The Halal Journal - May/June 2007 by The Halal Journal

| kasehdia.com | www.halaljournal.com | MAY+JUNE 2007 TM

Turkey Rising

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

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

SPECIAL ISSUE : WORLD HALAL FORUM 2007

Republic Developing its First Halal Standard to Tackle Markets

INVESTING NEW ZEALAND’S INSIGHTS ON SOUTH AFRICA’S IN CHINA HALAL POTENTIAL COUNTRY BRANDING HALAL STANDARDS HARMONISED

LIVING: OUR TAKE ON TODAY’S FAST FOOD CULTURE SALOMA THE TOURIST RESTAURANT ANOTHER VIEW ON IMMIGRANTS NATIVE DEEN & SOUND OF REASON

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World Port Europe

www.halaljournal.com

M AY + J U N E 2 0 0 7

contents 16} WORLD HALAL FORUM 2007 Chairman, host and delegates convey their expectations

28}

STARTING WITH A CLEAN SLATE:

THE RACE TO ESTABLISH TURKEY’S FIRST HALAL STANDARD

32} BRANDING HALAL

As safe, healthy and clean

36} TIPS FOR HDC

Country as a brand name and role of industry associations

44} CLUSTER APPLICATIONS FOR HALAL

The changing views of modern logistic

48} CORPORATE SOCIAL RESPONSIBILITY

The Halal way of nurturing society

54} FASTRACK ASIA

Halal movements in Philippines, investing in China, and Malaysia’s agri funding and SMIDEC

62} FASTRACK AFRICA

Three South African Halal certification standards merged as one

64} FASTRACK AUSTRALASIA

New president elected for AFIC

66} FASTRACK EUROPE

Turkish trade bridge extended into Asia Pacific

Image by Ephe Drin Istanbul, Turkey Cover image by Umur Dilek Istanbul, Turkey

79} 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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Ed’s Note FULFILLING OUR DESTINIES

“I know we are not going to have an easy path but if we all put our minds and efforts into this, and have faith in Allah, I’m sure everything will fall into its rightful place.” Selim Kinali

Regulars 08} QUIETLY SPOKEN The Power of Focus 08} GLOBAL NEWS A brief insight into events currently shaping the Halal industry around the globe + Calendar of Events + Online Polls and Letter. 14} BETWEEN THE LINES Halal Industry at the Cross-Roads 74} COUNTRY IN FOCUS New Zealand: Land of the Halal Rings!

What you have in your hands is not just another issue– it is the culmination of a year-long effort by many within the industry to continuously push the concept of Halal into the global mainstream agenda. What will be covered within the following pages are key issues and highlights that are not only of current concern, but which will also be brought forward and deliberated within the industry’s annual summit of Halal professionals, The World Halal Forum (WHF 2007). From the cover on establishing a Halal standard in Turkey, to the branding of Halal, to cues for HDC on roles of industry associations in different countries, as well as a look into cluster logistics for Halal and the importance of corporate social responsibility for the industry, this issue gives a glimpse into the direction of the global Halal market in years to come. For the readers attending either one (or both!) of the industry’s most important Halal market events, The World Halal Forum or the 4th Malaysia International Halal Showcase (MIHAS), we salute you for the role you can, and will be playing in the future of Halal. Either as a WHF delegate offering a helping hand in steering the direction of the global Halal economy, or as one of the exhibitors or visitors of the thriving Halal marketplace at MIHAS, each one of us have destinies to fulfil, within this arena that is pleasing to Allah (swt). The way forward for the global Halal industry will still take a lot of international coordination and perseverance of industry players, but with Allah’s grace, we are taking the steps now for the benefit of the ummah. Only He can unite people and make their differences fall away. In celebration of this annual gathering of the Halal industry, we proudly present to you our biggest bumper edition yet of The Halal Journal. Hope it surpasses your expectations. And if you have something to contribute, do not hesitate to contact us. A warm welcome to all the visitors to Kuala Lumpur! We look forward to meeting old acquaintances and making new friends, and hope May 2007 will be the month that will long be remembered within the annals of the Halal history. Assalamualaikum.

the Halal Journal team

Living 87} FEATURE COVER Fast Times At Malaysian High 90} BROWSING Saloma in Restaurant Review, Native Deen and Sound of Reaon in Music Review and Immigrants in Book Review. And there’s also a Web Review! That’s new...

:: T H E H E A R T O F T H 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.

94} SNAPSHOTS Giving credit where credit is due

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.

68} PARTING WORDS Selim Kinali - In the true spirit of Islam

We believe that the emerging global Halal market will be one of the great market forces in the coming decades.

92} ON DISPLAY Halal and good stuﬀ currently on the shelf

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EDITOR Jumaatun Azmi DEPUTY EDITOR Kamarul Aznam Kamaruzaman

KASEHDIA HALAL GUIDE SERIES

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

SUB EDITOR Amanda Suriya Ariffin

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

CONTRIBUTING WRITERS Irfan Sungkar Tong Yee Siong Marco Tieman Dina Zaman Mohd Adly Rizal Hazel Hassan Hisham

HALALfood KUALA LUMPUR 2007/08

RESEARCHERS Hariz Kamal Ruzanna Mohammad

DIRECTOR, RESEARCH & INTELLIGENCE Abdalhamid Evans

A G U I D E TO G O O D E AT I N G

PROJECT MANAGER Salama Evans GRAPHIC & DESIGN M. Zailan

Get your copy today!

DIRECTOR, SALES & DISTRIBUTION Nordin Abdullah

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

PUBLISHER

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Over 100 reviews of restaurants, cafes, food courts, bakeries and confectioners Descriptive photographs

31-2 Plaza Crystalville Jalan 22A/70A, Desa Sri Hartamas 50480 Kuala Lumpur, Malaysia tel: +6 03 6203 1025 fax: +6 03 6203 4072 email: info@halaljournal.com

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Maps for reference

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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 now at a book store near you or email info@kasehdia.com

4/24/07 2:30:14 PM

Finding time to

Focus

If you want to be the best you need to understand this concept - focus. It is a common trait shared by successful people from world champions in the sporting arena to world-beaters in the business arena. Each year in May the World Halal Forum and MIHAS make a large ping on the screen, everyone is talking about Halal, be it from the business perspective or Shariah, Halal has reached the top of everybody’s consciousness. No doubt it is all interesting but what is equally interesting is the effect of focus on a given issue, in this case Halal. From one point of view, what we are really seeing is actually the true power of focus. In a world where economic factors drive the leadership to make decisions that will bring the best results with the available resources, often the best approach is to focus on all of its efforts. Focus creates powerful attention from internal and external forces, which then leads to a critical mass and a tipping point, which in turn leads to competition and innovation. Focusing on something also makes it clearer. It is in this moment of clarity that good decisions can be made as to take advantage of what is on offer and to achieve a desired result. This May, let us all find the time to focus. hj

COMPILED BY HARIZ KAMAL

“It confirms Malaysia’s leadership as developers of Halal market expertise in such matters as standards, certification, research and market intelligence.” Tan Sri Dr Syed Jalaludin, Chairman, HDC

Mark Piet

Quietly Spoken

GlobalNEWS

MALAYSIA

HDC TO POSITION MALAYSIA AS PREFERRED DESTINATION FOR HALAL TRAINING

The Halal Industry Development Corporation (HDC) is set to position Malaysia as the reference point and preferred destination for Halal training to produce world-class Halal industry professionals in auditing, certification and industry best practices. Its chairman, Tan Sri Dr Syed Jalaludin Syed Salim, said today HDC is in the midst of designing programmes to develop its research, testing and training capabilities. As interest in the Halal market increases, he said, “our specific Halal expertise will be in high demand.” HDC’s task, he said, is to nurture and develop industry players to enable them to play an important role in the national economy. Syed Jalaludin said HDC has identified two specific areas, capacity building and Halal integrity, “where we can focus our energies to take advantage of the opportunities that are open to us.” “Several of our universities are already doing excellent and ground-breaking scientific researches related to Halal matters, and are offering diploma, degree, masters and PhD programmes for Halal-related subjects,” Syed Jalaludin said. “At HDC, we see the Halal agenda as a great opportunity for our country. “Our stakeholders include Malaysians of all races and religions, and indeed the success of the Halal industry will bring success to a great many of our people. “It confirms Malaysia’s leadership as developers of Halal market expertise in such matters as standards, certification, research and market intelligence,” added Syed Jalaludin. | SOURCE: BERNAMA, 20/3/2007

KAZAKHSTAN

KAZAKHSTAN NEEDS TO DEVELOP HALAL INDUSTRYPRESIDENT

Kazakhstan needs to develop a Halal-industry. This opinion was expressed by President Nursultan Nazarbayev on the republican agroindustrial complex meeting, reports KZ-today’s correspondent. “Kazakhstan still lacks production experience of Halal meat for Muslims, and there is no one company, producing Halal under license”, stressed the President. “The ministry of agriculture has to concentrate the cattle breeding in this concrete direction and in the limit of budget funds”, underlined Nursultan Nazarbayev. Besides this, the head of state addressed “Kazagro” national holding together with the government and hakims of all levels “to make the market and opportunities research and prepare the technical-economic grounds at the first stage of 4-5 projects in construction of large feeding farms with all needed infrastructure for meat export in different regions of the republic”. It is estimated that the current Halal-market volumes worldwide totaled more than $500 billion a year. | SOURCE: KAZAKHSTAN TODAY, 6/3/2007

THE HALAL JOURNAL

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BRAZIL

EGYPTIANS MAY IMPORT 30% MORE BRAZILIAN BEEF

Tamer Mansur, general supervisor for the Brazilian Halal Food Centre (Cibal) predicts that exports of Brazilian meats to Egypt and other countries in the region may increase by 30% within the coming months. “We are really optimistic as our work and the contacts made during the fair have exceeded our expectations. Meat has never been so greatly sought,” he said. According to the secretary general at the Arab Brazilian Chamber of Commerce, Michel Alaby, who is in Cairo, relations in the sector of meats have also improved in the institutional area. “We met with the president of the meat importer’s union, Alaa Radwan, who made a series of proposals to further improve our relations,” stated Alaby. “He asked us, for example, to seek exporters who could sell at lower quantities, like one or two containers,” he added. The idea, according to him, is to permit that a greater number of Egyptian importers have a chance of buying Brazilian beef. According to the foreign trade analyst at the Arab Brazilian Chamber, Zein El Abdine, the Brazilian stand in the 40th edition of Cairo International Fair had received over 450 visitors within the last three days. According to him, 120 contacts were established with companies interested in the import of cattle beef, manufactured food, juices, agricultural machinery, wood, sugar, coffee and petrochemical products. | SOURCE: ANBA, 28/3/2007

“This way, we can help raise the standards and develop best industry practices within the global distribution, transportation and logistics supply chain of the global Halal trade where the role of a port is crucial in the efficiency of the delivery system.” Datuk Basheer Hassan, Chief Executive Officer, Northport

MALAYSIA

NORTHPORT KEEN TO WORK WITH ROTTERDAM TO REACH 30 MILLION MUSLIMS IN EUROPE

Northport is keen to work with the Port of Rotterdam, the only certified European Halal Hub, to reach 30 million Muslims in Europe as part of initiatives to develop Halal trade as a mainstream activity. Its Chief Executive Officer, Datuk Basheer Hassan, said other initiatives include providing dedicated shipping services linking Northport with the key Muslim consumer markets in Pakistan and the Middle East. This includes the weekly “Halal Express” service mounted by national shipper MISC Bhd with Dubai-based Simatech Shipping LLC served by four 1,200 twenty-equivalent-units (TEUs) containership. “We are treating the prospects and opportunities in the Halal trade as more than just a niche market. We provide an extensive range of facilities and services at our distripark within the Customs-free Free Commercial Zone to allow value-adding activities,” he said. Basheer also said special zones have been designated for Halal activities while the need to further expand activities and the scope for testing and certification of Halal products have been taken into account under Northport’s RM500 million five-year expansion plan. He also concurred with calls for a global Halal standard as it would protect the integrity of the Halal trade and quality of products that demand not only high hygiene but most importantly religious compliance on which there should be no ambiguity on standards and quality. As to the setting up of the Halal Industry Development Corporation (HDC), he said Northport would work closely with it to ensure Halal trade via Northport meets the stringent Shariah requirements and standards. “This way, we can help raise the standards and develop best industry practices within the global distribution, transportation and logistics supply chain of the global Halal trade where the role of a port is crucial in the efficiency of the delivery system,” he said. | SOURCE: BERNAMA, 28/3/2007

BULGARIA

FROM IMAM TO BUSINESSMAN

Hadzhioliev is the manager and co-owner of Merkez, the first Bulgarian company selling pork-less sausages. All the sausages and salami are made in accordance with the Halal principles of Muslims: the meat comes from ceritified butcheries, where the animals are slaughtered according to the rules laid out in the Koran - for example, ensuring no blood remains from previous slaughters. With about a million Bulgarian Muslims, moderate Islam has been experiencing a rebirth. Merkez is a part of all this. “We need one or two years to convince people that our products don’t include pork meat. We’ve become a recognised brand,” explains Merkez’ assistant director Mehmed Kapanak. “In the beginning, people didn’t believe that they could offer sausages without pork,” says Hadzhioliev, “but we have shown that our community has been able to create its own alimentary industry.” Hadzhioliev and Kapanak were impressed by the Halal system in Turkey and decided to attempt it in Bulgaria. Hadzhioliev is convinced that with Merkez, Muslims from here can continue with tradition, ‘including those who are less religious and now know which products are suitable for them.’ In the suburbs of Goce Delchev, there’s a good representation of a Halal food industry. Pomaken live in these districts, Bulgarian-born Muslims, for whom Merkez is a point of reference. Across the country, products are available in over 1,000 stores, explains Kapanak. Exporting to the European Union is the biggest priority within a list of plans that the managers tell us about, because at the end of the day, many Muslims live in Europe. It’s sure to fulfil the new requisites held by EU standards, and the company will need to meet the expenses of being inspected by veterinarians. At the moment, only 25 Bulgarian meat companies can export their goods to countries in the EU. Merkez’s sausages too would be subject to a taste check. Every community has their preferences. “We have to adapt the product,” says Kapanak. Both businessmen are considering producing dietary Halal sausages with low cholesterol. In Europe, as a convinced Hadzhioliev says, meat is considered a delicacy – sounds like the perfect slogan. | SOURCE: CAFEBABEL.COM, 6/3/2007 THE HALAL JOURNAL

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GlobalNEWS “Competition in the Middle East’s red meat market is increasing and we need to gain a competitive advantage whenever we can. The new Halal brand shows that the Australian red meat industry is culturally aware and that we respect the laws of Islam.” Ian Ross, MLA’s regional manager for the Middle East and Africa

AUSTRALIA

MALAYSIA

MALAYSIA SEES GROWTH IN TRADE WITH BAHRAIN

Meat and Livestock Australia has launched a new Halal brand for Australian red meat in the Middle East, aimed at reinforcing Australia’s strict Halal standards in one of the world’s largest Muslim markets. Under Islamic law, for meat to be permissible for consumption, it must be Halal, or lawful, and animals must be slaughtered by a Muslim in accordance with the Islamic ‘Shariah’, or law. MLA’s regional manager for the Middle East and Africa, Ian Ross, said the development of the new Australian Halal brand is an important development in reinforcing the integrity of Australia’s strict Halal meat processing systems. “This new Halal brand, which will appear on retail meat packs and point of sale, is the Australian red meat industry’s guarantee that the meat it exports has come from an animal that has been slaughtered according to the strict Islamic Shariah,” Ross said. “Australia is the only non-Muslim country in the world that underpins the integrity of Halal animal slaughter through government legislation, and this is something we will be strongly promoting in the Middle East. Australia has the most robust Halal meat processing system in the world and Muslim consumers need to know, and more importantly need to trust, that the lamb, mutton or beef they are purchasing is Halal. We hope this level of trust can give us a distinct competitive advantage in key Muslim markets like the Middle East. “Competition in the Middle East’s red meat market is increasing and we need to gain a competitive advantage whenever we can. The new Halal brand shows that the Australian red meat industry is culturally aware and that we respect the laws of Islam,” Ross said.

Bahrain-Malaysia trade saw a 700 per cent increase in the last three years rising to 637.9 million at the end of November last year compared with 76.9 million in 2003, the ambassador Naimum Mohammed Ashkali, said yesterday to mark the start of a three-day trade and investment mission visit to the Kingdom. The objectives include expanding trade and economic cooperation between Malaysia and Bahrain; to promote exports of Malaysian products and services to Bahrain; to identify alternative sources of imports that are more competitive and to strengthen existing business networking in Bahrain. The sectors or areas involved include food and beverages, Halal food, confectionery, fast food franchising, auto parts manufacturing, plastic injection mouldings, electronic circuitry, aluminium panelling, household and industrial chemicals and personal care products.

| SOURCE: PRESS RELEASE, 26/3/2007

| SOURCE: MENAFN – BAHRAIN TRIBUNE, 28/3/2007

LETTER

HALAL BOOST FOR MIDDLE EAST MARKET

GOT SOMETHING TO SHARE? Send your comments or suggestions to info@halaljournal.com. The best letter will win a 1-year FREE subscription to The Halal Journal magazine.

LETTER : VIEWS ON HALAL CHEMICALS

Dear Editor, My recent visit to a maternity ward in United Kingdom gave me the inspiration to write this email. Faced with the dilemma, whether as a Muslim, should I have really used the alcohol based hand sanitizer provided on the ward, to protect my friend and her newborn baby against the MRSA (Methicillin-resistant Staphylococcus Aureus) virus? As I was driving home, I could still smell the strong odour of alcohol on my hands and I thought of my other friend whose father passed away after a routine operation at the same hospital, by getting his wound infected by that hospital bug. As a scientist, I have no doubt about the importance of sanitizing your hands to protect vulnerable patients, and if alcohol is the only thing on offer, then as a Muslim, my personal beliefs are that it is permissible since there are no alternatives. However, I do know for a fact that there ARE alternatives available - a Halal certified hand sanitizer, which is not only better for the environment and more potent than alcohol, but is also cheaper than the industry standard alcohol-based hand sanitizers. Manufactured in the UK, the company is currently trying to get this product into the National Health Service (NHS). Even if there is a Halal alternative, many Muslims are still not given the choice, so what is the solution? One cannot expect the NHS to automatically provide a Halal sanitiser for the Muslim population without it being made aware of the need for it. The responsibility actually lies with us as Muslims to lobby for this to the NHS.

