said Johanes. “That’s why I always make it a point to stop here for people I ferry so that they can take photos.” After God’s Window, we went on towards the Pinnacle, a 30m tall quartzite rock with trees, in the middle of a small valley. “People say that the Pinnacle is something like God’s thumb,” Johanes joked. Whether or not there was any divine intervention in this natural wonder, the rock was breathtaking. After making the R534 loop, we took a turn to continue on the R532, which brought us to Lisbon Falls, an amazing 37m gushing waterfall. That marked the end of this magnificent stretch of road. It was a bittersweet ending – we had, after all, just experienced one of the best drives of our lives. Nevertheless, Johanes was quick to comfort us, “You can always come back.” A small voice in my head said, “I know I will…” hj THE HALAL JOURNAL LIVING | MAY/JUNE 2008 101
living.indd 101
5/8/08 1:49:20 AM
ZAAHIRA
browsing
COMPILED BY ZAAHIRA MUHAMMAD
Restaurant
SERI ANGKASA REVOLVING RESTAURANT With a 360-degree view of Kuala Lumpur from atop the Kuala Lumpur Tower, Seri Angkasa’s 9,172 square feet of lush space offers not only a spectacular revolving vista day or night, but equally great food to boot. The restaurant is encircled by glass panelling to ensure patrons get an unimpeded view of the city, while the comfortable modern interior offers large lounge chairs, wooden tables and a music area. Specialising in a wide selection of local as well as continental cuisine, Seri Angkasa’s more notable dine-in dishes include the Tropical Forest Reserve – a salad mix tossed with your favourite homemade dressing, sprinkled with chopped beef bacon and served with home-baked rolls. Another must-try is the South China Sea Triangle, an old-fashioned fish and chips dish that’s served with potato wedges, homemade coleslaw and tartar sauce. Popular dishes include fresh smoked salmon and oysters, lobster, steak and lemang, a traditional local dish of glutinous rice cooked in coconut milk. Besides the à la carte menu, Seri Angkasa also prepares daily buffets for lunch, dinner and high tea. Located 282 metres above ground level, this restaurant has certainly taken dining to new heights. TH02, MENARA KL, JALAN PUNCAK, OFF JALAN P. RAMLEE, 50250 KUALA LUMPUR
TEL: 603 - 2020 5055 OPENING HOURS: 12PM - 2.30PM, 6.30PM - 11PM DAILY
PRICE RANGE: RM15 - RM80
Web
www.shaykhabdalqadir.com Shaykhabdalqadir.com analyses current affairs and issues from the perspective of the school of Medina and is also filled with a number of absorbing articles from Muslim scholars. This contemporary source of Islamic understanding is particularly valuable at a time when subjective and often emotional interpretations of Islam take up space in any public attempt to understand the events of today. Browsers can gain access to newsletters and additional resources via online subscription, where no payment is required. The simple interface also makes it easy to navigate the website and view its contents. As a bonus for bookworms, books from Shaykh Abdal Qadir himself are featured on the website, as well as books from other Muslim scholars. So log on (with an open mind) – reading enthusiasts will be mesmerised by the immense knowledge to be gained. 102 THE HALAL JOURNAL LIVING | MAY/JUNE 2008
living.indd 102
5/8/08 1:49:49 AM
AD HJ.indd 2
5/7/08 4:22:54 PM
browsing
Books
Music
BOOK TITLE: LOST HISTORY: THE ENDURING LEGACY OF MUSLIM SCIENTISTS, THINKERS, AND ARTISTS
Author: Michael Hamilton Morgan Publisher: National Geographic Society (June 19th 2007) ISBN - 10: 1426200927 ISBN - 13: 978-1426200922
Written by an award-winning author and former diplomat familiar with the Muslim world, Lost History provides new insights not only into Islam’s historic achievements, but also into the ancient resentments that continue to fuel the bitter conflicts of today. In an era when the relationship between Islam and the West seems to be defined mainly by mistrust and misunderstanding, we often forget that for centuries, Muslim civilisation was the envy of the world. Michael Hamilton Morgan reveals how early Muslim advancements in science and culture laid the foundation for the European Renaissance, the Enlightenment, and modern Western society. As he records the Golden Ages of Islam, he introduces scholars such as Ibn Sina, Ibn Al-Haytham, Al-Tusi, Omar Khayyam, and Al-Khwarizmi – towering figures who revolutionised the disciplines of astronomy, mathematics, and medicine in their time and marked out the way for Copernicus, Newton, and many others. The author also reminds us that inspired leaders, from Muhammad to Suleiman the Magnificent and beyond, championed religious tolerance, encouraged intellectual inquiry and sponsored artistic, architectural and literary works that still astound us with their brilliance. Lost History finally awards pioneering leaders with the proper credit and respect they deserve. Morgan provides his readers with a subjective and often dramatised history of the scientific, philosophic and artistic achievements of Islamic civilisation and their influence on Western society. Instead of focusing only on the Arab Golden Age that included Persia and Spain between the years 632 and 1258, the book directs its attention to the many golden ages of Islamic societies, including Central Asia, Ottoman Turkey and Mughal India, up until the 18th century. That makes this book a must-read for those seeking to understand the important role that the early Muslim world played in influencing modern society.
BOOK TITLE: FREAKONOMICS: A ROGUE ECONOMIST EXPLORES THE HIDDEN SIDE OF EVERYTHING
Author: Steven D. Levitt and Stephen J. Dubner Publisher: William Morrow; Revised & Expanded, Roughcut edition (October 17, 2006) ISBN - 10: 0061234001 ISBN - 13: 978-0061234002
Freakonomics is an entertaining and intriguing book which covers a wide range of different information to disprove what it calls “common thought”. Author Steven D. Levitt is not your typical economist, but a scholar who studies the riddles behind everyday life — from cheating and crime, to sports and child rearing — and whose conclusions frequently turn conventional wisdom on its head. Through persuasive storytelling and cynical insight, Levitt and co-author Stephen J. Dubner show that economics is, at its roots, the study of incentives — how people get what they want or need, especially when others want or need the same thing. They illustrate their ideas by asking questions not usually asked by economists: Which, for example, is more dangerous, a gun or a swimming pool? What do schoolteachers and sumo wrestlers have in common? Why do drug dealers still live with their mothers? How much do parents really matter? And what kind of impact did the Roe v. Wade ruling on abortions have on violent crime? Through this unusual route, Levitt and Dubner set out to explore the hidden side of everything, from the inner workings of a crack gang to the truth about real estate agents, from the myths of campaign finance to the telltale marks of a cheating schoolteacher. In doing so, Freakonomics establishes this unconventional premise: If morality represents how we would like the world to work, then economics represents how it actually does work. Readers will end up being armed with enough riddles and stories to last a thousand cocktail parties. Beyond that however, Freakonomics will also literally help them to redefine the way they view the modern world.
Farid Ali (Mr. Gambus) Gambus prodigy Farid Ali is a trained guitarist who was exposed to the gambus as a child. The gambus is a pear-shaped string instrument that plays an important role in Malay folk music in Malaysia, specifically in a musical style called Zapin. As far as gambus advocates go, Farid is among the few originals, using the entire potential of the instrument to wind through endless arrangements – by turns funky, swinging and sublime – all in enjoyable tones. Having performed at many jazz festivals, concerts and tours, Farid has won numerous international awards from the Best Arranger Award 1988 at the Curacao International Song Festival, to the World Peace Award 1993 awarded by the president of the World Peace Movement of Japan, Toshio Hayama. With fantastic credentials like these, it is no doubt that his music is one of a kind. Being an Asian and a Muslim with a Western outlook in life has resulted in his yearning for a better understanding of his own culture – a desire that has ultimately resulted in this unique combination of traditional Malay and Western music. Farid has three albums under his belt – No Strings Attached, Back to Basics and Turning Point: Gambus Goes Jazz. His third album, Turning Point, is a personal journey that reflects his own life experiences. It is an album compiled with love and passion, and was produced to touch the lives and hearts of people. It is an album that begins with a ripple, and ends with a wave of awareness – truly a gift of the ages.
104 THE HALAL JOURNAL LIVING | MAY/JUNE 2008
living.indd 104
5/8/08 1:50:19 AM
148201-8487Oasis2_14-2_B5.ai 63.25 lpi 66.67 70.71 71.57째 14/2/08 18.43째 0.00째 45.00째 14/2/08 Process CyanProcess MagentaProcess YellowProcess Black
C
M
Y
CM
MY
CY
CMY
K
10:50:44 10:50:44PM PM
on display
COMPILED BY ZAAHIRA MUHAMMAD
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. Secret Garden Nusantara Body Wash Secret Garden Nusantara Body Wash was created by mixing the extracts of refreshing mint, pegaga herb and ginger from the lush tropical forests of the Nusantara to cleanse and rejuvenate skin. Indulge your senses with its fragrance of rosewood, pine and vanilla. This body wash comes in attractive packaging that is available at selected hypermarkets, supermarkets and pharmacies. Refill packs are also available.
Liasara Fine Food
Liasara Fine Food, Malaysia’s own manufacturer and distributor of highquality cuisine seeks to introduce to the world traditional and innovative delicacies together with healthy snacks, with an emphasis on authentic flavours. The Liasara Mushroom Crispies, for example, is prepared with vacuum-fried technology, where less oil is used and consumed. This retains the nutrients and natural flavour, giving consumers a healthier and tastier snack choice.
Marhaba Food Café Nova
Café Nova is a product of Super Coffeemix Manufacturing Ltd. Its ingredients include freeze-dried coffee, non-dairy creamer and sugar and boast a rich coffee flavour. It is Halal-certified by the Islamic Religious Council of Singapore. Like a cuppa?
Marhaba Food products are made with respect for both culture and tradition. Only the finest, 100 per Halal ingredients are combined to make a selection of foods that combine a modern experience with authentic tastes. Halal consumers would be able to pick Marhaba, which means “welcome”, and trust it completely, with no extensive and confusing ingredient checks needed. Marhaba offers a range of cookies, bars, chocolates and confectionary. Marhaba’s cookie range includes Twinz Bars, which comes in flavours including chocolate-strawberry and cherry yoghurt. Its chocolate range comes in three different flavours – Milk Chocolate, Dark Chocolate 72% and Dark Chocolate with Orange – and is made with the purest and finest Belgian chocolate. Confectionaries include Marhaba peppermint chewing gum, Marhaba spearmint chewing gum, Marhaba mint chewy and Marhaba fruit chewy. These sensational products by Marhaba are absolutely worth trying.
Golden Bird Food Industries
Golden Bird Food Industries offers a range of high-quality bouillon cubes at reasonable prices. There are six different flavours including fish, beef and chicken as well as Jameedco (used to prepare a meal in the traditional Jordanian way). These cubes can be used in the preparation of soups, rice and even pizzas.
Healin Products
Gamat Healin products resulted from intensive study by Malaysian and Japanese pharmacologists who discovered that gamat (sea cucumber) extract has healing properties. Healwell Pharmaceuticals Sdn Bhd introduced Gamat Healin into the market in 1997 as the first scientifically-proven traditional product of Malaysia. The company has been aggressively researching and developing newer products derived from gamat for beauty and nutritional remedies. Gamat Healin offers a range of skin and hair care products, health supplements and oral care products. Its health supplements range includes Gamat Emulsion, which is naturally rich in protein, minerals, Omega-3, mucopolysaccharide and vitamins that stimulate cell regeneration to enhance body well-being and accelerate external and internal wound healing. It also helps to restore energy, boost immunity and reduce cholesterol levels. Other products include Gamat Cream, which alleviates swelling and soothes blistered skin, itchiness, insect bites and joint and muscle pain.
106 THE HALAL JOURNAL LIVING | MAY/JUNE 2008
living.indd 106
5/8/08 1:52:45 AM
Halal Food in Focus Take advantage of the dedicated promotion for Halal products - Sign up for the Halal Service Package now!
Your Winning Choice in Asia 21. - 25.05.2008
IMPACT Exhibition Center, Bangkok, Thailand THAIFEX – World of food ASIA covering s,
r application o it ib h x e r fo ll a Last c ay! contact us tod
· Food & Beverage featuring HALAL & ORGANIC Food · Food Catering & Hospitality Services · Food Technology · Retail & Franchise
Please fax your reply to Ms Grace Tan at +65 6294 8403.
Halal Journal Jan/Feb 2008
We are interested in exhibiting; please send us a space proposal for sqm for our consideration. We are interested in the Halal Service Package; please send me more information. We are interested to visit; please send us visitor information closer to the event. Name (Mr/Ms)
Designation
Company
Address Email
Products Tel
Fax
Ms. Grace Tan Koelnmesse Pte Ltd Tel.: +65 6500 6711 Fax: +65 6294 8403 g.tan@koelnmesse.com.sg
snapshots
A Filipino presentation during SIHAS
Jam-packed: visitors crowds around booths at the Singapore FoodHotelAsia 2008
Cultured: International scene at the recent SIHAS
Insightful: Nestle Halal Centre chairman Othman Md Yusoff speaks about Halal Nestle
Opening ceremony of FoodHotelAsia 2008 in Singapore
Darabif managing director Wan Hazreek entertaining his guests at the recent soft launch
108 THE HALAL JOURNAL LIVING | MAY/JUNE 2008
living.indd 108
5/8/08 1:55:39 AM
TH GROUP OF COMPANIES TH PLANTATIONS BERHAD TH TRAVEL & SERVICES SDN BHD
LEMBAGA TABUNG HAJI
201 JALAN TUN RAZAK, PETI SURAT 11025, 50732 KUALA LUMPUR, MALAYSIA T+603 2054 2000 F: +603 2161 4450 E: TH-INFO@LTH.GOV.MY WWW.TABUNGHAJI.GOV.MY
AD HJ.indd 55
5/7/08 1:01:00 AM
snapshots ARMM delegation all set for a tour at Kart’s processing plant
A small token from JAKIM to the ARMM delegation
Swarmed by the media: Delegate being interviewed at SIHAS
Listening full-heartedly...
IHI Alliance chief executive officer Darhim Dali Hashim shares a light moment at the recent WHF launch
110 THE HALAL JOURNAL LIVING | MAY/JUNE 2008
living.indd 110
5/8/08 1:54:05 AM
11 – 13 November 2008 Abu Dhabi National Exhibition Centre United Arab Emirates
Your Gateway To The Global Halal Industry In The Middle East HALAL WORLD EXPO is dedicated to the global Halal industry, encompassing Food Production, Food Manufacture and Processing, Islamic Fashion and Textiles, Lifestyle Products, Pharmaceuticals and Islamic Finance. WHY EXHIBIT • The show provides you with a direct route to the very lucrative US$1.2 trillion Halal market. • The Halal worldwide cosmetic market is worth US$ 560 million and the UAE is about to capitalise on this. • Islamic Finance sector is worth US$ 500 million annually. • HALAL WORLD EXPO is the most comprehensive platform in the Middle East for global buyers and suppliers to meet.
DON’T
BOOK
MISS
YOUR S
TODAY
OUT
TAND
!
This event is your opportunity to conduct business within this rapidly expanding market. Platinum Sponsors:
Official Media Partner:
For more information, contact our sales team on: Tel: +971 4 407 2534, Fax: +971 4 336 5886, Email: halal@iirme.com, Web: www.halalworldexpo.com Quote Code: HJ08
www.halalworldexpo.com
Organised by:
parting words
Fiqh-based Approach to Harmonisation of Halal Standards
Whatever that can be said about the Halal industry and its potential and benefits has been said. Questions about Halal standards have been raised hand-in-hand with the development in the industry as it is an all-encompassing concept. It is given with such growth potential, the harmonisation of Halal standards is pivotal. The Halal Journal recently met up with Prof. Dr. Mohammad Hashim Kamali, a renowned writer and thinker in the area of Islamic law and jurisprudence. Having written many books and articles on Fiqh, he had recently completed his study on Fiqh-based approaches, which could help harmonise the Halal standards. Prof. Dr. Mohammad Hashim is currently a Professor of Law at the International Islamic University Malaysia (IIUM), where he has been teaching Islamic law and jurisprudence since 1985, and was kind and gracious to share with The Halal Journal his thoughts on the relations between Fiqh and Halal standards. WHAT ARE FACTORS HINDERING DEVELOPMENT OF HARMONISED HALAL STANDARDS? ARE THERE FUNDAMENTAL DIFFERENCES BETWEEN THE VARIOUS SCHOOLS OF THOUGHT, AND IF SO, HOW CAN WE ACHIEVE HARMONISATION IN SUCH CIRCUMSTANCES? The Halal and Haram originate for the most part in the Qur’an and Hadith, and there are no fundamental and insurmountable differences in this area even among the Fiqh schools. They do not differ on what is Haram; although they may differ on what is Halal or Mubah, or even recommendable (Mandub) and reprehensible (Makruh). In these subsidiary areas, there are different scholastic orientations bearing the influences of factors such as climate, soil characteristics, custom and culture, and even contagion and contact with other culture. HOW CAN A FIQH-BASED APPROACH OVERCOME THE PROBLEM OF DEVELOPING ONE GLOBAL HARMONISED HALAL STANDARD? There are admittedly no facile solutions. We need to first understand the direction we wish to take; and then equip the industry with the necessary tools to advance harmonisation of Halal standards. A prominent Shariah advisory forum is crucial, enhancing our capability to develop leadership and resolve areas where we differ and seek solutions to minimise the differences through sound research in the custom and culture of people, the scientific and juristic insights we can provide would all bear fruit and hopefully take us to a level where the industry is energised from different directions and sets its own agenda for harmonisation.
DO YOU THINK A FIQH-BASED APPROACH WILL SOLVE THIS PROBLEM WITH HARMONISING THE HALAL STANDARDS COMPLETELY, OR WILL IT PULL US BACK INTO ANOTHER GREY AREA? We cannot expect to eliminate all differences or the grey areas but we can aim to reduce them. Our effort at developing unified standards will be strengthened by the strong profit motive of the industry. Once there is a credible influence of unity, one may expect effective networking and harmonisation at a fairly rapid pace. WHAT ARE THE FIQH-BASED APPROACHES THAT CAN BE IMPLEMENTED OR APPLIED FOR HARMONISING HALAL STANDARDS WORLDWIDE? CAN YOU PLEASE ELABORATE ON IMPORTANT POINTS TO UNDERSTAND THIS FIQH-BASED APPROACH? I use Fiqh and Shariah as equivalent terms; but it is the Fiqh that is more open to juristic ijtihad and innovative thinking. A Fiqh-based approach needs to be taken towards harmonising the Halal standards simply because Halal and Haram are Shariah concepts, and if the idea is to develop uniformity and standardisation, then Fiqh and Shariah should be kept in focus. We need to give visibility to the Fiqh tradition on issues arising in the understanding of Halal and Haram. The Islamic credibility of standardisation must be sought through a Fiqh-based approach to addressing areas of concern, which is also supported by an informed scientific knowledge and market dynamics of the Halal industry.
DO YOU FORESEE A HARMONISED GLOBAL HALAL STANDARD? MOREOVER, DO YOU THINK THIS IS ACHIEVABLE OR IS THIS JUST A DREAM? Islam is a religion of unity and Tawhid, and it is the idea of unity in values that underlines our tradition, even though there is scope for diversity and reasoned disagreement. Although we have different schools of law and thoughts, they insist to be united in the essentials of Islam; and Halal and Haram come close to the heart of Islamic values. The Ummah is essentially receptive to standardised practices in Halal and Haram food, trading and finance. Without such a common denominator we would have no reason to talk of the Halal industry in the first place. Therefore, one can reasonably assume that harmonising the Halal standards is not a futile proposition but we will get there some point. hj
112 THE HALAL JOURNAL | MAY/JUNE 2008
P word.indd 112
5/8/08 1:57:00 AM
Traceability & Global Halal Industry The Global trend is demanding quality products and quality assurance, coupled with Fears of Global Food Shortage, issue of traceability is a key factor for those looking to take advantage of the growth that these convergent trends created. Nowhere is this more important than in the Halal Sector. “Traceability will become an important competency, for those in the Halal sector looking to penetrate sophisticated global markets, Whether you are a manufacturer, or related service provider” – Nordin Abdullah, Deputy Chairman, World Halal Forum KEY SEGMENTS • Traceability in Halal Industrial Zones • Impact of standards and destination market requirements • Understanding Global trends and positioning for change • Technology and its impact on traceablity • Overview of Halal issues • Logistics and supply chain • Increased role and availability of Islamic Investment Key Role Players • Dr. Irfan • Nordin Abdullah • Marco Tieman • Dr. Wan Sabri
WHO SHOULD ATTEND Senior management, decision makers and strategic advisors from • Halal Park/Industrial zone • Companies aiming to penetrate global market especially EU • Policy makers • Economic Planners • Islamic Financial Institutions • Food Manufactures • Logistics Supply Chain Companies
Cost Date Location
RM 980 June 23rd Mandarin Oreintial
In conjuction with World Halal Forum Supported by IHI Alliance and The Halal Journal For Sponsorship opportunities contact :info@kasehdia.com
AD CEO HJ.indd 55
5/7/08 3:37:50 AM
GlobalNEWS ASIA
MALAYSIA
The Brunei Government has tapped the services of a UK-based consultancy in drawing up the master plan for an agro-technology park that is deemed critical for the sultanate to create a niche in the global market for Halal products. The Ministry of Industry and Primary Resources’ Department of Agriculture recently drew up an agreement with SQW Consulting to assist the department in developing the Brunei Agro Technology Park. SQW Consulting will help the government conduct studies on the agro-technology park - and give recommendations for its establishment. Under the Brunei’s Halal brand initiative, the development of the agro-technology park will facilitate local and foreign businesses who want to build their products with the Brunei Halal Brand. The park will offer potential tenants the flexibility to choose from a range of property specifications. There will be choices of small to large sized property units including laboratory and office buildings. There is also the option for custom-made buildings to be developed on allocated areas. Local and foreign investors can look forward to using research and innovative technology applications that focuses on science-based activities such as agriculture, fisheries and forestry. The approach will involve the development of Brunei’s New Halal Science Centre, a research institute aiming to become a pivotal global ground for halal related activities. The Brunei Agro Technology Park aims to become a globally renowned park for halal food products as well as providing access for local and foreign businesses to exploit the knowledge and technology offered within the park. |SOURCE:THE BRUNEI TIMES, 27TH MARCH 2008
The Halal Industry Development Corporation (HDC) is expected to announce incentives for the development of halal parks and products during the World Halal Forum 2008 next month. The incentives, which are part of the Halal Industry Masterplan, aimed to attract investors to the halal parks as well as other potential sectors in a move to develop Malaysia as the global halal hub, said HDC general manager, industry development, Dr Nor Azman Ngah. “We are now finalising (details of the incentives) with the Economic Planning Unit. We are going to announce them during the forum,” he told reporters at a media briefing here yesterday.
BRUNEI TO CREATE NICHE IN GLOBAL MARKET FOR HALAL PRODUCTS
“For the traditional halal markets, there is enormous competition. Everyone wants to sell their products to the Arabs. All the big nonMuslim producing nations such as Australia and Brazil are already established in these markets,” Mohd Syukri Abdullah, MIHAS chief executive officer ASIA
LOCAL COMPANIES OVERLOOK OPPORTUNITIES IN MUSLIM MINORITY MARKETS
Manufacturers and service providers have overlooked the opportunities that exist in Muslim minority markets such as the European Union and the United States, MIHAS chief executive officer Mohd Syukri Abdullah said Tuesday. “For the traditional halal markets, there is enormous competition. Everyone wants to sell their products to the Arabs. All the big non-Muslim producing nations such as Australia and Brazil are already established in these markets,” he said. Mohd Syukri said European and American stores were full of imported products from not highly developed countries like Mexico, Guatemala, India, Pakistan, Iran, Romania, and Bulgaria. “Our manufacturers and service providers should take the advantage of the opportunities available,” he said. |SOURCE: BERNAMA, 15TH APRIL 2008
BECOME PART OF OUR COMMUNITY AND REGISTER AT
www.halaljournal.com Get exclusive Halal Journal Market Reports, Interviews, Events Reports and a whole host of contents from past issues of the magazine. Existing magazine subscribers get FREE online, so renew yours or sign up for one today! Email info@kasehdia.com.
INCENTIVES FOR HALAL PARKS
|SOURCE: THE EDGEDAILY.COM, 11TH APRIL 2008
UK
MEAT PRODUCTS MISLEADINGLY LABELLED
A third of meat products sold in supermarkets and shops were misleadingly labelled, a new survey has revealed. The food, which included mince, sausages and samosas, often illegally contained meats other than those the buyer would be expecting them to contain. This could have serious consequences for people trying to avoid some meats for dietary or religious reasons. Now Staffordshire County Council Trading Standards has issued guidance to businesses telling them how to stay within the law or face a fine of up to £20,000. Trading Standards Offices from throughout the West Midlands purchased over 100 samples of meat products. The samples were analysed by Public Analyst laboratories including Staffordshire Scientific Services, who checked that the species of meat named on the label was the only type of meat present. The analysis showed that 38 of the 109 samples were adulterated. Minced lamb was the most likely to be contaminated, with two thirds of the samples containing beef and or pork. Seven samples described as “Halal” were purchased as part of the survey. These were found to be just as likely to be contaminated as any other meat products, although no Halal products were found to contain pork. |SOURCE: THISISCHESHIRE.CO.UK, 14TH APRIL 2008
12 THE HALAL JOURNAL | MAY/JUNE 2008
GlobalNews.indd 12
5/8/08 12:59:41 AM
THE HALAL JOURNAL
OnlinePOLL
1. WOULD YOU USE A HALAL CERTIFIED COSMETIC IF IT WERE WIDELY AVAILABLE?
2. IN YOUR OPINION, DO ISLAMIC BANKS FULLY UNDERSTAND THE HALAL INDUSTRY?
Yes: 68.24% Not sure: 25.00%
No: 51.67%
Depends on the certification agency: 29.41%
No, I will never switch from my branded cosmetics: 2.35%
BRUNEI
NEW HALAL CERTIFICATION FOR RESTAURANTS
A new Halal certification for restaurants in the country is - to be implemented this year. This certification will identify which restaurants will be fit for Muslim consumption and which are not. It will also give authority to the Halal Food Control Section to close down a restaurant if needed. Previously, restaurants or any premises can only be ordered closed if they fail to maintain their cleanliness and hygiene standards. This was revealed yesterday by the Acting Assistant Head of the Halal Food Control Section following a surprise inspection on several branches of a restaurant suspected of selling Chinese dumplings or Tau’, as it is locally known, containing pork enzymes. Public complaints prompted the Halal Food Control Section to send 17 of them with meat fillings from various branches for laboratory testing on March 26. The Halal Food Control officials inspected all branches of this restaurant simultaneously and new samples of the dumplings were collected for another round of screening. Priced at $1.20 each, these so-called “special pau” are sold in all the branches located in the Brunei Muara, Tutong and Belait Districts. It is much bigger than the normal dumplings and contains larger chunks of beef. Even more worrying is the fact that it is also steamed and cooked together with other dumplings. Asked what actions will be taken on the restaurant, he added that the batches would be sent to the lab for more tests. If proven that the food contains the said enzymes, they will send a report to the Municipal Board for them to take action. As Brunei is a Muslim country, authorities have urged restaurants to adhere to religious regulations in the preparation of food that are sold. |SOURCE: BORNEO BULLETIN, 4TH APRIL 2008
Public complaints prompted the Halal Food Control Section to send 17 of them with meat fillings from various branches for laboratory testing on March 26. The Halal Food Control officials inspected all branches of this restaurant simultaneously and new samples of the dumplings were collected for another round of screening.
