The Halal Journal - Jan/Feb 2008 by The Halal Journal

PP 13884/10/2007 MICA (P) 143/02/2007

| kasehdia.com | www.halaljournal.com | JAN+FEB 2008

THE MIDDLE EAST

AWAKENS

NEW INTEREST AND MOVES FROM THE REGION ON THE HALAL SECTOR

AUSTRALIA AU$6.50 • MALAYSIA RM9.90 • SINGAPORE S$5.50 • UAE DHS10 • UK £2.95

SINGAPORE HALAL PORK ISSUE More than a sick joke CHANGE THROUGH BUSINESS An elite club of business owners with heart CAN OIC HANDLE HALAL STANDARDS & ACCREDITATION? EVOLUTION OF ISLAMIC CREDIT CARD

LIVING: ORIGINS OF PAPER MONEY TRILLA IN MANILA AL NAFOURAH IN KL BOOK REVIEW: EVOLUTION OF DECEIT

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World Halal Forum 2008 T HE P REMIE R GLOB A L HA L A L I N DUSTRY E VENT

12-13 MAY 2008 KUALA LUMPUR CONVENTION CENTRE KUALA LUMPUR, MALAYSIA

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“I HOPE THE WORLD HALAL FORUM WILL CONTINUE TO STRIVE FOR THE HARMONISATION OF THE MARKET BY ARRIVING AT A CONSENSUS ON MAJOR ISSUES, TO CREATE WIN-WIN SITUATIONS FOR EVERYONE, AND TO MOVE THE INDUSTRY TO A NEW LEVEL OF COLLABORATION, EXCELLENCE AND GLOBAL SUCCESS.” - MALAYSIAN PRIME MINISTER DATO’ SERI ABDULLAH HJ AHMAD BADAWI

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JAN+FEB 2008

contents 14} THE 3RD WORLD HALAL FORUM

Expect bigger things from the world’s Halal event of the year

30} VEHICLE FOR WEALTH REDEPLOYMENT

28}

Channelling Halal funding where they are needed the most

MIDDLE EAST AWAKENING TO HALAL

HALAL INDUSTRY AWARENESS IS ON THE RISE IN THE MIDDLE EAST

32} CHANGE THROUGH BUSINESS

An elite club of business owners with heart

34} ISLAMIC CHAMBER OF COMMERCE & INDUSTRY

Strengthening economic standings of Islamic countries

37} CSR FOR THE MUSLIM COMMUNITY

Helping the poor, really

40} MULTILATERAL INSTITUTIONS: OIC VS THE EU A comparative look

42} MARKETING FOR HALAL

Is it any different?

46} FASTRACK ASIA

Singapore Halal pork: More than just a sick joke

50} FASTRACK ASIA

Bosnia-Herzegovina looking for partners

52} FASTRACK ASIA McDonald’s upbeat on Middle East

59} FASTRACK AMERICAS

The Jew who believed in Halal

64} FINANCE 1

Evolution of the Islamic Credit Card

66} FINANCE 2

Why sacrifice the spirit of Islam for innovation?

DISCLAIMER : While all care is taken, the publisher accepts no responsibility for the information contained herein which is believed to be reliable. The publisher/editor takes no responsibility for opinions expressed or implied as they are the writers’ own and do not necessarily reflect that of the publisher or editor who make no warranties governing material, including advertising or features contained within this publication. This publication may not in whole or part, be copied, reproduced or translated without prior written permission of the publisher.

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Ed’s Note H ALAL IS RE A L L Y O N TH E MO V E IN TH E MID D L E EAST!

“The other crucial situation is that, some non-Muslim countries are creating their own governmentbacked Halal certification body whose membership are neither qualified nor are practicing Muslims, but have been able to penetrate in the Halal industry through diplomatic means.” Haji Abdul Rahman Linzag, World Halal Council Sec.Gen.

Regulars 08} QUIETLY SPOKEN To Be but Not To Be 08} GLOBAL NEWS A brief insight into events currently shaping the Halal industry around the globe + Calendar of Events + Online Polls 60} COUNTRY IN FOCUS France looks forward to move on

Of late, there have been far too many Halal-related headlines coming out of the Middle East for anybody to ignore. Adding to our suspicion, our intelligence had pointed that the matter was being discussed within the highest economic committee of the OIC. If it is that high up, it must have been really serious, we thought. Further confirming this is the partnership of a key OIC affiliate organ with the IHI Alliance, the body representing the Halal industry stakeholders. This is being discussed in the Cover Story, which should provide a good teaser for the coming third World Halal Forum in May this year. The corresponding side stories are of OIC affiliate organisations, established to not just help push Halal on the global stage, but also bring the Muslims out of the conundrum they are in today – through trade and commerce - using Halal as the common denominator. Speaking of conundrums, if there were as many rich Muslims as there are poor Muslims, why can we not solve the problem of poverty for the ummah? The answer lies within three simple letters: C.S.R. The article on p36 gives a hint of how this can be done. And if you belong to any one of the large conglomerates listed, please do not turn a blind eye to your social responsibility. Truth is, this has been the case since however many decades. A comparative article on OIC versus the EU on p40 is our take on how the one and only multilateral institution (MLI) representing the Muslims can improve itself, by emulating other MLIs. Some say it is a matter of perception, and this is often influenced by how big of an impact the marketing is. Halal therefore should not be the exception and the article on p42 discusses just that. So is our take on the widely circulated issue of Singapore’s ‘Halal pork’. This shows us what an irresponsible jerk with a PC can do to a lifetime of trust and integrity building. As we venture forth into 2008 / 1429H, may the year be more fruitful than the last and may the Halal business you have built be stronger and more resilient to withstand, come what may. And always remember that nothing comes without an intention. So make it a good one! Assalamualaikum WBT.

the Halal Journal team

Living 69} FEATURE COVER The Evolution of Paper Money 72} JOURNEY Thrilla in Manila 74} BROWSING Al Nafourah in KL, Blind Alphabetz in Music and Evolution of Deceit in Book Review 76} ON DISPLAY Halal and good stuﬀ found on the shelf 78} SNAPSHOTS Images of recent happenings in the industry 80} PARTING WORDS Haji Abdul Rahman Linzag, new World Halal Council Sec.Gen.

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:: 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.

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EDITORIAL EDITOR-IN-CHIEF

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KASEHDIA HALAL GUIDE SERIES Top 3 ‘Best Guide in the World’ for 2004 Gourmand Awards

Kamarul Aznam Kamaruzaman kamarul@halaljournal.com

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CONTRIBUTING WRITERS Hariz Ahmad Kamal Dr Saad Al Harran Patrick Low Huzaime Hamid Tong Yee Siong Lokesh Gupta Hazel Hassan Hisham Bart August

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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 The Halal Journal, the name and the logo, are trademark ™ and copyright © 2006 of KasehDia Sdn Bhd. All Rights Reserved. Printed in Malaysia by Art Printing Works Sdn. Bhd.

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COMPILED BY RAJA AHMAD SHAZWAN ISKANDAR

To Be but Not To Be Everyone like to be the biggest, the fastest, the most important, but this is category tends to be reserved for only one company or individual in any given group. While we need to continue striving to be the best, there may be cases where we spend unnecessary efforts trying to be something that we are not. Not realising your true position in relative to other players can be a costly mistake. The other matter of being the largest player in any one market sector is coming with strings attached. Many desire the mantle of being on top but are not willing to make the sacrifices in time and effort and re-learn the skills to get there. Carving out your position today in the physical market places especially in big cities has been an age-old exercise, and it is still as important today as it was years ago. Market and competition has rules and these need to be in line with what is considered Halal practice for activities in the market place. One key area is the concept of free trade and the absence of monopolies so as to ensure consumers’ get the proper prices. At the end of the day, we want to find income that is Halal, not just hj produce Halal products.

Mark Piet

Quietly Spoken

GlobalNEWS

UNITED KINGDOM

THE CHRISTMAS PARTY THAT TURNED ISLAMIC

Sources in the U.K. have told the Financial Post of what is surely one of the most unusual twists on Christmas political correctness, courtesy of Accenture, the global management consulting giant. While other firms favour the bland Holiday Party, with meaningless Holiday Trees and not a stirring of Santa Claus, Accenture’s U.K. office boldly went traditional with a staff “Christmas Party” held last night. Less traditional however was serving up a Halal compliant Christmas dinner. In other words, Accenture held its Christmas feast, Islamic-style. | SOURCE: FINANCIAL POST, DEC 20, 2007

MALAYSIA

FIRST HALAL MENINGITIS VACCINE TO BE PRODUCED

Malaysia is planning the world’s first Halal vaccine for meningitis, which would be of particular service for Muslim pilgrims. The 3.6 million Ringgit (US$ 1 million) vaccine will be produced in two years jointly by USM and Cuba’s Finlay Institute. Twelve USM specialists and 30 Cuban experts will be working to produce the Halal vaccine from animal extracts slaughtered according to Shariah. Finlay Institute was picked as USM’s working partner for being among the best medical institutes in Cuba and in the world. A memorandum of understanding between the two sides would be signed in Cuba in December. | SOURCE: BERNAMA, OCT 25, 2007

“We are extremely pleased to receive Halal certification from the Islamic Food and Nutrition Council of America. This certification is very important to key Middle East and Asia markets, where we anticipate our Halal-certified flavours and fragrances products will be well received.” Judy Pruss, Marketing Manager for SAFC Supply Solutions. USA

HALAL FLAVOURINGS LAUNCHED

Flavour firm SAFC announced it has launched 350 Halal-certified flavourings, many of which can be used in the bakery industry, as part of a bid to tap into booming Asian markets. “We are extremely pleased to receive Halal certification from the Islamic Food and Nutrition Council of America,” said Judy Pruss, Marketing Manager for SAFC Supply Solutions. “This certification is very important to key Middle East and Asia markets, where we anticipate our Halal-certified flavours and fragrances (F&F) products will be well received.” The flavourings are designed for use in raw bakery products, confectionery, beverages, ice cream and meat products, the company said. | SOURCE: BAKERYANDSNACKS.COM, DEC 13, 2007

THE HALAL JOURNAL

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SINGAPORE

EUROPEAN MUSLIMS HUNGRY FOR MORE HALAL EXPERT

European Muslims are underserved by Halal food options, says certification expert from Singapore, while Southeast Asia and the Middle East are eyed by certified Western companies keen on exports. Dewi Hartaty Suratty, Head of the Halal Certification Strategic Unit at Majlis Ugama Islam Singapura (MUIS) spoke at a symposium in Grasse, France. She said that there are some conferences and lobbying efforts to raise the profile of Halal in Europe, but that at present the growing demand is not being met. Last year Nordin Abdullah, Executive Director of Malaysian KasehDia, the company behind the World Halal Forum, said that although there are only 30 million Muslims in Europe, they have far higher consumer spending power than those in the Middle East and North Africa. | SOURCE: WWW. FOODNAVIGATOR.COM, OCT 25, 2007

BRAZIL

MORTADELLA MAKER SEES SALE INCREASE SINCE BEING HALAL CERTIFIED

Ceratti meat packing plant, located in the city of Vinhedo, in the interior of São Paulo, has been trading mortadella certified Halal by the Muslim Federation. The stamp, which guarantees that the product is approved for consumption among followers of Islam, has already guaranteed growth of 35 per cent in company sales of the product. Last year the total produced was 9,000 tonnes of sausages and similar products. Mortadella, which is usually produced from pork and includes those traditional balls of fat, has been modified to a light option, with 30 per cent less fat and produced from beef. Production began in 1993. The Halal stamp granted at the end of 2005 boosted sales. “Certification was very pleasing to consumers who do not eat pork for religious reasons – Muslims, Adventists and Jews – and to people who prefer lower calorie products,” stated Mário Ceratti Benedetti, the company president. According to him, the stamp confers greater credibility to the products, as it is a guarantee that there is no other kind of meat in the sausage, apart from beef, he explains. | SOURCE: ANBA, JAN 16, 2008

“It is the most important and traditional market for exports from Brazil. We have been present in the market for more than 35 years now. Brazil has a special production line for this market. They are also consumers of breaded chicken and other poultry products.” Christian Lohbauer, the president at the Brazilian Poultry Exporters Association (Abef ) BRAZIL

ARAB WORLD BUYS 30% OF BRAZILIAN CHICKEN EXPORTS

The Arab countries are buying 30 per cent of Brazilian poultry exports. “It is the most important and traditional market for exports from Brazil. We have been present in the market for more than 35 years now,” said to ANBA the president at the Brazilian Poultry Exporters Association (Abef ), Christian Lohbauer. In 2007, sales to the Middle East totalled over US$ 1 billion. The leading importers of Brazilian poultry meat are Saudi Arabia, the United Arab Emirates, Kuwait, Oman, Bahrain and Qatar. “Brazil has a special production line for this market. They are also consumers of breaded chicken and other poultry products,” he asserted. According to Lohbauer, the Arab market is the most sophisticated destination for Brazilian chicken meat, alongside Japan. In 2007, Saudi Arabia was the second largest importer of the Brazilian product, at 466,000 tonnes, losing only to Japan, at 520,000 tonnes imported. According to the president at the Abef, exports to the Middle East in 2007 totalled approximately 1.2 million tonnes. | SOURCE: ANBA, JAN 8, 2008 RUSSIA

MOSCOW’S FIRST MUSLIM CLINIC OPENS

Moscow’s first private clinic based on Shariah law opened its doors recently. “The policlinic will strictly abide by Shariah law by observing, above all, gender differences in its services,” said Anna Kisko, a spokesperson for the health network responsible for the facility. In the new centre, women will be served by female specialists; men by male specialists. The administrative personnel will also be dressed accordingly, i.e. the doctors will only have their hands open and female doctors will have to wear headscarves or possibly hijabs. In addition, all medicines used at the policlinic will have to conform to Halal principles and not contain any alcohol. The creation of a Muslim hospital is backed by Russia’s health ministry and the Mufti Council of Russia. Ravil Gainutdin, the council’s chairman, said “the facility will be useful not only for Russian Muslims but also for personnel from the embassies of Muslim countries in Russia.” | SOURCE: ASIANEWS, DEC 07, 2007 BRUNEI

ELDERS TO TIE-UP WITH BRUNEI FOR HALAL BRAND

Australia’s Elders Victoria is coordinating with Brunei Darussalam’s Halal brand to develop global premium Halal products by the middle of 2008. More than 200 Australian food manufacturers and producers are involved in the project, after Brunei approached Australian businesses to establish its first global Halal brand. Brian Norwood, Chairman of Elders Victoria, said the initiative offers Brunei a new market opportunity to enter the US$600 billion global Halal market. Brunei’s Halal brand project will give Australian producers access to the world’s 1.9 billion-strong Muslim population, making the potential of the brand incalculable, Norwood said. | SOURCE: WWW. BRUDIRECT.COM OCT 01, 2007

WHAT IS MUSHBOOH? : Halal is clear and Haram is clear; in between these two are certain things that are suspected or ‘Mushbooh’ . Mushbooh (suspected) item could come from a Haram source, which must be avoided by Muslims. | The Halal Journal InfoEdu THE HALAL JOURNAL

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GlobalNEWS TURKEY

AS HALAL AS NEW ZEALAND

At a time when McDonald’s produces Halal chicken nuggets and New Zealand is the predominant supplier of red meat to Muslim countries, Turkey cannot afford to be left out of the multi-billion dollar industry, said a Turkish agriculture minister. As part of the ongoing debate in Turkey about the introduction of Halal food and its possible implications in society as a whole, Mehdi Eker said the Agriculture Ministry intended to take the necessary measures once the decision to establish a Halal standard is reached. He notes that all meat in New Zealand, one of the largest meat exporters, is produced according to Halal regulations. Eker said a minister in New Zealand told him that the reason why they abided by Islamic rules was because they exported to Islamic countries. “New Zealand is a Christian country. It applies these rules and exports to all the Islamic countries. The same is done by Israel. If Turkey is to sell its foodstuff to Islamic countries and if the customers want it, why shouldn’t it introduce a standard?” he asked. | SOURCE: TURKISH DAILY NEWS, DEC 26, 2007

“New Zealand is a Christian country. It applies these rules and exports to all the Islamic countries. The same is done by Israel. If Turkey is to sell its foodstuff to Islamic countries and if the customers want it, why shouldn’t it introduce a standard?” Mehdi Eker, Turkish Agriculture Minister CANADA

GOVERNMENT URGING CANADIAN FOOD PRODUCERS TO EXPLORE GLOBAL HALAL MARKET

A growing appetite for Halal products around the globe has prompted the Canadian government to encourage businesses to taste the market for these foods. Canada has so far failed to make much of an impression in the international market for products that respect Islamic dietary laws - also known as Halal. Canadian government trade experts and industry insiders alike are warning Canadian businesses they can ill afford to ignore the demographic trends feeding increasing demand for Halal and kosher products. “We think there is an opportunity and what we’re trying to do is educate some of our companies,” said James Hannah, a senior international market officer with Agriculture and AgriFood Canada. Canada accounted for only $996 million of the $53 billion in global food exports to the 19 major Halal markets in 2006. Some fear the country’s food producers risk being squeezed out of an increasingly crowded market. | SOURCE: CANADIAN PRESS, JAN 16, 2008,

USA

HALAL FOOD IN US SCHOOLS SOON

The US Senate is likely to witness a bill from Democrat Senator John Sabini, who is pursuing to ensure ‘Halal food’ for Muslim students in schools of the city and the state as well. “The ‘Halal Food Bill’ will be placed before the State Senate shortly,” John said at a fund-raising meeting in the city on Thursday. Bangladesh Expatriates in New York organised the programme, where John Sabini also said that he and some other Democrat senators have been trying their best to raise funds from US business community for the cyclone-hit people in Bangladesh. John Sabini has made a success last year, when he put forward a bill in the senate asking government to keep Eid days free from public examinations for Muslims. The bill has been passed to enact a new law. | SOURCE: BSS, JAN 15, 2008

UAE

AL ISLAMI CALLS FOR UAE TO STRENGTHEN POSITION IN HALAL

HDC TO GROOM MALAYSIAN BRANDS AND COMPANIES

Halal Industry Development Corporation (HDC) will launch the ‘Halal Champions’ programme in an effort to groom and nurture select Malaysian brands and companies for global business opportunities. Chief Executive Officer Dato’ Jamil Bidin said the programme would be the driver of the Malaysian Halal industry, demonstrating a commitment towards promoting Halal products and services. According to Jamil, the idea of setting up the programme, which would identify champions to become ambassadors for the country, was not new, as it has been proven to be a successful working model by countries that have implemented similar programmes.

Al Islami Foods has urged the UAE authorities to consolidate the strength of region’s Halal market. It called for consultation with the key stakeholders so that the local markets develop capabilities to compete with the international players. These recommendations were presented by Al Islami Foods marketing manager, Mustafa Jassem, at the Global Halal and Islamic Business Forum at Abu Dhabi National Exhibition Centre. Mustafa’s comprehensive presentation to the global audience touched central issues prevailing the Halal industry such as consumer dilemma about ‘real Halal’, guidelines and standardisation, rules and regulations, best practices, research and development, hygiene and safety, and the total absence of market data on the size of Halal food business and demand in the GCC region. | SOURCE: THE GULF DAILY NEWS,

| SOURCE: BERNAMA, OCT 29, 2007

JAN 17, 2008

MALAYSIA

10 THE HALAL JOURNAL

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THE HALAL JOURNAL

OnlinePOLL

1. ACCESS TO HALAL INGREDIENTS

2. HALAL COSMETICS

What would be the biggest hurdle for your company to access to Halal raw materials?

Would you use a Halal certified cosmetics if it were widely available? Depends on the certification agency 29.41%

High logistical cost 15% High cost price 35%

Sure! 68.24%

No, I will never switch from my branded cosmetics 2.35%

Low quality of products 15%

Lack of any Halal alternative 35%

SOURCE: WWW.HALALJOURNAL.COM

MAURITIUS

LOCALS EXPRESS CONCERN OVER QUALITY OF CHINESE FLOUR

Mauritian consumers and bakers are questioning the quality of flour purchased from China and demanding details of the quality report on the produce. “I (just) heard that this flour is good for consumption, but what about the scientific data? What are the grounds for this statement?” asked Mufti Mackoojee, Chairman of Halal Research Committee (HRC) in Port-Louis. He is also demanding the scientific report on the flour after a recent visit to China by a Mauritian delegation. He said the issue was important not just for Muslims, but also vegetarians. “It is not just about pork and its by-products, but it is also about the use of insect-based additives in some products,” Mackoojee said. The Mauritian government recently signed an agreement to purchase of 100,000 tonnes of flour from a Chinese company, ZJ Flour Industry. This is the first time Mauritius is buying flour from sources other than Australia and France and officials said the government decided to deal with China because of the price hike on the international market. | SOURCE: PANAPRESS, JAN 15, 2008

MALAYSIA

BOSNIAHERZEGOVINA SEEKS WHF HELP TO DEVELOP HALAL MARKET

Halal food has proved popular at the newest store of the fastest-growing sandwich retailer in Bradford, England. The Subway store in Ingelby Road, Bradford, has seen an investment of £150,000. Subway franchisee Imran Bostan said: “There is a very strong demand for Subway stores that provide Halal meats and I am delighted to have opened one on the busy retail park. During the store’s opening week it has served many happy customers, living up to all high expectations.”

Halal certification agency of Bosnia and Herzegovina has requested the World Halal Forum (WHF) to help the country develop its Halal market. KasehDia Sdn Bhd Founder / Managing Director, Jumaatun Azmi, said besides being a choice education platform for industry stakeholders, government representatives, exporters and business organisations, the forum also helped promote Malaysia’s Halal products in the global market. She said Bosnia and Herzegovina offered huge opportunities for Malaysian Halal food manufacturers as the country was a net importer of food products. “Most food processing facilities were destroyed or severely damaged during the war. However, the product quality of the major processors is comparable with many imported products,” Jumaatun said. She said the collaboration with Bosnia and Herzegovina through Malaysian Technical Cooperation Programme involved the development of human capital competency to facilitate it to be a gateway for Malaysians to tap Europe’s Halal market. The WHF will be held in Kuala Lumpur on 12th - 13th May. It is expected to attract more than 1,000 delegates.

| SOURCE: BRADFORD TELEGRAPH ARGUS, DEC 13, 2007

| SOURCE: BERNAMA, JAN 18, 2008

“There is a very strong demand for Subway stores that provide Halal meats and I am delighted to have opened one on the busy retail park. During the store’s opening week it has served many happy customers, living up to all high expectations.” Imran Bostan, Subway franchisee UNITED KINGDOM

POPULAR START FOR SUBWAY HALAL OUTLET

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GlobalNEWS HDC is working on a Halal Act to better regulate the Halal industry and ensure that its activities are carried out properly. It also expects to finalise its Halal Industry Master Plan draft early next month and have both documents approved by the government. MALAYSIA

HDC TO ISSUE INTERNATIONAL HALAL CERTIFICATION NEXT YEAR

The Halal Industry Development Corporation Sdn Bhd (HDC) will issue international certification from next year for halal products in addition to national attestation, World Halal Forum Chairman Khairy Jamaluddin said Thursday. To facilitate the export of Malaysian-made Halal products or have their Halal certification accepted abroad, the certification process is based on science and technology, he told the International Conference on Research Advances in Halal Science here. The conference was opened by Science, Technology and Innovation Minister Datuk Seri Dr Jamaluddin Jarjis. Among those present were HDC chairman Tan Sri Dr Syed Jalaludin Syed Salim and Chief Executive Officer Dato’ Jamil Bidin. HDC has been entrusted to lead the development of the country’s Halal standards by directing and coordinating the development of the industry and facilitating the growth and participation of local companies in it. Khairy disclosed that HDC will brand the certification as “Halal Malaysia for the World”. HDC is working on a Halal Act to better regulate the Halal industry and ensure that its activities are carried out properly. It also expects to finalise its Halal Industry Master Plan draft early next month and have both documents approved by the government.