Take Halal hospital food for example. Just 10 years ago, Halal food was unheard of in the NHS and it was through hard work and increasing awareness of the situation that it has now become the norm on a hospital food menu. Sad to say though, as a pharmaceutical industry insider, I personally do not yet see any signs of this awareness for the need for Halal certified pharmaceutical products in the West, despite market research showing the demand for Halal products is a growing global phenomenon. Large pharmas, therefore, may be will be losing out if they do not engage in this growing global market and the first step is to open up a dialogue with Muslim specialists in the field. Awareness and knowledge of what constitutes a Halal product can only open up more doors for the development of Halalfriendly range of pharmaceutical products. There are far too many pharmaceutical ingredients to list here but at its most basic, replacing animal derived ingredients with Vegan or Vegetarian ingredients is a starting point. For instance, there are readily available vegetable derived glycerine and gelatine alternatives, and replacing these in standard formulations is by no means technically difficult to achieve (however, it may increase the cost of the final product). As far as manufacturing is concerned, there are Halal certified cleaning solutions available, which can easily replace alcohol sanitizers and these alternatives have been shown to be more effective in killing spores. Certifying pharmaceutical medicines would follow the same model and regulatory procedures as cosmetics. Vigilance to ingredients and their origins as well as the manufacturing process to check for points of contamination with haram products is a basic

concept shared by most industries. In all fairness, we cannot expect to lobby pharmas to manufacture Halal drugs without an authentic Halal certification body and a global unified check procedure in place. I have come across Halal certification bodies that have willingly given certificates and charged anything between £1,200-£1,500 without any due diligence. For instance, in the case of supplements, only the ingredients were checked and not the manufacturing plant. In another, no annual audits were carried out and certificates were re-issued without checking for any changes made to the products. Due to my lack of confidence in the system, I had to personally set up a not-forprofit Halal certification body for cosmetics and supplements ( www.halalconsultancy. co.uk). The organisation consists of a board made up of a pharmaceutical industry specialist, a PhD in Organic Chemistry and a medical doctor. The board meets once a month with the Imam and would scrutinise the entire process from manufacturing of raw materials to the final product. Once satisfied, the factory is audited to check for segregation and manufacturing. An annual certificate is only granted if the applicant satisfies the strict criteria laid down by the specialist board. The pharmaceutical industry needs to look into this issue seriously or it may risk loosing at least one fifth of their existing customers. However, the responsibility still lies with us to unify our Halal certification system. Dr. Mah Hussain-Gambles Saaf Pure Skincare (Saaf International Ltd) info@saafskincare.com via email

10 THE HALAL JOURNAL

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OnlinePOLL

For pharmaceutical products, would you still use that trusted brand (not Halal certified) even if you know there are Halal alternatives available?

Should Halal products be covered in Free Trade Agreements (FTAs) between Muslim and Non-Muslim Nations?

In your opinion should Genetically Modified Foods (GMOs) be considered Halal?

Not sure – 2%

Not Sure – 16%

No – 13% No – 44% Yes – 73%

Yes – 41% Yes – 54%

“When we look at the total cargo coming from Sabah in the direction of Europe, the relationship between Sabah and the Port of Rotterdam is a good step.” Lody Embrechts, Netherlands Ambassador to Malaysia MALAYSIA

LAHAD DATU IN SABAH SEEN AS ‘ROTTERDAM OF THE EAST’

The Netherlands and Sabah are “linking up” for a win-win situation, particularly in developing Lahad Datu Port as the “Gateway to the East”. Netherlands Ambassador to Malaysia, Lody Embrechts, said this would entail sharing of know-how and expertise. Apart from that, it is to introduce the Port of Rotterdam as the only certified Halal hub in Europe. He cited that the Port of Rotterdam was itself a mere fishing village before its remarkable transformation. “When we look at the total cargo coming from Sabah in the direction of Europe, the relationship between Sabah and the Port of Rotterdam is a good step.” In this context, the Port of Rotterdam mainly concentrates on bio-diesel and palm oil cargo. “We have two refineries for palm oil,” he said. He said they would also share their knowledge in infrastructure. Future discussions would include bringing Sabah into the network in the provision of logistics. According to Capt Weststrate, Rotterdam is the only European port that has been Halal-certified. They have a Halal logistic handbook, which takes care of the total certification from the factories to the port till the final consumer. | SOURCE: DAILY EXPRESS, 23/3/2007 SOUTH AFRICA

ISLAMIC PURISTS TO PONDER BEER BUBBLES PLAN

A panel of Islamic jurists will investigate the implications for Muslim consumers of a decision by SA Breweries to use carbon dioxide (CO2) derived from beer production in soft drinks bottled by subsidiary ABI. This comes after SAB, the local arm of beer giant SAB Miller, announced this week that it would invest R100 million in new CO2 capacity due to recent severe shortages of the gas. The facility, which will start operating in October 2007, will purify CO2 produced as a byproduct of the brewing process and use it to carbonate the Coca-Cola brands ABI manufactures, bottles and distributes, including Coke, Fanta and Sprite. There are an estimated 12.8 million Muslims living in South Africa. SAB, which owns ABI, says there will be no traces of alcohol in the carbon dioxide it will use for soft drinks and Michael Farr, SAB’s communications manager, said, “It is impossible for there to be any traces of alcohol.” However, the National Independent Halaal Trust (NIHT), which certifies food products for Muslim consumers, will convene a panel of Islamic experts to rule on this. Its CEO Moulana Abdul Wahab Wookay said, “The NIHT has been informed by SAB of the plans, but we would have to consult more widely and a panel of muftis (Islamic jurists) would need to investigate further.” In South Africa, Halal certification is conducted by several organisations, including the NIHT, the Muslim Judicial Council (MJC), the Islamic Council of South Africa (ICSA) and the South African National Halaal Authority (SANHA). | SOURCE: THE PRETORIA NEWS, 2/3/2007

No – 43%

SOURCE: WWW.HALALJOURNAL.COM

THE HALAL JOURNAL

U.S.A

HALAL MCNUGGETS A HIT IN DETROIT

Last September, a McDonald’s restaurant in Dearborn, Michigan began offering a Halal version of its chicken nuggets, in response to requests from area customers. In the past 11 months, sales have been so good that they have expanded the idea to a second Dearborn location. At the Michigan Avenue restaurant (14860 Michigan Avenue), McNugget sales are about double the restaurant chain’s average, and 65 percent of the orders are for the Halal version. The Halal product has been so successful that McDonalds expanded the offering to its location at 13158 Ford Road. Over 150,000 Muslims live in the Detroit/Dearborn area, representing an ethnic and cultural mosaic that is typical of Muslims in America. According to the ArabAmerican Institute, Dearborn has the highest concentration of ethnic Arabs outside of the Middle East. In some area schools, more than 90% of students are Muslim. It is not surprising, therefore, that Dearborn stores and restaurants are beginning to cater to the dietary needs of Muslims. In addition to Muslim-owned businesses, other mainstream businesses such as Kroger supermarket, Big Boy restaurant and Oakwood Hospital are offering Halal meats for the Muslim community. At McDonalds, Muslim customers were often limited to the salads and desserts. Some Muslims would eat the fries or fish sandwiches, but many are worried about possible contamination from cooking oils used for other meat products. McDonald’s restaurants are found all over the Muslim world, including two in the holy city of Mecca, Saudi Arabia. In these locally-owned restaurants, meat is purchased and prepared in the local area, in accordance with local custom. Halal meat and chicken have been available in those markets for quite a while. | SOURCE: ABOUT.COM, 29/3/2007 THE HALAL JOURNAL 11

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GlobalNEWS MALAYSIA

MALAYS URGED TO TAKE CONTROL OF HALAL FOOD INDUSTRY

Some 80 per cent of the Halal food industry in the country is controlled by non-Muslims, said Umno Youth deputy chief Khairy Jamaluddin. This was because they were already in control of food-based industries and, hence, it was easy to get the Halal certification for their products. Pointing out that even non-Malay banks had ventured into Islamic banking, he said the Malays could not take for granted that the Halal domain was theirs for the taking. “Just because you are a Malay it does not necessarily mean that you will succeed in industries synonymous with the Malays and Muslims,” he said, urging them to go back to the basics and take control of the food industry. Khairy was speaking at the Kongress Jihad Ekonomi (Economic Struggle Congress) organised by Gagasan Badan Ekonomi Melayu, Umno Youth and Yayasan Dakwah Islamiyah Malaysia. He also criticised Bank Pertanian over its Fund-for-Food scheme, where borrowers had to put 60% of the loan obtained in fixed deposit as collateral. “This does not make sense. This means 60% will be inaccessible if you have to put it in fixed deposits. Why borrow in the first place?” he asked. “You might as well borrow 40% of the money elsewhere.” He added that he had heard of and came across many such cases, citing an entrepreneur who wanted to borrow RM1mil from the bank to start a dragon fruit farm in Johor. He said under the bank’s condition, RM600,000 of that RM1mil would have to remain in fixed deposits. “So the entrepreneur decided against the bank loan and borrowed the money from friends instead.” | SOURCE: STAR ONLINE, 11/3/2007

PHILIPPINES

PHILIPPINES’ SENATOR BACKS HALAL FOOD INDUSTRY TO PROFIT FROM MUSLIM COUNTRIES

Senator Ralph Recto has urged governments to encourage the establishment of companies that would cater to Halal food and thus secure a foothold in the booming global market. The senator said the Halal food industry is a $150 billion enterprise that nourishes nearly 1.8 billion people in 112 countries worldwide. Recto asked government to study the possibility of the Philippines becoming a major player in this industry through the establishment of a Halal authority that would certify the compliance with Islamic practices in food preparation. He added that the plan of Brunei to establish a Halal food processing plant anywhere in Mindanao, Northern Palawan or Masbate should be welcomed and work must be done to cut a deal for this investment. This renders Recto’s proposal for a Halal authority necessary. Recto stressed that the Halal authority should coordinate the auditing, assessing and accrediting agencies of Halal importing countries. This is crucial, he added, since local Halal certifiers ensure that our food shipments, particularly meat products, would not be rejected. Moreover, only Muslims are permitted to perform the Halal ritual, thus generating job opportunities for Filipinos Muslims, whose total number now stands between 7 percent and 10 percent of the total national population. In Africa alone, the senator explained, Islamic sources place the total percentage of Muslims at 53.62 percent or 481.07 million based on 2005 figures. In Asia, the Islamic faithful number 30.78 percent, or 1.215 billion. “Nonetheless, the fact is that job-wise, many of our Muslim brethren will benefit from the development of a strong Halal food industry as the deeper the country ventures into this business, the more Muslims would be employed as butchers, inspectors, quality control managers and executives,” Recto stressed. | SOURCE: PRESS RELEASE, 3/4/2007

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“From the evidence provided, the committee believes that both Australia and Malaysia are approaching these negotiations in good faith with real progress being achieved.” Australian Parliament’s Joint Standing Committee on Foreign Affairs, Defence and Trade AUSTRALIA

MALAYSIA GATEWAY FOR HALAL PRODUCTS TO MUSLIM COUNTRIES

The Australian Government says there is a growing niche market for Australian primary producers in Halal-certified products, with Malaysia the gateway to Muslim countries. A report by the Australian Parliament’s Joint Standing Committee on Foreign Affairs, Defence and Trade said it had recommended the Department of Agriculture, Fisheries and Forestry to facilitate the process of Halal certification and the export of Halal produce to Muslim countries, using Malaysia as the hub. The report highlighted Australia’s growing relationship with Malaysia, saying that Malaysia had become Australia’s secondlargest trading partner in the Association of South-East Asian Nations and ninth largest trading partner overall, adding that the twoday trade in 2005-06 amounted to A$11.35 billion (A$1=RM2.75). He said trade between Australia and Malaysia was complementary - Australia exported to Malaysia natural resources, dairy products and sugar, while Australia imported Malaysian crude petroleum, furniture, and electronic products. He said Australia’s relationship with Malaysia would continue to evolve. “Doubtless there will be challenges, but the committee is confident the goodwill exists to overcome them,” he said. He also said Australia and Malaysia were negotiating a free trade agreement (FTA). “A number of significant issues are being discussed in FTA negotiations. From the evidence provided, the committee believes that both Australia and Malaysia are approaching these negotiations in good faith with real progress being achieved”, Jull said. | SOURCE: BERNAMA, 30/3/2007

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“There has been a common misconception up until now about what constitutes Halal, with many people assuming that it relates purely to foods. Others who have had a better understanding of the rulings have simply been unaware that some cosmetics contain ingredients that they should avoid.” Ms Heather Nix, Group Exhibitions Manager of Messe Frankfurt

U.A.E

DUBAI CAPITALISES ON BOOMING TREND FOR HALAL COSMETICS Dubai looks set to capitalise on the burgeoning Halal cosmetic market, currently worth an estimated AED 2.06 B (US$560 million) worldwide. The city’s potential is aligned to its position as the regional hub for the distribution of Halal commodities; a market that is worth a global total of US$2 trillion. Enhancing Dubai’s status in this sector is the domestic demand for such produce; a demand that is associated with improved levels of knowledge from consumers in the Middle East about the nature of the cosmetic industry and the ingredients used in many of its products. “There has been a common misconception up until now about what constitutes Halal, with many people assuming that it relates purely to foodstuffs. Others who have had a better understanding of the rulings have simply been unaware that some cosmetics contain ingredients that they should avoid”, said Ms Heather Nix, Group Exhibitions Manager of Messe Frankfurt. Dubai’s position as regional commercial centre for Halal products is having a strong impact on the sale of Halal cosmetics. In total, an estimated $150 billion (550 million AED) worth of Halal merchandise is distributed through the Emirate each year, with personal care items constituting a large proportion of this figure. Recent developments contributing to this growth include the Malay Chamber of Commerce Malaysia (MCCM)’s decision to set up its marketing centre in Dubai. So far, 100 companies retailing more than 400 Halal products - including cosmetics - have participated in this venture and it is anticipated that over the next five years, more than $10 billion (37 billion AED) of Halal products will be channelled through this market. The growth of Halal cosmetics also reflects the general boom across the Middle East in the sales of beauty and grooming products. Overall, the category has grown by 12% annually and it was estimated that the total value of cosmetic related sales in the Middle East region reached US$2.1 billion (7.7 billion AED) last year. In the previous year, the UAE market alone was worth more than US$414 million (AED 1.52 billion) in retail sales, with the Halal sector experiencing an attendant level of development. | SOURCE: AMEINFO.COM, 26/3/2007

MALAYSIA

MALAYSIA WILLING TO REVIEW HALT OF MEAT IMPORTS FROM NZ

Malaysia is prepared to review the suspension of imports of meat and meat products from New Zealand subject to compliance with the Shariah principle, said Agriculture and Agro-Based Industry Minister Tan Sri Muhyiddin Yassin . In this connection, he said, an inspection team from Malaysia would visit seven beef abattoirs in New Zealand from April 19 to 28 at the request of the relevant authorities in that country and the abattoirs themselves. However, in safeguarding and protecting the Halal standards and procedures, it was suggested that New Zealand authorities should ensure that the country’s meat and meat products complied with these requirements, he added. Malaysia has suspended the import of meat products from New Zealand since 2005 due to thoracic sticking and electric immobilisation used during slaughtering process by abattoirs in New Zealand in violation of Halal procedures approved earlier by Malaysia’s National Fatwa (Edicts) Council. The council, however, recently ruled as allowable the slaughter of animals using the thoracic sticking procedure subject to certain requirements. The minister, meanwhile, said Malaysia’s exports in agricultural products to New Zealand amounted to US$19.4 million compared to imports from that country which stood at US$218.4 million last year. The large gap was due to Malaysia’s substantial imports of dairy and milk products, live animals, meat products and fruits from New Zealand, Muhyiddin said. | SOURCE: BERNAMA, 17/4/2007

Calendar of events 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 OFFICIAL MEDIA 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 15-17 JULY 2007 Africa’s Big Seven Halaal World Gallagher Estate, Midrand, South Africa Tel: +2711 783 7250 Fax: +2711 783 7269 Email: admin@exhibitionsafrica.com www.exhibitionsafrica.com 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 16-19 AUGUST 2007 Halal Products Expo Int’l Convention Centre Berakas Brunei Darussalam Tel: +673 245 3666 Fax: +673 245 377 Email: sales@bruneihalalexpo.com www.bruneihalalexpo.com 21-23 AUGUST 2007 10th Asean Food Conference 2007 Kuala Lumpur Convention Centre Kuala Lumpur, Malaysia MARDI Headquarters Tel: +603 8943 7041 Fax: +603 8941 3512 Email: afcregistration@mardi.my www.mardi.my/afc2007 9-11 DECEMBER 2007 World Halal Expo Abu Dhabi National Exhibition Centre Abu Dhabi, UAE IIR Middle East Tel: 009714 336 5161 ext 234 Fax: 009714 336 5886 Email: halal@iirme.com www.halalworldexpo.com

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between the lines

The Prophet, may Allah bless him and grant him peace, has reminded us that the fortunate one is the one who is able to learn from the experience of others. It is generally recognised that the Halal industry is poised on the brink of dramatic expansion, and as is always the case in times of accelerated growth, the likelihood of going oﬀ course also increases correspondingly. As the Halal industry develops, we would be well-served by looking at some of the experiences of our Shariah-compliant sibling, the Islamic Finance sector, to see what we can learn.