Yes: 23.33%
ASIA
THAILAND AIMING TO BE HUB FOR HALAL FOOD
Thailand will host the third Asia-Middle East Dialogue (AMED) in the next two years as part of efforts to turn the Kingdom into a regional hub for Halal food. AMED has already established a sub-working group on Halal food to set standards for products and production. Halal food is produced and certificated in accordance with Islamic principles for Muslims. Thailand aims to be a regional hub for halal food production and is bidding to create jobs for economic development in the restive South where the vast majority of the population is Muslim. The Thai government and private sector plan to develop a Halal industrial estate in Pattani. Thailand also proposed the two regions would explore possibilities to use food crops to produce alternative energy. “Food is now linked with energy security and sustainable development, a nexus we should explore further,” said Foreign Ministry deputy permanent secretary Chariyavat Santaputra, who led the Thai delegation. AMED, in its joint declaration, stressed the importance of undertaking concrete actions in various areas including logistics, infrastructure, small and medium enterprises, development, energy and food security. |SOURCE: NATIONALMULTIMEDIA.COM, 7TH APRIL 2008
THE HALAL JOURNAL | MAY/JUNE 2008 13
GlobalNews.indd 13
5/8/08 12:59:49 AM
GlobalNEWS MALAYSIA
LOCAL FARMERS ON A STUDY TOUR TO MALAYSIA
A delegation of local farmers will leave for Malaysia on May 4 on a six-day visit to learn more about the advanced technology and food quality assurance system of Malaysia’s agricultural sector and exchange experience with their counterparts. The 23-member group comprises representatives from the Vegetable Marketing Organisation, local farmers’ cooperative societies and vegetable wholesale merchant associations. They will visit Malaysia’s wholesale and retail markets, organic and conventional farms, agriculture research and experiment station as well as the 5th Malaysia International Halal Showcase. |SOURCE: PRESSZOOM.COM, 28TH APRIL 2008
UK
HALAL SAUSAGES LAUNCHED
ASIA
GOING BEYOND HALAL FOOD IN WESTERN CHINA
Most of the Malaysian exhibitors led by the Malay Chamber of Commerce Malaysia (DPMM) to the annual trade fair of China’s Shaanxi province are food manufacturers but potential business links can grow beyond breaking into the “Halal” food market there. Over the weekend, DPMM president Syed Ali Alattas and his team met officials from Shaanxi and the Muslim-dominated Xinjiang region on the sidelines of the 12th Investment and Trade Forum For Cooperation Between East and West China. “Malaysia is an important trading partner. In the first two months of this year, Shaanxi’s trade with Malaysia totalled US$58.7 million with imports growing by 135 per cent to US$17 million,” said Li Xuemei, the province’s commerce director-general. Malaysian imports into Shaanxi comprised mainly palm oil, natural rubber and non-ferrous metals. Malaysian investments in Shaanxi totalled nearly US$80 million in 37 projects. Xinjiang’s deputy director Xu Guan Bin said currently Malaysian investments were small but there was good potential for development because both sides shared a multi-culture background with big Muslim populations. He suggested that Malaysian companies set up “halal” production plants to process Xinjiang’s good quality beef and mutton for export to the Middle East and the central Asian countries bordering Xinjiang. “Xinjiang can provide the supplies and Malaysia can provide the management, marketing and technology. We have 17 exit points to export to other provinces in China and the international market,” he said. Malaysia’s biggest investor in Xinjiang is Sime Darby which set up a “Halal” product company there more than a year ago, Xu said. |SOURCE: BERNAMA, 7TH APRIL 2008
“Malaysia is an important trading partner. In the first two months of this year, Shaanxi’s trade with Malaysia totalled US$58.7 million with imports growing by 135 per cent to US$17 million,”
Foodservice to retail meals producer, Glendale Foods of Salford has introduced specially prepared Halal sausages in beef and chicken varieties, to its Supreme frozen sausage range. With around 1.6 million Halal consumers in the UK, around half British-born, this is a growing consumer market and certification is essential for gaining access; moreover, a high percentage of the British fast food scene is owned and operated by Muslims, who prefer to handle only Halal products. The company hopes this could mean considerable demand for its new Supreme Halal sausages from both sides of the counter, especially as six people in 10 eat sausages as part of a meal out-of-home. Glendale, formed recently through an amalgamation with sausagemaker Supreme Foods, recently invested in a new £200k sausage processing line and the additional varieties will be produced there, with suitable measures to prevent cross-contamination with traditional products and certification from meat suppliers indicating compliance with Halal standards. Halal Chicken sausages are available in fours and eights, again in a 4.54kg outer, and the company claimed both varieties have excellent holding qualities once cooked, either in a hot box or heated display cabinet.
Li Xuemei, the province’s commerce director-general
|SOURCE: MEATINFO.CO.UK, 15TH APRIL 2008
|SOURCE: DAILYCOLLEGIAN.COM, 1ST APRIL 2008
AMERICA
HALAL FOOD COMES TO UMASS
Like many students, Ozaire Awais, a University of Massachusetts senior in microbiology, looks forward to heading toward the dining common at the end of a long day for dinner and a chance to socialise with his friends, but unlike everyone else, he heads for the line in the back to receive a different entrée, halal food. “Halal food is like kosher food, it is a standard that food must satisfy before it can be consumed,” said Bilal Mirza, the vice president of the UMass Muslim Student Association. “Most food is halal, but food like alcohol and some meat, such as pork, can never be consumed and others, such as chicken and beef, must be sacrificed humanely in the name of God to be halal.” Ken Toong, executive director of dining services, said that halal food was made possible by requests from Muslims to have food catered to their needs. “We want them [the students] to take the lead,” he said and said he wants students to take the initiative in shaping their dining experience. Toong said dining services makes it a priority to be a comprehensive provider, and students said they appreciated their interest. Students reminisce about their eating habits before halal food became available. “I would go into the dining commons unsure of what I was going to eat,” said Hasan Syed, junior in biochemistry and molecular biology, “I would sometimes leave just as hungry as I was when I walked in.” “Before I would have to eat unhealthy foods,” said Ozaire, “I always ate pizza and would have difficulty compensating for protein in my diet, but now I feel a lot healthier and I feel more active and alert.” “We have 15 different types of global cuisine at any time,” said Toong, “from Italian and Spanish to Japanese and African.” Toong has plans to strengthen halal food dining and get more people interested in Halal food by adding more global cuisine from different Islamic cultures, such as Persian and South Asian cuisine.
14 THE HALAL JOURNAL | MAY/JUNE 2008
GlobalNews.indd 14
5/8/08 1:00:14 AM
GlobalNEWS ASIA
HALAL MEAT TO INCREASE MARKETS
SHARK Lake Meatworks has some new shareholders and is set to become a Halal operation within a month to match manufacturer’s growing demand for halal meat, according to partowner of the operation, John Reid. “Every manufacturer of small goods and pies and that sort of thing requires halal meat,” Mr Reid said. “Moving to halal meat will increase the markets that we are able to sell to.” To be considered halal, meat must be derived from an animal that has been killed in a particular way by a Muslim. “Long term we are hoping to increase the kill of sheep and lambs by 2,500 a week and build our beef kill up to 100 a week.” Becoming a halal operation isn’t anticipated to affect the cost or supply of meat locally, although Mr Reid said that it means an end to the butchering of pigs at the facility. “We have already stopped killing pigs but the number of pigs that came through was very minimal – only about eight a week. “We are very happy about the changes and are moving on to bigger and better things.” |SOURCE: ESPERANCE.YOURGUIDE.COM.AU, 4TH APRIL 2008
“Every manufacturer of small goods and pies and that sort of thing requires halal meat. Moving to halal meat will increase the markets that we are able to sell to. Long term we are hoping to increase the kill of sheep and lambs by 2,500 a week and build our beef kill up to 100 a week.” Mr Reid, SHARK Lake Meatworks ASIA
DPMM SENDS MISSION TO CHINA TO PROMOTE HALAL PRODUCTS
A Malaysian business delegation’s visit to Xi’an, Shaanxi, in China from this weekend is expected to open doors to local businessmen to penetrate the huge halal products market in that country. The 100-strong mission, to be headed by Malaysian Malay Chamber of Commerce (DPMM) president Syed Ali Alattas, will be in that region for five days from Saturday and it will, among others, organise a business forum for both Malaysian and Chinese businessmen. Syed Ali expressed confidence Tuesday that Malaysia’s halal products have good potential in China in view of the 50,000 Muslims in Xi’an. The Malaysia delegation will also use the forum to explore the possibility of suppliers of raw materials in China being a source for Malaysia’s halal products, he said at a media briefing here on the trade mission. “Through such an arrangement, Malaysia can re-process the raw materials from China into products for re-export back to China under Malaysian brands,” he added. According to Syed Ali, the mission’s main objective is to establish strategic networking with counterparts at the global level, exhibit Malaysia’s halal products, discover new business partners, and help strengthen the trade ties between the two countries. The mission is also to provide exposure to small and medium entrepreneurs in Malaysia to the business climate in China, he added. |SOURCE: BERNAMA, 1ST APRIL 2008
ASIA
BIOTECH COMPANY EYES HALAL HUB IN BRUNEI
Against the backdrop of Brunei’s Halal brand initiative and the US$200 billion Halal market, the country now seems to be venturing into the bio-industry with the introduction of technology that may revolutionise medical care, with special considerations to Halal regulations. These systems solve issues usually experienced through conventional methods as it eliminates pain and risks of infection with rare instances of side effects. They are also cost competitive and do not require the help of a healthcare professional. The company has agents in the US, Europe, China, Indonesia and have just recently concluded agreements with Indonesia. The current biggest issue the company is now embarking on is the manufacturing of drugs for Muslim countries. “Manufacturing drugs for Muslim countries are different from other countries, so agents are required to manufacture these drugs and devices,” said Mr Matsumura, adding that the products also require local Halal accreditation. |SOURCE: BRUNEI BULLETIN, 4TH APRIL 2008
Calendar of events 7 – 11TH MAY 2008 MALAYSIA INTERNATIONAL HALAL SHOWCASE (MIHAS 2008) Matrade Exhibition & Convention Centre Kuala Lumpur, Malaysia Malaysia External Trade Development Corporation, Matrade Tel: +603 6203 4433 Fax: +603 6203 4422 E-mail: enquiry@halal.org.my www.halal.org.my 12-13TH MAY 2008 WORLD HALAL FORUM (WHF 2008) Kuala Lumpur Convention Centre (KLCC) Kuala Lumpur, Malaysia KasehDia Sdn Bhd Tel: +603 6203 1025 Fax: +603 6203 4072 E-mail: info@worldhalalforum.org www.worldhalalforum.org 18 – 20TH MAY 2008 BEAUTYWORLD MIDDLE EAST Dubai International Convention & Exhibition Centre Dubai, UAE Epoc Messe Frankfurt GmbH Tel: +971 4 33 80 102 Fax: +971 4 33 80 041 www.gulfbeautyexpo.com 21 – 25TH MAY 2008 THAIFEX – WORLD FOOD ASIA 2008 IMPACT Challenger Bangkok, Thailand Koelnmesse Pte Ltd Tel: +65 63967180 Fax: +65 62948403 E-mail: info@koelnmesse.com.sg www.worldoffoodasia.com 18 -21 JUNE 2008 TAIPEI INTERNATIONAL FOOD 2008 Nangang Exhibition Hall Taipei, Taiwan Taiwan External Trade Development Council (TAITRA) Tel: 886-2-2725-5200 ext. 2615, 2204 Fax: 886-2-2725-1959 E-mail: foodtaipei@taitra.org.tw www.foodtaipei.com TBC - JUNE 2008 WORLD HALAL FORUM INDUSTRY DIALOGUE - BRAZIL Sao Paulo, Brazil KasehDia Sdn Bhd Tel: +603 6203 1025 Fax: +603 6203 4072 E-mail: info@worldhalalforum.org www.worldhalalforum.org TBC - JUNE 2008 WORLD HALAL FORUM INDUSTRY DIALOGUE - AUSTRALIA Sydney, Australia KasehDia Sdn Bhd Tel: +603 6203 1025 Fax: +603 6203 4072 E-mail: info@worldhalalforum.org www.worldhalalforum.org 29-30TH JULY 2008 HJ PARTNER EVENT 3RD ISLAMIC BANKING, ACCOUNTING AND FINANCE CONFERENCE (IBAF) Kuala Lumpur, Malaysia Tel: +606 798 8401 Fax: +606 798 8198 E-mail: ibaf2008@gmail.com www.usim.edu.my/ibaf2008 11- 13 NOV 2008 HJ PARTNER EVENT HALAL WORLD EXPO - ABU DHABI IIR Middle East PO Box 28943 Dubai, UAE Tel: +971 4 3365161 Fax: +971 4 336 5886 Email : mike.hughes@iirme.com www.halalworldexpo.com
16 THE HALAL JOURNAL | MAY/JUNE 2008
GlobalNews.indd 16
5/8/08 1:00:35 AM
event highlights
Third World Halal Forum THE LAST 12 MONTHS LEADING UP TO WHF 2008
T
he World Halal Forum (WHF) is back for its third edition of gathering of scholars, industry experts, major Halal industry movers and shakers who will discuss and deliberate on issues under the theme ‘Sustainable Development Through Investment and Integration’; all of which had been the hard work and result of 12 months worth of continued activities. Since WHF 2007 in May 2007, the WHF secretariat did not just stop when WHF 2007 ended, they immediately went to work, investigating and analysing trends, identifying issues and seeking solutions to improve the Halal industry at a global level. The World Halal Forum-Industry Dialogue (WHF-ID) bandwagon made a stop in Johannesburg, South Africa on July 17th 2007. The half-day dialogue focused on key areas crucial in development of the Halal industry in South Africa including development
of local markets and identifying opportunities for growth; South Africa’s regional role, leveraging from South Africa Halal certification bodies, roles of Halal in agriculture and highlighting of global trends effecting South Africa. One of the many highlights of the day was a surprise visit from South Africa’s Director of Department of Trade and Industry, Madam Hester Obisi, who expressed gratitude that Malaysia is taking bold steps in championing the cause of Halal internationally and she reaffirmed South Africa government’s support in developing its local Halal industry. South Africa has been actively hosting events
focusing on Halal as a feasible business concept. With business population of roughly one million, South Africa is playing a major role in developing Halal industry in Africa and is constantly seen as access to the massive African market. With in excess of 500 million Muslims in the whole of Africa, the WHF-ID in Johannesburg provided good sign that key industry players are vigorously looking for ways to harmonise and once this occur, Halal will be a huge success in Africa. Other than the World Halal Forum-Industry Dialogue (WHF-ID), initiatives such as The Halal Journal Workshops and Briefings such as the Brief on Malaysia’s Global Halal
18 THE HALAL JOURNAL | MAY/JUNE 2008
EH.indd 18
5/8/08 1:01:52 AM
event highlights
Initiatives took place on the 8th of August 2007 at the Equatorial Hotel, Kuala Lumpur, Malaysia The inaugural WHF-ID in Ning Xia autonomous region in China was well received with over 150 attendees from both China and Malaysia for the half-day session. Malaysian delegates, comprising key people from the Halal Industry Development Corporation (HDC), took this opportunity to address issues and concerns relating to the smooth collaborations with their Chinese counterparts. Among the members of the Malaysian delegation includes Dato’ Jamil Bidin, CEO of HDC, Darhim Dali Hashim, HDC’s then Director of Capacity Building and Zanalli Hashim from the Malaysia International Halal Showcase (MIHAS). Their Chinese counterparts included Tongsheng, member of Party Standing Committee, vice governor and director of the organising committee on Investment & Trade Fair; Madam Hong Meixiang, Chairman of the Chine People’s Political Consultative Conference (CPPCC) of Yinchuan; Mr Hei Zhihu, deputy secretary general of the People’s Government of Ningxia Hui Autonomous region; Wang Yongliang from the Division Ethnic History Editorial Office; Nongxia People’s Press and
that fell on the same day. End of year 2007 saw the successful staging of three World Halal Forum- Industry Dialogues (WHF-ID) in Turkey, Bosnia-Herzegovina and Singapore where it achieved its set objectives of creating understanding of different areas within the Halal industry and delving into the heart of issues faced by industry stakeholders. WHF-ID Turkey was held on 1st November 2007 at the Crown Plaza Hotel in Istanbul in conjunction with the 15th International Food, Beverage, Food Ingredients and Food Processing Exhibition or better known as GIDA 2008. Key individuals from relevant areas of interest filled the half-day interactive and moderated dialogue, focusing on issues relating to the creation of a global Halal hub, Halal
moved on to Sarajevo, BosniaHerzegovina. WHF-ID Bosnia were held on 7th November 2007 at Holiday Inn Sarajevo, WHF-ID Bosnia is a result of a working partnership with the Agency for Halal Quality Certification, Bosnia. The Agency, being the local partner of WHF-ID, made extra efforts to prepare promotional items such as programme booklets, buntings and badges. A full-page advertisement in full colour was placed in Bosnia’s leading newspaper, Avaz Publication, on 5th November 2007 to promote the event to local stakeholders. A live interview on the national radio network was also conducted the day before the event. With this extra awareness campaign, WHF-ID Bosnia saw attendees from Bosnia, France, Slovenia, and Croatia, commanding at a
The inaugural WHF-ID in Ning Xia autonomous region in China was well received with over 150 attendees from both China and Malaysia for the halfday session. Malaysia and China have long been working on building trade relations in the Halal industry to benefit from each other’s progressing economies. Zhang Hong’en, chairman of the board of Ningxia Jinfulai Mutton Industry Co. Ltd. Malaysia and China have long been working on building trade relations in the Halal industry to benefit from each other’s progressing economies. In conjunction with the World of Muslim 2007 Exhibition held on the 7th – 9th September 2007 at Impact Convention Centre, Muang Thong Thani, Bangkok, a Halal Journal Workshop was held in Bangkok, Thailand on September 9th 2007 shortly after the WHF-ID in Ningxia, China.
W
HF-ID Jakarta, Indonesia held on the 29th October 2007 at the Gran Melia Jakarta Hotel was quite a success aside from the fact that VIP’s from Malaysia were unable to attend this WHF-ID due to the launch of the Eastern Economic Corridor
standards, and Halal training in Turkey, and the growth of other Muslim markets such as South East Asia. The dialogue commanded a good 110 participants, with the floor well represented mostly by Turkish industry leaders and policy-makers from many government sectors who understands the current situation in Turkey. Many questions and issues were raised, with most directed towards the Turkish Standards Institution concerning the ongoing developments of the Turkish Halal Food Standards. WHF-ID bandwagon then
healthy attendance of 106. Malaysian representatives from MATRADE Budapest, Embassy of Malaysia in Bosnia as well as WHF Secretariat were present. The creation of a global Halal hub, Halal certification, the role and importance of Food Safety Agency and consumer health protection in Bosnia, taking advantage of the global Halal market, and prospects for collaboration with OIC, CEFTA, and Gulf countries were covered. Presentations on investment opportunities in Bosnia, the current state
THE HALAL JOURNAL | MAY/JUNE 2008
EH.indd 19
19
5/8/08 1:02:04 AM
event highlights
of Halal in the EU and west Balkan countries, and a case study on the trade expansion of a Halal-certified company were also presented. Mr. Amir Sakiæ, the Director of the Agency for Halal Quality Certification Bosnia, closed WHF- ID Bosnia with a presentation of results and initiatives from the Industry Dialogue. The event was yet another success for the WHF Secretariat, since the response to the dialogue was of good both in quality and quantity. WHF-ID Singapore, held at Raffles Convention Centre on 13th December 2007, was next on the calendar. This half-day event was another success for the WHF Secretariat with moderated dialogues, including presentations and deliberations from several speakers of different backgrounds and expertise as well as networking opportunities. The speakers shared their observations and deliberations, focusing on current global and regional Halal market, sharing experience, specific challenges, and branding and worldwide initiatives in the Halal industry. Gaining new insights on the current state of the wide-reaching Halal market, the session proceeded with a round of question and answers, presided by a panel of industry experts. With such great response and feedback from 30 participants, the WHF-ID bandwagon left Singapore, heading home with new ideas, insights, and more current issues on the global Halal industry, which will be brought up and addressed at the World Halal Forum 2008.
A
t the end of year 2007, a workshop was conducted for Prima-Agri with the purpose to educate and enlighten Prima Staff, vendors, suppliers, potential clients about the concept of Halal in related industry. The WHF-ID troops yet again went on another journey out west with the designated objective of creating understanding of different areas within the Halal industry, and investigating the heart of issues faced by industry stakeholders. As the first WHF-ID in 2008, the bandwagon landed in the Netherlands, where the industry dialogue was held on 13th February 2008 at The Hague, to focus on Netherlands being Malaysia’s gateway for Halal trade into Europe. With insightful presentations and networking opportunities, the WHF-ID Netherlands was certainly filled with passionate yet well-intentioned deliberations by major individuals within areas of interest. One of the many highlights of the day was the presence of the Vice Mayor of the City of The Hague, Henk Kool. He expressed gratitude that Malaysia is taking bold steps in championing the cause of Halal internationally, and reiterated the
The WHF-ID troops yet again went on another journey out west with the designated objective of creating understanding of different areas within the Halal industry, and investigating the heart of issues faced by industry stakeholders. Netherlands’ supports developing the local Halal industry. The floor was opened for questions and dialogue session quickly got underway. One of the major areas discussed was many investment in logistics infrastructure in the Netherlands especially in the Halal-specific cold chain services. Unfortunately, a lot of food manufacturers and retailers are not aware such Halal-dedicated services being available, even though they cost the same as other logistic services. It is apparent that there is a need for increased awareness of Halal in Europe for the Muslims, and even more so for manufacturers. Much useful knowledge was derived from the dialogue in further understanding issues in the Netherlands; and participants gained insights on the prospects of developing the Halal industry in the Netherlands, which will be a springboard into European countries. A high-ranking delegation from the Autonomous Region in Muslim Mindanao (ARMM) and Bangsamoro Development Authority (BDA) of the Philippines came to Kuala Lumpur, Malaysia, for a Halal Working Visit on Feb 2008. Sponsored by the Japanese International Cooperation Agency (JICA), and organised by KasehDia Sdn Bhd, the working visit began on the 10th – 14th February 2008. The visit focus was to
contribute to the Halal industry development in Mindanao; with the intention of drawing knowledge of Malaysia’s development in local Halal sector. To fulfill its specific set objectives, this four-day working visit was filled with pre-arranged meetings with major government agencies, and private sectors, involved in the development of the Halal industry in Malaysia; making its first stop at none other than the Halal Industry Development Corporation (HDC). Amongst the places visited and meetings held for the delegation throughout the first two days were with the Malaysian Islamic Chamber of Commerce (MICC), Malaysia Economic Planning Unit (EPU), Department of Standards Malaysia (DSM), and the Department of Islamic Development Malaysia (JAKIM). Finally, the third World Halal Forum , WHF 2008 is here, and the WHF Secretariat is breathed a short sigh of relief after the globe trotting experience, where they faced, at some destinations intense discussions and deliberations on Halal-related issues. Although it had been a hectic 12 months for the WHF team, it had, nevertheless been a very knowledgeable, insightful and rewarding experience. Issues gathered will be deliberated and shared with the delegates and participants at the WHF 2008. WHF 2008 Secretariat welcomes hj everyone to WHF 2008.
20 THE HALAL JOURNAL | MAY/JUNE 2008
EH.indd 20
5/8/08 1:02:19 AM
AD HJ.indd 2
5/7/08 9:03:04 PM
event highlights
Food Traceability: The Key To Global Market Access APRIL 1-APRIL 2 2008
The Global Food Traceability Forum (GFTF), held on 1st – 2nd April 2008, is a new and unique membership organisation dedicated to the issues concerning traceability in the food supply chain. Traceability is indeed for an industry such as the Halal industry. GFTF has been established to meet the growing demand for a universal channel of communication for stakeholders – large and small – who are dealing with this vital subject and its impact in world markets. Held in Sunway Resort, Kuala Lumpur, Malaysia, the two-day forum brought together speakers of an unrivalled level of traceability knowledge and expertise covering technical, legislative, research and industry issues. The conference had a fair balance of industry players and governmental representatives who gain insights on traceability from seven of the EU’s major traceability projects, leading academics and food industry consultants. The forum welcomed 100 participants and guests, whereby 20 per cent were international participants. The scope of the programme gave fruitful insight to the participants of the forum. The first day of the forum saw deliberations on traceability – a critical ingredient in the food supply chain, highlighting the pivotal role of traceability to the global food supply chain and ways traceability can add value to products. The first day of the forum ended with presentations questioning traceability on whether it is a technical barrier to trade.
The second day was filled with presentations on Halal, scientific innovations and a special highlight on combating bio-terrorism and food fraud, beginning with discussions on Halal traceability – a route to opening new markets. This session highlighted concerns of Halal meat products amongst Muslim consumers in Malaysia. The topic of Halal was then complemented with presentations on the European programme with its new science in traceability. There was also a session in combating bio-terrorism and food fraud where the speakers deliberated on how the bio-terrorism act affects the food and beverage industry and a presentation on preventing food fraud and counterfeiting as well. This forum is indeed important and very much welcomed for an industry such as the Halal industry, as well as for the food chain as it identifies and delivers information on all aspects of traceability relating
to food and the food supply chain. This Global Food Traceability Forum also provide a platform for informed debate on issues very much related to trade, legislation, consumers, regulatory and standardisation issues. The two-day forum ended with a laidback dialogue session between all the speakers and the participants, seeing many participants still lingering around at the corridors networking, or exchanging insights and opinions among each other. It was indeed a fruitful forum for both the organisers and the participants. hj
FHA2008 BREAKS RECORDS
Asia’s largest international food and hospitality trade show saw 37,000 trade visitors over 4 days FHA2008 (Food&HotelAsia2008) ended today after a highly successful run, reaffirming its reputation as a premier trade event for the region’s food and hospitality industries. Organised by Singapore Exhibition Services, FHA2008 was officially opened by S. Iswaran, Singapore’s Senior Minister of State for Trade and Industry. The show ran from 22nd to 25th April 2008. The event broke records on several fronts – it occupied seven halls (75,000 square metres) and hosted 2,627 exhibiting companies from 70 participating countries – proof that the show is the choice sourcing platform for the region. FHA2008 attracted about 37,000 trade visitors from almost a hundred countries, of which 37 per cent were from overseas. Apart from the congregation of government dignitaries and key buyers from hotel groups, hospitality and entertainment establishments also made use of the opportunity to source for supplies and establish important business contacts. A total of 50 group delegations, which included those from China, Hong Kong, India, Malaysia, the Philippines, Singapore and Taiwan, visited the show. “We are very pleased with the turnout of exhibitors, buyers and visitors,” said Stephen Tan, Chief Executive of Singapore Exhibition Services. “This certainly reflects the
primary status of the show with the industry in the region. Our exhibitors have always seen the value of their presence at FHA and have maintained high visibility this time around. “From feedback given by exhibitors, they are very pleased with the quality of visitors at this show. Many of them have found valuable contacts and interested buyers. Negotiations will naturally follow on from this exhibition and contracts confirmed in the next few months,” he said. Tan continued, “While FHA as a show has given a good performance, the six specialised events of the exhibition still have great potential as Asia’s food and hospitality markets continue to demonstrate strong growth,” he said. The six specialised events of FHA are FoodAsia, Wine&SpiritsAsia, Bakery&Pastry, HotelAsia, HospitalityTechnology
and HospitalityStyleAsia. Topical issues such as food safety, Halal certification, hospitality finance and technology trends were brought up at several conferences and seminars held within FHA. Participants included food producers and manufacturers, hotel general managers, executive chefs, and other professionals in the food, beverage and hospitality sectors. Competition of Skills An integral part of FHA was the culinary competitions that serve as a skills-sharing platform, bringing together chefs, baristas, waiters and bartenders. Competitions such as the FHA2008 Culinary Challenge, FHA2008 Imperial Challenge, the Asian Pastry Cup 2008, the Wine&SpiritsAsia Challenge 2008 and the inaugural Asia Barista Championship, offered much action and buzz on the show floor. FHA2010 will return from April 20th to 23rd, 2010. hj
22 THE HALAL JOURNAL | MAY/JUNE 2008
EH.indd 22
5/8/08 1:02:47 AM
AD HJ.indd 55
5/5/08 3:04:12 AM
event highlights
EVENT: ISLAMIC VENTURE CAPITAL & PRIVATE EQUITY CONFERENCE 2008 DATE: 7 – 8 MAY 2008 VENUE: SHANGRI-LA HOTEL, KUALA LUMPUR, MALAYSIA
FOSTERING ALTERNATIVE INVESTMENT: EMERGING TRENDS AND KEY OPPORTUNITIES The Islamic Venture Capital and Private Equity Conference, themed “Fostering Alternative Investment: Emerging Trends and Key Opportunities”, is the first of its kind to be organised for professionals in the venture capital and private equity industry. Jointly organised by the Islamic Banking and Finance Institute Malaysia (IBFIM) and the Malaysian Venture Capital and Private Equity Association (MVCA), this conference will be held at The ShangriLa Hotel, Kuala Lumpur on 7th and 8th May, 2008. The venture capital industry in this region and across the globe has been growing, with the number of committed funds increasing to USD10 billion in the first half of 2006 from USD7 billion over the same period in 2005. It has become apparent that most Asian countries have followed the West in accepting venture capital as a valid alternative vehicle into the mainstream capital market products of debt, equity and derivatives instruments. Not only does underlying economic growth continue to accelerate, but businesses
and management teams across the region are starting to recognise the benefits of seeking capital from private equity investors who can add value to their growth strategies and to their positioning in the capital markets. In spite of the phenomenal growth, however, Islamic venture capital remained the least developed section as compared to mainstream Shariah-compliant investment. It is therefore important to identify key ingredients that would spur the interest of all stakeholders to further boost Islamic venture capital not only in this region but also in its natural market in the Middle East. Amongst others, the regulatory framework,
infrastructure support, IT and human capital development need to be fully developed in order to lift Islamic venture capital into an essential component of Islamic Finance. This two-day conference provides opportunities for high-growth companies to participate in the venture capital process as investors meet with companies seeking capital. It is also aimed at providing participants with a platform for discussing issues, exchanging ideas and experiences and promoting a better understanding of Islamic venture capital. For more information or to register online, log on to www.islamicvc. hj com or contact +603 2031 1010.
