The Halal Journal - Jan/Feb 2007 by The Halal Journal

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

PP 13884/ 10/ 2006

* 2ND YEAR ANNIVERSARY ISSUE

Exclusive!

Halal Industry Development Corporation Gives Their First In Depth Interview REGIONAL ORCHESTRATING WORLD HALAL HALAL IN A FORUM IS MULTI ETHNIC OPPORTUNITIES HALAL LOGISTICS BACK! IN POULTRY MARKETPLACE

LIVING: LOVELY CUISINES AT AL NAFOURAH MEET THE MUHAJABABES CANADA: THE QUIET RICH MAN UP NORTH AN OTHER CUP BY YUSUF ISLAM

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1/23/07 2:58:50 PM

THE PREMIER GLOBAL HAL AL INDUSTRY EVENT

World Halal Forum 2007 “HARMONISING THE GLOBAL HALAL MARKET”

MANUFACTURING, TRADE & INVESTMENT – STANDARDS, SHARIAH & SCIENCE

7-8 MAY 2007 KUALA LUMPUR CONVENTION CENTRE KUALA LUMPUR, MALAYSIA

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www.halaljournal.com | ISSN 1823 1411 • PP 13884/ 10/ 2006 • MICA (P) 135/ 12/ 2005

J A N + F E B 20 0 7

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contents

EXCLUSIVE: HALAL INDUSTRY DEVELOPMENT CORPORATION Halal Industry’s Prime Mover Gives Their First Interview

Plus Insights on HDC’s Local Halal Agenda & How It Aims to Promote Halal Trade Among OIC Members

16} HIGHLIGHTS

World Halal Forum Is Back - Bigger Than Ever

28} FEATURE 1

How do you promote Halal in a multi-ethnic marketplace? Read on.

32} FEATURE 2

Orchestrating Global Trade From Your Office

36} FEATURE 3

Regional Poultry Industry: Identifying Areas of Opportunity

40} FASTRACK ASIA

Damascus: International Halal Centre underway China: Pushing for Meat Traceability

42} FASTRACK AUSTRALASIA

Safeguarding New Zealand’s Halal Slaughtermen

44} FASTRACK EUROPE

The Tesco RM1B Halal UK Update

48} FASTRACK AMERICAS

Halal Meals for US Airlines. What does it take to have one?

52} FINANCE

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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1/23/07 12:10:14 PM

Ed’s Note New Year, New Resolutions, Renewed Vigour

The biggest challenge for many local Muslim Halal producers is in product promotions and branding.

Dato’ Jamaluddin Abdul Kadir, chief executive officer Prima Agri-Products Sdn Bhd

Regulars 08} QUIETLY SPOKEN Expectation & Acceptable 08} GLOBAL NEWS Your quick reference of Halal development around the globe, updated Calendar of Events + reader’s poll 14} BETWEEN THE LINES: Getting The Clearer Picture in Halal 15} MATRADE NEWS Diﬀerent Types of Grants Available

Living 56} BROWSING We ate at Al Nafourah, listened to Yusuf Islam’s comeback album while reading two books in one sitting. 60} COUNTRY IN FOCUS Canada – The Other, Quieter Rich Giant of North America 62} ON DISPLAY Halal and good stuﬀ currently on the shelf 64} PARTING WORDS Malaysian Halal champion shares industry insight

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Another year has passed and as a new year now dawns upon us, it is the time when we take stock, and ask ourselves whether we doing enough? Well, not here at The Halal Journal, we feel. There is so much to do in such a short time and sometimes we wish there were more than 24 hours within a day! In this second anniversary edition, since we first talked about a global Halal industry in January 2005, a lot of progress has been made and the magazine is now right at the centre of this highly lucrative industry. The proof is in this issue, where the newly established Halal Industry Development Corporation’s (HDC) made us their first choice to fill us in on what their plans are for developing the Halal industry, both in Malaysia and around the world. Read their CEO’s first in depth interview on page 22 and see his vision for developing Halal into a global market force. This issue is also packed with other insights, where we explore the idea that Halal is applicable at anytime, anywhere, and in any culture. We have an interview with an expert researcher in Malaysian agriculture industry and he shared with us some key insights within the poultry industry. Another area that we have been actively following is the development of Halal logistics, and we now have the brains of a Dutch logistics expert to share the industry’s perspective on how best to ship Halal all over the world. We hope you’ll continue to benefit from the latest news of the Halal markets worldwide, and we welcome your continued comments and feedback. Have a fruitful 2007 and a blessed 1428 Hijrah!

the Halal Journal team

:: T H E H E A R T O F TH E H A L A L J O U 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.

1/23/07 12:11:03 PM

EDITOR Jumaatun Azmi DEPUTY EDITOR Kamarul Aznam Kamaruzaman CONTRIBUTING WRITERS Amanda Suriya Ariffin Irfan Sungkar Sakeena Rashid Tong Yee Siong Marco Tieman Hariz Kamal Lilyana Aziz

KASEHDIA HALAL GUIDES “The world’s first series of Halal food restaurant guides.” Asian Wall Street Journal

Top 3 ‘Best Guide in the World’ for 2004 Gourmand Awards

DIRECTOR, RESEARCH & INTELLIGENCE Abdalhamid Evans PROJECT MANAGER Salama Evans GRAPHIC & DESIGN M. Zailan DIRECTOR, SALES & DISTRIBUTION Nordin Abdullah

CORPORATE MANAGING DIRECTOR Jumaatun Azmi EXECUTIVE DIRECTOR Nordin Abdullah DIRECTORS Abdalhamid Evans Fareen Shazli Ali

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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 by KasehDia Sdn Bhd. All Rights Reserved. Printed in Malaysia by Art Printing Works Sdn. Bhd.

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Available in all major bookstores www.kasehdia.com • info@kasehdia.com

1/23/07 12:11:55 PM

Expecting the Expectation

Mark Piet

Quietly Spoken

GlobalNEWS & Accepting the Acceptable

Understanding your customers has never been so important, as the forces of globalisation and the resulting increase in level of competition pushes all companies to scrutinise every single detail about the customer and how best to fulfill their needs. What makes Halal interesting is the progressively increasing growth figures. Increase in food expenditure coupled with population growths of Muslim nations and Muslim minority groups in regions like the EU, is pushing the demand for Halal products upward. The best part is: all indicators are suggesting that this upward trend is not going to change any time soon. A Halal certified product is the starting point for access to these market sectors. Going back to basics, Halal will keep making perfect business sense for many companies that continue to make extra efforts to understand their customers’ needs. If you cannot provide for your customer needs, then you risk becoming irrelevant, and this can be true also for the service providers within the Halal industry. Not only manufacturers, even certification agencies should also need to understand the changing trends of this market. Some would argue that they should, by default, have the best understanding. Sadly enough for many, this is not the case. An approach to quality and service is therefore needed in the Halal certification process. In addition to being transparent, this process should not just be based on gut instincts, but rather on clearly definable parameters. This in fact, is the nature of Halal - it is a concept that asks this hj question; what is acceptable?

FAST-FOOD GIANTS CATER TO MUSLIMS

First, the new owner of a nearby Kentucky Fried Chicken began trying to lure shoppers from the heart of South Asian Devon Avenue. Then a Brown’s Chicken and Pasta popped up a few blocks away. It seemed a strange juxtaposition - all-American fast food, elbow-to-elbow with aromatic cuisine from the other side of the globe. But the secret ingredient both outlets offered was Halal, the Islamic analog of kosher, a promise that the meat has been slaughtered and prepared in accordance with Islamic teachings. And that, in turn, has sparked a neighbourhood contest over whose fried chicken is truly Halal, or more Halal - a 21st century collision of American marketing, immigrant tastes and ageold customs. The fried chicken wars on Devon underscore the growing power of the Muslim market. In Muslim countries, fast food giants like McDonald’s, Pizza Hut, KFC and Burger King have long served Halal meat and have become popular teen hangouts. In the West, chains are only now picking up on the Halal market. McDonald’s has two Halal franchises in Dearborn, Mich., one in Australia and is considering another in Britain. A Subway location in New Jersey adopted Halal about two years ago. Outback Steakhouse recently announced it offers Halal lamb from New Zealand. The Halal food business is currently an estimated $16 billion industry in the U.S. alone. | SOURCE: CHICAGO TIMES, 16/1/2007

MALAYSIA

NORTHPORT HELPS HALAL PRODUCT PLAYERS REACH OUT TO THE WORLD

NORTHPORT at Port Klang, as the most extensively connected Malaysian global port with a strong outreach to the 1 billion global Muslim consumer market, is making rapid strides to integrate Malaysia into the global Halal products distribution network. The port - served by more than 80 shipping lines, providing direct and feeder shipping connectivity linking 200 over ports in Asia, Europe, the Mediterranean, Africa and the Middle East - offer the critical link in the transport and logistics chain, for Halal product. Distributors of Halal products are able to leverage on the versatile facilities at Northport . They offer designated areas for packing and unpacking of inbound or outbound products as its versatile Northport Distripark in the Free Zone within the port. There are dedicated cold and cool room facilities to meet the requirements of specific foodstuffs that need refrigeration or temperature-controlled storage space. As an emerging Halal hub port, Northport is already handling a wide range of Halal products in large quantities, including dairy products, frozen food, grains, fruits, vegetable products and non-alcoholic beverages. These cargoes are part of the total 2.7 million TEUs handled by the port last year. | SOURCE: PORTSWORLD, 15/1/2007

THE HALAL JOURNAL

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1/23/07 12:13:04 PM

U.S

THAILAND

MATRADE TO PROMOTE MIHAS 2007 IN BANGKOK

The Malaysia External Trade Development Corporation (Matrade) will organise a promotional event here on Jan 25 to attract Thai Halal industry players to participate in the Fourth Malaysia International Halal Showcase (MIHAS 2007). Its marketing manager, Suthep Unrunghuang said between 100 and 150 representatives from various Halal companies will be attending the event to be held at the Imperial Queen’s Park Hotel. “Last year, we had only two companies from Thailand taking part in MIHAS 2006 but we are expecting more this year due to the expanding Halal industry,” he said here Tuesday. | SOURCE: BERNAMA, 9/1/2007

KOSHER AND HALAL ARE GROWTH PRODUCTS, SAY US INDUSTRY ASSOCIATIONS

US industry associations say that producers should consider the growing market for Kosher and Halal meat products. The US Food Marketing Institute and the American Meat Institute have highlighted the importance of the market for Kosher and Halal meat products by devoting a special section to these products at the 2007 Annual Meat Conference. In a release, the organisations said: “Trend watchers say the market for Kosher and Halal products are poised to grow exponentially among those who choose these products for religious reasons or for other perceived benefits.” They continued: “According to Food Processing Magazine , growth in the Kosher and Halal categories is one of the six hottest trends in the food industry this year.” | SOURCE: WORLDPOULTRY.NET, 7/12/2006

“Trend watchers say the market for Kosher and Halal products are poised to grow exponentially among those who choose these products for religious reasons or for other perceived benefits.”

The US Food Marketing Institute and the American Meat Institute

U.S

MEAT, MILK FROM CLONED ANIMALS OK’D?

A long-awaited study by US scientists has concluded that meat and milk from cloned animals and their offspring are safe to eat and drink and should be allowed to enter the food supply without any special labeling. The finding is a strong signal that the Food and Drug Administration will endorse the use of cloning technology for cattle, goats, and pigs when it publishes a key safety assessment intended to clear the way for formal approval of the products. That assessment is expected this week. “All of the studies indicate that the composition of meat and milk from clones is within the compositional ranges of meat and milk consumed in the US,” the FDA scientists concluded in a report published in the Jan. 1 issue of the journal Theriogenology, which focuses on animal reproduction. The study, however, prompted a sharp reaction from food safety advocates. The FDA “has been trying to foist this bad science on us for several years,” said Andrew Kimbrell, executive director of the nonprofit Center for Food Safety in Washington. “When there is so much concern among so many Americans, this is really a rush to judgment.” Many ranchers and dairy producers have already cloned animals for meat and milk production, but a voluntary moratorium initiated about five years ago by the FDA has largely kept them and their offspring out of grocery stores and restaurants. | SOURCE: BOSTON.COM, 26/12/2006

MALAYSIA

NESTLE TAKES BIGGER BITE OF GLOBAL HALAL FOOD BUSINESS

2007 is going to be a big year for Nestle SA where the Halal food business in concerned. In March, it plans to send top level Malaysian delegation to the UK in an effort to promote its Halal products worldwide. Nestle, which is repositioning itself as a nutrition, health and wellness company, is working with UK retailer Tesco to introduce its Halal products in 40 stores there. If successful, the Halal products could also see itself on shelves in some 500 stores and Nestle Malaysia’s range of products is expected to be prominent in the scheme of things. Nestle’s executive vice president and zone director for Asia, Oceania, Africa and Middle East (AOA) Datuk Frits Van Dijk said the company is ready to take advantage of the global Halal food explosion. It has more than 75 Halal-certified factories worldwide with more than 100 Halal certified production lines. Of the total, 66 are Zone AOA (including Malaysia), Europe (7) and Americas (2). In Malaysia alone, Nestle has 8 factories and 6 sales and distribution companies. In 2005 Nestle SA recorded more than US$3 billion (RM10.6 billion) in sales in markets where Islam is practised. “We are clearly seeing an increased interest in Halal food consumption. There are tremendous opportunities,” Van Dijk said. | SOURCE: BUSINESS TIMES, 28/12/2006 PAKISTAN

KL-ISLAMABAD FTA SET TO BE FIRST WITHIN OIC

THE Malaysia-Pakistan Free Trade Agreement (FTA), which is into its final leg of negotiations, will be the first to be concluded between two Organisation of Islamic Conference (OIC) economies. Pakistan High Commission commercial counselor Shahzad Hussain Rana said the agreement will boost bilateral trade as well as drive Malaysian investments in Pakistan’s manufacturing, agriculture, telecommunications, infrastructure and information technology sectors. “It will enable us to not only increase trade with Malaysia, a small market, but expand our market in the Asean region as well,” he said in an interview with the Business Times. So far, seven meetings have been held between both negotiating parties and the eighth meeting is expected to be held in Kuala Lumpur this month. The Pakistani negotiators are being led by Shahid Bashir from the Ministry of Commerce in Pakistan. The FTA with Malaysia was mooted when Malaysian Prime Minister Datuk Seri Abdullah Ahmad Badawi visited Pakistan last year, to liberalise trade in goods and services and investment as well as enhance economic cooperation between both countries. Both countries signed an early harvest programme which came into effect early this year, covering 125 tariff lines from Pakistan and 114 tariff lines from Malaysia. | SOURCE: BUSINESS TIMES, 11/12/2006 THE HALAL JOURNAL

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1/23/07 12:13:39 PM

GlobalNEWS

HALAL JOURNAL

OnlinePOLL

��

“More and more developing countries are consuming meat, as the income of their populations is rising and, thus, increasing consumption,”

President of the Brazilian Beef Industry and Exporters Association

�� BRAZIL

BRAZIL TO PROMOTE CATTLE BEEF IN MOROCCO AND DUBAI

��

SOURCE: WWW.HALALJOURNAL.COM

LE T TER

Salaam HJ team, The article “The High 5 Saga: Looking at the Bigger Picture” in your Nov/Dec issue highlights several problems that the authorities need to look into, or in other words, need to have a tighter grip on. First, it highlights the need for a comprehensive Halal Act that could protect both the consumers and the Halal producers. The consumers have their right for a fully Halal product, while the producers have their right to produce them, according to their own (mostly basic) understanding on Halal. So somebody needs to tell them what Halal, what’s Masbooh and what’s Haram. Surely this was just an unfortunate miscommunication. But I agree that news such as this is very damaging for the Halal industry, especially it being in such a nascent stage. Also, I agree that the authorities need to screen all the things that are being said in the presses. It’s just too confusing! Looks like the new Halal corporation has got their work cut out for them... Prof. Diana Abdul IIUM, via email

To further expand Brazilian cattle beef exports to the Arab market, the Brazilian Beef Industry and Exporters Association (Abiec) is going to participate in Gulf Food, a fair in the food sector in Dubai, United Arab Emirates, which is going to take place between February 19 and 22, and in a workshop in Morocco in the first half of 2007. “We are already great suppliers of cattle beef to the Arab market and are now being sought by Morocco, which is interested in importing Brazilian cattle beef. For this reason, we are going to participate in a workshop to promote our product among possible Moroccan buyers,” stated the president at the Abiec, Marcus Vin’cius Pratini de Moraes. This is going to be the first time that the organization, in partnership with the Brazilian Export and Investment Promotion Agency (Apex), is going to promote the product in the Arab country. Nowadays, Brazil exports a small volume of beef to Morocco. Among the international events that the Abiec participated in this year, two took place in Egypt and one in Algeria. In both countries, the organization promoted workshops for Arab businessmen and introduces the Churrascaria concept, a Brazilianstyle barbecue. According to Pratini, barbecues are a strategy that adds value to Brazilian beef. “We must show how the Brazilians eat meat and add value to the product,” he said. He also added that Brazilian beef is well accepted in the Arab market and that the country follows religious norms for Halal slaughter. | SOURCE: BRAZIL ARAB NEWS AGENCY, 13/12/2006

MALAYSIA

IIUM TO PRODUCE HALAL VACCINES FOR LIVESTOCK INDUSTRY

The International Islamic University Malaysia (IIUM) plans to develop Halal vaccines for use by the country’s breeding industry with the collaboration of Alnaam Vaccine Sdn Bhd. IIUM rector Prof Datuk Dr Syed Arabi Idid said Halal vaccines were hard to find in the world market as those produced overseas were not necessarily Halal. He told Bernama this after signing a memorandum of understanding with Alnaam Vaccine executive chairman Datuk Raja Azwanee Ariff on the cooperation. So far, only two local companies conduct research on Halal vaccines, namely the Malaysian Vaccine & Pharmaceutical (MVP) under the Agriculture and Agro-based Industries, and Alnaam Vaccine. Bernama was told that MVP could only meet five per cent of the need for vaccines in the country’s livestock breeding industry. | SOURCE: BERNAMA, 5/12/2006

JAPAN

PNS OPENS FIRST HALAL FAST FOOD RESTAURANT IN JAPAN

Perbadanan Nasional Bhd (PNS), through its subsidiary company, PNS Francais Sdn Bhd (PNSF), has opened its first Halal fast food restaurant in Shibuya-Ku, Tokyo, Japan. Known as MalaysianKitchen, the restaurant is one of the promoted businesses under the JomMalaysia programme, a network of franchises offering convenient Halal fast food restaurant services outside the country. First of its kind, the restaurant in Japan is located at the commercial district of Daikanyama. | SOURCE: BERNAMA, 18/12/2006