AT THE

Words By HAJJ ABDALHAMID EVANS

As an industry,

Islamic finance is the older brother of the Halal industry. It began as a way to service the needs of the Muslims to engage in financial transactions, be it private, corporate or governmental, without getting involved in usury. This was, and indeed remains, the cornerstone of the entire industry. It began as an idea espoused by a dedicated few, and slowly grew in popularity over 25 years to become the trillion dollar industry that it is today. It is an industry that every bank wants to be part of. However, when London and Singapore, both noted more for their expertise in interest-based activity rather than Islamic jurisprudence, express their intention to become centres of Islamic Finance, one has to question where the industry has arrived. Because the industry from the beginning focussed so intently on banking per se, (as opposed to trading and business transactions) the entire industry was inevitably exposed to the dangers inherent in usury-based banking and the simple desire to make money out of money. What has resulted is an industry that is in reality little more than an annexe of conventional banking that is somehow, technically at least, slightly cleaner. But not much different. One of the prime culprits for this sad reality is the technique known as ‘Commodity Murabahah’. I am not a banker, so let me simply pass on to you the way it was explained to me by a recognised expert and CEO of a leading Islamic bank. You have a million dollars to invest, and you want to avoid usury. So you give your money to an Islamic bank, who encourages you to use a Commodity Murabahah that will ensure you, for

example, a 5% return. The bank takes your one million, and buys one million dollars worth of metal on one of the metal exchanges. They then sell the metal back through the metal exchange for one million, give or take a bit. They now owe you one million, plus your 5%, but the money now technically belongs to the bank, via the sale of their metal. They are free to use that money in any manner they choose, and what they generally choose is make a guaranteed return (of more than 5%) from the usury-based financial markets. Your initial investment is returned to you, with interest…sorry, make that profit…and everyone is happy. The bank is happy because they have made easy money with no effort; you are happy because you think you have made an Islamic investment. This is actually an exercise in what we might call ‘reverse money laundering’. It takes clean money and makes it dirty. And what began as a neat sleight-of-hand now accounts for approximately 80% of the trillion dollars washing around in the Islamic financial sector; eight hundred billion dollars that is thrown over the wall

into the conventional banking sector, and never makes its way back again. It was described to me like a oneway filter; the money goes out and cannot flow back again. How, you may ask, has this been allowed to happen in an industry regulated by Shariah scholars? The answer that I was given to this very question is that a small handful of handsomelyrewarded scholars, who sit on the Advisory Panels of all the major banks, have judged that commodity murabahah is acceptable. End of story. At the point of massive expansion of the market, a line was drawn in the wrong place. The profit motive conquered integrity. The result is that millions of Islamic banking customers are – unknowingly - earning interest on their investment. It also means that there is a wasted 800 billion dollars that is supporting usury-banking rather than doing something useful, not to mention ethically sound or Shariah compliant. It is understandable, but hardly excusable. Enough of that. What can we learn from this?

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CROSS-ROADS Halal and Haram, however, are the key legal terms on which the foundations of the Islamic Shariah rest. So if we are going to call it Halal, we have got to get it right. As the Halal industry grows, we can recognise that the key to sustained growth lies in issues relating to Halal standards, auditing and certification; Halal integrity in short. This is the foundation upon which this entire industry sits. Without Halal integrity, there is no Halal market, no Halal industry. Compared to the food industry in general, the procedures of Halal certification are still in the dark ages before the industrial revolution. It is the bottleneck that is holding up the growth of the industry. It is the weak link in the value-chain, and it needs to be the strongest. This is not blame, it is not criticism; it is market analysis. This is not an emotional issue, it is a procedural one. We, the members of this industry, need to make sure that as we ride the coming wave of expansion, investment and potential profits, we do not lose sight of the foundations on which this industry rests. We must strengthen our Halal Integrity. Our standards and best-practices, our auditing processes and certification procedures must be strengthened. For the market to expand, there will, by definition, have to be vastly more Halal certified products, premises and facilities; the certification procedures will have to catch up with the production process in terms of speed, expertise and efficiency. This is the biggest challenge facing the Halal industry today. It is a common challenge that is shared, regardless of country, race or even religion. However, the responsibility to get this right rests with the Muslims, despite our minority stake in this industry. We still have the majority stake in terms of responsibility. We must ensure that the certification process

takes a correct ‘middle way’; not too strict or no one will be able to be compliant, and not too lax or our food will not actually be Halal. We have to gear our certification standards to the realities of the market, the realities of consumer demand and the realities of the industry. The development of the Halal market must bring real benefits, create real wealth (not just money), be a tool to assist developing countries in the Muslim world. How the issue of Halal integrity evolves, as we stand at the door of expansion, is critical. If you are one degree offtarget when you launch the rocket, you may end up missing by a few miles. It could as many as eight hundred billion. In this respect, we share common ground with the Islamic banking sector. However, if we reflect on this, we can see that our responsibility is actually even greater. For one thing, we have their experience right in front of us, as an example, and we must learn from it. Besides, not everyone has a bank account, but everyone eats. Furthermore, from the perspective of Shariah

compliance, the term ‘Islamic’ (as in ‘Islamic’ banking) is not a legal term under the Shariah. It is just an adjective, a description; it is not in itself a definition. Halal and Haram, however, are the key legal terms on which the foundations of the Islamic Shariah rest. So if we are going to call it Halal, we have got to get it right. So, while we all gear up to develop capacity for production, manufacturing, exports, logistics, ICT and branding, we must ensure that the foundations of our industry are sound. We have all arrived at a cross-roads; here we are gathered, meeting, greeting, talking and planning. We can see success in front of us. The direction we take from this point on – and who is leading the way – will determine what kind of success we actually achieve. “Guide us on the Straight Path, the Path of those whom You have blessed, not of those with anger on them, nor of the misguided.” (Qur’an, Al Fatiha, 5-7) hj

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event highlights

THE WORLD HALAL FORUM 2007 R EFLECTIONS

FROM THE CHAIRMAN

BY KHAIRY JAMALUDDIN CHAIRMAN, WORLD HALAL FORUM

“As we approach The World Halal Forum 2007, barely a few days to go, I have been reflecting on the progress achieved since last year’s inaugural Forum, as well as the growing importance of this subject matter including the gruelling challenges of the many tasks ahead of us. The Halal agenda is powerful, broad, allencompassing and full of tremendous potential for good and meaningful intentions - to bring real benefits, more jobs, increased trade, development of human capital, nurturing skills, for the people of Malaysia. And of course, also to people of all cultures all over the world. As the Halal agenda continues to grow in importance for the Malaysian government, we can see how its growth and development will have so many positive effects for our country. Under the capable, guiding management of the Halal Industry Development Corporation, we can see the Halal agenda reaching to embrace and mobilise

so many sectors of our community to take advantage of the many positive attributes it has to offer. Building Malaysia’s Halal capacity will have a strong positive impact on our agricultural, manufacturing, logistics and trade sectors. It will strengthen the players, big and small, within the F&B sector, for producers and traders as well as the restaurant and hospitality sectors. Leveraging on Malaysia’s Halal expertise will strengthen our standards and our certification capabilities. It will enable Malaysia to offer world-class training, research and academic excellence in Halal-related matters, both for industrial applications as well as for academic achievement. Malaysia is indeed capable of being the global reference point for all the varied issues relating to the Halal market. I believe that this is an important role for Malaysia, a role that has been shaped and strengthened by our history of racial harmony and multi-cultural collaboration. Why am I so confident that we can reach this lofty goal? As I look at the list of companies and organisations that have come in to support The World Halal Forum 2007, in collaboration with the Government’s commitment, we are combining forces to build a strong platform for Malaysia’s Halal agenda. This degree of collaboration on the Halal agenda is unique to Malaysia. To me, this is a most eloquent proof that there is a strong belief throughout the nation, that by putting our combined efforts behind

the Halal agenda and making it the focus of our activity, we can achieve success. Certainly, the nationalities of our speakers this year - from Malaysia, India, Tunisia, Australia, Egypt, Turkey, UK, Saudi Arabia and Holland – reinforces our global credentials! The range of topics presented by our speakers is as comprehensive as their nationalities are diverse, and I am confident that we will all benefit enormously from their expertise and experience. I believe that The World Halal Forum encompasses something important about Malaysia’s global role, and our ability to demonstrate that Islamic values bring benefit to all. Halal is an inclusive arena, it brings together people of all disciplines, races and religions. Halal encompasses health, hygiene, safety and quality, as well as conducting just and equitable transactions with each other. The reminder from the Qur’an to eat what is lawful and wholesome from the earth is addressed to all of mankind, and it is this very real benefit that all the players in the Halal industry are striving to nurture and deliver. Through The World Halal Forum 2007, we have endeavoured to bring together those industry leaders who are determined and committed to making high quality, safe healthy, wholesome and lawful products and services available to all. I believe that together, we are all taking significant steps to ensuring that this hj noble goal is achieved.”

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event highlights

THE WORLD HALAL FORUM 2007 R EFLECTIONS

FROM THE HOST

BY TAN SRI DR SYED JALALUDIN CHAIRMAN, HALAL INDUSTRY DEVELOPMENT CORPORATION

“When it was first suggested to us for HDC to host the World Halal Forum 2007, we immediately saw this as an excellent opportunity in so many ways. The WHF is the foremost gathering of Halal industry leaders from all over the world, all converging in Kuala Lumpur. This makes it an excellent opportunity to share ideas, raise concerns and suggest opportunities amongst each other, so that we can chart the future course of this extraordinary opportunity, none other than the development and growth of the Halal industry. The World Halal Forum 2007 brings many benefits to Malaysia. Playing host to the best and brightest decision-makers in various industries immediately positions Malaysia at the very core of this unfolding market. It confirms Malaysia’s leadership role as developers of Halal market expertise in such matters as standards, certification, research and market intelligence. It exposes our domestic players to

some of the best ideas and practices in the industry, and is also a source of inspiration to many of our domestic players in the Halal sector. The participation of some of the world’s largest MNCs also confirms the importance of this event; indeed, it confirms Malaysia as a centre of Halal excellence for these industry giants who have used Malaysian expertise to develop their own strategic positions in the Halal market. All of these factors in turn boost the confidence in Malaysia as a destination for overseas investment into Halal-related industry sectors. All of these reasons make the World Halal Forum important to our nation, and hence, important to HDC. Our task is to nurture and develop our industry players to play an important role in the national economy. At HDC, we have identified two specific areas where we can focus our energies to take advantage of the opportunities that are open to us. The first is in Capacity Building. HDC is now developing a range of programmes to develop our local players, paying specific attention to the many SMEs involved in the food and beverage sector. In addition to production, Malaysia can play an important role in the trade of Halal goods. The second specific area of focus for HDC is in the area of Halal integrity. Malaysia has, over many years, developed considerable world-class expertise in the areas of standards development and Halal certification. We are determined to maintain and

strengthen this competitive advantage and this would form a strong foundation to our capacity building programmes. HDC is designing programmes to develop our research, testing and above all our training capabilities. As interest in the Halal market increases, our specific Halal expertise will be in high demand. We are confident that we can position Malaysia as the reference point and preferred destination for Halal training, to produce world-class Halal industry professionals in the fields of auditing, certification and industry best practices. Several of our universities are already doing excellent and indeed ground-breaking scientific research related to Halal matters, and are offering diplomas, degrees, Masters and PhD programmes for Halal-related subjects. All of these Halal Integrity programmes relate to building human capital, and indeed this is a great opportunity for the Bumiputera sector to take advantage of this niche opportunity. The World Halal Forum is a key component of HDC’s programme for success and we are honoured to be the host of this important event. We welcome and congratulate all of the sponsors whose contributions are so important to making this event a real success. We urge you all to take maximum advantage of the opportunities on offer, and indeed I am personally looking forward to welcoming you all to the World Halal Forum 2007.” hj

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event highlights

THE WORLD HALAL FORUM 2007 WHF 2007 Confirmed Topics & Reflections from the Delegates

he second staging of The World Halal Forum 2007 this May at the Kuala Lumpur Convention Centre will witness Halal industry leaders rolling up their sleeves, all set and ready to do some really serious work. The annual gathering of industry professionals within the four foundational segments of Halal - Manufacturing, Trade & Investment, Standards, Shariah & Science – will undoubtedly be an important affair as issues to be deliberated are challenging and resolutions agreed will be used to create the Halal industry’s blueprint. Among the topics that will be highlighted and deliberated during the extensive two-day forum will be current and pertinent issues surrounding the global Halal market. We have gathered a few key delegates who attended last year’s Forum and asked them what they think about this year’s program line-up. Here’s what they have to say.

DAY 1: MORNING SESSION To be discussed in the morning session on the first day will be on manufacturing, which includes: i. Market trends in the global food industry; highlighting global demands for Halal certified products and services and other related market trends for Halal, including food safety, environmental awareness, corporate social responsibility, organic and GMO issues. ii. Issues within the Halal market ingredient sector; highlighting Halal substitutes for animal-based ingredients, simultaneously bypassing trans-fat issues to ensure Halal means Healthy. iii. Developing Halal protocols for multinational corporations; in terms of applying Halal protocols internationally and communicating Halal across departmental boundaries. Ziad El Aloul “We believe that the global Halal food industry will not become truly global until the processors and manufacturers of Halal products have become truly competitive on the international scene. And when we speak of competitiveness, we don’t only associate that with cost but equally important is the full knowledge of the targeted markets and their consumers and the full spectrum of marketing and distribution policies to back up their products.”

Moulana Abdool Wahab Wookay “A vast number of companies are having their products certified Halal and even going so far as to discontinue the production of non-Halal at their plants. Large retailers in South Africa are now placing great emphasis on ensuring that their suppliers have their products Halal certified. This trend will definitely grow on a global level.” DAY 1: AFTERNOON SESSION Day 1 afternoon session meanwhile will have a central theme of standards and science with the following topics: iv. Challenges for multinationals in the global Halal market; including ways to maintain Halal compliance across different markets and suggestions for integrating the Halal supply-chain. v. Developing an integrated framework for a national Halal industry; including getting the industry and the government on the

same page and ways to optimise the audit and certification processes. vi. Halal – Scientifically Safer and Healthier? Groundbreaking research from a leading researcher indicates that the Halal process is healthier, safer…and therefore better business. Ziad El Aloul “We believe that the implication of the Malaysian government is critical for the success of creating a global Halal standard because it has the resources and means to bring along other important Muslim governments – such as Turkey, Saudi Arabia, Egypt, Algeria and Indonesia, to back up such efforts. A Halal standard backed by such prestigious governments will carry great credibility.” Moulana Abdool Wahab Wookay “It is clear that safer and healthier food is in demand. It is also very clear that the mainstream market will not be comfortable with many of the haram ingredients used in the manufacture of food items. It therefore becomes clear that it should be publicised that Halal certified products guarantee that these products are free of such reprehensible ingredients and safe for all to eat, not only Muslims. There should also be an educational process to dispel the unfounded myths surrounding Halal for the benefit of non-Muslim consumers.”

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event highlights

MOULANA ABDOOL WAHAB WOOKAY Chief Executive Officer National Independent Halaal Trust (NIHT), South Africa

BAHRI OUZARIAH Export Director Innovation Developpement En Nutrition Animale (IDENA), France

DAY 2: MORNING SESSION The first session on Day 2 will dive into the opportunities within Halal Trade & Investments, with riveting topics including: i. Five major markets for Halal products; a look at the five major Halal markets including expert analysis of trends and opportunities. ii. Cluster applications for the Halal industry, which looks at why cluster theory is tailormade for the Halal market, bringing the Halal industry into the 21st century. Prof. Dr. Hj. Mohamed Sadek “The global Halal industry is fast coming of age with Halal awareness picking momentum all over the globe. Food industries realising this upsurge are meeting this challenge head on with determination. This surge will become more evident in the coming years as Muslim consumers become more educated, knowledgeable and demanding. We sincerely look forward to the global Halal industry to take the lead and focus on the need for all quarters to coordinate efforts towards promoting Halal globally for the benefit of the entire Muslim ummah.” Bahri Ouzariah “I see the direction of the global Halal industry is moving towards being a global and premium quality label. In fact, if previously Muslim individuals or countries used to see Halal as something compulsory from a religious point of view, now I think more and more Muslims are considering Halal as a real way of life, as something good for health and is pleasing to Allah (swt).” DAY 2: AFTERNOON SESSION The final session on the second day will see deliberations on Halal and the Muslim world, including two final papers on Islamic finance for Halal industry and the way forward. The topics lined up include: i. Benchmarking Halal excellence for Muslimowned corporations; a look at the Halal

PROF. DR. HJ. MOHAMED SADEK Vice President Islamic Food And Nutrition Council of America (IFANCA), USA

ii.

iii.

iv.

Diffusion Method, values, personnel, procedures and products as well as building trust with the consumer. Turkey – a Halal Gateway to Europe; bridging the gap between Asia and Europe, developments in the Turkish food manufacturing sector and developing national standards for Halal in Turkey. Corporate Social Responsibility in the Halal Sector; analyses what happens after Halal products and Halal profits. It’s about nurturing the Muslim community and promoting Muslim ownership of global brands. Developing financial products for the Halal market, including ways to maximise potential synergies between Halal sector and Islamic finance; why the Halal industry needs Islamic banking services, and why Islamic banks should be focusing on the booming Halal market. Halal – The Way Forward; a look at creating a dynamic platform for the Halal industry by developing best practices within a global market and highlighting proposed projects to benefit the industry and the consumer.

Ziad El Aloul “WHF can encourage governments to reduce any

ZIAD EL ALOUL General Manager Tahira Foods, UK

import duties on Halal food imported from other OIC member countries and to simplify the process. The theme for this year’s gathering is good but its relevance will be measured by the success achieved at the meeting.” Bahri Ouzariah “We must target the entire world and not just the OIC countries because for one, you have a lot of Muslims outside the OIC countries. And, we must build a harmonised global Halal standard to be the best quality system in the world. Then, I’m sure the non Muslims would be very interested to consume Halal products, moving all consumers to higher quality and traceability systems.” Prof. Dr. Hj. Mohamed Sadek “Majority of Halal requests for certification come from Indonesia, approximately 55% as compared to 20% from Malaysia. We should establish a working relationship with Indonesia that will be mutually beneficial as well as working with other Muslim countries under the auspices of the OIC to further improve on the volume of trade currently taking place in Halal foods globally. Muslims numbering 1.4 billion could and should get a fair share of the cake.” hj Log on to www.worldhalalforum.org for the event’s latest updates. Copies of papers presented during the Forum will also be published at the website, but only for a limited time!