EVENT: 3RD ISLAMIC BANKING ACCOUNTING AND FINANCE (IBAF) CONFERENCE 2008 DATE: 29 - 30 JULY 2008 VENUE: LEGEND HOTEL, KUALA LUMPUR
FINANCIAL INTELLIGENCE IN WEALTH MANAGEMENT: ISLAM HADHARI’S PERSPECTIVE Islamic banking has been in operation for more than 20 years in the Islamic world from the Middle East to Asia and recently, in the European region. The worldwide forecast is that the funds will reach approximately USD1 trillion by the year 2013. Presently, Islamic-compliant deposits and funds amount to USD300 billion. The Islamic banking and finance industry is growing at more than 10 per cent per year since its first operations in 1984. Facilities provided by related sectors such as the capital and money market, financial planning, reporting, accounting and regulating institutions have further promoted the growth of the Islamic financial industry globally and in Malaysia. Prime Minister of Malaysia, Dato’ Seri Abdullah Hj Ahmad Badawi aspires for Malaysia to be a Global Halal Hub (GHH), offering Halal products and services to the two billion Muslims around the world. The establishment of the Halal Industry Development Corporation (HDC) in May 2007 is one of the efforts undertaken to realise this. Islamic finance, specifically the capital market, money market, banking, risk management and financial planning will be the core of the Global Halal Hub’s operation. In order
for the practice of Islamic finance to be conducted efficiently and according to stipulated Shariah requirements, Islamic accounting standards and Shariah audit practices are equally important, and these topics will be discussed at the conference. Amongst others, issues such as Wealth Creation in Islam, Islamic Economics and Finance in a Dual Economy, Islamic Micro Finance, Islamic Ethical Finance, Islamic Financial Reporting, Corporate Taxation and Zakat, Taxation policy in Islamic banking, Regulations and Standards, and Waqf Funds Management will be discussed by the academics and practitioners involved in the Islamic Banking and Finance industry. Apart from academic paper presentations, a training workshop
will be held under the leadership of Dr Daud Bakar, the president and CEO of the International Institute of Islamic Finance (IIIF) Inc. (BVI) and Amanie Business Solutions Sdn Bhd. The topic will be IslamicStructured Products and Derivatives. On the second day of the conference, a doctoral colloquium will be held to provide an avenue for postgraduate students to present their Master’s or PhD thesis findings, frameworks or proposal. The session will be chaired by the academic experts in Islamic banking and finance. For more information, log on to www.usim.edu.my/ibaf2008, call the Faculty of Economics and Muamalat of the University of Sains Islam Malaysia (USIM) at +606 798 8401 or send an email hj to ibaf2008@gmail.com.
24 THE HALAL JOURNAL | MAY/JUNE 2008
EH.indd 24
5/8/08 1:03:03 AM
WORLD ISLAMIC SERVICES FORUM 26 & 27 NOVEMBER 2008 KUALA LUMPUR, MALAYSIA
As Muslim economies develop and move up the value chain services that complement industrial, social, and economic development in-line with the Shariah will be the next engine for growth. For the first time, the World Islamic Services Forum will bring together the developments in this under explored sector and will be discussing: • Islamic Finance • Zakat • Takaful • Waqf • Legal Advisory • Halal Products & Services An understanding of these areas will be important for policy makers, governments, businesses, professionals and media alike.
A N O T H E R D E V E L O P M E N TA L P R O G R A M M E B Y K A S E H D I A F O R M O R E I N F O R M AT I O N ,
L O G O N T O W W W. K A S E H D I A . C O M
O R CA L L + 6 0 3 6 2 0 3 1 0 2 5
AD WISF hj.indd 2
5/8/08 2:10:01 AM
event highlights
EVENT: BEAUTYWORLD MIDDLE EAST DATE: 18-20 MAY 2008 VENUE: DUBAI INTERNATIONAL CONVENTION & EXHIBITION CENTRE, UAE
COSMETICS AND FRAGRANCE MANUFACTURERS TARGET AFFLUENT GULF STATES Cosmetics and fragrance manufacturers from around the world will be heading to Dubai this May to participate in the Beautyworld Middle East exhibition in a bid to target the affluent Gulf States. “According to a recent survey, consumption of cosmetics and fragrances in the Gulf States is among the highest per capita in the world with the average purchase estimated in the region of AED1,229 per head,“ said Epoc Messe Frankfurt Chief Executive Officer, Eckhard Pruy. Andrea Werner, Senior Show Manager of Beautyworld Middle East said: “Skincare accounts for 10 to 15 per cent of the Middle East beauty sector market. Reports have stated that the total value of beauty product sales in the Middle East was Dh7.7billion in 2007. “With a growing population, huge expansion in retail space and tax free income, it is hardly surprising that the purchase of beauty products in the Arabian Gulf has been rising at over 19 per cent annually. The region has one of the world’s fastest growing populations, rising at around six per cent every year. With over 60 per cent of the population being under 25 years of age, this is absolutely an exciting area for beauty products,” she added. Highlights of this year’s Beautyworld Middle East exhibition will include a fashion show and competitions that are much anticipated by regular visitors to the show. The Beautyworld make-up competition in 2008 will be brought to you by Visign Cosmetics
and will run in conjunction with Beautyworld Middle East. The competitions will take place under two categories – Fantasy Makeup and Glamour Make-up – and will be judged by an international judging panel. Walk of Beauty by Kadus is the beauty and fashion event to showcase the very best that the region has to offer. This area of the exhibition received wide support last year and provided a platform not only for leaders in their respective fields but also for emerging talent within the region. Beautyworld Middle East Nail Competition is an opportunity for all qualified nail technicians in the Middle East to showcase their talent, creative flair and imaginative nail art in a professional competition. They will compete in three different categories: Nail Art, Tip Overlay and Sculptured Nail Competition. Additionally, there will be a separate competition for professional nail technicians.
A variety of exhibitors will be representing all the current trends in beauty products, cosmetics and perfumery from across the globe. With Halal being a rapidly growing segment in this part of the world, the display of Halal cosmetics is also a new addition to this year’s Beautyworld Middle East. Beautyworld Middle East, which runs alongside Wellness and Spas, is the region’s most popular cosmetic and personal care exhibition and is now in its 13th year. It will host 970 exhibitors representing 1,650 brands from 50 countries, with 31 country pavilions participating. Anticipating almost 15,000 trade visitors from 100 countries, Beautyworld Middle East will open its doors from 18th to 20th May this year, at the Dubai International Convention and Exhibition Centre. For more information, please log on to www. messefrankfurtme. com/beauty/.
hj
26 THE HALAL JOURNAL | MAY/JUNE 2008
EH.indd 26
5/8/08 1:03:38 AM
AD HJ.indd 2
5/7/08 4:21:03 PM
event highlights
THE 5TH MALAYSIA INTERNATIONAL HALAL SHOWCASE TO BRING NEWER, MORE EXCITING EXHIBITS Recognised as the world’s largest Halal trade fair, the 5th Malaysia International Halal Showcase, MIHAS 2008, has included packaging machinery for the first time in this year’s exhibition to cover a broader spectrum of the Halal value chain. Aimed at strengthening its position as the Global Halal Hub, MIHAS 2008 will take centre stage from May 7 to 11 at the MATRADE Exhibition and Convention Centre, bringing new and exciting exhibits to reflect the potential waiting to be tapped in the Halal business and industry. More consumers today understand that the Halal concept is not limited to food alone but involves many other aspects, such as manufacturing and packaging. With this growing awareness, it is imperative that all Halal consumables are prepared, processed, packaged, transported and
stored in accordance with Islamic principles and the Codex General Principles on Food Hygiene. It is hoped that adding food processing and packaging machinery to MIHAS 2008 will attract exhibitors and traders interested in the acquisition of food processing machinery, including devices, utensils, storage, displays, serving equipment and packaging materials certified suitable for the manufacturing of Halal food. MIHAS 2008 is expected to attract 500 exhibitors from 30 countries and 40,000 visitors. It will be featuring five sectors: food and beverage; pharmaceuticals and herbal products; cosmetics and healthcare; banking and finance; and food processing and packaging machinery. MIHAS has been a platform for bringing
AS A PROVEN CATALYST TO THE HALAL INDUSTRY, MIHAS IS BECOMING SYNONYMOUS WITH THE NEW DRIVE TO ADVANCE ALL THINGS HALAL. AS A RESULT, THE SECTORS, SERVICES AND PRODUCTS WITHIN THE INDUSTRY HAVE BECOME MORE DEFINED AND ENCOMPASSING. together those involved in the Halal business and trade, and has grown exponentially in response to a wider market and a burgeoning industry. The number of participants has grown with each year’s event, making MIHAS a household name in international circles among both individuals and organisations. As a proven catalyst to the Halal industry, MIHAS is becoming synonymous with the new drive to advance all things Halal. As a result, the sectors, services and products
within the industry have become more defined and encompassing. There will also be opportunities for buyers and sellers in the Halal market to establish new business alliances in trade and business through the Incoming Buying Mission (IBM) programme. During this two-day programme, it is estimated that 300 international buyers from 30 countries will be participating in one-on-one business meetings with Malaysian exporters of Halal products in this year’s Business Matching Programme. hj
28 THE HALAL JOURNAL | MAY/JUNE 2008
EH.indd 28
5/8/08 1:03:58 AM
event highlights
EVENT: THAIFEX -WORLD FOOD ASIA 2008 DATE: 21-25 MAY 2008 VENUE: IMPACT CHALLENGER, BANGKOK, THAILAND
Travel
with a Personal Touch
THAIFEX - WORLD OF FOOD ASIA: BRUNEI, ITALY AND TAIWAN FORM NEW PAVILIONS TO JOIN ITS FIFTH EDITION For the first time, Brunei, Italy and Taiwan have formed new group pavilions to exhibit at Thaifex – World of Food Asia, to be held from 21 to 25 May 2008 at IMPACT Challenger. Other featured group pavilions will be from Australia, China, France, Germany, Korea, the Netherlands, Peru, the Philippines and Sri Lanka. Even with more than 1,000 exhibitors from 28 countries/regions and 20,000 visitors from 102 countries/regions visiting the show in 2007, participation and visitors records are expected to be broken this year. Thaifex – World of Food Asia is a regional trading platform for the food and beverage (F&B) trade in Southeast Asia. This includes Halal and organic products, food catering and hospitality services and the latest in food technology, retail and franchising. Special zones for Halal, health and organic products will be set up for easy access. Asia’s organic food industry has surged in recent years with a marked increase in both regional consumption and production. Health and wellness trends are the driving forces behind product and business development in this sector, while increasing wealth has fueled health consciousness among the region’s consumers. The same increasing demand for safe and high-quality food in
primary markets has also affected the Halal market. The global Halal food market is on the threshold of major developments that hold the promise of rapid and sustained growth. With the Halal food market currently accounting for as much as 12 per cent of global trade in agri-food products, major growth will generate new opportunities throughout the agri-food industry. Major manufacturers and brands such as Blue Elephant, CP Group, Framec, Ginbis, Malee, Mederer, Sandvik, White Café and many others will showcase their wide range of products at the different zones during the fair. Apart from sourcing for products and networking at the fair, visitors and exhibitors can attend seminars presenting broad topics of market trends, health food and food technology. Organised by Koelnmesse GmbH in cooperation with the Department of Export Promotion (DEP) and the Thai Chamber of Commerce (TCC), Thaifex – World of Food Asia will be open to trade visitors only on the first three days (21 to 23 May) and to the public on the last two days (24 and 25 May). For more information, log on to www.worldoffoodasia.com, contact Ms. Hazel Chan at +65 6500 6731, or send an email to mailto: hj h.chan@koelnmesse.com.sg.
Official Travel Agent WORLD HALAL FORUM 2007 For details contact:
IN D A L U C IA T O U R S & T R AVE L SD N B H D ( KKKP N o. 2477) ( C o. N o. 1 0 6 0 1 3 - M )
Ground Floor, Wisma Ismaz u ri N o. 38, Jalan 4/76C, D esa Pa n d a n 55100 Kuala Lum pur, MALAY SIA t : +6 03 9287 9688 f: +6 03 9282 3188 e: inda2477@stream yx .com THE HALAL JOURNAL | MAY/JUNE 2008
EH.indd 29
29
5/8/08 1:04:21 AM
MATRADE news
MIHAS showcases fresh ideas promoting Halal
THE 5TH MALAYSIA INTERNATIONAL HALAL SHOWCASE (MIHAS 2008) 7th-11th MAY 2008 MATRADE EXHIBITION AND CONVENTION CENTRE, JALAN DUTA, KUALA LUMPUR, MALAYSIA
GLOBAL HALAL FOOD MARKET, IS A GROWING TREND, HAS CAUGHT THE WORLD’S ATTENTION. ESTIMATED TO BE WORTH UP TO USD2.3 TRILLION ANNUALLY, THE GLOBAL HALAL INDUSTRY CREATES ENDLESS OPPORTUNITIES IN BUSINESS AND TRADE, AND IS UNDOUBTEDLY NOT A SEGMENT TO BE DISREGARDED.
H
alal is recognised by The Government of Malaysia as a global brand as early as 2004, and has subsequently widened its reach to tap into the growing acceptability for Halal products and services to include the non-Muslims. Malaysian Prime Minister Dato’ Seri Abdullah Hj Ahmad Badawi has proclaimed Halal as the new standard for safety and quality. Today, people from diverse races and religions looking for clean and wholesome food are convinced that Halal is their choice. Translating the Government’s
initiatives into active Halal investments, different agencies and platforms been introduced and have become vital. The establishment of the Halal Industry Development Corporation (HDC) under the National Implementation Task Force (NITF) was certainly significant to accelerate Malaysia’s role as a leading global Halal hub. Developing a common Halal standard; implementing a proper audit and certification procedures; training for Halaland service providers as well as promoting and marketing Malaysia’s Halal brand to the world are among HDC’s tasks. Malaysia’s vast experience in the Halal industry, including
non-food products and services, has gained recognition of the Organisation of the Islamic Conference (OIC), especially when some 1.8 billion Muslims make up the existing world population. Malaysia, as a member of the OIC and the Non-Aligned Movement (NAM), has taken the lead with aggressive promotions in Halal and proposing acceptance that Halal is also good for non-Muslims. The Malaysia International Halal Showcase, MIHAS, was staged for the first time in 2004 for only one reason – to realise the Malaysian Government’s vision in transforming the country into a global Halal hub. Bringing many people, businesses, organisations, and
30 THE HALAL JOURNAL | MAY/JUNE 2008
matrade.indd 30
5/8/08 1:05:45 AM
MATRADE news
Governments, MIHAS aims to achieve one single aim; the dynamic growth of the global Halal industry, not only for the Muslim market but for everyone. This year, MIHAS 2008 is from 7th to 11th May. More than 600 booths manned by 30 countries are expected, which shows an encouraging increase from its debut show in 2004. The venue will be at the MATRADE Exhibition
and Convention Centre, MECC, Jalan Duta, Kuala Lumpur. This exhibition is hosted by the Ministry of International Trade and Industry (MITI), and organised by Malaysia External Trade Development Corporation (MATRADE) jointly with the Islamic Dakwah Foundation Malaysia (YADIM), in association with the Ministry of Entrepreneur and Co-Operative Development. MIHAS earned its place at the world’s largest showcase of Halal products and services, MIHAS 2007 managed to attract 36,792 visitors from 64 countries with 514 booths taken by participants from 26 countries including Malaysia. With 19,635 trade visitors, mostly from China, Singapore, Brunei, Indonesia, and Iran, and 224 trade
MIHAS earned its place at the world’s largest showcase of Halal products and services, MIHAS 2007 managed to attract 36,792 visitors from 64 countries with 514 booths taken by participants from 26 countries including Malaysia.
buyers from 29 countries flown in, total direct sales of RM213.9 million was recorded over the five-day event. MIHAS not only brought together Muslim nations in trade and commerce, but also likeminded economies wishing to pursue further development of the global Halal market. Malaysian Government has given their vote of confidence in MIHAS as the catalyst for the Halal marketplace, with its boundless opportunities as it covers the entire value chain, which begins with production, and manufacturing of products, to shipping, logistics, exporting, and retailing. MIHAS chief executive officer, Mohd Shukri Abdullah, said, “Malaysia has been leading
For more information contact MATRADE HEADQUATERS Menara MATRADE, Jalan Khidmat Usaha, Off Jalan Duta, 50480 Kuala Lumpur, MALAYSIA T +603-6207 7077 F +603-6203 7037 TOLL FREE 1 800 88 7280 W www.matrade.gov.my E info@matrade.gov.my
the global Halal industry for almost four decades. However, a void exists when it comes to facilitating the sourcing and selling of Halal certified products. “MIHAS was created to provide solutions for this situation and it aims to serve the global Halal consumer markets through this fundamental trade platform. “Today, MIHAS, as the world’s largest Halal trade show provides the best venue for international Halal certified consumables, product manufacturers and international buyers to profit from. “We all have the same objectives and goals in mind: to make sure that the Halal products and services will be able to gain their rightful place in the world,” Mohd Shukri said. hj For more information or to book an exhibition space for MIHAS 2009, please contact the MIHAS SECRETARIAT at Tel: +603 6203 4433 or Fax: +603 6203 4422, or send an email to enquiry@Halal.org. my or log on to www.Halal.com.my
THE HALAL JOURNAL | MAY/JUNE 2008
matrade.indd 31
31
5/8/08 1:06:03 AM
Cover Story
“As in the case of other globally traded products, trade in Halal products is growing with a magnitude that has not been seen since the last century.”
The Global H Trends and I
A
lthough the consumption and trade of Halal products existed more than 1,000 years ago, it has only been in the last few decades that governments and consumers have shown great interest in this market. In its basic form, Halal is an Islamic value attached to products. Hence, this has a direct impact on how the products should be financed, sourced, produced, processed, distributed, stored, sold and consumed. Since the Malaysian Government announced a policy initiative to penetrate the global Halal market in the late 1990’s, other countries – both Muslim and non-Muslim – have mirrored this move. For many countries, penetrating the global
Halal market has become sine qua non in the development of an export market strategy. However, confusion arises whenever someone attempts to understand the potential of this market or is assigned to craft a penetration strategy. For the Halal Journal, related queries have become routine: What is meant by potential? Is it a combined value of total food consumption by Muslims in the world? Or is it a total value of traded food products in Muslim countries? And what is meant by Halal products? Are they Halal-certified? Do they consist of only meat, or do they include all food products? How about cosmetics? How about pharmaceuticals? As we reach a mature stage of this discussion, understanding what to include in our common ideas about Halal products is important in providing an unequivocal analysis of the prospective market it offers. Regardless of what
32 THE HALAL JOURNAL | MAY/JUNE 2008
CS.indd 32
5/8/08 1:06:56 AM
Figure 1: Global Meat Consumption to Halal Meat Trade
the conclusion is on what the market is worth, the important point to be made here is not to get involved in a complex discussion of consumer statistics, but rather to come to a precise understanding of what the market can offer, its trade patterns and underlying characteristics. MARKET POTENTIAL: FROM THE SIZE OF GLOBAL CONSUMPTION TO TRADED VALUE Some countries have announced that they intend to capture ‘x’ per cent of the total Halal market – amounting to USD 580 billion – and therefore position themselves among the major players in the world. Although the market for Halal products is big, there is a huge difference between market size in terms of global consumption and total trade to and/ from Muslim countries (e.g. Halal trade). It is widely known that globally traded products normally form only a small fraction of global consumption. For example, in terms of meat products, total projected global consumption in 2008 is 151.2 million MT worth USD 334.4 billion. However, the total global trade value of meat products is USD 37.1 billion and
Figure 2: Awareness of Halal in Asia, the Middle East and Europe
Halal Trade, d Issues THIS ARTICLE IS BASED ON TWO YEARS OF IN-DEPTH RESEARCH INTO TRADE IN HALAL PRODUCTS AND SERVICES IN MORE THAN 12 COUNTRIES, INCLUDING SOUTH AFRICA, JAPAN, THAILAND, INDONESIA, BRUNEI, SINGAPORE, UAE, HONG KONG, GERMANY, NETHERLANDS, BELGIUM AND FRANCE.
By Irfan Sungkar
KasehDia Head of Research and Strategic Projects
yet, trade within Muslim countries (i.e. the Halal meat trade) is only 3.3 million MT or about USD 7.0 billion (Refer to Figure 1). HALAL: MORE THAN RELIGIOUS OBLIGATION While accurate reporting on the trade of Halal products over time and over space is difficult due to, among other things, the inexistence of a supranational agency that monitors Halal trade and issues, and facilitates and increases the trade of Halal products and services in the world, we are now at a point where we are able to say that Halal is more than just a religious obligation for Muslims. The current Halal production chain is adapting to newly emerging consumer interests such as animal welfare, the use of genetically modified organisms, cloned meat as well as trends of convenience in cooking and eating.
The important point to be made here is not to get involved in a complex discussion of consumer statistics, but rather to come to a precise understanding of what the market can offer, its trade patterns and underlying characteristics. Nowadays, major hypermarkets in the world such as Carrefour France and Albert Heijn of the Netherlands are testing to include Halal meat in their stores’ shelves. Experiments by Carrefour Malaysia to insert a Halal coordinator in the production chain before the Halal product
reaches their shelves have proven to be highly successful, and there is talk that this model will be adopted elsewhere. In the past, Muslims – especially those in nonMuslim majority countries – simply avoided foods that did not meet their Halal dietary requirements. But now Muslims
THE HALAL JOURNAL | MAY/JUNE 2008
CS.indd 33
33
5/8/08 1:07:16 AM
are making their presence socially and physically felt by demanding Halal-certified food products. HALAL IS NOT ONLY ABOUT MEAT PRODUCTS Halal is not only about meat products, but is about all consumer products and the whole production chain. The awareness level of this aspect is admittedly still low as even many Muslims believe that Halal is only about meat and meat-based products. Our research has revealed that this awareness level varies among Muslim consumers in Asia, the Middle East and European countries (Refer to Figure 2). However, the situation is starting to improve, partly due to the rise of reported cases of abuses and forgeries in Halal certification, such as with the recent case of pork products being given a Halal certificate. NON-MUSLIM COUNTRIES AS THE MAIN EXPORTERS OF HALAL PRODUCTS As noted earlier, Halal is not only about meat. However, as the awareness of Halal meat is the highest, an analysis of Halal meat is conducted to represent the global Halal trade as their characteristics are almost similar. In many types of meat products e.g. poultry, beef and lamb/mutton, nonMuslim countries such as Brazil, the United States, France, Australia and New Zealand are the largest producers and exporters of Halal meat in the world. Muslim countries are the net-buyers of Halal meat. SOME INTERESTING FACTS ABOUT THE GLOBAL HALAL TRADE ARE LISTED BELOW: Brazil is currently one of the biggest exporters of meat and agribusiness in the world, and a substantial percentage of its exports are Halal products. For example, close to 70 per cent of its exports of 1 million frozen whole chickens to more than 100 countries is Halal-certified. Most of these go to the GCC countries such as Saudi Arabia, UAE, Kuwait, Bahrain, Oman and Qatar; Close to 30 per cent of Brazil’s 1.1 million MT of exported boneless beef products are Halal-certified. In addition to GCC countries, Egypt and Iran are among the important buyers of Brazilian beef products; France is currently the third largest poultry meat exporter in the world. About 75 per cent or 110,000 MT of its exports of frozen whole chickens are Halal. Saudi Arabia, Kuwait, UAE and Yemen are the most important markets; The United States is the third largest beef exporter in the world and exports more than 80 per cent of it’s frozen beef offal in the form of Halal-certified products to numerous Muslim countries; New Zealand, being the fourth largest beef exporter in the world, exported about 40 per cent of it’s boneless beef products as Halal-certified beef to more than a dozen Muslim countries.
As incomes rise, countries are moving up the value chain into an advanced, high quality and hygienic trade format. Consumer demand will also rise and they will start to diversify their purchases into more types of Halal products from almost every country. Figure 3: Increase in Income and Global Product’s Selection
RISING INCOME AND IMPACT ON GLOBAL HALAL TRADE As in the case of other globally traded products, trade in Halal products is growing with a magnitude that has not been seen since the last century. There are two elements behind this growth, i.e. super-production by large exporting countries and the rise in disposable income among consumers in importing countries. The increase in Halal trade is not an isolated trend, but is characteristic of a global economy that is becoming ever more dependent on trade in goods and services. As the world and Muslims get richer, the appetite for trade increases. When the consumer incomes of Muslims rise, they become choosier about the products that they want to buy. As a general rule, a rise in income typically relates to an increase in the demand for more value-added and differentiated products. When Muslims have higher purchasing power, they are able to be more selective about what Halal products they want to buy. On the other hand, the lower income groups cannot be as picky about what they want or are able to buy (Refer to Figure 3). For Muslims, what distances them from non-Muslims is that Halal
products should have an inherently Islamic value. SUMMARY In general, the trend and characteristics of the global trade of Halal products is not isolated from other types of products. The global Halal trade will continue to grow. As incomes rise, countries are moving up the value chain into an advanced, high quality and hygienic trade format. Consumer demand will also rise and they will start to diversify their purchases into more types of Halal products from almost every country. Hence, there are emerging trade opportunities with the rest of the world, regardless of whether local production systems are responsive enough to adjust to this change and are able to uplift their Halal standards. As the above trends are projected to strengthen in the next few years, there will be an internal structural transformation in several countries, which will give rise to an impact on the global patterns and flows of Halal trade. Awareness levels, local consumer tastes and preferences, product adaptation and income levels are now the major driving forces in determining the flow and patterns/characteristics of the global Halal trade. hj
34 THE HALAL JOURNAL | MAY/JUNE 2008
CS.indd 34
5/8/08 1:07:31 AM
AD HJ.indd 2
5/8/08 2:31:48 AM
MUSLIMS’ AWARENESS OF HALAL IN THE AGE OF GLOBALISATION
Words By IRFAN SUNGKAR
Globalisation can be described as “a mixture of international, multinational, offshore and global activities (involving) a general progression from the domestic to the global”.
O
ne of the pillars of globalisation is lowered barriers in labour movements. Although there are still restrictions on the free movement of labour, especially from developing to developed countries, the fact is there are increasing numbers of migrants in many developed countries, which in turn is causing unease in the host country. This is especially true of Muslims migrants, especially those who have moved to the European Union (EU) countries. It is widely known that these Muslim migrants remain deeply attached to their religious and cultural beliefs. They do not shift from these values even when they move to a new location in search of a better living
situation, educational opportunities and economic future. Many experts believe that in Europe alone the number of Muslim migrants has grown to between 16 and 20 million since the 1990s. But our internal research finds that this number grossly underestimates the real figure. Although nobody can claim to know the exact figure, the recent film Fitna suggested that there are 54 million Muslims in the whole of Europe. AWARENESS LEVEL ON THE HALAL CONCEPT The concept of Halal dates back to the time of the prophet (SAW) and encompasses time, nationalism and location. Halal determines how products are financed, sourced, manufactured, processed, distributed, stored and sold. It is not only about how we slaughter animals, but also about how we respect and treat them. But Halal is alsonot only about meat. It is true that meat and meat-based products have the highest levels
36 THE HALAL JOURNAL | MAY/JUNE 2008
F1.indd 36
5/8/08 1:08:03 AM
Figure 1: Average Awareness Level of Halal
ALTHOUGH ECONOMIC AND BUSINESS FORCES WILL CONTINUE TO SPUR THE GROWTH OF THE HALAL INDUSTRY, WE SHOULD NOT ALLOW THIS EXPANSION TO BE DISCONNECTED FROM ISLAMIC VALUES AND SHARIAH LAW of exposure to non-Halal products and practices, but so do canned sardines, canned tuna, etc. How about cosmetics and pharmaceuticals? We take vitamins and other dietary supplements almost every day, and more often than not these products are packaged in capsules. Ten years ago, all capsules were made of non-Halal ingredients, and it is only now that there are alternatives. To investigate the awareness of Halal, we conducted a survey in Europe (Germany, France, Belgium and the Netherlands), the Middle East (Saudi Arabia, Kuwait, UAE and Oman) and Asia (Malaysia, Indonesia, Singapore and Thailand) between July 2007 and March 2008. We asked thousands of Muslim consumers about what products they thought should be considered Halal, and whether they would make any effort to find these products.