10 THE HALAL JOURNAL

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1/23/07 12:14:11 PM

MALAYSIA

RM200M SALES FROM HALAL INDUSTRY SHOWCASE EXPECTED

THE fourth Malaysia International Halal Showcase 2007 (Mihas 2007) is projecting RM200 million sales transaction during the five-day event, as participation from buyers more than doubled to 300 this year. The world’s biggest exhibition of halal products and services is also changing to a new location at Kuala Lumpur Convention Centre with the hope of attracting some 35,000 visitors of which about 35 per cent are foreigners. Last year, Mihas posted some RM168.3 million sales and 26,000 visitors. Over the last three years, the exhibition was organised at Mines Exhibition Centre. Mihas will be held from May 9 to13, after the World Halal Forum which will be held on May 7 and 8 at KL Convention Centre. “We are very excited to see the fourth instalment of Mihas this year, at a new location and larger participation from international players. I think our sales target is achievable because over the last two years, we have been able to achieve more than RM160 million in sales transactions,” added Mihas chief executive officer Mohd Shukri Abdullah. Themed “Expanding The Global Halal Frontier”, there will be not more than 514 booths at this year’s Mihas. Exhibitors will showcase halal products ranging from food, apparel, pharmaceutical, personal care and cosmetics, among others. Mihas is allocating RM1.5 million for its promotional activities this year. Shukri said under Malaysia External Trade Development Corp (Matrade), Mihas will aggressively promote itself overseas this year especially in Middle Eastern countries, India, China and UK. Commenting on Mihas’s take over by Matrade three months ago, Shukri said it is a good stepping stone for Mihas to help the Government promote itself as a halal hub and to ensure that Malaysia is noted in the international market. Asked if there could be a conflict of interest with the newly-formed Halal Development Council (HDC) since there are already more than 10 government agencies and associations involved in the development of halal industry, Shukri said HDC’s main focus is policy making. “Mihas’ direction, meanwhile, is to promote halal where we actively participate in Matrade activiiy overseas promoting these opportunities in Malaysia as well as local halal entrepreneurs,” he said. | SOURCE: BUSINESS TIMES, 22/1/2007 IRAN

IRAN ANNOUNCES SWITCH FROM DOLLARS TO EUROS

Iran announced it has ordered the central bank to use euros for foreign transactions and transform the state’s dollar-denominated assets held abroad into the single European currency. “The government has ordered the central bank to replace the dollar with the euro to limit the problems of the executive organs in commercial transactions,” government spokesman Gholam Hossein Elham told reporters Monday. “We will also employ this change for Iranian assets (in dollars) held abroad.” Elham implied that the move would apply to oil revenues from the world’s No. 4 crude producer, although it remains to be seen how this would be received by the market. “Foreign income sources and oil revenues will be calculated in euros and we will receive them in euros in order to put an end to our dependence on the dollar,” Elham said. | SOURCE: AFP, 18/12/2006 MALAYSIA

HALMART AIMS TO OPEN 100 OVERSEAS OUTLETS

MALAYSIA’S first integrated Halal retail outlet, HalMart, hopes to open 100 overseas outlets within the next two years, via franchises and a licensing programme. “We hope HalMart will be in operation in a few countries within the first year itself. We have received tremendous demand from overseas to open outlets there,” Glohex Consulting Group director business development Azul Shah said. Meanwhile, about eight HalMart outlets have been planned to open locally over the next two years. Total setup cost starts from a minimum RM3 million per store. | SOURCE: BUSINESS TIMES, 12/12/2006

“Through WHF and MIHAS, we hope companies in the OIC countries can begin to see themselves as part of the global chain,”

International Trade and Industry Minister Datuk Seri Rafidah Aziz

MALAYSIA

INTRA-OIC OUTSOURCING BOOST HALAL PRODUCTS OF MEMBER COUNTRIES

International Trade and Industry Minister Datuk Seri Rafidah Aziz said trade in halal products and services provide greater opportunities for business linkages among companies in the Organisation of Islamic Conference (OIC). She said such linkages can be established through trade in finished products and supply of services, as well as create and intra-OIC outsourcing potential for the companies. “This is possible when some OIC countries can provide halal raw materials and input for processing and manufacturing in other OIC countries, creating an intra-OIC supply chain with the obvious spin-offs and advantages,” she said. This could help to expand the current intraOIC trade which represents only 14.3 percent of the total global trade of the OIC countries, she told reporters after the joint launch of the Fourth Malaysia International Halal Showcase (MIHAS 2007) and the World Halal Forum 2007 (WHF 2007), here recently. Both events will be held at the Kuala Lumpur Convention Centre (KLCC) with the WHF 2007 from May 7-8 and MIHAS 2007 from May 9-13. Present at the event today were chairman of the World Halal Forum, Khairy Jamaluddin, Matrade chief executive officer, Datuk Noharuddin Nordin, MIHAS 2007 chief executive officer, Mohd Shukri Abdullah and Halal Industry Development Corp Sdn Bhd chief executive officer Datuk Jamil Bidin. “Through WHF and MIHAS, we hope companies in the OIC countries can begin to see themselves as part of the global chain,” she said. “We sourced from each other the input for halal industry. The same thing for non-food like pharmaceutical, toiletaries and so on. We can then trade with each other in terms of outsourcing,” the minister added. | SOURCE: BERNAMA 23/1/2007 THE HALAL JOURNAL 11

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1/23/07 3:30:14 PM

GlobalNEWS PHILIPPINES

SINGLE HALAL CERTIFYING BODY SOUGHT

The Philippines’ Halal industry needs a unified certifying body to boost its chances in the domestic and international markets, according to Dr. Tating Nani, Department of Agriculture Halal technical consultant, on the sidelines of a meeting here Thursday attended by some ulama (Muslim scholars). Nani noted the country has at least a dozen Halal certifying bodies observing different standards. They are accredited by the Office of Muslim Affairs and the Department of Trade and Industry. “When Halal certification is not credible, Muslim consumers will not trust the product,”he added, apparently referring to various standards observed by groups issuing Halal certifications. Thursday’s meeting was part of the effort to come up with a common Halal food certifying body in the country. Nani chided the present system, saying government must only recognize but not accredit the groups engaged in certifying Halal food products. The accreditation must be done by a single Halal council composed of ulama, which shall be recognized by the government, he stressed. | SOURCE: MINDANEWS, 8/1/2007

“When Halal certification is not credible, Muslim consumers will not trust the product,”

Dr. Tating Nani, Department of Agriculture of Philippines

MALAYSIA

MALAYSIA HAS A GREAT POTENTIAL FOR PAKISTANI EXPORTS

Malaysia has a great potential for Pakistani exports provided serious efforts are made to capitalize the enormous opportunities. This was stated by Vice President Federation of Pakistan Chamber of Commerce and Industry (FPCCI) Zubair Tufail in a meeting with Lt. General (R) Tahir Qazi, Ambassador-designate to Malaysia. He said that despite the fact that Malaysia was the biggest partner in the ASEAN Region, the bilateral trade was only $ 772 million, which was not reflective of the friendly relations between the two countries. He was of the opinion that the trade deficit being faced by Pakistan could be brought down considerably by promoting Pakistani products in Malaysia. He requested the Ambassador-designate of Pakistan to Malaysia to make strenuous efforts to promote Pakistani products. | SOURCE: PAKISTAN TIMES, 10/1/2007 U.S

NEW YORK BAN ON TRANS FATS COULD AFFECT MALAYSIAN FOOD EXPORTS

While New York sets the tone for a radical change in the law governing the use of trans fats in foods served in restaurants, Malaysian food exporters should brace to face stricter food standards on their exports to the United States, veritably the world’s largest food market. New York has become the first city in the United States to announce a ban on Tuesday on the artery-clogging artificial trans fats in foods cooked or used in restaurants. The ban applies to all, be it pizza shops, fast food chain, franchise stores, bakery shops and high-end restaurants. To enable restaurants and others to adjust to this requirement, New York’s board of health has allowed them a deadline to comply with this order. Expectedly, others are to follow suit soon. New York restaurants, including those serving Malaysian cuisine, will have to stop using artificial trans fats from all of its foods by July 2008. | SOURCE: BERNAMA, 7/12/2006

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Calendar of events 22-25 August 2007 FOOD & HOTEL MALAYSIA Food, Drinks, Hotel, Restaurant & Foodservice Equipment Kuala Lumpur Convention Centre Kuala Lumpur, Malaysia Malaysian Exhibition Services Tel: +603 4041 0311 Fax: +603 4043 7241 Email: enquiry@mesallworld.com www.foodandhotel.com 19-22 FEBRUARY 2007 GULFOOD Food, Hotel and Equipment and Salon Culinaire Dubai World Trade Centre Elly Habt Tel +9714 308 6081 Fax: +9714 318 8607 Email: elly.habt@dwtc.com www.gulfood.com Also during Gulfood attend: 21 FEBRUARY 2007 - AJMAN D WHF INDUSTRY DIALOGUE Going Global with Halal Int’l Halal Industry speakers. For more information: Email: salama@kasehdia.com 18-21 MARCH 2007 IFE Int’l Food and Drink Event ExCel London Tel: +44 (0)20 7886 3064 Fax: +44 (0)20 7886 3091 www.ife.co.uk 28-29 MARCH 2007 ISLAMIC FINANCIAL SERVICES BOARD SEMINAR ON LEGAL ISSUES IN THE FINANCIAL SERVICES INDUSTRY Surveys on Legal and Shariah Issues Kuala Lumpur Convention Centre Kuala Lumpur, Malaysia Ms. Ida Zakaria ida@ifsb.org Tel: +603 2698 4248 ext. 117 http://ifsb.org 7-8 MAY 2007 WORLD HALAL FORUM Premier Halal Industry Event Going Global with Halal Kuala Lumpur Convention Centre Kuala Lumpur, Malaysia KasehDia Sdn Bhd Tel: +603 6203 1025 Fax +603 6203 4072 Email: info@worldhalalforum.org www.worldhalalforum.org 9-12 MAY 2007 MALAYSIAN INTERNATIONAL HALAL SHOWCASE Expanding the Halal Frontiers Kuala Lumpur Convention Centre Kuala Lumpur, Malaysia Indah Profiles Tel: +603 2161 0001 Fax: +603 2162 0002 Email: info@halal.org.my www.halal.org.my 9-12 MAY 2007 FOODTECH 2007 Food, Equipment and Technology Karachi Exhibition Centre Karachi, Pakistan Pegasus Consultancy (Pvt) Ltd Tel: +9221 111 734 266 Fax: +9221 241 0723 Email: info@pegasus.com.pk 23-27 MAY 2007 THAIFEX World of Food Asia Impact Exhibition Centre Bangkok, Thailand Koelnmesse Pte Ltd Tel: +65 6396 7180 Fax: +65 6296 2771 Email: h.chan@koelnmesse.com.sg www.worldoffoodasia.com 12-14 JULY 2007 MIFB Malaysian Int’l Food & Beverage Trade Fair Malaysian Exhibition & Convention Centre Kuala Lumpur, Malaysia Expomal Tel: 603-8024 6500 Fax: 603-8024 8740 Email: info@expomal.com www.mifb.com.my

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between the lines Someone recently asked me how I saw the global Halal market developing. I replied that it was Words By like a big picture slowly coming into focus; the longer you watch it, the clearer it becomes. Blur HAJJ slowly shifts into clarity, new detail appears, and after a while you begin to get a real sense of ABDALHAMID EVANS how the picture is going to look. The trick is just not to look away.

Halal Industry Coming into focus You can view it a few ways. If you think in political and

geographic terms, you can detect several trends. Against the backdrop of the growing global awareness and curiosity concerning all things relating to the Muslim world, the interest in the Halal market continues to grow at an intense pace. The non-Muslim producing countries all want to maintain and increase their share of Halal exports to Muslim consumers. The Halal sector is viewed as a lucrative and highly attractive meat export market and the competition for marketshare is only going to increase, especially as new producers, like China, come into the picture. The Muslim food-producing countries, now recognising that while Halal certification may not necessary for domestic consumers (“We are all Muslim, so who needs it?”), export markets are increasingly demanding compliance to recognised Halal standards. Turkey, Pakistan and some GCC counties have now started the necessary steps to introduce Halal-certification for their export products, and it is expected that this will become a growing trend among other OIC countries. With the increasingly well-established Muslim populations in the West, both immigrant and indigenous, markets in the EU and USA are now coming into focus as attractive multi-billion euro markets for a whole different range of products from the traditional Middle-Eastern market fare. While many Arab families still like to buy fresh (and even live) produce and cook it at home, a third generation European Muslim family may well want to buy a Halal ‘meal-solution’ from Tesco and pop it in the microwave when they get back from the office.

f course, the supply chain does not pay much attention to politics and geography; for many corporations, nationality only refers to which language is needed to fill in forms. Corporations, owned in turn by other corporations, operate in a largely borderless global market, so against our geo-political backdrop, we can see the developments in the Halal market value-chain as another dimension of the same picture. In just the last few weeks, we have heard from an assortment of animal feed producers, livestock associations, major food and non-food

manufacturers, several ports, logistics providers, trackand-trace experts, auditors, certification agencies, retail giants, research specialists, bigname international consultants, investment bankers, PR companies, PhD students, training organisations, event organisers, testing laboratories, newspapers and TV stations, as well as several governments… all wanting to play a bigger role in the Halal arena. Everyone wants to get in the picture. You do not need to be a genius to know there is something going on; you just have to be awake. Like a game of musical chairs in reverse, every time the music pauses, there are more chairs around an expanding board-room table. As the major links in the supply chain line up with each other, smaller links see a role for themselves in-between, and so on it goes. Like a digital image, the clearer the big picture gets, the more pixels you can fit in. As we look down the road into 2007, there are several major signposts right in front of us. For example, this year The Halal Journal has again been invited to be a media partner for the Middle East’s biggest

Like a digital image, the clearer the

big picture gets,

the pixels you can fit in. food show, Gulfood 2007, but we will also be holding a WHF Industry Dialogue during it. This confirms our view that the Halal sector has finally found its place in this arena. This free one-day seminar on 21st February, is sponsored by Dubai food producer, Al Islami. Let’s see how many people come. I will tell you all about it in March, insha’llah. I remember when I was at Gulfood in 2004, suggesting to one local manufacturer that his egg-based product for the food service industry would do well with a Halal logo on it for international markets. “What for?” he retorted, “You want me to say ‘Bismillah’ before I crack the eggs?” It was a pretty good crack in itself, but we shall see who was right; the times they are a’changing. If you are visiting Gulfood come visit our Halal Journal stand in the hj lobby area outside Hall 2.

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MATRADE news

FUNDING OPPORTUNITIES Funds and working capital are actually plentiful in the market. One just needs to know where to look.

alaysian entrepreneurs as well as small and medium enterprises (SMEs) are eligible for at least two types of grants from the Malaysian External Trade Development Corporation or MATRADE, i.e. Market Development Grant (MDG) and Brand Promotion Grant (BPG). MDG is a scheme to provide a matching grant to assist SMEs undertake promotion activities for the development of export markets. BPG meanwhile, is a grant to develop and promote in the international market, brand names owned by Malaysian companies for products and services originating from Malaysia. The following are key salient features of both grants:

MARKET DEVELOPMENT GRANT (MDG) FORM OF GRANT Companies can obtain a 50% reimbursable matching grant on the approved cost of the eligible activities. The grant is available for one or more of the eligible activities. ELIGIBLE ACTIVITIES The followings activities are eligible for MDG: Participation in international trade fairs, trade and investment mission, specialised marketing mission, in-store promotion overseas, industry and professional related international conferences overseas, and meetings related to trade and other market access negotiations Preparation of promotional materials to develop export markets Initial cost of setting up office overseas for purpose of promoting exports of Malaysian product and services, seeking opportunity for outsourcing and subcontracting business, to undertake research on the market or to undertake and monitor implementation of projects and contracts Promotional activities undertaken with hypermarkets

and retail outlets overseas Participation in overseas international tenders Overseas cost of conducting export market research for the purpose of selecting new markets for new products or existing products, or gathering information on existing export market For women owned enterprise, additional eligible activities for MDG include participation in Malaysia Export Exhibition Centre (MEEC) at MATRADE and participation in export training seminars and workshops held locally. ELIGIBILITY CRITERIA Incorporated under the Companies Act 1965, with at least 60 per cent equity held by Malaysians For manufacturing and agricultural sector, having an annual sales turnover not exceeding RM25 million, or not more than 150 full-time employees For services sector, having an annual sales turnover not exceeding RM5 million, or not more than 50 full-time employees. (Financial service, tourism sector and property development are not eligible for MDG) For trading companies, must meet the following additional conditions:, among others, having annual sales turnover of at least RM 10 million or export sales of at least RM3 million (women owned enterprise are exempted from this condition); exporting Made In Malaysia products especially those manufactured by SMEs; and not more than 20 per cent of the company’s annual sales is derived from trading in primary commodities.

BRAND PROMOTION GRANT (BPG) FORM OF GRANT Companies can apply for either one of the following forms of BPG:A 100% reimbursable grant for the development and promotion of brand subject to maximum grant of RM1 million. SMEs are eligible to apply for the 100% reimbursable grant. A 50% reimbursable grant for

For more information contact MATRADE HEADQUATERS 7th Floor, Wisma Sime Darby, Jalan Raja Laut, 50350 Kuala Lumpur, MALAYSIA t +603 2616-3333 f +603 2694-7363 toll free 1 800 88 7280 e-mail info@matrade.gov.my

non-SMEs subject to maximum grant of RM2 million per company. A 100% reimbursable grant and a 50% reimbursable grant for SMEs only. (Maximum grant of RM 2 million per company). To encourage companies to promote the brand overseas, not more than 10% of the total grant approved should be spent on promotion of the brand in the domestic market. ELIGIBILITY CRITERIA Incorporated under the Companies Act 1965, with at least 60% equity held by Malaysians Company owns the brand and is the registered approved owner of the trademark For the Brand Promotion Grant focus market, company must own the trademark or at least have filed for the trademark registration in one of the markets. Annual sales turnover of not more than RM250 million. For 100% reimbursable grant:For manufacturing company, annual sales turnover must not exceed RM25 million, or with not more than 150 full time employees. For services sectors enterprises, annual sales turnover not exceeding RM5 million or with full time employees not exceeding 50. Product/services are already exported with at least 20% of the sales are from export. For companies that do not meet the 20% export condition, application may be considered based on export potential and commitment of the company to develop the brand into an international brand. APPLICATION PROCEDURE Companies are encouraged to apply for the grant at least three months before undertaking the activity for which the grant is required. Grant approved is based on the projected spending over the next two years. Application forms for both grants are available free of charge at MATRADE or can be downloaded at www.matrade.gov.my

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BY HAJJ ABDALHAMID & SALAMA EVANS

feature highlights

WORLD HALAL FORUM 2007

ASSEMBLING INTERNATIONAL PLAYERS TO DEVELOP THE GLOBAL HALAL INDUSTRY THE SECOND WORLD HALAL FORUM 2007 (WHF) will address the need to consolidate and harmonise ongoing efforts of all players so as to enjoy a unified focus and strength of Halal’s commercial applications. To be held on May 7 and 8, 2007 at the prestigious Kuala Lumpur Convention Centre, the two-day event will see invited heads of states and trade ministers, stakeholders of the Halal market, international experts from the fields of industry, science and Shariah law together with nongovernment organisations to listen, discuss and deliberate on topics that stand to shape the growth and progress of the Halal industry, globally. Outlining the scope of this year’s forum, Khairy Jamaluddin explained, “The theme of ‘Harmonising the Global Halal Market’ encapsulates the agenda for WHF 2007. It is time to consolidate and gather all players to work as a cohesive, united body, hence the topics covering manufacturing, trade and investment standards, shariah and science.” “Besides presentations by guest speakers, the forum will have a combination of plenary and breakout sessions, to better encourage the exchange of views and ideas, experiences and leading to possible ways to promote and strengthen the commercial applications of Halal in its entire value chain,” added Khairy. WHF 2006 successfully congregated over 730 delegates and media representatives from 27 countries to speak on one platform and for the development of one topic. The event secretariat will also be announcing the winners of the

EVENT TITLE

The 2nd World Halal Forum 2007 THEME

“Harmonising The Global Halal Market” Manufacturing, Trade & Investment – Standards, Shariah & Science DATE

7-8 May 2007 VENUE

Kuala Lumpur Convention Centre, Kuala Lumpur, Malaysia Halal Journal Awards during the event’s Gala Dinner, which will be graced by the Prime Minister, Datuk Seri Abdullah Haji Ahmad Badawi, scheduled to be held on May 7, 2006. The categories include the Best New Halal Product;

Most Creative Marketing Campaign; Best Islamic Financial Service or Product; Best Corporate Social Welfare Project; Travel & Hospitality; Best Halal-related Service Provider; Best Innovation in Halal Industry and Outstanding

Personal Achievement in the Halal Industry. WHF stands to address so many important topics that affect the onward development of the entire global Halal supply chain. What’s more, WHF will kick off Malaysia’s Halal Week between May 7 to 13, 2007, which will see the staging of another world-class event once WHF concludes. From May 9 to 11, the Malaysian International Halal Showcase or MIHAS 2007 will congregate Halal industry players and entrepreneurs to exhibit, trade and pursue business partnerships revolving around global quality Halal hj products and services.