LETTER

| SOURCE: BERNAMA NOV 29 2007

LETTER : HALAL FINANCING

Bissmillahirrahmanirrahim, Dear Editor, I have also heard a lot of things about Halal standards and Islamic banking in Malaysia and my first and big dream is to inculcate these into my country as soon as possible. In the last visit to your country on 6th March of 2007 our president said that “Kazakhstan still lacks of producing experience of Halal meat for Muslims, and there is no one company that is producing Halal under license.” I am thinking of opening a network of stores selling Halal foods, and maybe later farms for Halal chicken. But I do not know what I should do first and I need your advice. The first and main problem is financing and there is no Islamic bank or financial institution that can finance this project in Kazakhstan. How do you overcome this problem? Any advise from your part will be appreciated. Also, if there’s somebody interested in this project, we welcome and hopefully this dream will come true, Inshallah. Sincerely yours Issa ALTAYEV Astana, Kazakhstan Via email Ed: This is actually a typical “chicken and egg” problem, apparent all over the world. I wish we could offer a quick fix solution, but truthfully there isn’t any. Maybe you can borrow interest free from family and friends, start small and grow the business organically? It will be slower, but at least you have started living your dreams.

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UAE

AL ISLAMI REVITALISES HALAL FOOD RANGE FOR CHILDREN

In line with the World Obesity Day, Al Islami Foods re-launched “Aladdin” range of Halal food for children, developed with low fat content, more protein and nutritious. The move is a strategic step towards introducing balanced Halal products for consumers. Earlier in October, Al Islami introduced ‘Cold Cuts’ pre-cooked products through the launch of chicken and beef Mortadella in healthy and delicious flavours of pepper, pistachio and olive to suit every palate. | SOURCE: BUSINESS.MAKTOOB.COM, DEC 06, 2007

U.S.A

STUDENT INTRODUCES HALAL FOODS TO UNIVERSITY PARK CAMPUS

Starting this month, Muslim Penn State students can dine on Halal certified food weekdays on the University Park campus. Assisted by graduate student Muhammad Atiyat and other representatives of the Muslim Students Association (MSA), Penn State’s Campus Food Services will offer Halal sanctioned foods in Warnock Commons starting Jan. 27. “It has been a group effort,” said Lisa Wandel, director of Food Services. “Muhammad has worked with us and we are excited to see how it works.” As an undergraduate, Atiyat was involved in a similar program at Stony Brook University in New York. When he came to Penn State, he noticed there was only one restaurant in the area that sold Halal foods. He felt inspired to make a change. “It’s an additional incentive for Muslim students to attend Penn State,” he said. “This highlights the importance of Halal foods for the students.” Although restrictions in serving Halal foods are not as strict as kosher, a few challenges remain for Food Services. Wandel said Halal-approved products are not labeled like kosher foods are. This means Food Services must communicate with vendors to make sure they sell Halal certified food and follow approved procedures. “This program benefits Penn State because it’s education,” Wandel said. “It educates other students that are not familiar with these lifestyles.” | SOURCE: PENN STATE LIVE, JAN 24, 2008

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UNITED KINGDOM

DEWLAY CHEESE NOW HALAL CERTIFIED

European Muslims could be about to develop the taste for regional cheeses like red leicester, lancashire and even the humble cheddar following the recent entry of UK-based processor Dewlay into the Halal market. Company marketing director Ian Coggin told DairyReporter. com that obtaining Halal certification for its operations in October has allowed the company to tap new markets for their goods, previously not permitted for Muslim consumption. Coggin said in order to fully meet requirements associated with Halal certification, amendments needed to be made throughout the company’s entire production chain from the farm, up to materials used within packaging. Besides looking at what additives and sourcing the company used for its products, the Halal certification process also required the group to remove alcohol-based sanitizer from it operations. | SOURCE: ISLAMINEUROPE.COM, DEC 13, 2007 MALAYSIA

NESTLE IN RED RICE VENTURE

Nestle (M) Bhd will embark on commercial production of red rice in the Sarawak-west Kalimantan border area, in line with the National Agricultural Policy and to create a new source of income for the local farmers to reduce poverty in the community. “They will be guided by Nestle and its partners with the introduction of cost-effective methods and good agricultural practices that will help increase productivity, enhance the rice quality and even modernise traditional rice farming,” a statement said. |SOURCE : THE STAR, OCT 25, 2007

“A large portion of the trade is in consumer goods; when it comes to consuming something that is Halal, it is an Islamic tenet. You can’t compromise on religious tenet. So irrespective of whether the economy is going up or down, if you are consuming something and the Halal alternative is available, you should not be consuming something that is not Halal,” Datuk Noharuddin Nordin, Matrade Chief Executive Officer MALAYSIA

US RECESSION POSES NO THREAT TO HALAL TRADE

A recession in the United States will have a minimal impact on the international Halal trade as the need to consume Halal products is an Islamic tenet, said Malaysia External Trade Development Corporation (Matrade) chief executive officer Datuk Noharuddin Nordin. Speaking on the upcoming 5th Malaysia International Halal Showcase (Mihas 2008), he said: “A large portion of the trade is in consumer goods; when it comes to consuming something that is Halal, it is an Islamic tenet. You can’t compromise on religious tenet.” “So irrespective of whether the economy is going up or down, if you are consuming something and the Halal alternative is available, you should not be consuming something that is not Halal,” he added. Mihas 2008, to be held from May 7 to May 11, 2008 at the Matrade Exhibition and Convention Centre, will have 600 booths for a targeted 500 participating companies comprising 350 local and 150 international firms. Confirmed participants include companies from US, Turkey, Iran and Australia. Total sales for Mihas 2007 was logged at RM683.2 million. Higher sales were expected this year due to the larger number of participants this year. Noharuddin also said a recession would not affect the number of participants at Mihas 2008. “The beauty of the current situation is that fortunately for us, many of the Muslim countries are oil exporting countries. At the moment they are enjoying the best moment of their lives as the revenue from oil is allowing them to invest and undertake development projects,” he said. | SOURCE: THE EDGE, JAN 25, 2008

Calendar of events 24 – 27TH JANUARY 2008 SINGAPORE INTERNATIONAL HALAL SHOWCASE (SIHAS) Halal Asia Markets The Untapped Opportunities Singapore Expo Singapore Malay Chamber of Commerce Tel: +65 6242 0872 Fax: +65 6242 6153 Email: enquiry_sg@adexcomm.com www.sihas.com 13TH FEBRUARY 2008 WORLD HALAL FORUM INDUSTRY DIALOGUE – THE NETHERLANDS World Forum Convention Centre The Hague, Netherlands KasehDia Sdn Bhd Tel: +603 6203 1025 Fax: +603 6203 4072 E-mail: info@worldhalalforum.org www.worldhalalforum.org 24 – 27TH FEBRUARY 2008 THE 13TH GULF FOOD, HOTEL & EQUIPMENT EXHIBITION AND SALON CULINAIRE (GULFOOD 2008) Dubai International Convention and Exhibition Centre Dubai, UAE Dubai World Trade Centre (DWTC) Tel: +9714 308 6062 Fax: +9714 318 8607 Email: info@dwtc.com www.gulfood.com 10TH MARCH 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 26 – 27TH MARCH 2008 PARIS HALAL EXPO Paris Expo – Porte de Versailles Paris, France Agor Tel: +33 (0) 1 55 62 46 46 Fax: + 33 (0) 1 55 62 46 47 www.parishalalexpo.com 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 10 – 12TH 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

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event highlights

Third World Halal Forum EXPECTED TO CHART THE FUTURE COURSE OF THE GLOBAL HALAL INDUSTRY

he third World Halal Forum 2008 (WHF 2008) scheduled to be held from 12th to 13th May 2008 at the Kuala Lumpur Convention Centre will see the culmination of all deliberations, discussions and developments achieved since the second WHF, which is expected to steer and chart the future course of the global Halal industry. Themed “Developing the Global Halal Market”, the agenda for WHF 2008 will address issues relating to the demands and challenges of developing this fast-growing Halal industry, focusing on the implementation of plans and taking actions to expedite growth and enhance the sustainability of this lucrative industry. With all the development initiatives that have taken place since the last WHF in 2007, invited speakers will be presenting their papers at the two-day forum, which will see industry leaders and speakers highlighting and deliberating on the developments of the Halal market, including business trends, as well as standards and trade policies and regulations. All of which makes for valuable information for delegates to understand and apply, as well as providing networking opportunities within this fast-evolving market. Apart from presentations by guest speakers, the forum will also have several moderated open panel dialogue sessions, to encourage the exchange of views, ideas, and experience, which will expectantly lead to a formulation of ways to promote and strengthen the commercial applications of Halal in its entire value chain. In addition to the Forum itself, there will be several exclusive site visits to some

In addition to the Forum itself, there will be several exclusive site visits to some facilities of the pioneers in the local Halal industry, such as Northport (Malaysia) Bhd, Westports Malaysia Sdn Bhd, MISC Integrated Logistics Sdn Bhd (MILS), and Nestlé (Malaysia) Bhd. facilities of the pioneers in the local Halal industry, such as Northport (Malaysia) Bhd, Westports Malaysia Sdn Bhd, MISC Integrated Logistics Sdn Bhd (MILS), and Nestlé (Malaysia) Bhd. The exclusive visit is limited to invited guests only, which include the Heads of States, ministers and senior trade commissioners to encourage multilateral trade and business opportunities between Malaysia and other countries; and knowledge and technology transfer for developments within the Halal sector. The Halal market is growing at a fast pace, having drawn so much attention and interest from various fields, and further development initiatives and strategies are essential for the promotion of the Halal economy. Thus, WHF 2008 is likely to see more participants from the

last, with organisers expecting 1,000 delegates arriving from 60 countries, and a greater turn-about from Organisation of The Islamic Committee (OIC) member countries; fervent on exploring the possibilities of developing its society and economy via the Halal industry. In concert, major decisionmakers and industry leaders in tune with the Halal sector agrees that the time has now come for discussions to be linked directly with strategic planning and ultimately, workable actions. WHF 2008 is the perfect avenue for market leaders and industry experts to gather and chart the future course of the Halal industry, and the possibility of increasing the economy the Halal way. If you want to be on that ship, The World Halal Forum is the harbour; and you cannot afford to miss it.

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event highlights

TENTATIVE TOPICS TO BE DELIBERATED

mong the topics that will be highlighted and deliberated upon during the two-day forum will be current and relevant issues surrounding the global Halal market. To be discussed in the first session on Day 1 will be areas of developing the Halal industry, as well as standards, consisting of: Developing the Halal industry; highlighting the issues faced by the industry, and proposed solutions of overcoming them, and efforts by the Halal Industry Development Corporation (HDC) in the development of the Halal industry. Standards and conformity issues in the GCC; presenting regulatory issues faced in the food-manufacturing sector within the GCC, and understanding the regulatory framework to improve the flow of Halal products. Another highlight is the recent developments of the Halal industry in the GCC region. Developing the Halal industry within Islamic principles; focusing on the role of Ulema, the need for greater understanding and developing guidelines, and convergence of religious and scientific knowledge. The second session on the first day will focus on the Association of South East Asian Nation (ASEAN) and European Muslim market, with the following topics for deliberations: Developing the ASEAN market;

introducing the Muslim market in ASEAN, and a comparison of ASEAN and multilateral trade agreements with free trade. European market access; including a briefing on understanding market access to the EU, the Muslim market in the EU, and trends in the food industry. The morning session on the second day will present participants with the development agenda of the OIC, which will be enlightenment on the International Halal Integrity Alliance (IHI Alliance) as a global Halal accreditation body, and the role of zakat in the development of the industry. The second session of Day 2 will focus on country-specific deliberations on the global Halal trade of two countries from South East Asia, and Europe. The final session will see deliberations on riveting topics including Islamic banking as a developmental force in the Halal industry, and the media’s perception of Islam and the Muslim market. Relevant questions and feedback submitted during the two days of the moderated forum will be compiled; and panellists and speakers will address and deliberate on key issues, concerns, and suggestions by the delegates. A formal resolution will be amassed at the end of the forum. If you are in the Halal industry, you cannot afford to miss being in Kuala Lumpur on 12th - 13th May 2008. We look forward to welcoming you to what is shaping up to hj be an exceptional event.

For more information on attending the World Halal Forum and to register online log on to www. worldhalalforum.org, or call the WHF Secretariat at +603 6203 1025 today! Do not miss the ship; book your seat now!

WORLD CLASS EVENT, WORLD CLASS VENUE, DEVELOPING WORLD PRICES

The upcoming World Halal Forum (WHF) 2008 in May is actually a sound investment, considering the priceless future returns to your organisation by being a part of a pioneer group that charts the course of the global Halal industry over the next decade. For starters, delegates will gain first hand information and knowledge on how to develop one’s organisation within this highly lucrative industry, enabling one to identify the areas of opportunity and prospect. Delegates are expected to have invaluable networking opportunities within the circle that matters; since the Halal Industry Development Corporation (HDC) will be hosting the event, and it will be attended by all the prime movers and shakers of the Halal industry. To be staged at the magnificent Kuala Lumpur Convention Centre with the iconic Petronas Twin Towers as a backdrop, WHF 2008 will also have a world class convention centre for a venue – specifically designed to host regional and international conventions, trade shows, and public exhibitions. This in itself is a real value-for-money deal. An early bird rate of RM 1,350 is available for delegates until 15th March 2008. The offer also extends to returning delegates from the inaugural WHF 2007. Normal price is RM 1,550. For accommodations, three packaged options are available to suit one’s budget, either in the adjoining 600-room, four-star Traders Hotel, the nearby Prince Hotel, or the chic Novotel Kuala Lumpur. Packaged room price ranges between RM 1,760 to RM 2,960 for a 4day / 3-night stay from 11th - 14th May 2008.

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WHF CAPS 2007 WITH THREE SUCCESSFUL INDUSTRY DIALOGUES

nd of the 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 designated objectives of creating an understanding of different areas within the Halal industry and delving into the heart of issues faced by industry stakeholders. Held in conjunction with the 15th International Food, Beverage, Food Ingredients and Food Processing Exhibition or better known as GIDA 2008, WHF-ID Turkey was held on 1st November 2007 at the Crown Plaza Hotel in Istanbul. Key individuals within 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 standards, and training in Turkey, and the growth of other Muslim markets – such as South East Asia. The dialogue commanded a healthy attendance of 110 participants, with the floor well represented mostly by Turkish industry leaders and policy-makers in many government sectors who understands the current situation in Turkey. Many questions, as well as issues were raised, with most directed towards the Turkish Standards Institution concerning the ongoing developments of the Turkish Halal Food Standards. Moving on with the WHF-ID bandwagon from its last stop in Istanbul, the WHF Secretariat arrived in Sarajevo, Bosnia-Herzegovina. Held on the 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 for WHF-ID in Bosnia, made extra efforts to prepare extra collateral and promotional items such as programme booklets, buntings and badges.

World Halal Forum-Industry Dialogues in Turkey

To further promote the event to local stakeholders, a full-page advertisement in full colour was placed in Bosnia’s leading newspaper, Avaz Publication, on 5th November 2007. A live interview with the national radio network was also conducted the day before the event. WHF-ID Bosnia, with this extra awareness campaign, saw attendees from Bosnia, France, Slovenia, and Croatia, commanding at a healthy attendance of 106 from these four countries. Key Malaysian representatives from MATRADE Budapest, Embassy of Malaysia in Bosnia as well as WHF Secretariat were also present. This one-day event covered issues concerning 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. There were also presentations on investment opportunities in Bosnia, the current state of Halal in the EU

and west Balkan countries, and a case study on the trade expansion of a Halal-certified company. The Director of the Agency for Halal Quality Certification Bosnia, Mr. Amir Sakić, 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 both good quality and quantity. Next on the calendar is Singapore, which was held at Raffles Convention Centre on 13th December 2007. One more success for the WHF Secretariat, this half-day event with moderated dialogue include presentations and deliberations from several speakers of different backgrounds and expertise as well as networking opportunities. The speakers revealed their observations and deliberations, focusing on the current global and regional Halal market, sharing of experience, specific challenges, and branding and worldwide initiatives in the Halal industry or market. Gaining new insights on the current state of the widereaching Halal market, the session proceeded with a round of question and answers, which was supported by a panel of industry experts. With great response and feedback from 30 participants, the WHF-ID bandwagon left Singapore, heading home with new ideas, insights, and current issues concerning the global Halal industry, which can be brought up and addressed at the third World Halal Forum event. Closing the WHF-ID trips for the year 2007, the WHF Secretariat prepares for more industry dialogues in 2008, to create understanding in different areas and discover the issues faced by industry players, governments, and stakeholders in Brazil, the Netherlands, and Australia, aiming to address specific matters before the World hj Halal Forum event in May 2008.

For sponsorship or enquiries, please contact us at info@worldhalalforum org or log on to www.worldhalalforum.org.

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event highlights

HDC’S INAUGURAL CONFERENCE ON HALAL SCIENCE An inaugural event that highlights advances in Halal science proved to be an eye-opener with a good mix of issues presented during the two-day conference. Organised by the Halal Industry Development Corporation (HDC), the International Conference on Research Advances in Halal Science was held from 29th – 30th November 2007 at the Putra World Trade Centre in Kuala Lumpur. The event, which is probably the first ever such initiative organised in the world, was held in conjunction with the National Innovation Conference and Exhibition (NICE), an event by the Ministry of Science, Technology and Innovation (MOSTI). The conference was also supported by Universiti Putra Malaysia (UPM) and International Islamic University Malaysia (IIUM), two leading local universities for Halalrelated researches. The main aim of the conference was to promote and encourage the developments of Halal-related science and researches among scientists, researchers and academicians at the domestic and international levels. Over 150 delegates comprising of scientists, university lecturers, industry players, government officials and Halal certifiers from various international Islamic bodies with great interest in Halal research work attended the event. The conference also witnessed presentations by international and local speakers covering various fields of Halal including Halal Food, Halal Cosmetics and Pharmaceuticals, Halal Product and Services, Halal Standard, Halal Quality System and Food Science & Technology. Chairman of HDC, Tan

Malaysian Minister of Science, Technology and Innovation Dato’ Sri Dr. Jamaluddin Dato’ Mohd Jarjis strikes the gong to officiate the event, in the presence of HDC officials and the World Halal Forum Chairman.

INT ERNATIONAL CONFERENCE ON RES EARCH ADV ANCES IN HAL AL SCIENCE List of Speakers and Topics of Presentation Prof. Dr. Yaacob Che Man, Director Halal Product Research Institute, University Putra Malaysia – R&D in Halal Industry Dzulkifly Mat Hashim, Head of Laboratory, Products and Process Innovation Halal Product Research Institute, University Putra Malaysia – Halal Ingredients for Cosmetics Dr. Clara L. Chee, Chairman of Clara International Malaysia – Cosmetics in Halal Industry Prof. Dr. Zhari Ismail, Professor in Pharmaceutical Chemistry, University Sains Malaysia – Issues and Challenges in Halal Pharmaceuticals Dr. Azizi Ayob, Head/Senior Manager Innovax Sdn. Bhd. – R&D in Halal Pharmaceuticals Industry Dr. Miskandar Mat Sahri, Senior Research Officer, Malaysian Palm Oil Board – Palm Oil Products in Halal Industry Dr. Mohamed Sadek, Islamic Scholar, USA - Transforming Biotechnology Products: Assessment of Process and Procedure Dr. Midhat Jasic, Head of Professorship, Faculty of Food Science and Technology, University of Tuzla, Bosnia Herzegovina - Integration of Halal and Other International Food Standard Maizatulnizah Aminuddin, QA Manager, Matrix Flavours and Fragrances Sdn. Bhd. – Use of Alcohol in Flavours Jamaludin Abu Bakar, Manager, Marditech Corporation Sdn. Bhd. – Converting Technology Into Halal Industry Dr. Winai Dahlan, Director of The Halal Science Centre, Chulalongkorn University, Thailand – Halal HACCP System in the Food Industry Haji Abdul Rafek Mohamed Saleh, Halal/Audit and Compliance Manager, Malaysia Airlines - MAS Inflight Catering : Halal Food Processing and Handling Dr. Mohamed Lotfi, Director of Australian Halal Food Services – Halal Slaughter Techniques

Sri Syed Jalaludin Syed Salim delivered the welcoming address, followed with a note by Chairman of World Halal Forum, Khairy Jamaludin. The conference was officiated by Dato’ Sri Dr. Jamaluddin Dato’ Mohd Jarjis, Minister of Science, Technology and Innovation Malaysia. In conjunction with the conference, an MOU was signed between HDC and UPM to develop the Halal Research & Development (R&D) Centre in Malaysia, witnessed by the Prime Minister of Malaysia Dato’ Seri Abdullah Haji Ahmad Badawi who announced that the event will be held annually. The conference was indeed another milestone for HDC and Malaysia in its efforts to encourage more research work in finding the latest and best alternative ingredients for use in the Halal industry and promote Malaysia as the centre for Halal Research & Development (R&D). It also acts as a catalyst to develop an international network amongst researchers and scientists to exchange ideas, gather input and share on the latest findings in Halal research. hj

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event highlights

HIGHLIGHTING HALAL OPPORTUNITIES AND AWARENESS AT A NATIONAL LEVEL The Halal Industry Development Corporation (HDC) has been conducting roadshows nationwide, in line with its role to spearhead and coordinate the development of Malaysia’s Halal industry amongst all public and private stakeholders. To facilitate the growth and participation of Malaysian companies in the global Halal market, the roadshows seek to create and increase awareness amongst Small and Medium Enterprises (SMEs) on the infrastructures available under the Malaysian Federal and State Government initiatives. The roadshow is also supportive of HDC’s role to lead in the development of Halal standards, audit, and certification procedures, in order to protect the integrity of Halal. Special attention was given in areas of Halal certification and business opportunities available in both the local and international arena. The event targets participants from all levels of the local Halal industry, encouraging attendance of food manufacturers and producers, entrepreneurs, Halal service providers, as well as companies involved in personal care, pharmaceuticals, food and beverage, nutraceuticals, and cosmetics.

It also attracted representatives from logistic providers, port operators and consumers associations, as well as from the food service sector such as hotels, and restaurants. In order to increase the awareness of Halal-related issues, college and university students, as well as members of the public were also encouraged to attend the seminars that were held in conjunction with the roadshows. Amongst the first three roadshows completed were those held in the states of Kedah, Melaka, and Pahang. The Kedah and Melaka roadshows were held at Holiday Villa, Alor Setar on 11th November 2007, and 17th November 2007 at Holiday Inn Melaka, respectively. The Pahang roadshow was held on 13th December 2007 at MS Garden Hotel in Kuantan. The one-day moderated seminars conducted during the roadshows were divided into two main sessions. The first session covered topics on HDC’s role in the development of the Halal industry, Halal certification in the food and beverage industry, and initiatives available for the Halal industry. Representatives from the Department of Islamic Development Malaysia (JAKIM), Small and Medium Industries

Development Corporation (SMIDEC), and HDC presented these topics, and allowed a dialogue session with the participants to address their queries and concerns. The second session covered deliberations and introductions on the available Halal schemes in terms of financial assistance, and the role of hypermarkets in Halal initiatives, by representatives from CIMB Islamic, Bank Pertanian Malaysia, and Mydin Mohamed Holdings Bhd – a popular local wholesale hypermarket chain, known to all as Mydin. The second session also closed with a dialogue session with the participants, which was followed by a closing ceremony by Dato’ Jamil Bidin, Chief Executive Officer of HDC. These three roadshows have indeed been successful, considering that the rural folks have been somewhat un-informed about the full potential of the global Halal market, and how best they can tap into this lucrative market. Dr. Nor Azman, Head of HDC Capacity Development, said, “HDC hopes to develop more entrepreneurs under the Halal

industry to fulfil the National Halal agenda, in line with the Northern Corridor Economic Region (NCER), East Coast Economic Region (ECER), and Iskandar Development Region (IDR) projects.” With this regard, the roadshows provided useful and significant information on the Halal industry, and business opportunities for the local industry players and SMEs. Through the event, HDC also received significant and important feedback from the participants on the current state of the local Halal industry, and the level of awareness concerning the Halal concept. Aside from HDC’s international initiatives of developing Malaysia to become a global Halal hub, these roadshows, although small-scale, will play a major role in the development of Malaysia’s Halal industry, as it is essential to cultivate it at a national level, before making it big in the eyes of the world. With this in mind, HDC roadshows will be held in other parts of Malaysia, with the eastern states of Sabah and Sarawak scheduled next in hj January and February 2008.