As depicted in Figure 1, Muslims generally had the highest awareness level of Halal meat and meatbased products without any significant variation. However, when the products in question were processed foods, cosmetics and pharmaceuticals, significant levels of variation did occur. As noted in Figure 1, between 94 and 98 per cent of Muslim respondents believed and made a genuine effort to find and purchase Halal meat products. But only between 40 and 64 per cent revealed that they think processed food should be Halal. The awareness levels for cosmetics and pharmaceuticals were even lower. On average, between 24 and 30 per cent of all Muslim respondents said that cosmetics were important and should be included under the Halal concept. For pharmaceutical products, the awareness level was
the lowest at between 18 and 22 per cent. It should be noted that the differences in awareness levels was not merely due to a lack of general knowledge on the matter (such as knowledge about Haram ingredients), but also due to differences in how things are conducted and understood in various parts of the world. REGULATORY DEVELOPMENTS IN GCC COUNTRIES According to a report by the Canada Consulate in Dubai as well as several industry sources, efforts are underway to change how Halal regulatory frameworks are being conducted in the GCC countries. It should be noted that Halal stakeholders and those who are able to influence the policy, especially in the GCC countries, should be extremely careful and understand that any changes and moves by the GCC countries can radically
alter and shape the development of the Halal industry in other countries. According to several industry sources, GCC countries are planning to limit the usage of the term ‘Halal’ to products which contain an ingredient susceptible to being considered Halal in the first place (such as beef in corned beef; chicken sausage in canned frankfurters, etc). The use of the term Halal is therefore not designed simply to give a marketing edge over other similar products. SUMMARY Awareness levels of the Halal concept and what constitutes Halal products is an area where research, multi-layered understanding and most importantly, Shariah law interpretations have to be used comprehensively. At present, there are divergent views of the Halal concept by Muslims in different parts of the world. For example, while Muslims in Malaysia and Indonesia appear to be well aware that cosmetics should also be included under the Halal concept, this is not the case with Muslims in the Middle East. Even for processed food products such as canned tuna, canned sardines, fruit juices, frozen vegetables, cured products and many other processed foods, proper understanding and comprehensive explanations must be given using an accurate Shariah point of view. Although economic and business forces will continue to spur the growth of the Halal industry, we should not allow this expansion to be disconnected from Islamic values and Shariah law. hj
THE HALAL JOURNAL | MAY/JUNE 2008
F1.indd 37
37
5/8/08 1:08:17 AM
CONGRATULATIONS to the
Halal Forum for a
IOWA-U.S.A
Successful 2008 Program
Islamic Services of America was originally established in 1975 as an Educational Foundation. I.S.A. was the first official North American accredited certifier with recognition in Southeast Asia, Middle East and some 60 Islamic markets. In 1981, I.S.A. became the first U.S.A. Malaysian approved Halal certifier by Pusat Islam of Malaysia. I.S.A. has continuously maintained JAKIM’s Halal approval since 1981. I.S.A. was recognized by Singapore in 1984, followed by Indonesia, Saudi Arabia, Kuwait, Bahrain, and all of GCC. I.S.A. is one of the few official certifiers for the U.A.E. I.S.A. has maintained the highest level of Halal standards and integrity, without compromising Islamic values or commercializing Halal certification. By following procedures and compliance of Halal standards implemented by I.S.A. and set forth by JAKIM and DVS guidelines of Malaysia, The I.S.A. certification of the Midamar Quality Halal product line has placed Midamar in the highest global position of respect for a commitment to Halal Quality, Innovation, Integrity and Professionalism.
I.S.A.
Islamic Services of America P.O. Box 521 Phone: 319-362-0480 • Fax: 319-366-4369 Email: islamicservices@isaiowa.org Website: www.isaiowa.org
I- Integrity S- Service A- Authenticity
I.S.A. - 33 Years of Commitment and Integrity to Community and Social Services
AD HJ.indd 2
Thank You with appreciation MIDAMAR
was honored to have received the International
BEST HALAL PRODUCT AWARD With continued support and cooperation we look forward to Halal Forum 2009
5/7/08 4:18:13 PM
RD
on
AD HJ.indd 3
5/7/08 4:18:40 PM
GLOBAL IMAGE & PERCEPTIONS
OF ISLAMIC VALUES
The Struggle of Islamic Products and Services in the International Markets As the Halal food concept grows at a phenomenal rate worldwide, the perceptions of its message, branding of its products and positioning of its image are all just as quickly becoming an even more complex global challenge. Historically, successful mega revolutions have relied on the incubation of very simple ideas, creating mass appeal and hassle-free propagation of the master concepts to eventually lead to worldwide acceptance.
Words By NASEEM JAVED
H
owever, with today’s global image shifts, even the best of ideas can become trapped. It is a chess game out there and only the smart players who know all the precise moves will win, as most players are simply moving the pieces without knowing the rules. Welcome to the complex world of the image positioning of Halal products and Islamic concepts. IMAGE LEADERSHIP MANDATE
Creating a globally acceptable message with built-in features so it becomes a self-propagating cyclonic brand identity and an unstoppable force now demands special rules of engagement. This is not achieved by logo-centric and slogan-happy branding, or by
simply attaching the word “Halal” to any product. To nurture a revolutionary movement, the study of the global image landscape is crucial. These complex issues are often perceived as useless exercises of massive focus group studies or repeats of traditional prolonged research processes, where outdated case studies of some once-great Western projects only produce outdated results. Today, this subject demands a commanding knowledge of how mass communication and global media strategies are managed and how fresh ideas are deployed. To create a world-class Image Leadership Mandate within any mega project is to define, design and own a master blueprint and to have the tools to x-ray the global landscape during its implementation.
40 THE HALAL JOURNAL | MAY/JUNE 2008
F2.indd 40
5/8/08 1:08:50 AM
SO, WHO ARE THE NEW CHAMPION nations on the global stage delivering the finest performances and altering the course of branded imagery of goods and services? Where are the Muslim countries on these issues? Where are the armies of new Muslim products to serve not only Muslim populations, but also to attract global customers?
These processes also often get confused as being covered by a short-lived media blast or a quick-fix ad blitz; when the dust settles however, these processes do not leave any residual brand equity value. For this very reason, there are no major globally recognised brands from Muslim countries to talk about. THE NATIONAL IMAGE
The global populace is now seriously challenging what took centuries for countries to create: A status of superiority. Booming new economies are redefining themselves under new images through improved performance – claiming high status under the superiority of their new ideas. This whole game of image positioning was once exclusively reserved for the small handful of Western powers. This turbo-charged and hyper-accelerated mode of global image repositioning is causing shifts and creating new chasms among countries. There is a void that needs to be filled with new players, new ideas and new global icons. So, who are the new champion nations on the global stage delivering the finest performances and altering the course of branded imagery of goods and services? Where are the Muslim countries on these issues? Where are the armies of new Muslim products to serve not only Muslim populations, but also to attract global customers? What is happening to the image of traditional nations, and where are they now? Detecting these seismic tremors in advance, to pursue the balancing act for creating new imagery and rapid brand positioning with world-class solutions, has now become a serious art. THE KNOWLEDGE GAPS
Today, this advanced level of knowledge is absent from most of the high-profile conferences in Muslim countries, and is often completely missing from any serious agenda debating this critical issue. Unless these levels of competency are properly addressed and the current methodologies based on the old mediums are seriously challenged, the subject of image will simply linger in the dark. As the global image shifts continue, some extraordinary opportunities are being missed by the day.
So long as the Middle Eastern and Islamic culture assumes that image positioning and identity definitions are to be taken care of by overblown, logo-driven advertising depicting strange designs and emulating disconnected messages, global mindshare and respectability of image will not occur. The real pressing issues lie in questions such as: What are the rules to create national brands with global reach, and can you intertwine image and message hierarchy in a way that would translate into global acceptance? These issues not only require a top-level debate, but also detailed master game plans with a series of world-class strategies to carry out the long-term global mission. Despite mega expenses and expensive glossy promotion efforts, brand identities are lost on the global stage. In a recent selectstudy of the Dubai Brand NameIdentity Profile conducted by ABC Namebank International, TorontoNew York, the most significant observation was that there is a very strong awareness of the number of Dubai’s projects around the globe, but a serious lack of clear brand name identity recognition. If not corrected, the current push for global attention could be wasted. A recently released business documentary available on the Internet, entitled “The Oblivion Syndrome”, shows how some entities that are convinced that their branding efforts are charging forward into global stardom are in reality slipping into decreased visibility, and eventually, total oblivion. There exists an undiscovered universe of billions of customers. The next challenge for the new gatekeeper of the national brands is the streamlining of global marketing and branding tools to achieve stardom in the fastest time, with minimal costs and maximum impact. As massive global shifts take place, this calls for drastic action.
This subject is exclusively for chief executive officers (CEOs) who alone can bite the bullet and confront these issues headon by implementing evaluation, conducting audits and stopping the confusion. During my lecture tours in Dubai and the Gulf Cooperation Council or GCC countries, I was always overwhelmed by the response in clearly and rightfully identifying the issues. Often however, respondents were not taking bold steps to activate a process to immediately start altering the situation. The image blame game of the past must be replaced by massive training and grass roots incubation of image and brand-savvy culture, so that nations become confident in knowing the art and start enjoying the benefit of its skilful application. There are series of such nationwide programmes already drafted that can alter the course under the right leadership. RECOMMENDATIONS
Nations seeking a sharper image on the global stage must band their exportable competencies and create the ambassadorial brands that can go out and touch the customers of the universe. However, they must play these games with great care and with a deeper understanding of icons under the established rules of engagement. CEOs of major projects are recommended to take the Five Star Standard test available on the Internet today and open a serious discussion backed by professional evaluations while looking at worldclass solutions to this dilemma. Halal food concepts will become the most powerful global issues in a very short time ahead, but to turn them into a globally successful and highly respectable phenomenon, this game must be played with proper rules and it must incubate ideas that will help thousands of small and medium enterprises along the way. A true mega revolution awaits… hj
WRITER’S PROFILE: Naseem Javed, is a new and powerful voice on global image positioning and mega corporate name identities who also questions the root causes of why Islamic countries do not have any respectable, globally recognised local brands. Naseem has personally created global name identities which, when combined, receive a turnover of $40 billion per annum. He founded ABC Namebank International in Toronto and New York over a quarter century ago. He is currently lecturing in the Middle East. Naseem is contactable at nj@njabc.com.
THE HALAL JOURNAL | MAY/JUNE 2008
F2.indd 41
41
5/8/08 1:09:02 AM
advertorial
adverto
CCM - GOING BEYOND HALAL FOOD AND BEVERAGES
I
n view of the continuous growth of the world’s Muslim population (which currently stands at 21 per cent of the global population), Chemical Company of Malaysia Berhad (CCM) believes that Halal products will provide a pivotal portion of the world’s FMCG demand. Halal certification benefits Muslims and also gives confidence to everyone, as it is a stamp of assurance which certifies and guarantees that the products command a consistently high standard of hygiene, quality, safety and sanitary conditions. With increasing global awareness of the high standards that Halal certification commands, the international Halal market will grow in leaps and bounds. CCM, being one of the nation’s largest pharmaceuticals, chemicals and fertilisers group of companies, is poised to take the lead position in understanding, anticipating and providing for this rapidly growing global Halal market through its wide range of products and services. Its pharmaceuticals and chemicals divisions were the pioneers in their fields in obtaining JAKIM’s Halal certification for their products back in 1999 and 2004, respectively. “As part of our core business values, we provide products which are consistently of high standard and quality. Thus, the Halal certification which we obtained and successfully renewed every two years further attest to our effort in providing the best to consumers, Muslims and non-Muslims alike, locally and overseas. This is in line with the Government’s efforts to spearhead Malaysia’s development in the Halal industry and realise the country’s vision of becoming the global Halal hub,” said CCM Group Managing Director Dato’ Dr Mohd Hashim Tajudin. CCM’s Pharmaceuticals Division is Malaysia’s largest manufacturer of health supplements and medicines. It supplies its products nationwide and exports to over 20 countries, including to regional offices in the ASEAN countries. Its medications for gastrointestinal and cardiovascular conditions – Omesec and Vascor, respectively – are blockbusters in both local and export markets. Both had undergone Bioequivalent (BE) studies successfully, affirming that they have similar chemical profiles as the innovators. Omesec was awarded the MITI Industry Excellence Award – Innovative Product in 2004. CCM’s health supplement range is under established brands such as CHAMPS, Proviton, Flavettes, Donna, Naturalle, Natberry and Lipasu. CHAMPS has been
voted consistently as consumers’ choice children’s vitamins, not only in Malaysia but also in Hong Kong. It recently won the “2008 Super Brands Award” by Parent Magazine in Hong Kong for the third time. Proviton, the brand for onea-day multivitamins with Panax Ginseng IDB extract, won the MITI Industry Excellence Award – Pioneer in Research of Excellent Product Quality in 1999. The products from CCM’s Chemicals Division are supplied to various industries including water treatment, food and beverages, additives, edible oil, oleochemicals and textiles, both locally and internationally. They are used either as primary raw materials or as process additives, thus directly affecting product quality and safety.
JAKIM’s Halal certification is integral to the internationally recognised ISO and Good Manufacturing Practice (GMP) certifications. In fact, ISO/GMP is a pre-requisite for Halal certification. Dato’ Hashim reiterates that this benefits nonMuslims as well, for the certified products would have adhered to stringent Islamic requirements that have high standards of hygiene, quality and safety. “Apart from JAKIM’s Halal certification for our health supplement range, our Pharmaceuticals Division also has the Malaysian Ministry of Health’s (MOH) certification as a manufacturer meeting the GMP guidelines of the Pharmaceutical Inspection Convention and
42 THE HALAL JOURNAL | MAY/JUNE 2008
Advert-CCM.indd 42
5/8/08 2:13:10 AM
advertorial
We also obtained the Therapeutic Goods Administration (TGA) certification from the Australian Ministry of Health, which affirms that our facilities comply with the Australian Code of Good Manufacturing Practice for Medicinal Products, thus allowing our products to be sold in Australia. Cooperation Scheme (“PIC/ S”) and the requirements of World Health Organisation (WHO). PIC/S is widely recognised in Europe,” he said. “We also obtained the Therapeutic Goods Administration (TGA) certification from the Australian Ministry of Health, which affirms that our facilities comply with the Australian Code of Good Manufacturing Practice for Medicinal Products, thus allowing our products to be sold in Australia. Further to these certifications, our assurance process includes the establishment of Halal Council and operating committees, periodic internal auditing, providing continuous training
programme for employees and having regular meetings and consultations with relevant bodies such as MOH, JAKIM, Halal Industry Development Corporation (HDC) and SIRIM,” says Dato’ Hashim. Taking its commitment to Halal products further, CCM through its research and development company, Innovax Sdn Bhd, aims to develop more products that comply with certification standards and at the same time cater to the requirements of consumers who prefer Halal products. With this move, CCM hopes to establish itself as a leader in the global Halal pharmaceutical industry. Dato’ Hashim believes
there is still much to be done in the Halal industry, especially beyond the F&B sector. “As there are an increasing number of players in the Halal food industry, it is becoming quite competitive,” he said. “There should be more effort in focusing on niche markets, such as developing the Halal pharmaceutical industry. “We have to remember that pharmaceutical products, especially medicines, are in demand, economic conditions notwithstanding. Furthermore, with the rising cost of food there is a tendency to select your food, sometimes resulting in an imbalance of nutritious intakes, hence increasing the vulnerability to illnesses. Our vitamins and health supplements, which are affordable, would enable consumers to take preventive measures in protecting their health, as falling sick can be costly,” he said. With this philanthropic philosophy in emancipating the world from the unwanted shortcomings of ill health, CCM’s vision has embraced a world vision of affordable Halalcertified health supplements. In its bid to understand and be able to meet its
international goals and objectives, CCM has been an active participant and contributor of the World Halal Forum since its inception in 2006. The fundamental perspectives and issues that the Forum brings up are key catalysts in being able to embrace and provide for the global Halal pharmaceutical market. The Forum also provides a platform for CCM’s products to have optimal exposure to international players and authorities in the Halal market. CCM’s efforts in this monumental cause will soon be the foundation for Malaysia’s foray into setting the Halal standard for the pharmaceutical industry. Additionally, CCM plans to spearhead the drive in both market awareness and providing a basis for the public to be educated in the benefits and necessity of Halal pharmaceutical products. From a subsidiary in the English firm, ICI PLC, to a Malaysian-owned corporation on the main board of Bursa Malaysia, CCM is on the right track and heading in the right direction. The Halal market is certainly CCM’s to conquer.
THE HALAL JOURNAL | MAY/JUNE 2008
Advert-CCM.indd 43
43
5/8/08 2:13:34 AM
ISLAMIC CHAMBER OF COMMERCE AND INDUSTRY
The Platform
Words By ZAHARAH ABU OMAR
for a Global Halal Standard
The recently concluded Organisation of Islamic Conference (OIC) Summit in Dakar, Senegal on 13-14th March 2008 marked a major milestone in the global Halal industry. The OIC, being a collective body of 57 member countries representing over 90 per cent of the Muslim population worldwide, has set its sights on the USD580 billion global Halal market. Here is a deliberation on why the Islamic Chamber of Commerce
T
and Industry (ICCI) should be the platform for a Global Halal Standard.
he OIC was formed on September 25th 1969 to foster solidarity among Islamic member states. This global body, which perhaps is the closest representation of the Ummah, champions numerous programmes that cover both social and economic agendas affecting the lives of Muslims everywhere. These programmes are implemented through the various standing committees, subsidiary organs, and specialised and affiliated institutions. One of the most influential institutions under the OIC is the Islamic Chamber of Commerce and Industry (ICCI). Headed by their inspirational President, Sheikh Saleh Abdullah Kamel, ICCI represents the private sector of
the 57 OIC member countries. The global Halal agenda fits in with ICCI’s vision and mission of enhancing trade and economic cooperation amongst Muslims worldwide, based on Islamic principles. The need for a Global Halal Standard was the resounding call at the inaugural World Halal Forum in May 2006. “Nestlé very much supports a global standard and for one logo to be created...” said Dato’ Frits van Dijk, Executive Vice President at Nestlé S.A., in charge of the Asia Oceania Africa and Middle East region. This set the tone for the recurring theme at subsequent Halal-related
conferences and seminars all over the world. However, while everyone agreed that it was the main issue in the global Halal industry, no one could agree on a workable solution to resolve it. The consolidation of Halal standards has been a sought-after goal for quite some time now. For example, the World Halal Council was formed in December 1999 as an international organisation of Halal certification bodies to develop a standard that would be implemented by its members. Out of more than 50 member organisations, one is from an OIC member country.
44 THE HALAL JOURNAL | MAY/JUNE 2008
F3.indd 44
5/8/08 1:09:30 AM
The success of achieving a mutually recognised standard would entail some compromises on the part of all certification bodies that had previously been operating based on their own standard, which inevitably would vary across organisations. Other groupings were also formed to cooperate on a single standard. These include the Association of South East Asian Nations (ASEAN) General Guidelines on the Preparation and Handling of Halal Food and even at a smaller scale, under the Indonesia Malaysia Thailand – Growth Triangle (IMTGT). Both these efforts have yet to be implemented by their member countries. Individual countries have tried to take the lead in developing a global standard. Both Turkey and Malaysia have made their case to the OIC for their national Halal standard to be adopted as the de facto OIC Halal standard, but to no avail. The question now is which platform should be used for the formation of a global Halal standard?
D
eveloping the technicalities of the standard is only half of the battle. The second half is to employ the right platform through which the standard is implemented. The right platform must be able to carefully balance the interests of the Muslim consumer and industry players while never compromising on Shariah compliance. The Food and Agriculture Organisation (FAO) issued General Guidelines for Use of the Term “Halal” under Codex Alimentarius. It, however, stopped short of developing a standard. Some have suggested the International Organisation for Standardisation (ISO), which already has a global infrastructure in place, recognise and implement a standard. However, a standards body headquartered in Switzerland dictating Halal criteria may raise some eyebrows. “Switzerland is the last country on Earth to talk about Halal standards. It has banned Halal and Kosher slaughter since the last century!” lamented Marco Pellaud Abdullah, a recent convert to Islam who finds difficulty in complying with his faith in his hometown of Geneva. How about other related standards bodies such as GlobalGap, the International Food Standards (IFS) or even the World Trade Organisation (WTO)? As the industry is the most vocal on this issue, what if they were to take matters into their own hands and initiate an industry-driven standard that would be self-regulating? This would be akin to British Retailers Consortium (BRC) or Worldwide Responsible Apparel Production (WRAP).
Can we take a cue from the lessons learnt by other standards? In the case of organic foods, the multiple and fragmented standards and certification faced by the industry was resolved with an iron-fist approach in the European Union (EU), when the authority simply laid down their own definitive standard. “One has to realise the sensitivities of Halal,” said Samir Ghafoor, a food and beverage trader based in Dubai. “The EU, WTO, and the United Nations are all organisations controlled by non-Muslims. It would be tremendously insensitive, especially in this day and age, for nonMuslims to tell us Muslims what we can and cannot eat!” Halal standards now are
the consumer on the same table, you typically will have non-Muslims on one side concerned with the costbenefit of implementing Halal standards. Whilst on the other side, you have Muslims striving for strict compliance in accordance with their faith.”
T
he global Halal standard developed and promoted by ICCI would be one that is made by Muslims for Muslims. The ICCI members are both consumers and producers of Halal products and services. “What I make, I am going to eat and feed to my family,” said a Muslim
When you place the industry and the consumer on the same table, you typically will have non-Muslims on one side concerned with the cost-benefit of implementing Halal standards. Whilst on the other side, you have Muslims striving for strict compliance in accordance with their faith.
typically production-centric; most Halal certification was developed in producing and exporting nations that tend to be non-Muslim countries. What needs to happen is for the standard to be consumer-centric. “There is a dichotomy of interests among the key stakeholders,” explained Darhim Dali Hashim, Chief Executive Officer of the International Halal Integrity Alliance (IHI Alliance). “When you place the industry and
manufacturer of frozen food products. “As a Muslim, I must uphold my Fardhu Kifayah to provide truly Halal food to my brothers and sisters. I am also a businessman, so I am also mindful of the need for practical solutions in complying with Halal standards.” IHI Alliance as an international non-governmental organisation was formed to represent the interests of the Halal industry as a hj collective voice.
THE HALAL JOURNAL | MAY/JUNE 2008
F3.indd 45
45
5/8/08 1:09:38 AM
In A Theory of Human Motivation, Abraham Maslow positioned the desire to feel safe right after the basic physiological needs of breathing, eating, drinking, and so on, stating that only when physical needs are satisfied can safety become a priority. Maslow’s hierarchy of needs define safety as “security of body, of employment, of resources, of morality, of the family, of health, of property”. While others may argue that human needs are nonhierarchical, it would still mean that wherever the priority is, safety and security are indeed basic human needs.
Halal Traceability The Assurance of Safety, Quality and Authenticity Words By FE JAZZAREEN MOR JAPAR KHAN
W
ith today’s large-scale manufacturing and food production, it is increasingly harder to know what goes into the food we eat. Food labelling may help, but do consumers understand the significance of the manufacturer’s declarations on the label? Most Muslims would know what to look for on a label since Haram or even Mashbooh food ingredients are mainly highlighted – pork, alcohol and gelatine. Avoiding the obvious is easy, but what about modified or hidden ingredients? Industrialisation has resulted in process improvement, waste management and recycling, but to the detrimental effect of potentially Haram ingredients being re-used in other products. The issues surrounding mass commercialisation of food products have resulted in global Muslim consumer demand for authentic Halal food, as well as trusted Halal brands. Both a technology and information gap exists, as consumers cannot easily access food information. However, it is increasingly important for consumers to know where the food comes from, and to be able to trust that it is clean, safe, Halal as well as Toyyib (wholesome) according to the principles of Islam. The European Union (EU) General Food Law, which came into force in 2002, made traceability compulsory from 2005 for all food and feed businesses. It requires that all food and feed operators implement traceability systems and procedures which will enable them to identify where their products have come from and where they are going, as well as to be able to rapidly provide this necessary information to competent authorities when required. Further, labelling laws applicable in the EU now require all ingredients to be identified irrespective of the quantity. Traceability by itself does not provide product information, but rather is a tool that makes it possible to trace information along the supply chain. A traceability system tracks and traces food, feed, ingredients and packaging through all stages of production, and records the processes applied along the way, by who, where, when and how. Thus, traceability can be used as a mechanism to trace potentially Haram ingredients, as well as validate and authenticate that a product is indeed Halal. The growing concern for consumer safety has led to the development of numerous food safety standards. All the standards generally recognise and address key elements in ensuring food safety along the supply chain. 46 THE HALAL JOURNAL | MAY/JUNE 2008
F4.indd 46
5/8/08 1:10:23 AM
Additional information such as Halal production guidelines and Halal product databases should be established to identify whether or not a product is Halal, Haram or Mashbooh, and should describe the needs of production within the principles of Islam. Traceability systems can define the type of information required, and at which step along the supply chain it should be collected. Implementation of such systems can clearly identify critical steps or control points with the aim of substantiating claims of authenticity. Information can be in any specifications – data, analytical or non-analytical, certificates – all of which can be assigned a unique number.
Having a traceability system does not eliminate need for inspection; rather, it is meant to complement any existing system. Traceability ensures the tracking of all certification requests, compliance documents and assessment results, while also allowing retrieval of authorised information from any stage of the supply chain or from other data sources. This function can support the process of attaining certification as well as audits.
product businesses and ensure access to premium markets. Nevertheless, the implementation of traceability need not be complicated. In principle, traceability is a system that keeps records of previous and subsequent links. Smallholders can manage traceability by combining the use of paper with electronic traceability. E-traceability can facilitate a growing business in the management of documentation to
TRACEABILITY SYSTEMS can define the type of information required, and at which step along the supply chain it should be collected. Implementation of such systems can clearly identify critical steps or control points with the aim of substantiating claims of authenticity.
A Halal database typically consists of a list of materials used for food production, information on the source of the material and the preparation of the materials as well as its Halal status. The database may be classified into categories as defined by “clearly Halal” or “may be suspected Mashbooh”. A Halal food traceability system should be based on a set of guidelines that clearly defines and addresses the requirements of manufacturing within the principles of Islam. Guidelines address the general regulation of Halal foods and standard procedures for the preparation and production of Halal food, starting from the organisation, people, training and practice applied. Ingredient and product movement and processes need to be recorded in terms of input (feeds, fertilisers, pesticides, treatments and medication); storage (location, condition and facilities); segregation; processing (method, controls and standards adherence); transportation (service provider, good practice, history and background); packaging (material and process), and labelling. Further, the criteria for slaughter and the requirement for qualified inspectors or supervisors to be onsite should be defined along with any unacceptable practices. Specific regulations, procedures and requirements may apply for food additives with complex origin. Information and data captured is typically stored in a secure and dedicated area, called a repository. A traceability system links the data together, providing a flow of information. The assignment of the unique identifiers, or traceable element, can then be used for a specific and targeted identification of source of Haram contaminants, in the adverse event of a withdrawal or recall having to be instigated.
Regulatory enforcers and auditors can have access to systematic and complete information about the premise, product and processes applied. Traceability will also facilitate foreign trade as customs officers can more reliably ascertain the product origin. A good and provable traceability system is both a risk management tool and a marketing tool. Traceability is a critical requirement to meeting the growing need to authenticate Halal products and ensure the integrity of Halal compliance by producers and others involved in the supply chain. By implementing traceability, producers of Halal products can increase competitiveness by providing consumer assurance and protection – by having a supported and verifiable claim of Halal, safe and quality food. With increased competition, traceability can provide the muchneeded differentiator for Halal
comply with numerous standards, whilst ensuring adherence to ever-increasing requirements. Traceability ensures the authenticity of information from one point to another in the supply chain. Consumers can gain access to information and be assured that the food they buy has been closely monitored from the point of origin of ingredients, that food safety and quality control measures have been applied, and that Halal control points have been observed and documented throughout the supply chain. By means of comprehensive traceability in the Halal supply chain, consumers can be confident that there are no missing links of information. Consumers will be certain that products come from known and qualified resources, and will be able to exercise real choice in terms of the assurance and authenticity delivered by hj the selected Halal brands.
WRITER’S PROFILE: Fe Jazzareen Mor Japar Khan is a Food Industry consultant for Yakin IT Sdn Bhd, a company dedicated to the enhancement of quality in private and public organisations through an intelligent use of advanced information technology and the pursuit of Halal principles. She holds a BSc (Hons) in Applied Chemistry from Universiti Kebangsaan Malaysia. Fe has served in a multinational fast moving consumer goods (FMCG) company as Product Development Manager, and has provided training in GMP, HACCP, Food Sanitation and Hygiene and Quality Management. Her responsibilities include that of auditor and technical trainer. Fe has extensive experience in developing Halal food products for large-scale operations. She is contactable via email at fe@yakin.my. THE HALAL JOURNAL | MAY/JUNE 2008
F4.indd 47
47
5/8/08 1:10:36 AM
MALAYSIA HALAL PARKS
I
t is estimated that the global Halal market is worth US$ 580 billion and the number of Muslims is expected to grow over the years. To take advantage of this market demand, Malaysia has come up with an initiative of developing Halal parks dedicated industrial sites that focus on the production of Halal products. Some of these parks will be equipped with worldclass facilities that include downstream production, shared facilities and infrastructure, knowledge transfer and research and development facilities, linkages to diseasefree agriculture areas and transhipment free trade zones. Due to these shared
services, the producers will enjoy reduced operating costs, which will translate into higher productivity, efficiency and effectiveness. That is why a systematic development of the Halal parks is now becoming a national priority, and a cornerstone of the overall Halal hub programme. The Halal Coordination Committee under the Malaysian Ministry of International Trade and Industry recently listed 12 different Halal Park projects. In the Ninth Malaysian Plan, six Halal Park projects were mentioned to be built in Kedah, Perlis, Kelantan, Terengganu, Labuan and Pahang. Meanwhile, in the 2007 Budget Announcement, RM150 million was allocated for Halal Park developments, under the
Words By AHMAD KHAIROL SHAFIZAN JOHARI
Ministry of Entrepreneurial and Cooperative Development and Ministry of Federal Territory. Apart from creating more supply for Halal products, these projects will also ensure that Malaysia can achieve its target in becoming an international Halal hub by the year 2020, in line with the objectives outlined in IMP3. WHAT IS A HALAL PARK? Malaysian Halal Parks are broken down to four types; namely Halal hub, Halal distributive food park, Halal park, and Halal food park. A Halal Hub is a dedicated international trading house for both physical and nonphysical trading to be utilised by producers, importers, exporters, industry players,
48 THE HALAL JOURNAL | MAY/JUNE 2008
F5.indd 48
5/8/08 1:20:43 AM
MALAYSIA FOODSERVICE SECTOR REPORT RM1,000 AVAILABLE NOW
KasehDia Consulting also offers comprehensive reports on the following sectors: * Foodservices * Food and Beverage * Agriculture
For more information, email us at info@kasehdia.com.