For further information on the forthcoming WHF2007, log on to www.worldhalalforum.org or contact the WHF Secretariat at 603-6203 1025.

WORLD HALAL FORUM INDUSTRY DIALOGUE AT GULFOOD 2007

In conjunction with Gulfood 2007, a World Halal Forum Industry Dialogue will be held on 21st February at the Dubai World Trade Centre. With more than 2,000 companies from 70 countries lined up for Gulfood’s 12th year sell-out expo, the one-day interactive dialogue is organised with the support of Dubai’s leading Halal food producer Al Islami. With Halal becoming a stronger force in the GCC market every year, many companies are realising that Halal certification is a value-add to any product, and are looking to access new export markets with Halal goods. A team of speakers with years of hands-on experience in the Halal sector, from South East Asia, Middle East and North America will share their knowledge and experience with the audience at the WHF Industry Dialogue. Plus, there will be plenty of opportunity for open discussion sessions with the audience. Invited speakers include: • Hajj Abdalhamid Evans, Director of Research, The Halal Journal • Mustafa Jassem, Demand Manager, Al Islami, Dubai • Dr Habib M’Nasria, Director of Quality Control, McDonald’s • Falah Alizzi, Category Manager, Zabiha Halal, Maple Lodge Farms, Canada All the speakers were participants at last year’s World Halal Forum in Kuala Lumpur, and this is an excellent opportunity to spend some time with Halal industry experts whose experience extends right across the Halal market value-chain. Registration is free of charge at the door. For more information on this event and that of the hj World Halal Forum 2007, please log on at www.worldhalalforum.org or call 603-6203 1025.

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feature highlights

EVENT: The 12th Gulf Food, Hotel and Equipment Exhibition and Salon Culinaire or Gulfood 2007 Date: 19 – 22 February 2007 Venue: Dubai International Convention and Exhibition Centre, Dubai OUTSTANDING 40% GROWTH HIGHLIGHTS STRONG DEMANDS OF GLOBAL FOOD MARKET Region’s Largest Food and Beverage Event Attracts Key Industry Leaders From Across The World Gulfood, the most sought-after and important food and hospitality event for the Middle East, Africa and Indian subcontinent region, is set for yet another record showing in 2007. With 40 per cent increase in exhibition space, Gulfood 2007 will be the largest ever presentation in the event’s history. The 12th edition of show has been expanded to occupy an additional 15,000 sqm in the new Zabeel Hall, and all exhibition space is fully sold out. “As one of the largest global event of its kind, Gulfood is a pivotal platform for the food and hospitality industry. The phenomenal growth of Gulfood 2007 is a further affirmation of its topnotch reputation and standing in competitive international arena,” said Helal Saeed Al Marri, Director General of Dubai World Trade Centre. In testament to its mark of world-class excellence, Gulfood has recently received the

prestigious award of accreditation from UFI – the global association of the exhibition industry. Gulfood 2007 brings together more than 2,000 companies in the industry from over 70 countries, and will welcome a host of new national pavilions and countries. Exhibitors from countries such as Bangladesh, Colombia, Ethiopia, Georgia and Latvia will be taking part in Gulfood for the first time, and national groups from Chile, Latvia, Ireland, Syria and Brazil will stage their inaugural presence at the trade fair. “Strategically located in an environment that reflects the internationalisation of the food and beverage market, and in view of the ongoing surging demand for imported and pre-prepared food on a worldwide scale, Gulfood 2007 provides the essential business interchange for buyers and sellers seeking to penetrate the regional market,” added Al Marri. The definitive role of Gulfood in bringing together the world’s food producers, manufacturers and distributors was evident at the 2006 show, which hosted more than 32,000 trade visitors from over 145 countries. Dubai’s position as the world’s third largest re-exporter and strategic hub for markets across Middle East, Africa, India, Pakistan, Europe, Asia and the Americas, also reinforces hj Gulfood as a must-attend event for the industry.

EVENT: Kuala Lumpur International Islamic Finance Expo (KLIIFEX 2006) and 3rd Kuala Lumpur Islamic Finance Forum (KLIFF 2006) Venue: Putra World Trade Centre, Kuala Lumpur Date: 27 – 29 November 2006 “GREAT SUCCESS FOR A GLOBAL EVENT” The 3rd Kuala Lumpur Islamic Finance Forum (KLIFF 2006) held recently in conjunction with the Kuala Lumpur International Islamic Finance Expo (KLIIFEX 2006) at Putra World Trade Centre was touted as a great success when it attracted more than 200 participants from all over the globe. Based on feedbacks received, most of participants commented that with wide range of speakers among scholars, academicians and practitioners, topics discussed were well covered and well researched. Given such experienced speakers and learned audience, participants had good discussions and discourses during the three-day conference.

The organisers, AIBIM and CERT also held the annual Islamic Finance Award 2006 during the Gala Dinner at Dewan Merdeka, PWTC. More than 10 award categories have been established with the objectives to recognise, reward and encourage works that lead to the promoting of outstanding achievements and performance in the fields of Islamic banking and finance by the key players in the industry globally. Among the notable recipients of the award include Sheikh Saleh Kamel, chairman of the AlBaraka Group, Saudi Arabia, who received AIBIM’s Excellence Award (International), while Hj. Mustapha Hamat, CEO of IBFIM, Malaysia received the local category of the Excellence Award. Second Malaysian Finance Minister Tan Sri Nor Mohamed Yakcob and Datuk Zamani Abdul Ghani, Deputy Governor of Bank Negara Malaysia were also present as guests of honour.

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PRE-REGISTER ONLINE AT www.gulfood.com

The region's most important industry event Gulfood 2007 - The 12th Gulf Food, Hotel and Equipment Exhibition and Salon Culinaire

19 - 22 February 2007

Information correct at time of print. Details subject to change without prior notice.

Dubai International Convention and Exhibition Centre

Organised by

• Do business with more than 2,000 exhibitors from 70 countries • See exclusive product launches • Visit 51 country pavilions featuring new and established exporters • Attend the the second Dubai International Food Safety Conference • Watch over 1,000 chefs from around the world compete in the Emirates International Salon Culinaire

For further information please refer to our website

www.gulfood.com

TRADE AND BUSINESS VISITORS ONLY strictly no children

Supporting Association

advertorial

HALAL IN IMT-GT

Living up to its True Potential

IMT-GT

- the very abbreviation that people in Indonesia and Malaysia are not familiar with, yet it directly involves their lives. IMT-GT is the abbreviated title of Indonesia-Malaysia-Thailand Growth Triangle Development Project, which is a trade and social development collaboration among three closely-connected countries within Southeast Asia region. This trade area is designated in the shape of a triangle imposing on Indonesia, Malaysia, and Thailand. On the lower boundary is the north of Sumatra Island in Indonesia, up through the western part of Malaysia Peninsula, terminating in the lower southern provinces of Thailand. This trade collaboration was named after its geographical shape with the vision to build up the economic and social growth in this area. Thus how it came to be known uniquely as ‘Growth Triangle’. The IMT-GT encompasses the collaboration in many different areas including transportation, infrastructure, logistics, energy, trade, customs, industry, agriculture, forestry and fishery, monetary management and investment, human resource development and labour mobilisation, tourism, information and communication technology. In the case of Halal food, it was allotted within one subgroup under ‘intra-trade’. It has been implicated as such for decades until recently when in November 2006 the Halal food issue has been expanded to cover both products - food and non-food, as well as services. This Halal issue then has been uplifted from a mere subgroup level to a main ‘Working Group’ within IMT-GT. The uplift and expansion of the Halal issue indicated progress of Halal development amongst member countries. When considering the lead country of this Halal Working Group one would

imagine that the Halal working group would conventionally be led by a big Muslim country such as Indonesia or the highly advanced Muslim country like Malaysia. Notably and most surprisingly, it is Thailand, a non-Muslim country that has obtained the accreditation and confidence to undertake such a historic leadership. This reflected the broadmindedness of both Indonesia and Malaysia and the unifying spirit within IMT-GT. IMT-GT: KEEPING AN EYE ON GROWTH The IMT-GT collaboration idea originated in Malaysia in early 1993 when the then Prime Minister of Thailand officially visited members of ASEAN. The Prime Minister of Malaysia brought up the idea and urged Thailand’s premier to discuss the IMTGT initiative with the then President of Indonesia to kickstart the IMT-GT initiative. In July 1993, the First Senior Officials and Ministerial Meetings between Indonesia, Malaysia and Thailand took place in Kuala Lumpur to officially establish IMT-GT. This economic collaboration aims for reduction of trade obstacles and limitations as well as acceleration of public-private partnership for growth and development in this region with an emphasis on private sectors as a key player. Since its inception, the IMT-GT region could be drawn from the Provinces of Aceh and Northern Sumatra in Indonesia, the states of Kedah, Perak, Penang and Perlis in Malaysia, and the Provinces of Yala, Pattani, Narathiwas, Satun and Songkhla of Thailand. The total population within

this triangle was then 20.9 million. In 1997, the Riau province of Indonesia was included and within that same year, the Business Councils joined IMT-GT as Joint Business Council or JBC and became the official partner of IMT-GT Meeting in late 1997. The structure of IMT-GT was arranged as six ‘Implementing Technical Groups’ or ITGs along with sub-ITGs. Indonesia later included the rest of Sumatra Island while Malaysia brought in the eastern and southern parts of the Malaysian Peninsula including Johor Bahru while Thailand included three more provinces namely Pattalung, Trang and Nakhon Si Thammarat. In 2006, the population under IMT-GT swelled to 80 million. Although it begun small and seemingly unimportant, IMT-GT today has became a significant trade forum covering a large area within Southeast Asia. Late 2006 saw the Royal Thai government endorsing six more provinces namely Phuket, Krabi, Phang-nga, Ranong, Chumpon and Suratthani roping up a total of 14 southern Thai provinces under IMT-GT. The economic strengthening of IMT-GT seems closer to its vision. GROWTH OF HALAL ACTIVITIES IN IMT-GT Halal activities started under IMT-GT as small projects within the Sub-ITG on Halal Food Industrial Estate (Sub ITG-HFIE), which was led by Malaysia. This belongs to the ITG on Development of Hinterland and Intra-trade or ITG-DHIT, which was led by Indonesia. In year 2000, the IMT-GT Ministerial

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Meeting agreed upon the adoption of ‘ASEAN General Guidelines on The Preparation and Handling of Halal Food’ or ‘ASEAN Halal’ established by ASEAN ad hoc Working Group on Halal Food Guidelines to be the guiding principles of IMT-GT Halal Food Guideline. By 2003, the Sub-ITG-HFIE Meeting in Alor Setar, Malaysia had proposed the concept of a common IMT-GT Halal logo, though unsuccessful. In 2004 however, the ITG-DHIT Meeting in Petaling Jaya, Malaysia reviewed its structure by terminating three Sub-ITGs and maintained the Sub-ITG-HFIE, Fisheries and Livestock Development. This Halal subgroup was later renamed as SubITG on Halal Food. The Meeting of Sub-ITG on Halal Food convened in Kuala Lumpur, Malaysia later that same year and it was agreed that KasehDia and The Halal Journal was to publicise the IMT-GT Halal activities. By October 2005, representatives from Chulalongkorn University, Bangkok, Universiti Putra Malaysia (UPM), and Institut Pertanian Bogor (IPB), Indonesia officially established the IMT-GT Halal Laboratory Network. The network was proposed in the Meeting of Sub-ITG on Halal Food at Nakhon Si Thammarat, Thailand and serially presented upwards, all within the same year, to the finalisation with endorsement of the Network at the IMT-GT Ministerial Meeting in Pekan Baru, Riau, Indonesia in November 2005. The implementation of Halal activities under Sub-ITG on Halal Food has grown up significantly. Nevertheless, in 2006, IMT-GT collaboration has undergone a significant review and was subjected to form a new roadmap and restructuring of the working

mechanism with the technical assistance of Asian Development Bank or ADB. Consequently, the six ITGs were duly terminated and transformed into five ‘Working Groups’. The ITG-DHIT was also terminated and the Halal activities under this sub-ITG automatically disappeared from the main focus. With this unexpected turn of events, the well-flourished activities in Halal trade were not clearly visible within the new structure. Thailand thus proposed for the adoption of the sixth Working Group on Halal Products and Services in the IMT-GT Ministerial Meeting in Petaling Jaya, Malaysia in September 2006. The rationale behind this is that the Halal trade issue has now expanded significantly, from food to pharmaceuticals, herbals, and other products as well as services. Malaysia also proposed the creation of a Working Group on Services and Indonesia the Working Group on Customs, Immigration, Quarantine and Security. The Ministerial Meeting then authorised the IMT-GT Informal Senior Officials Meeting (ISOM) to be held a few weeks before the ASEAN Summit designated at Cebu in December 2006 (later postponed to January 2007 due to monsoon attack). The ISOM took place as scheduled on 25 November 2006 in Cebu, the Philippines and it was agreed that the ‘Working Group on Halal Products and Services’ was adopted with Thailand being the lead country. This was greatly supported by Indonesia and Malaysia. Halal activities in IMT-GT have thus re-emerged as a full ‘Working Group’ status.

THE HALAL SCIENCE CENTER: SUPPORTING THE SUCCESS OF HALAL WITHIN IMT-GT The Halal Science Centre in Chulalongkorn University, Bangkok arrived into the Halal

POTENTIALS OF IMT-GT IN THE GLOBAL HALAL MARKET It was estimated that the size of the global Halal food market could be worth a staggering US$ 200 billion a year. If other non-food products and Halal services are to be considered, the figure will surely soar pass US$ 500 billion a year. Surprisingly however, Muslim countries and IMT-GT Members possess a meagre percentage of ownership within this highly lucrative global Halal market. Further economic collaboration and capacity building especially in science and technology is expected to pave the way for IMT-GT countries to begin profiting from this huge market in the years to come.

foray of IMT-GT since 2003 led by Dr.Winai Dahlan, then the Head of Halal Laboratory within the Faculty of Allied Health Sciences. He was authorised by the National Economic and Social Development Board of Thailand as the Head of the Thailand Delegation in the Meeting of Sub-ITG-HFIE in Alor Setar, Malaysia on 20 March 2003. Later that year, the Royal Thai Government endowed a significant budget to the Halal Laboratory to fully realise and establish the Halal Science Centre (HASCI) in Chulalongkorn University. For years HASCI has emphasised and implemented the initiatives to utilise science for Halal verification and accreditation and to become an inspiring thrust for Halal laboratory collaboration within IMT-GT consisting of HASCI-CU, UPM and IPB. This was agreed on 27 October 2005 and was endorsed by the Ministerial Meeting in a subsequent meeting on 15 November 2005. With due progress, HASCI had organised the First International Halal Science Symposium in Bangkok on 1-2 September 2006, which was honourably presided over by the Crown Princess Mahachakri Sirindhorn of Thailand. The second event was agreed to be held in Kuala Lumpur, Malaysia in 2007 and the third in Indonesia sometime in 2008. This clearly indicated that the influence of Halal science, which was originated and cultured under IMT-GT, is now ready to branch out into the global arena. THE HALAL JOURNAL 21

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Exclusive Interview with the Chief Executive Officer HALAL INDUSTRY DEVELOPMENT CORPORATION (HDC)

Elevating Halal as a Global Standard of Choice

The Malaysian government through various initiatives have shown determination to develop as well as capitalise from the highly lucrative global Halal industry. Among the most signiﬁcant step taken in this direction is the establishment of a private organisation directly responsible to attain the vision of elevating Halal as the preferred choice of global standard. Words By KAMARUL AZNAM KAMARUZAMAN

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he Government of Malaysia last year established the Halal Industry Development Corporation (HDC) as the main body to spearhead the development of the international Halal sector. Little is known about the full scope of the corporation as it is yet to be launched in the market. It was first introduced by Prime Minister of Malaysia Dato’ Seri Abdullah Ahmad Badawi in his annual budget speech and later on at the World Halal Forum in May 2006. But the fact that HDC has not been launched yet has not stopped the corporation from signing MOUs with other significant parties like the well known Arab businessman Sheikh Saleh Kamel, one of the founders of Islamic banking and president of the International Chamber of Commerce and Industry. This is probably a sign that HDC means business. The Halal Journal recently had a chance to conduct an exclusive interview with HDC’s newly elected chief executive officer, Dato’ Jamil Bidin to find out what can be expected from the corporation. Dato’ Jamil, who is now the new point man for Malaysia’s Halal initiative, has extensive experience within the financial industry and has held various high ranking designations including as chief executive officer at Putera Capital Berhad, vice president at Malaysian Resources Corporation Berhad (MRCB) and chief executive officer at Abrar Group International. Read on for what’s in store for the local and global Halal industry.

AS THE NEW CHIEF EXECUTIVE OFFICER OF HDC, YOU HAVE BEEN CHOSEN TO IMPLEMENT THE CORPORATION’S OBJECTIVES AND TO ENSURE THAT MALAYSIA’S HALAL HUB VISION GETS REALISED. WHAT ARE YOUR PLANS TO ACHIEVE THIS? “First of all, I would like to thank the Prime Minister, Dato’ Seri Abdullah Ahmad Badawi for his trust in me to spearhead HDC. I hope to be able to deliver my responsibilities as best as possible because this task means a great deal for Malaysians in particular and the Muslim society in general. “True, this is an immense responsibility that has been put on my shoulders. But it is equally imperative for all to realise that the corporation’s mission and vision can be realised. We have various factors that enable us to be successful. We just need to align everything and increase the level of working relationship between all parties related to the Halal industry in this country. “Malaysia truly has numerous advantages that we can rely on. For instance, the palm oil industry and all of its related downstream activities is just one of the industry that can resolve problems with the animal-based oil and fats industries which more consumers are starting to avoid. “We also have world-class seaports, airports, network of highways, railways and seaways that are indeed crucial in increasing the trade value of any given nation. Malaysia is also a global leader, as far as Halal certification is concerned, where our Halal logo and certificates are internationally recognised. We need to understand the advantages that we have. It is time we profit from all of these.”

“HDC should be viewed as an institution that has a more comprehensive and modern approach than what we normally would have undertaken before.”