For more information on the roadshows or any other related developments, kindly contact HDC at +603 7965 5555 or log on to www.hdcglobal.com.

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MATRADE news

MATRADE NEWS SPECIAL FOCUS:

PHARMACEUTICALS INDUSTRY

ne of the most important components of the Malaysian healthcare sector is the pharmaceuticals industry where the country exports close to half a billion Ringgit (RM495.7 mil / US$151.2 mil) of medicinal and pharmaceutical products in 2006. Medicaments (antibiotics, hormones and alkaloid) represent 56 per cent of the exports while the remaining is made up of medicinal and pharmaceutical products. The Malaysian pharmaceutical industry is also highly self reliant, having the capability to produce almost 80 per cent of the various categories in the Malaysian Essential Drugs List and in almost all dosage forms. Either for sterile preparation such as eye preparations, injections (both large and small volume), soft gelatin capsules of various sizes and shapes, time-release medications and powders for reconstitution, the Malaysian pharmaceutical industry is considered as very stable and have a high growth potential, both within the domestic and export markets. In addition, there are also vast opportunities to capitalise on the country’s diversiﬁed natural ﬂora and fauna to develop resource-based and biogeneric drugs. Growth potential within the Halal pharmaceutical sub-sector is also big, considering that there have been little or no awareness amongst the global consumers on the availability of Halal pharmaceutical products from reputable Malaysian manufacturers. Having this in mind, The Halal Journal talked to one local player who is taking the initiative to penetrate the global Halal pharmaceutical market. Kotra Pharma’s CEO Jimmy Piong shares some insights and challenges his company is facing.

WHAT IS YOUR VIEW ON HALAL PHARMACEUTICALS AS A THRIVING GLOBAL INDUSTRY? “The concept of Halal pharmaceutical products would be very appealing to the Muslim market. However, Halal pharmaceutical is relatively in its infancy stage despite the fact that the generic pharmaceutical industries are thriving at an accelerated growth rate due to among others; a) the accessibility to technology; and, b) expiry of many patented products. “However, by looking at Halal issue purely from the pharmaceutical perspectives (not health supplement), for Halal pharmaceutical industry to establish itself, let alone flourish, there are many challenges ahead including extremely high capital investment for dedicated production facilities. For example, to have a separate injection production line, it will entail an investment of not less than RM 15 million for a dedicated Halal line. In addition, many active drug origins are derived from animal sources, which render the Halal certification impossible for a mixed production line, hence this necessitates a dedicated production line. “Another pertinent problem associated with pharmaceutical industry is the rigorous regulatory registration requirement in overseas countries, which will also render the push for Halal pharmaceutical industry development a slow and financially painful process. Besides, with Malaysia’s 25 million population alone, it does not justify for the initial investment cost

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Quality Why Choose Midamar? For more than 30 years, Midamar, a Muslim owned company, has taken pride in being the pioneer in the North American Halal Food Industry. Midamar has been, and always will be, committed to providing the best Quality Halal food products possible. With customer satisfaction our number one priority, we take pride in knowing the products and consulting services we provide to our customers is of superior quality and value.

• Midamar is the Leading Exporter of Quality Halal Food since 1974. • Midamar’s Export Services includes Sourcing and Consolidation, as well as Equipment, Parts, and Supplies Sourcing for the Hotel, Restaurant, Retail and Bakery Industry. • Midamar owns a U.S.D.A. cold storage, warehousing, and further processing facility and provides labeling and translation services. • Midamar’s consulting department provides services for companies interested in moving into the halal Food Business.

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MATRADE news

PHARMACEUTICAL FAST FACTS

Pharmaceutical products are mainly divided into two groups namely: 1. Modern pharmaceutical products, which mainly comprise analgesics, antacids, diuretics, antibiotics and antihistamines in the form of tables, capsules, drops, powders, creams, ointments, injections, syrups, opthalmic and nasal preparations. 2. Traditional pharmaceutical products, which mainly comprise herbal health supplements, ethnic pharmaceuticals and other traditional medicines in the form of tablets, capsules, powder and granules. Pharmaceutical products manufactured by the Malaysian pharmaceutical industry can be broadly categorised as prescription, over-thecounter (OTC), traditional medicines and health and food supplement. The prescription medicines comprise of patented and generic drugs, the sale and transaction of which are conﬁned to doctors and pharmacists. The OTC, traditional medicines and health/food supplements may be sold by nonprofessional outlets and to members of the public. In Malaysia, the Pharmaceutical Services Division (PSD) of the Ministry of Health (MOH) is the key government agency in the pharmaceutical sector. It comprises of three main divisions namely the National Pharmaceutical Control Bureau (NPCB), the Pharmaceutical Enforcement Branch and the Pharmaceutical Care Management & Development Branch. The Drug Control Authority (DCA) is the executive body established under the Control of Drugs and Cosmetics Regulations 1984. The main task of this authority is to ensure the safety, quality and eﬃcacy of pharmaceuticals, health and personal care products that are marketed in Malaysia. NPCB serves as its secretariat. All medicines marketed in Malaysia must be registered by the DCA of the Ministry of Health. All manufacturers, importers and wholesalers are required to be licensed by the DCA.

The Halal pharmaceutical market is still evolving and pending unexpected changes to market forces. In fact, Kotra has already produced some Halal over-the-counter (OTC) and food and health supplement products since 2003. Some of Kotra’s Appeton products for example have been suitably formulated for the need of Halal certification. of a dedicated Halal production line. To achieve economies of scale, export will be required. “Furthermore, a large number of the global Muslim markets are developing countries; many of which are facing internal conflicts and fighting poverty. Given such economic circumstances, these countries will naturally opt for the cheapest pharmaceutical products for their population. Presently, the GMP requirements have driven the cost of drugs to an even higher level. Given the above facts, the number one concern with regards to Halal pharmaceuticals is whether the escalating costs will push the products beyond the reach of most of our Muslim brothers. “Nevertheless, despite these challenges, if overcome, it will create product differentiation that will brand and position Malaysia as a premier Halal hub.” HOW DO YOU SEE KOTRA PHARMA FITTING INTO THE OVERALL BIG PICTURE? “The Halal pharmaceutical market is still evolving and pending unexpected changes to market forces. In fact, Kotra has already produced some Halal over-thecounter (OTC) and food and health supplement products since 2003. “Some of Kotra’s Appeton products for example have been suitably formulated for the need of Halal certification (e.g. Appeton Essential using Vegecaps) and other Appeton products have also been Halal certified e.g. Appeton Weight Gain. “Like all business concerns,

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

our Halal drive is mainly driven by market demand or request. We will continue with our current range of Halal Appeton products and monitor the consumers demand for more Halal products.” HOW DO YOU SEE THE DEVELOPMENT OF THE LOCAL HALAL PHARMACEUTICALS INDUSTRY WITHIN THE COMING YEARS? “In the coming years, I will expect to see most of the Halal industry development (to be concentrated) mainly in the health and food supplements category and also OTC products. In the case of therapeutic or prescription drugs, this development will need some time to evolve.” WHAT ARE SOME OF THE CHALLENGES YOU WOULD LIKE THE INDUSTRY’S AUTHORITIES TO ADDRESS AND HOPEFULLY RESOLVE? “If the drive is to make Malaysia an international Halal hub, it is important that our JAKIM certification should be internationally recognised and accepted without additional need for Halal certification by a foreign country’s religious certification body. Currently, even exports to ASEAN countries like Indonesia still require the need for an Indonesian MUI certification, despite the fact that the products are already certified by Malaysia’s JAKIM. “The other more challenging factor is the government support in terms of providing financial assistance to facilitate investments into dedicated Halal production facilities. The biggest challenges are lack of economies of scale in Malaysia’s small population and the stringent regulatory needs for exports will hamper hj and slow the process.”

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event highlights

GULFOOD 2008 TO HOST SOLD OUT SHOW IN DUBAI

Gulfood, the region’s largest food, drink and hospitality exhibition, is set to bring the most international and diverse selection of visitors and exhibitors in its history to Dubai in 2008. The trade-only show is now sold out and has registered a 20 per cent increase in exhibition space this year and will now occupy all available space in the Dubai International Convention and Exhibition Centre. Organised by Dubai World Trade Centre (DWTC), the 13th edition of Gulfood will run from 24th – 27th February 2008. The event has grown to become one of the largest and most international trade shows for food and hospitality in the world and has been expanded by an additional 11,000 sq. meters from last year. The global scope of Gulfood this year will be reinforced by the number of new country pavilions making their debut this year, including Ecuador, Hungary, Lithuania, Malawi, Northern Ireland, Poland, Switzerland and Uruguay. The event is set to welcome more than 2,500 companies who specialise in the food and hospitality sector. Building on the large international presence at this year’s show, over 86 percent of these leading suppliers are from outside of the UAE. Gulfood’s international prominence has been further

boosted by the ongoing growth of the hospitality industry within the GCC region. Research group Proleads estimates that planned hotel development for the GCC is currently valued at US$ 18 billion – US$ 12.7 billion in Dubai alone – increasing the scope of the potential market for foods suppliers, packaging specialists and equipment manufacturers. “Recognising the central economic and social importance of the food, drink and hospitality sectors to the region, we continue to ensure that Gulfood evolves to meet the needs of these industries,” said Helal Saeed Al Marri, Director General, DTWC. “This event has become a hugely influential business development platform, bringing together suppliers and buyers from around the world and fully leveraging Dubai’s position at the heart of the international trade network,” he added. Organised since 1987, Gulfood is the region’s largest and most important industry event of the year and a strategic platform for buyers and sellers to conduct direct business face to face. The exhibition is a showcase for manufacturers, distributors, and suppliers from around the world, representing all of the key sectors within the hj food and hospitality trade.

Interested trade visitors are advised to pre-register online at www.gulfood.com where they can qualify for free entry. Industry business professionals on the day of the show will be able to buy either a Day Pass for AED 40 (US$ 11), or a Four Day Pass for AED 100 (US$ 27).

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event highlights

REGIONAL SPOTLIGHT: HALAL IN THE MIDDLE EAST

Originating from the capital of the United Arab Emirates (UAE), Halal World Expo is a major new event held from 9th – 11th December 2007 to spotlight on the booming Halal market, specifically in the Middle East. Touted as the most comprehensive Middle East event, the Halal World Expo was held at the Abu Dhabi National Exhibition Centre in Abu Dhabi, UAE. It was organised by the Institute for International Research Middle East (IIRME) – the world’s largest organiser of exhibitions, conferences, and training courses, and is a part of the world’s largest human capital company – Informa Plc. Centred on Halal products and services, this regional event has an international focus aiming to cater to a global market of more than 300 million consumers. It targeted to bring together worldwide industry giants in the first event of its kind in the region that covers all sectors and focus areas of the Halal market, and had successfully achieved so, with more than 100 exhibitors taking part in this global gathering of the Halal marketplace. Exhibitors from the areas of food production, and canned, agricultural, dairy and meat products displayed their produce / merchandise at the exhibition. The producers and distributors had the opportunity to meet industry peers and international Halal authorities, to network and create further business prospects. It is often taken for granted that processed food and products available in supermarkets of an Islamic country like the UAE are fully Halal-compliant, unless stated as being for non-Muslims’ consumption. While there are currently systems in place to protect the consumers in the UAE, the fast growth pattern that is currently being experienced in the Halal consumer market means there is a growing demand for a globalised standard across all Halal products. Aside from food, the exhibition also comprised of Halal lifestyle products including Islamic fashion – a market worth over US$ 96 billion annually, cosmetics – a market worth AED 2.06 billion in the UAE alone – and other healthcare products, as there has been a growing demand in the UAE towards items that are Halal compliant. Islamic Finance, which is currently worth between US$

A B U D H A B I N AT I O N A L EXHIBITION CENTRE ABU DHABI, UAE 200 and 500 billion annually, and a consistently growing interest for financial market across the world, was also another focus of the exhibition. Held in conjunction with the trade expo was the Global Halal and Islamic Business Forum, with an estimated participation of 50 delegates. Organised to bring together regional and international Halal and Islamic business experts to discuss the latest challenges, issues, and trends in Halal business, the forum enabled organisations and companies to create a global Halal brand. The two-day forum covered, on the first day, deliberations on analysing current developments in the Halal industry, debating standardisation of Halal certification and Islamic protocols and processes and examining the potential for growth in Halal and Islamic industries. The second day was filled with presentations on designing effective marketing strategies for Halal and Islamic products, discussing challenges and issues in Halal and Islamic business and emphasising the positive attributes of Halal and Islamic products. The forum was also supported

by a one-day post-forum workshop conducted by Irfan Sungkar from KasehDia on Successfully Marketing Halal and Islamic Products. This post-forum workshop discussed an overview of the global Halal food markets – comparing region-byregion characteristics to note the similarities and differences, and the impact on producers and exporters. The workshop also covered topics on export market penetration process and strategy in selecting the most profitable markets, understanding internal market characteristics, and the importance of product differentiation, consumer segregation, or segmentation, and the effect on product development and innovation. Also included in the discussion were deliberations on marketpositioning and branding strategy of Halal food products, and understanding market access, touching on tariff and non-tariff barriers, import regulations, and conforming to different Halal standards in food safety, quality requirements, and traceability. The Exhibition Director of Halal World Expo, Christine Weaver said, “By focusing on globalising quality Middle East Halal products, we offer both regional and international exhibitors a gateway to penetrate the Middle East and international markets. This direct route provides a platform for exhibitors to market their products and services to an ever-increasing demand in a worldwide industry.” hj

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Cover Story

MIDDLE EAST

Rising

Halal Awakening for the Middle East

he next time fate takes you to Dubai in United Arab Emirates take a stroll into the Jawhara Hotel Apartments, where they provide “a pure Halal atmosphere”, according to iits ts senior sales manager Munir Ahmed. Here, “we don’t allow alcohol,” Munir says, “and right from the cleaning of the hotel up to the accounting, we follow everything according to Islamic and Halal concept.” He added that the hotel aims to give guests “a taste of the Islamic concept, how the people of Islam entertain their guests, welcome them and take care of them.” More evidence of Halal tourism taking off in the Middle East is when chairman of international hotel chain Almulla Hospitality, Abdullah Mohamed Almulla announced a hefty budget of US$ 2 billion to beef up their branding as the world’s first Shariah and Halal compliant chain of international hotel. Not just in tourism, the mainstream beauty industry is also focusing their attention to the hijab wearing population of Arabia, offering stunning Shariah compliant Halal cosmetics. It’s easy to see why when the market for beauty and grooming products as a whole in the Middle

East is currently growing at 12 per cent per annum, valued at US$2.1 billion a year. An estimated total of US$ 150 billion of Halal merchandise are distributed through the Emirates each year, and a large proportion of these are cosmetics and personal care items. According to Messe Frankfurt, organisers of Beautyworld Middle East, the growth is being mirrored by the demand for Halal personal care products, which in turn is being driven by increased consumer knowledge of the ingredients used and the way they are produced. It is clear that the spike in interest for Halal tourism and cosmetics are just but a few clear indicators of the increased awareness of Halal in the region. These examples are also clearly a sign of the

Words By KAMARUL AZNAM KAMARUZAMAN

rate at which the Halal concept is beginning to be appreciated and applied in the Middle East.

Solving Problems of the Ummah Hoping to reinforce Halal within the souls of the Muslims is one organisation that has been able to group all Muslim nations under one umbrella - the Organisation of Islamic Conference (OIC). To alleviate poverty, which seems to be the most pressing issue for the ummah currently, OIC looks to increasing trade amongst OIC members. Several measures are in place and the most crucial being the setting up of a Trade Negotiating Committee that works to implement the Preferential Trade System (TPS-OIC) by 2009. TPS-OIC would create a

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THE SPIKE IN INTEREST FOR HALAL TOURISM AND COSMETICS

ARE JUST BUT A FEW CLEAR INDICATORS OF THE INCREASED AWARENESS OF HALAL IN THE REGION. THESE EXAMPLES ARE ALSO CLEARLY

A SIGN OF THE RATE AT WHICH THE HALAL CONCEPT IS

BEGINNING TO BE APPRECIATED AND APPLIED IN THE MIDDLE EAST.

free trade zone covering all Muslim countries, and would put into place a common tariffsensitive system for intra-OIC trade. The Islamic Development Bank (IDB) has also established the International Islamic Trade Finance Corporation (IFTC), where it will create a synergy with active export credit corporations and provide medium and longterm programs in financing intra OIC trade. Another OIC affiliate organisation is taking a different approach. According to the Islamic Chamber of Commerce and Industry, or ICCI, a large percentage of Muslims are either from the middle to upper class, brilliant, possess large tracts of land and/or natural resources and are highly competent in technology. The problem, or opportunity depending on how one looks at it, is to match the funder with the one with the idea, and the one possessing the land or natural resources to the one with the technology. With this realisation, ICCI hopes to offer the fundamentals of food, commerce and trade in one neat package and get the Muslims out of the conundrum they are in today. For ICCI, one of their main new initiatives will be Halal.

Accelerating Developments As an affiliated organ of the OIC representing the private sector of all 57 member Islamic nations, ICCI’s membership comprise of the national unions, federations and chambers of commerce and industry of OIC member countries. It aims for closer collaboration within the fields of trade, commerce, insurance

and reinsurance, shipping and banking, as well as the promotion of investment opportunities and joint ventures in OIC member countries. ICCI is led by its president Sheikh Saleh Kamel, a highly respected Saudi businessman with varied interests in tourism, media as well as the Islamic banking and finance industry. He was also the chairman and founder of the Dallah al Baraka Group, as well as chairman of the General Council for Islamic Banks. And judging from recent developments, ICCI will also be looking into the global framework for Halal. Headed by Sheikh Saleh Kamel, ICCI is expected to bring in the OIC support for the establishment of one global Halal standard and accreditation. To speed up the process, ICCI has already formed a partnership with the International Halal Industry Alliance, or IHI Alliance. As a non-governmental, nonnational alliance of Halal stakeholders formed from the resolutions of the first World Halal Forum (WHF 2006), IHI Alliance is seen as the perfect vehicle to push the Halal agenda on a global scale. To affect and announce this partnership, Sheikh Saleh Kamel will be speaking at the coming World Halal Forum in Kuala Lumpur on May 12 – 13th, 2008, where he is expected to roll out ICCI’s planned programs and intended collaborations to help accelerate the move towards globalising Halal standards and accreditation.

Enter Turkey ICCI may not be the only party looking to lead the move towards a single global Halal standard. It seems that the Republic of Turkey is also eyeing a piece of the action. In the last high level meeting of OIC’s Standing Committee for Economic and Commercial Cooperation (COMCEC) in Istanbul on 14 – 17 November, 2008, Turkish minister of state Kursad Tuzmen highlighted how rapid the development has been within the global Halal industry. He pointed out the emergence of multi-national companies intensifying their ventures to increase percentage in the Halal market. Kursad also warns that as a body representing the Muslims, OIC should accept responsibility of controlling global Halal trade. This must be done through the setting up of a Halal Food Standard under the auspices of the OIC. In brief, Kursad said, a common standard, logo, accreditation as well as the expedited development of intra-OIC trade through a monitoring body, should be the common goal of all members. In a report of a workshop conducted on the sidelines of the COMCEC meeting for “Marketing and Packaging of Agro Products”, it emphasised the urgent need to provide continuous training on national and regional levels on areas deemed crucial for controlling trade of the Halal sector. Such areas include workshops for successfully starting, managing and THE HALAL JOURNAL

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Cover Story Middle East Rising

sustaining small businesses; enhancing capacity in entrepreneurship, human resource, export and international trade, animal product processing technology, as well as marketing and packaging of Halal food, fish and its related byproducts. The report also suggested that OIC member countries need to realise the true aim of developing a common Halal food standard, which is to provide the much needed international certification benchmark for production of

food for the Muslim ummah, even in non Muslim countries. In short, the developments towards globalising the Halal standard and accreditation is expected to reach feverish pace within the coming years. If things go according to plan, Muslims the world over will one day have a single standard to govern the production of their food, their cosmetics, their leisure, and quite possibly, all other rituals we perform daily as a human being and as a Muslim. How strong would the ummah be then we wonder… hj

FORAS: Vehicle for Wealth Redeployment for the Ummah

Dr. Hatim Jamil Mukhtar ICCI’s assistant secretary general for projects

he global Muslim ummah needs a proper vehicle on the macro level to redeploy the wealth generated within some parts of the world to the others, and the only workable approach of doing this is through business-oriented joint ventures. That vehicle, according to ICCI’s assistant secretary general for projects, Dr. Hatim Jamil Mukhtar, is the Jeddah-based FORAS Investment Company, of which he is also the chief executive officer. Set up primarily to unearth hidden investment opportunities within the OIC, FORAS will evaluate proposals that will lead to growth and development, especially in poor and needy countries, “but in a business-oriented way,” said Dr. Hatim. Formed in collaboration with the Islamic Development Bank (IDB), plus a few major Middle East executives, the company is equipped with a start-up capital of US$ 100 million. With its business integration model, FORAS aims to generate at least US$ 2 billion of investment capital to redeploy within the targeted OIC countries. “We started by drawing an investment road map for the OIC and we broke this down

regionally and further into individual countries. From there, we managed to identify the strengths and opportunities of each country, and we built out of that a portfolio of investments to cover various sectors,” he explained. Dr Hatim explicated that for the first few years, FORAS will prioritise in matching the demands within the OIC countries; and the initiatives will mainly come from within the company itself. They have so far received 23 project proposals, and they hope to graduate this into 10 companies by end of 2008. “There is room for us to receive other proposals where we act as venture capitalists,” he said. “But the proposals have to be bankable documents. We will first do a feasibility study on the business plan; then we carry out the due diligent process and then

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WE STARTED BY DRAWING AN INVESTMENT ROAD MAP

FOR THE OIC AND WE BROKE THIS DOWN REGIONALLY AND FURTHER INTO INDIVIDUAL COUNTRIES. FROM THERE, WE MANAGED TO

IDENTIFY THE STRENGTHS AND OPPORTUNITIES OF EACH COUNTRY, AND WE BUILT OUT OF THAT A PORTFOLIO OF INVESTMENTS TO COVER VARIOUS SECTORS.

only we decide if there is room for investment and if it matches our priorities and so on.” Dr Hatim also added that they maintain a close working relationship with the Business Owners Union (BOU), another subsidiary of ICCI, which acts as a shadow organisation for FORAS. The two companies communicate with each other on prospective investments that they endeavour. “We look for developments that would create more jobs, add value to the country’s national economy and if possible, one that would involve the transfer of technology from one Muslim country to another,” said Dr Hatim. Initially, the sectors that would be of particular concern include agriculture, medicine and drugs, energy, technology and the media. Dr Hatim also cited the tourism sector, after his meet with former Malaysian Prime Minister, Tun Dr Mahathir Mohamad, recently. “He advised that we invest in developing labour-intensive projects that would bring added-value to the economy. He definitely meant the tourism and agriculture sector, where we can provide food, alleviate poverty, and reduce the number of unemployment all at the same time,” he explained. Dr Hatim also explained that FORAS would make it a point to ensure that all of their projects

will comply with the Shariah and Halal requirements to the extent of rephrasing the due diligent process when they evaluate business proposals and accommodate Halal elements into the process. “Because we are investing in food and pharmaceutical industries, there will surely be room for the Halal concept to be adopted,” he said. “We are also looking forward to cooperate with the IHI Alliance where we hope to get some benefit of experience from IHI in complying with the Halal concept. This has to be hand in hand.” He however admits that the Halal concept in the Arab world has not been fully appreciated until recently. In fact, he said people used to make fun on the ones who raises this issue, because Halal was understood to be merely the act of slaughter facing the direction

of Mecca, and nothing more. “Nobody imagined that Halal is applicable in the food industry, in the pharmaceuticals industry, the logistics, and in many other areas,” said Dr Hatim. “Now things have changed. Today, people realise that this is a very serious issue, and we are learning from the Malaysian experience on how to adopt this concept and expand this into the GCC region.” Dr Hatim also agrees that each potential project has its own mechanism and objectives to fulfil, but in the end, the project, together with the company established and the board of directors and shareholders must reflect “the universality of Islam” in its operations. “During the first or the second rounds of investment, we structure the board of directors and the shareholdership in a way that you THE HALAL JOURNAL

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Cover Story

Middle East Rising

can see the universality of Islam in the company and the sector,” he explained. On whether the Arabs are doing enough to safeguard the Muslim ummah and bring them out of poverty, Dr Hatim refuted this and said that although there is a huge surplus of money currently in the GCC coming back from the West, especially after the 9/11 incident, there were no investment channels for them to finance. “Anyone who has capital will look for an investment opportunity where he can inject his money in. Unfortunately, there were no sound investment channels. Nevertheless, they still do invest. I can tell you that the Saudis alone; they have invested about RM1.224 trillion in the secondary market just in 2006,” he said. He noted that the need for a solid primary investment market is pressing for it will act as an attractive redistribution outlet for the surplus money in the region. In actuality, this is exactly what he hopes FORAS will be able to do. “For the Saudis, or for anyone who has money, they will look at bankable investment outlets. It should be business-oriented by undertaking joint ventures within a stable environment. And this is what we are trying to promote, between the ones who has the money and the ones who has the ideas and the projects,” he added. Dr Hatim also indicates that FORAS is looking to benefit from the Malaysian automotive experience after studying the demands within the OIC countries. He noticed a huge demand for an affordable car, and he thinks FORAS and GCC executives can help finance the Malaysian automotive sector and secure for new markets within the region and within other OIC countries. In addition to automotive, they are also looking at possible joint ventures within the power generation sector as well as in biotechnology and pharmaceuticals sector, where Malaysia is viewed as playing hj a major role in this regard.