THE HALAL MARKET SPECIALIST K A S E H D I A S D N B H D • 3 1 - 2 Pl a z a C r ys t a l v i l l e, Jalan 22a/70a, Desa Sri Hartamas, 50480 Kuala Lumpur Malaysia • Tel +603 6203 1025 • Fax +603 6203 4072 • email: info@kasehdia.com • www.kasehdia.com
KDCON half.indd 1
5/7/08 2:38:44 AM
Halal Parks are areas built specifically for the purpose of production, processing, packaging, storage and logistics services for Halal products. PHFP will also provide central common services including certification, quality standards and quality assurance that can be facilitated to all players within the park. traders, scholars, scientists and so on. Facilities in the hub must comply with international standards, free trade zone to facilitate investments and a dedicated Part Team Management that includes Halal Certification, local licensing, investment availability, wastewater management, logistics and transportation, security and basic utilities, as well as amenities. Meanwhile, a Halal Distributive Food Park is an area where Halal products are collected, packed, repacked, branded, and stored for the purpose of distribution. Most importantly, this facility will have traceability and analysis technology for Halal products from the point of production to the customers. Halal Parks are areas built specifically for the purpose of production, processing, packaging, storage and logistics services for Halal products, which will include food and beverages, cosmetics, pharmaceuticals, nutraceuticals and many more. It will also support the research and developments activities by both local and international institutions. These parks will also be supported with the latest technology for Halal analysis as well as traceability of Halal products. Finally there are the Halal food parks, which are dedicated to the production of local Halal food or products from local players in the industry. Thus far, only one Halal park project has been launched and almost 20 projects are in the planning or developing stage. The launched project is the Prima Halal Food Park (PHFP) in Pahang. Launched in 2007, the 100-acre PHFP aims to be the production hub of the Halal delicatessen and meat products for the world market. To fulfil that ambition, it will provide 68 factory units allocated for small and medium size enterprises (SMEs). The SMEs will, in turn, own the factory units and benefit from the facilities provided by the food park. They will also be in charge of the production and manufacturing of the Halal meat-based products. As the pioneer of the Halal Food Park, PHFP will focus on producing more value added meatbased products to complement the escalating
global demand.It is situated at the Gambang Industrial Area, approximately 20 kilometres from Kuantan, capital of Pahang and 150 minutes by road to Kuala Lumpur. The PHFP will be built with a capacity of 64,200 metric tonnes annually, categorised into 23 product categories, which will include sausages, cold cuts, marinated products, prepared frozen meals and others. The park will also exercise central common facilities that will ease the manufacturing processes within the parks. Among facilities available are Finished Product Storage and Finished Products Packing Centre, Raw Material Storage Freezer, Refrigerated Transportation and other logistics support as well as administrative and service building, which include offices for government agencies and regulatory bodies and more. PHFP will also provide central common services including certification, quality standards and quality assurance that can be facilitated to all players within the park. The common service also comprises of liaising with the government bodies to provide auditing, monitoring and accreditation to comply with national and international certification such as Halal, ISO, HACCP, VM and EU. This service will enable manufacturers to reduce their operating costs and at the same time ensure better food safety and biological security. Producers who embark in this
lucrative industry will also enjoy competitive advantages including strategic location, presence of park management team, technical training centers , conducive manufacturing environment , land matters properly address such as status, toll, taxes, and presence of exclusive investment and licensing authority. HALAL INDUSTRY DEVELOPMENT CORPORATION: THE KEY TO THE MALAYSIAN HALAL AGENDA As a one-stop agency of the Halal industry in Malaysia, the Halal Industry Development Corporation (HDC) will play a more significant role in assisting all Halal parks in terms of development and marketing programme. Apart from that, HDC is also expected to announce the incentives to all Halal operators and producers regardless whether they operate inside or outside the parks. This will attract local as well as foreign investors to take part in this lucrative industry. It is also expected that HDC will come out with a guideline for Halal park development. Despite handling Halal certification and logo for both local and international needs, the corporation will also streamline all parks in Malaysia, which in turn bridges and link all parks in the country. This exercise will also help cluster all parks according to size and type. This effort will avoid competitions between parks and promote cooperation that in the end will further expand the industry. hj
50 THE HALAL JOURNAL | MAY/JUNE 2008
F5.indd 50
5/8/08 1:23:52 AM
AD HJ.indd 2
5/7/08 9:07:09 PM
fast track | AMERICAS
American Universities going Halal
BY HARIZ KAMAL
Being a student means being able to balance work and play, academics and sports. It also means being able to manage a balanced diet. However, some Muslim university students in the United States find that their campuses have difficulty in accommodating their Halal dietary requirements. BUT THIS SCENARIO IS changing due to the increasing presence of Muslim students and their active Muslim Student Associations (MSAs). Campus dining halls, bistros and cafés are now striving to supply Halal food to students in the universities. “Dining services is making it a priority to become a comprehensive provider and students have said they appreciate our interest,” said Ken Toong, the Executive Director of Dining Services in the University of Massachusetts (UMass). This year, Halal food was made available at UMass simply because students took the initiative to ask for it. Providing Halal food
on campus has become a positive trend, due largely to a Halal Food Research Study conducted by the MSA in George Mason University. In the study, 48 per cent of participants said they would not eat on campus as long as Halal meals were unavailable. Some students said they left dining halls just as hungry as when they walked in, simply because there was limited or even no available Halal food . The University Park campus in Penn State University also started offering Halal certified food last January, after a graduate student noticed there was only one restaurant in the area that sold Halal food. Representatives from the MSA and Penn State’s Campus
Food Services then joined forces to offer Halal-certified foods in Warnock Commons. There is a similar programme at Stony Brook University in New York where Halal food is being provided. Princeton University also did not want to be left behind, and its Office of Religious Life is working towards providing more Halal food in its dining halls. Before Halal food was made available, students had to resort to a vegetarian or kosher diet. They sometimes had to settle for their lunch leftovers as their dinner because Halal food could only be found far from campus. Students require fast and easy access to Halal food, so these recent measures are also
helping them to manage their time better. Universities are not just a place for formal learning but also informal learning. This usually takes place in areas where students mingle, such as the common room café, dining hall and so on. Thus, with the availability of Halal food, Muslim students are being indirectly integrated into campus life and exposed to a culture that they might not understand or know much about. Introducing the Halal concept also educates other students who are not familiar with it, which helps to correct the myriad misconceptions many have about Muslims.
52 THE HALAL JOURNAL | MAY/JUNE 2008
FT.indd 52
5/8/08 1:24:38 AM
AD HJ.indd 2
5/8/08 2:37:03 AM
fast track | AMERICAS
The Uruguayan Beef Industry URUGUAY which borders Argentina and Brazil, the Atlantic Ocean and the river Plate, is a green, gently undulating country that stretches from parallels 30 to 35 latitude south, with a population of 3.3 million. Covering an area of about 180,000 square kilometres, it is the smallest country in South America, although its size is close to that of Peninsular of Malaysia. Uruguay has a very stable political and socio economic systems, deeply rooted democratic traditions and high social indicators. Rated amongst the highest in developing countries by the United Nations Development Programme, or UNDP, in its Human Development Index, it has a Gross Domestic Product (GDP) per capita similar to Malaysia’s. Its fertile plains are covered with excellent pastures being grazed by about 12 million heads of cattle and as many sheep. Needless to say, Uruguayans are meat eaters, having one of the highest per capita consumption of animal proteins. Cattle rearing have been a key feature in the history of Uruguay; it was instrumental to the settlement of the Spanish and Portuguese. Ambassador of Uruguay to Malaysia, Pablo Sader, said, “Interestingly, the first European settlers in the country were not human beings, but cattle and horses introduced by the then Governor of Asuncion who, in the early seventeenth century saw the potential in the territory’s vast grasslands. Therefore, we are talking of a three centuries old tradition of cattle industry and beef exporting.”
URUGUAYAN BEEF In Uruguay, 80 per cent of its 16 million hectares of agricultural land is devoted to livestock. Uruguay cattle stock in 2007 reached 11.6 million heads with a slaughter rate of about 23 per cent; over 75 per cent of beef are exported. With 383.000 tonnes (carcass weight) worth around USD1 billion in 2007, Uruguay is the world’s top ten beef exporters. This year, according to first quarter figures, Uruguay is poised to go past its record of 500.000 tonnes posted in 2006. Beef is the country’s main export, accounting for about 19 per cent of the total exports. Uruguay exports to 80 of the most sophisticated and demanding markets in the world, the United States, Russia, European Union, Canada, Mexico and Brazil topping the importers list. Uruguay has succeeded in earning the trust of the markets based on its safe, natural and sustainable production systems. Uruguay ranks sixth in the World Environment Ranking – its hydrographical system considered the second largest clean water supply in the world; animals live in the open all year round. Without confinement, each cattle enjoys the equivalent of two soccer fields for grazing of rich native pastures. With quality a top priority in Uruguay, their natural extra-lean beef combines a high standard of nutritional value with a distinctive flavour. Uruguayan companies have developed special certified products, including Uruguayan Natural meat, Uruguayan Hereford beef, Uruguayan Angus Beef and Uruguayan Organic Beef – all guaranteed by prestigious international
Uruguay has succeeded in earning the trust of the markets based on its safe, natural and sustainable production systems. accepted certifying firms. Free from Foot and Mouth disease with vaccination, Uruguay is also one of the four countries recognised as completely free from Bovine Spongiform Encephalopathy, or Mad Cow Disease. Uruguan law prohibits the use of growth hormones and animal proteins in feed, and antibiotics in feed have been banned. Thus, it is safe to say that Uruguayan beef is safe for human consumption, and is recommended for a healthy diet because of low levels of fat with 77 per cent cholesterol-reducing “good fats”. All beef has zinc, iron and B-vitamin, but Uruguay’s beef also has elevated levels of Omega-3 fatty acids and Conjugated Linoleic Acid (CLA). Uruguay uses high technology, particularly with its groundbreaking, highly developed and effective cattle identification tracking system from ranch to harvest that gives the consumer every guarantee needed.
BEEF EXPORTS TO MALAYSIA From 2004 onwards, the export curve to Malaysia is
ascending. Uruguay is the second largest supply of frozen beef to Malaysia, reaching 3.8 thousand tons and about USD8 million in 2007. In the first three months of 2008, there has been a remarkable growth to 2.75 thousand tonnes worth USD6 million. Malaysia imports about 1 percent of Uruguay beef exports and certainly has the potential to grow indeed as a market.
HALAL INDUSTRY Uruguay has been exporting Halal certified beef and mutton for decades to Islamic countries or countries with a sizable Muslim population. The certifying entity is the Islamic Council of Uruguay. Its protocols have been approved by Malaysia in 2003. Uruguay considers Malaysia, with its internationally recognised Halal standard, as a considerable important Halal hub. Therefore, National Meat Board of Uruguay (INAC) has agreed to participate in the World Halal forum 2008. This is a follow on from the state visit of President Tabaré Vazquez to Malaysia in November 2007.
54 THE HALAL JOURNAL | MAY/JUNE 2008
FT.indd 54
5/8/08 1:32:51 AM
AD HJ.indd 55
5/7/08 1:02:59 AM
fast track | MIDDLE EAST
Halal Tourism: Knowledgeable travel and wholesome fun Halal tourism as permissible under Islam are Halal activities, Halal airlines, Halal food, and Halal/Shariahcompliant hotels. Halal tourism is mostly targeted for the Muslim market that includes Arabs from GCC (Gulf Cooperation Council) countries; Europeans and Malaysians Muslim Dubai-based professional. Although Halal tourism is focussing on Muslim market, non-Muslims are also welcome to experience Halal tourism. Halal tourism could also be viewed as another of seeking Islamic knowledge. BY ZAAHIRA MUHAMMAD
HALAL TOURISM activities can be defined as those in accordance with principles and traditions of Islam. Halal activities range from Muslim historical site visits, to Hajj travel, which is the traditional Muslim pilgrimage to Mecca (the holiest city in Islam). Most pilgrims tends to visit other holy sites, notably where the prophet had lived and taught from the time
he was driven out of Mecca until his triumphant return. The Hajj can only be completed during the Islamic month of Dhu al-Hijjah. A pilgrimage to Mecca at any other time is known as Umrah and while not compulsory, is highly recommended for Muslims, taking into account financial capability. There are quite a number of historical sites to visit in the
Middle East, one such being the Blue Mosque in Turkey. The Blue Mosque is considered one of the most beautiful mosques in the world and one of the very few to have six minarets. Outside Middle East, Europe and Asia also has magnificent historical sites, such as the Taj Mahal in India and Alhambra in Spain. Halal activities are not only beneficial to Muslims but
also to non-Muslims travelling alone or with families in terms of its educational value. These activities give non-Muslims a deeper knowledge of Islam in terms of the history of Islamic civilisation, social structure, lifestyle, and culture. Ecotourism, also known as ecological tourism, is a form of tourism appealing to the ecologically and socially conscious individuals. In
56 THE HALAL JOURNAL | MAY/JUNE 2008
FT.indd 56
5/8/08 1:33:22 AM
fast track | MIDDLE EAST
addition to considering envir onmental and cultural factors, an integral part of ecotourism is in the promotion of recycling, energy efficiency, water conservation, and creation of economic opportunities for the local communities. Ecotourism can be considered as a Halal activity since it conforms to the Tayyib concept, whereby travellers gets closer to nature and gains a level of awareness on the need to protect the environment. Humans regardless of religion, race and culture, are vicegerents on earth and protecting the environment is a onerous responsibility and this is exactly what the Tayyib concept is all about – wholesome. This absolutely complements the holistic approach of the Halal concept. Generally speaking, ecotourism focuses on volunteering, personal growth, and learning new ways to live on this planet Earth; typically involving travel to destinations where protected and preserved flora, fauna, and cultural heritage are the main attractions. What better and quicker way to travel if not by air? Airline services are indeed pivotal in the tourism industry. Airlines such as Emirates, Gulf Air, Qatar Airways, and Malaysian Airlines see the importance and provide Halal services to take advantage of opportunities arising. They provide facilities for travellers to pray and serve Halal food. Malaysian Airline’s primary commitment is on Halal quality and safety/integrity of cabin food, serving meals of the highest standards and delivering quality in-flight services meeting customers’ satisfaction. Royal Brunei Airlines (RBA) serves Halal products as well; meats slaughtered and meals prepared according to the Islamic law. RBA being the
national airline of Brunei is known for its strictness on Halal products entering and leaving its country. Aside from Halal meals, RBA also provides the travel recitation before departure. Consequently, investors from the Middle East bring with them Islam’s heritage and hospitality in the form of Shariah-compliant hotel as an emerging trend. A Shariahcompliant hotel is one that is funded by Islamic Finance, not serving alcohol and caters Halal food. In creating a brand identity, Islamic arts and culture plays an important role. Hotels in Kuwait, Saudi Arabia and Yemen have always adhered to these principles. Now regional business leaders in GCC states are creating hotel brands which will provide Islamic hospitality locally and internationally. Al Jawhara Hotel Apartments in Dubai, offers its lodgers Islamic hospitality. The hotel’s concept is to provide a pure and Halal atmosphere and is the first of its kind in Dubai. Al Jawhara does not serve alcohol, and from cleaning of the hotel to the accounting, everything adheres to Islamic and Halal concept. Al Jawhara is not the only hotel that applies Islamic and Halal concept. The Taj Palace Hotel, Dubai also does not serve alcohol to its guests. A wide selection of delicious dishes and refreshing non-alcoholic drinks are available for guests to enjoy during their stay. The Taj offers a unique dining experience, one which explores the slight variation between identities of the finest Halal Indian and international cuisines, serving traditional and contemporary favourites. All these developments makes it clear that Islamic way of life or beliefs are being taken into consideration by many countries, with the concept of Islamic hospitality applied in countries outside the Middle East as well.
The question now is: Which is the best way to learn about other cultures and religions if not by experiencing them oneself? What better way if not by travelling? With all these Halal tourism services and destinations, participating in Halal tourism is clearly the way for learning and experiencing Islam, because it creates a better understanding on not only Islam and Muslims, but also the geography, history, cultural differences, lifestyles and of course the concept of Halal. Nothing beats travelling to different parts of the world and witnessing other cultures, religions and lifestyles with your own trusty eyes. Many may perceive Halal tourism as rigid and dull, but, in actual fact, it is all about good and wholesome fun. It is merely your normal everyday travelling complying with Islamic principles.
Generally speaking, ecotourism focuses on volunteering, personal growth, and learning new ways to live on this planet Earth; typically involving travel to destinations where protected and preserved flora, fauna, and cultural heritage are the main attractions.
THE HALAL JOURNAL | MAY/JUNE 2008
FT.indd 57
57
5/8/08 1:33:36 AM
fast track | EUROPE
Opportunities and threats for the Halal market in France BY DR CEDOMIR NESTOROVIC, ESSEC BUSINESS SCHOOL
Western countries represent an enigma for all professionals involved in the Halal business. On one hand, it is a land of tremendous opportunities, posting a substantial increase year after year. Yet at the same time, numerous obstacles prevent an explosion of this market. MCDONALD’S, which operates in a number of Muslim countries, hesitates to introduce Halal menus in Western countries. Lactalis, the largest dairy company in Europe with a presence in Algeria, Egypt and Saudi Arabia, does not sell Halal products in France, the country with the largest Muslim population in Europe. This means that even giant companies with significant experience in Halal food do not dare have a visible and substantial Halal offering in Western countries. There must be reasons for this and we will try to balance opportunities and threats
existing in this sector. Opportunities are indeed enormous because of fears associated with food and especially meat in France. Of course, Halal products primarily target Muslim consumers. There is currently a proliferation of initiatives in this sector and, for the latest Ramadan, the hypermarkets Cora and Carrefour in France had no less than 200 different Halal products coming from brands such as Isla Delice, Duc, Oriental Viandes, Knorr, Lacteor and Maggi. Another French hypermarket called Casino followed a move from Carrefour and proposed a
lamb product for Eid ul Adha. This lamb, hand slaughtered without electronarcosis, was available on December 19th, 2007 at 16:30 exactly (after prayers) for a fixed price of 165 Euro (USD258) for a carcass weighing 17 to 20 kg. Contrary to previous years when information about Halal practices or offers was scarce, young Muslim consumers today have a variety of means of getting and exchanging information (via satellite TV chains, websites, blogs and so on) and they are more keen to buy Halal food than their parents. The market is much larger if we consider all consumers in
the European Union. Constant reports about BSE or mad cow disease, or avian influenza are making consumers more nervous about the origin of the meat they are eating. They are increasingly interested in organic or healthy products guaranteeing fair-trade practices and sustainable development. This concern is not only about food but also about cosmetics. One of the most recent moves is the launching of the first Halal cometics line under the name “Jamal’”, with a certificate from the Great Mosque of Paris. About a dozen products are present in the strategic Auchan
58 THE HALAL JOURNAL | MAY/JUNE 2008
FT.indd 58
5/8/08 1:34:03 AM
fast track | EUROPE
The potential for Halal products in France is the largest in Europe with more than 5 million Muslims living in the country and earning more than 15,000 Euro per person annually. This market is fragmented and badly needs regulation, but the political side is reluctant to interfere because of the secular nature of the country.
hypermarket at La Défense (the French Manhattan near Paris) and carry the following statement: “All products in the Jamal range are certified to be free of alcohol and animal fat. They are developed without paraben or allergen. Products are not tested on animals”. These arguments are not only of interest to Muslims but also to non-Muslims and this is one of the main aims of the founders of Jamal. All experts are forecasting severe food shortages in various parts of the world and western consumers are concerned about the quality and quantity of food they are eating. Here again, religion is not relevant. Everybody is concerned with these issues and when it comes to quality, it might be useful to switch from the “pure Halal concept” to a “Tayyib concept”, meaning wholesome and pleasant. Non-Muslim consumers who could be wary of buying Halal food or are simply
not interested in buying something associated with religious slaughtering may be interested in buying delicious and organic food under the term ‘Tayyib’. Nevertheless, some drawbacks still exist, including the lack of an acceptable Halal certificate and political problems that owners of retail outlets face. The Halal certificate is theoretically not compulsory and this is why some butchers still avoid it by saying that they are open to investigation by their clients. However, consumers going to hypermarkets badly need one certificate they can trust, rather than a large number coming from mosques or associations and private companies. This is one serious limit to the development of Halal food, especially when we consider how cacherut is organised in France when a Consistoire established by Napoleon in 1808 gave
birth to the KBDP (“Kasherut” certified by the Beth Din of Paris). There is currently some antagonism between Mosques and associations in France because of the money involved in the certification. If companies have to pay from five to seven cents more per kilo of meat certified, and if the consumption in France is assumed to be about 150,000 tonnes, the worth would be 9 million Euro. The second problem is a political one. Retailers are afraid to have a large and permanent offering of Halal products because they fear a backlash from non-Muslim customers, who could switch to another retailer because they feel that their usual retailers are not addressing them anymore. Also, an attempt by a franchise of Franprix (a supermarket chain) in 2002 in Evry near Paris, to have a 100 per cent Halal offering (excluding pork and alcohol)
was quickly transformed into a political affair. The mayor of Evry asked the retailer to reintroduce these products in order to serve the whole community. When the retailer refused, the mayor shut down the store, arguing poor hygienic conditions. Since then, French retailers are reluctant to give too much visibility to the Halal range of goods or to even put Halal and kosher food side by side. The potential for Halal products in France is the largest in Europe with more than 5 million Muslims living in the country and earning more than 15,000 Euro per person annually. This market is fragmented and badly needs regulation, but the political side is reluctant to interfere because of the secular nature of the country. Thus, the potential remains unexplored to its full capacity.
THE HALAL JOURNAL | MAY/JUNE 2008
FT.indd 59
59
5/8/08 1:34:26 AM
fast track | EUROPE
Turkey: Plight of Pork Butchers and Pig Farms…why? BY SAIF AL ASWAD
Turkey is one of the few countries in the world where such high Muslim population is so well industrialised, and as the article mentioned, there were only some 2,000 consumers of pork in that one city.
THE PLIGHT of pork butchers and pig farmers in Turkey was brought to light in a recent article published on the BBC.co.uk entitled ‘The demise of Turkey’s pork butchers’. The relatively small percentage of the population that is interested in porkbased products must be so small that it requiring such investigative reporting. Nevertheless, the article is timely; Turkey is currently actively looking at playing an increasing bigger role in the global Halal market. There have been two major events contributing to the understanding of Halal in Turkey of late. On 1 November 2007, the World Halal Forum (WHF) Secretariat conducted a WHFIndustry Dialogue in Istanbul, where many issues were raised. At this dialogue, it was clear that the Halal concept is still relatively new to Turkey, but will catch on very fast once the manufacturers and brand owners realised that this is a gateway to their customers. Following the 11th OIC Summit in Senegal where the Islamic Chamber of Commerce and Industry (ICCI) was entrusted with the implementation of Halal throughout the OIC, Turkey hosted a meeting to better understand the concept of Halal standards. The next meeting will be hosted by ICCI in Jeddah in February 2009. So, why are the pork butchers finding it so
hard to do business? The article quoted a local reasoning, “It is about Islam.” Well, yes and no. It could be seen from a purely religious resurgence angle or it could be seen from a more far-reaching angle – the business angle. The business of supplying Halal food to hundreds of millions of Muslims around the world; and one key component of that group is the millions of Turks living abroad in cities throughout Europe having high disposable income. This argument has a lot more credence. Berlin is now the second largest Turkish city, not Ankara. The Turkish nation has spread its wings all over the world. Understanding the make up of these people being immigrants, and then first and second generations and so forth, is important when analysing the broader spectrum. These Turks, historically Muslim, are now in a foreign land and they want to have something which they can identify with their homeland. It could be an array of things – music, language, or fashion; but the most ingrained that they can easily identify with is food, Turkish food, Halal Turkish food. However, due to numerous “Halal Food Scandals” where pork was found in so- called Halal products, confidence has eroded. This explains why Turkey is now looking at developing its own domestic Halal certification body that will certify Turkish products
that will reach out to the global Turkish community. Turkey is one of the few countries in the world where such high Muslim population is so well industrialised, and as the article mentioned, there were only some 2,000 consumers of pork in that one city. It is simple economics; the economies of scale where a market with high demand are absent. To risk the potential returns of the global Halal market for a few thousand people would be hardly clever. So out comes the classic question of the rift between the secular and the religious Turks. Why not? After all, it has been an interesting topic for so long. It is true that many modern day Turks are finding themselves torn between the two. This could be in a large part due to they been taught aspects of religion which are backward and that it takes you nowhere. If the developments in the Halal industry are anything to go by, then that idea is about to be turned on its head. The question remains; which way will the Turkish government go on the issue? To remain on the secular side of the fence, or play an active role in the Halal market?
60 THE HALAL JOURNAL | MAY/JUNE 2008
FT.indd 60
5/8/08 1:34:51 AM
advertorial
TRACEABILITY:
HALAL WE CAN TRUST
T
raceTracker is the world’s leading solutions provider for global traceability solutions. In markets where food safety and consumer confidence are becoming ever more important, TraceTracker has established the Global Traceability Network – an online, decentralised exchange of traceability information between independent players along entire value chains. TraceTracker Innovation AS was founded in 2000 in Oslo, Norway. In 2004, TraceTracker was chosen as the backbone information system in two major current European Union (EU) traceability projects – Trace and Seafood Plus. Today, TraceTracker has more than 75 experts based in 11 offices around the world, including a strong presence in Asia with offices in Singapore, Japan, Vietnam, Thailand, and most recently Malaysia, where the company has merged its operations with NetWhizz to form TraceTracker Malaysia Sdn Bhd. The newly-formed company is headquartered in Technology Park Malaysia, Kuala Lumpur. TraceTracker Malaysia Sdn Bhd was established to develop and implement bespoke solutions for the Malaysian Government, as well as local and regional food industries. TraceTracker Malaysia, a local Bumiputeracontrolled company, was strongly involved in government-funded traceability and food safety projects in the past. It successfully delivered two pioneer projects, namely the Malaysia Food Information and Traceability (MFIT) project under the Ministry of Agriculture and Agro-Based Industry Malaysia (MOA), and the EU Food Export Certification Information System (FEXCIS) under the Ministry of Health (MOH).
DUE TO THE TREMENDOUS POTENTIAL IN FOOD TRACEABILITY FOR BOTH THE GENERIC AND HALAL FOOD INDUSTRIES, CIMB PRIVATE EQUITY AND VENTURE CAPITAL (CPE) HAD EARLIER IN FEBRUARY 2008 TAKEN A MINORITY STAKE OF RM12 MILLION IN TRACETRACKER. These pathfinder food traceability and assurance projects are a key component of the Malaysian Government’s plan to drive exports to the EU and US markets, and to establish Malaysia as the world leader in the Halal food sector for the country’s agriculture producers.
TRACEABILITY AND HALAL PRODUCTS Consumers in Malaysia place great importance on buying food that is Halal-certified. To meet these demands, the Malaysian Government has established mechanisms to secure their confidence by certifying products, food producers, abattoirs, slaughterhouses and food preparation premises as Halal. Being equipped with highly competent resources in the food industry and know-how of the traceability domain has enabled TraceTracker Malaysia to undertake the responsibility of developing an effective Halal traceability system for the industry and government
authorities to adopt. The Global Halal Traceability System, which documents the food traceability process from farm to fork in compliance with Shariah principles, will be developed using the TraceTracker GTNet value chain traceability solution. Due to the tremendous potential in food traceability for both the generic and Halal food industries, CIMB Private Equity and Venture Capital (CPE) had earlier in February 2008 taken a minority stake of RM12 million in TraceTracker. The investment is its first step in setting up a joint venture with TraceTracker to provide expert food traceability solutions to global Halal producers and exporters. Welcoming the move, CEO of CPE Darawati Hussain said that the investment in the Norwegian-based firm is an exciting opportunity since Malaysia is positioning itself to become the world’s premier Halal hub. THE HALAL JOURNAL | MAY/JUNE 2008
Advert-tracker.indd 61
61
5/8/08 2:17:56 AM
fast track | EUROPE
Saaf Pure Skincare - Organic Head-to-toe Skincare Range The launch of the ecologically and ethically formulated skincare range, Saaf Pure Skincare, brings a new twist to ecoluxe as the first and only range in the world that is both organic and Halal-certified. SAAF PURE SKINCARE uses rare, organic, coldpressed botanicals and the finest quality, steam-distilled organic essential oils that have scientifically-proven healing and anti-ageing properties. It also qualifies for Halal accreditation by employing a policy of no alcohol, no GMOs and no irradiation. It is also vegetarian and vegan-approved as well as being cruelty-free and Naturewatch-certified. The founder of Saaf Pure Skincare, Dr Mah Hussain Gambles, started by manufacturing her creams in her kitchen and selling the products through the internet and via mail order to selected UK boutiques. This led to worldwide interest and rapid expansion: “I started to get international interest because Saaf is the world’s first Halal and organiccertified skincare,” she said.