WHAT ARE THE BENEFITS THAT CAN BE EXPECTED FROM THE FORMATION OF HDC BY THE HALAL INDUSTRY AND MUSLIM SOCIETY IN PARTICULAR AND MALAYSIANS IN GENERAL? “When the government announced the formation of a corporation that would be responsible for the development of the Halal industry, I can see that the development of this industry will not only happen in this country but it would also have far-reaching global effect. “On the local front, the Malaysian Muslim society in particular, along with the non Muslims, will be able to enjoy the highest level of hygiene for foods and consumer products, as the concept of Halal applies to many globally recognised standard and best practices, and maybe even more. “Apart from that, the agricultural industry is also expected to enjoy immense benefit from the formation of HDC. This in turn will spur developments within the rural areas as agriculture will prompt various competitive downstream activities. This will attract more investment inflows, which in turn would increase the income of local entrepreneurs due to the increased level of trade.”

WHAT ABOUT THE GLOBAL FRONT? WHAT KIND OF IMAGE WILL HDC PORTRAY TO THE WORLD? “HDC should be viewed as an institution that has a more comprehensive and modern approach than what we normally would have undertaken before. In developing the Halal industry in line with the needs of global society, HDC will work with various multinational giants including Nestl?, Carrefour, Tesco and McDonald’s since they are in tuned with the needs of global consumers in every segment of the industry that they represent. This is important for us to chart and outline the best possible direction for the Halal industry in line with our vision to elevate Halal as the global standard of choice. “Therefore, from a global perspective, we should have a clean, transparent and visionary image since all eyes would be trained on our efforts and achievements in this industry. THE HALAL JOURNAL

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The general public has also been made aware of our intention to become the global Halal hub, and for me, this is achievable. In terms of politics for instance, Malaysia has indeed spearheaded various key areas as opposed to other OIC nations and we are seen to be able to leave a more lasting impact to the development of Muslims worldwide.”

HOW WILL HDC HELP REALISE MALAYSIA’S VISION AS A HALAL HUB? “To ensure the effectiveness of our efforts in achieving the long term vision of becoming a global Halal hub, HDC has to rely on our existing strengths. For instance, all the efforts by the Ministry of International Trade and Industries spearheaded by Datuk Seri Rafidah Aziz are recognised and referred to by the HDC. Agencies under her wings, including MATRADE, MIDA and NPC, have long identified Halal as a viable industry and have successfully promoted Halal in the international arena. In this regard, the Third Industrial Masterplan’s (IMP3) outlined a comprehensive plan that is in line with the government’s wishes to make Malaysia a global Halal hub. “Coupled with Malaysia’s focus in making agriculture the nation’s third engine of growth, I feel that this (HDC) is truly a step in the right direction. It certainly goes to show how committed Malaysia is in realising the Halal hub vision. Within the agricultural sector, efforts that has been cultivated by the Ministry of Agriculture and Agro-Based Industries, under the helm of Tan Sri Muhyiddin Yassin, is also seen as building a very strong foundation towards realising Malaysia’s Halal hub vision.

“The single most important criteria for every company that wants to do Halal business today is a strict compliance to quality. Getting a Halal certiﬁcate is just a start; there are many other aspects that should be factored in.”

HALAL INDUSTRY DEVELOPMENT CORPORATION (HDC) IS THE FIRST OF ITS KIND, FORMED TO BE THE PRIMARY AUTHORITY TO SPEARHEAD THE DEVELOPMENT OF LOCAL AND GLOBAL HALAL INDUSTRY.

VISION TO ELEVATE HALAL AS THE STANDARD OF CHOICE MISSION TO REALISE MALAYSIA’S VISION TO BECOME A GLOBAL HALAL HUB S TAT E D R O L E S A N D R E S P O N S I B I L I T I E S

To lead the development of Halal standards, audit and certiﬁcation procedures in order to protect the integrity of Halal To direct and coordinate the development of Malaysia’s Halal industry amongst all stake holders – both public and private To manage Capacity Development for Halal producers and related service providers To support investment into Malaysia’s Halal industry To facilitate the growth and participation of Malaysian companies in the global Halal market To develop, promote and market a Malaysian Halal brand To promote the concept of Halal and related goods and services

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“Malaysia also has within it an asset that is not available in any other country, which is the Halal certificate owned by the government. The Islamic Development Department of Malaysia or JAKIM under the helm of Datuk Seri Abdullah Mohd Zin and assisted by the Malaysian Standards Department has successfully increased the level of awareness not just amongst Malaysians but also throughout the whole world on the importance of strong and trustworthy Halal standard.”

IN WHAT MANNER WILL HDC FORM A STRONG WORKING RELATIONSHIP WITH THE OTHER MINISTRIES? “We will form a core committee so that all opinions and viewpoints can be heard and relevant experiences are being taken into consideration, especially from the relevant ministries and government agencies, so that a solid foundation can be established for us to start working to achieve the intended objectives. It is imperative for us to get unwavering support from every relevant sector.”

IN YOUR OPINION, WHAT ARE THE FACTORS REQUIRED BY ORGANISATIONS TO PARTICIPATE IN THE HALAL INDUSTRY? “The single most important criteria for every company that wants to do Halal business today is a strict compliance to quality. Getting a Halal certificate is just a start; there are many other aspects that should be factored in, especially for those within the food industry aiming to penetrate the global market. Packaging and branding should also be world class, as with food safety aspects which should at least meet or surpass global industrial standards and best practices. At HDC, we will always try to find ways to help local Halal manufacturers rise up to that level.”

WILL THE HALAL INDUSTRY BE A MUCH EASIER INDUSTRY FOR LOCAL COMPANIES TO VENTURE INTO ONCE HDC COMMENCES OPERATION? “Actually, we are not trying to make the Halal industry an easier industry to venture into, but rather to make it more efficient. The global food industry is a very competitive industry as it is. So companies should expand their structure to become stronger and more competitive if they want to be successful within the global arena. Halal and all its encompassing processes can help companies in this regard. It can even open up exciting new markets for producers and manufacturers alike.”

From left, Dato’ Jamil Bidin, CEO of HDC, Tan Sri Dr. Syed Jamaludin, HDC Chairman, Mr. Michael Ong and Mr. Paul Yao of Intertek Group Plc. exchanging documents to signify their alliance.

MOU 1: HDC to Raise Halal Standard One of the stated goals of HDC is to find ways and means to further increase Malaysian participation in the global Halal industry. This can be achieved by adopting Halal as an all-encompassing standard that would take into account other established standards adopted within the global business circle. “In the past few months since HDC was established, we have been talking to the big players within the industry. Many comments seem to be centred on local players having problems meeting international requirements. We should be looking to understand the current demands of the market and to elevate the local Halal products to conform to the highest qualities. It is about producing what the market wants,” said Dato’ Jamil. ENTER INTERTEK The partnership with Intertek Group Plc., according to Dato’ Jamil, would enable HDC to come up with Halal standard guidelines and best practices that are comparable with other globally recognised standards. Currently a global leader in testing, inspection, auditing and certification of products, commodities and systems, Intertek operates

in close to 1,000 offices and laboratories in more than 100 countries worldwide, employing over 17,000 high-qualified personnel. Among their certification activities include compliance for ISO 9000, ISO 14000, GMP, WRAP, C-TPAT, BRC’s Global Food Standard, IFS, HACCP and a host of other globally recognised standards. HDC foresees that using the Intertek’s extensive knowledge and technology would also help make local Halal manufacturers more adept in garnering a bigger market share by producing quality Halal products. To help accelerate this development, Intertek has committed to invest 3 million Pound Sterling in building a Centre of Excellence for Halal testing and training in Kuala Lumpur. Aside from being a training centre, the institute will also house state-of-the-art testing laboratories catering for the Halal food industry. “To develop solid Halal products and services, we need a set of experts on the Halal standards and testing, and the first step is to educate consumers and retailers on the importance of Halal,” said Paul Yao, executive vice-president of Intertek Group Plc. “This Halal Institute will therefore assist the industry in innovating Halal products and services, institutionalising the global Halal best practices and guidelines, THE HALAL JOURNAL

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and provide training and education to the industry practitioners, research scientists, retailer and consumers,” he added. HARMONISATION OF HALAL STANDARDS Agreeing on one common standard for use by all 1.6 billion Muslims throughout the world is undoubtedly not going to be easy. In this regard, HDC will use an all-encompassing industry approach that can be used to address the industry’s Halal requirement instead of the needs of an individual community. Standard refinements for each community will come as and when the need arises. “When we talk about industry standards, we need to talk with the consumers and the retailers. We have assessed from our connections with these groups that what everybody is looking for is a kind of harmonisation in Halal standards that is acceptable globally and will facilitate global trade so that both the consumers and retailers would get the right product at the right quality,” said Yao. He also noted that there has been an increasing demand from their existing clients who are asking for an all-encompassing Halal standard, especially the retail industry in Europe. From the industry’s perspective, the benefits are limitless. A globally harmonised Halal certification system would help industries to expedite product development, assuring the consumers, reducing the number of multiple certifications and thereby compressing the supply chain cycle time. “This all-encompassing new industry guideline will not only be suitable for the Muslims but also the global consumers. The success of this project will also greatly depend on the stakeholders of the nonMuslim community throughout the value chain. Intertek’s role is to connect Halal to the non-Muslim business community beyond their expectations,” Yao added.

MOU 2: HDC Teams Up With ICCI ToTackle World’s Halal Mart In yet another significant milestone, HDC had formed an alliance with an OIC-linked private sector to tackle the world’s Halal market. Setting its eyes on Muslim countries within the Organisation of Islamic Conference, HDC has teamed up with the Islamic Chamber of Commerce and Industry (ICCI) that would see business matching and tie-ups with parties across its 57-member countries. The tie-ups could either be in the form of

From left, Sheikh Saleh Kamel, president of Islamic Chamber of Commerce and Industry (ICCI) puts pen to paper on an MOU with Halal Industry Development Corporation (HDC), represented here by its CEO Dato’ Jamil Bidin. Looking on is Malaysia’s Prime Minister Dato’ Seri Abdullah Hj. Ahmad Badawi.

vendors and purchasers, joint ventures, technology transfer, mergers and acquisitions or consortia, said Dato’ Jamil after the signing of a memorandum of understanding (MOU) between HDC and ICCI. Prime Minister Datuk Seri Abdullah Ahmad Badawi and HDC’ chairman Tan Sri Syed Jalaludin Syed Salim witnessed the signing ceremony held at the International Zakat Conference in Kuala Lumpur on November 25, 2006. Dato’ Jamil also said that the partnership marked a significant milestone that will steer greater development and progress for Malaysia’s rapidly emerging Halal industry. With Malaysia acknowledged as the global leader in the promotion of new initiatives and development within the Halal industry, the country is a natural focal point for Islamic investment fund looking to support Islamic projects. He added that the Halal industry could significantly boost the economic level in many Muslim countries as they stand to become primary producers and not just consumers of Halal products and services. “This collaboration is a ground-breaking initiative that stands to attract the muchneeded Islamic funds for the speedier development of this industry,” added Dato’ Jamil. Meanwhile, ICCI’s newly appointed president, Saudi

entrepreneur Sheikh Saleh Kamel, looks forward to this collaboration which he hopes would open up many new avenues for further networking, business matching and identification of potential Muslim companies within OIC to grow through such financial support. “The low level of trade and investment amongst OIC member countries has been noted and much discussed. It remains a difficult problem to solve. However, through this partnership, there stands to be greater incentives for Islamic funds to be channelled appropriately and specifically to Islamic projects that need such resources,” said Sheikh Saleh Kamel. “We have all the tools but what we need to do is to convert short term money into long term finance and investment,” he added. Sheikh Saleh, who is also the president of the Dallah AlBakara Group, is recognised as one of the pioneers of Islamic banking. The collaboration between HDC, entrusted to achieve Malaysia’s goal of becoming a global Halal hub, and ICCI, covers a vast spectrum of areas. These include sharing of research and information to better facilitate growth within the OIC countries and networking with key corporations, agencies and individuals within private and hj public sector organisations.

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A spectacular event that has everyone queuing up.... Malaysia's Official Food & Hotel Show

22 - 25 AUGUST 2007 Kuala Lumpur Convention Centre, Malaysia

WHY BE PART OF THE 9TH FHM 2007?

“A comprehensive exhibition like FHM 2007 is of great importance especially when the government is encouraging hotel and restaurant owners to help grow Malaysia's hospitality and tourism industry.” DATUK SERI TENGKU ADNAN TENGKU MANSOR MINISTER OF TOURISM, MALAYSIA

By reputation the country’s only trade exhibition for food, drinks, hotel, restaurants, food services, bakery equipment, supplies and retail industries. Create fruitful business relationships with some of the key players in the food, beverage and hospitality industries such as Lucky Frozen, Unilever Food Solutions, Hospitality Resources, NKR Continental, Lee’s Frozen, F&B Equipment amongst others. FHM 2007 is anticipated to be bigger by a forecast of 30% and is expected to attract some 700 companies including national / regional pavilions from Korea, Singapore, Taiwan and the USA. Supported by the country’s Ministry of Tourism and is held in conjunction with the region’s largest culinary competition, Culinaire Malaysia 2007 and the Asean Food Congress, which inevitably returns to Malaysia in 2007.

Incorporating :

Held In Conjunction With :

Official Airline :

Supported By: Chefs Association of Malaysia Ministry of Tourism, Malaysia

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www. f o od an d h o te l . c o m Please send me more information on exhibiting at FHM 2007. Please send me more information on visiting FHM 2007. For further information, please call / fax to : MALAYSIAN EXHIBITION SERVICES SDN BHD (58243-X) Suite 1402, 14th Floor, Plaza Permata, Jalan Kampar, Off Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia. Tel : +603 4041 0311 Fax : +603 4043 7241 E-Mail : enquiry@mesallworld.com Ref: Halal Journal

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Words By AMANDA SURIYA ARIFFIN

From Melbourne to Miami, manufacturers and marketers are combining commercial good sense with multi-ethnic sensitivity, to great benefit and profit.

Halal Products in

Multi-Ethnic

a Marketplace

n Melbourne, Australia, a controversy is brewing over McDonald’s recent introduction of Halal products at its Brunswick East and St Albans stores. Although store managers have claimed that the move has “pretty much doubled our sales”, some non-Muslim customers of the ubiquitous chain are not so happy. Reactions and demands include the right to “eat normal, ordinary food that hasn’t been blessed” (despite Church officials having issued statements that there is no biblical reason to avoid Halal food). The stores in question do not inform customers about the change at the drivethrough point, but rather, by a small sign inside. Significantly boosted sales and happy Muslim fast-food aficionados aside, not all customers are happy. But the sound of extra dollars ringing in the till must surely be a universal incentive to companies jostling for that competitive edge. According to Mintel, a UK consumer and market research firm, Halal meat makes up 11 per cent of all meat sales in the UK. A small figure, you may think, until you learn

that Muslims only account for 3 per cent of the entire UK population. And – this is worth chewing over – consumption on Halal products is not restricted to followers of Islam. Perceptions of freshness and hygiene with less toxins and bacteria are driving other demographic groups to consume more Halal meat. It may seem optimistic now, but the beginnings for this particular sector in the UK actually suffered a number of impediments according to Mintel’s 2002 findings - industry fragmentation among the network of independent retailers, inconsistent standards and regulation and import frauds, among other brickbats. Animal welfare advocates globally, too, have been embroiled in an endless debate over the merits and demerits, and cruelty factor, of

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Halal (and kosher) slaughter. It is a debate that does not promise neither resolution nor consensus in the near future, as the lines of division between religious observance, modern-day practicalities and animal welfare crisscross at multiple points. However, the Halal Food Authority (HFA) in the UK claims that the animal welfare argument is losing ground as

UK Halal production to be stepped up, those brands currently endorsed under HFA certification range from Aldi, Asda, Sainsbury’s, Devro (a casings manufacturer), the Faccenda Group, Hamer International and Linden Foods, among many others. A rough count of Halal butchers in the UK by the HFA was last pegged at approximately 3,000,

Travel

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Consumption on Halal products is not restricted to followers of Islam. Perceptions of freshness and hygiene with less toxins and bacteria are driving other demographic groups to consume more Halal meat. more transparency on Halal practices is being achieved. Encouragingly, the UK meat industry is taking notice of the potential of Halal, prompting many mainstream manufacturers, wholesales and retailers to sign up for Halal certification. And although HFA spokespersons say that there is plenty of room for

though this is likely more an underestimate, and on one East London street alone one may find as many as 31 Halal butchers. But there are stronger calls for Halal production to be increased from an economic standpoint. One of these is that increasing exports of Halal products would benefit the farming and

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Business owners simply now need to do the math, and know this niche market may no longer be as niche in the future. processing industries, while simultaneously elbowing out some questionable imports. From the consumers’ point of view, as more and more Muslims are demanding convenience foods, there is a strong argument in favour of heading into or increasing production of chilled, packed or canned Halal food. Of course, full traceability and certification are essential in marketing these products, but this sub-sector is very promising. One such enterprising provider – MFA Cash and Carry, which supplies the Robert Halal meat range – showcased its canned, chilled and frozen products at the London Halal Exhibition during the World Food Fest. Organic Halal food is another subsector worth exploring – and dare we say it, commercialising – with suppliers in the UK targeting product launches by the end of 2006.

t yet another end of the spectrum for Halal products in a Western, multi-ethnic market is Halal catering. Reports say that chefs are consulting the HFA daily, and British Airways are now serving HFA-certified meals onboard. Niche sub-sectors within a niche market? Perhaps, but the evidence is quickly refuting this. For younger generations of Muslims, there is an emerging market for even Halal fast food and western-inspired convenience options. Chilled ready meals are moving faster off the shelves than frozen meals, and this includes non-meat-based ones too, according to HFA’s research. A company that claims it is the only fullyintegrated Halal chicken producer in the UK, Crown Chicken (based in East Anglia), is planning to increase its Halal production to two-thirds of total trade. It is currently processing one third – that’s 10,000 birds – to Halal specification weekly, and company representatives assert that ‘only minor alterations were needed to convert the site for Halal production’. It merely required a reorganisation of what Crown’s people were already doing, and to ensure the slaughter line was manned by Muslims.