Affecting Change Through Business

usiness has a special place in Islam as it greatly encourages Muslims to take up trade and business as a profession. Even the Prophet Muhammad SAW was a m merchant erchant before he became a Prophet. Hoping to group these elite Muslim business owners and the private sectors around the world is the Business Owners Union (BOU) – an exclusive businessmen club formed by Islamic Chamber of Commerce and Industry (ICCI) - to encourage business networking and enhance the volume of intra-OIC trade. Open to all OIC-based Muslim businessmen as well as to Muslim minorities in non-OIC countries, BOU also acts as a vehicle to overcome obstacles that impede the progress of inter-OIC trade through seminars and discussion sessions. “Membership will be offered to all elite businessmen registered with the chambers of OIC member countries, be it in the food industry, industrial, agriculture, construction or other related industries,” said Abdulmohsen Linjawi, Assistant Secretary General of BOU. He also said that basically the idea is to help Muslim businessmen in attracting potential investors to their projects, as well as to help them invest in other projects overseas or to expand their businesses to other OIC countries, through the help of their many liaison officers based in different cities and capitals of the OIC countries. “Our liaison officers will help the members expand by supporting them with the right information or the right contacts; or the most suitable businessmen who can help distribute their products in other OIC countries,” he added. Nevertheless, the most interesting benefit of becoming a member is the privilege of sharing attractive projects with each other, as well as being given the preference to undertake any OIC or ICCI-related projects, he said. To this effect, Abdulmohsen explains for example that if a fellow BOU member requires US$ 50 million to finance a project but only has US$ 20 million, he has the right or will be given the preference to promote this to other BOU members, as well as to other chambers of commerce within the OIC for additional funding. “But the project has to be viable and he must be ready with a full set of promotional materials, including the business plan, cash flow projection, profit projection, and so

on. And it obviously has to be Halal or Shariah-compliant,” he said. In addition to giving priority of presenting evaluated projects to members, BOU also aims to create continuous ties among Muslim businessmen, trade companies, and investment corporations within OIC countries. “BOU will always be looking for profitable projects and ideas through the BOU members in the OIC countries; and these good ideas will be communicated to the rest of BOU members if they are a detailed and approved business plan,” he said. Abdulmohsen also hopes BOU can actively remove hindrances that impede the growth of commercial exchanges by facilitating free movement for Muslim businessmen within OIC countries, as well as enhance the volume of tourism and exchange of labour. Suggesting that BOU is different from other chambers of commerce notorious for its bureaucracies, Abdulmohsen explains: “BOU does not go through the normal routine as most other chambers go through. We basically identify first the needs of the BOU member via questionnaires, which we will then focus to provide the right data and contacts directly to them for business expansion.” He added that while there are no special requirements to qualify businessmen or large corporations from joining, apart from being a Muslim or Muslim-owned, BOU nevertheless considers a person or corporation with a net worth of at least US$ 5 million to be eligible. “Therefore, we would like to invite all elite Muslim businessmen to join BOU and make a difference by promoting change within our ummah through trade and commerce. We feel the only way the Muslim ummah can change themselves is through active business participation,” he said. BOU is currently on a membership drive and annual membership fee is available either in Silver or Gold package, set at US$ 1,000 and US$ 2,000 per annum respectively. To become a member, kindly log on to www.halaljournal.com/bou or send an email to BOU’s regional hj office at bou@kasehdia.com.

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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

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Strengthening the Economic Standings of the Muslim World Published in collaboration with the Islamic Chamber of Commerce & Industry

espite the fact that the Islamic bloc comprises 25 per cent of the world’s population and possessing 40 per cent of the world’s natural resources, the share of Islamic trade globally is still only 4.3 per cent. Hoping to change this is the Islamic Chamber of Commerce and Industry (ICCI) - an organ of the Organisation of Islamic Conference (OIC) representing the private sector within the 57member nation institution. Helming ICCI since February 2005, its president, Sheikh Saleh Kamel, has been working hard to accomplish its members’ aspirations. Central to this is the stated goals within ICCI’s 10-year action plan that concentrates on developing three main areas, namely moral, scientific and general goals. Concerning the moral goals, ICCI has adapted the revival of the moral ethics in the trade operations, to spread the vision of an Islamic-oriented economy, to

enroot the solidarity spirit and to spread the language of the Qu’ran. Within the scientific goals, ICCI has been concentrating on the exchange of labour, increasing exchange in tourism, increasing the ratio of investment, increasing the exchange of trade and increasing the national income for every city within the OIC member countries. In addition, ICCI also looks to encourage cooperation within the banking industry and to facilitate the transfer of capital and develop educational programmes according to the demands and needs of the market. Educational studies and researches have also been given priority by encouraging inventions amongst the Muslims. A Muslim-oriented media is also in the cards whilst Muslims youth are encouraged to engage in self and private work fields. Within the general goals, efforts have been concentrated on strengthening the relations with international organisations and to settle the commercial and industrial disputes through proper jurisdiction. Just last year in 2007, ICCI has

succeeded in overcoming many challenges and carried out an equal number of accomplishments. This includes the declaration in Malaysia of the International Zakat Authority - a single international Zakat organisation to overcome problems such as the depreciating rate of economic developments and the increase in poverty and unemployment rate within the Arab and other Muslim nations. As President of the ICCI, Sheikh Saleh Kamel has succeeded in presenting the idea of the International Zakat Authority to the leaders of 20 Muslim countries, with further agreements obtained to establish affiliates in designated countries. This is in accordance to an earlier agreement signed between the government of Malaysia, the Islamic Development Bank, ICCI and the general council for banks and Islamic financial institutions in November 2006 to establish the International Zakat Authority. Pursuant to the recommendations of the Zakat conference held earlier in Malaysia, a forum of the Islamic Fiqh (jurisprudence) compound was

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ICCI under the leadership of Sheikh Saleh Kamel has accomplished most of its 10-year action plan within the past three years, including: Establishing affiliates for the International Zakat Authority Establishing an international Islamic company with a capital of US$200 million to seek and explore investment opportunities within the OIC world The founding of EMAR Bank to explore investment opportunities with a capital of more than US$100 million, and The launch of an international agency with a capital of US$100 million to promote the exchange of tourism within the Muslim world.

An international Islamic bank called EMAR Bank with a capital of US$100 million was also established. ICCI is currently working to increase its capital to USD$1 billion from the contributions of various Islamic financial institutions, government authorities and individuals. later held in Bahrain from 5th - 7th May 2007 to discuss the foundations of the International Zakat Authority and its related jurisdictions. The forum subsequently approved for its establishment and a related agreement was signed to open affiliate offices for the Zakat Authority in Benin, Senegal and Mauritius. To increase the level of trade and investment, an international Islamic company has been established with a capital of US$200 million to explore new investment opportunities within the Muslim world. A similar company with a capital of US$100 million has also been launched to promote the exchange in tourism amongst the OIC member countries. To counter the depreciation in trade exchange, ICCI is also currently working to apply for an open entry visa for businessmen traveling within the OIC, as well as working to establish free trade zones and to remove or minimise the obstacle of customs between the OIC member countries. As a means to increase transportation, a businessmen

union armed with a capital of US$200 million has been established along with an international Islamic company to explore investments opportunities in transportation. In addition to this, an international Islamic bank called EMAR Bank with a capital of US$100 million was also established. ICCI is currently working to increase its capital to USD$1 billion from the contributions of various Islamic financial institutions, government authorities and individuals. Headquartered in Bahrain, EMAR Bank will specialise in exploring direct investment opportunities to finance, along with managing the funds of the contributing banks and financial institutions. EMAR bank will also issue four types of share options and will work through specific mechanisms in order to increase its capital to a total of US$100 billion. The rationale behind this is to increase its investment capacity, as well as increasing labour, tourism and trade exchange amongst the OIC member countries. ICCI is also continuing its efforts to push business

associations to adopt the young businessmen programme “Omar Al Ard”, as well as establishing an Islamic media company with a “fair vision”. It has supported a few projects and inventions as special cases in view of this. Another area that was given specific attention by ICCI is the Islamic Waqf or “endowment” programme. This optional, nonprofit initiative is based on the goals and principals of ICCI in activating the development of social and economic functions of Islamic endowments and accomplishing the social wellbeing objectives for OIC member countries. Just like any other ICCIrelated establishment, the Waqf programme also has all the related privileges including an agreement prepared along the basic system of endowments where ministries approve the system. Many businessmen from the Kingdom of Saudi Arabia and the UAE have been contacted to donate to this Waqf programme and primary discussions have been conducted with endowments ministries concerning the establishment of Waqf accounts. For more information on how ICCI is serving the Muslim business community and helping to affect positive changes to the economy of the Islamic world, please log on to www.icci-oic.org. hj

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AIDING MUSLIM COMMUNITIES THROUGH PROJECTS

Words By HUZAIME HAMID

THE MUSLIM WORLD IS COMPOSED OF 57 NATIONS GROUPED TOGETHER AS MEMBERS OF THE ORGANISATION OF THE ISLAMIC CONFERENCE (OIC) AND THE INNUMERABLE COMMUNITIES RESIDING WITHIN THE REST OF THE NATIONS OF THE WORLD. THERE ARE NUMEROUS MUSLIM MILLIONAIRES AMONG THE 1.6 BILLION WORLD MUSLIM POPULATION. NOW, LET US SEE HOW THE POOR MUSLIM COUNTRIES COULD BENEFIT THE MILLIONAIRES THROUGH CORPORATE SOCIAL RESPONSIBILITY (CSR) PROJECTS.

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ithin the OIC member countries are 1.4 billion Muslims, while the total number of global Muslims has been estimated at 1.8 billion. One of the most glaring items one would notice when looking at the state of the Muslim world would be the large disparity between the rich and poor nations. The examples in figure 1 are instructive: The wealth of the Islamic world, as measured by GNI per capita in 2005, compared to the world’s is as follows (re: the Monograph): Average GNI per capita for OIC Countries World “Developing Countries” “High Income Countries”

USD 1,670 6,987 1,746 35,131

to pull the poorer Islamic states out of their present state of being. They include: 1. Immediate provision of aid for daily living needs, 2. Education and the provision of employable skills, and 3. Infrastructure development, entrepreneurship, investments, trade, and labor exchanges.

community-led efforts, and/or that of conventional charitable actions. Needless to say, such economic activities would also provide employment at the local level. The role of corporations could, in fact, be especially effective in getting aid directly to the affected Muslim communities. In reciprocation, donor and

FIGURE 1

CATEGORY

HIGHEST

LOWEST

Gross National Income (GNI) per capita intra-OIC (2005)

USD 21,186

USD 180

The above statistics imply that within the Islamic world lies the ability for richer countries and communities to lead the poorer ones out of their backward conditions. Within the Muslim nations are several entities tasked to help the Muslims, for instance:

Percent of population living under USD1 a day (2002-2004)

70.8%

Low or High Human Development (HD) (2004)

7 countries in “High HD”

17 countries in “Low HD”

THE ISLAMIC DEVELOPMENT BANK, whose main functions include the provision of equity participation and of grant loans for productive projects and enterprises. It also gives financial

Human Poverty Index (2004), percent of population “left out of progress”

60.2

7.6

Source: Islamic Development Bank’s (IDB) Statistical Monograph, No. 27 2007 (“Monograph”).

An idea that could help expedite development in poorer Islamic countries would be for a corporation to adopt a town or a community in need, providing it with all that it needs for development. assistance to member states in other forms for their economic and social development and to foster foreign trade among member countries, THE ISLAMIC CENTRE FOR THE DEVELOPMENT OF TRADE (ICDT), which was set up to promote trade exchanges among member countries, THE ISLAMIC EDUCATIONAL, SCIENTIFIC AND CULTURAL ORGANIZATION (ISESCO), which has several objectives; two key ones are to strengthen cooperation among member states in the field of education, science and culture and to coordinate the efforts of OIC institutions in those aforementioned fields to foster Islamic solidarity, THE ISLAMIC SOLIDARITY FUND (AND ITS WAQF), which has three objectives, one, to take all possible steps to raise the intellectual and moral levels of the Muslims in the world; two, to provide required material relief in case of emergencies such as natural catastrophes and man-made disasters that may befall Islamic states; and three, to grant assistance to Muslim minorities and communities so as to improve their religious, social, and cultural standards, and THE WORLD ISLAMIC ECONOMIC FORUM (WIEF), which is primarily to foster the interaction between businesses in the Muslim world. Scholars, researchers, and thinkers have generally come to the same conclusion as to what is presently necessary

ne key group within the Islamic world that could play a big role in the efforts to improve the lot in life of Muslims the world over is corporations. An idea that could help expedite development in poorer Islamic countries would be for a corporation to adopt a town or a community in need, providing it with all that it needs for development. Some of the items that a corporation could provide in whole or in part, would be: Food, Medicines, Education, Infrastructure building and housing, and Other necessary public services such as water, electricity, communications, and sewage services. The efforts could be a mix of profit-making motives, provision of organisational capacity for

recipient governments could lend a vital hand through fiscal actions such as matching resources, tax cuts, subsidies and so on. This could potentially provide the necessary mass and scale to tip the balance in the favour of such efforts. However, are there enough companies within the Muslim world to do this? Malaysia alone has approximately 3.3 million businesses registered, according to the latest statistics from the Companies Commission of Malaysia. A mere 20 per cent of them making themselves available would mean some 660,000 businesses could adopt a community or combining together to adopt a community somewhere within the Muslim world. But are companies in the Muslim world big enough to do this? Many companies have revenue amounts greater than some countries’ GDP (Gross Development Product). Refer examples in Figure 2. THE HALAL JOURNAL

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orporations could also venture into new activities for themselves, even in areas that are traditionally thought of as unprofitable, such as education. With 35.7 per cent of its population below 15 years of age (in 2005) and an adult literacy rate of 70 per cent (in 2000 to 2004), the need for education in the Muslim world stands out. Its profitability can be gauged from the success of the education sector in Malaysia. The 2,913 private schools in Malaysia had a gross revenue total of USD 930 million (RM 3.16 billion) in 2003. Companies in Malaysia have also started to directly aid in the development of schools. An example would

FIGURE 2

Company

2005 Sales USD mil.

Larger than the 2005 GDP of

Petronas

36,070

Kazakhstan, Oman, Syria, Tunisia, etc.

SABIC

20,933

Iraq, Lebanon, Uzbekistan, Yemen, etc.

Sime Darby

5,489

Albania, Gabon, Guinea, etc.

Etisalat

3,503

Benin, Chad, Mali, Niger, Palestine, etc.

Al-Rajhi

2,133

Comoros, Djibouti, Gambia, Guinea-Bissau, etc.

Source: Respective companies’ websites and the Monograph

Its profitability can be gauged from the success of the education sector in Malaysia. The 2,913 private schools in Malaysia had a gross revenue total of USD 930 million (RM 3.16 billion) in 2003. be the “Adopt a School” project, a private sector initiative by MDeC (Multimedia Development Corporation), which is parallel to the “Smart School” efforts of the Malaysian Ministry of Education. One of the key objectives of this programme is to improve the skills of human resources. What is the pay-off for companies for these activities? Brand loyalty for generations to come, captive markets, unearthing new talents, establishing new supply and distribution chains, as well as creating new markets are some of the direct and indirect benefits corporations stand to reap. Truth be told, the market for Islamic countries as a whole is not small. In 2000, the combined GDP of OIC countries stood at USD 1.5 trillion, with a per capita GDP PPP-adjusted (Purchasing Power Parity) of USD 3,125. Household final consumption expenditure then stood at 57 per cent of GDP and government final consumption

expenditure at 14 per cent. Between 1990 and 2000, the GDP for OIC countries as a whole grew at a simple average of 4.8 per cent as compared to the world’s 3.0 per cent. Needless to say, faster economic growth means greater opportunities and returns for businesses involved in and with these countries. Further, a market of 1.4 billion people with a growing GDP is not something a businessman can afford to bypass. China’s own strong GDP growth figures in recent times, for example, took the world by storm and was accomplished with a comparable, albeit smaller, population.

The great advantage that Islamic countries have is quite simply its demographics. It has a young and growing population that the Monograph notes is likely to grow to 1.7 billion by 2015. This would form some 24 per cent of the world’s population, up from 22 per cent in 2005. In short, the Muslim world continues to be a market too large to ignore. By joining in and catalysing the growth of communities through such acts as adopting and developing communities, companies stand to gain first-mover advantage and all that accrues with it. hj

Volys Star

Halal certified

premium cooked poultry products Turkey breakfast meat Meal components Premium charcuterie products

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SCHOLARSHIP Halal Journal Scholarship (HJS) been conceptualised to enhance knowledge, research, talents, and intellectual discourse in matters relating to Halal. HJS is one of KasehDia’s initiatives to strengthen development of the Halal industry both locally and globally. HJS is aimed at encouraging and developing the concept of halal being a diverse spectrum of activities not only promoting scholastic discourse but developing the industry into a major economic sector.

Eligibility

The Scholarship is open to all citizens of the world. Candidates should be pursuing or intend to pursue a bachelor’s degree in journalism, food science, logistics and Islamic finance and other Shariah related studies from an institution of higher learning. The institution must be accredited by the local educational accreditation authority. Applicants should not be in receipt of any other scholarship awards.

Nature of Award

HJS will cover approved tuition and examination fees but excludes board and lodging. Where and when applicable, other allowances such as for books and equipment, approved return air fare, warm clothing, relocation, end of study and thesis/dissertation completion, will be considered.

Application Process & Deadlines

Applications shall be submitted in English in the following manner: Write a letter/report setting out your case as to why HJS should choose you as its recipient. This letter/report should contain your personal information and details of your expected tuition and examination fees. Copies of academic certificates and transcripts. Letter of Offer from the institution of higher learning. Photocopy of personal identification document (e.g. passport, driver’s license) Letters of recommendation written by individuals under whom you have studied or worked will be requested upon your application being short listed. Any other relevant details to support your application. Please mail the completed application to: Halal Journal Scholarship Selection Committee C/O KasehDia Sdn. Bhd. (492275W) 31-2 Plaza CrystalVille, Jalan 22A/70A, Desa Sri Hartamas, 50480 Kuala Lumpur. Deadline: Applications for 2008 should be received by 31st March 2008. Only short-listed applicants will be notified and will be required to attend an interview. HJS reserves the right to award any applicants or none whatsoever if applicants do not meet its aspiration and philosophy.

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Multilateral institutions, or MLIs, are important platforms for countries to work closely with each other on common issues and participate in various treaties, agreements and trading systems to enhance cooperation. As far as Muslim countries are concerned, the OIC is one MLI entrusted to uphold Muslim solidarity and prosperity. But transformation has been very slow. Hariz Ahmad Kamal takes a comparative look between OIC and the European Union.

Multilateral Institutions

OIC vs The EU

ultilateral Institutions (MLIs) are often involved in agreements or cooperation of multiple countries working together on common issues. With the rapid globalisation, countries are now becoming more interdependent especially in economic matters. Aside from the economic rationale, MLIs are also known to be platforms to resolve conflicts among nations and ensure stability and peace. The Organisation of the Islamic Conference (OIC), one of the biggest MLI in terms of membership, is an inter-governmental organisation grouping 57 states. These OIC members have agreed to pool their resources together, combine their efforts and speak with one voice to safeguard their interest, and ensure the progress and well-being of its people, and those of other Muslims around the world. Progress for OIC should therefore be measured based on their aims as stated in the OIC Charter, where it vows to strengthen Islamic solidarity among member states, strengthen cooperation in the political, economic, social, cultural and scientific fields, as well as to safeguard their dignity, independence and national rights. However, not much can be said about the economic progress between OIC countries. Nonetheless, there have been

numerous steps taken to increase intra-OIC trade. This includes the establishment of the Islamic Trade Finance Corporation in 2007 by the Islamic Development Bank (IDB), and the International Islamic Company for Exploration of Investment Opportunities and Promotion of Intra Trade in 2006 by the Islamic Chamber of Commerce and Industry (ICCI). As for intra-OIC maritime trade, the Bakkah Shipping Company (BASCO) has recently been established by the Organisation of the Islamic Ship Owners Association to advance technical cooperation and the harmonisation of rules and regulations in maritime transport. In addition, ICCI has also set forth a Ten-Year Work Plan, which is currently in the process of finalising the establishment of Human Resource Development Companies in OIC member

states. Annual meetings of the private sectors are also being promoted through specialised workshops and exhibitions, and the facilitation of the free movement of businesspersons and investors within OIC member states is currently being vigorously pursued. However, intra-OIC trade still remains small representing only 14.3 per cent of the total global trade of the OIC countries. As compared to the European Union (EU), intra-EU trade accounts for over 70 per cent of total EU trade. So the question is, what is hampering the growth of intra-OIC trade? â&#x20AC;&#x153;There has to be a serious revamp of the existing process and framework to ensure efficiency and ultimate effectiveness.â&#x20AC;? (1: Kamal, 2007) If it is indeed the current internal process and framework that is slowing down the trade within OIC and amongst Muslims, the subsequent

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question is: should OIC adopt the EU’s economic and monetary affairs’ working arrangements? (1) Currently, the Department of Economic Affairs under the General Secretariat is responsible to draw up plans and undertake development studies and programmes designed to foster economic, technical and trade cooperation in priority fields as defined by the Islamic Conference. It is also responsible to speed up the economic progress of OIC member states through the development of their economic and human possibilities and potential, and the protection of their natural resources in cooperation with banks, organisations and other institutions. On the other hand, a number of institutions, primarily the Council of the European Union, European Commission and the European Parliament regulate the EU. These EU

Economic and Monetary Union (EMU), whose purpose is to integrate the economies of EU countries more effectively. Another significant factor that promotes the high percentage of intra-EU trade is the use of a single currency - the Euro, which benefits individuals and businesses. Consumers can compare prices more readily and this promotes price competition. Businesses also reap similar benefits. Other countries will more readily accept invoices in Euro than most of its predecessor currencies, thus reducing their foreign

platform to enable connections for further collaborations and networking, to enhance and increase intra-OIC trade. With this aptitude in hand, increased public sector dialogue amongst OIC members is crucial. The dialogues would then lead to top-level decision-making coordination, which will then help synergise strategies to find the way forward in increasing intra-OIC trade. The OIC also represents a substantial market for investment and development opportunities. Thus, apart from governmental collaborations,

exchange risk. The Euro also helps ease interest rates, budget deficit, inflation rate and the debt-to-GDP ratio. Having said that, OIC indeed have the links and means to achieve what EU has achieved. The OIC already have an existing connectivity and linkages in terms of financial institution, i.e. the Islamic Development Bank (IDB). Thus the existing linkages between OIC, IDB, and the booming Islamic finance are important instruments in ensuring intra-OIC trade to blossom tremendously. In addition, the global Islamic banking and finance industry could also benefit from this. Islamic finance has since gained popularity in many Muslim minority countries, including Hong Kong and Singapore, who have declared their intentions to become an Islamic finance hub. Therefore, Islamic finance lends itself as a credible

private sector institutions should also look to OIC for sustainable long-term growth. As a multilateral institution, OIC must not stray from its purpose to fortify Islamic solidarity among its member states, to strengthen cooperation in the political, economic, social, cultural and scientific fields, as well as to safeguard the dignity, independence, and national rights of the Muslims. Like it or not, OIC is the only vehicle the Muslims have to bring them out of the circumstance they are in today. Making it work is hj therefore not an option.