Saaf Pure Skincare is highly effective, totally organic and utterly ethical. Providing the gold standard in organic and ethical skincare, the 100 per cent natural formulations do not contain any chemicals and are totally free of alcohol, while the organic oils used are chosen purely for their therapeutic, healing and regeneration abilities. What they do contain ensures that Saaf Pure Skincare provides the maximum possible levels of natural antioxidants, vitamins, minerals and Omega 3, 6 and 9, all essential to healthy skin function. “If up to 60 per cent of what we put on our skin is absorbed into the body, why not use this to your advantage and feed your skin with healthy and beneficial organic oils?” said Dr Mah, a qualified pharmacologist and homeopath. In development
for four years, Saaf Pure Skincare draws on her combination of expertise to make available a nine-product healing beauty range. The line-up includes: Organic Hydrating Face and Lip Balm; Organic Ultimate Moisture Face Serum; Organic Complexion Boosting Serum; Organic Pure Face Cleanser; Pure Shower Oil; Organic Foot Softening Balm; Organic Eraser Body Oil; Organic Super Hydrating Body Balm, and Organic Enriching Hair Oil. As a skincare specialist with 15 years of experience, Dr Mah’s formulations for Saaf Pure Skincare are based on sound science. Being a woman also allows her the intimate knowledge and understanding of what women want in a skincare range. As Dr Mah said, “Preserving the skin is so important to women because it’s also about self preservation.”
Her pure policy extends through to the packaging as well. Each product is packaged in recyclable glass with peel-off labels for low environmental impact. The chic black cartons can be recycled and even the company’s brochure is made from recycled paper and printed with vegetable-based ink. The premium skincare that is part of Dr Mah’s personal vision of eco-ethical luxury is sleekly packaged in black, with Saaf’s distinctive gold logo. Frosted glass bottles and jars add an elegant touch, reflecting the stylish and discerning customer it attracts. Saaf Pure Skincare is available by mail order and through selected internet and retail outlets. For further details of stockists, please visit www.saafpureskincare.com or call the customer service line on + 44 (0) 0113 2265849.
62 THE HALAL JOURNAL | MAY/JUNE 2008
FT.indd 62
5/8/08 1:35:17 AM
• Master ad HJ.indd 2
4/3/07 6:52:05 AM
fast track | ASIA
The Halal Journal’s Efforts Recognised by the International Islamic Finance Forum in Dubai AT THE RECENT INTERNATIONAL ISLAMIC FINANCE FORUM (IIFF) IN DUBAI, THE HALAL JOURNAL (THJ) WAS ACCORDED THE “CONTINUING MEDIA CONTRIBUTION TO THE HALAL INDUSTRY” AWARD, TO RECOGNISE THJ’S EFFORTS IN PROMOTING THE GLOBAL HALAL INDUSTRY AND IN HIGHLIGHTING ITS MAJOR CONCERNS AND ISSUES. KHAIROL SHAFIZAN TELLS US WHAT THIS ACHIEVEMENT MEANS TO THJ.
THE “CONTINUING MEDIA CONTRIBUTION TO THE HALAL INDUSTRY” AWARD from IIFF contributes to the increased importance and prestige of The Halal Journal. “The fact that The Halal Journal was recognised in Dubai is exciting as it means that we have successfully reached out to readers all over the world, especially to the Arab-speaking nations,” said Nordin Abdullah, executive director of KasehDia, the company that publishes the magazine. The Halal Journal is maintaining its status as the only publication that represents the voice of the Halal sector and provides an overview of the Halal industry; most importantly, it remains the resource and point of reference for the Halal industry globally. This award would hopefully lead to more
interest in the Halal industry as it was a form of recognition given by an Islamic finance forum; thus, it is expected that more banking and financial institutions will start recognising the Halal sector as one well worth investing in. Highlighting that awareness is a major hurdle in such a niche sector, and gaining recognition from Islamic banking and financial institutions should lead to a domino effect. “Once they understand the risk and rewards of investing in the Halal sector,” said Nordin, “they will start lending
money and investing in Halal producing companies, which will ultimately promote the development of the industry.”
MOVING FORWARD With global awareness of the Halal concept growing, KasehDia sees great potential in publishing THJ in Arabic as well as Mandarin. THJ also expects to double its circulation, which currently stands at approximately 1,000 copies worldwide. “I want to see the subscription improve. Where we are now is actually quite a lot for a trade publication, but we
64 THE HALAL JOURNAL | MAY/JUNE 2008
FT.indd 64
5/8/08 1:27:13 AM
fast track | ASIA
are targeting to double that this year,” Nordin said. He is optimistic that this can be achieved through THJ’s adoption of virtual subscribers: “One of the key areas that The Halal Journal has gained established readership from is via its website. At present, online readership is always in the top ten listing of searches for the keyword ‘Halal’ in Google,” he continued. Halaljournal.com records 1,200 visitors daily and THJ foresees an expenditure growth, as seen in the web traffic, which will eventually translate into subscribers. The upcoming World Halal Forum 2008 is also seen as a platform to increase the subscription of the bimonthly magazine. Nordin believes that with more than 1,000 participants at the forum this year, this is not an impossible task: “Increasing the subscribers from two to four thousand is very much
Halal certified
within reach, especially with many companies all over the world now opening their eyes to Halal.” However, he said, KasehDia will not produce a separate publication on Islamic Finance as Halal production and financing should work jointly. “Our key position is in the Halal food market and Shariahcompliant finance sector, which are both part of the same market: the Halal market. Both are Halal-related services. One thing we noticed at IIFF was that people were talking about Shariah compliance, but were not asking the right question. The right question is: is this transaction Halal or Haram?” said Nordin. He also expressed his commitment to staying in this niche publication sector. “The main point of The Halal Journal as a trade publication is to look at how things affect a market. If you look at certain issues like the recent movie
“Our key position is in the Halal food market and Shariah-compliant finance sector, which are both part of the same market: the Halal market.” Fitna, for example – THJ will not talk about its political or social impact, but about its impact on businesses.” The ones who suffered the worst fallout from the film, he pointed out, were clearly Dutch businesses who are, unfortunately, also Halal producers, as well as the farmers and suppliers of these producers. “They are now suffering on the business level,” he said. “We do not ignore other areas; rather, we chose to focus on the business aspect because no one in this industry does. Other publications will look at the news and then sensationalise
the situation,” he said. Receiving the award as a THJ representative, Nordin extended his gratitude to the people – past and present – who had been involved with The Halal Journal, namely its writers, distributors, production designers and everyone involved in making the magazine what it is today. Nordin also gave special thanks to advertisers in The Halal Journal, “because through the advertisers’ support were we able to produce a quality magazine and hope to continue its success, taking The Halal Journal and the Halal brand to the world.”
Volys Star
premium cooked poultry products Turkey breakfast meat Meal components Premium charcuterie products
Volys Star nv, Oudstrijderslaan 11 - 8860 Lendelede - Belgium - Tel. + 32 51 33 50 30 - Fax + 32 51 31 48 15 - e-mail: sales.export@volysstar.be THE HALAL JOURNAL | MAY/JUNE 2008 65 FT.indd 65
5/8/08 1:27:33 AM
fast track | ASIA
Malaysian Halal Certification Changes Hands In one of the most proactive steps being made to take full advantage of the growth in demand for Halal products and services, the Malaysian Government decided that the issuance of Halal certification will be moved from the Department of Islamic Development Malaysia (JAKIM) to the Halal Industry Development Corporation (HDC).
Official handover from JAKIM to HDC
JAKIM CERTIFICATION has long been one of Malaysia’s strengths as it is one of the few Muslim nations that issues a governmentbacked Halal certificate. Unlike many other countries, Malaysia also has much of the related Halal certification and standards infrastructure in place and is in a position to use it to implement this change. While many countries are looking at the religious approach in the issue of Halal certification, Malaysia will be taking a standards and service-based approach that is augmented by a strong religious understanding. This is also seen as one of the structural reforms that Malaysian Prime Minister Dato’ Seri Abdullah Ahmad Badawi has put in place since the Government’s recent election victory. Other fasttracked reforms that have
been implemented include a sweeping review of the judicial system and steps to make the Anti-Corruption Agency (ACA) independent. The Prime Minister recently commented, “The integrity of the certificates was recognised and its standards was also being used by the United Nations. As such, we will not use any other Halal certificates.” In a press conference on 4th April 2008, Minister in the Prime Minister’s Department Datuk Ahmad Zahid Hamidi confirmed that HDC would take over the role of JAKIM Halal certification. “It (HDC) is the organisation that will conduct research and development, issue Halal certification and promote Halal products in Malaysia,” he said. Also at the press conference was JAKIM Director-General Dato’ Wan Mohamad Dato’ Sheikh Abdul
Aziz, who said, “We will work together with the HDC to ensure a smooth handover.” J AKIM will still take part in Malaysia’s ambitions to be a global Halal hub as it will assume the role of Shariah advisor and strengthen its research in this area. JAKIM will also transfer many of the existing staff to HDC to assist in the certification process. Both local and international certification will come under the HDC in a move that will give Malaysian-based manufacturers not only a branding advantage but also higher levels of efficiency. Dato’ Jamil Bidin, HDC Chief Executive Officer, predicted that service levels will drastically increase as a result. “Local certification will be able to be turned around within one month from the date of application,” he said. This will have a direct impact
on manufacturers who need to react quickly to consumer demands and reduce overall marketing time without compromising Halal integrity. It is also expected that Malaysian-based manufacturers will be increasingly able to source Halal raw materials globally. “International Halal certification will also come under the HDC,” he added. This ability to source raw materials from anywhere in the world will create added advantages for Malaysia Halal parks, which are relying on global demand to absorb extra production capacity. It was reported that the same Halal certification logo would be used, as it is a mark owned by the Malaysian Government. The HDC is 100 per cent owned by the Ministry of Finance but reports directly to the Prime Minister’s Department.
66 THE HALAL JOURNAL | MAY/JUNE 2008
FT.indd 66
5/8/08 1:35:58 AM
AD HJ.indd 55
5/7/08 12:57:17 AM
fast track | ASIA
Darabif opens its first fast-food outlet BY ZAAHIRA MUHAMMAD
IT HAS ONLY BEEN A FEW YEARS since Darabif Sdn Bhd, which was incorporated under the Pahang State Government’s initiative to develop the livestock industry, expanded further downstream into meatbased food production and incorporated Darabif Meat Company Sdn Bhd (DMSB) to bring good quality meat to the Malaysian public. Now DMSB Managing Director Wan Hazreek Putra Hussain Yusuf is ready to expand even further, this time into the food service sector. The result is Darabif, the company’s first fast food outlet, at Jalan 23/70A in Desa Sri Hartamas. Darabif’s soft launch party at the outlet saw the people behind the Darabif Group mingling with representatives from the Halal food industry, and most importantly, members of the public. The 28th of April 2008 marked its official launch, where corn
chips and Darabif’s signature dips, called DaraDips and made daily from fresh fruits, were distributed for sampling. According to Hazreek, the outlet was created to educate young people as well as health-conscious urbanites from different age groups on how fast food is not necessarily unhealthy. “Our whole concept is to create fast food which is not only fast and convenient, but also wholesome, and which will basically fulfil your daily nutritional needs,” he said in an interview. “If you look at our menu, all our burgers are actually low in fat, contain more meat and are very high in protein. Even our complimentary products such as the juices are healthy because they are pure with no added water and sugar. We are hoping that when our customers go to our outlet, they will not only get convenience, but also a wholesome and
nutritious meal,” he added. When asked about the difference between Darabif’s fast food outlet and other existing burger joints, Hazreek pointed out that Darabif serves different products such as the Lamb Burger and the Salmon Burger, both the first of their kind in the fast-food industry. As a newcomer to the fast-food sector, Hazreek acknowledged that Darabif did not share some of the characteristics of other
available products. “However, although our products may not be as tasty as others, they are very high in protein, rich in Omega 3, and low in fat. Together with the juices, they provide very good nutritional value for consumers. And that is our main objective,” he said. Darabif is currently looking into providing a delivery service for consumers, and into opening another fast-food outlet in the heart of Kuala Lumpur.
68 THE HALAL JOURNAL | MAY/JUNE 2008
FT.indd 68
5/8/08 1:30:34 AM
advertorial
PAHANG HALAL FOOD COMPLEX, GAMBANG TECHNOLOGY PARK, KUANTAN
P
ahang Halal Food Complex is located within the Gambang Technology Park, approximately 20 kilometers from Kuantan, Pahang, Malaysia, with multiple access points through the new East Coast Expressway, Segamat (Johor)-Pekan (Pahang), and Kuala Lumpur-Kuantan principal road. Malaysian Federal Government, through its Ministry of Entrepreneurial and Cooperative Development, had allocated RM11 million under the Ninth Malaysia Plan to develop thisomplex. Pahang State Development Corporation (PKNP) runs this complex, located on 26.70 acres of land. PKNP is committed towards working with other corporation and agencies in order to tap Pahang’s Halal potential through the East Coast Economic Region (ECER), a federal government initiative. The Pahang Halal Food Park Complex at Gambang Technology Park is already off to a good start with five companies committing to invest in the first phase (15.61 acres) and set to begin operation as early as November 2009.
The aim of Pahang Halal Food Complex is to be a fully integrated complex ensuring food security by way of Halal monitoring in every aspect of the manufacturing and processing supply chain, from raw material to finished products including Halal storage and delivery logistics. In its first phase, the Halal Complex contains manufacturing plants of two sizes. Two of the five entrepreneurs have taken up 1,314 square metres, whereas the remaining three will utilise 722 square metres each. These companies are in herbs, food, and biscuit processing industry. The aim of Pahang Halal Food Complex is to be a fully integrated complex ensuring food security by way of Halal monitoring in every aspect of the manufacturing and processing supply chain, from raw material to finished products including Halal storage and delivery logistics. The complex will upgrade existing small and medium entrepreneurs (SMEs), by not only preparing them to be proactive but also inculcates
in them, good manufacturing practices, quality and product standards, eligibility for Halal certification, order and discipline. Since the Pahang Halal Food Complex announced its development end of October 2007, it has attracted over 40 entrepreneurs keen to venture into processing various types of Halal food products. These 40 entrepreneurs will be trained by the programmes organised by the Pahang Halal Food Complex committee and the courses module are financial planning, business management, marketing, packaging and related topics. Products manufactured at the complex are initially for local market but in pipeline there are plans to expand and venture into export market some day.
THE HALAL JOURNAL | MAY/JUNE 2008
Advert-PKNP.indd 69
69
5/8/08 2:17:18 AM
fast track | ASIA
China: One Bite at a Time
It is easy to get lost in the sheer enormity of China’s market. In a country of over 1.3 billion people, Muslims make up just over 30 million – unofficial estimates, however, place that number closer to 100 million. IT MAKES SENSE THEN THAT as it strives to become a Halal hub, Malaysia can play the role of a complementary partner to China instead of seeing it as a looming competitor. This can materialise in three key areas. Firstly, according to KasehDia Consulting’s Head of Research and Strategic Projects Irfan Sungkar, Malaysia has the capacity to supply China with palm oil and related products along with value-added Halal meat-based products. Secondly, being an avenue for China to supply to the world is an important option when considering the fact that China does not have the same Halal credentials as Malaysia, especially when it comes to supplying the Middle East. Finally, China will be a net food importer by 2010, so identifying opportunities to assist China to supply food to its own people will be very important, more
so as the country will have to battle rising global food prices and any balance of trade issues in the future. Smart partnerships between the two countries have also been encouraged, for example in cases where there is an ample supply of herds (especially sheep, goat, and cattle) but insufficient infrastructure for slaughtering and transportation to markets. Malaysia has already made some inroads into the Chinese market, leveraging on close diplomatic ties with the country. There are also a few hundred thousand Chinese Muslims in Malaysia – an advantage that many other countries do not have. Malaysia however is not looking at China as one huge market; rather, it is focussing on identified provinces and groups of people that are more receptive to the products and services that Malaysia has to offer.
Maimati Wufuer, China Council for the Promotion of International Trade’s Vice President (Xinjiang chapter) said, “We will be looking into this and there will be a bigger group going there next year,” after attending the MalaysiaChina Business Opportunities in Halal Industry seminar organised by the Malaysia External Trade Development Corporation (MATRADE) in Xinjiang – one of China’s predominantly Muslim regions. In April 2008, a 100strong delegation from the Malay Chamber of Commerce Malaysia (DPMM) met business leaders and government officials at the 12th Investment and Trade Forum for Cooperation between East and West China. Held in the city of Xian, the capital of Shaanxi, the delegation increased trade linkages for Malaysia. Last October, the inaugural World Halal Forum-Industry Dialogue (WHF-ID) in the
Ning Xia autonomous region, which is predominately Muslim, was well received with more than 150 attendants from both China and Malaysia participating in the half-day session. Held in conjunction with the dialogue was the second China Ning Xia International Festival for Halal Food and Muslim Commodities, Investment and Trade Fair. The WHF-ID was also a follow-up from the World Halal Forum, where several companies from both Malaysia and China signed joint venture agreements for the development of herbal-based Halal-grade health care products. The Halal Industry Development Corporation (HDC) also signed a Memorandum of Understanding with the provincial government to improve trade and cultural linkages.
70 THE HALAL JOURNAL | MAY/JUNE 2008
FT.indd 70
5/8/08 1:30:51 AM
MARKET POTENTIAL & EXPORT STRATEGY OF HALAL FOOD PRODUCT FOR THE GLOBAL MARKET • 8 T H J U LY 2 0 0 8 • S H A N G R I L A H O T E L
WHY YOU SHOULD ATTEND
This workshop will be discussing 5 major issues concerning Food & Exporters: Market Characteristics & Demand Potential Consumer Taste, Preference & Perception on Halal Marketing Systems & Distribution Channels Import Regulations & Procedures in the Middle East Tariff & Non- Tariff Barriers
WHO SHOULD ATTEND
Companies who have gained approval to export to the MiddleEast Companies/Parties interested to penetrate the Middle East market Academicians / Researchers / Industry Associations / Consultants
MODULES
MODULE 1 The Blue Ocean: Overview of Global, Regional & Middle East Halal food markets: Characteristics; Impact of trade liberalization and the changing consumer’s demand, taste & preference. MODULE 2 Aligning company strategy with export market penetration process; How to choose the most profitable markets and the importance of “Market Intelligence”; Major factors to be considered when exporting and market segmentation in Middle East. MODULE 3 Understanding market characteristics in each country: Retail markets vis-a-vis foodservice/ institutional buyers and it’s impact to the export penetration strategy; Market positioning and branding strategy; Product differentiation & niche products. MODULE 4 Market access; Tariff and Non-Tariff Barriers; Import regulation & Procedure ; conforming to Halal standards and quality, safety and other requirements . Issues of GMO, vegetable-fed animal and various Halalrelated issues effecting trade and marketing of Halal products. MODULE 5 Case Study and interactive discussions (UAE, Saudi Arabia, Denmark, Brazil, Malaysia & Thailand).
REGISTRATION FORM DETAILS: Company Name Name Designation Address City Website Phone
Postcode
Country
Fax
Signature Please fill in and fax to The Halal Journal Workshop Secretariat 31-2 Plaza Crystalville, Jalan 22a/70a, Desa Sri Hartamas, 50480 Kuala Lumpur MALAYSIA T: +603 6203 1025 F: +603 6203 4072 E: workshop@halaljournal.com www.halaljournal.com For more info on the development of Global Halal Market log on to WWW.HALALJOURNAL.COM
HJWS LEAF-B-HJ.indd 1
www.kasehdia.com
5/7/08 5:43:39 PM
fast track | ASIA
Northport Achieves Continuous Growth NORTHPORT achieved the target of 2.86 million TEUs that was set for handling the volume of containers in 2007, representing almost an 8 percent increase over the volume that was handled in 2006. As a leading national gateway port, 64 percent of the traffic in the volume of containers handled was generated by imports and exports. Transshipment accounted for the remaining volume. Thus, it can be said that both container traffic handled in the national trade and transshipment grew satisfactorily. The growth in container volumes at Northport is incumbent upon, or derived from the growth of the
economy. The growth forecast is reflective of the economy. Northport has performed well and the increase in volume recorded during the year as been positive. It should be noted that Northport is a matured port and is growing from a higher threshold volume and the increase should be considered reasonable under the circumstances. Besides that, Northport also posted record earnings for the financial year ended December 2007. It was a significant improvement from RM634 million turnover and RM158 million PBT that was recorded in 2006. This speaks well of the performance of
Northport in its efforts to focus on value-added services and logistical integration, push for higher productivity and greater efficiencies. As a capable port with a high degree of integration and high productivity, Northport offer better value for money to the customers, particularly discerning global shipping lines that are addressing costs by looking at greater efficiencies in their own transport/ logistics supply chain. The first three month’s traffic figures in 2008 show that the port has registered a 17 percent increase in the container throughput totaling
72 THE HALAL JOURNAL | MAY/JUNE 2008
FT.indd 72
5/8/08 1:32:01 AM
fast track | ASIA
As a capable port with a high degree of integration and high productivity, Northport offer better value for money to the customers, particularly discerning global shipping lines that are addressing costs by looking at greater efficiencies in their own transport/ logistics supply chain. 730,452 TEUs. This growth rate has exceeded expectations (based on the KPI, which had forecasted a 5% increase). It must be said that the increase was more than twice the rate of the growth that was posted for the year 2007. Northport expects to register a strong performance in 2008 as Intra-Asian economies continue to register a positive growth.
of automotive trade, dry bulk, regional and coastal trades via Southpoint.
The focus to move ahead will be centered on:
• Moving up the value chain by fostering greater logistical integration including leveraging on Northport Distripark (with 1 million square feet of covered Free zone warehouse space) and encouraging more multidestination consolidation and promoting Northport as a Halal Hub in compliance with sanctioned religious rules and standards.
• Widening cargo base, including fostering the growth of bulk and conventional cargo as neocargoes such as expansion
• Drive towards higher productivity and greater efficiency, including a re-engineering approach for optimal utilization of
the resources and efficient deployment of equipment as well as acquisition of new equipment and replacements, such as the switch to use rubber tyred gantries (RTG) from the use of straddle carriers (SK); improved yard layouts to foster higher density operations, and also wider application of integrated management system. • Expansion of container terminal handling facilities, notably the conversion of one of the wharves to handle bigger container ships, especially vessels of “Suezmax” class.
Northport’s focus will also be to continue to enhance further the quality of its earnings and offer users better value for money. While Northport is not abandoning any strategy to generate higher growth, a policy of “growth for the sake of growth” will not be pursued. As a viable business concern, Northport’s objective is to ensure that the growth that is attained benefits all stakeholders, especially the customers who have much to gain from using Northport’s services, which are founded on greater cost efficiency.
THE HALAL JOURNAL | MAY/JUNE 2008
FT.indd 73
73
5/8/08 1:32:22 AM
advertorial
adverto
MM VITAOILS
STATE-OF-THE-ARTS FACILITIES
I
n line with its mission to be the largest value-added palm oil-based food products manufacturer in Malaysia, MM Vitaoils Sdn Bhd (MM) is on the right track to capture a bigger slice of the global market as well as maintaining its prominent presence on the home front. This palm oil and edible oil products manufacturer currently markets 99 per cent of its products overseas leaving the rest for local consumption. MM Vitaoils manufactures and exports shortening, cooking oil, margarine, pastry margarine and vegetable ghee. Its Managing Director, Mazlan Muhammad says the company is in 62 countries worldwide after successfully penetrating the Latin America countries such as Venezuela, Brazil, Argentina and Mexico recently. “We have been planning to penetrate the South American market, in order to meet our target of being in 70 countries by 2008” According to him, the American continent including the US market, which MM entered in April 2007, is expected to contribute about 10 per cent to the group’s annual revenue. Europe continues to be MM Vitaoils’ biggest market with 30 per cent followed by Africa and Asia, both 25% each. Russia is fourth with 15% and the Middle East and Australia contribute about 4% and 1% to annual revenue respectively. For 2008, MM Vitaoils is looking for a healthier revenue growth to RM 120 million, driven by additional market segments.
Mazlan’s optimism on the 2008 turnover is proven as the audited 2007 turnover reached RM 86.97 million (2006: RM 57 million) and net profit of RM5.4 million (2006: RM 2.7 million). This translates to 52% growth as MM further expands its overseas market. However, even though MM Vitaoils’ focus is on export market, the company has plans to increase its local supply. “We cannot ignore the huge growth potential of the local market of our high quality products as our nation continues its rapid growth. To reach out to Malaysian, we have organized numerous promotional campaigns to introduce our various products and entice new customers,” Mazlan added. The company has a portfolio of 24 brands, with trademark registration
in Malaysia, South Korea, China, India, the US, Uzbekistan, Africa and Japan. Upcoming brand such as Qualitaste, Golden Treat, Rise & Shine, Blossommm, Marvelloso, Serimas and Palmas are among the Malaysian inhouse brands it promotes.
INTERNATIONAL RECOGNITION As the man at the helm, Mazlan proudly regards the company’s global success as a huge accomplishment for a new player such as MM Vitaoils in the downstream palm oil industry. As the founder of MM, the success is testimony of the vision and strategies of a strong management team. From three employees – it now has about 80 dedicated staff – MM Vitaoils’ biggest success is the recognition of overseas buyers for its quality
74 THE HALAL JOURNAL | MAY/JUNE 2008
Advert-MMV.indd 74
5/8/08 2:15:45 AM
advertorial
“We cannot ignore the huge growth potential of the local market of our high quality products as our nation continues its rapid growth.”
products, resulting in MM Vitaoils penetrating almost all continents. Thanks to the exemplary leadership, Mazlan has steered MM Vitaoils to its current heights and poised for even greater achievement. As a Malaysian grown company, Mazlan describes MM Vitaoils as a vibrant and dynamic organization engaged in fast decisionmaking, growing rapidly and with sound credentials of international sales and marketing of palm oil products, adding that the company adopts a lean and versatile management. Interestingly, prior to MM Vitaoils, Mazlan has had no experience in the palm oil-based industry whatsoever. He was working in a totally different industry - from footwear to airport operator. When he decided to venture into downstream activities
of the palm oil industry, he had to learn within months, formulate his vision, plan his strategies and directions, and set up a manufacturing plant. As a true and passionate retailer and marketer, Mazlan is determined to make MM Vitaoils bigger and is proud that the company has made great progress since it was set up in 1999.
STATE-OF –THEARTS FACILITIES MM Vitaoils operates from its factory in Shah Alam, Selangor. It has one of the most modern plants in Malaysia with a combined capacity of 12,000 tonnes a month, with the advantage of products in different packaging, working in collaboration with the Malaysian Palm Oil Board. MM Vitaoils is accredited with ISO
9001:2000 (since 2005). Hazard Analysis and Critical Control Point (HACCP, since 2007) and Good Manufacturing Practice (GMP, since 2007) from SGS (M) Sdn Bhd. “Our products are packed in different packaging materials such as nylon pouch bags, tubs, cans, jerry cans, pet bottles, carton boxes, drums and flexi tanks. Versatile packing sizes ranging from 10g tubs to 20mt flexi tank, enable us to penetrate a wider market, from household consumers to the food industry,’’ Mazlan explained, adding that the company was planning to install new machinery and packaging lines. “At the same time, we are committed to manufacturing products of the highest quality by applying rigorous standards of product
safety and stringent quality control policies. According to Mazlan, staffs are encouraged to multi-task so it will make them versatile. Leaner management promotes quick decision-making. MM Vitaoils is also aggressively training its marketers to bring its products to a wider international market. “At the same time, we are constantly developing and improving our products and services to offer value in terms of price and consistently superior quality. This is in order to meet specific needs and applications that will help improve the lives of our customer,’’ he concluded. Check out www. mmvitaoils.com.my and www.serimas.com.my to know more about the renowned organization.
THE HALAL JOURNAL | MAY/JUNE 2008
Advert-MMV.indd 75
75
5/8/08 2:16:20 AM
country in focus
The United Kingdom
U
nited Kingdom is well known in the game of football although it cannot be said that the UK (England, Scotland, Wales and Northern Ireland) is a real force in this famous sport, as they did not qualify for the European Championship 2008, and only have won one major football trophy way back in 1966. However, its Premier League is said to be the best league in the world with the best clubs and players. Luring these megastars requires a strong economy and consequently making these football clubs some of the richest football clubs in the world. Often overrated as a strong football nation, UK is however the fifth largest economy of the world, with a gross domestic product (GDP) of US$2,345 billion (Source: World Bank, 2007). The UK is forecasted to enjoy the strongest business environment of all major European economies for the period beginning 2007 to 2011 (Source: Economist Intelligence Unit, 2007), with a population of 60.6 million (Source: Official National Statistics, 2007). The economic growth of UK was 2.8 per cent in 2006 (Source: Official National Statistics, 2007) and was estimated to increase by an average of 3.1 per cent over 2007 (Source: HM Treasury, 2007, average of independent forecasts). Over the last ten years, GDP growth in the UK has regularly outpaced growth in the European Union. The UK is very attractive for foreign investments. The country attracted the second highest amount of foreign investment globally and received US$139.5 billion of foreign direct investment or FDI inflows. This represents 26 per cent of all FDI inflows into the European Union (Source: World Investment Report, UNCTAD, 2007). The Economist Intelligence Unit predicted UK to attract the second highest level of FDI globally between 2007 and 2011 (EIU, 2007). Whereas in 2006, FDI into the UK was more than
US$1,135 billion, which translate to the second highest level of FDI globally, second only to US (Source: World Investment Report, UNCTAD, 2007). Apart that, UK is one of the leading trading nations of the world. It is the second largest exporter and third largest importer of commercial services, and the seventh largest exporter and fourth largest importer of merchandise (Source: World Trade Organization, 2007). Leading destinations for UK products and services include US (16 per cent of all exports), Germany (9.9 per cent) and France (9.7 per cent). Exports of goods and services to the European Union as a whole accounted for around 55 per cent of all UK exports (Source: ONS, The Pink Book, 2007). One emerging service gaining a stronghold in the UK is Islamic finance services. The global Islamic Finance market has grown to over US$200 billion. London is one of the main wholesale transacting and processing centres outside
the Middle East for this market. The development of Islamic finance is signifying changes in the financial market. The UK regulators have no objections in principle to Shariah compliant financial products, therefore major high street banking players such as HSBC and building societies are already in the market with a wide range of Islamic banking products. They have collaborated with Muslim institutions to address regulatory issues, which have so far discouraged the launch of Islamic housing finance and other products. In addition, a working party, comprising of practitioners and representatives of the Muslim Council of Britain (MCB) and Union of Muslim Organisations (UMO) has been formed with the blessing of the Governor of the Bank of England. As a result, the UK government’s latest Budget shows the government remains committed to enhancing London’s position as an international
One emerging service gaining a stronghold in the UK is Islamic finance services. The global Islamic Finance market has grown to over US$200 billion. London is one of the main wholesale transacting and processing centres outside the Middle East for this market.