According to its head of sales and marketing, the Halal market “is a small niche market but it was the right size for our company and it was an available niche.” Multinational brand giants such as McDonald’s and Nestle are also currently being urged to use their expertise of operating and trading in Muslim countries, to promote Halal foods in the UK. The emergence of Halal Chinese restaurants across the country is also an encouraging sign, says HFA. But all these signs need help: they need to tap in to the opportunity that is mainstream big-budget advertising, and also the implementation of a standard logo or sign across all product bands and sectors that will give Muslim consumers the assurance of the authenticity of the Halal products. And it is at this juncture, that the economics of marketing Halal products no longer becomes a question of mere economics, which may explain the trepidation or anxiety of companies pandering to the Halal marketplace in an economy that is predominantly non-Muslim. In Miami for instance, the number of Halal food options is growing steadily in tandem with the growing Muslim community. A decade ago, access to Halal food was so limited that Muslims in South Florida had to resort to hand slaughter or vegetarian meals in order to comply with Islamic dietary rules. But local Halal resources have now improved to fulfil the demand from the 130,000-strong Muslim community in South Florida. Among these Halal options are some 50 area restaurants and grocery stores that sell Halal items. Nationwide, according to the creator of zabihah.com, a site that reviews Halal outlets, the number has grown from 300

outlets in 1999, to 3,500 today. Restaurant owners recently added Halal meat dishes to their menus as they realise why customers were avoiding the meat dishes before. Diversity is an asset, and makes good business sense, especially more so in this age of overwhelming choices opening to a sea of informed, educated consumers. The potential importance of Halal food to a non-Muslim economy cannot be underestimated when one considers that Halal food trade was valued at approximately USD150 billion in 2000, and 30 per cent of the worldwide Muslim population reside in Asia alone.

onsumers in emerging economies are becoming more affluent and are seen to be moving towards Western-style convenience foods. Proximity to Muslim markets such as Saudi Arabia, Indonesia, Brunei and Malaysia is an advantage for exporters such as Australia and European countries which face an exciting opportunity to become processing centres for Halal foods, especially when one considers the availability of Halal raw materials and ingredients. If projections of the growth of the Muslim population yearly are correct – at 2.9 per cent - then the potential for growth in the Halal food trade is indeed tremendous and not one to be ignored, especially when annual total world population increase is a mere 2.3 per cent. That would mean – for exporters and producers – that from a current market of 1.8 billion Muslim customers, there is opportunity to tap into the profitability of a market of 3.6 billion Muslim consumers in 24 years. Business owners simply now need to do the math, and know this niche market may no longer be as niche in the future.

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Halal Logistics

Orchestrating Model A prelude to a PhD on the Effective Control of Halal Supply Chains

ogistics expert Ir. Marco Tieman has been doing research in Malaysia with an objective to obtain insight into the control of Halal supply chains from a logistical point of view - managing and improving bottlenecks, defining a standard to design Halal supply chains, i.e. Halal Logistics Orchestrating Model. This research forms an important contribution to the development of a Halal Superhighway for Halal products. We hereby present the gist of his research.

1. INTRODUCTION The Halal market goes through a rapid expansion from both the production and retail side. On the other hand, international Halal gateways are being developed like in Malaysia and the Netherlands to better facilitate cross border flows of Halal products. As the integrity of Halal products becomes more important than ever, the logistics control plays a key role in facilitating the manufacturing, logistics and trade of Halal products throughout the world (Tieman, 2006). The Logistics Control function forms the heartbeat of any logistics system but is often overlooked by the industry as most companies are only concentrating on the logistics structure, processes, information and communication technology (ICT) and organisation. This article will discuss the Halal Orchestrating Model in greater detail. The Halal Logistics Orchestrating Model is a

straightforward and complete method to design and improve Halal supply chains. 2. A BRIEF BACKGROUND ON LOGISTICS CONTROL Logistics control is a model of the way the organisation controls the flows of goods and information. Amongst others, important elements in here are hierarchy in decision levels, type of decision making, positions of the Customer Order Decoupling Point (CODP) and level of coordination (Vorst, 2000). From a system perspective, the logistics control function plays a key role in managing the goods flows and

information flows in a Halal supply chain (Goor, 1992). The role of ICT is critical in here to track and trace the goods throughout the Halal supply chain and share information with all participants of this supply chain. 3. THE HALAL LOGISTICS ORCHESTRATING MODEL Conducting a balanced symphony requires vision. Only the conductor recognises the specific qualities of the players in his orchestra and knows how to weld these together into a harmonious performance. Like the conductor, the Halal logistics control determines how to get the best out of the specific logistics building blocks and how to merge these into a balanced logistics symphony. The Halal Logistics Orchestrating model provides an integral concept to realise a harmonious Halal supply chain. A sketch

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of this model is shown in the Figure 1. The starting point of any supply chains is to understand the product characteristics, the customer requirements and the markets. A supply chain for meat is very different from a supply chain of vitamin tablets. The product characteristics also determine if the logistics focus is on the reduction of handling costs, transportation and storage costs, or reduction of inventory. Certain Muslim markets require different taste, packaging, certification, etc. These elements have a major impact on the Halal logistics control, activities to be undertaken in the supply chain and therefore the components of the Halal logistics system. The Halal Logistics Strategy addresses the Halal logistics objectives, Halal customer service objectives, and a strategy map to realise the

Figure 1

Excellence in the Halal Logistics process means that the product of a process is completely as desired, namely Halal.

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�� formulated objectives. The customer service objectives are important to translate the logistic objectives to the committed logistics performance (in terms of time, quality, costs and flexibility) per customer group. This way, a link is created between logistics and marketing. The Halal Logistics Control is the heartbeat of the Halal Logistics Orchestrating Model, which provides a logistics planning and control at different levels, namely: 1. Strategic (logistics parameters); 2. Tactical (network planning & control); and 3. Operational (order management, goods flow management and resource management). For an effective and efficient management of Halal operations a planning and control blueprint is essential to cover the different functions and scenarios within the organisation. The Halal Logistics Structure is the foundation (centre) of the Halal Logistics System, which is characterised as supply chain structure per customer group with a clear CODP positioned to segregate downstream (customer order driven) from upstream (forecast driven) planning processes. A Halal Logistics Process is a range of activities that are then executed in a particular order and in a particular manner. Excellence

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in the Halal Logistics process means that the product of a process is completely as desired, namely Halal. An efficient and effective Halal Supply Chain needs a strong information system backbone. Halal Logistics ICT differentiates four important functions, namely: harvest estimates (for agriculture products like fruits, vegetables, herbs), quality information of the product (temperature, moisture level), order information (demand), and tracking and tracing (where is the product now, where is it going to and where did it come from, or the road it travelled). The Halal Logistics Organisation describes the people (competency) and its organisation structure (centralised or decentralised). The logistics operation is highly dependent on people and goes through different hands, which is different from,

for example, banking or the chemical production process. This means that much effort has to be put into the creation of a quality culture within the organisation and the creation of a quality standard that builds C4 (correct, consistent, complete and clear) procedures (Geijn, 2005). The Halal Logistics Performance Indicators are important for the continuous improvement of the Halal logistics operation. The Halal logistics control manages the processes. The performance of the processes is being measured by the Halal Logistics Performance Indicators. These performance indicators provide the so-called “cockpit” of the conductor to manage the logistics processes. The key performance indicators can best be defined from four perspectives, namely: quality, time, costs, and flexibility. The actual set of indicators for one company is unique and depends on product characteristics, customers and markets, Halal logistics processes and the Halal logistics control itself. 4. CONCLUSION Much has been published on Logistics and Supply Chain Management. When addressing the logistics and supply chain of Halal products, the effective control of Halal logistics supply chains is more complex than traditional logistics operations and supply chains. This therefore requires a more comprehensive method to design and improve Halal supply chains. The Halal Logistics Orchestration Model can provide a clear and complete method to do this. hj References

• Geijn, R. Van, Natural Business Excellence, 2005 • Goor, A.R. van (1992), Integraal customer service concept, tijdschrift voor Inkoop & Logistiek, jrg. 7, 1991/10, pp. 40-46, Kluwer (in Dutch) • Tieman, M. (2006), Realising Malaysia’s Potential in Global Halal Logistics, The Halal Journal, September-October 2006 • Tieman, M. (2006), From Halal to Haram, The Halal Journal, November-December 2006 • Vorst, J.G.A.J. van der (2000), Effective Food Supply Chains – Generating, modelling and evaluating supply chain scenarios, Wagening University, Ph.D. Thesis, the Netherlands, 56-57

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OPPORTUNITIES IN

REGIONAL POULTRY INDUSTRY Malaysia has the highest per capita chicken consumption rate in the world and yet it still imports chicken from Thailand, which is the region’s second largest poultry producer after Indonesia. Agri industry analyst Irfan Sungkar takes a look at opportunities available within this region, as far as chicken is concerned.

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lthough the 1997 economic crisis badly affected the poultry industry in many ASEAN countries, present market indicators seems to suggest that things are back to pre-crisis level, even growing at a much faster rate then before. By virtue of its population base, Indonesia has the largest production of chicken meat compared to the five selected ASEAN countries. Production in 1996 was close to 900,000 MT but declined to 621,000 MT in 1997 due to the economic crisis. However, total chicken meat production in Indonesia shot up to 1.4 million MT as of end 2005. Production in Thailand reached its peak in 2003 with the total production volume of 1.23 million MT but the avian influenza outbreak and lower export volume spiralled the production to 878,489 MT in 2004, although it grew by about 10 per cent to 950,000 MT in 2005. In contrast, Malaysia, with a total population of only 26 million, produced approximately 913,700 MT chicken meat products annually. Despite this however, Malaysia appears to be highest in the region in terms of per-capita poultry production. And quite deservingly so, as Malaysia has the highest per capita chicken consumption rates in the world at 34 kg/annum. According to FAO, the daily per-capita protein intake from consumption of chicken in Malaysia was 12.9 gram in 2004. Thailand meanwhile is the second largest with 4.1 grams/day followed by Philippines with 3.4 grams/day. Vietnam has the lowest intake of about 1.7 grams of chicken meat protein per day. IMPORTS OF ‘LABOUR-INTENSIVE’/ PROCESSED CHICKEN MEAT PRODUCTS

Malaysia in general is self-sufficient in meeting the country’s demand for chicken meat, with the exception of importation of processed chicken meat products for additional processing by the domestic meat processors. This is mainly for export purposes and the balance for local consumption of further processed, high valueadded chicken meat products such as chicken nugget, chicken burger, chicken frankfurters and many others. As an example, in 2003, Malaysia imports 37,253 MT of frozen semi-processed raw chicken meat products. This mainly consists of labour intensive chicken meat products where Malaysia does not have competitive position in producing it domestically. Examples of these products are frozen boneless chicken breast meat, frozen boneless chicken leg meat, frozen skinless-boneless breast meat, frozen fillet, etc. The total import amount and country of origin of these imported products depicted in Table 3. INTEGRATORS DOMINATE

The chicken meat industry in Malaysia is characterised by the strong presence of chicken integrators, involved in the entire supply chain of chicken meat production, processing and marketing. At present, there are approximately eight integrators, but five major integrators have a relatively larger production volume.

TABLE 1: PRODUCTION OF CHICKEN MEAT IN SELECTED ASEAN COUNTRIES (MT) COUNTRY 2001 2002 2003 2004 2005 1,012,950 1,218,490 1,257,510 1,339,760 1,400,060 INDONESIA MALAYSIA 725,687 808,667 812,835 877,066 913,700 PHILIPPINES 587,067 627,104 635,131 658,123 647,000 THAILAND 1,230,000 1,320,000 1,227,000 878,489 950,000 VIETNAM 307,971 338,402 372,721 316,409 321,890 TABLE 2: PER-CAPITA DAILY PROTEIN INTAKE FROM THE CONSUMPTION OF CHICKEN MEAT IN SELECTED ASEAN COUNTRIES, 2000 - 2004 PER-CAPITA DAILY PROTEIN INTAKE 2001 2002 2003 2004 (GR/DAY) 2000 INDONESIA 1.5 1.7 2.0 2.0 2.4 MALAYSIA 10.7 11 11.4 11.3 12.9 PHILIPPINES 2.5 2.6 2.8 2.8 3.4 THAILAND 4.2 4.4 4.7 3.8 4.1 VIET NAM 1.3 1.3 1.5 1.5 1.7 Sources: FAO Consumption database, 2006

TABLE 3: IMPORTS OF FROZEN CHICKEN MEAT INTO MALAYSIA, 2003 CODE DESCRIPTION COUNTRY QUANTITY (MT) VALUE (‘000 RM) Brazil 50.0 231.8 0207.14.0 Frozen edible cut and China 3,696.5 16,176.0 offal of the species Gallus Denmark 10,707.5 47,485.5 Domesticus / chicken Dominica 26.5 141.0 (Frozen Broiler Cut/Parts, France 2,428.3 10,144.5 such as Bone-in parts, 235.2 887.2 boneless skinless leg meat, Germany Hong Kong 26.4 132.4 breast meat, fillet, etc) Malaysia 68.4 488.3 Netherlands 4,674.1 19,335.3 Singapore 100.0 414.3 Thailand 13,520.9 69,439.7 USA 1,719.9 5,327.2 Total Imports of Frozen Chicken Meat 37,253.8 170,203.4 Source: External Trade Statistics 2003, MITI.

Major Malaysian integrators include: 1. Leong Hup Holdings: Includes Ayam A-1 Food Processing Corp. Sdn Bhd for production of further processed chicken meat products. 2. Charoen Pokphand Malaysia: Includes Pertanian Pertiwi Sdn Bhd for production of further processed chicken meat products. 3. Sinmah Poultry: Includes Sinmah Food Industries Sdn Bhd for production of further processed chicken meat products. 4. Dinding Poultry: Includes Dinding Poultry and Processing Sdn Bhd for production of further processed chicken meat products. 5. QSR Brands/ KFC Holdings: Includes Ayamas Food Corporation Sdn Bhd for production of further processed chicken meat products. Leong Hup Holdings and Charoen Pokphand Malaysia controls about 65 percent of parent stock production in Malaysia where the balance was imported from several EU countries, Canada, USA and Thailand. In terms of commercial chicken rearing, the above five

major integrators controls about 45 to 50 percent market share of the total chicken production in the country (about 530 million chickens or 913,700 MT in 2005). ADVANCED CHICKEN MEAT PROCESSING PLANTS

Malaysia has quite an advanced chicken meat further processing industry. Chicken frankfurters, chicken cocktail, chicken sausages, chicken frankfurters, chicken burgers and chicken nuggets that were exclusively imported before 1990’s are now locally produced. Major players, who are also integrators, invest heavily on brand names for their further processed products. It is estimated that the total volume of further processed products sold in 2005 was approximately 7.5 percent of the total chicken production (about 65,000 MT). Local processed products command about 95 percent of the market and it is difficult for imported processed products to compete on the basis of price alone. Currently, only imported chicken frankfurters (Doux, Emborg, Purdue Farms, THE HALAL JOURNAL

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etc) are allowed for selling directly to the consumers. Basically, the producers of these products can be categorised as producers as part of the integrators and the independent meat processors. These are listed in table 4. HIGH LABOUR COST

A major obstacle for increasing the competitiveness of Malaysian chicken meat products is labour. The industry is facing serious problems on the availability of consistent supply of semi-skilled labour to work in their manufacturing plants, not to mention high labour cost in Malaysia. Compared to the other ASEAN countries such as Indonesia, Vietnam and Thailand, Malaysia has a less favourable position in the labour market. The processing of many chicken meat products, especially semi-processed products is labour intensive in nature, and requires manual cutting, grading, sizing, deboning and deskinning. For example, the price of locally produced skinless, boneless breast meat at present is hovering around RM9.50 to RM10.50 per-kg while import from China is priced at only about RM5.50 – RM6.50 per-kg. Although mechanical processing methods such as through MDCM (Mechanical Deboning of Chicken Meat) do exist, most chicken parts still require manual handling. Labour is therefore one of the most important cost elements for the production of chicken meat products. The average labour cost for processed chicken meat products, which require less labour where mechanisation can be used, is about five to eight per cent. However, for products that require higher input of labour, such as satay and yakitori-based products, labour cost represents about 20 to 22 per cent of the total production cost. The effect of production cost of satay using locally produced raw materials vis-àvis imported raw materials is depicted in Figure 1. Therefore, as the labour cost in absolute terms is relatively high, Malaysian chicken meat products as a whole are not competitive. However, for further processed, high-value added chicken meat products as well as ready meals, composite products, convenience foods/ prepared foods, Malaysian products are competitive provided the labourintensive raw materials are allowed to be imported. The other reason is; should Malaysia wants to export to EU countries, the EC-approved company in Malaysia (there is only one EC-approved company for export of processed poultry meat products to the EU countries, which is Prima Agri Products Sdn Bhd) must source the raw materials/chicken meat from EC-approved chicken farms where Malaysia does not have any at present. Therefore, this company has to import chickens from EC approved farms (in Thailand, China, etc) to enable them to export to EU countries. COMPETITION FROM THAILAND

Having built its chicken industry since the early 1970’s, Thailand has substantial experience and has been able to maintain a relatively low cost of production. Thailand’s

IT IS VERY INTERESTING TO NOTE THAT ALTHOUGH INDONESIA HAS A MUCH LOWER LABOUR COST, THE PRICE OF FURTHER PROCESSED CHICKEN MEAT-BASED PRODUCTS IN INDONESIA IS MUCH HIGHER COMPARED TO MALAYSIA. FIGURE 1: DIFFERENCE IN PRODUCTION COST OF SATAY USING LOCAL & IMPORTED RAW MATERIALS (BONELESS-SKINLESS BREAST MEAT), 2004 ��

��

Source: Interview with several chicken meat processors, 2005

TABLE 4: MANUFACTURERS OF CHICKEN MEAT-BASED FURTHER PROCESSED PRODUCTS NO. NAME OF COMPANY BRAND NAME PRODUCTS 1. Ayamas Food Corporation Bhd* Ayamas, Jodi Freezer to Fryer (Supplier to KFC) 2. Dinding Poultry Processing Sdn Bhd* Ayam Dinding Freezer to Fryer 3. Sinmah Food Industries Sdn Bhd* Farm’s Best Freezer to Fryer 4. Ayam A-1 Food Processing Sdn Bhd* Ayam A-1 Freezer to Fryer 5. Pertanian Pertiwi Sdn Bhd* 5 Star Freezer to Fryer 6. Mac Food Services Sdn Bhd First Pride Nuggets, Burgers (Supplier to MacDonald’s) 7. Ramly Food Processing Sdn Bhd Ramly Freezer to Fryer & Burger Stalls 8. Dewina Food Industries Bhd Brahim’s Meat Ready to Eat & Sauces (Almost Half for Contract Manufacturing) 9. Prima Agri Products Sdn Bhd Baguz, Prima, Delicatessen, Le Sate Mas Convenience Foods, Sauces, Prepared Foods, Satay 10. F.Y Food Processing Sdn Bhd. FY Food, Freezer-to-Fryer & Cerrefour, etc Contract Manufacturing 11. Deluxe Food Services Sdn Bhd Gourmessa Delicatessen 12. Euro Deli Sdn Bhd Euro Deli Delicatessen 13. Purnama Burger Sdn Bhd Purnama Burgers, Frankfurters, Nuggets 14. Saudi Cold Storage Sdn Bhd Saudi Gold Frankfurters, Burgers, Nuggets 15. German Delicatessen Dew Fresh Delicatessen, Frozen Burger Source: Company and supermarket survey; Federation of Malaysian Manufacturers, ROC and Bursa Malaysia. * Note: The companies in yellow box are the integrators while those in blue box are independent manufacturers.

chicken companies operate on a much larger scale than the Malaysian companies, contributing to its better competitive position due to larger economies of scale. Saha Farms for example, among the biggest chicken meat companies in Thailand, is able to process close to 400,000 birds daily. This is about four times higher than the daily production capacity of Ayamas Food Corp., which s

among the largest in Malaysia. Thailand is one of the world’s leading exporters of chicken meat products with a high market share of cooked chicken meat products. Moreover, the impact of the bird flu incidence in Thailand has boosted the exports of cooked chicken meat products, although at the expense of raw chicken meat products (Table 5).