As a multilateral institution, OIC must not stray from its purpose to fortify Islamic solidarity among its member states.

institutions have helped remarkably in enhancing intra-trade within the Union. One of EU’s most pivotal institutions is the European Commission, which acts as the executive branch of the EU. The body operates in the method of cabinet government and is responsible for proposing legislation, implementing decisions, upholding the Union’s treaties and the general day-today running of the Union. One of its main responsibilities is to assess whether each member state’s economic policy is in line with the Union’s agreed objectives – economic, social, and environmental. Each year, member states provide the Commission with detailed information on their economic policies and the state of their public finances. Euro-area countries provide this information in ‘stability programmes’. Other member states do so in the form of ‘convergence programmes’. Apart from that, EU member governments run their economies according to similar principles of economic management. They coordinate their policies in order to deliver steady growth; create more jobs and maintain a competitive economy across the EU, one that will, at the same time, preserve the European social model and protect the environment. All EU member states are part of the

REFERENCES (1) Muslims Trading With Muslims, What’s Stopping Us? Hariz Kamal, The Halal Journal Jul/Aug 2007 p46-47 (2) http://europa.eu/pol/emu/overview_en.htm (3) http://www. oic-oci.org/oicnew/page (4) http://www.oicun.org/ categories/The-OIC/About-OIC/OIC-in-Brief (5) http://europa. eu/institutions/inst/comm/index_en.htm (6) The Role & Contribution of Islamic Finance: Building the Embedded Capital of the OIC World, Iqbal Khan, The Labuan International Islamic Finance Lecture Series II. 16 November 2007

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Marketing of Halal Products

The Way F

Today, Islam is the fastest growing religion on earth, both by birth and adoption, with the Muslim population estimated to exceed 3 billion by 2010. With the global Halal market estimated to be worth US$150 billion a year and the Halal food industry pegged to grow at a rate of 2.9 per cent annually (Asia Inc, July/August 2007), businesses should indeed be tapping at this growing market segment.

alal’s burgeoning popularity can be linked to religious fervour; and beliefs that it’s cleaner, healthier and tastier (Burgmann, 2007). Halal logo has now become a symbol of quality and religious compliance, and this makes it sound as the new green. Then again, some argue it is driven by consumers’ urge to follow ritual or their desire for acceptance, while others see it as part and parcel of another rising global trend. Another reason for the tremendous acceptance of Halal within the global population is the process of assimilation. Foreign foods in some countries as in Europe have become assimilated and local tastes are changing, encouraged by global tourism and reverse colonisation. Curry is now the number one take away meal in the United Kingdom and kebabs are a typical German staple (Evans, 2007). Halal has also been subjected to different interpretations to include other non-food segments. Most broadly, it may also be applied to cosmetics and pharmaceuticals, hygiene products and nutritional supplements, travel, art, music and books; even marriage and finance (Burgmann, 2007).

Emphasis on Halal is also growing. It is fast becoming a new market force and identifier, and is now moving into the mainstream market, affecting and changing perception on how businesses are being conducted, including from a marketing point of view. THE MARKETING OF HALAL PRODUCTS The study of consumer behaviour is vital when it comes to marketing of Halal products. The fact of the matter is, Muslim consumers are very much similar to any other consumer segments, demanding healthy and quality products, which must also conform to Shariah requirements. McDonald’s in Singapore can be seen as a prime example; it has seen an influx of eight million patrons a year after obtaining a Halal certification. Since being

certified Halal, KFC, Burger King and Taco Bell have all seen an increase of 20 percent in customers” (Hairalah, cited in Hazair, 2007a: 13). Consumers would turn their attention to a well-marketed product that does not have a Halal mark but they would read its ingredients, in contrast to purchasing one that has less credibility but sports a Halal logo. It is therefore worthwhile that we take a look at each of the four tools of marketing mix that can be used to satisfy customers and company objectives.

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A Special Report By Dr. Saad Al-Harran & Patrick Low, Universiti Brunei Darussalam

Forward PRODUCT, PACKAGING AND QUALITY Success in marketing a Halal product can be attributed to a strong brand name and more importantly, knowing what the customers want. When a Muslim consumer buys a Halal product, he is doing so because of his commitment to Islamic principles and teachings, apart from his need for the product. However, some Halal food producers have developed a patronising attitude towards the buyers, feeling that the consumer’s lives will remain hard and dry since they will not be able to enjoy the product (El-Mouelhy, 2007). Such an attitude needs to be changed. The quality must be there as well as the willingness of the suppliers to supply such quality Halal products. According to El-Mouelhy (2007), this patronising attitude is very real and a common happening. It has affected the Halal food trade between many countries. He cited that some of the oil-rich Muslim countries used to import poultry, meat and dairy products from some of the fellow Muslim countries that were rich in agriculture and cattle. The exporters had taken the importer’s willingness to buy for granted and on occasions had failed to either maintain the quality or meet various other commitments. Despite numerous complaints, the exporters did little to improve or rectify the situation. Inadvertently, the buyers’ trust is lost, and they started looking elsewhere, including to non-Muslim countries. El-Mouelhy further argues that the failure of Muslim Halal exporters to recognise that the consumer is in fact the final arbiter had led the switch to suppliers who believed in the ultimate rights of the consumer. Thus, non-Muslim suppliers who may not have heard or eaten Halal food in their entire life, have been very successful in supplying Halal goods to the Muslim market. The reason they knew the golden rule of marketing - that

the consumer is king! As a result, today in many Muslim countries, Halal poultry, meat, dairy products and other foods are predominantly imported from Europe, Australia, New Zealand, and America. And the consumers are happy because they are not only getting Halal food, but also high quality food (El-Mouelhy, 2007). In terms of packaging, it is also considered tactless for producers to name their products after haram or forbidden foods, such as chicken ham, Halal beef bacon or alcohol-free beer. This can be misleading to the Muslim community as “Halal consumers are quite sensitive to these issues” (Hairalah, cited in Hazair, 2007a: 13). The Halal labels should not only be descriptive, but also be clear and meaningful to the consumers. The technique is to clearly identify the source of the food elements, more so if the food components contain unfamiliar elements such as the E-numbers, which “could cause confusion and problems for Muslim consumers” (Junaidah Hj Abu Bakar, cited in Han, 2007a: 5). Easily recognisable Halal accreditation labels will promote the religious compliance for the Muslims; however it needs to appear with a forward-looking font to differentiate it from other trademarks. Stylised

Arabic fonts very much associated with Islam can be incorporated into the labels. PROMOTION, PUBLIC RELATIONS AND ADVERTISING Promotion and branding is the key to making products ‘click’. “By creating a Halal brand, we (businesses) have the opportunity to touch the lives of more people. Creating a trust mark for the Muslim community…it (Halal) could become its own power brand.” (Bayman, cited in Hazair, 2007c). Additionally, participating in expositions and seminars on Halal products can only lead to more sales. It brings awareness to Muslims and nonMuslims alike of the availability of their Halal products and the suppliers or wholesalers at both the national and international level. Advertising is also key for marketing and sales. From the Halal advertising perspective, strategy

Non-Muslim suppliers who may not have heard or eaten Halal food in their entire life, have been very successful in supplying Halal goods to the Muslim market. The reason - they knew the GOLDEN RULE of marketing - that the consumer is king!

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depends upon whether a particular market is Muslim majority populated or it is a mix of different ethnicities or communities. In a Muslim majority case, where the total presence of non-Muslims is only marginal, it is appropriate to emphasise the Halal nature and characteristics of the food so that it attracts the common folks in the society who forms the majority. However, in a multi-religious society where Muslims are a significant proportion of the population, the product can be marked as Halal on the label so that the members of the community are aware of its status as well as promoting the product in the Muslim and ethnic media. Here, for the non-Muslims, the product’s quality is to be emphasised. PRICING In terms of pricing, strong Halal brands have to be created and be built upon. Brands can add value to a product, allowing the manufacturer to enjoy the ability to command a higher pricing for their products. Good Halal branding, while commanding higher prices, can also attract or entice the non-Muslim consumers.

Halal is fast becoming a new market force and identifier, and is now moving into the mainstream market, affecting and changing perception on how businesses are being conducted, including from a marketing point of view.

LOGISTIC As argued in Low (2007), companies selling Halal products should capitalise on the Muslim diasporas, that is, selling in Malay Muslim and/ or Arab Muslim majority countries or Middle Eastern countries. In this way, the companies have an expanded market and a bigger playing field. However, it should be noted that from the producer’s point of view, there are two types of markets for Halal food, i.e. markets in non-Muslim countries, and markets in the Muslim countries. (El-Mouelhy, 2007) In the case of the nonMuslim countries, the problem is serious because the Muslim communities are scattered. Thus, it is difficult to distribute through dealers because in many cases there are no dealers but only the dispersed small retailers. The labour cost is also high that the price will not become competitive as compared to the same product that lacks Halal attributes. Despite these difficulties, one cannot disregard the huge potential it poses. The answer lies in making the product Halal in the first place, as well as making it available for all (El-Mouelhy, 2007). Marketers for Halal product in non-Muslim countries should also participate in established exhibitions and conferences within their Muslim communities to build confidence and network. For Muslim dominated

markets, businesses need to: i. Avoid a patronising attitude and be wary that the customer is king, honouring commitments on a regular basis, ii. Ensure and up-keep the product’s quality, and iii. Know the culture of the local distributors. When dealing with these distributors, it is important to know their expectations and their way of saying ‘Yes’ and ‘No’. One should also be ready to learn how things can be made to move within any given culture. CONCLUSION Overall, businesses and marketers need to realise that Halal marketing is very much like marketing for any other products and the 4Ps of marketing mix should be applicable. They should also recognise that the Muslim consumers would be loyal when they always get the product they want, the supplier has kept his promise, supplying quality products, and the Halal status of the product is unquestionable. There should be some form of Halal certification and a respectable authority guaranteeing hj the producer’s claims.

REFERENCES Asia Inc (2007) ‘The Brunei growth story: Brunei Premium Halal Brand’, July- August, p.82 | Burgmann, T. (2007) ‘Halal flexes its marketing muscle’, The Star, 22 July 2007. | El-Mouelhy, M. (2007) ‘Marketing Halal’ | Drury, A (2007) “Halal’s Place in New Zealand”, The Nelson Mail, 15 September 2007, p.14. | Evans, Hj A. ‘Halal: A New Market Identifier’, Excerpts from ‘Understanding the Muslim Consumer’, The Halal Journal in The Brunei Times, 17 August 2007, p.6 | Han, S. (2007) Halal Brand Eyes First Product by Next Expo’, The Brunei Times, 20 August 2007, p.1. | Han, S. (2007a) ‘Labelling for Halal Products’, The Brunei Times, 20 August 2007, p.5. | Hazair, Hadthiah P.D. (2007) ‘Avoid ‘Haram’ Names for ‘Halal’ Food’, The Brunei Times, 19 August 2007, p.8. | Hazair, Hadthiah P.D. (2007a) ‘More Trade Than Getting Halal Seal’, The Brunei Times, 21 August 2007, p.13. | Hazair, Hadthiah P.D. (2007b) ‘Nestle Interested in Obtaining Brunei Halal Seal’, The Brunei Times, 20 August 2007, p.13. | Hazair, Hadthiah P.D. (2007c) ‘Branding Key to Making Halal Goods Click’, The Brunei Times, 26 August 2007, p.8. | Low Kim Cheng, P. (2007) ‘A Kazakhstan Perspective on Diversity’, The Icfaian Journal of Organizational Behavior, January 2007, p.18 - 32.

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Muslims the world over expressed shock and exasperation when photos of a packed pork product with the Halal logo on its packaging were circulated on the Internet in October 2007.

Singapore Halal pork issue - more than just a sick joke BY RUZANNA MUHAMMAD

CITIZENS OF SINGAPORE were even more jolted by the news as the Halal logo on the packaging was of their very own Islamic Religious Council of Singapore (MUIS). The photos captioned that the product, Pasar Fresh Pork (Air-flown), was packed for a leading local supermarket retailer, NTUC FairPrice, and was allegedly sold by the supermarket chain. Upon receipt from a concerned member of the public, MUIS immediately investigated eight NTUC FairPrice outlets, and revealed that the said product did not bear the MUIS Halal certification mark. A MUIS representative quickly issued a statement that they did not in fact certify the said product and that their investigations would prove this accordingly. The statement added, “We treat the case of the MUIS Halal certification mark on the packaging containing pork very seriously as the Halal mark has been abused.” By law, under subsection 5(b) of section 88A of the Administration of Muslim Law Act (AMLA), an abuser of the MUIS Halal certification mark, when found guilty, is liable to a fine not exceeding SG$10,000, or to a jail term not exceeding 12 months, or both. This would imply that even if the mark was a fake, or was digitally added, the perpetrator is still culpable to the offence. AMLA is an act that makes

Pictures taken from the internet

Upon receipt from a concerned member of the public, MUIS immediately investigated eight NTUC FairPrice outlets, and revealed that the said product did not bear the MUIS Halal certification mark. provision for regulating the country’s Muslim religious affairs, and constitutes a council to advice on matters relating to the Muslim religion in Singapore and its Shariah Court. The MUIS statement also mentioned that they are working with the local police on the matter, and it was reported by Channel News Asia that NTUC FairPrice

had indeed lodged a police report over what it claimed to be an act of mischief to tamper with the packaging of the pork product. An NTUC FairPrice spokesperson said, “We regard this case as a deliberate and wilful act of mischief, and we will not hesitate to take all necessary measures to ensure that such an act is halted immediately with

no repetition thereafter.” However, there have been no further comments from either party since, due to ongoing investigations. Regardless of the circumstance and its lawful outcome and possible prosecution, the issue did in fact receive massive global coverage, more so through the help of the borderless Internet. The issue was

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HDC HALAL TRAINING PROGRAM In an effort to support Malaysia’s vision in becoming a global Halal hub, the Halal Industry Development Corporation (HDC) is organising its own Halal Training Programmes to increase the understanding of Halal as a concept and develop the human capital within the Halal industry. HDC’s Halal Training Programmes are catered for all target audience related to Halal matters, both for Muslims and non-Muslims. Developed by two local universities that are internationally-recognised for their advance researches in Halal matters, our comprehensive training modules cover not only the Shari’ah aspects but also Halal certification processes, Halal market, Halal food and consumerism and also biotechnology. All training programmes are conducted by our panel of Halal experts with more than 10 years of experience in various fields, including Shari’ah, food technology, cosmetics, Halal certification and Halal audits. Course fee is competitive (RM 950 per person for a 2-day course or RM 880 per person if more than two participants are registered for the same course) and is developed by a recognised and reputable organisation that is 100% funded by the Malaysian government.

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discussed in blogs, and web forums, not to mention being widely distributed via emails. Upon receiving the email containing photos of the Halal logo on a pork product, Egypt-born Khalid Baheyeldin, co-founder and managing partner of 2bits. com – which specialises in Drupal web content management consulting – and permanent member of the Drupal Association wrote on his blog, “It seems that some bloggers thought it was true, while others thought it was a sick joke.” This issue was also brought up on Bahrain Online, an Arabic-language forum from Bahrain, with an announcement tagging the photo that said, “Available in the markets, Halal pork, and slaughtered according to the Islamic Shariah (law).” Readers were torn between those who believed the product was really available in the local markets, and those who quickly came up with a logical explanation. The Halal logo on a pork product sparked reactions from both the Muslims and non-Muslims, where issues relating to Halal were commented, all for the wrong reasons. From its definition and concept, to the act of slaughter and certification, even to the required conditions that leads to approval for a Halal certification, from one Islamic organisation to the other. Even more damaging were questions on Halal integrity, and whether or not to trust, or rely on the Halal mark by otherwise reliable and trusted Islamic certification bodies. Not only does it affect MUIS directly, but it also impinges indirectly on other Islamic bodies that recognises and approves of MUIS and its Halal certification mark and procedures. Truth is, there have

Digital Hoax : Halal on Toy never can and will support or endorse,” said Simonsen, the Lego spokesperson. “Such is the case with the Prophet Mohammed image being circulated around the Internet,” she added. “We would like to express our sympathy to anyone who is hurt by this. It is not at all in our interest that people are insulted by illustrations made with our Lego bricks,” Simonsen went on to explain that Lego has only “very limited legal possibilities” to stop such misuse of its products and images and does not have any idea of who might be behind the offensive image. “We are, however, working with the Danish police in this specific matter,” she added. “We would like to stress that the Lego Group respects human rights and works actively against discrimination based on ethnical background, race, religion, gender, age, disabilities, or sexual orientation,” she concluded.

Digitally altered images are nothing new in this day and age, where celebrities and key political figures have long been subjected to the mercy of “troubled” creative artists. Among these people include ignorant anti-Islamic groups hellbent on projecting a negative or just plain derogatory images of Islamic symbols or its key figures, including the Prophet Mohammed SAW. Such is the hoaxed Lego toy product showing obscenities and putting Halal word on the box. Lego had immediately posted a statement on its website www. lego.com announcing that the picture is indeed a hoax and it did not originate from them. A spokesperson at Lego’s Enfield office said the company had noticed a rising phenomenon of “artists” making “very creative models”, usually to promote positive ideals. “Others however, use our bricks for models that we

been numerous cases such as this circulating over the Internet of late. Some have been proven to be true, with manufacturers using the Halal logo as a marketing tool to tap into the highly lucrative Halal market, believed to be worth billions of dollars. Moreover, as a concerned Muslim, it is always our first instinct to distribute the emails to close family members and friends. Nevertheless, this is exactly how small bush fire becomes uncontrollable. What should have been done when receiving or hearing and forwarding such rumours is that one should be responsible and verify its accuracy by contacting the affected parties, and research for some form of clarification. If one cannot or decides not to for any reason whatsoever, stop forwarding it and let the matter unfold itself. Taking

a neutral stance is always the better option, rather than jumping to conclusions and start blowing things way out of proportion. With numerous occurrences of reported Halal logo abuse, perhaps Islamic organisations around the globe should also be proactive, and put their minds together and try to develop an international Halal act of some sort, whereby misuse of the Halal logo will be treated as a serious criminal offence. Meer Sahib, Director of Canadian Alliance Party and former Vice Chairman and Member of the Board of Directors of London Muslim Mosque, Canada, have made a similar recommendation for an international Halal trade mark for Halal products. “If there is an International Halal Trade Mark, it will become a criminal offence to misuse the label. Along with it, there

have to be also internationally recognised standards and specifications, with quality assurance, QA monitoring and enforcement procedures. The Halal food industry must also be government regulated, a Halal Food Act must be passed by the government, and so on,” writes Meer Sahib. “You can understand why there is so much corruption in the Halal industry if you realised that it is a multi-billion dollar industry. It is both a curse (because of the unethical practices) and perhaps could become a blessing if Muslims acted prudently,” he went on. Perhaps the best bet is for Islamic organisations to find the best preventive measures to avoid reoccurrences of the misuse of the Halal logo, because the global implications on the integrity of Halal is just too damaging and widespread to be ignored.

48 THE HALAL JOURNAL

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Increased bilateral relations between Malaysia - Bosnia-Herzegovina expected BILATERAL TRADE RELATIONS between Malaysia and BosniaHerzegovina is expected to increase within the coming years as officials from the two countries agree to work closer to this effect during a seminar on business and investment opportunities in Bosnia-Herzegovina recently. Acting as a follow up to a visit by the Malaysian Prime Minister to Sarajevo in June this year, when he officiated a mosque sponsored by the Malaysian government, the seminar in Kuala Lumpur had gathered key members of the business communities from both countries. Heading the Bosnian-Herzegovinian delegation is their foreign minister Mr. Sven Alkalaj, who regarded the seminar as a logical extension of the already very close and friendly relations between the two countries. “Our message today is that BosniaHerzegovina is open to all kinds of economic cooperation with Malaysia,” he said. “We think that the current amount of economic trade between us is very modest, and that there are many possibilities for its increase.” Despite its long standing relation, Malaysia is currently only 61st on Bosnia-Herzegovina’s list of partner countries, and 72nd in imports to the South East European country.

Ng Lip Yong, Deputy Minister of International Trade and Industry, Malaysia concurs this, but notes that there have been a significant increase in trade volume, most notably within the first eight months of 2007. “From January to August this year, Malaysia’s trade to Bosnia-Herzegovina had surpassed the total trade recorded for the whole of 2006. This was driven by a significant jump in export of machinery, appliances and parts, which represented 59.4 per cent of total export,” he said. Electrical and electronics as well as textile and clothing also made up 28.5 per cent and 2.7 per cent respectively of Malaysia’s exports to BosniaHerzegovina during this period. Malaysia’s import to Bosnia-Herzegovina meanwhile stood at just US$1.9 million in 2006, which consisted mainly

of furniture, seats and parts of furniture, alloyed aluminium plates, sheets and strips as well as non-alloyed aluminium. “Bosnian-Herzegovinian business communities are encouraged to look towards the East and source for products from Malaysia since it is a significant global sourcing hub, ranking among the top 20’s trading nation in the world,” said Mr Ng. He also noted that several Malaysian companies have invested in Bosnia-Herzegovina within the construction of residential and commercial buildings under the Township Development Project and City Centre Project. His Bosnian counterpart agrees. “Bosnia-Herzegovina presents an interesting destination for Malaysian investment and that we have a lot to offer to our Malaysian business partners,”

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said Sven Alkalaj. He highlighted specific sectors that would be of interest to the Malaysian business community, including the energy sector, the food industry sector, infrastructure projects and information technology. “I would also like to stress the significant opportunities in military industry sector and the fact that Bosnian-Herzegovinian products from this domain are present and recognised worldwide,” he added. The country is also in the process of major infrastructural construction, and the Freeway Corridor 5C project, connecting central Europe with the Adriatic Sea through the shortest possible route, should also be appealing to Malaysian companies. Alkalaj’s delegation also included the BosnianHerzegovinian Halal certification agency, which was represented by its director Amir Sakic. “We think that Malaysian investments in this sector would be of interest to both countries and it would open real opportunities for placement of one’s products in numerous markets in third world countries,” he said. Tourism is another possible sector for intensified cooperation. “We think our country can be one of the favoured European destinations for Malaysian tourists. To that effect, we think that the introduction of a regular flight connection from Sarajevo-Kuala Lumpur-Australia should be considered,” said Alkalaj. “It is our wish that Bosnia-Herzegovina becomes a European hub for Malaysian companies and products, and to that effect, we are completely open to all Malaysian investments,” he added.