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event highlights

EVENT: FOOD AND HOTEL MALAYSIA 2007 DATE: 22 – 25 AUGUST 2007 VENUE: KUALA LUMPUR CONVENTION CENTRE

BE PART OF MALAYSIA’S BIGGEST FOOD AND HOTEL SHOW 2007 Malaysian Exhibition Services Sdn. Bhd, the country’s leading trade exhibition organiser, will once again be hosting the Food and Hotel Malaysia series of exhibition. The 9th biennial Malaysian International Exhibition of Food, Drinks, Hotel, Restaurant & Foodservice Equipment, Supplies, Services & Related Technology, (FHM 2007), will be held at the ultra modern Kuala Lumpur Convention Centre, from the 22 – 25 August 2007. Known as the country’s only specialised trade event, the forthcoming exhibition will be showcasing some of the key players in the industry, from both the local and international scenes. Mega brand names will be amongst the expected 600 exhibitors from 32 countries at the FHM 2007. Meanwhile, a total of 10 international countries including the most recent entry from Austria, Egypt, India, Korea, Sri Lanka and Switzerland joining the likes of Taiwan, Turkey and the USA will be presenting at the exhibition. The staging of FHM 2007 will build directly from the

outstanding response and results from the exhibitors at the previous 2005 show. Occupying more than 7,600 sqm of the convention centre, many of the FHM 2005 exhibitors, reported strong business throughout the four days, having met buyers from across the region. The previous FHM 2006 saw a record breaking 15,153 high-profiled visitors from across the region, not forgetting from some various different sectors including retail, catering, wholesale and manufacturing services. Keeping up to its status as “Malaysia’s Premier Food and Hospitality Show”, the FHM2007 will be held alongside spectacular

events such as the 5th Malaysian International Food Processing & Packaging Technology Exhibition, PROPAK 2007 and the region’s largest culinary competition, Culinaire Malaysia 2007. FHM 2007 will once again be playing host to several high level conferences such as the Asean Food Congress, which proudly returns to Malaysia this year and the World Association of Cooks Society (WACS) Asia Pacific Forum. For more information on visiting the show, contact enquiry@mesallworld.com or hj visit www.foodandhotel.com.

EVENT: THE MALAYSIAN INTERNATIONAL FOOD AND BEVERAGE TRADE FAIR 2007 DATE: JULY 12 – 14, 2007 VENUE: MATRADE EXHIBITION AND CONVENTION CENTRE (MECC), KUALA LUMPUR

MIFB 2007 WELCOMES THE WORLD TO EXPLORE THE MULTI-BILLION MARKETPLACE The Malaysian International Food and Beverage Trade Fair 2007 (MIFB 2007), a showcase focusing on food and beverage products, returns for the eighth time to promote the food and beverage industry. As Malaysia maintains its position as one of the top 20 trading nations in the world with its annual trade process food bill recording RM7.986 billion in exports and RM12.44 billion in imports, Malaysia is poised to be one of the major markets for food producers and suppliers within the region. Coupled with the nation’s robust economy forecasted to reach 5.9% growth rate in 2007, MIFB 2007 is indeed ‘Serving up a Multi-Billion Marketplace’. In the effort to balance the country’s food bill, the Government has given the agricultural and agro-based sector a significant push where it has set a target of 3% annual growth for the sector as a whole which has also been earmarked as the country’s third engine of economic growth aimed at creating new resources for the nation.

Malaysia’s re-exporting of end food products have also contributed to the expansion of this sector. Food and beverage industry players would also find Malaysia as an excellent venue to springboard their ventures into the international market. Riding on this positive trend and buoyed by last year’s success, MIFB 2007 expects to showcase more than 400 booths which also include exhibitors from various countries who are involved in food, beverage, agriculture and agro based products. MIFB 2007 has adopted the theme “A Multi-Billion Marketplace, Come Celebrate With Us”, whereby MIFB will continue its concerted efforts to

achieve outstanding success through increased promotional activities internationally. The organizers hope that by doing this, Malaysia will be listed in the world map as a strategic meeting point for business entrepreneurs in the food and beverage industry. To date, MIFB have received encouraging responds from overseas participation such as China, India, Germany, Indonesia, Vietnam, Thailand, and Singapore. For participation and more information, please log on to or call Expomal International hj Sdn Bhd at +603-8024 6500.

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event highlights

MIHAS 2007

ALL GEARED UP FOR GLOBAL PARTICIPATION

he 4th Malaysia International Halal Showcase (MIHAS 2007) is expecting greater participation from both local and international buyers and sellers with a much stronger support from the government. After three successful annual events, MIHAS has managed to position itself as Malaysia’s largest food and beverage exhibition and the world’s largest trade fair for the Halal food industry. With these strengths, MIHAS 2007 ensures continued steady growth of the Halal industry. Last year, MIHAS attracted 392 companies and 27,523 visitors to its 505 booths. MIHAS executive advisor, Datuk Ahmad Husni Hanadzlah, who is also the deputy minister of Trade and International Industries said, he was confident that this year’s showcase will see a significant 25 per cent increase in the number of visitors. “Response has been very encouraging indeed. Even Halal producers from non traditional Halal markets like India, Australia and Egypt have already made early booth reservations”. MIHAS 2007 was officially launched in Kuala Lumpur by the Minister of International Trade and Industry, Datuk Seri Rafidah Aziz at the Kuala Lumpur Convention Centre on Jan 22. It was subsequently launched in Jakarta and Singapore in early March as there has been an overwhelming response from these two countries and MIHAS is confident it will see a greater number of participants this year. “It is the premier international event that those in the Halal industry eagerly look forward to. The MIHAS

promotion team has visited more than ten countries and they have received many enthusiastic queries about the opportunities at MIHAS,” he said. Port of Rotterdam will be among the return exhibitors to MIHAS, indicative of the increased emphasis and importance of logistics as an expanded sector of the Halal industry. MATRADE will also organise its international business matching sessions during MIHAS 2007 and it expects to maintain a high rate of success, following last year’s record of 2,506 trade meetings held over two days which yielded sales of RM168.3 million. Several of MIHAS’ exhibitors have gained tremendous mileage from participating in MIHAS last year such as a local bumiputera company, Perusahaan Sepang Maju Sdn. Bhd., which secured a contract to export its brand of tapioca chips called “Rizal’s Chips” to the United Kingdom. It has also received export inquiries from Canada, Indonesia, Zimbabwe and Vietnam. The company was presented with the award for Most Promising

Entrepreneur at MIHAS 2006. Ahmad Husni said the business matching sessions are instrumental in producing promising results for trade visitors and local industries. “MIHAS is the gateway to a bigger market. We strongly urge local and regional entrepreneurs to use MIHAS as a platform to further promote local Halal products internationally”, he said. MIHAS 2007 is hosted by the Ministry of International Trade and Industry and organised by the Malaysia External Trade Development Corporation (MATRADE) jointly with the Islamic Dakwah Foundation Malaysia (YADIM) with the support of the Ministry of Entrepreneur and Cooperative Development. MIHAS 2007 takes centre stage this year from May 9 to 13 at the Kuala Lumpur Convention Centre and will be held in conjunction with Halal Malaysia Week which comprises MIHAS 2007 and its partner event, the World Halal Forum, to be held also at the Kuala Lumpur Convention Centre from May 7 to 8. hj

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MATRADE news

MIHAS 2007

– THE ONLY GLOBAL HALAL MARKET PLACE The Malaysia International Halal Showcase (MIHAS) is in its fourth year this May and it promises to offer the most conducive platform for those in the Halal industry to penetrate the global Muslim market. With over 500 exhibition booths expected from more than 20 countries – all geared for more business, MIHAS is moving towards the common vision to facilitate and expand the frontiers of the Halal market. Here is a quick glance of pertinent info and what to expect in this year’s MIHAS: WHAT IS MIHAS? MIHAS or Malaysia International Halal Showcase is Malaysia’s largest food and beverage exhibition and the world’s largest international Halal trade fair. Staged every year, MIHAS congregates the largest annual gathering of Halal industry players and entrepreneurs to facilitate the sourcing and selling of global quality Halal products from food and beverage, food chemicals and emulsifiers, pharmaceuticals and herbal products to cosmetics, health care and Islamic banking and financial services. MIHAS stands as the best gateway through which forward looking businesses can develop strategic partnerships and penetrate the global Muslim market. WHO ARE THE ORGANISERS? MIHAS 2007 is hosted by the Ministry of International Trade and Industry Malaysia (MITI) and organised by Malaysia External Trade Development Corporation (MATRADE) jointly with the Islamic Dakwah Foundation Malaysia (YADIM) in association with the Ministry of Entrepreneur and Cooperative Development Malaysia (MECD). This premier event is coordinated by a permanent Secretariat managed by Indah Profiles Sdn. Bhd.

WHY MIHAS? MIHAS stands as the best entry point and gateway through which businesses can develop strategic partnerships, introduce their products and eventually penetrate the global Muslim market. The presence of prominent buyers from Malaysia and its ASEAN neighbours allows global Halal entrepreneurs to gauge receptiveness to their products and its feasibility to enter this huge ASEAN market. With a proven track record, this international trade fair continues to attract global attention especially among buyers from prominent hypermarket and supermarket chains, important wholesalers, importers, retail consultants, entrepreneurs, captains of industry and influential policy makers from countries across the globe. This has equipped MIHAS with the extra edge to break through barriers to enter young developing markets committed to serve the needs of the Halal consumer and to reach a quality-conscious generation seeking quality Halal food products. WHY HALAL? One fourth of the world’s population is Muslims and to eat, Muslims adhere to a strict code of religious

EVENT: 4TH MALAYSIA INTERNATIONAL HALAL SHOWCASE (MIHAS 2007) VENUE: KUALA LUMPUR CONVENTION CENTRE, KLCC, KUALA LUMPUR, MALAYSIA DATE: 9 – 13 MAY 2007 TIME: 10 AM – 7 PM DAILY dietary law of the permissible (Halal) and the forbidden (haram) and strive to observe them. According to the Holy Quran, to be considered Halal, products must also be wholesome, clean and safe for human consumption. The most basic Halal principles revolve around products that are totally free from pork, intoxicants (alcohol) and animals not slaughtered in the name of God by qualified Muslims. The strict observation of Halal practices as well as the advent of modern quality management and food safety assurance systems has led to an encouraging growth of Halal certification bodies around the world. This is important as the modern consumables industry utilises food chemicals, stabilizers, colourings or emulsifiers that are often derived from haram or dubious substances to enhance product quality or taste. There is now greater awareness among the Muslims of these facts. Thus, the high quality and safety aspects required by the certification of Halal products offer reassurance to those of the Muslim faith, creating an encouraging demand for quality Halal products.

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WHAT ARE THE CRITERIA AND CATEGORIES OF EXHIBITORS? Only companies that have valid Halal certification for its products are allowed to take part in MIHAS. Organisations from Islamic countries with a Muslim population exceeding 90 percent but do not have a Halal certification body can exhibit only if the owners are able to prove that their organisations are Muslimowned and that their products are guaranteed Halal. The exhibitors’ categories are as follows: HALAL CONSUMABLES & PREMISES • Abattoirs • Agricultural products • Beverages • Cafés & restaurants • Canned products • Chocolates and cocoa products • Confectionery • Dairy products • Dried fruit & nuts • Edibles & emulsifiers • Food additives • Fresh & semi-preserved seafood • Frozen food • Herbal & healthcare products • Herbs & spices • Hotel, restaurants & franchise • Multilevel marketing • Pharmaceuticals • Poultry, meat & dairy • Processed & ready to eat products • Raw food material • Snacks

The strict observation of Halal practices as well as the advent of modern quality management and food safety assurance system has led to an encouraging growth of Halal certification bodies around the world.

HALAL NON-CONSUMABLES • Aromatherapy & perfumery • Cosmetics • Toiletries & body care ISLAMIC INVESTMENT, BANKING & TAKAFUL • Financial Products & Services • Islamic Unit Trust • Islamic Capital Markets • Takaful SERVICES & GOVERNMENT RELATED INSTITUTIONS • Government Agencies & Associations • Islamic Promotion & Development Associations • Trade Development Councils • Trade Promotion Boards • Biotechnology • Developers of Halal Parks • Food Safety Diagnosis • Food Research & Development technologies • Halal certified households • Islamic-based IT support & services • Logistics HOW DOES MIHAS DIFFER FROM OTHER FOOD EXPOS? MIHAS is focused entirely on Halal products and services. It serves as a complete platform showcasing the various spectrum of Halal. MIHAS goes beyond organising a five-day exhibition to promote Halal products and services. It is involved in organising trade missions and promoting its members to international exhibitions throughout the year. HOW ‘INTERNATIONAL’ IS THE MALAYSIA INTERNATIONAL HALAL SHOWCASE? MIHAS has received on average 18 participating countries every year

since its inaugural showcase in 2004. MIHAS 2007 will be seeing the participation of 23 countries, which includes China, India, Bangladesh, Netherlands, Australia, United Kingdom, the United States, Thailand, Philippines, Brunei, Indonesia, Singapore, Turkey, Iran, Egypt, Saudi Arabia, UAE, Kuwait, Morocco, Sudan, South Africa, Bosnia & Herzegovina and Argentina. MIHAS’ extensive promotion reaches up to 12 countries a year. In an effort to promote MIHAS 2007, the MIHAS Secretariat has visited Brunei, Australia (Melbourne), South Africa (Johannesburg, Durban and Cape Town), France (Paris), and UK (London). MIHAS also participated in Gulfood 2007 in Dubai from 1922 February and embarked on its international tour to the Middle East from 22 March to 1 April with the Ministry of International Trade & Industry, visiting UAE, Bahrain, Qatar and Saudi Arabia. WHAT ARE HIGHLIGHTS OF THIS YEAR’S EVENT? Besides the exhibition, there will be: Business Matching and Trade Facilitation Programmes organised by MATRADE. Seminars on Going Global: Permits, Trade Financing and INCOTERMS by local government agencies and financial institutions to discuss the technicalities and intricacies of import and export. Trade briefings by speakers from Australia, the Netherlands, the United Kingdom, Turkey, South Africa and Iran on trade opportunities and the potential of local Halal products in their countries as well as challenges in the Halal market. hj

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

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advertorial

Nestlé Responds to Global Demand for Halal Food

alal is not a new concept for Nestlé, in particular in Nestlé Malaysia. Nestlé Malaysia has been consistently working towards promoting the Halal food business since the 80s, even before “Halal” became a buzzword. The company’s interest in Halal was borne out of social responsibility and respect for our Muslim employees and consumers, but today we are truly beginning to appreciate the long-term investment we have made in manufacturing and marketing Halal products. As a result of its ongoing commitment and efforts to the development of Halal products, Nestlé Malaysia has been recognised as the Halal Centre of Excellence for the Nestlé world. This augurs well for Malaysia as the nation aspires to develop itself into a global Halal hub. Having had a head start in the understanding of the management of a successful Halal food business, Nestlé is in a position to offer assistance in this area, from sourcing to distribution. As the world’s largest food company, with a presence in over 100 countries; selling some 32 billion individual products annually; Nestlé is a household name which is visible in almost every facet of daily life. Nestlé’s recipe for success comes from an intimate understanding of consumer needs and the ability to meet those needs through its global resources. The Halal food market is currently valued at US$150 billion, and expected to be worth a phenomenal US$500 billion in 2010. This offers exciting opportunities to food manufacturers, as we expand and tap into new markets. For Nestlé, it means further investments in our manufacturing facilities, research and development, developing our people, consumer insights and communication, in promoting our Halal food business. To date, Nestlé has 75 factories and more than 100 manufacturing lines which have been Halal-certified, and producing Halal products for the Nestlé world. From research, we understand that on the average, Muslim households spend 30% of their budgets on food while their non Muslim counterparts spend only 15%. This growing Muslim community has its own special needs and

In addition, Muslim travelers have become more demanding in their food choices and airlines as well as travel agents have to cater to their special requirements. Nestlé is ready to meet those needs. The awareness of Halal is developing rapidly particularly in non-traditional Muslim markets such as the UK and France. Due to growing consumer demand, many big retailers and supermarkets such as Tesco are beginning to offer Halal products on their shelves. Nestlé recently participated with a contingent of Halal Food Manufacturers from Malaysia at the inaugural TESCO UK Halal Fair, receiving very strong and favourable consumer response for our Halal products from both the ethnic and local communities in the UK. In addition, Muslim travelers have become more demanding in their food choices and airlines as well as travel agents have to cater to their special requirements. This coupled with the increasing popularity of ethnic or Asian foods in the USA and Europe have also helped in bringing greater awareness for Halal products. While we are well aware of the opportunities that the Halal market offer to food manufacturers, we are also very conscious of the fact that Halal is first and foremost a long-term if not a life-long commitment. Halal does not cover only the religious aspects but it adheres to very strict quality and hygiene compliance which are in line with good manufacturing practices. Halal covers everything from farm to fork, or from sourcing of raw materials to distribution of products. Halal is about trust, responsibility, respect and strict compliance. Halal is for everyone ~ Muslims

and non-Muslims. This is where the business proposition begins. Halal food has the potential of being served to the world’s population, not just the 1.6 billion Muslims around the world. In order to remain competitive in the Halal food business, it is imperative that a global Halal standard be developed and for one Halal logo to be recognised worldwide. Currently, Halal certification is a voluntary process. In view of this, companies such as Nestlé invests a substantial amount annually on Halal certification and inspection of its manufacturing and storage facilities, locally and abroad. The costs of Halal certification may be a deterrent for small and medium players to invest in Halal certification as their products may not be able to be competitively priced. It is thus imperative that there be partnership with all relevant parties, to work together towards the better understanding and acceptance of Halal in the world. The relevant international Halal authorities need to focus on creating global standards and introduce one global Halal logo which can be recognised by all Muslims. The Government of Malaysia has made the realisation of a global Halal hub a priority. Nestlé fully supports this initiative and will continue to keep a clear focus on developing local consumer insights and tailored product offerings contributing to the investment behind the manufacture, distribution and sale of Halal food products the world over. hj THE HALAL JOURNAL 27

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Cover Story

Starting with a Clean Slate Words By KAMARUL AZNAM KAMARUZAMAN

THE RACE TO ESTABLISH HALAL STANDARDS IN TURKEY

THE REPUBLIC OF TURKEY IS AT A JUNCTURE WHERE MALAYSIA WAS 20 YEARS AGO, WHEN ITS NATIONAL HALAL STANDARD WAS FIRST ESTABLISHED. THE ONLY DIFFERENCE IS THAT DESPITE STARTING WITH A CLEAN SLATE, BOTH THE PRIVATE AND THE PUBLIC SECTOR IN TURKEY SEEM TO BE RACING TOWARDS THE SAME FINISH LINE IN TRYING TO ESTABLISH A LOCAL HALAL CERTIFICATION SYSTEM. MALAYSIA COULD SEE ITSELF PLAYING THE ROLE OF FACILITATOR.