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THE IMPACT OF AFTA

As one of the founding members as well as an active member of ASEAN, Malaysia is bounded to the ASEAN Free Trade Areas (AFTA) agreement, which was implemented in 2002. Under the AFTA agreement, tariff rates will be reduced to eventually reach 0 in 2010. For products listed in the sensitive list (Malaysia placed whole chicken, among others, as product under the sensitive list), there are given terms of five years to be included in the Inclusion List, which is where the products under the sensitive list cannot enjoy protection as it enjoyed before. However, for chicken products, as well as other manufactured products, Malaysia has put almost all of chicken products in the very low import duty regime, even for non-ASEAN countries with the exception of sausages and related products where the import duty is maintained at 15 – 20 per cent for non-ASEAN countries and only five per cent for ASEAN countries (Table 6). Based on the survey undertaken in several AEAN countries, most of further processed products are relatively priced higher compared to Malaysia. In Indonesia, Vietnam and Thailand for example, one kilogram of typical chicken nugget was priced at about RM12 - 15), but it was only about RM7.50 – RM10.00 in Malaysia. Therefore, there is a lot of opportunities for Malaysian chicken meat manufacturers of further processed, high value added chicken meat products to venture or collaborate with companies especially in Indonesia, and even in Vietnam to penetrate their local markets. POTENTIALS IN INDONESIA

It is very interesting to note that although Indonesia has a much lower labour cost, the price of further processed chicken meat-based products in Indonesia is much higher compared to Malaysia. One explanation for this is that those products are mainly to cater to the upper segments (high-middle and high-class segments), which is why the manufacturers and distributors charged larger marketing margin for such products to be sold in the leading retailers in the country. In general, Indonesia offers great potentials for Malaysian chicken industry, due to several reasons: • The country has a very large domestic market base. With a population almost reaching 240 million, Indonesia offers great potentials as the present percapita chicken meat consumption is only about 4.0 - 4.2 kg annually. If within the next five years the per-capita consumption increases to 6.0 kg annually (an increased of 2.0 kg – 50 percent of the present level), the increase in demand would equal to half of current consumption volume, or amounted to an increase of 700,000 MT; • Labour supply is much better, while the cost is relatively low. High labour-intensive chicken meat products can be produced at a much lower cost, increasing the competitive level of the products within the export markets; • Indonesia needs foreign investment to provide employment for much of its workforce. Their BKPM

TABLE 5: THAILAND EXPORTS OF CHICKEN MEAT PRODUCTS, 1999 – 2004 YEAR FROZEN FROZEN TOTAL COOKED CHICKENS RAW CHICKEN 1999 203,200 68,500 269,700 2000 218,700 72,500 291,200 2001 320,780 117,020 437,780 2002 339,045 127,600 466,645 2003 388,930 156,800 545,730 2004* 75,000 180,000 255,000 Source: Thailand Broiler Processing Association, 2006 Note: * Estimated data.

TABLE 6: EXISTING IMPORT DUTY FOR MALAYSIAN CHICKEN PRODUCTS, 2006 HS CODE PRODUCTS EXISTING IMPORT DUTY MFN–WTO Member ASEAN CEPT 010511-010593 DOC, Parent Stock 0 0 020711-020714 Frozen Raw Chicken Meat 0 0 021090 Poultry: salted, in-brine, 0 0 dried or smoked 160100100 Sausages and related 15 5 products in airtight container 160100900 Sausages and related products 20 5 not in airtight container 0407 Fresh Eggs 5 2 040811000 Dried Chicken Eggs Yolks 2 2 3502 Chicken Eggs Albumin (Dried and Un-dried) 5 0 Source: ASEAN Secretariat: ASEAN CEPT Consolidated 2006

MALAYSIA HAS QUITE AN ADVANCED CHICKEN MEAT FURTHER PROCESSING INDUSTRY. CHICKEN FRANKFURTERS, CHICKEN COCKTAIL, CHICKEN SAUSAGES, CHICKEN FRANKFURTERS, CHICKEN BURGERS AND CHICKEN NUGGETS THAT WERE EXCLUSIVELY IMPORTED BEFORE 1990’S ARE NOW LOCALLY PRODUCED. (Investment Coordinating Board) offers generous incentives and allowances for foreign investment while streamlining related paperwork for approvals. CONCLUSION

Malaysia, with its present Halal food hub policy and through its chicken meat manufacturers, stands to reap the benefits of AFTA, including the benefits of investing in Indonesia. Several Malaysian companies such as Khazanah Nasional Berhad, CIMB Holdings, Leong Hup Holdings and Titan Group have already secured access to Indonesian market through reverse investment and it is currently paying off. When investing in chicken meat integrated farms with its manufacturing/processing plants, the output may be used

to supply the Indonesian market, to supplement the demand in Malaysia and especially for exports to the third countries. While trade liberalisation measures such as AFTA may affect the domestic chicken industry in Malaysia, these measures can offer significant opportunities for the industry. What the industry need is up-to-date market information, rules and regulations, consumer demand indicators, and tastes and preferences among others. Effective strategies should be properly crafted to reap the maximum possible benefits for the domestic chicken industry. Irfan Sungkar can be contacted at irfan@gfra-mal.com.

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fast track | ASIA

First International Halal Centre Planned in the Middle East

BY KAMARUL AZNAM KAMARUZAMAN

REALISING THAT Malaysian Halal-certified products are in demand in the Middle East and with the Malaysian Halal industry will soon emerge into the new era of market globalisation, two local companies are coming together to set up a wholesale centre in Damascus, Syria. The wholesale centre, aptly named the International Halal Centre (IHC), is set to be the first such centre in the Middle East. It is aimed to pilot market access for the Malaysian Halal entrepreneurs to expand into bigger economics of scale for business activities besides the foray into the Middle Eastern Halal market. With 90 per cent of Middle East’s population being Muslim, the region is undisputedly the biggest market place for Halal products and services. As such, the establishment of IHC would provide an excellent

“Aside from lower cost of everything, there are approximately 1.3 million rich Iraqis currently residing in Syria, and they are sending tonnes of food and other daily sustenance back to Iraq,” platform for many Malaysian entrepreneurs looking for a window into the global market, not to mention other global Halal players from around the world. “We expect IHC to become the focal business point for the Halal traders worldwide whereby the demand and supply are systematically matched to escalate with the progress of the global Halal industry,” said Shaifubahrim Mohd Saleh, chairman of Cosmoscape Sdn Bhd, whose joint venture with Apex Communications will see the establishment of IHC within

three to six months. Backed by the local Syrian authorities as well as the Malaysian government, IHC is to be facilitated with all the necessary infrastructures, logistical support, financial centres as well as other related services. On why Damascus was picked as their launching pad, Shaifubahrim explained that the city is like Dubai ten years ago. Lower rental and lower cost of living prompted them to pick the old city as their first base. A one-stop collection point centre will be established in Kuala Lumpur

before the goods are delivered to Damascus. “Aside from lower cost of everything, there are approximately 1.3 million rich Iraqis currently residing in Syria, and they are sending tonnes of food and other daily sustenance back to Iraq,” he added. The initiative will also expand to other cities within the region later. Being the first Malaysian company to embark on such initiative, Shaifubahrim believes that it is the best time for local Halal entrepreneurs to look beyond the Halal food industry as a kampung or village endeavour. “To date, there are about 50 companies who have expressed their interest to participate in the IHC. Currently, most of them are famous Malaysian food manufacturers but we also welcome new Halal products, both food and non-food items, regardless of business size,” he added. Cosmoscape has been involved for many years in bringing together Malaysian companies for promotional activities in Middle Eastern trade shows such as GITEX Dubai and Cairo ICT. Apex Communications meanwhile is an engineering-based company and a leading provider of technology and engineering products and services, with largescale project management experience. Halal producers are invited to participate in this venture. Please direct all enquires at +603-7874 4695 or email halal@cscape.com.my.

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fast track | ASIA

Meat processors push for better traceability in China SYSTEMS THAT TRACE MEAT from the farm to dinner tables are seeing strong interest in China as the meat processing sector grows and consumers become more concerned by food safety. Thorsys, an Australian company specialising in IT traceability systems for the food industry, says the larger Chinese meat processors are keen to step up traceability in their production chain, and they are also backed by the growing number of supermarkets in the country. The company, promoting its services at the China International Meat Industry exhibition in Beijing recently, says it is hoping to set up a trial project to convince the government to support the industry-wide push to traceability requirements. Such a move would be

a significant overhaul of the current systems, which often go no further than handwritten cattle tags and paper records. “The Olympics is helping the push towards traceability,” said Kent Matla, China representative for the firm. “With bird flu and other animal diseases on the rise around the world, food safety has become an increasing concern for the government.” Chinese meat production has grown rapidly in recent years driven by consumers with rising incomes. It now accounts for 71 per cent of the total meat production in Asia, although 80 per cent of the industry is still controlled by the smaller producers supplying wet markets and traditional outlets. However this is expected to change, as urbanisation continues, and more and

more consumers shop in supermarkets rather than markets. Dr Zhou Guangzhong, professor and vice president of Nanjing Agricultural University and chairman of the Chinese Society of Animal Products Processing, told the World Meat Congress in Brisbane this year that he expects large and medium meat processors to have 70 per cent of the market by 2020. These processors, such as Shineway and the Yurun group, often control the whole line, owning their own animals, the abattoirs and the processing business. This would make traceability systems relatively easy to install and explains the significant interest so far. Thorsys develops software that uses barcodes to track the life of a cow through to the processing stage and its

delivery to the consumer. “Everyone needs it and everyone wants it. But some companies might wait for the government to take a decision while others want to say they have it already, as a competitive edge,” said Matla. China is also keen to export high quality beef overseas but it will need to improve traceability to meet stringent requirements in export markets. Thorsys wants to set up a test project with one company as a kind of showcase for the rest of the industry, as well as the government. “I believe we can identify a trial project before the end of the year,” said Matla. Source: AP-Foodtechnology

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fast track | AUSTRALASIA

Championing the Cause for New Zealand’s Halal Slaughtermen BY HARIZ KAMAL

TO PROTECT THE HALAL INTEGRITY, the ‘farm to fork’ concept has been very much emphasised, to ensure that any form of contamination is prevented even before it could possibly occur. The process in which this is realised involves numerous steps and a myriad of middle men, from the time the meat is being slaughtered, right up to the way it is being cooked. Despite the lengthiness of the supply chain, it is the source of the meat which primarily determines its ‘Halalness’, of which, this process is carried out by none other that the people who slaughter the meat, or the slaughtermen. After all, if the slaughtering process does not qualify as Halal, then all the steps which follows be it logistics or packaging will be futile. Thus, the Halal slaughtermen are indeed Halal’s first line of defence – a vital component to help protect the integrity of Halal. With major Halal producers coming from non-Muslim countries, it is important to ensure that there are indeed qualified Halal slaughtermen in these countries. According to New Zealand Halal Union, a body established to ensure the religious and working rights of the Muslim slaughtermen in New Zealand, for each Halal certified factory, there are only two Muslim Halal slaughtermen, while the remaining workers are non-Muslims. The Muslim Halal slaughtermen therefore, are expected to carry out a much bigger role than their non Muslim colleagues. Apart from carrying the actual Halal slaughter, they are expected to ensure that the Halal carcass does not mix with the non Halal carcass at various stages, including at the slaughter house, in storage chillers or in the boning room (or cutting room). The Muslim Halal slaughtermen are also required to monitor the packaging, labeling and updating of daily records of Halal products to ensure that all Halal cartons are not mixed with nonHalal cartons. In a recent Halal Journal online poll, 31 per cent of the readers believe that there is still not enough qualified Halal slaughtermen within the market. Husain Benyounis from New Zealand Halal

Union further confirms this by explaining that the main reason why this is happening is because there is a serious lack of professional training for slaughtering of Halal meats. There is therefore a considerable need to set up a proper training program to produce qualified Halal slaughtermen. Clear and unified Halal regulations and guidelines are also required to govern the Halal processes beyond the act of slaughtering, or from slaughter house right up to packaging and labeling. “Our biggest hurdle is actually the lack of guidelines, procedures, standards or promotion in which we can follow. We can only rely on our own limited religious knowledge,” he said. According to him, the existing New Zealand trade legislations are not sufficient to protect the Halal products; hence any manufacturer can actually stick their own Halal label onto their products. He also laments the lack of local or international recognition on the significant role of Halal slaughtermen in non-Muslim countries such as New Zealand. Despite all these challenges however, Husain realise that the root cause of this problem is actually the lack of communication between

Halal slaughtermen around the world. “An effective communication would build a better understanding between all parties involved, as well as to ensure that the customers are getting pure, untainted Halal meat. Communication between the Halal slaughtermen and their mostly non Muslim factory management also needs to be enhanced,” he added. Despite these considerable setbacks however, the Union has actually undertook significant initiatives since its inception in 2004 to address the challenges. A Halal Bill is currently being introduced in which a feasibility study was carried out and once completed, it will be sent to the New Zealand parliament for endorsement. Through the establishment of the New Zealand Halal Union, Halal factories are now more aware about Halal requirements and are being kept updated on the employment and religious needs of their Muslim Halal workers. With this, the Union hopes for greater awareness by bridging cultural differences between the Muslim Halal workers and their respective co-workers and other local communities.

The New Zealand Halal Union recently established a dedicated website at www.halalunion.co.nz to disseminate and inform the public about their progress and development thus far. Since its launch in December 2004, the website has had a huge success, receiving more than 175,000 requests, of which 160,000 was within the last ten months. Meanwhile, to better facilitate their work, the Union hopes to be able to establish any form of partnership or collaboration from established Malaysian Halal institutions, or any other Halal partners throughout the world. Email them at info@halalunion.co.nz and show them some gratitude for the work they are doing.

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fast track | EUROPE

UK Company to Assist Tesco in

RM1B Halal Export

A London-based Halal food manufacturer has been roped in to help Tesco in their RM1 billion Malaysian Halal export to the UK. FREE WORLD TRADE has evolved drastically within the 21st century that countries and cultures alike are being brought together by their diverse pooling of resources. Nowhere is this more prevalent that in the new mega-deal which has already been struck between Tesco and the Malaysian government to export RM1 billion worth of Malaysian Halal products to the UK market. Helping Tesco to source and select suitable Halal products that appeal to the right target market in the UK, London-based Tahira Foods Limited - UK’s largest Halal food supplier – was roped in to provide local Halal expertise. According to its managing director Ghias El-Yafi, they have already contacted over 50 producers in Malaysia

When Tesco’s promotional Malaysian Week commences in March 2007, these items will form the core of the Malaysian Halal range. where 20 have so far been short listed. In accordance to Tesco’s requirements, who have jointly evaluated all facets of sourcing, scouting and profitability forecasts, a range of approximately 150 items have been selected. A team at Tesco, the Training, Legal and Technical Department (TLT), headed and comprised of food technologists, will take samples for the products and test them for food safety standards to make sure that it is in fact safe, hygienic and traceable. They will then audit the manufacturing processes

to make sure it satisfies the various safety standards, such as HACCP and GMP. The British Retail Consortium (BRC) also prefers that all products to have a Quality Management System in place, to make sure that all documentations are in order and there exist accountability and transparency for all products. Once BRC’s requirements are satisfied, the product will have automatic passport to go anywhere in the world. When Tesco’s promotional Malaysian Week commences in March 2007, these items will

form the core of the Malaysian Halal range. Many believe that most of the items will eventually pass Tesco’s test, solidifying the importance and influence of the Halal segment in UK. “The challenge is really exciting, which is in many ways, massive and unprecedented. The fact that this deal has utilised the strengths of the three experts in their respective fields is pivotal to immediate and future success of this partnership,” said Ghias El-Yafi. According to him, several factors validate their involvement in this partnership. For one, knowledge of the ethnic UK market, as well as an extensive distribution and customer network, supported by the authenticity of their Halal products. He added that with over 12 years of involvement in the European Halal market, their client list, which includes major supermarket chains, cash and carries as well as independent retailers, now forms their core of their distribution network, spanning the whole of Western Europe. “The buzz that will surround this will undoubtedly be frenzied but based on sales and general performance, the biggest sellers will force their way into the mainstream,” Ghias added.

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fast track | EUROPE

New High Nutrition Halal Baby Food Introduced

BABIES REQUIRE essential nutrients such as irons, minerals and proteins to aid their growth and development and a genuinely Halal baby food is certainly a pre-requisite for many Muslim mothers in this ever changing world. Realising that most meat-based, i.e. iron and protein rich baby foods up till now are not certified Halal, UK-based GEM Foods recently introduced a much awaited solution - Petit Gems Baby Food – a range of delicious high nutrition Halal baby foods. With many Muslim babies having to resort to eating mainly vegetable based diet for the lack of any high quality, tried and tested Halal baby food products on the market, this Muslim familyrun company from Coventry aims to provide children the best possible start in life. “The baby food range was created out of a personal desire to ensure babies within the family to have enough iron and protein within their diets. It was clear this was a major concern for many families who wished their children to eat Halal food,” said Dawood Ali, director at Global Enterprise Management Ltd (GEM). He added that medical research also confirms many Muslim babies in particular suffer from a lack of nutrients with their parents struggling to find proper baby food products that contain enough irons or proteins without compromising their religious beliefs.

“Demand for Halal certified products has definitely risen rapidly over the last years. In order to meet this demand, companies across the world are seeking authentic Halal certification to gain consumer confidence.” As a result, he said, many Muslim babies are weaned on a diet of egg custards and desserts, which could lead to children developing skin allergies such as eczema or suffering other related illnesses such as iron deficiency anaemia. Launch in Paris on 14th June 2006 at the World Food Market Exhibition, GEM Foods’ Petit Gems Halal Baby Food range is the only Halal baby food to carry the Halal Monitoring Committee (HMC) seal of certification, testament to their authenticity and manufacturing practices. HMC is a non profit making organisation that stringently controls the whole production process according to Islamic Shariah law. Established early 2003, HMC was set up to monitor, inspect, regulate and certify Halal products – especially within the Halal meat and

poultry sector - from sources to the consumer. They carry out thorough inspections, continuous checks, labelling and sealing of consumables, which are continuously monitored by HMC trained inspectors. HMC also provides the public with their reassurance of genuine Halal products. “Demand for Halal certified products has definitely risen rapidly over the last years. In order to meet this demand, companies across the world are seeking authentic Halal certification to gain consumer confidence. Having certification means you know your baby’s health and your religious preferences are taken into consideration without ever having to compromise your faith or your baby’s health,” added Dawood. He highlighted their finding from a recent survey that 80 per cent of Muslim mothers would prefer a HMC certified Halal baby food over other brands available. Petit Gems offer a wide range of tasty meals for babies such as Chicken & Vegetable Bake, Spring Vegetables & Lamb Tagine or Vegetable & Roast Beef. The range caters for 4-Months Plus and 7-Months Plus, and several of their intasting sessions has proven Petit Gems to be superior to many other products. For more info on Petit Gems, please log on to www. petitgems.com or email info@gem-net.co.uk.

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fast track | AMERICAS Thirty thousand miles above the ground you start to hear a familiar but unpleasant sound. It’s not the irritable sound of the planes turbulence; but the increasing sound of your stomach growling franticly. Then you start wondering why there aren’t any Halal meals on board, despite Muslims making up 25% of the world’s population.