76 THE HALAL JOURNAL | MAY/JUNE 2008
Cfocus.indd 76
5/8/08 1:37:07 AM
A N I N V I TAT I O N TO J O I N
THE INTERNATIONAL HALAL INTEGRITY ALLIANCE (IHI ALLIANCE) IS AN INTERNATIONAL, NON-PROFIT INITIATIVE CREATED TO REPRESENT THE INTERNATIONAL HALAL INDUSTRY PLAYERS WITH ONE DEFINITIVE VOICE. THE IHI ALLIANCE’S MISSION IS TO STRENGTHEN THE HALAL MARKET AND UPHOLD THE INTEGRITY OF HALAL FOR THE BENEFIT OF ALL. THE IHI ALLIANCE WILL INITIALLY FOCUS ON 5 MAIN PROGRAMS: TO PROMOTE AND DEVELOP BEST PRACTICES FOR ASSURING HALAL INTEGRITY ACROSS THE ENTIRE SUPPLY CHAIN OF THE HALAL INDUSTRY. TO PROMOTE THE UNDERSTANDING AND ACCEPTANCE OF HALAL GOODS AND SERVICES GLOBALLY TO BOTH MUSLIM AND NON-MUSLIM CONSUMERS. TO MAKE HALAL PRODUCTS AND SERVICES MORE WIDELY AVAILABLE ESPECIALLY IN NON-MUSLIM COUNTRIES BY ENCOURAGING MORE MANUFACTURERS/ SERVICE PROVIDERS TO INTRODUCE OR EXPAND HALAL PRODUCT LINES. TO FACILITATE RESEARCH IN CREATING A KNOWLEDGE BASE ON HALAL AND DEVELOPMENT OF NEW PRODUCTS AND TECHNOLOGIES THAT WILL PROVIDE SOLUTIONS FOR HALAL INDUSTRY PLAYERS. TO WORK HARMONIOUSLY WITH VARIOUS GOVERNMENTS IN GLOBAL HUMANITARIAN EFFORTS TO DEVELOP THE HALAL INDUSTRY AND FOSTER INTRA-OIC TRADE. THE IHI ALLIANCE IS NOW INVITING COMPANIES, ORGANISATIONS AND INDIVIDUALS WITH CERTAIN EXPERTISE TO JOIN AS IHI MEMBERS AND HELP BUILD A STRONGER AND ROBUST GLOBAL HALAL INDUSTRY. LOOKING FORWARD TO WELCOMING YOU AS PART OF THE ALLIANCE TO HELP STRENGTHEN THE HALAL MARKET. For more membership details including benefits, categories and fees, please log on to www.ihialliance.org or email to info@ihialliance.org
IHI ad HJ.jpg 2
5/8/08 4:01:31 AM
country in focus
player for Islamic Finance and offering the business community access to competitively priced financial products, regardless of faith. The UK Government through legislative, regulatory and fiscal initiatives and the private sector via new Shariah-compliant institutions such as Gatehouse Plc have made enormous strides towards creating a level playing field for Shariahcompliant finance in the UK. Globally valued at £250 billion, Islamic finance lays down a framework for conducting financial dealings, including a risk and profit-sharing approach and guidelines covering which products can be invested in. Of the 60.6 million of the UK population, approximately 2.8 percent are Muslims. Muslim households have the highest number of children, a quarter (25 percent) of Muslim households consists of three or more dependent children; consequently, making Halal consumers in the UK a growing consumer market. According to Tahira Foods, Europe’s leading producer and distributor of Halal foods, the UK market is worth an estimated £700m a year at retail. Figures released by the Meat and Livestock Commission (MLC) suggest that sheep and poultry accounts for 82 per cent of meat consumption in the British Muslim
community and Muslims consume 20 per cent of sheep meat in the UK. Beef, however, is the smallest sector of the Halal meat market, worth £100 million a year compared to poultry and lamb, which are worth £350 million and £250 million respectively. Consequently, there has been an increase of Halal brands and products re- branded to be Halal. Supermarkets in the UK are also looking to profit from the full potential of Halal products. For example, in 2006, Tesco commenced distribution of its Halal chocolate bars in six of its stores in time for the Muslim festival of Ramadan. The supermarket chain joined forces with Ummah Foods, an East London company that manufactures food compatible with the tenets of Islam. Apart from that, the Halal appreciation in the UK continues with Subway recently opening its first Halal store in Walthamstow, East London; McDonald’s introducing Halal chicken menu at its Southall restaurant; and of course, Nando’s who now uses 100 per cent Halal chicken. There has been a significant rise of Halal restaurants opening across the country, whether Muslim-owned or not, the restaurants are now overtly displaying their Halal credentials. The current consumer trends are towards natural and ethical
Consequently, there has been an increase of Halal brands and products re- branded to be Halal. Supermarkets in the UK are also looking to profit from the full potential of Halal products. For example, in 2006, Tesco commenced distribution of its Halal chocolate bars in six of its stores in time for the Muslim festival of Ramadan. products. Whether its meat or finance, consumers today are willing to pay more for products perceived to be safe and of high quality. This is the essence of the Halal industry, which is the best option in guaranteeing certain standards of welfare and purity. With the UK enjoying steady economic growth, incorporating Halal and Islamic finance in its economic agenda would significantly help the Halal industry, as a whole, grow and develop. The future is indeed bright for Halal in the UK that has, by far, one of the most stable political environments to do business. According to Transparency International, the UK is one of the most transparent (least corrupt) countries in the world. To support this, The World Bank found that it takes 13 days to set up a business in UK, compared to the European average of 32 days. It ranks the UK first in Europe and sixth in the world to operate a business, inevitably making UK remain attractive to the world. It will take some beating for others to surpass this. hj
78 THE HALAL JOURNAL | MAY/JUNE 2008
Cfocus.indd 78
5/8/08 1:37:56 AM
AD HJ.indd 2
5/7/08 4:33:35 PM
islamic finance Courtesy of Islamic Capital Market Department, Securities Commission Malaysia
THE DEVELOPMENT OF THE MALAYSIAN ISLAMIC CAPITAL MARKET IN THE ISLAMIC CAPITAL MARKET (ICM), FUNDRAISING AND INVESTMENT ACTIVITIES ARE CARRIED OUT IN WAYS THAT ADHERE TO THE TEACHINGS OF ISLAM. THE ISLAMIC CAPITAL MARKET REPRESENTS AN ASSERTION OF RELIGIOUS LAW ON CAPITAL MARKET TRANSACTIONS AND THE PRIMARY REQUIREMENT IS THAT THE TRANSACTIONS BE FREE FROM THE INVOLVEMENT OF PROHIBITED (HARAM) ACTIVITIES THAT INCLUDE ELEMENTS SUCH AS USURY (RIBA), GAMBLING (MAISIR) AND AMBIGUITY (GHARAR). AND THERE’S MORE...
T
he Islamic capital market is increasingly commanding global attention as a vehicle for adding quality options to financial products and services available in international markets today. This recognition has encouraged the steady growth of new products and has supported development and promotional efforts. Over the past two decades or so, the ICM in Malaysia has emerged as a significant area of growth. It has come a long way since the first issue of Islamic bonds by Shell in 1990, the establishment of the first Islamic unit trust fund by Arab Malaysian Unit Trust Bhd in 1993, and the establishment of BIMB Securities Sdn Bhd – the first full-fledged Islamic stock broking company – in 1994. The Malaysian ICM today has the full complement of products, infrastructure, institutions, intermediaries and investors contributing to greater depth and breadth of the entire capital market. Today, we have 853 Shariah-compliant stocks listed on Bursa Malaysia with a market capitalisation of about RM604 billion or 63.4 per cent of the total market capitalisation. The availability of Shariahcompliant stocks has also boosted the development of the Islamic fund management industry. Starting with two equity funds in 1993, Malaysia
now has 134 Islamic unit trust funds comprising both equity and bond funds with a net asset value (NAV) of RM16.9 billion, or about 10 per cent of the total NAV of the unit trust industry. Over the last 10 years, Islamic unit trust funds have been growing at a compounded annual rate of more than 25 per cent, while the unit trust industry grew at about 8 per cent. The same success story can be seen in the bond market. The growth and development of Sukuk is also very impressive as we have witnessed a significant increase in the size of Sukuk issued by corporate bodies. Total outstanding corporate Sukuk currently stand at about RM135 billion, or 56 per cent of total outstanding corporate bonds. In 2007, there were 59 issues of Sukuk, structured based on various underlying Shariah principles including Mudharabah and Musharakah. With a total nominal value of RM121.3 billion,
this represents 76.4 per cent of the total corporate bonds issued in Malaysia during that period. These have been achieved through clear policies and government-driven initiatives. The establishment of the Securities Commission (SC) – whose mandate includes not just regulating, but also developing the market – provided ownership and leadership to the Government’s efforts in developing the ICM. This statutory developmental mandate enabled the SC to move very quickly, putting in place the necessary institutional and regulatory infrastructure for the development of the ICM. In a nutshell, significant top-down initiatives were pursued. The establishment of a Shariah Advisory Council (SAC) for the capital market at the level of the regulator in 1996 provided the single most important impetus for the success of other initiatives. With the SAC presiding as the highest point of reference with
80 THE HALAL JOURNAL | MAY/JUNE 2008
finance.indd 80
5/8/08 1:38:59 AM
AD HJ.indd 2
5/7/08 4:29:45 PM
islamic finance
securities laws are comparable with the world’s best, and are continuously fine-tuned and calibrated to ensure efficiency and relevance. Malaysia is also likely to witness a broadening of many domestic Islamic financial systems from its banking and Takaful base. It is natural that growth will, over time, be driven by increasing crossborder investment flows intermediated through the securitisation process and the manufacture of investment products in the ICM. This will see the
of a proliferation of Shariahbased products, keeping pace with those available in conventional markets. The increasing diversity of ICM products is a key strength for Malaysia, given that the global demand for ICM products has also experienced unprecedented growth. This is particularly so with respect to more sophisticated products, such as Islamic-structured products and convertible and exchangeable Sukuk. This is because investors are becoming more sophisticated, having distinctive needs and
Malaysia is also likely to witness a broadening of many domestic Islamic financial systems from its banking and Takaful base. It is natural that growth will, over time, be driven by increasing cross-border investment flows intermediated through the securitisation process and the manufacture of investment products in the ICM. Shariah-compliant products now account for a significant proportion of our overall capital market. respect to all Shariahrelated matters in the capital market, many other building blocks were put in place. The SC’s extensive powers, with respect to the issuance and offer of securities in the market, paved the way for it to issue legally binding guidelines and requirements with respect to the ICM. This enabled, for instance, the SC to impose specific requirements for Islamic unit trust funds and Sukuk. Enabling the necessary building blocks to be put in place were the adoption and pursuit of a screening process to determine Shariah-compliant stocks; the issuance of numerous guidelines to impose additional requirements on products that are identified as Shariah compliant; the ability to respond to queries and clarifications on Shariah
issues from the market, coupled with the SC’s own ability to address regulatory and tax impediments with the relevant authorities, and to introduce education and awareness programmes through the publication of SAC resolutions and specific programmes organised by the Securities Industry Development Centre (SIDC). Clearly, the Malaysian ICM is not only built on a strong and well-established Shariah foundation, its products and services are also offered within Malaysia’s robust regulatory framework for the capital market – a regulatory framework which is modern and facilitative, and is internationally benchmarked. Over the years, Malaysia has successfully put in place all the necessary building blocks of an efficient and well-regulated market place. Its
development of significant equity and bond markets accompanied by a broadening of product offerings. This has been the Malaysian experience, where a comprehensive ICM has developed alongside the conventional sector. Shariah-compliant products now account for a significant proportion of our overall capital market. Furthermore, Malaysia will see a strong expansion in product breadth. Over the last few years, intensifying research and development work have resulted in tremendous growth in the body of knowledge and financial sophistication that has led to the creation and marketing
risk appetites, which has led to the phenomenal growth of product innovation and diversification in recent years. Moving forward – given the tremendous growth rates registered and the significant developments in the ICM – it can well be said that the ICM is recognised as a niche area of the Malaysian capital market. This will grant Malaysia a strategic comparative advantage that will boost its capital market’s competitiveness in facing challenges and competition in the global arena. This competitive edge will prove vital in meeting the country’s vision of becoming the point of reference for ICM products and development worldwide.
hj
PROFILE: The Securities Commission of Malaysia (SC) is the sole authority that regulates and develops the Malaysian capital market. The SC also spearheads the development of the Malaysian Islamic Capital Market (ICM). Under the MIFC umbrella, SC’s efforts are also directed at positioning Malaysia as an ICM powerhouse specialising in the origination, distribution and trading of ICM instruments.
82 THE HALAL JOURNAL | MAY/JUNE 2008
finance.indd 82
5/8/08 1:39:31 AM
AD HJ.indd 2
5/8/08 2:38:38 AM
islamic finance
International Zakat Organisation: A Contemporary Entity Implementing Islamic Economic Developmental Mission The International Zakat Organisation (IZO) is considered a contemporary entity originating from the juristic principles of the Zakat duty, with a social, cooperative role and economic developmental dimensions.
T
he International Zakat Organisation was established according to the principles as stated in the Charter of the Organisation of the Islamic Conference (OIC) and the sublime principles of the True Islamic Religion, pushing for the commitment of the cooperation concept in Islam. The IZO is committed to achieving the objectives of the OIC, the Islamic Development Bank (IDB), the Islamic Chamber of Commerce and Industry (ICCI), the General Council for Banks and the Islamic Financial Organisations. All of which are unified towards a goal of maintaining Islamic solidarity among OIC countries; supporting cooperation among members in economic, social, cultural and scientific fields; This will subsequently provide an atmosphere of cooperation and understanding among member countries and other countries for
the maintenance of welfare of mankind.
THE ECONOMIC ROLE OF ZAKAT The development of Zakat been hindered by the implementation of a narrow concept which has failed. This mainly due to neglecting certain principles of Zakat, whereby it limited Zakat contribution only from the rich as a partial incidental charity, hence causing Zakat to lose its effectiveness and clarity. This concept must be changed in order to establish an applicable contemporary entity of Zakat. As such, poverty will be considered not as individual factor, but as a phenomenon which requires scientific verification and collective treatment according to a solid institutional international system. If a Muslim wants success in his economic activity, he should pay Zakat willingly. He shouldn’t merely calculate it from his economic point of view but truly understand
that Zakat is beneficial for both the individual and nation as a whole. In addition, some societies, boards and mosques do their part rather shyly when it comes to collecting Zakat. The suggested solution is a contemporary, arising from its principles and based on the concept that the Zakat are spent as they are collected. It is the responsibility of the ummah to use Zakat sources to serve various classes of people and communities. There should be an international board for collecting and spending Zakat. This is where the Islamic Bank for Development and the Islamic Chamber for Commerce and Industry can play a role in collaborating with other similar boards and with the approvals of the governments of the countries in which they work. Local boards will
be established in each country, at the level of the individual state, the individual city or village. All start from the lowest level, namely the village. These boards will have obligatory authority, as that of the Tax Administration. Not only does it receive the amount of the Zakat paid, it also helps him calculate the Zakat due. It has the right to analyse the payer activities and fix the amount of Zakat according to the confirmed available information. The committees would collect and spend according to a pyramidal serial; its base is the quarters, city and state. It can also start from villages, cities, districts and states, according to the authorised administrative division of each state. The collected Zakat by
84 THE HALAL JOURNAL | MAY/JUNE 2008
finance.indd 84
5/8/08 1:40:16 AM
islamic finance
I
ts purpose is to eradicate poverty. This is by empowering the needy person to earn his living himself, by several methods, by vocational training, providing work equipment and forming investment funds so that the youth can start and own their enterprises and transfer from being workers to owners.
the villages’ committees will be distributed evenly. It is proposed eight boards are set up. Each board spends its share according to its circumstances. Eight funds will be established, one fund for each share. Some funds are at the level of the village, city, state, and nation. This will be according to the needs in one place and their unavailability in another one. The first board is the Board of Poor; where the Funds will be spend at the level of a village city, state and nation. Secondly, The Board of the Needy will be designated for helping those who possess, but not sufficiently to fulfill
their needs. The share is different that that of the poor. Its purpose is to eradicate poverty. This is by empowering the needy person to earn his living himself, by several methods, by vocational training, providing work equipment and forming investment funds so that the youth can start and own their enterprises and transfer from being workers to owners. Next is the board for those responsible for Zakat collection. 2,5% of total Zakat tithe will be spent on administrative activities of collecting and spending Zakat. Fourthly, a share will be allotted to be spent at the level of state and nation. This is very important because the allocations are channeled
to the media, the decision-making centres in different states, such as assemblies and political boards. The fifth board is to take care of people such as the Muslim prisoners of war and similar cases. This fund will be for fighting prostitution arising from poverty. This will be by establishing enterprises and employing manpower, especially females and Muslim prisoners. Sixth fund may be used to enlarge the credit scope for the ready made garments. Salesmen will be bale to sell on credit and help people. A part of takings will be designated for developing exports. Another part will be designated for the unexpected catastrophes or accidents of the needy. The seventh board will be for the sake of God: This board differs from one age to another. If we review from a broad concept, it means not only struggling in its military meaning but
also whatever leads to the satisfaction of Allah. Finally, the eighth board is the board that looks after the homeless: This is to be organised on the basis of the city and state, it may be supported with a governing system promoting legal Halal tourism in various types. There should be verification form to be filled.. This will require information so that this fund will not be used as a means for gathering beggars and homeless. It is possible to build houses for homeless in big cities similar to those for youth found worldwide. In conclusion, such contemporary application for collecting and spending Zakat will achieve its original concept. It will not only feed the needs of hungry men but also to form a substantial, stable establishment. These will fulfill the needs of the poor and needy. This will add to Zakat role in supporting Islamic mission, developing utilities, encouraging rational finance, establishing vocational training institutes, promoting religious, health, and also commercial tourism. hj THE HALAL JOURNAL | MAY/JUNE 2008
finance.indd 85
85
5/8/08 1:40:40 AM
islamic finance
INTERNATIONAL ISLAMIC FINANCE FORUM DUBAI: FORM VS. SUBSTANCE THE INTERNATIONAL ISLAMIC FINANCE FORUM (IIFF) in Dubai this year enjoyed a good dose of substance. Often, the forum is for large Multi-National Corporations and Islamic Financial Giants from the Gulf Cooperation Council (GCC) and Malaysia to fight for bragging rights on the largest Sukuk or the most innovative way to spin a Mudarabah contract. This year, however, it was open up to the other end of the market, the very bottom. Starting with the Guru Day with Muhammad Yunus, delegates spent the full day hearing the Noble Peace Prize winner tell a story about Grameen Bank (Village Bank), which was built on the conviction that poor people can be both reliable borrowers and avid entrepreneurs. The Grameen Bank started out with USD27
IT WAS CLEAR THAT ZAKAT, WAQF AND OTHER ECONOMIC OR SOCIAL STRUCTURES THAT HAVE BEEN EMPLOYED IN THE MUSLIM WORLD ARE NEEDED TO COMPLETE THE CURRENT ECONOMIC STRUCTURES IN PLACE. and has now achieved its goal of becoming a powerhouse in social reform and industry development in Bangladesh. With 7.5 million customers and 27,000 employees, this banking group has now grown to have the largest telecommunications network in Bangladesh and has joint projects with the likes of Danone and Credit Agricole. Muhammad Yunus challenged the forum to re-evaluate the definition of a “bankable customer�. He asked that the concept be turned on its head, meaning that the bank should be customer-worthy, an idea which some bankers had trouble understanding.
Currently, 50 per cent of the population in Dubai are considered non-bankable (those with an income of less than 5,000 dirham per month are unable to open an account in Dubai). More to the point, this is a huge market that is currently not being served. Admittedly, Noor Islamic Bank is taking steps to help the lower end; however, more needs to be done. Looking at the bigger picture, a lot can be learnt from the Grameen Bank experience, such as creating a loyal customer base that consumes on a daily basis. Perhaps more refreshingly were the
Words By SAIF AL ASWAD
very honest and heartfelt efforts by organisations doing Islamic Micro financing programmes in countries such as Afghanistan and Sri Lanka. Many took note that the next important sector could possibly be the bottom sector. On the subject of Corporate Social Responsibility, the forum was inconclusive on whether Islamic Financial Institutions are responsible for poverty eradication. In the panel, it was clear that Zakat, Waqf and other economic or social structures that have been employed in the Muslim world are needed to complete the current economic structures in place. A successful event, IIFF was attended by some 120 delegates hj from 17 countries.
86 THE HALAL JOURNAL | MAY/JUNE 2008
finance.indd 86
5/8/08 1:41:09 AM
ISLAMIC DEVELOPMENT BANK (IDB) YEARS IN HUMAN DEVELOPMENT (1975 – 2008)
TOGETHER WE BUILD A BETTER FUTURE THE IDB GROUP ISLAMIC BANKS PORTFOLIO FOR INVESTMENT AND DEVELOPMENT (IBP) UNIT INVESTMENT FUND (UIF) IDB INFRASTRUCTURE FUND ISLAMIC CORPORATION FOR THE DEVELOPMENT OF THE PRIVATE SECTOR (ICD) ISLAMIC CORPORATION FOR INSURANCE OF INVESTMENT AND EXPORT CREDIT (ICIEC) ISLAMIC RESEARCH & TRAINING INSTITUTE (IRTI) ADAHI PROJECT (IDB SACRIFICIAL MEAT UTILISATION PROJECT) AWQAF PROPERTIES INVESTMENT FUND (APIF) WORLD WAQF FOUNDATION (WWF) INTERNATIONAL CENTRE FOR BIOSALINE AGRICULTURE (ICBA) INTERNATIONAL ISLAMIC TRADE FINANCE CORPORATION (ITFC)
AD IDB HJ.indd 1
VISION By the year 1440 Hijrah IDB shall have become a world-class development bank, inspired by Islamic principles, that has helped significantly transform the landscape of comprehensive human development in the Muslim world and helped restore its dignity. MISSION To promote comprehensive human development, with a focus on the priority areas of alleviating poverty, improving health, improving governance and prospering the people. K E Y S T R AT E G I C T H R U S T S • Reform IDB • Alleviate Poverty • Promote Health • Universalise education • Prosper the people • Empower the Sister of Islam • Expand the Islamic financial industry • Facilitate integration of IDB Member Countries economies • Improve the image of the Muslim world PRIORITY AREAS • Human development • Agricultural development and food security • Infrastructure development • Intra-trade among member countries • Private sector development • Research and development (R&D) in Islamic economics IDB MEMBER COUNTRIES 56 member countries: Afghanistan, Albania, Algeria, Azerbaijan, Bahrain, Bangladesh, Benin, Brunei, Burkina Faso, Cameroon, Chad, Comoros, Cote d Ivoire, Djibouti, Egypt, Gabon, Gambia, Guinea, Guinea Bissau, Indonesia, Iran, Iraq, Jordan, Kazakhstan, Kuwait, Kyrgyz, Lebanon, Libya, Malaysia, Maldives, Mali, Mauritania, Morocco, Mozambique, Niger, Oman, Pakistan, Palestine, Qatar, Saudi Arabia, Senegal, Sierra Leonne, Somalia, Sudan, Suriname, Syria, Tajikistan, Togo, Tunisia, Turkey, Turkmenistan, Uganda, UAE, Uzbekistan, Yemen, Nigeria. C A P I TA L • Authorized Capital : 30.0 billion Islamic Dinar • Subscribed Capital : 15.0 billion Islamic Dinar OFFICES • The Bank’s principal office is in Jeddah in the Kingdom of Saudi Arabia with three regional offices in Almaty (Kazakhstan), Kuala Lumpur (Malaysia) and Rabat (Morocco) and field representative offices in 11 eleven member countries :Indonesia, Iran, Kazakhstan, Libya, Pakistan, Senegal, Sudan, Gambia, Guinea Bissau, Mauritania and Algeria
IDB HEAD OFFICE KING KHALID STREET, P.O BOX 5925 JEDDAH – 21432, KINGDOM OF SAUDI ARABIA, TEL/FAX: (966-2)6361400/6366871 EMAIL: ARCHIVES@ISDB.ORG
www.isdb.org 5/7/08 5:40:11 PM
islamic finance
ISLAMIC MICRO FINANCE…
IT IS THE ECONOMY!
Words By SAIF AL ASWAD
Islamic Micro Financing needs to play an important role in economic and financial knowledge, so that huge parts of the population can take part in the economic development of a community.
The
key is being responsible in repaying loans. Once this is accomplished, people can start moving on to bigger things. An important component in the micro credit system is the social contract, in which a small group of borrowers monitor themselves and each other, a concept that is actually very Islamic. With much of the Muslim world mired in poverty, wealthy Muslims – be that on an individual or state basis – need to take a proactive approach to solve this problem. Afghanistan for example, a country that is currently a war zone, faces a host of problems, including warlords, foreign occupation and a weak central government. One group, the Foundation for International Community Assistance (FINCA International), is thriving
in this environment. FINCA International developed a Shariahcompliant product suited to the religious and financial needs of Afghan micro-entrepreneurs and has pushed the product to reach larger numbers of the poor in general, and women in particular. “The fact that we use Shariah-compliant Micro Finance products means that even if the Taliban were to take over again, then we would not have a problem unlike some of the other non-government organisations (NGOs) working in the Micro Finance sector in Afghanistan,” said Paul Robinson, Country Director at the recent International Islamic Finance Forum in Dubai. According to FINCA International Deputy Director, Nimrah Karim, the level of public understanding
is high. “Surprisingly, the understanding of Islamic contracts and the Halal concept is very good amongst the people in Afghanistan; they are historically located on the Silk Route, and have always been very good traders”. In Sri Lanka on the other hand, only a small percentage of the people understand Islamic Banking. “The challenges faced in Sri Lanka are very much different than elsewhere,” said Roshan Madawela, Chief Executive Officer of the Research Intelligence Unit of Muslim Aid. Muslim Aid, a UKbased NGO with projects across the Muslim world, is fast becoming one of the leaders in the area of social development. The project in Sri Lanka, for example, is focused on the eradication of urban poverty amongst the Muslim community
in that country. From a research angle, the project also hopes to understand the relationships among the Islamic bank (the lender), the NGO (the project implementer) and the beneficiary. More importantly, a review of Shariah-compliant micro finance approaches to solving the issues can be implemented. Amjad MohamedSaleem, Country Director of the Muslim Aid Sri Lankan Field Office said, “We use the mosque and the Friday prayer sermons to ensure people understand the responsibility of paying back loans.” This is perhaps the most effective mass media that is available to them and represents a good use of existing resources. In isolation, Islamic Micro Finance is just part of the solution. Zakat, Sadaka, and Waqf need to be implemented to form the basis of the economic safety net and to ensure the cycling of wealth and monies in the economy in a way that is just and fair to all. Islamic Micro credit programmes are one way that individuals can be delivered from the bonds of economic slavery, and economies moved hj up the value chain.
88 THE HALAL JOURNAL | MAY/JUNE 2008
finance.indd 88
5/8/08 1:44:02 AM
BUSINESS OWNERS UNION AN INVITATION TO BUSINESS OWNERS
The Business Owners Union is an exclusive club of business owners established by the Islamic Chamber of Commerce and Industry (ICCI).