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There was huge uproar in Turkey

a few months back when small traces of alcohol were found in a popular local soft drink brand there. Although one of the local Islamic scholars went public saying they were actually safe to drink, Selim Kinali and a few of his friends were not convinced and decided to stop consuming any local sodas. “Severe erosion of cultural values and norms” was how this businessman from the Turkish province of Kirklareli describes the current state of his people. He did not elaborate much but it was enough to indicate that the problem is beginning to affect the local food supply chain. Selim spoke about published reports of meat sellers mixing cheaper meats of unknown origin for a quick buck. That is why, he explained, the local Muslims who do care about issues of Halal and haram buys meat only from trusted family sources or from butchers and sellers who were recommended by family and friends. According to him, although there were government agencies entrusted to safeguard the health aspects of the local food industry, like the Ministry of Health and Ministry of Agricultural and Rural Development, there is no one agency that controls the authenticity of the Islamic rituals, or Shariah compliance of these products. “The local meat industry is unregulated by Shariah, so who is to know if the Halal slaughterman is actually doing it the correct way?” he questioned. Despite these problems, Selim saw a market

Although there were government agencies entrusted to safeguard the health aspects of the local food industry, like the Ministry of Health and Ministry of Agricultural and Rural Development, there is no one agency that controls the authenticity of the Islamic rituals, or Shariah compliance of these products. potential, and recognised that trade and economic benefits are in fact the perfect vehicle to promote a single Halal standard in a secular state like Turkey. Taking the idea further, he came up with the move to set up the republic’s first Halal certification body. Backing Selim in this endeavour is his TUSKON group, or the Confederation of Turkish Businessmen and Industrialists – a highly organised business confederation with members numbering in the thousands. The backbone of this organisation is made up of three major layers of business confederations representing the different geographical locations of Turkey. An estimated total of 9,500 entrepreneurs from 124 business organisations form the base of this pyramid, which then came together by Turkey’s geographical distribution namely Marmara, Aegean, Black Sea, Mediterranean, central Anatolia, eastern Anatolia and southeast Anatolia regions. These federations, pushing for their members to become global players by following closely the developments within the global business world, later banded together in 2005 to form the Confederation of Businessmen and Industrialists of Türkiye, or TUSKON. Besides being an organisation that represents Turkish businessmen who want to develop, enlarge their business and expand to foreign markets, the TUSKON confederation was also founded “to put the country’s problems into an agenda, to produce proposals for the solution and to contribute in achieving Turkey’s fullest potential,” according to its website. The group represents every major industry in Turkey including iron and steel, construction materials, petroleum products, ready-

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to-wear, textiles, mining and food products. The meat and dairy sector is another major industry represented by the members of TUSKON.

TURKEY’S HALAL EDGE As it is, Turkey is one of the few countries in the world which is self-sufficient in food production. According to international market research firm Strategis, approximately 15 per cent of Turkey’s total income is derived from agriculture and together with the agro-industry and agriculture-based service sector, agriculture and food production accounts for approximately 40 per cent of the country’s GNP. Turkey is also the largest producer and exporter of agricultural products in the Near East and North Africa. Exports of agricultural commodities and food products were valued at USD 4 billion in 2002 and accounted for 12.8 per cent of Turkey’s total export earnings. Apart from being a net food exporter, significant changes in the attitudes and consumption patterns of its population are also seeing increased demand for processed foods. Its large population size (76.8 million), significant young market segment (50 per cent under age 25) as well as rising income levels, especially in urban areas are all factors prompting this change. Increased travel by Turks abroad and by tourists to Turkey as well as rapid urbanisation and the growing numbers of working women are also increasing the demand for processed foods, which according to Strategis, are mostly made locally using local ingredients. While Turkey does not allow imports of meat products, there have also been significant imports of other ingredients for the sausage and meat processing industry. A wide variety of locally processed lambs, beef, turkey and chicken products are also available. “This can be accredited to the diversity of Turkey’s agricultural production, a relatively well developed and protected processing sector, and an import regulation regime that discriminates against processed food imports,” said the Strategis report. This important fact is confirmed by Atalay Cendelen, chairman of the construction industry committee of the local Bahcelievler Businessman Association or BIŞAD, who is also a close friend of Selim. He said before, perhaps not more than 10 or 12 years ago, there were not as many brands of processed foods as

there are today in the market. “There is currently no regulation in this regard and this Halal system is really what is needed by the society and the country. Not only will it will bring a competitive advantage to the Turkish people within the international market, this effort will also lead to a greater working relationship with the South East Asian region,” Atalay said. With Turkey pushing hard to become a full-fledged member of the expanded European Union (EU), grabbing a slice of the lucrative global Halal market pie would certainly provide a huge boost in this regard, especially since a healthy trade figure is among the main pre-requisites to be accepted as an EU member. There are other factors going for Turkey should it decide to assume a role as one of the major global Halal hub. The most significant is its excellent geographical location - a feature fought for by many since the start of civilisation. The lands of Turkey are located at a point where the three continents are closest to each other - Asia, Africa and Europe. Anybody who has been to Istanbul would realise that the ancient city has a significant role to play in areas of transcontinental trade. It is at a position where Europe and Asia meets and is prominent as a centre of commerce because of its land connections and the seas surrounding it on three sides. Because of its geographical location, the mainland of Anatolia has always been in favour throughout history, and is the birthplace of many great civilisations.

By being the trade bridge between Asia and the European continent, Turkish food manufacturers are likely to make major in-roads into the growing size of the European Muslim market - if they possess a credible Halal certificate and logo. A clear and ready market is the city of Berlin, Germany, home to an estimated seven million Turks and is the single largest Turkish community in existence overseas. “Finally, Turkey, considering its proximity to the European countries and strong and deeply-rooted economic relations with the EU, would support Malaysia and serve as a gateway for enhancing Malaysia’s economic relations with the EU,” assured Ömer Faruk Dogan, deputy undersecretary for the Turkish Prime Ministry’s Undersecretariat for Foreign Trade, UFT.

GOVERNMENT EFFORTS One important fact that Selim did acknowledge is the fact that the Turkish government did announced a few years ago the setting up of a Halal certification system for Turkey. The slow pace of development however has hampered any potential progress to be made and he does not think the business community can wait any longer. This was confirmed by Ömer, who noted that it was the interests of the Turkish private sector that has given shape to the settlement of their Halal policies. In that regard, the Turkish Institute for Standards (TSE), a body responsible for setting up Turkish standards for the consumer market, has actually started its studies on Halal standards. He added that the proposed Halal standard for Turkey is currently being developed in accordance with the Malaysian Halal standard as well as the Codex Alimentarius Commission’s Halal standard and related hygiene standards. Although voluntary, strict pre-requisites are needed before manufacturers can be certified with this new Halal standard - they will have to first obtain two other TSE certifications – the TS EN ISO 13001 HACCP and TS EN ISO 9001 Quality Administration System Certificates. Which brings us to next million dollar question - How

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soon can the industry expect a Halal standard from the government? “The studies on the document are still continuing and the certification process is planned to start before June 2007,” Ömer replied. On Selim’s intention to set up a private Halal certification body, Ömer admits that TSE’s certification activities in Halal will not necessarily prevent other institutions from issuing Halal certificates in Turkey, but he did indicate that they must be accredited by an authorised accreditation body such as Turkish Accreditation Agency, TÜRKAK. “We strongly believe that Turkish food sector does not necessitate big investments in order to get Halal certification. All Turkish foods are produced and processed according to Halal practices, although there is not an official Halal certification system. Therefore, promotion of the standard is only a matter of certification, labelling and public relation activity and support of enterprises,” he said. Support from the government to this effect has been plentiful thus far. His department, the UFT for instance, gives financial support to Turkish firms aiming to attend MIHAS and to expand their market share in this sector. But despite not having a proper Halal standard in place, Ömer highlighted that the total volume of Turkey’s export to OIC countries in 2006 were still almost USD15 billion, made up mostly by food-related exports. “These amount indicates the quality of Turkish products and trust that Islamic countries put onto the Turkish food sector, despite the non-existence of a Halal certification system.” Although this seems to be true, Turkish authority should actually contemplate over what could have been achieved if they did have a proper Halal certification and logo in the first place.

Travel

with a Personal Touch

ENTER MALAYSIA When Selim’s local trade and business confederation announced that they would be hosting representatives from Malaysia’s Halal Industry Development Corporation (HDC), he realised that this was his one chance to learn from the best. He had read about Malaysia’s push to become a global Halal hub, about the vast economic potentials that exist within the global Halal food industry and about the spill over effects on other related industries. Hoping to build on the Malaysian Halal model, with a bit of tweaking to fit the local environment, Selim and Atalay hopes to establish their first full fledged Halal certification system and to start building on their own local Halal industry by applying the experiences of others. Selim expects to have their first Halal certification body “as soon as possible”, but Darhim Dali Hashim, director of capacity building for HDC reckons that this process would require some time, especially in identifying key Halal partners and putting the core network of people into place. “The best thing about establishing a Halal standard in Turkey is that they are starting with a clean slate,” said Darhim. “They are in a unique position to take in and learn from the accomplishments and mistakes of others and map out a clear direction for their local Halal industry.” Malaysia’s past experiences have also shown that the best way forward to enhance a local Halal standard is to have both the government and industry players sitting together on the same platform and plan all future moves in cohesion. “What is important is to realise that we are not forming an alternative to the government,” assures Selim. “As we take concrete steps to become an entity in this market, if the government decides to be the authority, we will step aside and go along with the government, but we will never be removed.” Welcoming the initiatives and research done by Malaysia thus far in the fields of Halal sector, Ömer strongly believes that cooperation between Malaysia and Turkey, two leading countries of the Islamic world, “will further enhance the development of the Halal standard and certification system both in Turkey and the rest of the Islamic world.” With Turkey’s advantages in commerce and trade and its close affinity to the EU market, along with Malaysia’s experience in Halal standards and certification, both countries have a lot to offer each other and should therefore be working with all relevant parties to further strengthen the global Halal industry, and hopefully profit from it. hj

Official Travel Agent WORLD HALAL FORUM 2007 For details contact:

I N D A L U C I A T O U R S & T R AVEL SDN BHD (KKKP No. 2477) (Co. No. 106013-M)

Ground Floor, Wisma Ismaz u r i No. 38, Jalan 4/76C, Desa Pa n d a n 55100 Kuala Lumpur, MALAY S I A t : +6 03 9287 9688 f: +6 03 9282 3188 e: inda2477@streamyx.com THE HALAL JOURNAL

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RE-BRANDING HALAL

= Healthy

SCIENCE

= =

Hygiene

RESEARCH

he Halal concept is not foreign to Muslims around the globe; it has always been a lifestyle. It is not an alien concept amongst non Muslims either, especially those in Muslim countries. However, the concept had not been a major element in the fabric of life in predominantly non Muslim countries. According to Mohammad Mazhar Hussaini – Executive Director of Islamic Food and Nutrition Council of America (IFANCA) and author of “Islamic Dietary Concepts and Practices” – this is perhaps due to the fact that Muslims there have failed to exert pressure on the manufacturers in the food industry regarding their demands of Halal food. The good news is, times have changed, and now Halal is no longer merely a religious obligation or observance, but is considered as the standard of choice for both Muslims and non Muslims worldwide. “Halal has now become a universal concept. Halal stands for just and fair business transactions, caring for animals and the environment, social justice and welfare. It is not limited to a concept, confined or restricted to the slaughtering of animals for consumption by a Muslim, but encompasses products and services of the highest quality to meet the ever increasing awareness and needs of consumers in a demanding global market,” says Nurliza Ramli, author of the article, “Halal – The New Global Market Force”.

TECT

Demands for Halal branding are driven by the fast-growing Muslim population and also by non Muslim consumers seeking clean, healthy and safe food. The surge was especially evident during the outbreak of the deadly bird flu virus in 2005. There was tangible increase in sales in Halal stores throughout Moscow, from USD 45 to 70 million a year to USD 100 million a year. Non-Muslim Russians made purchases from Muslim stores because they believed the products are fresh, safe and infectionfree, and had confidence that Muslims would not cheat from adherence to their religious beliefs not to cheat.

n the Philippines, nonMuslims also tend to prefer foodstuff stamped with the Halal logo for health reasons. The public relations office of Victoria Foods Corporation – one of many firms with Halal certification – said that an increasing number of Filipinos

CLEAN!

IO N

L A L

PRO

Halal food and branding may seem like two separate entities, but the truth of the matter is they are amalgamating as one, pushing their way to the forefront of the global consumer market preference. Ruzanna Muhammad tells you why.

ive t a n Alter e

c Choi

are becoming health-conscious. Filipinos are now looking for Halal products, which they believe not only to be safe but also healthy and good. Fears of the Mad Cow Disease epidemic have also spurred the growth in the Halal sector. Mad Cow Disease is the common term for Bovine Spongiform Encephalopathy (BSE). BSE is a transmissible, neurodegenerative, fatal brain disease that afflicts cattle. According to epidemiological studies conducted in the United Kingdom (UK), the source of BSE was cattle feed prepared from bovine tissues. It is transmissible to humans by ingestion of meat from an animal infected with BSE. Humans then contract the human form of the disease, Creutzfeldt-Jakob disease. Its outbreak caused an uproar, which led to consumers choosing Halal and Zabiha (the process of slaughtering according to Islamic principles) meat, alongside Halal’s

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Advertising Note neighbours such as organic or natural food, deemed to be safe and infection-free. Organic and natural meat is safe because animals are not fed with feed containing ruminants. It is of no surprise that Halal branding is now as popular as its other market neighbours in the mainstream of the food industry. Halal branding’s market neighbours are none other than kosher, natural, healthy, organic, environmentallyfriendly, cruelty-free / animal welfare, ethnic, and fair trade. These brand values are popular mostly because society is more exposed to and aware of issues concerning health, animal rights and safety, the environment, and social justice and welfare. With these issues in mind, Halal branding has potential to gain credibility, fame and popularity amongst the non-Muslim society because the principle of Halal covers all these concerns under one roof. Plus, the demand and the market value of Halal food worldwide are on a perpetual upward trend, unaffected by traditional western market forces. Dato’ Seri Abdullah Ahmad Badawi – the Malaysian prime minister – said, in his address to the Developing Eight (D8) member countries in Bali, Indonesia in 2006, “Based on simple calculations and by looking at the per capita expenditure on food among the Muslim population around the world, we estimate that the Halal food market is worth at least USD 580 billion a year.” The market value of Halal food industry is so significant, no one single food product manufacturer will fail to benefit from it. It is analogous to the nectar that will attract the bees, where the latter are the food product manufacturers. Dr. Marco Avenati of Firmenich – the world’s largest private company that produces fragrances and flavours for the cosmetics and food industry, founded in Geneva, Switzerland – said at the Halal Conference 2003, “At Firmenich, we see Halal certification as another level of quality assurance, which improves the product itself.”

o date, there are three major Halal product manufacturers in the United States (US). They are Al-Safa – a Jewishowned company, Halal Premium and Twin Rivers. According to Nordin Abdullah – director, KasehDia Consulting, for every one halal product on the US supermarket shelves, there are eighty-six kosher products. This could be one of the reasons why Halal branding is unfamiliar to most in non-Muslim countries. Most people find it more convenient to shop for groceries or provisions in supermarkets. You have the benefit of being able to choose from a myriad of brands for every different product, and, of course, there will be almost everything you need all in one place. Therefore, accessibilitywise, supermarkets have more buying appeal

and power compared to the existing little Halal goods shops at the corner. The little shops were not prolific in non-Muslim countries, but they are becoming a trend. Most Muslims in non-Muslim countries face accessibility difficulties, since they must make a trip further away from home just to buy groceries. The solution is to have credible and certified Halal-branded products lining the shelves in supermarkets. Thus, both Muslims and non-Muslims preferring Halal will have easier access to Halal food, without having to make two stops when out grocery shopping.

ith 1.5 billion Muslims around the world, the global retail market for Halal food is worth US$400 to 580 billion per annum in 2006, based on per capita expenditure on food, by Muslims. With reference to the US Centre for World Mission Report, the Muslim population is increasing at the rate of 2.9 per cent. It is estimated that the Muslim population in 2007 will reach a total of 1.8 billion. This increase is bound to raise the market value of Halal food. The question is: will consumers in non-Muslim countries shy away from the idea of Halal branding? They might not find the idea of Halal branding unappealing per se, but more to how the animals are slaughtered. NonMuslims would most likely think of it as cruelty to animals, believing the animals suffer for approximately two minutes prior to death, having allowed the slaughtered animals to bleed to death. However, the Islamic principles of slaughtering clearly state that the knife used for slaughter must be very sharp, to ensure a quick, deep and clean cut through the vital anatomy of the neck of an animal – mainly the trachea, oesophagus and major blood