UNTAPPED OPPORTUNITIES: TAKAFUL INDUSTRY IN BOSNIA One immediate area that is ripe for Malaysian expertise in Bosnia-Herzegovina is the Islamic banking and finance industry in general, and the takaful industry in particular. Speaking on the sidelines of the seminar on business and investment opportunities in Bosnia-Herzegovina recently, Amer Bukvic, Chief Executive Officer of Bosna Bank International d.d. said that one of his reasons for the visit to Malaysia is to explore the possibilities of re-establishment of the takaful industry in Bosnia, for the lack of any kind of Islamic insurance in existence there. “Aside from takaful, there is also a huge opportunity for investment banking in Bosnia because it is basically an unexplored market where I think we really have something to offer in the long run,” said Amer. The other potential area for cooperation is gaining experience and technical assistance from the Malaysian Islamic banking industry. “What you went through in the early 70s we are going through within the last few years in Bosnia,” he said. “We went through the infancy stage within the Islamic bank, because we did not have an Islamic banking law. I believe the Malaysian government could provide the technical assistance to Bosnia by preparing them in terms of regulatory framework for Islamic banking industry in Bosnia.” Although they do not have a specific Islamic banking law, they do have an exceptional approval for Islamic banking functions, in a way that would be acceptable to the normal banking law. For example, Islamic banking is mainly based on murabahah, he explained, which is trade, but not any bank can trade in Bosnia. “So what we do is we structure other products based on musyarakah or ijarah combination, which is

partnership and leasing, in order to come to a structure that is acceptable to Shariah council and our official banking law,” he said. He admitted that they took a very difficult path by structuring something in an environment that does not have the regulation for it. But all the hard work has finally paid off and now they have a full fledge Islamic banking products for either retail, corporate finance, treasury or investment. Established in 2001, Bosna Bank International’s

own; it is also the gateway for eastern and central Europe, home to a substantial Muslim population. “Just in the southeast European area alone, there are about 10 to 15 million Muslims, a population that is more than Muslims in Malaysia. Plus you have a growing interest amongst 5 to 10 million German Muslims, originally from Turkey mostly and also from the Balkans,” he added. He also urges potential investors to consider the fact that Bosnia is well on the path

“Aside from takaful, there is also a huge opportunity for investment banking in Bosnia because it is basically an unexplored market where I think we really have something to offer in the long run” major shareholders are the Islamic Development Bank or IDB, which owns 47%, Dubai Islamic Bank owns 27% while the remaining 26% is owned by Abu Dhabi Islamic Bank. He urges the Malaysian banking industry to take a larger role in developing the Bosnian Islamic banking industry as the local banking industry is currently owned by large central European banks who have begun to realise the huge potential in Islamic banking. “Because they don’t have the experience and background, they might have to go through the same painful process as we did. But Malaysia can just come and slide in and take a big share of the market because you have the technical expertise and credibility to do it,” Amer explained. He also pointed out that Bosnia is not only to be considered as a market on its

of joining the European Union (EU within a few years since all surrounding countries are already members of the EU. “We are like an island inside. They cannot keep us outside for long. Once we become a member of the EU, the opportunities are enormous. Bosnia can be a gateway to the European Union,” he added. From his previous experience as a student in Malaysia, Amer notes a very distinctive trait for Malaysians. He said, “Malaysians are good in one thing – Malaysians are good in strategic planning and thinking, and this is what you should do from this perspective. “From a Halal industry point of view, the European Union has a very huge Muslim community. You can base yourself in London or you can base yourself in Bosnia. I think the best way is to be in an environment which is accommodative to Islam.”

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fast track | AUSTRALIASIA

The New Technology in Pallets for Logistics

Pack-Tech™ Pallets BY RUZANNA MUHAMMAD

BEFORE the 20th century, wooden boxes, crates, barrels and kegs were much more commonly used to unitise, protect, store and transport goods. With the advent of container handling equipments as the most important innovation in 20th century logistics, pallets were slowly introduced, evolving with the development of lift trucks. Pallets have long been used in logistics, having been around for almost 50 years now. Throughout this time, pallets design and technology have evolved tremendously. At the time pallets were first introduced, pallets are most commonly made of wood – manufactured in small-scale from used lumber. Innovation took to the production of pallets to the next level, from paper, to plastic pallets thereon. At present, in the 21st century, at a time when technology and innovation are widely researched and applied, an Australian company, Pack-Tech™ International Pty. Ltd., has yet again improvised the production of pallets. Commissioned in 2001, Pack-Tech’s first operational manufacturing facility was located in Gosford, North of Sydney, Australia. Pack-Tech™ is a supplier of technology for the packaging and materialshandling industry – owning machines and manufacturing methods to produce unique and lightweight pallets. These pallets, well known as Pack-Tech™ pallets – are made from two components: expanded polystyrene (EPS), and high-impact polystyrene (HIPS), making up the inner core, and outer skin of the pallets, respectively. These pallets are described as a fourway entry, one-way shipping pallet suitable for use in ISO

series 1 freight containers. They consist of a 45mm-thick top deck with nine supporting pads – one central pad, four edge pads, and four corner pads. Tested and certified by the Commonwealth Scientific Industrial Research Organisation (CSIRO) of Australia and the US Food and Drugs Administration (US FDA), these pallets have passed compliance, and satisfy the requirements of Australian Standards, AS4068-1993, for resistance and stacking at 3,500 kilogramme of maximum stacking load for ambient and 40 degrees Celsius conditions. Amongst its many benefits (refer to box 1) and functionalities are as a total lightweight and economical solution for air freight, shipping, rail and storage, can be used as a one-way solution for export, hygienic solution for pharmaceuticals and food products, and a cool solution for food and perishable products. These functionalities are due to its design attributes such as durable – with outstanding ability to absorb impact shock, reducing product damage – and 100 per cent recyclable; vacuum heat-sealed to ensure total protection without any fumigation, and is a natural insulator due to the EPS construction. Export manufacturers should consider using these pallets because they are strong enough to pass through the export supply chain, and are lightweight; ensuring easy loading and unloading, thus providing a significant reduction in transport costs, and ensures the safe arrival of products, at the recipients end. Environmentally friendly, use of Pack-Tech™ pallets minimises the wastage of resources, e.g. lessens the excessive cutting of trees, does

Benefits of Pack-Tech™ pallets: • Lightweight – ranging from 2-5 kg • Hygienic – contamination-resistant surfaces, and washable • Safe – easy to lift (four-way entry, and lightweight), no splinters, nails, and leeching toxic moisture • Practical • Sensible alternative to the contemporary pallets, i.e. wooden, plastic, paper or metal pallets • Recyclable • Environmentally friendly • Acceptable through customs worldwide • Easy to stack and store • Pallet-jack compatible • Ideal for frozen and refrigerated transport • Complies with Australian standards for the handling of food products • Sizes available to suit all transport types – air, rail, road, and sea • Stretch-wrap friendly

not require fumigation of products, and on top of that, they are 100 per cent recyclable – providing recyclable pallets solutions. Pack-Tech™ International makes licensing of the PackTech™ Technology available. One such company based in Malaysia, Global Green Pack Sdn Bhd, is currently a manufacturer and supplier of Pack-Tech™ pallets, going by the name GGPACK Pallets. GGPACK pallets have been widely distributed to the United States, New Zealand, Japan, Chile, Belgium, Indonesia, the Philippines, the United Kingdom, Finland, Norway, Kenya, the Netherlands, and Sweden. Pack-Tech™ offers an ideal solution to packaging companies and manufacturers or suppliers of goods for large-scale export. This technology transfer allows end users to enter into a partnership with Pack-Tech™ International, whereby they will build and maintain a fully automated Pack-Tech™ pallet facility. For further information, log on to www. packtech.net or www.ggpack.com.

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KasehDia Consulting will be publishing comprehensive reports on the Malaysian F&B Country Report, Middle East F&B Country Report and Halal Restaurant Industry Survey in Malaysia. It will be highly beneficial to all existing and would-be players of the Halal industry in Malaysia. Don’t miss this excellent opportunity and secure your copy today! Email info@kasehdia.com for more details.

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

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Macfood

expects Middle East sales to increase

The supplier of McDonald’s, Macfood Services (M) Sdn Bhd, expect their sales volume to the Middle East to expand by almost 30% within the next three years judging from the expanding of current demand in that region. MACFOOD’S managing director Bob Chan said the recovery of Malaysia’s poultry export markets from an avian influenza outbreak mid 2007 would largely contribute to this growth. The country was declared bird-flu free by the World Organisation for Animal Health (OIE) in September 2007. The region’s high confidence in Malaysia’s Halal certification, its proximity to the Middle East as well the ability to develop new and exciting products are also some of the other main factors. “The Middle East is without a doubt one of the fastest growing markets for McDonald’s,” said Chan. “We exported close to seven million pounds of products to the Middle East in 2007, up from four million pounds just two years ago which is quite significant for us.” “When importing countries have become more comfortable with what we are doing in ensuring quality and safety of our products, they will order more and we expect this trend to continue over the next few years,” he added. “Middle East currently represents 15% of our business and we are expecting it to at least double in the coming years. We also plan to increase our annual total capacity to 35 million pounds next year from 29 million,” he said after the conclusion of a visit by representatives from Middle East government officials and NGOs. Another important factor that contributes to this increase is the level of confidence the consumers have on the Malaysian Halal standard. According to McDonald’s Middle East and Africa

“We are very happy with what the government is doing, and with the local religious authorities in ensuring whatever that gets exported are 100% Halal. Also, proximity to the Middle East are some of the factors that are in favour when dealing with Malaysia.“ group managing director Yousif Abdulghani, Malaysia has succeeded in becoming a hub for Halal products as about 30 per cent of the company’s Halal products exported to the Middle East are from Malaysia. “Malaysia has an edge when it comes to Halal food production, which is our number one requirement,” Youssif said. “We are very happy with what the government is doing, and with the local religious authorities in ensuring whatever that gets exported are 100% Halal. Also, proximity to the Middle East are some of the factors that are in favour when dealing with Malaysia.” He also concurs that Middle East and Africa were its fastest growing markets, with 70 new fast food restaurants opening in 2006, which represented 20% of total growth for McDonald’s worldwide. They expect to hit the same growth

rate for the coming years. The ability to develop new products is also another contributing factor. “Like any other companies, McDonald’s are always looking for new menus that can excite their consumers and as a result, we have become more creative in coming up with new products. That too increases our volume,” Chan added. Asked if the increase in price for protein products, edible oil and fuel would result in increase of McDonald’s prices, Chan said: “There is no question that cost of manufacturing will increase when these prices go up. It is therefore essential for us to increase production volume which will defray incremental cost without burdening our consumers.” Macfood is a venture between US-based Keystone Food Corporation (85%) and local parties (15%), and supplies about 99% of its protein products, which include Halal-certified beef and chicken nuggets to McDonald’s chain of fast food restaurants. “We have developed a very good business relationship over the years with Macfood,” said Yousif. “It’s a true partnership within a completely transparent environment. I’m very much pleased with the progress and we hope to continue working with Macfood and Malaysia as a whole.”

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fast track | ASIA

Additional cranes to boost capacity for Northport REALISING THE growing demand for port facilities and services, Northport - a multipurpose Malaysian gateway port - recently takes the delivery of an additional three super post-Panamax ship-to-shore cranes beginning last November 2007, to beef up its shore-side capacity. The new cranes arrived with considerably enhanced and advanced features, which will not only ensure faster handling of containers, but also facilitate the extended outreach of broader beams of the mega-sized container ships calling at the port. “The new cranes, which will boost the total ship-side gantry cranes at the port to 27, comes with an outreach of 18 containers across the beam, and will have 25 per cent higher lifting capacity than the present cranes at the wharves-side,” said Azman Wahiduddin, the

Assistant General Manager of equipment maintenance of Northport Malaysia. He added, “The deployment of the cranes will definitely boost our handling capacity as these cranes have twin lift capabilities, which will further optimise our handling capacity from the present 4.0 million TEUs.” With these deliveries, Northport will have eight super post-Panamax cranes to meet the demands of the handling requirements of mega-sized container ships, especially from global Muslim markets. Realising the lucrative prospects of a global Halal marketplace, and in the light of Malaysia’s vision to become a global Halal Hub, Northport is positioning itself as a premier, multipurpose national gateway into Malaysia for Halal products overseas. With excellent state-of-

Global airline caterer spreads awareness on Halal

LSG SKY CHEFS-BRAHIM’S SDN BHD, part of the world’s largest airline catering company based in Germany, recently organised the LSG Sky Chefs Global Halal Showcase at their Halal Excellence Centre headquarters in Kuala Lumpur recently. Held last 6th November 2007, the one-day event was attended by 12 delegates from six countries within the Asia-Pacific and European region, including from Thailand, China, Italy, Germany, the UK as well as Malaysia.

the-art infrastructure and extensive shipping connectivity linking to global Muslim markets, Northport is said to be the only Malaysian port with the most extensive global shipping connectivity. Offering critical links in the transportation and logistics

chain for Halal-compliant product manufacturers and producers, Northport is the homeport and port of call for about 80 shipping lines, running regular services to more than 200 ports in Asia, Europe, the Mediterranean, Africa, and the Middle East.

Apart from serving as an platform to create a global networking and marketing forum, the showcase was also an effective way to transfer knowledge and experience in Halal food processing as well as streamline the Halal standards within the LSG Sky Chefs global Halal network. “In addition, the event was also our way of monitoring and tracking Halal practices within the LSG Sky Chefs Customer Service Centre (CSC), as well as exchanging information to understand and solve the many challenges faced by the CSCs when implementing Halal,” said Abdul Aziz Mohamad, Chairman of the Halal Excellence Centre. Several Malaysian Halal authorities and speakers were invited to share their expertise, including from Halal Industry Development Corporation (HDC), the Department of Veterinary Services (DVS), JAKIM as well as Malaysia

Airlines as one of LSG’s most important airline partners. Aside from the overseas representatives, participants also comprised of the LSG’s management team and key Halal players from different divisions within the company, including from Sales, Quality Assurance, Procurement and Production/Operations. Delegates raised pertinent issues with regards to the sourcing of meat, ingredients and additives of processed food, as well as about certification compliant with the Halal standards and requirements. The showcase received positive feedbacks with many overseas delegates hoping that the Kuala Lumpur Halal Excellence Centre “would continue to support them in maintaining the Halal processes and procedures necessary and to earn the airlines’ and Muslim travelers’ trust in our service,” said Abdul Aziz.

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fast track | AMERICAS

Assisting American Restaurants Expand to Middle East BY KAMARUL AZNAM KAMARUZAMAN

MIDAMAR CORPORATION, the world’s largest USA supplier of high quality Halal meats, has announced the addition of its newest business service: consulting. Armed with specialised knowledge of the Middle Eastern region and expertise in the Halal food industry, Midamar Corporation is looking to assist franchisers and restaurant concepts located within the United States (US); interested in entering into markets in the Middle East. The company is also able to utilise its expertise for organisations interested in doing business in the Middle East, South East Asia, the Far East, North Africa and those planning to enter the US Halal market. Midamar will provide detailed market research and information to assist businesses interested in selling products in Muslim markets. The company’s vast international network of professionals and associates will provide restaurant businesses key contacts and information necessary for business development. “Part of our growth is represented by the fact that we are a 100 per cent privatelyheld and owned business,” said Jalel Aossey, Director of Business Development, Midamar Corporation. “This is important to clients as well as customers, as we are committed not only by faith, but by control on operational directives.” More than 30 years of international business experience in the Middle East and South East Asia has established

Midamar’s presence in the Halal food industry. “Through the experience of our staff in dealing with export and import regulations with countries throughout the Middle East and South East Asia, we are able to provide years of knowledge in working with companies interested in expanding operations abroad and needing assistance,” Jalel added. A pioneer and leader in Halal food services since 1974, Midamar provides Halal food, restaurant equipment and consultation, export consolidation and translation services to restaurants, hotels, and distributors throughout the Middle East, South East Asia, the Far East, and North America. Meanwhile, to cater for the growing demand of Halal meat in North America and the world, Jalel has also announced the completed purchase of Carfrae Meats, founded 48 years ago in 1960 as the first and longest operating USDA-approved facility in the United States. The purchase was done under North American Halal Food Industries, co-owned by Jalel and his brother Yahya Aossey. Doing business as Halal Food Processors, together with Carefrae Meats, they have been involved in the processing of Halal meat products under the Midamar Halal brand for the past 25 years. “With God’s blessing, the timing and strategic opportunity is perfect for this Halal production expansion as the demand for Halal food products grow. We are very excited, even the financing of this project follows the Islamic Shariah

MIDAMAR CORPORATION SPECIALISES IN PROVIDING SERVICES TO THE FOLLOWING TYPES OF ORGANISATIONS:

International food concepts interested in expanding franchises into the Middle East or South East Asia Restaurant concepts seeking US-manufactured restaurant equipment and spare parts Distributors introducing high quality Midamar Halal-branded meats to hotels, catering companies, government institutions and retail supermarket chains US food companies and restaurant franchises interested in Midamar consulting in order to penetrate new markets in the Middle East and South East Asia Overseas companies interested in launching new food product lines into the US ethnic and mainstream retail, and foodservice markets Companies seeking Arabic labelling and translation services for products to the Middle East (law),” says Jalel as President of Halal Food Processors. Jalel pointed that the North American Halal food sector is growing at a rate of 20-30 per cent for every year, while the international Halal food sector is projected to be worth at over US$150 billion annually while the global Muslim population stood at approximately 1.8 billion. Jalel says he has seen a progressive change for Halal foods from selling only in ethnic markets several years ago, to recent interest from mainstream supermarkets, foodservices, and increased international demand for credibly produced USA Halal foods.

Well known for their commitment to the global community, the Aossey family through Midamar, over the past years, has contributed thousands of pounds of quality Halal meat and poultry to food banks, non-profit organisations, as well as several independent charitable organisations, both Muslimand non-Muslim-based. For their commitment to quality products and superior service, Midamar was awarded The Halal Journal Award for Best Halal Product in 2006. For more information, contact Midamar at 319-362-3711, or visit www.midamar.com.

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fast track | AMERICAS

Former Al Safa owner and president David Muller (3rd from right) and new owner Adnan Durrani on his right, with the rest of the Al Safa management team.

The Jew Who Believed in Halal BY KAMARUL AZNAM KAMARUZAMAN

MENTION THE NAME Al Safa, Halal and North American consumers would readily recognise that the brand speaks of quality and convenient, consumer-ready products that observes strict Shariah requirement, including being hand slaughtered. In a world where high tech machines routinely slaughter chickens at high speed, Al Safa owner and founder David Muller, an Orthodox Jew, believes that his chicken nuggets and beef burgers must always be prepared based upon the guiding principles of Halal and Zabiha. But being owned by a Jew also subjected the Cambridge, Ontario-based company to all sorts of controversies, most of which were religion-related. Late last year however, Muller surprised market observers with his decision to sell his stake in the company he founded in 1999 to Adnan Durrani, a Muslim. The Halal Journal forwarded a few questions to Mr. Muller via email and he managed to take some time off to jot down his thoughts.

IS IT TRUE THAT YOU ARE SELLING AL SAFA HALAL BY EARLY NEXT YEAR? Yes, it is true that I have sold Al Safa Halal to Mr. Adnan

Durrani, projected closing date of early 2008. I will be leaving the company at that time. Mr. Adnan Durrani has decades of experience in taking small to mid-size food companies and growing them into wildly successful national and international brands, and I am truly confident that he is singularly qualified to take Al Safa Halal to the next level. The combination of his charisma and his genuine desire to do good for his community and the worldat-large is unparalleled. I feel blessed that I have been able to build this company and to meet and befriend so many special people in doing so. Thank you to everyone who helped us along the journey and especially to the Imams who educated me along the way. I will always be grateful for that.

WHAT WOULD BE YOUR SWEETEST ACHIEVEMENT AND BIGGEST REGRET WHILE HELMING AL SAFA? With regard to Al Safa Halal, I am truly proud of what we were able to accomplish in the past eight years. When we started Al Safa Halal in 1999, the word Halal was not at all known in the North American supermarket community. Today, only eight

was actually slaughtered by machine, all hell would break loose in our household. And we are thankful that we are protected against this by the Kosher certification agencies in North America. But with Halal, that is not the case. In North America, anyone can mark anything Halal and get away with it. This profoundly disturbs me, and I hope that in the future the Muslim community is able to band together to put a stop to this fraud.

SO WHAT ARE YOUR PLANS AFTER THIS?

years later, supermarket executives not only know what Halal is, they now call Halal “the next big thing”. If I had one regret or disappointment with my tenure at Al Safa Halal, it has been our inability to stop the widespread cheating that is institutionalised in the use of the word “Halal” in North America. You know, we keep strictly kosher in our home, and doing so is a vital part of our relationship with our Creator, and we take it very seriously. If my wife ever found out that the kosherlabelled chicken in our fridge

My plan after this is to devote myself full time to forging closer Jewish-Muslim relations in North America specifically. I tried to do some of this over the past few years but was unable to do so because I was too busy running the business. Now that I will be leaving the business, I will do it full-time, with God’s help. I recently told my wife that I think God put me on earth for more than just to sell chicken nuggets. Given that there is probably no Jew who has been in more mosques than I have, no Jew who has been in more Imam’s homes than I have, I feel that I have been given a unique insight into how similar Jews and Muslims really are. THE HALAL JOURNAL

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country in focus

FRANCE

MARCHES ON

Words By TONG YEE SIONG

Saddled with legacy issues, France looks forward to moving on.

fter nearly a decade of economic gloom, Europe is finally seeing sunnier days. Germany, the continent’s biggest economy that once was referred to as “the sick man of Europe”, is doing spectacularly well: the country is again the world’s biggest exporter, profits are at a record and competitiveness has improved sharply. The same cannot be said about France, which is still muddling through various legacy issues. To be sure, the French economy is not all bad. It is the world’s sixth largest and has the lowest poverty and income inequality rates among major developed economies. France has a large and diverse industrial base. Leading sectors in France include telecommunications, aerospace defence, shipbuilding, pharmaceuticals, electronics, civil engineering, automobile production and of course, luxury goods. This puts France in a strong position to sell goods abroad, trailing only Germany among western Europe’s largest trading nations. France is also the world’s most visited country, drawing over 75 million visitors a year. The French Alps offers some of the world’s most extensive ski trails and best skiing resorts, while Paris, a synonym for romance to many, remains the world’s most visited city. DIRIGISME AND NATIONALISM France’s economic growth however, has been weak, growing at 2 per cent in 2006. A rising trade deficit has characterised a malaise in the French economy since the global economic downturn in 2000. Much of this has to do with the economic weaknesses

that France inherited from the past. Emerging from the World War II with a bruised national pride, France embarked on an ambitious and very successful programme of dirigisme, which involved the state control of industries such as transportation, energy and telecommunication infrastructures as well as state incentives for private corporations to merge or engage in certain projects. Despite significant liberalisation over the past 15 years, the government continues to own shares in corporations in a range of sectors. This leads to inefficiency issues and high government spending. France’s gross public sector debt of €1.1 trillion (US$1.7 trillion) – 63 per cent of gross domestic product (GDP) – is among the highest in the Group of Seven. Two ongoing, long-running industrial sagas, in energy and aerospace, still provoke plenty of political interference and best illustrate the kind of economic nationalism that is alive in France. The proposed merger of Suez, a privatised water and power utility, with state-owned Gaz de France, has been bogged down since February 2006, when it was suddenly cooked up to fend off a hostile bid for Suez by Enel, an Italian energy giant.