Unmet Demand

- Halal Airline Meals in US BY SAKEENA RASHID

MANY MUSLIM TRAVELERS living in the United States are faced with this dilemma. The lack of Halal airline meals can turn a typical flight into an awful experience for travelers. Planning a trip can be a daunting task, and the cost and stress can quickly multiply. There aren’t many things that can make a person more irritable than traveling on an empty stomach. With an estimated 8 million Muslims (Cornell University Study) living in North America, this is clearly a consumer segment that is not being properly served by Western airlines. Though a small number of U.S. airlines may serve Halal meals or “Moslem Meals” as they call them, they are often few and far in between. You may also be disappointed to find that your “Moslem Meal” is usually always vegetarian and not a Halal meal containing

any protein or Halal meat. This can be an unpleasant experience for the Muslim traveler who is first; paying for an unsatisfactory meal and second, forced to order a vegetarian meal even though they not vegetarian. With the extraordinary technological advances the West has made, you’d think a simple Halal inflight meal would be effortless, child’s play even. So, how difficult would it be to make Halal airline meals more widely available in the U.S.? While not a sufficient effort, there are some attempts being made by U.S. based airlines to offer Halal meals. American Airlines (A.A.) has a policy of allowing in-flight meals to be purchased on flights in the morning, afternoon or evening that is three hours or longer. This does not apply to their Halal meals which are only available on international

flights. Information from A.A. website states that Halal “Entrees may contain fish or poultry from Halal sources. No pork, lard or alcohol is used in meal preparation. On Domestic flights, where Special Meals are offered, MOML (Moslem) meals are substituted with Vegan Meals (VGML).” Vegan diets are stricter than typical vegetarian guidelines but they exclude all animal products; including meat, game, poultry, fish; dairy products, eggs; animal byproducts and even honey are off limits. It’s important for Muslim travelers to be aware of the meal accommodations before boarding. If you’re traveling on a flight that may be several hours, you may want to take extra snacks along with you. Continental, U.S. Airways and United Airlines also offer a “Moslem Meal” within select markets that must be ordered

at least 24 hours in advance. American Airlines was the only website that I came across which offered a sample menu of your in-flight Moslem meal. U.S. Airways offers this option for special diets and allergy passengers on their website: “we encourage passengers to bring their own food items onboard the flight.” This may not always be the most convenient option for meals, but for snack items, it should be part of your travel routine. Shahed Amanullah is the founder of Zabihah.com, a popular website that allows users to rate and review Halal restaurants, markets and stores. The reviews cover U.S. and international establishments from South Africa, Hong Kong to the U.K. There is also a section on the website where users can rate and review Halal airline meals. I recently spoke with Mr. Amanullah and asked him if he’s noticed an increase in the demand for Halal airline meals in the U.S.? “Yes, recently I have noticed an increase,” he replied. According to Amanullah, typically if Muslim passengers are less than five percent of the flight then the airline will make their meals vegetarian. When you read through Zabihah.com on some of the comments from users about their experiences with airline meals, you may either laugh hysterically or feel sympathetic

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fast track | AMERICAS

With the extraordinary technological advances the West has made, you’d think a simple Halal in-flight meal would be effortless, child’s play even. So, how difficult would it be to make Halal airline meals more widely available in the U.S.? to them. Of the six U.S. airlines listed on the site, none fared very well with reviewers. Continental received the highest rating among U.S. airlines with a 3.6 out of a possible 5.0 excellent rating. One such reviewer remarked, “Just flew Continental from Houston to London. Excellent Moslem meal. They had hot chicken curry, vegetable, rice pulao, salad and all the rest. I was surprised at how spicy the meal was. It was just right! They only have Moslem meals on international flights. On long domestic flights (over 2hrs) they give a turkey sandwich (not Halal).” Continental did have a few complaints but most of the reviews were positive. Northwest Airlines had the lowest review of a measly 1.7 out of all the U.S. airlines that were rated. Six out of the nine reviewers gave Northwest only one star which denotes very poor service. Another Zabihah. com reviewer recalls his inflight meal experience with Northwest, “They forgot about our Halal meal. Flight attendant got nasty when I told him to take away the hot, steaming sausage from the kids. He argued that I should at least let them eat the veggies, and I had to explain to him “not as long as there’s pork sitting under their noses.” I complained to the airline about this, in writing, but they never responded. Guess that’s the last time we fly

with Northwest.” Another reviewer, also from Zabihah.com humorously expresses her dissatisfaction with her meal and offers up her personal solution, “Halal, kosher, vegetarian, lacto vegetarian (dairy) and Asian vegetarian all result in the same thing. It seems, in the new airline economy of meals: one half of a (small) pita bread filled with cucumbers, onions and (if you’re lucky) a slice of anemic

Traveling tips for Muslims When booking your domestic flight, you can always ask if your Halal meal will contain meat or if it will be vegetarian. Even if you are booking your flight online you can still contact the airline with questions about meal service and menu options. Ask what the menu is for your designated flight. If it’s a food you don’t like, then you know you will need to bring along snacks or your own meal to supplement what’s being offered. When traveling with food, it’s important to keep in mind the rules of the temperature danger zone. The basic rule in keeping food safe is to keep hot foods hot and cold foods cold. Bacteria in food will grow and cause illness when kept at temperatures between 41-140 degrees Fahrenheit. This is known as the danger zone and food kept between these temperatures for more than two hours should be thrown out. Cold foods should be kept at 40F and hot foods at 140F or higher. You can always ask the airline if they will store your meal onboard weather it needs to be kept hot or cold. If they will store it for you, it’s best to put a piece of masking tape on the lid of your container. Your name and seat number should be written here so any attendant will know who to give it to at meal time. If packing meals for children, you’ll want to keep in mind two things. You don’t want to pack anything that’s going to be really messy or potentially smelly during the flight. Tuna or egg salad sandwiches can be both messy and have unpleasant smells. A better option would be a peanut butter and jelly sandwich with animal crackers or cookies and a juice box. When traveling with small children (no matter what the distance), it’s always a good idea to keep snacks on hand. Taking along a couple of small plastic bags with pretzels, chips, baby carrots or sliced apples can help you avoid and mid air tantrum. Keeping these tips in mind and preparing for your flight far in advance should help you to have a more pleasant onboard dining experience.

tomato, served in some sort of “vinaigrette” that smells more like nail polish remover - UGH!. This is your meal. Their service on international flights is much better but the domestic “meals” are terrible. I don’t even bother anymore - just bring my own food.” The unmet demand for Halal airline meals could be a successful market for U.S. airline caterers to tap into. LSG Sky Chefs is a global leader in catering flight meals for numerous airlines. LSG produces in excess of 400 million in-flight meals per year. They are also a dominant caterer in niche markets like Halal. Their production location in Kuala Lumpur alone currently supplies 30,000 Halal meals per day to 26 different airlines. LSG has also set up dedicated Halal kitchens in Frankfurt, Germany and London’s Heathrow to meet rising demand. Their Heathrow local produces 66,000 Halal meals per week serving 210 different flights. Gate Gourmet is another international in-flight meal provider. They currently have Halal equipped kitchens in the Philippines and Hong Kong. It remains to been seen which of these two catering giants will be the first to setup a Halal kitchen in the US. Wholesale Halal meat suppliers are not hard to find and with the right production location, a U.S. Halal kitchen could readily supply all of the major markets. The growth of the Muslim population in the U.S. is a testament to rising demand for Halal. As Islam continues to grow in the West and Halal becomes more mainstream we can expect to see more options for Muslim consumers, including in-flight meals. Until Halal in-flight meals become available on all domestic U.S. airlines that provide meals, we should take a few basic steps when traveling.

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finance TRANSPARENCY IS THE BASIS FOR GREATER INGENUOUSNESS AND SHARED INFORMATION THAT CAN FACILITATE WORKING PARTNERSHIPS BETWEEN ISLAMIC BANKS AND ITS STAKEHOLDERS. IT COULD ALSO DEEPEN THE UNDERSTANDING OF PERFORMANCES, COMPETITIVENESS, AND RISK MANAGEMENT, EVEN PROMOTE INVESTMENT. NEEDLESS TO SAY, TRANSPARENCY IS CRUCIAL FOR ISLAMIC BANKS.

PROMOTING TRANSPARENCY in Islamic Banks Words By NAFIS ALAM & PROF. BALA SHANMUGAM

slamic banks operate on the concept of interestfree banking. Musyarakah (partnership) and Mudarabah (profit-sharing) are some of its basic products. Mudarabah financing involves projects managed by a client, in which the bank shares risks with the client. The bank act as a partner and is entitled to monitor, supervise and have access to books and records. As a consequence, the management of Islamic banks is often confronted with an ethical impasse when faced with a conflict of interest between shareholders and Mudarabah partners. In Musyarakah contracts however, losses are borne proportional to the capital invested. Here Islamic banks provide funds that are combined with funds of the enterprise. Profits are distributed in pre-determined ratios among partners. In light of the above situation, financial disclosures become of utmost importance from the view point of both the banks and the investors. Financial disclosures by means of financial statements have been the source of information for actual performance of financial institutions. Like conventional financial institutions, Islamic Financial Institutions (IFIs) also deals with money by means of deposit collections, safeguarding it, lending it to borrowers and investing in profitable and feasible projects based on Shariah principles. Given this importance, IFIs are obliged to be transparent by making sufficient disclosures to their investing account holders. Not only with regards to their own financial condition, as is the case with conventional banks, but also in respect of the management of trust money of depositors who are investing in accordance with Mudarabah agreements. The core of a strong Islamic financial system in any jurisdiction is a strong regulatory framework which ensures effective risk

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management practices, adequate financial disclosure and governance reinforced by a strong Shariah and legal framework. Under the Mudarabah principle, which is the most widely used principle in Islamic finance, there is a special need for disclosure by Islamic financial institutions to investors and stakeholders on how the funds are being managed, so as to provide a guarantee that the underlying business operations, the risk profile and the risk control mechanisms are in proper order.

f the purpose of accounting information is to serve the public interest, it follows that in an Islamic context, the ummah has the right to know about the effects of the operations of the organisation on its well-being and will be advised within the requirements of Shariah as to how this has been achieved. Accountability is thus interpreted as being, first and foremost, accountable to Allah through making information available to the public. Truthful and relevant disclosure of information is important, as other aspects of Islamic life. For example, while paying Zakat, the calculation requires disclosure of the worth of assets and liabilities in terms of the religious obligation to help the poor, for it indicates a Muslim’s capacity to do so. Full disclosure is necessary for predicting future obligations and assessing investment risks. Better financial disclosure leads to greater transparency and better supervision and regulation of the banking sector, hence leading to greater bank stability. In this regard, major global financial institutions like the World Bank, IMF’s Financial Sound Indicators (FSI) system, Financial Sector Assessment Program (or FSAP, a joint initiative between the World Bank and IMF), the Report on Observance of Standards and Codes (IMF), and Accounting and Auditing organisations for Islamic Financial Institutions (AAOIFI) have all emphasised the need for transparency and disclosure as one of the core components of bank stability. Like conventional banks, IFIs also possess some inherent risks. Some of the more major risks to which Islamic banks can become exposed to, are discussed as below in relation to the need for disclosure.

(I) CREDIT RISK Islamic banks face credit risks as a result of their profit and loss sharing and sales-based debt-creating operations. The general disclosure in the financial statements of IFIs, as required by AAOIFI standard FAS 1, covers the concentration of asset risks (in economic sectors and by geographical areas), distribution of assets in accordance with their respective period to maturity or expected periods to cash conversion, and disclosure of related party transactions. The main objective of proper disclosure is to assess the banks’ commitments toward its financial obligation. Disclosure related to credit risk items will keep bank users aware of the banks’ creditworthiness.

(II) LIQUIDITY RISK Liquidity of IFIs is normally good because of the greater concentration of their financing operations in self-liquidating short-term Murabaha financing and commodity backed placements with banks. However, there are major concerns

regarding their macro level liquidity. By practice, majority of IFIs keep compensating balances with other financial institutions and central banks. To meet or provide for the urgent liquidity needs, the respective counterparties and their balances are mostly not disclosed in the financial statements. Sufficient disclosure is needed in this regard to gauge the liquidity health of the bank which in turn will reflect the banks’ deposit structure and its future potential for loan portfolio expansion.

(III) INVESTMENT RISK Close scrutiny of financial statements of IFIs that have adopted the AAOIFI standards reveal that investment in shares and securities has been classified into marketable securities, related companies investments, investment in funds portfolios and term based (long or short) Mudarabah investments. It was observed however that IFIs do not disclose their Net Asset Value (NAV) of their investment in mutual funds or fair value information about their Mudarabah investments. Both of these types of investments are substantial in the case

Accountability is thus interpreted as being, first and foremost, accountable to Allah through making information available to the public. Truthful and relevant disclosure of information is important, as other aspects of Islamic life. of some IFIs and therefore limited disclosure in the financial statements signal the risks associated with such investments. IFIs can provide adequate disclosure in this regard. Information disclosure of IFIs can work very efficiently if we are looking from the investment point of view, as the disclosure will truly reflect the risks attached to those industry players, particular the bank. It will also be important to look from the depositor’s point of view, since the disclosure regarding loans, securities and money market operations can reflect the nature of the bank’s operation which in turn will show how much the bank is Shariah compliant. The degree of transparency also determine the bank’s funding cost to its risk-taking behavior. Transparency which arises from greater disclosure by banks reinforces the efforts of supervisors by encouraging market discipline. It also provides substantial benefits to the banks by giving them more efficient access to the capital markets as well as a broader range of counterparties. Greater transparency will further benefit the financial system as a whole, by reducing the doubts that might give rise to bank insolvencies. On the whole, better transparency provides an essential foundation to a more stable and efficient financial system.

THE HALAL JOURNAL

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Islamic finance update

MAYBANK BIGGEST ISLAMIC BANKING PLAYER IN ASIA PACIFIC MALAYAN Banking Bhd (Maybank)

Kanoo Group launches Islamic ﬁnance JV with CIMB

Yusuf Bin Ahmed Kanoo Holdings WLL (Kanoo Group) and CIMB Group, South East Asia’s largest investment bank, launched the CIMB-Kanoo Islamic Investment Company BSC(C) (“CIMB-Kanoo”) on 10 December 2006. The Kanoo Group and CIMB Group are equal partners in the joint venture. CIMB-Kanoo will market and distribute specialised Islamic investment banking products and services to the Middle East region, focusing on debt and equity capital markets, corporate banking, asset management and treasury services. The company holds an Islamic Investment Company licence granted by the Central Bank of Bahrain and will commence business on the 1st of January 2007. CIMB-Kanoo brings together the sterling reputation, strength, reach and presence of the Kanoo Group with the investment banking expertise, innovation and customercentric focus of the CIMB Group. The joint venture will be located in Bahrain, a major financial hub for the region. Source: Press Release, 12/12/2006

INCEIF To Assist Sri Lanka Produce Islamic Bankers

Malaysia’s International Centre for Education in Islamic Finance (INCEIF), which has been conferred university status after only six months in operation, will help Sri Lanka to produce Islamic banking and financial professionals, its chief executive officer Agil Natt said. Source: Bernama, 27/12/2006

TRANSPARENCY VITAL FOR ISLAMIC BANKING GROWTH

More transparency, stronger expertise and smoother transaction procedures are vital for the growing Islamic banking industry, Central Bank of Bahrain (CBB) Governor Rasheed Al Maraj said recently. He said that Bahrain’s policies over the years have borne fruit, making the country home to a large number of Islamic financial institutions, including 33 banks, 13 insurance companies and 88 investment funds. But there were still areas that need more care to improve, said Mr Al Maraj. “There is rising demand for Sharia consultants to monitor the activities of Islamic banks in the world,” he said. Mr Al Maraj also called for more training in this area and added that there should also be more attention paid to transparency of the reports of the Sharia boards. “This will help to improve faith in the Islamic banking institutions among their customers and remove any doubts that may develop,” he said. Source: Gulf News Daily, 15/1/2007

is the largest Islamic banking player in the Asia Pacific, Asian Banker Research found in its inaugural survey of the region’s Islamic banking institutions. Maybank, which is not a standalone Islamic bank, currently holds over US$6.4 billion (US$1 = RM3.52) Syariah-compliant assets through its Islamic banking window. This is about 50 per cent more than Bank Islam Malaysia, the biggest fullfledged Islamic bank and second largest player in the region. The survey, The Asian Banker Islamic Bank 40 (IB40), identifies and ranks 40 key players in the region by the size of their Syariah-compliant assets. Banks in only six countries within the Asia Pacific made it to the IB40 ranking - Malaysia, Bangladesh, Brunei, Indonesia, Pakistan and the Philippines. Malaysia led the pack with 17 institutions holding 73 per cent of the top 40’s total assets. Source: Business Times, 9/1/2007

IRAN’S BANK REFORMS UNDERWAY Iran has launched a massive

banking system reform, which will reportedly see a greater role of electronic banking and private enterprise in banking activities over the next few years. Seyyed Hamid PourMohammadi, deputy minister of economic affairs and finance, told Fars that the reform scheme includes amendments in 10 major areas, leading to higher attention to Islamic banking principles, electronic banking, financial transparency and bank privatization. The official said the ministry has set up five working groups to follow up issues related to developing electronic banking in Iran. Source: Iranmania.com, 16/1/2007

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For centuries, Asian merchants were renowned for their business acumen and foresight. As far as Islamic Banking is concerned, we haven’t lost our touch. At CIMB Islamic, we believe foresight is the key to capture latent opportunities. Perhaps that is why successful companies in Asia trust us – helping us become The Banker’s Islamic Investment Banking House of The Year 2006 and the world’s largest Islamic Bond issuer. So whether you are looking to the future or simply want to make your money work harder for you, CIMB Islamic is ready to think forward on your behalf. Bank on us to see beyond. Call +603 2116 1200 or visit www.cimb.com for more information.

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RM7 billion Murabahah Medium Term Notes Programme. (Lead Bookrunner)

Putrajaya Holdings Sdn Bhd Rantau Abang Capital Berhad RM10 billion Sukuk Musyarakah Programme comprising RM3 billion Commercial Papers & RM7 billion Medium Term Notes Programme. (Lead Bookrunner)

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FORWARD BANKING

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2007 JAN+FEB THE

HALAL

JOURNAL

LIVING

AN OTHER CUP BY YUSUF ISLAM DELECTABLE CUISINES AT AL NAFOURAH MEET THE MUHAJABABES CANADA: THE QUIET RICH MAN UP NORTH

In Brief YUSUF ISLAM CREDITS SON FOR RETURNING TO MUSIC

Yusuf Islam credits his son to reviving his musical career when he left a guitar lying around the family home. The Muslim convert formerly known as Cat Stevens, retired from music in 1978 to devote his life to religion. Last November however, he released his first album in 28 years after writing fresh new songs on his son’s guitar. Shortly after his conversion, Yusuf Islam had disposed of all of his musical instruments because he was advised that music contravened his faith. He recalls, “There’s a nice irony because I wrote a song called Father And Son, a song about the son running off to do his own thing. Now the story is about my son coming back and bringing a guitar into the house.” “A couple of years ago, one morning after prayers, his guitar was lying around. I picked it up and my fingers knew exactly where to go. I’d written some words and when I put them to music, it moved me and I realised I could have another job to do. Things just grew from there,” he added.

CD Review

AN OTHER CUP YUSUF ISLAM Polydor Records

Smooth, spiritual, hopeful. These are first impressions after listening to Yusuf Islam’s first offering since his last album Back to Earth in 1979. Almost three decades later with a life now fully devoted to Islam, he brings us An Other Cup, an album which took him two years of writing. The songs are generally about his faith, love and his desire to see a more just and peaceful world. If you’re a fan of his earlier work, then this is definitely a good addition to your music collection. Some say it might not be as slick as his greatest hits album from 2003, but the lyrics certainly offer a ray of hope and optimism in a time of utter chaos and uncertainty. Sit back and have another cup with Yusuf Islam.