HAL

vessels. This is to guarantee the least amount of suffering for the animal. Efforts by the scientific community support that the Halal slaughtering method initiates massive haemorrhaging, which induces anoxia – lack of oxygen – in the brain cells, acting as a powerful painkiller. This painkiller effect, as a result of severe bleeding, disables the sensory centre, thus causing the animal to become totally insensitive to pain. This assertion had been made based on claims by the Association of Muslim Lawyers in the UK. Another point of concern relating to the Halal concept is the fact that it is based on Islamic principles, and this might lead non-Muslims to feel that Halal branding is but a step to “Islamicise” the society in non-Muslim countries. In actual fact, the purpose of Halal branding is to assure and promote clean, safe and healthy food products, and also to accommodate the needs of Muslims worldwide, especially in non-Muslim countries. Despite its detractors, Halal branding is making its mark everywhere around the world. It had been merely a religious obligation for Muslims, but most non-Muslim consumers are beginning to prefer food products with the Halal branding because it is believed to be safe, healthy and clean. hj

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ISLAMIC DEVELOPMENT BANK (IDB)

YEARS IN HUMAN DEVELOPMENT (1975 – 2007)

TOGETHER WE BUILD A BETTER FUTURE THE IDB GROUP ISLAMIC BANKS PORTFOLIO FOR INVESTMENT AND DEVELOPMENT (IBP) UNIT INVESTMENT FUND (UIF) IDB INFRASTRUCTURE FUND ISLAMIC CORPORATION FOR THE DEVELOPMENT OF THE PRIVATE SECTOR (ICD) ISLAMIC CORPORATION FOR INSURANCE OF INVESTMENT AND EXPORT CREDIT (ICIEC) ISLAMIC RESEARCH & TRAINING INSTITUTE (IRTI) ADAHI PROJECT (IDB SACRIFICIAL MEAT UTILISATION PROJECT) AWQAF PROPERTIES INVESTMENT FUND (APIF) WORLD WAQF FOUNDATION (WWF) INTERNATIONAL CENTRE FOR BIOSALINE AGRICULTURE (ICBA) INTERNATIONAL ISLAMIC TRADE FINANCE CORPORATION (ITFC)

VISION By the year 1440 Hijrah IDB shall have become a world-class development bank, inspired by Islamic principles, that has helped significantly transform the landscape of comprehensive human development in the Muslim world and helped restore its dignity. MISSION To promote comprehensive human development, with a focus on the priority areas of alleviating poverty, improving health, improving governance and prospering the people. K E Y S T R AT E G I C T H R U S T S • Reform IDB • Alleviate Poverty • Promote Health • Universalise education • Prosper the people • Empower the Sister of Islam • Expand the Islamic financial industry • Facilitate integration of IDB Member Countries economies • Improve the image of the Muslim world PRIORITY AREAS • Human development • Agricultural development and food security • Infrastructure development • Intra-trade among member countries • Private sector development • Research and development (R&D) in Islamic economics IDB MEMBER COUNTRIES 56 member countries: Afghanistan, Albania, Algeria, Azerbaijan, Bahrain, Bangladesh, Benin, Brunei, Burkina Faso, Cameroon, Chad, Comoros, Cote d Ivoire, Djibouti, Egypt, Gabon, Gambia, Guinea, Guinea Bissau, Indonesia, Iran, Iraq, Jordan, Kazakhstan, Kuwait, Kyrgyz, Lebanon, Libya, Malaysia, Maldives, Mali, Mauritania, Morocco, Mozambique, Niger, Oman, Pakistan, Palestine, Qatar, Saudi Arabia, Senegal, Sierra Leonne, Somalia, Sudan, Suriname, Syria, Tajikistan, Togo, Tunisia, Turkey, Turkmenistan, Uganda, UAE, Uzbekistan, Yemen, Nigeria. C A P I TA L • Authorized Capital : 15.0 billion Islamic Dinar (US$20.5 billion) • Subscribed Capital : 8.1 billion Islamic Dinar (US$11.06 billion) During the Annual Meeting of the IDB Board of Governors (BOG) in Kuwait, the BOG decided to double the authorized capital of the IDB from ID 15 billion to ID 30 billion (equivalent to about US$ 40 billion), increase the subscribed capital by ID 6.9 billion (equivalent to about US$ 9.2 billion) to become ID 15 billion (equivalent to about US$ 20 billion). OFFICES • The Bank’s principal office is in Jeddah in the Kingdom of Saudi Arabia with three regional offices in Almaty (Kazakhstan), Kuala Lumpur (Malaysia) and Rabat (Morocco) and field representative offices in 11 eleven member countries :Indonesia, Iran, Kazakhstan, Libya, Pakistan, Senegal, Sudan, Gambia, Guinea Bissau, Mauritania and Algeria IDB HEAD OFFICE KING KHALID STREET, P.O BOX 5925 JEDDAH – 21432, KINGDOM OF SAUDI ARABIA, TEL/FAX: (966-2)6361400/6366871 EMAIL: ARCHIVES@ISDB.ORG

www.isdb.org

As the past decade sees per capita income continues to rise in many countries, consumers have begun purchasing more high-value food items such as meat, dairy, pasta and frozen vegetables. Global sales of these products have recorded phenomenal growth, with sales registering a 25 per cent increase over the last decade alone. Food suppliers have thus responded to this expanding demand by importing more high-value foods. But the choice to import or produce locally depends on many issues, including the nature of the product, trade and domestic policy issues, as well as other factors affecting transaction costs.

Making A Country A Brand Name And the Roles of Industry Associations

Words By IRFAN SUNGKAR

hile multinational companies such as Nestlé and Unilever may be able to influence, to varying degrees, the conduct of trade and market access in importing countries, this may not be the case for smaller local food companies. These smaller companies would need political will, strong determination and effective marketing and branding strategies to gain better market access within the global food market. In the past few years, Malaysia’s market has been a constant reminder that the global Halal food trade is very lucrative. Established in September 2006, the Halal Industry Development Corporation (HDC) is the first body of its kind tasked with positioning Malaysia as an international Halal hub as well as staking a sizeable slice of the growing Halal market. If we scrutinise HDC’s mission more closely, it is almost similar to that of many industry associations who are also trying to secure market access and share. To better illustrate the current framework in which the food

industry trade is conducted and how market access is secured, we take a look at how other countries promote their products through their local industry associations. A COUNTRY AS AN EFFECTIVE BRAND NAME Belgium is often said to make the best chocolate in the world. Though they do not grow the cocoa beans there, so it is not a product inherent to the country, they have manufactured the beans in a way that stands out exclusively as a quality product associated with the country of Belgium. So the term ‘Belgian chocolate’ covers the range, and does not require the individual manufacturer’s name and brand to confirm this quality. Instead they have coined the country itself as a maker of the finest chocolate, and all the producers can enjoy the benefits of that. This also enables them to attach a hefty price tag to their products that have been very effectively marketed worldwide. Other countries might try to do this with their livestock, such as USA beef, with the hope that when one thinks of a thick and juicy steak, then one immediately thinks steak from the USA. Unfortunately, this branding was shaken by mad cow disease, but they are working hard to recapture their market. Branding differentiates products and represents a promised value. Brands incite beliefs, evoke emotions and prompt behaviours. Brands also have social and emotional value attached to the consumers, have personality and speak for the individual user. They enhance the perceived utility and desirability of a product. Brands have the ability to add to or to subtract from the perceived value of a product.

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Australia (as well as New Zealand) enjoys the highest status of being animal disease-free, in the world, further enhancing the green and safe image of Australian food products. The industry clearly understands that food safety and product integrity are critical drivers for consumer preference and are essential in promoting Australia’s competitive advantage and a clean, green image.

In several instances, a country may deliberately use its name to promote its products. For food products, there are several examples to show that country branding, combined with the work of food industry associations, is a potent force in penetrating export markets. For this, we may need to first take a look at Denmark. DENMARK By any given standards of calculating production cost, Danish meat should be at a considerable disadvantage. Land and labour are inadequate and thus expensive, due to strict limitations on farm size, and other environmental regulations. Despite all this, however, Danish meat still enjoys immense popularity in Europe, Japan and the Middle East. Denmark exports two-thirds of its agricultural produce and is a net exporter in agriculture and fishery products. Some food industry associations, before the recent merger, include the Danish Dairy Board, Danish Meat and Bacon Council, and Danish Poultry Association. The Danish Meat and Bacon Council is known to be very responsive to the demands of international consumers and adopted an on-farm quality assurance scheme in early 2000. The scheme covers a range of elements including quality, safety standards and stringent controls, traceability, logistics, animal feeds, environmental standards and animal welfare. In terms of market access negotiations, the Danish Meat and Bacon Council represents the industry in negotiations with overseas agencies, as well as conducting market-specific intelligence to provide the industry with information on the requirements of different markets. AUSTRALIA Australia (as well as New Zealand) enjoys the highest status of being animal disease-free in the world, further enhancing the green and safe image of Australian food products. The industry clearly understands that food safety and product integrity are critical drivers for consumer preference and are essential in promoting Australia’s competitive advantage and a clean, green image. A good example of an Australian food industry

association is the National Food Industry Strategy (NFIS). NFIS is an industry-led, government-funded initiative to support Australia’s food industry towards a sustainable and profitable role in the global food industry. NFIS aimed to ensure that Australia’s food industry will be a significant player with a sustainable and profitable role in the global food and beverage market. One of the most major themes of NFIS is Market Development: developing an international food market-entry strategy that grows Australian exports of food products, to enable companies to optimise profitability, investment and employment A major association leading the meat and livestock industry in Australia is the Meat and Livestock Australia (MLA). With a mission to deliver world-class services and solutions in partnership with the industry and government, MLA’s core activities include building a demand for Australian red meat, improving market access for their products, conducting research and development (R&D) to give the industry more competitive advantages, and collaborating with partners to build capability within the industry. One of MLA’s major works is market access and marketing. On behalf of the meat and livestock industry, MLA manages and operates marketing activities aimed at maintaining and increasing the demand for Australian meat and livestock, especially in the overseas markets, through extensive marketing activities. These activities are underpinned by Australia’s ‘clean, green’ image and its reputation as a supplier of safe and quality red meat. MLA also works with the Australian and foreign governments to secure the best possible trade access to these markets. MLA also conducted market intelligence activities which

provide support for the industry and government in a number of ways, including compilation and informed analysis of market information as well as expert advice on key industry issues. NEW ZEALAND The New Zealand meat industry boasts one of the highest-quality assurance systems in the world. A key strength is the disease-free status of the national flock and herd. The country’s geographical isolation, backed by stringent quarantine regulations, means that overseas consumers can be assured New Zealand is free from animal disease. A good example of a local food industry association is the Meat Industry Association of New Zealand (MIA). It is a voluntary trade association representing New Zealand’s meat processors, marketers and exporters. The strategic objectives of the meat industry include, among others: Animal and Product Assurance: Protection of market access in all significant commercial markets with risk and evidentially-based compliance requirements that ensure food safety and security, and face no technical barriers to trade with minimal compliance costs Trade: Gain access to all major commercially-important markets on terms that maximize net returns to the industry Industry Representation: Represent industry positions and interests on industry organizations and relevant government and business forums Association Services: Efficient provision of advice, analysis, advocacy and representation, and information, meeting industry’s needs

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WHAT IS HALALTRACE TM ? The HALAL economy, especially HALAL-certified consumer products, is rapidly expanding. Governments are implementing measures to meet the requirements of a HALAL consumer products industry. Brand owners and manufacturers are defining new business and marketing programs to enhance and strengthen their product offerings and the HALAL brand image. These days, any product can be subject to the threat of illicit trade. Counterfeit and uncertified HALAL products have already made their way into the industry, tarnishing the HALAL brand image and damaging consumer confidence. HALALTRACE么

is a security program designed by SICPA for

the HALAL industry with the aim of securing and protecting HALAL products and consumers. The program offers a platform of SICPA security products and solution modules with a wide range of security features and capabilities for various stakeholders: brand owners, regulatory authorities and governments. Based on this platform, SICPA develops and implements customised and dedicated security solutions.

SICPA Product Security Sdn Bhd Unit G01, Block 2300 Century Square, 63000 Cyberjaya Selangor Darul Ehsan Malaysia

Tel +60 3 8318 9393 Fax +60 3 8318 2068 product.security@sicpa.com www.sicpa.com

漏 2007, SICPA Product Security Sdn Bhd, Malaysia

Why is the price for US’ chicken leg quarters so cheap, one would ask? Because in the US, consumers only eat breast meat, while others are considered as by-products. There are tons of frozen chicken leg quarters in US’ warehouses waiting to be exported. In addition, can anybody give any assurance that these are in fact Halal? MIA is also actively involved in any bilateral discussion conducted by the New Zealand government, especially when it concerns the interests of the industry. New Zealand also has strong bilateral cooperation with Australia in terms of food quality and safety. EUROPEAN UNION: THE CASE OF AVEC AVEC, the association that represents poultry processors and trade for 17 EU countries, is a voluntary, non-profit association created in 1996 with a view to represent and promote the interests of the European poultry sector. In January 2005, AVEC opened a permanent office in Brussels, close to the European Commission’s office. The principal objective of AVEC is to influence EU decision makers, whenever legislation on poultryrelated issues is brought forward. They also actively lobby for the interests of the European poultry industry. For instance, AVEC strongly promotes the selection of poultry as a sensitive product (e.g. salted, cooked and fresh chicken fillets as well as cooked turkey meat), under the condition that the risk of loopholes is tackled and the European poultry industry will get more time to prepare and adapt to lower tariff imports. MALAYSIA: FINDING THE RIGHT BALANCE Malaysia should actively use its credentials, as a progressive Islamic country, as a branding tool. Based on a survey undertaken in several major importing countries in 2005, more than 80 per cent of consumers perceive Malaysia as either a good or a very good Islamic country. Consumers’ confidence in Malaysian Halal products is also high. Compared to other Asian and Western countries, global consumers have more confidence in Malaysian Halal products than any other countries in the world. Based on this, the name “Malaysia” is in itself a very good brand name. It is also interesting to note than one of the leading brand names in Middle Eastern countries is “Americana”, although it is produced in the company’s headquarters in Kuwait, which also has factories in Jeddah and Cairo. For HDC, the proposed strategy to leverage on Malaysia as a brand name is to create a unique logo, or to improve the “Made in Malaysia” logo based on certain requirements including quality, safety standard, Halal assurance, and so on. It is also important for HDC to conduct market intelligence on key industry indicators. This would include factors such as the required and demanded Halal products, packaging, consumer’s tastes and preferences, trading arrangements, and so on. Since there are MATRADE offices in many major importing countries, HDC should capitalise on this and build a strong working relation with MATRADE.

BEING AN INFLUENCE: THE CASE OF MALAYSIAN PROPOSED FTA In all the above cases, an important role of the association is to protect the interest of the industry, bring the case to the government and fight hard for it. In Malaysia, the proposed Free Trade Agreement (FTA) / bilateral arrangements with the United States has prompted a nationwide industry outcry when Malaysia had to import 5 per cent of US’ frozen chicken leg quarters. Why is the price for US’ chicken leg quarters so cheap, one would ask? Because in the US, consumers only eat breast meat, while others are considered as by-products. There are tons of frozen chicken leg quarters in US’ warehouses waiting to be exported. In addition, can anybody give any assurance that these are in fact Halal? It seems that this is the reason why the Indonesian government rejected flatly a similar move several years ago. This is a case that must be taken very seriously. HDC should represent the domestic Halal industry, take a proactive role, get the facts right and bring them to the topmost level of the government. Using AVEC as an example, their active works could even change the established rules for importing poultry meat of the European Commission. And they only do it for the interest of the EU poultry industry. That is why they are well-respected. MALAYSIAN HALAL PRODUCTS: THE NEED FOR POSITIVE PROMOTION The concept of Halal is not a wellknown subject especially in many Western countries. When the author is conducting field surveys to a nonMuslim about Halal food awareness, there are consumers who backed

away when we try to explain that Halal is an Islamic concept. There are even cases where the respondents / consumers in a leading European country accused the census takers as part of an “underground organisation” conducting programs to “Islamicise Europe”. This indicated that there are still many non-Muslim consumers with no knowledge whatsoever about Halal. It seems that the most effective option is to explain and convince them using science. For example, it is through the application of science that the ban on slaughtering of animals according to Halal principles, in Germany, was lifted several years ago after food technologists and scientists proved that the method is less painful for the animal. This is why developing a Halal Science Centre is not only a good step, but is also crucial towards a more global Halal awareness. SUMMARY: THE WAY FORWARD The establishment of HDC should be used as good momentum to leverage on the Malaysian credentials as a good and progressive Islamic country and to represent the domestic Halal industry for market access. Gathering market knowledge and information may be too expensive for an individual company, but HDC should be able to do so for the Halal industry. Not only would the unit-cost become much cheaper, the results would also prove very useful for both the industry and other government agencies to penetrate the global Halal markets. HDC should also be notified on any issues arising in any bilateral talks or proposed FTA that hj could affect the Halal industry.

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MODERN CLUSTER APPLICATIONS

for the Age-Old Halal The world today is hampered by the persistent nature of macroeconomic imbalances, failure to create a sustainable system for global trade and the continuous fight against poverty. The development of new industrial clusters is an important answer to all these problems.

Words By MARCO TIEMAN

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THE HALAL INDUSTRY HAS SEEN AN EXPONENTIAL GROWTH OVER THE PAST FEW YEARS, WHICH IS ONLY THE BEGINNING OF A FAST GROWING AND LUCRATIVE INDUSTRY. AS THE HALAL INDUSTRY IS AT INFANCY STAGE, IT PROVIDES BIG OPPORTUNITIES FOR MUSLIM COUNTRIES TO TAKE A PROMINENT POSITION IN THIS INDUSTRY THROUGH DEVELOPING PRODUCTION AND SERVICE CAPABILITIES AT AN INTERNATIONAL LEVEL PLAYING FIELD. THIS ARTICLE WILL HIGHLIGHT WHICH INGREDIENTS AND STRATEGIES ARE CRITICAL FOR COUNTRIES TO ADOPT IN ORDER TO DEVELOP A SUSTAINABLE GLOBAL HALAL INDUSTRY.