Now, the French government seems keen for another state power firm, EDF – rather than any foreigners – to buy the bits of Suez that it will have to sell to address competition concerns raised by the European Commission. Meanwhile, at European Aeronautic Defence and Space (EADS), the power struggle has worsened in the past two years as its biggest operation, Airbus, has been hit by delays to its new aircraft models and a weakening dollar. In mid-July, France and Germany agreed to appoint Rüdiger Grube of Germany as Chairman of EADS, and Louis Gallois of France its Chief Executive. That ends for now a cumbersome arrangement, in place since EADS’ founding in 2000, in which there were two co-chairmen and two co-chief executives, one from each country. But it is far from a long-term solution that offers a simple line of command that does not upset French or German sensibilities. ECONOMIC ISSUES Chronically high unemployment has persisted since the 1970s. Numerous attempts have been made since to curb the jobless rate but it has

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stubbornly stayed at just below 10 per cent. Observers attribute the problem to rigid labour laws that make hiring and firing difficult, which in turn, hampers job creation. Unemployment has led to other social issues. In late 2005, when two teenagers of migrant origins were electrocuted after climbing into an electrical substation in Paris suburb to avoid a police chase, riots were triggered in the area, a working class commune that is home to large African Muslim and Arab communities. The unrest soon spread to over 300 French towns. As arson, car burnings and other attacks became common, a curfew was imposed. Economists later said the outbursts were supercharged by an economic system that not only tolerates but actually fosters sky-high youth unemployment. In September 2005, an incredible 21.7 per cent of 15- to 24-year-olds in France were unemployed, compared with only 11 per cent in the US and 12.6 per cent in Britain. In retrospect, many agree pervasive discrimination and genuine grievances pushed the youths into urban violence. At the same time, France has lost its lustre as an investment

destination in Europe. According to figures published by Ernst & Young in June, the United Kingdom gained market share of inward investment into Europe for the first time in the ten-year history of the annual survey. This was because France’s market share dropped, after the number of foreign domestic investment projects it attracted rose by 5 per cent compared with 2005. Those into the UK increased by 23 per cent. Nicolas Sarkozy, the new French president who rode into power on his conservative charm, is now promising to boost economic growth by pursuing reforms in the labour market, welfare and taxation.

Europe to be completely self-sufficient in basic food production. Worldwide, France is the second-largest agricultural producer, after the United States. The high quality of the nation’s agricultural products contributes to the excellence of its famous cuisine. France is one of the leaders in Europe France is the second- in the value of agricultural exports – chiefly wheat, largest agricultural sugar, wine, and beef. producer, after the United States. France’s Tropical commodities, cotton, tobacco, and vegetable foreign trade balance in agri-foodstuffs, was oils are among the chief agricultural imports. positive for the first The French time in 1969, and since agricultural sector is heavily then the surplus has substantially increased. dependent upon subsidies It now regularly tops €9 from the EU, which total AGRICULTURE billion (US$12.4 billion). some €11 billion (US$15.2 Agriculture remains a vital sector of million). France was the the French economy, even though it main country in the EU that is against the engages only about 4 per cent of the reduction of subsidies when developing labour force and contributes about countries demanded for it during the Doha 3 per cent of GDP. Since the early rounds of trade talks in recent years. 1970s, the agricultural labour force France’s foreign trade balance in has diminished by about 60 per cent. agri-foodstuffs, was positive for the first France, whose farms export time in 1969, and since then the surplus more agricultural food products has substantially increased. It now than any other European Union regularly tops €9 billion (US$12.4 billion). (EU) nation - accounting for 22 per The main items in surplus are: wines cent of the EU’s total agricultural and beverages, cereals, dairy products, output - is the only country in live animals, sugar and sugar-based THE HALAL JOURNAL

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country in focus

Vital Stats COUNTRY NAME: conventional long form: French Republic conventional short form: France POPULATION: total: 63,713,926 note: 60,876,136 in metropolitan France (July 2007 est.) RELIGIONS: Roman Catholic 83%-88%, Protestant 2%, Jewish 1%, Muslim 5%-10%, unaffiliated 4% GEOGRAPHY - NOTE: largest West European nation GDP (OFFICIAL EXCHANGE RATE): $2.151 trillion (2006 est.) GDP - REAL GROWTH RATE: 2.2% (2006 est.) GDP - COMPOSITION BY SECTOR: agriculture: 2% industry: 20.7% services: 77.2% (2006 est.) UNEMPLOYMENT RATE: 8.7% (2006 est.) INFLATION RATE (CONSUMER PRICES): 1.7% (2006 est.) AGRICULTURE - PRODUCTS: wheat, cereals, sugar beets, potatoes, wine grapes; beef, dairy products; fish INDUSTRIES: machinery, chemicals, automobiles, metallurgy, aircraft, electronics; textiles, food processing; tourism EXPORTS: $483.1 billion f.o.b. (2006 est.) EXPORTS - COMMODITIES: machinery and transportation equipment, aircraft, plastics, chemicals, pharmaceutical products, iron and steel, beverages EXPORTS - PARTNERS: Germany 15.6%, Spain 9.6%, Italy 8.9%, UK 8.2%, Belgium 7.2%, US 6.7%, Netherlands 4% (2006) IMPORTS: $520.8 billion f.o.b. (2006 est.) IMPORTS - COMMODITIES: machinery and equipment, vehicles, crude oil, aircraft, plastics, chemicals IMPORTS - PARTNERS: Germany 19%, Belgium 11%, Italy 8.3%, Spain 7%, Netherlands 6.7%, UK 6.5%, US 4.6% (2006) Source: CIA World Fact Book

products. The main items in deficit are fishery and aquaculture products, tobacco, and fruit and fruit-based preparations. HALAL POTENTIAL Because France views itself as indivisible and able to assimilate its diverse components, the government bans official statistics based on ethnicity or religion. As a result, no one knows exactly how many Muslims live in the country – at least five million or 10 per cent of the Just as France is total population is a trendsetter for the best guess. clothing, it is also a Recently, at trendsetter for food. a business matching Products accepted by French consumers session between have a high potential Malaysian Small and Medium Enterprises for European and international success. (SMEs) and French entrepreneurs and Halal food makers may wholesalers in Paris, wish to leap into ethnic Christian Pepineau, food development to First Vice-President ensure they cash in of Paris Chamber on the burgeoning of Commerce and European market. Industry (PCCI) said Halal food is of great concern among the French Muslim population, providing plenty of business opportunities for Halal players. Halal food makers may wish to leap into ethnic food development to ensure they cash in on the burgeoning European market for packaged ethnic food predicted to hit €7 billion (US$9.3 billion) by 2009 on double-digit growth. Ethnic packaged food products currently make up only 0.9 per cent of Europe’s €450 billion (US$598.5 billion) packaged

food market, according to consumer market research firm Datamonitor. While Chinese and Indian meals remain the favourite ethnic food types, Mexican food is fast catching on. Ethnic food is appealing to Europeans, and probably even for the French, as more and more people demand bettertasting and stronger-flavoured food. Food makers wishing to make good of the French market must understand the increasing importance of discounters in retail distribution of packaged food, according to consultancy Euromonitor International. The image of discounters in France in recent years has changed, as they increasingly meet people’s expectations about quality. Indeed, discounters benefit from the fact that many French consumers are increasingly price-sensitive rather than brand conscious, and in many cases would prefer to buy a cheaper private label alternative to an expensive branded product. Just as France is a trendsetter for clothing, it is also a trendsetter for food. Products accepted by French consumers have a high potential for European and international success. Since its beginning in 1964, the SIAL International Food Products Exhibition in Paris, France, a biennial event, has become one of the world’s largest food and beverage expositions. It has also gained a reputation as one of the finest professionals-only food trade shows in the world. At SIAL 2006, 302 exhibitors from 99 countries participated at the trade show, which reported hj 140,423 visitors from 191 countries.

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islamic finance

redit card, which is also popularly known as ‘plastic money’, has become an essential mode of payment in today’s modern society. It is often associated with prestige and a luxurious lifestyle with bankers offering a range of cards such as silver, gold and platinum to reinforce this perception. Fact of the matter is, people own credit card as it offers a hassle free, secure and reliable means of making payment globally and minimises the need of carrying cash. The conventional credit cards promote the concept of ‘buying first and paying later’ and it enables cardholders in spreading out the payment for large purchases. Because of this, it has become one of the most convenient methods of electronic and online transactions in recent years. Credit cards therefore definitely offer convenience to customers. In Islamic finance however, it is considered as haram (impermissible) as it does not comply with certain Shariah requirements, as listed below:

Evolution OF ISLAMIC CREDIT CARD BY LOKESH GUPTA AND BALA SHANMUGAM, MONASH UNIVERSITY MALAYSIA

ELEMENT OF RIBA’: Interest payments made by conventional card holders, in the event outstanding amount is not repaid in full within the grace period, is considered as riba’ (interest or excess), and therefore is forbidden in Islam. USAGE OF CREDIT CARD: Conventional credit card can be used at any outlet for making a payment, including payments for non-Halal related items or activities, such as for alcoholic beverages in bars or nightclubs. INSURANCE: The insurance offered to credit card holder is conventional insurance, which may not be in compliance with Shariah. CASH ADVANCES: Any cash withdrawal made from the automated teller machines (ATMs) or bank outlets is treated as a loan, and interest is to be paid on it, which is impermissible in Islam. CONSUMERISM: With the flexibility to pay later, credit cards encourage excessive consumerism, forcing people to live beyond their means and this is certainly not in line with Shariah precepts. COMPOUNDING INTEREST: Interest charged on outstanding payment is on a compounding basis and is unacceptable under Islamic finance, where a fixed profit rate can only be charged to the customer.

CREDIT CARD AGREEMENT: Even though credit card customers pay the outstanding payment within the due date to avoid interest payment, it is still not acceptable under Shariah due to the presence of the ‘Gharar’ (uncertainty) element. This is because, signing a credit card agreement is akin to agreeing to pay riba’ should the cardholder fail to make repayment in full and on time. Since no human can either know what the future holds or guarantee their own infallibility, Muslims cannot enter into any contract that promises otherwise. From the above reasons it is clear that the conventional credit card is simply unacceptable under Islamic finance. Looking into the need and potential benefits of credit card, product developers along with Shariah compliance advisers have innovated a number of Islamic credit card structures that addresses the above shortcomings. Malaysia has scored many first in Islamic banking industry and Islamic

credit card is one of the innovative financing products offered by Islamic financial institutions to meet the demand for Shariah compliant credit cards in the Malaysian market. In 2001, AmBank Malaysia launched the Al-Taslif Card-i with Bai Al-Inah as the underlying Shariah principle. The Bai Al-Inah contract works on the basis of two back-to-back agreements or ‘akad’. The first is the bank’s agreement to sell an item to the customer at an agreed price, while the second agreement covers the customer selling back to the bank at a lower price. The difference is the bank’s profit on the transaction and is a predetermined amount. There is no penalty charged to the customer such as compounding of profit in the event of default of installment payment. In addition, the customer is eligible for rebate on the unutilised financing amount; hence the profit will be charged solely on the outstanding payment after the expiry of the grace period. Bank Islam Malaysia also

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islamic finance

launched its Bank Islam Card-i (BIC) in July 2002. It works on a combination of three Shariah contracts: Bai Al-Inah, Wadiah and Qard Hassan (see Figure 1). Once an initial Bai Al-Inah transaction has taken place (normally, a piece of land or an asset is sold by the bank to the customer at seller price and then is immediately bought over by the bank at the purchase price) the cash proceeds of the second agreement (purchase price) are transferred into the customer’s Wadiah BIC account and is maintained by the bank. The customer can then use the BIC card to make payments with the collateral coming from the funds in the Wadiah account. Finally, the Qard Hassan facility is granted in the event of emergency if the cardholder wants to spend more than the funds available in the Wadiah account, and the bank agrees to make more funds available on an interest-free basis. Similar to the Al Taslif Card-i, the cardholder is eligible for rebate, takaful with no compounding of profit. In addition, the usage of card is limited to permissible activities only. The Islamic card issuer will decline transactions for six categories of non-Halal-

The need of the day is innovative product features to meet the expectation of customers who are looking for quality financial products and services that provide them the most value for their money. related activities, which are bars, discos, night clubs, purchase of alcohol/non-Halal goods, escort and massage services, and gambling. Recently, other local and foreign Islamic banks in Malaysia have joined in the foray. This includes Bank Simpanan Nasional’s Al Aiman Islamic credit card using the Bai Al Innah concept. Foreign banks such as Al Rajhi has also launched the ‘Charge Card-i’, whereby the amount spent using the card is payable by cardholder in full when the statement is received and cannot be rolled over from one billing to the next. HSBC Amanah MasterCard Charge Card-i also follows the similar charge card principle. When utilising the charge card concept, banks earn from the annual fee, which is slightly higher in comparison to other credit cards. However, the Middle East Region (MER) banks and their Malaysian counterparts are not in favour of the ‘Bai

Al-Inah’ concept being used as the underlying principle in Islamic credit cards. This could be due to the virtual buying or selling transaction, whereby no physical asset is exchanged and such a transaction structure could be a means to mask riba’. The financing mechanism for Islamic credit cards, as practiced in MER, is predominantly using the Tawaruq principle, also known as reverse Murabaha. Under this principle, the financial institution, either directly or indirectly, buys an asset and immediately sells it to a customer on a deferred payment basis. The customer then sells the same asset to a third party for immediate delivery and payment, the end result being that the customer receives a cash amount and has a deferred payment obligation for the marked-up price to the financial institution. The asset is typically a freely tradable commodity such as platinum or copper. This concept is followed by

Islamic credit cards such as Tayseer AlAhil card (The National Commercial Bank), Al-Rubban (Shamil Bank of Bahrain), SABB Amanah credit card, and Al Khair card (Saudia Arabia’s Samba Financial Group and so on. Recently, Standard Chartered Bank has also entered into the Islamic credit card market under the name of ‘Saadiq’ (truthful). It operates on a fixed fee-based structure similar to the ‘Ujrah’ concept. Emirates Islamic Bank credit card on the other hand utilises Ijarah (rental) concept, whereby a yearly service charge is charged depending on the type of customer. The innovation for Islamic credit card does not just end at the financing structure but also on the reward for spending. First Gulf Bank has launched a unique Shariah-compliant Islamic credit card that earns you ‘steps’ to go to Makkah, i.e. for every Dirham spent using the card, customers will receive one ‘step’ towards a free trip to Makkah. Similarly, Qatar Islamic Bank has also launched the Alysr credit card, whereby upon usage of the card, the bank will pay QR1 to the Zakat committee to help the needy but for which the cardholder will not be charged. Despite Malaysia being a pioneer in Islamic credit card, it does seem to be losing out to its MER counterparts on the innovative financing structure and the reward programs. The need of the day is innovative product features to meet the expectation of customers who are looking for quality financial products and services that provide them the most value for their money. Islamic banking does provide the platform to introduce innovative product, although bankers have to undergo strict Shariah compliance checks in developing products that can fit the needs of their clientele. The end product may come out to be a better fit not only for Muslims but also for nonMuslims due to the no interest element and the transparency hj on the financing structure. THE HALAL JOURNAL

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islamic finance As one of the most forward-looking countries in nurturing an Islamic-based economy, or a Halal-compliant economy, Malaysia has been promoting rigorously the development of both the global Halal industry and Islamic ﬁnance - two fundamental elements that makes up for a strong and robust Halal economy.

Words By KAMARUL AZNAM KAMARUZAMAN

Surely there’s

n line with the government’s aim to make Malaysia as the International Islamic Financing Centre (MIFC) and transform itself as a global Halal hub, all government-related vehicles have been mobilised on all fronts to push forth this agenda through various related activities. One of these institutions is the Malaysian central bank, or Bank Negara Malaysia (BNM). In creating a viable and vibrant Islamic financial market, BNM has been encouraging local Islamic financial players to be more creative when offering services to the general public. From the basic Shariahcompliant deposit and fixed rate financing products when the first Islamic bank was established in 1983, the list has since grown to more than 60 Islamic financial products and services. These ranged from deposit products, financing, treasury / money market and investment, trade financing products as well as cards. Today, more complex financial instruments are available, including residential or mortgage-backed securities, commodity-based financing as well as investment and new sukuk products based on Musharaka and Mudarabah concepts. Interestingly enough,

the year 2006 also saw the advent of regulated and standardised Islamic derivative products such as Islamic Profit Rate Swap, FX Forward and Currency Swap. Other new Islamic structured products are also expected to enter the market soon. One of these new entrants, at least for the Malaysian market, is the Commodity Murabahah (CM). It has recently been approved by BNM as a new banking deposit product as well as a Treasury placement product, making it available to both the public as well as fund managers. Although CM has been used by many GCC countries over the last 40 years to facilitate practically all of their Islamic banking and finance activities, many Islamic banking practitioners are still skeptical of the “soundness” of its concept, especially in terms of it being “morally acceptable”. The following illustrates what we mean. Say Islamic Bank A wants to place shortterm money, for example US$1 billion, for a right return. It can either enter into a CM arrangement with Islamic Bank B or Conventional Bank XYZ. Assuming that it decides to enter with Islamic Bank B. So now Islamic Bank B needs to match the liability it had obtained with the right Islamic assets. Islamic Bank B then has

two options: either to use the liability to finance its own Islamic assets, or to make an interbank placement (investment) in the form of CM in other banks. Since identification of purpose is not required for any CM documentation in some parts of the world, it does not matter if the second-tier investment is either with an Islamic institution or not. This is exactly what has been practiced in the Middle East over the past 40 years or so, that the documentation is only reflected at the commodity trading level without identifying where the funds will subsequently be

invested in, either in Islamic system or in conventional. As a result, over US$1 trillion of Islamic funds is said to be leaking out of the Islamic banking system over the course of just one year. Imagine how much has leaked out over four decades! Herein lies the dilemma: can Islamic funds be used to finance riba’-based instruments, like the US Treasury bonds? Pushing the envelope a wee bit, could these Islamic funds been used to finance the US

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islamic finance Truth of the matter is, as rightly pointed out by a market practitioner recently, this is exactly why the GCC market is still seeing lackluster growth of its nascent secondary Islamic debt market. Islamic spirit should never, ever be sacrificed for profits or disguised

advance payment (Qard) will be set off against the full selling price, plus the value owed. In other words, the bank is paying upfront the part payment towards selling price of the CM transaction to the customer, in the form of Qard, which is equivalent

a Better Way

than to sacrifice the spirit of Islam… Isl a mic spir i t sho u ld ne ve r, e ver be sa cr ific e d for pr ofi ts or di sg u i se d a s innovation, per iod .

As a result, over US$1 trillion of Islamic funds is said to be leaking out of the Islamic banking system over the course of just one year. Imagine how much has leaked out over four decades!

government-related initiatives, say their military expansion programme for example? Nobody knows for sure, but the possibility is certainly there. Unlike the GCC countries, Malaysia, through the excellent supervision of BNM and the Securities Commission, has never allowed and probably will never allow proceeds from Commodity Murabahah (CM), or any other Islamicbased funds to be used for non-Halal transactions or redistributed into the conventional banking system.

as innovation, period. In that sense, one particular innovation that had caught our attention recently is the Fixed Return Investment Account-i (FRIA-i) by CIMB Islamic Bank Berhad. It still uses CM as the underlying concept but the Islamic spirit remains intact. Traditionally, profits are paid to depositors at the end of financial year, and it varies depending on the performance of the bank using the Mudharabah concept. The new product however, provides depositors with upfront payment of cash when they open and put money into the account. The following illustrates FRIA-i’s mechanism. Based on the concept of CM, a depositor enters into a buy-and-sell transaction with a commodity trader and the bank. This will ultimately result in the bank owing the depositor the deposit amount, plus a mark up profit (selling price) on deferred payment basis. Although the bank has agreed to pay the selling price on deferred basis, the bank decides to pay the profit portion of the selling price upfront. To do this, the bank advances the profit payment to the depositors based on a Qard transaction. When the bank makes the final payment for the sale price at maturity, the

to the profit portion. So now, banks are able to provide the market with a fixed rate return on their deposits, thus elevating the fear of uncertainty on the returns of the customer’s deposit. Clearly, a new breakthrough Islamic deposit product is born using the Commodity Murabahah concept. They even came out with a nifty catch phrase “Advance Profit”. Clever. Even more ingenious is the fact that this new CM-based deposit product is available to the general public, as opposed to being confined only for corporate placements and treasury dealings traditionally. Quite understandably, the product has been well accepted where almost RM1 billion have been raised since its launch in October 2007. It is heartening to note that the Malaysian Islamic banking fraternity is still unyielding in their quest to promote Islamic banking worldwide, and solidify the foundations of a strong and robust Halal economy. It is also heartening to note that despite the relatively small domestic market in Malaysia, innovations such as these continue to stream from the local industry, benefiting both the retail and business markets alike. May the practitioners and innovators always be guided through hj the right path, Insha’Allah. THE HALAL JOURNAL

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THE

HALAL

JOURNAL

LIVING

JAN+FEB

2008

ORIGINS OF PAPER MONEY TRILLA IN MANILA AL NAFOURAH IN KL BOOK REVIEW: EVOLUTION OF DECEIT

How did money as a medium of exchange for goods and services evolve into its current form we know and use today? Hazel Hassan Hisham transports us back into time and traces its origins in this ďŹ rst of a two-part article that chronicles the evolution of paper money.

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cover story

Introduction: The History of Paper

aper was one of the four greatest inventions by the Chinese, first invented by a man by the name of Ts’ai Lun (Chai Lun) in 105 AD. Ts’ai Lun not only greatly improved the papermaking technique, but also made it possible to use a variety of materials, such as tree bark, hemp and rags. Ts’ai Lun discovered that he had created a quality writing surface that was relatively easy to make and lightweight. This knowledge of papermaking was kept as a secret and used in China for quite some time before it was passed along to Korea, Samarkand, Baghdad and Damascus. By the 10th century, the Arabs were substituting linen fibers for wood and bamboo, creating a finer sheet of

as a monetary unit. The first paper money was, strictly speaking, a draft rather than real money. Early Chinese banknotes were printed on paper made of mulberry bark and this fibre is used in Japanese banknote paper today. It is apparent at the time that the use of paper money as a circulating medium is intimately related to shortages of metal for coins. These first bank notes carried a guarantee that it could be traded at any time for coinage. Those days in ancient China, coins were circular with a rectangular hole in the middle. Several coins

It is 225 x 340 mm with a pile of coins centrally depicted. The picture was to show illiterate traders that they could trade the bill in for the depicted number of coins. In 1131 AD, Chinese government’s paper money was issued to help finance military spending and soon afterwards these became official monetary means in China. New notes were issued in rapidly increasing numbers and redemption rights into metal were soon suspended. Notes went into circulation on the back of public confidence in the institutions of state, and the provincial

The Origins of Celtic Money

Ghaznavids Mahmud (998-1031 AD)•(Mahmud’s name is omitted)•Cites caliph al-Qadir (991-1031)•Fals, copper, 23 mm.

paper. Although paper was of fairly high quality now, the only way to reproduce written work then was by hand, a painstaking process. Papermaking technology only reached Europe by the 12th century. In 1448, German Johannes Gutenberg was credited with inventing the printing press, although it was believed that moveable type was actually invented hundreds of years earlier in Asia.

History of Paper Money

eedless to say, the Chinese were also the first to invent paper money, which in its early form can be traced back to the 7th century. Its original name was “flying money” because it was so light and could be blown out of one’s hand. In the year 812, the Chinese Emperor used it as a temporary solution because of the copper shortage. It was so popular that by the year 970 it dominated

could be strung together on a rope. Merchants in China, if they became rich enough, found that their strings of coins were too heavy to be carried around easily. To solve this problem, coins were often left with a trustworthy person, and the merchant was given a slip of paper recording how much money he had kept with that person. If he showed the paper to that person, he could regain his money. This is essentially the same system used in today’s banking system. The oldest surviving bank note is the 1000 cash note of the Ming dynasty from the era of the Great War 1368-1398.