THE HALAL JOURNAL LIVING

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browsing

Al Nafourah

REVIEW BY LILYANA AZIZ Le Méridien Kuala Lumpur, 2 Jalan Stesen Sentral, KL Sentral, 50470 Kuala Lumpur Tel: 603 2263 7888 Opening Hours: Lunch: 12:00 pm – 3:00 pm Dinner: 7:00 pm – 11:00 pm Daily Price range: From RM60 per person

“Al Nafourah is the essence of the Middle East …, a dining experience unparalleled in the Southeast Asia…This is a journey to a world of sensuality and mystique…” This was a quote from Le Méridien’s own Press Release, and that’s them being modest! It’s a place to impress your clients when walking thru the Moorish arches and into a contemporary Arabian Oasis, a truly exceptional place for special occasions. Some of the recommended, tried and tested Lebanese signature dishes include the classic Hommus - a puree of chickpeas mixed with tahini, lemon juice, olive oil and paprika, or the Warak Areesh, which is stuffed Grape leaves with rice and vegetable cooked in lemon juice and olive oil, for starters. The Lamb Shank, which is braised with seven spices and poached with cheese, garlic potato, and with Artichaux stew would be a sure hit for a main course, as well as the Sea Bass Scallops - caraway flavoured with beetroot whipped potato and finally a delicate lemon coriander as a sauce. The food presentation will equally impress you as well as the quality in taste. If you get a chance, say hello to the Head Chef; Ibrahim Khalil Hamam from Lebanon, the genius behind Al Nafourah.

Book Review MUHAJABABES MEET THE MIDDLE EAST’S NEXT GENERATION

BY ALLEGRA STRATTON CONSTABLE & ROBINSON LTD. REVIEW BY LILYANA AZIZ

A catchy title and a simple cover with the promise to meet the undisguised-new-coming of age Middle Eastern girl. Stratton attempts to “unveil” these “Mujahababes” to see just what make them tick. The author was once on the foreign desk at The Times, and currently a producer for BBC’s Newsnight, this might explain the one-way-enlightenment of her experimental voyage into the understanding of the Middle Eastern culture as media is almost always the centre of topic and tool for her grappling with realities in the Middle East. The original intention of this book was a study of modern life through the eyes of the Middle Eastern Women, but in affect it is through the eyes of Western woman looking in. This is an excerpt of a reader’s opinion from http://thinkotherside.wordpress.com. “The Middle East is a hotbed of change and revolution right now. It’s just a shame you don’t close the book and want to go there yourself.”- Amal.

SUPERMARKET WARS GLOBAL STRATEGIES FOR FOOD RETAILERS

BY ANDREW SETH AND GEOFFREY RANDALL PALGRAVE MACMILLAN • ISBN-13: 978-1-4039-1910-6 REVIEW BY HARIZ KAMAL

“As we all suffer from “infobesity”, those who draw insight from information give us a precious advantage. This book is rich with insight.” - Niall FitzGerald, Chairman, Reuters Ltd. If one ever wondered what goes on within the global food retail industry, then The Supermarket Wars would provide an incisive snapshot of the food retail industry. It explains the histories, current activities, and strategies of major international food retailers and analyses the factors underlying their successes and failures. The Royal Ahold story, which many would only be aware of its story from this book, was an example of the book’s incisive review of international food retailers. The book touches on issues such as why it takes a long time to become international and most importantly, why go international when it is difficult and not that profitable. It also reminds retailers not to be complacent; to keep up with the changing of tastes, investing in new technologies, finding new market sites, and coping with regulations, legislations as well as competitors, which would easily stretch the limits of most managers. Hence, The Supermarket Wars is a good book that gives a SWOT analysis on how to tap into the global food retailing industry. It gives insights on the successes of Wal-Mart in the US and also its struggle in Germany but still maintains that Wal-Mart as the Colossus (a whole chapter on this in Chapter 2). Apart from that, the book also studied, reviewed and analysed Carrefour, Tesco and all the other global retailing contenders. The authors, leading industry commentators Andrew Seth and Geoffrey Randall, identified the essential characteristics of a global strategy in food retailing and they included many compelling examples. In the later chapters of the book, they both focused on the future, potential and opportunities for retailers both local and international. All in all, this book tells us the who, what, when, why and how on the strategic scenario undertaken by global food retailers. For those in the retailing industry keen on branching out internationally, this book will be a useful guide to learn from the mistake of others, which also reinforced the words of Sir Isaac Newton, “If I have seen further it is by standing on the shoulders of giants.” 58 THE HALAL JOURNAL LIVING

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The delicious taste that’s Halal certified too.

It’s nice to know that F&N Sweetened Condensed Milk and Evaporated Milk products are completely Halal certified. So you’ll always feel good about their great taste.

For export enquiries, please contact: Export Department, Premier Milk (Malaya) Sdn Bhd 70 Jln Universiti, P.O. Box 19, 46700 Petaling Jaya, Selangor Darul Ehsan, Malaysia. Tel: 603-79526000 Fax: 603-79544653 E-mail: exportenquiry@fn.com.my Web: www.fndairies.com.my

PREMIER MILK (MALAYA) SDN BHD

country in focus

Canada The quiet rich man up north Compared with its peers in the Group of Seven (G7) rich-country club, Canada has never struck the world as an exciting place that is worth much discussion. This is strange, yet understandable. Tong Yee Siong takes a closer look.

ong overshadowed by its Number One neighbour, the United States, Canada appears at best to be an appendage in North America. Thus, many often overlook Canada’s potentials and actual strengths. For one, Canada is a massive country by area, the second-biggest in the world after Russia, and with such diverse geographical conditions, the country is well-endowed with mineral and agricultural resources. Canada currently is in an upbeat mood, lubricated by wealth. 15 years ago however, ballooning deficits and a prostrate economy made it look like a candidate for an International Monetary Fund (IMF) rescue. That would have been a bitter humiliation to a G7 member country. Against expectations, a Liberal government elected in 1993 turned the public finances around, so much so, that Canada is now the only big industrialised country to notch up consistent surpluses both in its federal budget, in its trade and current accounts. As a result, Canada has had the G7’s fastest growth rate for five years now, that’s almost three per cent in 2005. Unemployment is at its lowest levels for three decades, producing big gains in incomes, profits and tax revenues. Words By TONG YEE SIONG

COMMODITY BOOM The current rosy outlook is not a product of fiscal discipline alone. Canada has reaped advantages from the free trade agreement with the US that came into force in 1989, and later the North American Free Trade Agreement.

More recently, the economy has been supercharged by booming prices for energy prices and commodities, of which Canada has in abundance. China in particular, has a growing appetite for Canada’s energy, metals and chemicals. In fact, Canada is one of the few rich countries that has seen exports to China soar by 40 per cent in the past year. Such exports helped push Canada’s trade surplus to a near-record CDN$66 billion last year. Better still, with energy prices rising steadily, vast Canadian energy investments, like the so-called oil sands of northern Alberta, have now started coming on stream. Although Canada is already the biggest supplier of oil and natural resources to the US, those new unconventional resources in Alberta means that Canada now has the world’s second-biggest oil reserves after Saudi Arabia. Canada’s strength in energy and mining is reflected in its equity market: energy-related stocks have a weight of 44 per cent. Helped by the global boom in commodities, the

Toronto Stock Exchange has handsomely outperformed Wall Street in local currency terms. There are 53 Canadian companies big enough to make it into the Financial Times Stock Exchange 100 Index. In 1996, Canada had only one corporation in the world’s top 200 by market capitalisation. Today, it has seven. ‘UNITED COLOURS OF CANADA’ Another remarkable detail about Canada is its open-door policy. About a quarter of a million immigrants come to Canada every year. Uniquely in the rich world, a large majority of Canadians welcome immigration. This perhaps helps explain why Canada is increasingly becoming a “global talent magnet”, attracting mostly skilled Asians while the US – with 11 per cent of its population being foreign-born – is importing unskilled Latin Americans. Unsurprisingly then, that the leading sources of migrants to Canada in each of the past eight years have been the two countries at the top of many western businesses’

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list of growing markets – China and India. Many companies, both foreign and domestic, have spotted a benefit in Canada’s relatively skilled multicultural and multilingual workforce. For the US-based wooden fixture manufacturer Leggett & Platt, 40 per cent of its staff at the Canadian office were either born outside Canada or have immigrant parents. The company has turned to employees with Indian, Chinese, South Korean and Japanese backgrounds to spearhead sales and investments in their countries of origin. Immigrants have also offered one of the few sources of domestic retail growth for Canada’s five big banks since the federal government blocked them from combining or taking over each other in the 1990s. The banks have paid special attention to China, where they vie to sign up customers before they even set foot in Canada. AGRICULTURAL POWERHOUSE Over the past decade, Canada’s position as an agricultural producer and trader has become even more entrenched than ever. According to Agriculture and AgriFood Canada (AAFC), a government agency aimed at promoting Canada’s agriculture trade, Canada’s agri-food exports grew by 92 per cent while world trade increased only at a modest pace (see table). The US remained the largest market for Canada’s exports, absorbing over two-thirds of Canada’s agricultural shipments in 2002. At the same time, rising demand for food in Asia, thanks to higher spending power, also makes the region

look promising for Canada’s diversification of its export markets. In particular, Canada has witnessed significant increases in its exports of meat, prepared grains, vegetables and processed cocoa products. In line with Canada’s strategy to increase its value-added exports, the processed goods to bulk ratio rose from 64 per cent in 1993 to 79 per cent in 2002. Canada’s agri-food and seafood exports are high against other industrialised countries, raking in a trade balance of over CDN$ 9 billion in 2002. Overall, in 2001, Canada commanded a 6.1 per cent share of global trade in agri-food, placing it only after the US and European Union and ahead of Brazil.

TOP CANADIAN AGRI-FOOD AND SEAFOOD EXPORTS PRODUCTS 1993 VALUE Overall Tomatoes, fresh Milk and cream Margarine & like preparations Poultry Sauces and condiments Shrimps and prawns, prepared Honey Crab, frozen Chocolate & food with cocoa Bread, pastry, and cakes

2002 VALUE

GROWTH

15,896.7 8.3 0.3

30,544.5 274.2 8.3

92.1% 3,183.9% 2,423.4%

2.4 13.1

42.1 124.3

1,664.7% 851.1%

35.1

285.9

715.4%

14.0 15.1 154.2

110.2 87.9 757.4

689.1% 483.2% 391.4%

219.2

826.7

277.2%

280.1

1,037.5

270.3%

LEADING IMPORTERS 2002 COUNTRY

VALUE

SHARE (%)

USA JAPAN MEXICO CHINA BELGIUM ALGERIA UK S. KOREA HONG KONG TAIWAN TOTAL

20,632.2 2,882.4 772.0 512.0 376.8 359.5 332.8 294.5 259.4 206.0 26,627.6

67.5 9.4 2.5 1.7 1.2 1.2 1.1 1.0 0.8 0.7 87.1

Source: Statistics Canada. Value is millions of Canadian dollars. One Canadian dollar is about 0.86 to a US dollar.

Although Canada is already the biggest supplier of oil and natural resources to the US, those new unconventional resources in Alberta means that Canada now has the world’s secondbiggest oil reserves after Saudi Arabia. HALAL OPPORTUNITIES According to the Halal Food Products Market Report 2006 by AAFC, the Canadian domestic Halal meat market is estimated to be CDN$ 214 million. The 2001 Canadian census says that there are approximately 579,640 Muslims in Canada, constituting two per cent of the country’s total population. The average annual household expenditure on Halal meat is CDN$ 1,623. On average, Muslim households spend CDN$ 31 per week on Halal meat products, almost double the Canadian household meat expenditure of CDN$ 17 per week. This may have to do with

the difference in their diet: Muslims appear to be ardent consumers of meat and meat products, with feast days and celebrations that often include several different meat dishes, AAFC notes. In Canada, the primary Halal meat retail channel are small, privately owned Halal meat shops are located in larger urban centres. Each individual shop is responsible for acquiring its supply of Halal meat through local processors. There have reportedly been issues regarding the quality and Halal certification every now and then. Evidently, there are vast opportunities for specialised Halal

businesses, despite Canada’s dominance in meat products. An innovative producer and marketer may yet strike gold with products which Muslim consumers are confident of consuming in this affluent country. Canada is not only growing in numbers, it is also becoming highly diverse in its population and more accepting in terms of cultural integration. It is these elements which can provide opportunities most favourable for a growing Halal market. The Halal industry in Canada has great potential for growth serving not only the Muslims but also the hj non Muslims as well. 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.

Serimas Cooking Oil

Biomil Growing Up Milk

Here’s a product that utilises the leading edge of technology while promoting Halal at the same time. A prominent Malaysian scientist found that milk containing a special combination of Schuessler’s Tissue Salt. This would help promote healthy growth of dendrons and dendrites in a young and developing brain, giving it more capacity to absorb information. With added calcium and magnesium phosphates to promote a healthy physical growth, Biomil in essence is a complete Halal formula for your young ones. For more info, email info@biomil.com.my.

Ramly’s Fish Nuggets

Ramly, a name synonymous with quality Halal patties, have recently launched their latest product the Fish Nuggets. With so many chicken nuggets currently in the market, Ramly’s fish nuggets provide a delicious alternative for the consumers. Appealing to a broader range of people, the response so far has expectedly been promising. Naturally high in protein, the Fish Nugget can be purchased at most leading supermarkets and retail outlets. Adopting Halal, Clean & Quality as their business mantra, you can be sure that the product is just that. For more info, please log on to www.ramly.com.my.

From one of Malaysia’s major exporter of palm-based edible oils, comes a cooking oil that is specially-blended for temperate countries, MM Vitaoils’ Serimas cooking oil. It is ideal either for pan frying, shallow frying or deep frying and contains all the goodness of Vitamin E and packed with natural antioxidants. Free from unhealthy cholesterol and Trans Fatty Acids with no artificial additives or preservatives, Serimas is as pure and as natural as you can get. This ISO, HACCP, GMP and Halal certified oil has also won several prestigious awards. For more info, logon to www.mmvitaoils.com.my or email to enquiries@mmvitaoils.com.my.

Budz Frozen Coated Fruits

TW Food Industries would like to introduce their range of frozen coated fruit products under the Budz brand name, which currently comprises of three tasty varieties - banana, pineapple and cempedak, a native fruit that tastes similar to the related jackfruit and breadfruit but with a hint of durian. With no thawing required, the frozies can either be deep fried or oven baked, and makes for a quick and delicious snack to serve that unannounced guest. This JAKIM Halal certified product is available at all leading supermarkets around Malaysia and retails between RM3 – RM6. For more information, please email to twfi@streamyx.com.

Mu’min Toothpaste

Ambitious local manufacturer, Al-Meswak Mu’min produces a range of Halal and tayyib toothpaste with miswak extract since 1996. Marketed in Malaysia, South East Asia as well as in the Middle East, Mu’min toothpaste is ISO9001:2000 and GMP compliant, as well as Halal certified by JAKIM. Their all-Halal manufacturing processes consider every manufacturing detail from the Shariah point of view, from formulation to actual processing and packaging, as well as types of machineries and equipments used. Available in four different varieties including original mint, Junior for kids, whitening and for sensitive teeth, this export-ready, locally produced range of Halal toothpaste is available at all leading pharmacies and retail outlets. For more info, log on to www.halaltoothpaste.com.my.

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classified

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TO ADVERTISE > tel +603 6203 1025 fax +603 6203 4072 email info@halaljournal.com

1/23/07 1:28:58 PM

parting words AS A SUCCESSFUL MUSLIM HALAL PRODUCER, WHAT DO YOU SEE AS THE BIGGEST CHALLENGE THAT IMPEDES THE PROGRESS OF MUSLIMS IN THIS INDUSTRY? HOW CAN YOU TRANSFER YOUR EXPERIENCE TO THEM? The biggest challenge for many local Muslim Halal producers is in product promotions and branding. This should be addressed quickly if one is serious to compete within the global arena. Interaction with other players is therefore imperative. Only through mutual alliances and strategies, both in manufacturing and marketing, that Muslims in Malaysia can be able to compete with the rest of the big boys. They should therefore take up this golden opportunity to create various commerce and economic initiatives with other Halal players for the good of the ummah.

Local Halal Industry

HOW IS PRIMA’S HALAL HUB IN KUANTAN COMING ALONG, AND WHAT ARE YOUR PLANS FOR 2007 AND BEYOND? It is actually coming along fine. The Halal hub in Gambang will help create 70 new Halal

Welcomes HDC

Malaysian Halal industry players are still reeling at news on the establishment of the Halal Industry Development Corporation (HDC) as the main body to spearhead the development of the international Halal sector. One such player is Prima Agri-Products Sdn Bhd. Being the only EC-approved company for export of processed poultry meat products to EU countries, Prima Agri is a role model of a successful, local Halal manufacturer that has made it big on the global market. The Halal Journal caught up with it group chief executive officer Dato’ Jamaluddin Abdul Kadir, winner for the Halal Journal Awards 2006 for the Most Outstanding Personal Achievement in the Halal Industry 2006. He talks about his expectations of HDC and what’s in store for Prima Agri in 2007. THE CREATION OF HDC IS EXPECTED TO PUSH FURTHER THE HALAL INDUSTRY. AS A MAJOR MALAYSIAN HALAL PLAYER, WHAT ARE YOUR EXPECTATIONS OF HDC? HDC should translate the government’s vision of making Malaysia, a Halal food hub internationally. Areas that HDC should focus on regularly are approvals by the importing countries, examples of a workable Halal logistics, and examples of cool room facility in a non-Halal dominated market as well as marketing and promotions aspects of the Halal industry. Freedom and free flowing of raw materials and supplies for manufacturing should also be looked into to ensure competency. At the same time, HDC should assist in long term funding of projects and cost of marketing for the industry.

Only through mutual alliances and strategies, both in manufacturing and marketing, that Muslims in Malaysia can be able to compete with the rest of the big boys.

entrepreneurs and there will be indirect benefits to others related in the Halal industry, especially in agriculture sector as well as other raw materials. Our immediate plans for 2007 and beyond are to increase Prima Agri’s market penetration both domestically and internationally. In addition, we are also pursuing towards listing status. YOUR JOINT VENTURE WITH THE COMGROUP OF AUSTRALIA WAS AN IMPORTANT STEP IN THE DEVELOPMENT OF PRIMA AGRI. HOW HAS THAT VENTURE DEVELOPED, AND WILL IT HELP WITH FURTHER EXPANSION? Prima Agri’s products will benefit through accelerator success for the markets in which Comgroup Australia are currently present. More importantly, our joint venture with Comgroup has encouraged other established international companies to relocate their Halal manufacturing to Malaysia and we hope to secure several other joint venture deals in the near future. HOW IMPORTANT IS RND AND TRAINING TO PRIMA AND HOW HAS THESE HELPED THE COMPANY DEVELOP TO WHAT IT IS TODAY? Both training and R&D are extremely important components of Prima Agri’s activities. Without constant training and retraining, the staff might be complacent. For us, the staffs are given in-house training as well as external training either locally or overseas when the need arises. In terms of RND, we constantly work with our customers to develop new products and varieties, which is very necessary factor in the food service industry. hj

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MATRADE