‘T

THE CLUSTER RATIONALE he Competitive Advantage of Nations’ (Porter, 1990) shows that the 18th century work of Adam Smith and David Ricardo on factor comparative advantage cannot provide explanations for most of the trade that takes place today. More recent explanations involving macro-economic variables, cheap and abundant labour or natural resources, government policy, product life cycles or management practices are equally unsatisfactory. Porter shifts the focus to specific industries in his quest for a better paradigm. At this microlevel, competitiveness is the result of either low costs or differentiation, which in turn depends on a number of factors

such as: economies of scale, technology development, size of the home base and so on. An important question is: why do these determinants arise in a certain specific location? There appears to be a relationship between geographical concentrations, so called clustering of industries and performance advantages. Michael Porter defines clusters this way (Porter, 1998): Clusters are geographic concentrations of interconnected companies and institutions in a particular field. Clusters encompass an array of linked industries and other entities important to competition. They include, for example, suppliers of specialized inputs such as components, machinery, and services, and providers of specialized infrastructure. Clusters also often extend downstream to channels and customers and laterally to manufacturers of complementary products and to companies in industries related by skills, technologies or common inputs. Finally, many clusters include governmental and other institutions - such as universities, standardsetting agencies, think tanks, vocational training providers, and trade associations - that provide specialized training, education, information, research, and technical support. Thompson in his book ‘Organizations in action: Social science bases of administrative theory’ (1967) identifies three types of interdependence: pooled, sequential and reciprocal. Pooled interdependence, the

simplest form, occurs when each individual in a group makes a discrete, well-defined contribution to a given task. Sequential interdependence refers to serially structured tasks, when the activities of a firm or agent precede those of another. Finally, reciprocal interdependence involves simultaneous, ongoing relationships between parties in which each agent’s input is dependent on the others’ output and vice-versa. In the case of reciprocal interdependence, agents are mutually dependent on the choices and actions made by each other. The same is true for a cluster. One can expect recurring, deep, intertwined relationships between companies and institutes. Companies and institutes in this case are likely to be tightly coupled: the knowledge of one entity strongly depends on the knowledge of another, i.e. there is knowledge co-specialisation. Michael Porter (1990) argues competition is a driving force behind cluster development. Clustering is a dynamic process, and as one competitive firm grows, it generates demand for other related industries. As the cluster develops, it becomes a mutually reinforcing system where benefits flow backwards and forwards throughout the industries in the cluster. The Halal industry in a country (and in some cases even cross-border) can be seen as a cluster with clear reciprocal interdependence relationships, consisting of various important components such as manufacturing, trade, logistics, Halal certification and Islamic banking.

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Figure 1: THE DETERMINANTS OF NATIONAL ADVANTAGE

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The application of the cluster thinking for the Halal industry will make it possible to enhance the value creation of the Halal industry in a particular country and increase productivity of companies in the cluster, drive innovation in the Halal industry and stimulate the development of new businesses. WHAT ARE THE INGREDIENTS OF A SUCCESSFUL HALAL CLUSTER? The model (refer Figure 1) shows the determinants of National Advantage, also called ‘Porter’s Diamond Model’. According to the Diamond Model of Michael E. Porter (1990) four interrelated facets are critical for the Halal cluster, each of which represent a determinant of a national advantage: Factor Conditions • The position in factors of Halal production, such as human resources, knowledge resources (universities and R&D in Halal), Islamic banking sector, Infrastructure (transportation & logistics infrastructure, ICT, etc.) necessary to compete in a given industry. A factor pool is a depreciating basis for sustainable advantage unless it is constantly upgraded and specialised. Demand Conditions • The composition of home demand for the Halal industry is the root of national advantage, while the size and pattern of growth of home demand can amplify this advantage by affecting investment behaviour, timing and motivation. Next to that the influence

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of internationalisation on the domestic industry has proven to have a positive contribution to the competitive advantage. Related and Supporting Industries • The presence in the nation of internationally competitive supplier industries and related industries in Halal creates advantages in downstream industries. Firm Strategy, Structure and Rivalry • The conditions how companies are created, organised, and managed, and the nature of domestic rivalry. The pattern of rivalry at home has a profound role to play in the process of innovation and the ultimate prospects for international success. The above determinants, individually and as a system, create the environment in which a nation’s firms are born and compete. According to Porter, nations are most likely to succeed industries or industry segments where the national diamond is most favourable.

“Chance” and the “government” are two factors that influence these four determinants, but are not determinants themselves. Chance events are important as they create discontinuities that allow shifts in competitive position. Government has an important influence on national competitive advantage, although its role is inevitably partial. It cannot be the only source of national advantage. Together these six factors form a Halal system that differs from location to location and from country to country, thus explaining why some Halal industries succeed in a particular country. Not all six factors need to be optimal for a Halal cluster to be successful! In order to develop a sustainable Halal industry the sources of competitive advantage need to be widened and upgraded. The following critical ingredients of a Halal Industrial cluster can identified: The development of dynamic advantages in the Halal Industry: faster innovation, early mover advantages, pressure for upgrading. Education, Training and Research in Halal are critical success factors for a Halal Industry. Development of a Halal industry model that is unique, so that the entire system is difficult and timeconsuming to duplicate. Geographical concentration of the Halal Industry in a country. This is important as the Halal Industry is interdependent and geographical concentration simplifies communication and reduces communication costs. Speed and efficacy with which the entire diamond develops: The actual growth of a Halal industry in a country is an important measurement of a competitive advantage. Home base companies.

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THE REALISATION OF AN ENVIRONMENT WHERE YOUNG ENTREPRENEURS CAN EASILY SET-UP A COMPANY, RECEIVE GUIDANCE FROM EXPERTS AND ACCESS TO ISLAMIC FUNDS AND GOVERNMENT SUBSIDIES ARE IMPORTANT FOR A DYNAMIC HALAL INDUSTRY.

A strong cluster requires the establishment of world class local companies that operate at an international level playing field. Entrepreneur development is therefore critical in realising this home base. Furthermore, a successful Halal Cluster should be C4-compliant (Van Geijn, 2005), that is: • Correct: The Halal Industry is matching the highest Halal Standards; • Consistent: The Halal and Shariah principles are consistently followed through the Halal Industry; • Complete: The key cluster components should be as much as possible be geographically concentrated in a country; • Clear: The Halal Industry Model of a country should match the expectations of the Halal Industry and its key stakeholders. THE NEXT STEPS FOR THE HALAL INDUSTRY Supply Chain Integrity Integrity of Halal food supply chains is becoming an increasingly important topic. This is the result of two key developments that put pressure on the Halal supply chain. First of all, the Halal Industry (from both the side of the manufacturer and retailer) puts higher demands on the Halal supply chain in terms of quality control and traceability. Underlining developments that triggered this development were an increased awareness of the consumer on the importance of a healthy lifestyle, food quality and food safety as well as the fact that governments around the world have implemented more stringent food quality and safety regulations for the industry to comply with. Secondly, globalisation of the world has led to a global exposure of supply chains in terms of safety and security. As the Halal integrity is at stake, the control of Halal food supply chains becomes critical for the future and should be addressed by the Halal industry as well as the academics to provide sustainable solutions.

Entrepreneur Development Evidence supports that countries with a vibrant Small Medium Enterprises environment, have led to innovation and exponential growth of certain industries. The realisation of an environment where young entrepreneurs can easily set-up a company, receive guidance from experts and access to Islamic funds and government subsidies are important for a dynamic Halal industry. A cooperative model championed by the private sector itself is a successful formula to combine purchase and sales power to have access to the international market. Education & Training In order to support the Halal industry to move up the value chain beyond production processes and products, a pool of well educated workers that are able to adapt to the changing environment is a must. Therefore the quality of the education system in providing secondary and tertiary education is important. Secondly, it is critical for the Halal industry to provide vocational and continuous on-the-job training to ensure efficiency and productivity of the workforce. The Halal industry can shape the education institutes in many ways. Amongst others, this covers identifying the needs of the industry in terms of education & training, planning of curriculum, placing graduates, and developing working relationships

with faculty in disciplines of interest to help the faculties understand the needs of the industry. Research The development of Halal Research centres will be important for the development of new products and technologies in Halal. This translates into incentives for Halal research but also by breaking down any possible thresholds for the individuals and companies to undertake research in a particular country. CONCLUSION The application of the cluster thinking for the Halal industry will make it possible to enhance the value creation of the Halal industry in a particular country and increase productivity of companies in the cluster, drive innovation in the Halal industry and stimulate the development of new businesses. For the Halal industry the cluster approach provides direct insight into the current foundations of an existing Halal industry in a country. Secondly, the cluster approach can assist in assessing the most suitable strategy and success factors in developing a unique and sustainable Halal Industrial cluster that is based on a competitive advantage. As the Halal industry in going through an enormous growth, the cluster approach can provide guidance for countries that are determined to have the Halal industry as a cornerstone of their economy. hj References Geijn, R. Van (2005), Natural Business Excellence, Bangkok Porter, M.E. (1990), Competitive Advantage of Nations, New York. Porter, M.E. (1998), New Economics of Competition, Harvard Business Review, Nov. - Dec. 1998. Thompson, J.D. (1967), Organizations in Action: Social Science Bases of Administrative Theory, New York, McGraw-Hill. Tieman, M. (2007), Halal Logistics Orchestrating Model, The Halal Journal January-February 2007, p 32-33.

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If one were to follow closely the developments of the Halal industry, you will notice that major corporations are positioning themselves to grab a slice of the Halal market pie. But after all the Halal transactions and Halal proﬁts, what else can corporations do to ensure sustained development?

Nurturing Society Words By HARIZ KAMAL

through Corporate Social Responsibility straight and simple answer to the above question is to have continuous pursuit of excellence in ensuring sustainable development within the market the corporation operates in. A way of doing this is through benchmarking, or the act of identifying the industry’s best practices, and comparing and adapting them to attain more efficient and effective processes in achieving the intended result. For Halal industry players, the best benchmarking strategy is to adopt the Waqf method of revitalising and ensuring further sustainability in the society that the company operates in. In essence, Waqf is defined as a philanthropic or charitable endowment whereby the corpus of the Waqf will always remain intact. During the period of the Ottoman Empire, Waqf was known to be the backbone of social development, an institution that helped stimulate social justices, community developments, educational support and even poverty alleviation. The Waqf revenues are designated to be spent for ongoing expenditures, with the funds designated to specified areas such as education, health and even research. Thus, it is an institution that provides long term sustainable solutions to many of the concerns within the community. The legal procedure of establishing a Waqf as applied during the Ottoman Empire has three steps, according to Ahmet Akgunduz in his book The Pious Foundation and Ottoman Practise. The first is Waqf being accepted as a unilateral contract established with the open declaration of the donor’s intention of establishing a Waqf. There are conditions for the Waqf declaration to be valid. These are that the donor cannot set any conditions for the endowment, the declaration must not contain any ambiguity and that the endowment must not be temporary. The second component is called akarat, or the revenue resources allocated for the usage of the Waqf.

The third component is called waqfiyye, which is the document that describes the principles and public aims for the Waqf to be established, and is administered by a mutawalli, a modern equivalent to the board of directors. According to Zeinoul Abedien Cajee from Awqaf South Africa, it has been recounted in various literatures that the entire health, education and welfare budget during the Istanbulbased Osmanli caliphate, came from its charitable foundations. He further added that the unfortunate invasion, occupation and colonisation by EuroChristian powers caused a wave of destruction of indigenous cultures, languages, the Waqf institution being one of the main casualties. However, with the current practice of corporate social responsibility (CSR) projects, there is hope yet in revitalising this institution. Since Waqf is also seen as an economic redistribution mechanism where funds are allocated for specific areas, a Halal company practicing CSR that incorporates Waqf could designate the funds for research purposes. This will undoubtedly create more jobs and could further develop the Halal industry and at the same time, increase the company’s brand and corporate image. Not only that, companies will also have competitive advantages in the form of improved financial performance,

enhanced brand image and reputation, an increased ability to attract and retain quality workforce, more efficient risk management, and be able to attract more sophisticated institutional investors. As it is, CSR encompasses a wide spectrum of activities ranging from business ethics, corporate governance, and investing in environmental sustainability and community investment. As a measure of significance, in his annual 2007 Malaysian budget speech, Prime Minister Dato’ Seri Abdullah Ahmad Badawi had encouraged public listed companies to adopt and care for charitable institutions such as welfare homes and orphanages, old folks and shelter homes, even dialysis and rehabilitation centres as well as encourage their employees to participate in these programmes. A study has shown that global consumers across the world are very likely to accept or reject a corporation based on its reputation for social and environmental responsibility. It also revealed that eight out of ten consumers in Malaysia are more likely to purchase a product or service from a corporation with responsible business practices; while six out of ten said they would refrain from purchasing a product or service if the corporation failed to follow ethical business practices. In Malaysia, Johor Corporation

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Pix: The Sultanahmed Mosque in Istanbul. This is a fine example of a Waqf institution where apart from housing a beautiful mosque, it also houses various other public amenities such as schools, public kitchens, local housing, even public baths! And they are all free!

(JCorp) is one exemplary institution taking the lead in incorporating Waqf in all of its CSR programs. Led by Tan Sri Muhammad Ali Hashim, JCorp has instituted various Waqf projects to help nurture the society. Most notable is the An-Nur Waqaf Clinic project in 1999 with its first outlet opened for business at the Kotaraya Plaza in Johor Bahru. Two more clinics were later added, one each at Pasir Gudang and Batu Pahat. In its first year, the AnNur Waqaf Clinic in Kotaraya treated more than 9,000 patients, treating and consulting patients at reasonable fees without discriminating race or religion. An integral component of these clinics is the Dialysis Centre. Most importantly, the operation of these clinics and dialysis centres is entirely funded using Waqf funds. It is usually invested in either social or religious assets of the society such as the universities, schools, research centres, clinics and so on. These are important components to further develop the society and ultimately, the Halal industry. Just like the human body, every part is essential for the body to function. The same goes for the Halal industry, where every component of the industry, be it the manufacturers, producers, consumers, Halal meat, logistics, packaging, finance and research, are all needed to operate accordingly, to reach its fullest potential. With everyone playing their part and incorporating Waqf, it will help to nurture society by contributing funds to develop education, health as well as research. Therefore, every component of society is needed to ensure that the industry develops and prosper. Around the world, there have been setbacks here and there within the fundamental issues of education and health that may disrupt any business operations. For example, according to a recent Guardian survey, tuition fees for undergraduates in England will rise to approximately £6,000 a year or even more to cover the increasing tuition costs. It is more or less the same in Zimbabwe, where parents not only have to contend with fees they cannot afford, but also with expensive essentials like uniforms, which now cost 600 times more than they did in 2006. If nothing is done to curb this, corporations and industries may not find any qualified graduates to hire one day, or in the case of the Halal industry, Halal professionals. How can the Halal industry be fully developed when there are no qualified Halal professionals for research, audit, etc? Progress of the industry will undeniably be stagnate. Existing inequalities in wealth and education will inevitably lead to other inequalities such as market opportunities, living environment and the general quality of life. The World Bank recently quoted that, “A better quality of life generally calls for higher incomes for all, but in developing countries, this involves much more.”

There is therefore a serious need for major players to identify the needs of the society to improve both the quality of life of its society as well as to improve profits. “It encompasses education, higher standards of health and nutrition, less poverty, a cleaner environment, more equal opportunities, greater individual freedom and a better cultural life.” All this is to further encourage social development as quoted in the Al Quran, in Surah AlImran which calls for believers to persevere in patience and constancy, to strengthen each other, and it invites people to enjoin and do what is good and right. There is therefore a serious need for major players to identify the needs of the society to improve both the quality of life of its society as well as to improve profits. Integration is vital, especially between key industry players, corporations and the consumers and of course, between the industry

and the society that it operates in. Integrating Waqf in CSR is therefore the next best step for corporations within the Halal industry. As Zeinoul Abedien Cajee mentioned, the Waqf concept is actually flexible and may be directed towards any worthwhile and Shariah compliant needs, and may be used for humanitarian purposes beyond Muslim exclusivity. The same can be said with Halal, which is indeed for all mankind. In addition to making profits, obeying the law and being ethical, Halal is also about being a good corporate citizen. Thus Waqf is also an investment for the future and through CSR programs, the company will ensure perpetuity. hj

Did you know? The Al Azhar Mosque in Egypt was founded over a thousand years ago and is one of the largest and most elaborate institutions of higher learning in history. Students from every part of the world come to study there and are even entitled to a monthly allowance. Throughout the mosque’s history, all the services it provides have been funded by the revenues from individual Waqf. Zubida’s Waterway in Mecca was a Waqf initiated by Zubida, the wife of the famous Muslim Caliph Haroun al Rashid. She ordered a channel to be dug directing water to the holy city of Mecca ensuring pilgrims to have free access to water during their Hajj. Many wealthy Muslims also participated by staking a Waqf around the channel, providing services to the pilgrims. The Al Noori Hospital in Damascus was built by Sultan Noor al Din Al Shahid in 1145 AD to exquisite architectural standards, and was designated to provide the poor with all the health requirements that they needed. Medicines were readily available and the hospital was fully funded and serviced by revenues from individual Waqf. The Qalawoon Hospital in Cairo was initiated by Al Mansoor Saif al Din Qalawoon in 1284 AD, converted from what originally a palace for one of the Princesess of Cairo. The hospital was distinguished by the quality of treatment and amenities which it offered. In the grounds of the hospital there were also a school, a library and a mosque. The entire institution was funded solely from Waqf donations. Wealthy individuals would stake a Waqf of at least 1000 Dirhams (silver coins) a year.