Hanempresskuo

governments started issuing in their own name towards the end of the 12th century. When the Mongols came to power in China, they issued a quaint form of paper money called ‘silk notes’. The deposits behind this currency were not precious metals but bundles of silk yarn. By 1294, Chinese silk notes were being used as money as far as Persia. In 1215, Genghis Khan overran most of China. Complete power was not immediate, largely because Genghis sets off to overrun the entire Asia and terrorise even to Eastern Europe. When his grandson Kublai Khan was the Chinese emperor from

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1260 to 1263, there was an extensive issue of paper money known as the ‘First Mongol Issue’, which depreciated fairly rapidly. It was followed by the ‘Second Mongol Issue’ between 1264 and 1290 and was equally irredeemable and unlimited in issue. Marco Polo in one of the history’s greatest books described this. When he returned from his travels in China (1275-1292), people in Europe did not believed that the Chinese had used paper for money. It was not until the mid 13th century that a standard and uniform government issue of paper money was made into an acceptable nationwide currency. The widespread method of printing by the 11th century helped drive for the massive production of paper money in pre-modern China. The use of paper money in China however was discontinued by the new Ming Dynasty in 1455. How it ended was not known

extraordinarily big coins had to be made to equate the value to its weight. These coins often weighed several kilograms, and because the coins were so big, it was more convenient to carry a note. America followed in 1690, France in 1720, England in 1797, and Germany not until 1806. The Islamic Renaissance and History of Paper

he Islamic Renaissance was generally referred to a period between the 8th to the 13th century,

libraries began to become established, including the first book-lending libraries. From here on, papermaking spread to the West to Fez (the capital of Morocco for all together more than 400 years now) and then to al-Andalus (the Arabic name given to parts of the Iberian Peninsula in Spain governed by Muslims, or Moors, at various times within the period 711 to 1492. It also refers to the Umayyad Caliphate province (711-750), Emirate of Córdoba (c. 750929) and Caliphate of Córdoba (929-1031) and its “taifa” or successor kingdoms). It

Paper Money Lydian Coin

Yuan Paper Money

but it was certainly in an effort to rein in economic expansion and end hyperinflation. The end of paper money however closed much of Chinese trade to the outside world. Some 300 years later, paper money came to Europe. The history of paper money in Europe is interesting as it started as an ‘emergency money’ substituting for regular money, with the first emergency paper bills issued in 1483. The first bank notes however were printed later in the 17th century. When the older methods of paper money issuance became known in the West, they had a profound influence on the Western banking system. The old Hamburg Bank and the Swedish banking system were set up on similar Chinese lines. Thus, some of the fundamental banking procedures of the Western world came directly from China. The first Western paper money was issued in Sweden in 1661. Sweden was rich in copper thus because of copper’s low value,

Part 1

A copper plate for printing paper money, from the Southern Sung Dynasty capital of Hangchou, and dating from between 1127 and 1279 AD. Next to it is a print made from the plate as a modern example. Paper money had been invented in China by the late eighth or early ninth century: the first Western paper money was issued in 1661 in Sweden.

although some extended it until the 14th and 15th century. Most significantly, a major innovation of this period was paper - originally a secret tightly guarded by the Chinese. The art of papermaking was obtained from prisoners taken at the Battle of Talas (751), resulting in paper mills being built in Samarkand and Baghdad. The Arabs improved upon the Chinese techniques of using mulberry bark by using starch to account for their preference of using pens against the Chinese’ brushes. By AD 900, there were hundreds of shops employing scribes and binders for books in Baghdad and even public

then spread from there to Europe in the 13th century. Despite the advances made in papermaking technology by the Muslims, there have been no recorded references found on anything relating to banknotes or paper money used during these times within the Islamic world. Records only indicate that paper-based currencies were introduced in Muslim lands only during the colonial era and this continued well into the post-colonial era.

Next: Monetary system in the Islamic world and the problem with paper money. THE HALAL JOURNAL LIVING

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journey

Thrilla in MANILA CAPITAL CITY

ALL THAT’S FUN TO DO AND SEE IN THE

Words By BART AUGUST

OF THE PHILIPPINES

ue to its political

managed to take in the sights

during the Spanish colonial era,

climate, the

of what the city had to offer…

the park houses a museum and memorial that pays homage to

Philippines has been getting the

TOUR THE INTRAMUROS

the legendary reformist. The

short end of the

The old quarter of Manila boasts

park also retraces the steps Rizal

stick whenever

architecture, relics and ruins

took with brass footpaths to his

tourism is concern. A pity too,

of the Spanish period in the

eventual execution in front of a

because the country itself is

Philippines. Built in 1571 the

Spanish firing squad in 1896.

gorgeous and offers travellers

Intramuros was designed to be

and vacationers a wide variety

a city within a city separated

SHOP AT THE MALL OF ASIA

of holiday choices ranging

by the Fort Santiago wall from

Shopaholics’ hunger for good

from idyllic islands, beaches

the main capital of Manila.

bargains should be greatly satiated

and cosmopolitan cities.

According to history, the ancient

at the SM Mall of Asia. This largest

capital once boasted plazas, the

shopping mall in the Philippines

that boasts colonial and Spanish

Governor’s Palace and churches;

and the 6th largest in the world

architecture, towering blocks and

but sadly, most of these buildings

was opened in May last year. Built

huge malls. Many people travel

were left to ruin during the

on 19.5 hectares of land in the

to Manila and use it as a base

bombing raids of World War II.

Roxas Boulevard in Pasay City, the

Manila is actually a vibrant city

Mall of Asia boasts a gross floor

for further travelling, but if you

These days the Intramuros

are the type who craves a little

stands as one of the main tourist

area of 386,224 square metres and

adventure, then you might just

attractions in Manila. The district

attractions such as the Philippines’

discover the friendliness and

houses the Manila Cathedral

first ever IMAX theatre, a mini

charm of this teeming metropolis.

and St. Agustin Church and Fort

concert area and an Olympic-

Santiago, which also houses Rizal

sized skating ring. Internationally

stopover in Manila recently

Park. A tribute to Dr. Jose Rizal,

renowned fashion brands and

and even though we had a

a national hero in the Philippines

stores can be found in the Mall

tight schedule to keep, we still

who advocated for reforms

of Asia and if you are looking for

The Halal Journal made a

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Travel Note GETTING TO THE PHILIPPINES Malaysia Airlines, Philippine Airlines and Cebu Pacific Air operate daily flights from Kuala Lumpur to Manila. Budget carrier AirAsia operates a daily flight to Clarke which is two hours away from the capital city. The Philippines has several airlines like Sea Air and Asian Spirit that connects Manila to other local destinations like Cebu, Subic and Caticlan (Boracay).

The old quarter of Manila boasts architecture, relics and ruins of the Spanish period in the Philippines. Built in 1571 the Intramuros was designed to be a city within a city separated by the Fort Santiago wall from the main capital of Manila. locally-made souvenirs and Pinoy

musicians gather to perform

handicraft and products, do stop

acoustic sets. Visually appealing

by the Kultura store located on

and with a vibrancy that is

the second floor of the Main Mall.

competitive to what party-goers are accustomed to in places like

Halal Restaurants in Manila KASHMIR RESTAURANT Padre Faura cor. Adriatico St., Manila Serves Indian cuisine and is a favourite among locals and tourists alike.

UNWIND AT MALATE

Phuket, Malate is the place to be

The Malate district is the perfect

for a sample of Manilan night-life.

place to take in Manilaâ&#x20AC;&#x2122;s nightlife. Numerous bars, clubs and coffee

SAVOUR PINOY CUISINE

shops along the street of M.

Philippine cuisine generally

BOHDI RESTAURANT Madison, San Juan, Metro Manila Serves authentic Filipino Vegetarian fare.

Adriatico and Remedio light

consists of Malay and Spanish

up after sunset to bring Malate

influences. Local favourites

to life. Countless neon lights

include Tapa (beef jerky), Chicken

JAKARTA RESTAURANT Benitez St. cor. San Andres Quirino Avenue, Manila Specialises in Indonesian cuisine.

burn bright to offer tourists

Adobo (chicken braised in garlic,

and locals alike a wide variety

soy sauce, and vinegar) and

of food, beverage and the

deserts like Halo-Halo (local

perfect chance to unwind in the

version of Ice-Kacang) and Yam

evening. Not short of variety,

Ice-Cream. Restaurants also serve

Malate offers everything from

a wide variety of juices including

Korean restaurants to cafes and

Philippinesâ&#x20AC;&#x2122; famous thirst

jamming bars where bands and

quencher, the Green Mango juice.

MARTABAK CAFE 4th Flr., The Block, SM North EDSA, Quezon City Local Pinoy fare and the famous Philippine pancake can be found here.

THE HALAL JOURNAL LIVING

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browsing

Restaurant

COMPILED BY RUZANNA MUHAMMAD

et in stunning décor, Al Nafourah is the place with which to impress your friends or business clients with a full, delightful culinary experience. It is an exceptional place for any special occasion, complemented by Moorish arches and a contemporary Arabian Oasis; the ambience exudes mystery, adventure and heritage. Traditional rich, lush Middle Eastern art adorns the walls, lending a sensory pleasure to the cuisine. Some of the recommended Lebanese signature dishes include the classic

AL NAFOURAH

Le Méridien Kuala Lumpur, 2, Jalan Stesen Sentral, KL Sentral, 50470 Kuala Lumpur. Tel: 603-2263 7888

Opening Hours: 12.00 pm – 3.00 pm, 7.00 pm – 11.00 pm daily Price Range: RM15.00 – RM90.00 hummus, a puree of chickpeas mixed with tahini, lemon juice, olive oil and paprika, or the warak areesh, comprising stuffed grape leaves with rice and vegetables cooked in lemon juice and olive oil. Both are refreshing starters. The lamb shank, braised with seven spices and poached with cheese, and the garlic potato and artichoke stew are good choices for a main course, as is the sea bass and scallops infused with caraway and accompanied with beetroot whipped potato. The food presentation is avs equally impressive as the sublime taste. Those with a sweet tooth can indulge in the muhalabiah, a divine dessert of cold and thick milk with nuts and rose water. Try the mixed nuts pastille pastry with pistachio, too. The head chef Ibrahim Khalil Hamam from Lebanon is credited as the genius behind Al Nafourah’s noted culinary excellence.

Web

altmuslim.com

Developed in 2001, altmuslim.com is the website to browse if you want to be on your toes about global perspectives on Muslim life, politics, and culture. Crafted from the very beginning as a public service to Muslims and non-Muslims alike, this site was developed into an introspective voice that helps promote a critical, and self-critical, analysis of issues regarding the Muslim world. With a contemporary layout, and user-friendly interface, browsing altmuslim.com is just like flipping through a magazine, and is filled with interesting editorials touching on issues that revolve around the lives of Muslims, introspective interviews, and articles by regional experts on the challenges Western Muslims face. This website also feature reviews on music, books, movies and the likes. If you are a writer, you could even try submitting your articles to altmuslim’s editorial board. This is one cool website, and it definitely provides a better understanding on Muslim life, politics, and culture for both Muslims, and non-Muslims alike. If you prefer browsing the internet to reading a book, you should check this out!

74 THE HALAL JOURNAL LIVING

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browsing

Books THE EVOLUTION DECEIT: THE SCIENTIFIC COLLAPSE OF DARWINISM AND ITS IDEOLOGICAL BACKGROUND

BY HARUN YAHYA PUBLISHER: TA-HA PUBLISHERS LTD., LONDON, UK ISBN: 1-897940-97-1

Written by Harun Yahya, a most prominent Turkish intellectual, The Evolution Deceit completely explodes the myths surrounding the theory of evolution, with nothing but evidence-based scientific research and knowledge. Also available in eight languges, the book is Harun Yahya’s dedicated intellectual effort against Darwinism and materialism that has grown to be a worldwide phenomenon. An excellent refutation to the theory of evolution, The Evolution Deceit puts Darwinism into perspective as a fairy tale with no scientific

Music It is excellent not only in presenting the Islamic viewpoint on evolution, but could also be very useful for the people of all faiths who have a common creationist perspective with Muslims. This is one mind-blowing book, which serious readers cannot afford to miss! A free, downloadable copy of the book is available at www.harunyahya.net.

THE HISTORY OF MONEY

BY JACK WEATHERFORD PUBLISHER: THREE RIVERS PRESS, NEW YORK ISBN: 0-609-80172-4

The History of Money is a stimulating, focused tour of history and introduction to the complexities of money through the eyes of an anthropologist. In this book, Jack Weatherford, the author, and professor of anthropology

Blind Alphabetz:

luvolution Blind Alphabetz is set to take the UK by storm with their own brand of upfront, spirit-enriching hip-hop music. The duo hailing from Mozambique and Nigeria, Mohammed Yahya and Iron Braydz (A bdul Rahman) are firmly rooted in their African heritage. Inspired by their faith in Islam, and the passion of spreading Islamic knowledge, the socially conscious rap duo speaks out on spirituality, religion, politics and life’s experiences, focusing on issues such as Islamophobia and their motherland. Their style sways from laidback rhythm to serious beat spitting, with an all round talent that sees them easily put their hand to rapping, poetry and production, all fusing to form their own unique

evidence and an ideology that only serves as a “terrible” support to atheism. Filled with amazing facts, logical explanations, and attractive graphics, the author uses solely scientific proof to debate and topple old-atheisticmisconceptions regarding the creation of humanity to support his arguments. Written in a clear, comforting and satiating language, Harun Yahya enriches the modern knowledgebase of Muslims, and filling young minds with a treasure trove of information on Science and Islam – particularly the Darwinian Theory, in this book. This thought-provoking book provides and allows readers to think and find solutions to problem areas, be it socially, morally, politically, scientifically, economically or religiously; and because of its contents and its structure, can have a great appeal to a vast number of the population: from the scholars to the common person.

at Macalester College of Minnesota, traces the historical evolution of humankind’s relationship with money, from primitive man’s cowrie shells, to the electronic cash card; and from Timbuktu to the New York Stock Exchange. “The History of Money” explores how money and the myriad forms of exchange have affected humanity, and how they will continue to shape all aspects of our lives – economic, political, and personal. In the penultimate chapter of the book, Weatherford revealed his prediction for the future of money, which was a somewhat different outlook from those pessimistic economists who predict the collapse of our monetary system in the first quarter of next century. However, for readers looking for economic theories, this is not the place to turn to; but for a fast-paced history of the world through the lens of money, this is an excellent read!

brand of effervescent hip-hop music. With a heavily spiritual slant, Blind Alphabetz – through Luvolution – presents their decidedly loved-up, positive message of Islam against a backdrop of jazzy beats, reggae flavours and traditional hiphop breaks. The sheer variety of sounds keeps it fresh, featuring artists from the likes of Kyza, Samiyah, Shakara, Sean Price, and M1 of Dead Prez. Luvolution, a production of Silent Soundz, is their debut album released in October 2007 that showcases their diversity, which is something they are rich in, even at this early juncture of their music career to reach out to the Muslim youths.

THE HALAL JOURNAL LIVING

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on display Halal products are those that are good, pure and safe for human consumption. It ranges from food to cosmetics, pharmaceuticals to toiletries. Here are some of the products with the Halal guarantee.

Alla Fonte Prebiotic Drink

Claiming to be the first in the world for such product, Alla Fonte prebiotic drink contains polydextrose that promotes growth of prebiotic microflora and lactobacilli. These intestinal bacteria improve the health and wellness of the digestive system and enhance the responsiveness of the immune system. With no fat or sugar, this drink is not only good for your digestive system, but is also Halal certified. Available in three flavours of Mandarin orange, Lime and Ginger, and Pomegranate, Alla Fonte is marketed exclusively by MOFAZ. More info is available at www.mofaz.com

Champs Emulsion Cod Liver Oil

Kids these days are really spoilt when it comes to emulsions. No more are those smelly, yucky-tasting cod liver oil kids these days have to deal with. Naturally rich in vitamins A and D, Omega-3 fatty acids and fortified with calcium, Champs cod liver oil helps build the body’s natural resistance to infections. The cod liver oil helps to keep the epithelial cells of the respiratory tract healthy and so reduces the risk of infection by organisms invading the body. Moreover, with orange flavouring, the dreaded taste is gone, leaving kids wanting for more! This Halal certified product is available in all leading pharmacies. For more information, log on to www.ccmpharmaceuticals.com

Appeton Chewable Vitamin C Pastilles for Children Parents know that vitamin C reduces the severity and duration of symptoms associated with colds and flu. Vitamin C also plays important roles in the formation of collagen, tissue repair and wound healing, as well as aids in the absorption of iron and acts as an antioxidant vitamin, scavenging free radicals. The only problem is getting the kids to eat them! Now available in chewable pastilles, and comes with cute alphabets in orange, strawberry and blackcurrant flavours, this is one vitamin kids would love to eat, or chew... Check out www.appeton.com

Naqia Musoffa Za’faran Herb Drink

Ever seen the molecules of zam-zam water as opposed to the molecules of ordinary water? Well, they are very, very different. Short of bottling the zam-zam water, this Malaysian local company has made an herbal-based drink from the extracts of the za’faran flowers, which were used as ink to write the entire Qu’ran on a white plate and then dissolved in a mixture of zam-zam and natural mineral water. This remedy acts as an alternative to chemical or prescription drugs for a stronger mind, body, and soul. Check out www.naqia.com.my for more info.

Naturalle Toco-E Softgel Capsules

From the largest Halal pharmaceutical maker in Malaysia, probably even the world, CCM Pharmaceuticals introduces Naturalle Tocotrienols derived from the fruits of Malaysian palm oil. Tocotrienol, a natural source of Vitamin E, act as an anti-oxidant to quench and neutralise the activities of free radicals in body tissues. This nutritional supplement uses gelatine capsules from JAKIM Halal-certified bovine source and is available in all leading pharmacies. Log on to www.ccmpharmaceuticals.com for more info.

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snapshots

BLISTERING | A Garang Racing race craft sporting the logo of Serimas cooking oil, a product manufactured by leading Halal manufacturer, MM Vitaoils Sdn Bhd, in action during the recent Merdeka Millennium Endurance Race in Sepang.

EXCELLENCE | Haji Rubani Dikon, general manager of finance and company secretary for Northport (M) Sdn Bhd receiving the Technical Business Review’s Excellence Award 2007, Logistics and Port Services Sector category from Datin Paduka Tan Yee Kew, Parliament Secretary of the Ministry of International Trade and Industry.

GIMMICK | Chief minister to the Malaysian state of Melaka Dato’ Mohd Ali Rustam checking out the promo gimmick from a local manufacturer during HDC’s Halal roadshow in the historical state.

ASSURANCE | A representative from Dindings Poultry Processing Sdn Bhd (DPP) answering questions fielded by a delegation from McDonald’s Asia Pacific, Middle East and Africa region. DPP is one of two Malaysian suppliers of Halal poultry meat to McDonald’s.

IMPORTANT | The Uruguayan ambassador to Malaysia, Pablo Sader, addressing the delegation during a special luncheon organised by the Halal Industry Development Corporation (HDC).

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THE 3RD

World Halal Forum 2008 World Halal Forum THE PREMIER GLOBAL HALAL INDUSTRY EVENT WHF 2008 The World Halal Forum is acknowledged as the foremost gathering of Halal industry leaders from all over the world, all converging in Kuala Lumpur every year to discuss issues within the global Halal industry. This makes it an excellent platform to share ideas, raise concerns and suggest opportunities so as to chart the future growth and development of the Halal industry.

We therefore invite all individualS and corporationS to contribute to the development of the global Halal market by submitting proposed papers to be presented during the WHF 2008.

CMY

CALL FOR PAPERS Date: 12-13 May 2008 Venue: Kuala Lumpur Convention Centre, Kuala Lumpur, MalaysiaÂ Submission deadline: 15th March 2008 For more info, log on to www.worldhalalforum.org or call the WHF Secretariat at +6 03 6203 1025

parting words

MISSION FOR NEW WHC SEC-GEN

Unite All Halal Bodies The World Halal Council (WHC), an international organisation established to protect the interest of Muslims in Halal, recently saw a change in its management lineup during the council’s 6th Annual General Meeting in Kuala Lumpur on 24th -28th November, 2007. Dr. Muhamad Nadratuzzaman Hosen from LP-POM MUI, Indonesia has been chosen to replace Prof. Dr. Aisjah Girindra, who has decided to retire from her post as President, but was re-appointed as Honorable Patron. A new secretary general was also appointed, with Haji Abdul Rahman R.T Linzag from Islamic Da’wah Council Philippines chosen to replace Dr. Mohamed Sadek of IFANCA, USA. 26 certification bodies from 21 different countries attended the general assembly, where members also took the opportunity to add five new executive committees to the existing three. The executive committees include the Gelatine Committee, Stunning and Slaughtering Committee, Flavours and Additives/Ingredients Committee, Membership Committee, Technical Committee, Religious Committee, Mediation and Arbitration Committee as well as an Election Committee. The Halal Journal took the opportunity to congratulate the new appointees, and asked the new secretary general, Haji Abdul Rahman Linzag on his plans for the World Halal Council within the coming years. The following were his comments. AS THE NEW SECRETARY GENERAL FOR WORLD HALAL COUNCIL, WHAT ARE YOUR PLANS TO FURTHER STRENGTHEN THE HALAL STANDARDS AND CERTIFICATION AROUND THE WORLD? “Since the Secretary-General is in charge of bringing to attention matters concerning the functions and programs of WHC, which will then be calendared for deliberation in the general assembly, my plans, Insha’Allah, would be to continuously improve on Halal standards and certification procedures being implemented by all the certifying bodies around the world. “This would be reinforced by the committee for Halal standards, which is continuously working on scientific research on improving Halal standards and certification. This will then be submitted to the secretariat for inclusion in the executive committee meetings. “Today, Halal standard is no longer limited to food but it also include non-food products, personal care, pharmaceuticals, packaging and even logistics. All these are being considered to formulate one global Halal standard for certification and accreditation. “Also, a bigger challenge lies ahead with the reluctance of some Muslim consumers to accept Halal certification from organisations that have not been accredited by themselves, on account of the difference of standards being used. This is in fact the reason why WHC was established, and we would now be working harder to strengthen the standard and enforce this to all member organisations. Sanctions would then be imposed on member organisation that do not adhere to the world standard, which will be passed in due course.”

WHAT OTHER AREAS DO YOU SEE AS CRUCIAL IN THE DEVELOPMENT OF A STRONG AND ROBUST GLOBAL HALAL INDUSTRY? “Other areas we believe to be crucial is the actual implementation of the Halal standards among the nonMuslim countries who are either suppliers of Halal raw materials / ingredient or producers of Halal finished products. In this case, the certifying bodies have to implement remedial measures to prevent production and possible certification of non-Halal products in those Halal certified manufacturing companies. “The other crucial situation is that, some non-Muslim countries are creating their own government-backed Halal certification body whose membership are neither qualified nor are practicing Muslims, but have been able to penetrate in the Halal industry through diplomatic means.” IN TERMS OF PARTNERSHIP WITH OTHER HALAL-RELATED ORGANISATIONS AROUND THE WORLD, WOULD

WHC BE COMPETING OR COMPLEMENTING OTHER SIMILAR OR RELATED WORKS? “WHC being a world body should not go down to the level of a Halal certifying organisation to deal in competition with other international Halal bodies. WHC should rather complement other related works within the Halal assurance programme or perhaps to contribute, if deemed necessary, to the development of a truly standard Halal processes and procedures.” WHAT DOES WHC HOPE TO ACHIEVE WITHIN THE NEXT FEW YEARS AND HOW DO YOU PLAN TO ACHIEVE THIS? “Halal certification and standards is a continuing process in the same manner that science and development is a continuous process of research and development. Therefore, WHC, Insha’Allah, would continue to work not only for the unity of all Halal certifying bodies but also for the continuous research and advancement of scientific and technological means for the standardisation of Halal products and procedures.” hj

Halal certification and standards is a

continuing process in the same manner

that science and development is a continuous

process of research and development.

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