“Allow me to address you as the elite of the community and the most capable of its brackets, to comprehend and grasp the word ‘ECONOMICS’; to get familiar with it and contemplate together the objective of this word in the past and in the present ages, for economics as we all know is the backbone of life; it is what determines its features and draws happiness and misery at the same time. In its shelter the means of living of nations and the style of their lives is determined, whether prosperity or distress, peace or war”. Sheikh Saleh Abdallah Kamel President, Islamic Chamber of Commerce & Industry
ME MBE RS H I P P RI V I L E GE S • Priority access to projects and companies originating from ICCI • Fee exemption for ICCI’s annual meeting in Makkah Al-Mukarramah, Madina Al-Munawwarah and elsewhere or at any ICCI activities • The priority of promotion of a member’s projects and initiatives among other Union members after assessment of economic viability • The priority for any bids within ICCI and OIC
• VIP reception by ICCI and assistance in all necessary procedures and authentication of documents related to establishment of any projects or commercial exchange within the OIC member countries, • Annual subscription to the summary of researches and studies prepared by ICCI and a 30% discount for the full version of the reports
Business Owners Union aims to further encourage intra-OIC trade and investment and sharing of evaluated projects within the OIC member nations. Membership fee is USD2,000 per year. Online application form is accessible at www.halaljournal.com/bou. Alternatively, kindly email to bou@kasehdia.com for more information.
change through business A Programme of Islamic Chamber of Commerce & Industry
AD BOU invite.indd 66
1/29/08 7:27:15 AM
Islamic finance update
GULF BANKS URGED TO MERGE
CIMB PRIVATE EQUITY INVESTS RM12M IN JV
Gulf banks must merge to form major players with international reach if they are to compete with established foreign giants in the project finance market, said Finance Minister of Bahrain, Shaikh Ahmed bin Mohammed Al Khalifa. He told delegates at the MEED Middle East Project Finance event that while the Middle East was behind only China as a market for project finance, its financial institutions lacked the capital bases to take on the largest of the region’s projects by themselves. “Although the GCC has come of age and is the second largest project finance market in the world, we still do not have the mega banks to match the mega projects,” he said. “When we look at the major number of project finance deals, we are looking broadly at a range of $1 billion to $5 billion for most projects. But how many GCC banks, and specifically, how many Islamic banks, have capital bases in excess of $1bn? How many Islamic project finance deals are led by Islamic banks? “The answer is that the majority of project finance deals and the majority of the Shariah-compliant project finance packages are led by conventional banks, in particular by branches of foreign banks.” The solution to this problem lies in mergers between banks and existing banks taking steps to increase their capital bases. “Alternately, existing wholesale and investment banks need to significantly increase their capital bases so they can bid with credibility for a major slice of these project finance deals which are coming on line,” Shaikh Ahmed said. |SOURCE: GULF DAILY NEWS, 3/3/2008
CIMB Private Equity has invested RM12 million to acquire a stake in TraceTracker Innovation ASA, paving the way for a joint venture that will provide food traceability solutions to global Halal producers and exporters. “This is an exciting investment opportunity for us, especially since Malaysia is positioning itself to become the world’s premier Halal hub,” CIMB Private Equity head, Darawati Hussain, said in a statement yesterday. “TraceTracker’s proprietary technology can be used to trace food products from farm to fork, and ensure these products and processes comply with stringent Halal standards.” TraceTracker chairman, Knut Jørstad, said that in the next few years, Halal would be one of the highest growth sectors in the food industry globally. He said its partnership with CIMB Private Equity pooled intellectual horsepower and financial muscle to maximise the opportunity and make the venture a success. |SOURCE: THE EDGE DAILY, 7/3/2008
HALAL FINANCE IS AS IMPORTANT AS HALAL MEAT It has been claimed that the Islamic finance industry, driven by Muslim developments, is making headway in the West, and is seen as important as Halal meat. Junaid Bhatti, Islamic finance expert and director of Ballencrieff House, stated that Islamic compliant finance products are not just popular with Muslims, but also people of other religions. “There are three main factors driving the growth of Shariah-compliant finance in the European markets – Muslim customers, non-Muslims looking for ethical finance, and finally the governments
themselves,” he explained. Halal finance products protect funds from unethical businesses or activities and there has been an increasing trend among westerners to try living their lives by certain ethical principles, he added. With over 50,000 UK Islamic finance customers and a worldwide industry growth rate of between 15 per cent and 20 per cent, the products are growing in popularity, Mr Bhatti claimed. Last year, the Chartered Institute of Management Accountants (CIMA) launched its first qualification in Islamic Finance, giving those in accountancy jobs the chance to develop the skills necessary in the £250 billion industry. |SOURCE: GAAPWEB. COM, 12/3/2008
KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD PARTICIPATES IN INFRASTRUCTURE Financing Conference in Indonesia Kuwait Finance House (Malaysia) Berhad (KFHMB) participated in a conference to explore and discuss various approaches, funding sources and relevant financing structures – whether Shariahcompliant or conventional – for infrastructure development in Indonesia. Over the next five years, Indonesia will need massive infrastructure-related spending of over USD150 billion. However, since only 17 per cent of this investment can be financed from the government’s own resources, the administration has been actively encouraging the participation of both local and foreign investors in developing the country’s infrastructure. With projects worth around USD100 billion already in the pipeline, domestic construction industry is poised to experience robust growth, in line with economic expansion. |SOURCE: PRESS RELEASE, 27/3/2008
CIMB BANK LAUNCHES FIRST 3-IN-1 PLAN TO SECURE A CHILD’S FUTURE CIMB Bank and CIMB Islamic launched the MyKid Edu Plan and MyKid Edu Takaful Plan, the first 3-in-1 plan that combines savings and investment with the benefit of life insurance protection for children. The plan also enables parents to put away funds for their children’s education in the future. MyKid Edu is unique as it offers parents the flexibility to manage their investments according to their financial capabilities, with contributions from as low as RM100 per month. MyKid Edu also insures both child and parent against loss of life or total permanent disability, covering children aged from one-month to 17 years. Peter England, Head of Retail Banking, CIMB Bank said this innovative product enables customers to grow their wealth and secure a better future for their children. “MyKid Edu gives parents the flexibility to choose and manage different investment portfolios from a well-established fund manager,” he said. Underwritten by CIMB Aviva Assurance Berhad and CIMB Aviva Takaful Berhad, the plan allows parents to invest in funds that have the potential to provide high returns. The fund portfolios include AMAL Growth Fund, Balanced Fund, CIMB Aviva Islamic Growth Fund and CIMB Aviva Islamic Balanced Fund. MyKid Edu allows parents to place different portions of their investments in these four funds, switch between the funds and make partial or full withdrawals anytime. Ho Ming Heng, Chief Executive Officer of CIMB Aviva Assurance, said a child’s education cost is the single most significant expense
90 THE HALAL JOURNAL | MAY/JUNE 2008
Finance upd.indd 90
5/8/08 1:45:49 AM
KUWAIT FINANCE HOUSE ANNOUNCES 43% INCREASE IN FIRST QUARTER NET PROFIT The Chairman and Managing Director of Kuwait Finance House (KFH) Bader Abdul Muhsen Al-Mukhaizeem today announced that KFH has achieved total profit of USD569.77 million (RM1.82 billion) in the first quarter of 2008. This is an increase of 32% compared to USD431.59 million (RM1.38 billion) in the first quarter of 2007. Net profit to shareholders reached USD276.39 million (RM883.08 million), increasing 43% over the same period last year. Per share earnings were 33% higher at 14 US cents (43 sen) compared to 10 US cents (32 sen) for the same period of last year. The latter worked out to 9 cents (30 sen) when adjusted for the capital increase from 1 January 2007 and bonus shares issued during 2008. Assets reached USD35.43 billion (R113.20 billion), up 38% or USD27.75 billion (RM82.28) from the same period last year. Deposits for the first quarter reached USD22.29 billion (RM71.21 billion), an increase of 39% over the same period last year. The return on assets reached 3.2% per annum and the return on shareholders’ equity reached 26% per annum. Bader enlightened the continuous efforts in launching new KFH services and products, such as the “Al Kawthar” investment deposit that provides monthly returns launched in the first quarter, and “Mobi Baitak”,
which is a mobile bank that reaches KFH’s clients wherever they are. |SOURCE: PRESS RELEASE, 15/4/2008
DOW JONES INDEXES TO STRENGTHEN PRESENCE IN THE MIDDLE EAST Dow Jones Indexes, a leading global index provider, increases its presence in the United Arab Emirates by opening an office in Dubai, its first in the Middle East, and will handle business activities in the Middle East region. The Dubai office will provide client support, manage client relations, promote and support Dow Jones Indexes’ conventional as well as Shariah compliant products, and develop new licensing opportunities in the MiddleEast and North Africa region. Dow Jones Indexes’ expansion reflects the increasing interest in Middle East financial markets in recent years. As one of the most important financial hubs in the Middle East, Dubai presents a strategic location to support Dow Jones Indexes’ clients in the region. “Dubai is the premier gateway to the Middle East and is well recognized for its role in Islamic Finance. Dow Jones Indexes pioneered the Islamic index space by launching the Dow Jones Islamic Market Indexes in 1999,” said Michael A. Petronella, president of Dow Jones Indexes. The Dubai office will offer integrated index solutions based on the entire Dow Jones Indexes family, including the Dow Jones Islamic Market and the European Dow Jones STOXX index families. |SOURCE: PRESS RELEASE, 14/4/2008
OVERWHELMING RESPONSE TO CIMB ISLAMIC DALI EQUITY THEME FUND The CIMB Islamic DALI Equity Theme Fund, launched by CIMB-Principal Asset
Management Berhad just over a month ago, has been fully subscribed. Due to this tremendous response, a further 300 million units to 900 million units have increased the Fund size; the initial selling price per unit remains at RM0.25. According to Datuk Noripah Kamso, Chief Executive of CIMB-Principal Asset Management Berhad, the encouraging response is proof that investors recognise the investment opportunities the Fund has to offer. “This Fund invests in Malaysia’s promising sectors, hence we were confident that it would be well-received by investors looking to counter volatility in other markets,” she said. The CIMB Islamic DALI Equity Theme Fund is a Shariah-compliant fund that invests in Malaysian companies that will benefit from prevailing global and domestic investment themes. The Fund invests in sustainable sectors that potentially give long-term, enhanced returns. The CIMB Islamic DALI Equity Theme Fund seeks to provide investors with medium to long-term capital appreciation by investing in Malaysian securities according to prevailing investment themes. The Fund will invest up to 98% of its Net Asset Value in Shariahcompliant equities listed on Bursa Malaysia. |SOURCE: PRESS RELEASE, 17/4/2008
ISLAMIC FINANCE IN INDIA: A PROSPECTIVE The Indian Economy is blazing since the last couple of years, as per government claims and similarly the Indian stock exchange is also showing remarkable performance by crossing the 21K mark. The Indian Islamic Banking, Finance, and Shariah Investment sector, however, is still in its nascent stage. However, in the globe, it is
growing with more than 10% growth rate and currently Islamic Asset is approximately USD500 billion in the world as stated in Forbes magazine. Due to estimating massive revenue in Islamic financial sector, some foreign banks including Citibank, Standard Chartered Bank and HSBC have opened interest-free banking for Islamic windows in some of the western countries like US, Europe and several West Asian countries. In India, there are only a few non-banking financial institutions, such as Al Ameen Islamic Financial & Investment Corp. (India) Ltd, Al-Falah Investment Ltd, Al-Barr Finance House Limited (India), Bank Muscat International (SOAG) and Seyad Shariat Finance, working on a no-profit-no-loss basis, as well as providing a range of loans. The stock market and Mutual funds, which most Muslims earlier avoid, are now grabbing the opportunities since the entry of two major investment institutes Parsoli Investment and IDAFA investment. |SOURCE: NEWSTRACKINDIA. COM, 29/4/2008
MORE ISLAMIC FINANCE NEWS & UPDATE AT WWW.HALALJOURNAL.COM
parents saved for, more so now that education costs and competition for places at institutions of higher learning are rising. “With MyKid Edu, we are making it easier for parents to start saving for their children to secure their future,” he surmised. |SOURCE: PRESS RELEASE, 1/4/2008
THE HALAL JOURNAL | MAY/JUNE 2008
Finance upd.indd 91
91
5/8/08 1:46:06 AM
advertorial
adverto
OPEN FOR INVESTMENT MALAYSIA INVITES THE WORLD TO JOIN US IN BUILDING THE HALAL MARKET
Already an investment hub due to its excellent infrastructure, communications network, skilled workforce and businessfriendly policies, Malaysia also has the foundations for a thriving Halal industry: • Strong government support in terms of development policies and funding • Flagship Halal Zone in operationally-ready PKFZ (Port Klang Free Zone) • Competitive cost of doing business • Connection to the global Halal network • Familiarity with and adherence to Halal Standards, the norm in Malaysia HDC is open to business. For local and global companies who wish to grow their Halal market, it’s our job to help you do it from Malaysia. SMEs may wish to tap on our expertise to improve your processes, products or marketing, and reach new Halal markets. Access all the information you need by calling us today. Dedicated HDC representatives will get to know your needs and connect you with the right location, market and set-up information, relevant government contacts and any other support needed.
OPEN TO THE CHALLENGE
OPEN FOR CERTIFICATION
As consumers demand better quality, Halal products and services have been gaining acceptance and recognition in markets across the world. In time to come, Halal could well become the standard associated with international best practices. Indeed, this is the ambitious goal we have set for ourselves at the Halal Industry Development Corporation or HDC. With the vision of establishing Malaysia as the preferred global hub for Halal products and services, HDC leverages on Malaysia’s diverse capabilities and resources to enable local and global businesses reach new markets through Halal. We do this through activities in industry and infrastructure development, certification, training, innovation as well as branding and promotions. At HDC we measure our success through the value we create for businesses participating in Malaysia’s Halal Industry, as well as the benefit to consumers and Malaysia’s economy. Speak to us today to find out how we can help.
Malaysia Halal certification is now open to everyone. The Malaysia Halal symbol is a trust mark to MuslimS and non-MuslimS alike - it confirms Halal status as well as indicates quality and nutrition standards. Such value is an opportunity for businesses venturing into the Halal market. Certification adds immense value to your products by: • Assuring ingredients are Halal certified and premises are free of non-Halal products • Facilitating trade of Halal products • Maintaining Halal integrity from farm to table In business, time is money. Gaining certification efficiently through a no-nonsense process is important. Whilst we manage certification, we also review the process to keep it timely. Currently we are improving our etechnology to assist in this. HDC is open to continuous improvement
HDC helps you to reach new markets through Halal
HDC is open to creating new opportunities
92 THE HALAL JOURNAL | MAY/JUNE 2008
Advert-HDC.indd 92
5/8/08 2:14:26 AM
advertorial
AN OPEN EXPLANATION CERTIFICATION Applying for Malaysia Halal certification is simple. It can be done either online or offline. There are three types of certification available: 1. Product certification It encompasses consumable and non-consumable products such as: • Food • Cosmetics • Pharmaceuticals 2. Premise certification It covers eating places, such as: • Hotel kitchen/ Commissary • Franchise outlet/ Food court • Restaurant 3. Abattoir house certification The Halal application and certification is a step-bystep process covering three stages. More information is available on our website www.hdcglobal.com:
APPLICATION The Halal application and certification is a step-bystep process covering three stages. More information is available on our website www.hdcglobal.com:
AUDIT AND REPORT Our audit team, who are experts in Syariah and technical matters, will visit the applicant’s premises to verify Halal status of ingredients, processing and storage, Halal internal management, labelling as well as quality assurance. Feedback will then be documented in a report.
CERTIFICATION HDC’s internal committee will review the reports and make their recommendation to the independant Halal Approved Panel. Upon approval, HDC will issue the Halal Certificate to the applicant, permitting the use of the Malaysia Halal logo on relevant products or premises.
OPENING DOORS THE MALAYSIA HALAL LOGO Trust marks such as global recycling and environmental symbols are valuable as they help consumers make informed decisions. The Malaysia Halal logo is the trusted symbol in this region. Certification enables businesses to use the logo on their products and premises to reap tangible benefits. Current consumer trends also show Halal products and services are increasingly accepted by non-Muslim audiences. The annual value of global trade in Halal is estimated at US$1.2 trillion. This makes the use of such a trusted symbol invaluable. HDC is open to assisting
OPEN YOUR MIND GET TO KNOW ALL ABOUT HALAL HDC’s Halal Training Programmes are specially designed for both Muslims and non-Muslims - anyone with a genuine interest in learning more about Halal. Our trainers are well qualified, experienced and knowledgeable in issues and challenges within the global Halal arena. Three different training programmes currently exist: Halal Awareness Programme, Halal Industry Programme and Halal Professional Programme. Each elaborates on specific aspects of the Halal industry. HDC invites manufacturers, factory managers, executives, supervisors, production operators and the general public to participate in the Halal Training Programme. You can find more information at www.hdcglobal.com HDC is about sharing knowledge
HDC is open to business. For local and global companies who wish to grow their Halal market, it’s our job to help you do it from Malaysia. THE HALAL JOURNAL | MAY/JUNE 2008
Advert-HDC.indd 93
93
5/8/08 2:14:48 AM
subsc ription
WHAT’S GOING ON IN THE GLOBAL HALAL MARKET?
STAY UP-TO-DATE WITH THE HALAL JOURNAL Global Halal News Halal F&B Industry Halal Standards & Certifications Islamic Finance Supply-Chain Logistics New Products WHO SHOULD SUBSCRIBE Primary Producers Manufacturers Importers & Exporters Halal Certification Bodies Halal Industry Players Supporting Industries
INTERNATIONAL HALAL NEWS + EDITORIAL + SERVICES + LIFESTYLE + RESEARCH + PRODUCTS
for regular updates on international Halal news and article archives, visit:
WWW.HALALJOURNAL.COM
INTERESTED TO ADVERTISE?
to subscribe online log on to
Full page full color advert rate : RM3,800 frequency discounts available upon request • email: info@halaljournal.com
I WOULD LIKE TO SUBSCRIBE TO THE HALAL JOURNAL FOR subscription commences upon full payment only
WWW.KASEHDIA.COM 6 issues
12 issues
Name Organisation
Position
Address
subscription form Post or fax your subscription form to:
Postcode
KASEHDIA SDN BHD 31-2 PLAZA CRYSTALVILLE JALAN 22A/70A DESA SRI HARTAMAS KUALA LUMPUR 50480 MALAYSIA
• tel: +6 03 6203 1025 • fax: +6 03 6203 4072 • email: info@halaljournal.com
www.halaljournal.com
subscription.indd 94
City
State
Phone
SUBSCRIPTION RATES (PLEASE TICK (√) YOUR LOCATION) 6 issues Malaysia RM59.00 12 issues Malaysia RM115.00
Fax
Rest of World RM92.00 (US$30.00) Rest of World RM184.00 (US$58.00)
PLEASE SELECT YOU PAYMENT OPTION (a) I enclose a Malaysian Cheque made payable to KasehDia Sdn Bhd (for Malaysia only). (b) I enclose a Bank Draft made payable to KasehDia Sdn Bhd. (c) I will pay online. Log on to www.kasehdia.com
5/8/08 2:44:44 AM
Muslim Youth Globalisation Challenges
THE
HALAL
JOURNAL
|
LIVING
|
MAY+JUNE
2008
MUSLIM YOUTH STATE OF PANORAMA, SOUTH AFRICA SERI ANGKASA REVOLVING RESTAURANT HASHIM KAMALI UP CLOSE FREAKONOMICS
Young Muslims are searching for a sense of belonging and are trying hard to blend in with modern society. For some, that quest must be balanced with staying true to themselves as Muslims.
living.indd 95
5/8/08 1:46:58 AM
cover story
MUSLIM YOUTH THEIR DILEMMAS, CHALLENGES
Words By HARIZ KAMAL
AND SENSE OF BELONGING
IT IS SATURDAY NIGHT: A young man is standing before a mirror, fixing his hair and checking his outfit for creases or anything else that seems out of place. “What shall I do tonight,” he wonders. “Where can I go with my friends? Should we catch a movie? Watch a play? Go bowling? Or hit the night spots?”
T
his is a familiar scenario for young men and women in both developed and developing countries on any given night. Others of their age may choose to stay in and have a quiet dinner. The different forms of social interaction they choose to engage in lead to a differentiation in youth culture and style, and the subsequent creation of local, social and personal identities. One particular group that has come under close scrutiny, however, is the Muslim youth. Who are they, really? Defining “Muslim” is simple enough – A Muslim is one who practices Islam whereby one remains faithful to only one God (Allah SWT) and His Messengers and the Holy Quran. Defining “youth”, however,
can get a little complicated. In modern Western cultures, the term “youth” refers to those who are no longer children but are not yet adults. In a strictly legal sense, the term is typically applied to a person from the time of their early teenage years until a point between the ages of 16 and 21. The United Nations (UN) defines the youth as people between the ages of 15 and 24 years, whilst The National Youth Development Policy of Malaysia defines them as those aged
between 15 and 40 years. Geography often determines the challenges that young Muslims face. Those in developed countries, particularly in Europe, have a tricky stumbling block to overcome as the European perception of the Muslim presence in general is often that of a problem or a threat. In his book To be a European Muslim, Tariq Ramadhan noted that young Muslims are also trying to figure out what they can offer Europe. How can they take an active part in European societies
96 THE HALAL JOURNAL LIVING | MAY/JUNE 2008
living.indd 96
5/8/08 1:47:22 AM
and be a positive influence through peaceful and respectful coexistence? Muslims in Europe are growing and now these second and third generations of Muslims born in Europe want to be both European and Muslim at the same time. “Coupled with negative media coverage on Muslims and political propaganda, the Muslims growing up in Europe are perceived as ‘other’ – not European, not French, not English but just ‘other’,” said Pembe Knurtul, a participant at the Youth Dialogue: OICRussia held in Kazan City on 6-12 June last year. This sense of exclusion would naturally affect the confidence of the young, which could result in angst against higher authorities. This was, in fact, the reason behind the genesis of
Muslims revolted in France and the violence, which included the burning of cars and the stoning of police officers, went on for several weeks. Sociologists believed that the reason for this violence was the marginalisation that these young people felt, the high rates of unemployment they faced and their tendency to have access to only lowpaying jobs, which other French people refused to take up. These young Muslims were mostly born in France
SOCIOLOGISTS BELIEVED THAT THE REASON FOR THIS VIOLENCE WAS THE MARGINALISATION THAT THESE YOUNG PEOPLE FELT, THE HIGH RATES OF UNEMPLOYMENT THEY FACED AND THEIR TENDENCY TO HAVE ACCESS TO ONLY LOW-PAYING JOBS,
punk culture among British youth in the 1970s, who expressed their resistance against what they perceived to be an authoritarian culture through music, dress, and behaviour. Punk bands such as the Ramones and The Sex Pistols wrote songs about topics that were then considered taboo, such as unemployment, consumerism, the police, and the royalty. Today however, punk exists mainly as a musical genre and a fashion style rather than an anti-authoritarian ideal. The difference between punks and Muslim youth is that the former were largely excluded because of their socio-economic status, whereas the marginalisation and social exclusion faced by Muslim youth exist on a bigger scale. This has created tension on racial and religious grounds, particularly in countries such as the UK, France and Germany, where racial and cultural conflicts are ongoing and the question of exclusion and inclusion has become very important. In 2006, young African-
after their parents had migrated from North African countries. The Government had to announce a series of measures to contain this conflict and while they were far from satisfactory, these initiatives provided some sense of inclusion and the violence abated. According to a study by the University of Gothenburg in Sweden, there are three mechanisms of social exclusion – stereotypical thinking (so-called statistical discrimination: e.g. “All Turks are…”); segregation of networks of natives and immigrants (where networks are based on ethnicity); and finally,
institutional discrimination (where institutional settings have intended or unintended discriminating consequences for certain ethnic groups). These mechanisms of social exclusion are mainly driven by ethnocentrism, which is the tendency to judge other cultures by the standards of one’s own culture, coupled with the belief that one’s own culture or ethnic group is inherently superior to others. Thus, these three mechanisms are interrelated in many ways, which means that a holistic approach is needed when thinking about possible solutions. Social exclusion aside, youths all over the world are sharing similar problems which include education, employment, hunger and poverty, health, environment, drug abuse and juvenile delinquency. Rapid globalisation processes of change, for example, have intensified poverty, unemployment and social disintegration in certain areas, especially among those in developing countries. This is an important issue to consider for young Muslims in developing and Muslimmajority countries. Factors such as the changing nature of work, a shrinking demand for young workers (who are more likely to be unskilled) and the emergence of new and less secure forms of employment are seriously undermining the ability of young people to contribute meaningfully to the global economy. For example, according to the International Business Leaders Forum Sourcebook of the Middle East in 2006, the Middle East and North Africa have the lowest participation rate in the labour force – 40 per cent of young people in this region are employed, compared to a worldwide average of 54 per cent. Globalisation has
THE HALAL JOURNAL LIVING | MAY/JUNE 2008
living.indd 97
97
5/8/08 1:47:36 AM
cover story WWW.INTERCULTURAL.ORG.AU
significantly changed the values and culture of the youth, who more readily challenge traditional authority structures, but also experience disorientation and anomie1. Therefore, to gain a stronger foothold as Muslims and to achieve a sense of belonging, Muslim youths need to ensure they have a strong will to succeed, to champion Islam and stay true to their Muslim identity and beliefs wherever they are in today’s rapid globalisation process. Globalisation is synonymous with the free movement of goods, services, finance, people and ideas. Thus, globalisation increases the level of interaction among people from different backgrounds, races and religions. With this interactivity, more questions related to Islam will arise: What is Islam? Who are Muslims? Why pray five times a day, fast during the month of Ramadhan and pay Zakat? Moreover, what can young Muslims contribute to the Ummah and to society in general? Muslim youths need platforms on which to congregate, exchange information, gain experience and benefit from each other, and to work better with each other as well as with the non-Muslims. In fact, most youths in the world are calling for dialogue with those of different cultures, religions and races. For example, the Asociación de Scouts de Bolivia in Bolivia mentioned in a reported entitled Youth for Alliance of Civilizations: Promoting Dialogue, Building a Culture of Peace, that there should be more interaction between young people from different social classes and different races or ethnic and religious groups. In this way, they would get to know each other and only based on that increased equality would they be able to build consensus, coordinate collective action and truly build a culture of peace. The British Youth Council added that to prevent alienation, the youth should be made equal partners in processes that concern them. The lack of understanding and dialogue between the adult world or structures and young people need to be addressed in terms of communication, institutions and so on.
YOUNG MUSLIMS SHOULD NOT JUST INTEGRATE THEMSELVES INTO THE COMMUNITY THEY LIVE IN BUT ALSO INTO SURROUNDING SOCIETIES. IN FACT, MOST YOUTHS IN THE WORLD ARE CALLING FOR DIALOGUE WITH THOSE OF DIFFERENT CULTURES, RELIGIONS AND RACES. As stated in the proposal for action in the World Programme of Action for Youth on Education (A/RES/50/81), children and young people should be informed of cultural differences in their own societies and be given opportunities to learn about different cultures so they may learn tolerance and mutual respect for cultural and religious diversity. Governments and educational institutions should therefore formulate and implement educational programmes that promote and strengthen respect for all human rights and fundamental freedoms, and enhance the values of peace, solidarity, tolerance, responsibility and respect for the diversity and rights of others. Even with intensified efforts to increase dialogue and interaction, there will be differences in the level of accordance in the countries these Muslims are in. Hence, there will continue to be sensitive questions – is there, for example, a need for an identity such as European-Muslim, Malay-Muslim and African-Muslim? However, the fundamental question for each
individual in this context is whether he or she is being a true citizen of this society. Does it matter if we are different? Aren’t the different idiosyncrasies of culture in fact the aesthetics of a society’s existence? Thus, young Muslims should not just integrate themselves into the community they live in but also into surrounding societies. If there are, in fact, common issues faced by all youth in the world, the Darul Hikma concept could come into the picture. This refers to how the Muslim empires of old would get the best minds from across their vast lands, both Muslims and non-Muslims, to work together to solve problems faced by the society, a cooperation which led to the Islamic Golden Age. Muslim youths need to be reminded that Muslims are expected to strive for more justice and to try and change any given situation for the better. As the saying by Prophet Muhammad (PBUH) goes, “Whosoever of you sees an evil action, let him change it with his hand; and if he is not able to do so, then with his tongue; and if he is not able to do so, then with his heart – and that is the weakest of Faith.” hj
REFERENCE: 1. Friday Night, Saturday Night: Youth Cultural Identification In The Post-Industrial City, Robert G. Hollands, 1995 • 2. United Nations website - www.un.org/youth • 3. United Nations World Youth Report 2007 • 4. Youth In Malaysia: A Review of the Youth Situation and National Policies and Programmes 2002 • 5. To be a European Muslim, Tariq Ramadhan, 1999 • 6. Voices of Muslim Youth: Who Are We?, Dilyara Akhmetova, Milenia Muslim, February 2008 • 7. Identity And Social Exclusion-Inclusion: A Muslim Perspective, Asghar Ali Engineer, October 2007 • 8. Youth Unemployment In Gothenburg (Sweden) Among Native Swedes And Immigrants: A Qualitative Study of Labour Market Exclusion, Eimal Peroz and Olga Rosca, University of Gothenburg, June 2007 • 9. Youth for Alliance of Civilizations: Promoting Dialogue, building a Culture of Peace, September 2006 (Footnotes) 1 a state or condition of individuals or society characterised by a breakdown or absence of social norms and values.
98 THE HALAL JOURNAL LIVING | MAY/JUNE 2008
living.indd 98
5/8/08 1:48:09 AM
AD HJ.indd 55
5/6/08 9:34:42 PM
AD.indd 2
5/4/08 3:37:53 AM
ad size.indd 66
10/29/07 10:05:04 PM