References: IRIN, March 6, 2007 The Guardian, January 18, 2007 Waqf-Based Microfinance: Realising the social role of Islamic Finance, Habib Ahmed Revitalising the institution of Awqaf in developing the community, Zeinoul Abedin Cajee, Awaqf South Africa The role of Waqf in improving the ummah welfare, Professor Dr. Monzer Kahf

Waqf System as a Redistribution Mechanism in Ottoman Empire, Birol Baskan, Northwestern University 2007 Budget Speech by YAB Dato’ Seri Abdullah Bin HJ. Ahmad Badawi, September 1, 2006 www.islamic-relief.com, www. jcorp.com.my, awqafsa.org.za, www.theedgedaily.com, www.sc.com.my

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Philippines Serious about Halal

In the wake of expanding opportunities in the global Halal market, the Philippines is set to be bullish in its developments and positioning towards the creation of a strong Halal trade and industry sector in the country. BY HAZEL HASSAN HISHAM

THE PHILIPPINES’ GOVERNMENT aims to gain a foothold in the global Halal food industry by embarking on several important initiatives, including the establishment of a Halal technical committee spearheaded by the Department of Trade and Industry. Historically, Islam is one of the oldest organised religions to be established in the Philippines. Its origins in the country may be dated to as early as the 14th century, with the arrival of the Arab and Malay Muslim traders

One of the very first churches built by the Jesuits in the Philippines. Despite having a pre-dominantly Christian population, the Philippines’ government have realised early on that the country could not afford to be left behind in the development of the global Halal market.

who converted some of the native inhabitants in the southwestern Philippine islands. Filipino Muslims are said to have formed 5 per cent of the country’s population and their presence has proven that there is a market ready to be tapped. Mostly residing in the Southern part of the country, sources estimate that there are more than 10 million Muslims throughout the Philippines and there are a growing number of Muslim communities sprouting in the regions of Luzon and

the Visayas. The target market within the country itself is growing, thus increasing the market share of this potential enterprise. Apart from the demand for Halal products that continues to increase rapidly given that Islam is deemed to be the world’s fastest growing religion, there appears to be a high level of general interest and acceptance for Halal products by other communities. In light of the burgeoning Halal boom in the Philippines, the Autonomous Region of

Muslim Mindanao (ARMM) has taken aggressive steps to establish Halal food supplies in the country. Since the beginning of 2006, the ARMM has also continuously initiated moves towards strengthening the Halal industry in the Southern Philippines. Muslim consumers throughout the country are anticipating the increase in production and distribution of Halal items. With the cooperation and joint efforts by Muslim associations, consumers are

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fast track | ASIA The Philippines, through its’ DTI’s Bureau of Export Trade Promotion and the Philippine Trade and Investment Centres, had been working for the accreditation of domestic Halal certifiers to open more markets for the country’s exporters, especially in the lucrative Halal markets in the Middle East. also looking towards a stricter implementation of labelling for their Halal produced products for domestic consumption. Taking a stride further, the Department of Trade and Industry (DTI) has initiated the preparation for a national standard for the Philippines’ Halal food products. This gesture is expected to help domestic industries tap the US$150 billion global Muslim food market. By food safety standards, Halal is considered a quality control system by itself that puts emphasis on critical control points involving hygienic and disease-free preparation of foods from farm to plate. It has come to be more than a religious issue but a consumer rights issue. It has also become a lifestyle. The Philippines, through the DTI’s Bureau of Export Trade Promotion and the Philippine Trade and Investment Centres, had been working for the accreditation of domestic Halal certifiers to open more markets for the country’s exporters, especially in the lucrative Halal markets in the Middle East. The DTI will also determine who will supervise and verify the compliance of Philippine exports to Halal rules. With the current developments, the DTI looks set to continue to promote greater awareness of Halal market opportunities and encourage local Halal producers and exporters to tap them. The Philippine government will also study the possibility of the Philippines becoming a major player in this industry through the establishment of a Halal authority that would certify the compliance with Islamic practices in food preparation. There have been a few challenges and setbacks in the

establishment of this industry. Earlier this year, Philippine’s Trade Undersecretary Carissa C. Evangelista announced that the lack of product standards, aside from a unified Halal certification scheme, was one of the major reasons why the development of Philippines’ Halal trade has barely taken off. On December 23, 2005, President Gloria Arroyo issued the Memorandum Order 201 directing the Departments of Trade and Industry, Agriculture, Science and Technology, Health, Tourism and the Office of Muslim Affairs to get their acts together and harmonise all Halal export development programs for the national government. They have also been trusted to ensure compliance with international standards and the effective implementation of the Halal Trade Development Program of the country. The six mandated ministries have agreed to pursue a Consolidated Halal Action Plan covering the period 2006-07. This move was aimed to further strengthen and kick off the country’s Halal industry developments, although the country has no national Halal standards or guidelines as well as a Halal accreditation agency, prompting stakeholders to seek recognition from international Halal certifying bodies to gain credibility and competence. In the latest development, a newly formed Halal certifying group, the Mindanao Halal Authority (MINHA) was finally set up in Mindanao and is now ready to issue certification. Local officials became more optimistic when the authority was set up. Amidst the Philippine government’s effort to unify the country’s various Halal certification bodies, MINHA emerged to be the saviour and vehicle.

Registered with the Securities and Exchange Commission as the business arm of the Muslim Business Forum (MBF), MINHA specifically takes charge. A central platform will give a clearer direction for developing strategies to remain competitive and to meet various challenges posed by the advent of globalisation and trade liberalisation. By working together, local manufacturers may be able to increase the research and development content of their products in order to add higher value. Merely relying on the Halal label alone may not be sufficient to survive a challenging global market for Halal products. In collaboration with competent ulamas in the region, MBF has recently completed the Philippines’ first Halal standards and its corresponding operations manual. MBF is also getting external support from Halal certification authorities in Malaysia, Australia, Europe and the Pacific Islands to further strengthen their position. With all the strategies and certification tucked under its belt, MINHA is more than ready to certify. Initiating bilateral recognition of local Halal certifying bodies by the auditing, assessment and accrediting agencies of Halal importing countries will finally put to rest the nagging question of whether the Philippines will ever be ready to face the challenges in the global Halal market place. Already, two firms are forming a joint venture to provide Halal poultry products to the Middle East. Monte Maria Agro-Industrial Development Corp. and Maharlika AgroMarine Ventures Corp. signed

an agreement in March this year to form the venture in Brunei Darussalam. The corporation, which will have an estimated annual production capacity of 212,456 metric tons, expects the first shipment of poultry to the Middle East soon. The accreditation of Philippines Halal certifiers will ensure that shipments, particularly of meat products, do not get rejected, but instead are accepted by importing markets where Halal certification is required. Once giant food companies in Philippines adapt well to Muslim Halal practices in food production, Muslims will have bigger and more hiring opportunities that would benefit them by addressing problems of poverty and discrimination in the workplace. Sheikh Salih D. Musa, an Islamic scholar from General Santos City, who is concurrently the secretary-general of Philippines’ Halal Fatwa Council and local director of the World Assembly of Muslim Youth, was hopeful that unemployment, a plague among Moro Muslim communities, would be reduced when the country gets its slice in supplying Halal-certified products to the Middle Eastern countries. The newly formed Halal certification body will issue a Halal seal for products that will meet international Halal standards. MBF is also hopeful that the Halal industry, once it penetrates the world market with Mindanao as the Halal hub of the country, will surely boost Philippine’s exports and thus create a positive economic outlook that ripples towards the establishing of a more stabilised economy for its Muslim community.

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fast track | ASIA The Niujie Muslim Mosque

Halal in China is undergoing tremendous growth. Is it now time for outside investors to invite themselves in? That entirely depends on which side of the fence they are planning to play in.

Investing in Halal China – What you need to know BY MOHD ADLY RIZAL

SINCE CHINA INTRODUCED its major economic reforms in 1978, the ‘Dragon Empire’ has grown at an annual average rate of over nine percent and her real GNP per capita has increased almost four folds. One of the reforms that contributed to the fast growth was identified as the open door policy initiated in 1979, which led to increased international linkages with the global world. As a result, the country’s foreign trade system has undergone a complete reorientation, transforming China into a country where foreign trade serves as the primary engine of growth. Hence, from an insignificant prereform position, China is today one of the major international traders and a significant participant to the world capital markets. Parallel to the economic reform, religious freedom was declared within the same year. Since then, the Chinese Muslims have not wasted time in expressing their convictions. According to Malaysian External Trade Development Corporation (MATRADE), the Chinese Muslim population as of 2006 has grown to approximately 30 million people. Has this presented a lucrative opportunity for foreign investments to enter into the Halal market in China? That depends entirely on which side of the fence you are on.

MUSLIM ENTERPRISES IN CHINA There is currently a strong demand for Halal products in China. However, with the exception of a few home grown medium/large scale enterprises which has successfully implemented international best practices for food processing and manufacturing, most of the small enterprises (SME) still use traditional operating standards. This is due to the fact that Muslim SMEs lack the proper financing, business and technical expertise to compete in the local markets. Assistance is required from foreign investors to expand and upgrade their processes to international standards and in this case, the Chinese Muslims are receptive to investors from Muslim countries such as Malaysia. In addition, China currently lacks professional Muslims that are knowledgeable in international business and technical practices for the Halal Industry. Investments are required to upgrade the business management capabilities of the SMEs, manufacturing operations, acquire better technical expertise and introduce international best practices and standards. The objective of the investments is to gain market share in the local markets and the gradual expansion into the international markets. A successful execution of these objectives will ensure lucrative returns to

Halal butcher in public market

investors assisting local producers in developing the Chinese Halal market. From the market demand perspective, 17th January 2003 marks a historical point for the development of Halal industry in the country with the unveiling of the first comprehensive Islamic supermarket in China. Located in the Niujie District in Beijing, the supermarket offers over nine thousand items with over three thousand products specific to the Muslim market. A small food court offers a range of tasty snacks, noodles and dumplings. The Niujie Islamic supermarket not only provides a one-stop centre for Muslims to fulfill their dietary requirements but also creates a channel for local Muslim enterprises to effectively market their Halal products to a wider range of consumers.

INVESTING IN CHINA Leveraging on the low production costs prevalent in most parts of China, Chinese enterprises are more inclined in fostering partnership with foreign companies to develop the Halal industry locally and abroad rather than trading in imported products. While companies with strong product offering can still penetrate the local markets, this is usually

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Halal product in Niujie Islamic supermarket

achieved by partnering with the local Muslim associations. Companies can leverage on the strong influence associations have over the Halal consumer market in the area. For example, in Xinjang, an organisation representing the Xinjiang Muslim food industry is the Urumchi Muslim Food Association. Abu Bakar Yusof, currently the Malaysian Trade Commissioner in Beijing offers some advice for Malaysian companies with intentions of investing in the country.

the report provides, it is better to identify your business risks upfront rather than losing out later.

1. Joint Venture/Partnership

Abu Bakar advised Malaysian companies and investors to seek advice from MATRADE from the early days of their dealings with the Chinese. He invites Malaysian companies to leverage on MATRADE’s experience in dealing with the local businesses so that they can avoid pitfalls experienced by other Malaysian companies before them. Some companies seek advice only when problems occur and in some cases, assistance cannot be channeled in time. From another perspective, Hoo Kok Keong, a Malaysian regional sales director with more than five years experience in penetrating the Chinese markets cautioned companies to read the fine print when dealing with the State governments. He added that while the state governments are generally very helpful in assisting companies to set up businesses in China, their exit clauses can be less than favorable should things turn sour. He cited examples where companies were trapped when they signed a ten-year factory lease and for some unforeseen circumstances, had to exit the market after three years. The company had to pay the remaining seven year-lease payment instead of just a hefty penalty. Some state governments even require that investors leave all their machinery and equipment behind should they exit the market. However, he added that while these exit clauses carry severe penalties, many companies have

It is preferable that investors select suitable local business partners. The Chinese are more accustomed to the ways of doing business in China. While a partnership with the locals does not guarantee a successful outcome of investment, the chance of success will greatly increase. In addition, the lack of communication issue can be addressed by having a local partner.

2. Understand the Local Laws and Customs of the Area This is where a partnership with a local enterprise bears fruit. The local laws vary in different states and investors must understand how these local laws and customs affect the way they do business and operate in China. This includes clarifying all hidden costs and expenses required in running the business.

3. Conduct Independent Feasibility Study on your markets Conduct an independent feasibility study to confirm your assumptions on the Chinese market and set the right direction for your company from day one. An average cost for a feasibility study is approximately USD10,000. According to Abu Bakar, while this figure can be a bit high for some companies looking at investing in this country and some are skeptical at the value

4. Leverage on MATRADE’s experience and resources in China MATRADE is committed to assisting Malaysian companies do business in China. In addition to experienced staff, there is a MATRADE resource centre in Beijing with business reports and periodicals useful in getting an early insight into the Chinese markets.

Abu Bakar advised Malaysian companies and investors to seek advice from MATRADE from the early days of their dealings with the Chinese. He invites Malaysian companies to leverage on MATRADE’s experience in dealing with the local businesses so that they can avoid pitfalls experienced by other Malaysian companies before them. successfully penetrated the Chinese markets by partnering with the local government or an arm of the local government. It is all a matter of what value the investors bring to the table. Hoo views the Chinese way of conducting business similar to where Malaysia was forty years ago. The Chinese has only started to open up to the global markets and are going through what he terms as ‘phases of development’. Most Chinese businessmen place top emphasis on good relations with technical merit coming in a distant second place. He added that it is normal to expect problems if we insist in conducting business in China using customs that are not acceptable to the Chinese. The Halal Journal would like to thank the Malaysian Trade Commissioner in Beijing En. Abu Bakar Yusof, Minister Counsellor and Deputy Chief of Mission En. Azmil Zabidi, Pn.Karen Low Zabidi and En. Hoo Kok Keong for their contributions to this article.

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Malaysian agriculture funds to meet market needs Budding Malaysian agri-entrepreneurs with existing agriculture-related businesses, or who are simply looking to set up one, may ﬁnd comfort in knowing that another agri-speciﬁc fund is actually available, in addition to Bank Pertanian Malaysia’s (BPM) existing Fund for Food (3F) programme. BY RUZANNA MUHAMMAD

COMMERCE ASSET VENTURES SDN BHD (CAV) – one of Malaysia’s premier venture capital companies – is offering funds specifically for agriculture in addition to its other investment products. Established in September 2006, CAV’s Agro Fund holds a total sum of RM350 million with a tenure of up to 15 years for potential investee companies. Investments ranging from RM2RM20 million for agriculture-based businesses within their early to expansionary stages are available. Initiated with the primary objective to promote the development and growth of the agriculture industry in a holistic and integrated manner, CAV is looking to invest capital in emerging companies with viable business ventures. Their main investment focus is on the “integrated agro” concept, which includes investments in one of the following market segments: 1. Fisheries – inclusive of deep sea fishery; island and offshore aquaculture; seafood processing; and related downstream activities 2. Farming – inclusive of livestock farming; dairy and Halal meat processing and other related services; high-value industry and horticultural crop farming and related downstream activities 3. Biotechnology – inclusive of agro and aqua biotechnology and food technology. According to its associate director Mohd Jafni Mohd Alias, one of the first steps for agri-entrepreneurs to source these funds is to approach CAV with a proper business plan. Alternatively, an executive summary will suffice if a business plan is not ready. The business plan should include, though is not limited to, an executive summary of the project, a description of the product or service offered, a clear identification of the competitive advantage of the business or venture, market and competitor analysis, management team profile and most importantly, a financial forecast and its underlying assumptions. CAV, or more commonly known as Commerce-Ventures, is a leading venture capitalist in Malaysia that aims to develop their partners’ businesses by providing indispensable intellectual and financial resources. Whollyowned by the CIMB Group, CAV has adopted a people-driven philosophy, believing in working

closely with their partners. Aside from its Agro Fund, CAV also has three other investment products to meet the different risk profiles of their investors, including the Venture Capital Fund, the Private Equity Fund, and the Pre-Initial Public Offering (IPO) Fund. The Venture Capital Fund refers to investment funds allocated for companies in the start-up and early stages of development while the Private Equity Fund concerns investment funds allocated for company takeovers, commonly known as Management Buyout (MBO), Management by Interaction (MBI) or Leveraged Buyout (LBO). The Pre-IPO Fund, meanwhile, describes investment funds allocated for companies at the late development stages, the time frame for such an exercise being 18 months prior to IPO. To date, there are not many financial facilities to cater for agriculture-based activities throughout Malaysia. The most credible and established

funding is that which is offered by BPM – the Fund for Food (3F) which offers a minimum loan amount of RM10,000 to a maximum loan amount of RM5 million while the repayment tenure should not exceed 8 years. The drawback of 3F is: one would need to have in hand at least 60 per cent the amount of loan sought. A quick check among several local banks revealed that despite Malaysia’s call for agriculture to be the nation’s third engine of growth and for the creations of agri-entrepreneurs, there are currently no other specific funding programmes or schemes apart from BPM’s 3F Funds, offered by any other local banks for this sector. This assertion had been confirmed by an officer in BPM. However, local banks do offer general, non-descriptive loans and venture capital funds for budding entrepreneurs to start their businesses. The current scenario makes one wonder if Malaysia’s aim to be a net food importer by 2010 will actually materialise.

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fast track | ASIA

Transforming SMEs into World Players BY RUZANNA MOHAMMAD

RECOGNISING THE NEED to have a specialised agency to promote the development of Malaysia’s Small and Medium Industries (SMIs), SMIDEC, or the Small and Medium Industries Development Corporation specifically targets SMIs within the manufacturing sector through provisions of advisory services, fiscal and financial assistance, infrastructural facilities, market access and other support programmes. SMIDEC also envisions being the leading organisation in the development of Small and Medium Enterprises (SMEs), which will contribute to the economic growth and enhancement of Malaysia’s competitiveness. Their mission is to transform SMEs to be more vibrant, competitive and resilient, and to integrate them fully into the manufacturing and services sectors. With an eye to realising its mission and vision, SMIDEC stands to uphold its credibility and efficiency by focusing on its specific functions. The first is for SMIDEC to promote and coordinate the development of SMEs in Malaysia through promotional activities, establishment of regional offices, related studies, and the collation of information into a comprehensive database. Secondly, SMIDEC is responsible for providing technical and advisory support services, in collaboration with other related agencies involved in SMEs development through the SME Development Programmes, SME Information and Advisory Centre and SME Expert Advisory Panel (SEAP). SEAP is a programme implemented to strengthen technical advisory services to SMEs. This programme allows SMEs to apply for on-site assistance by industry experts, to transfer their technology expertise and industrial experience. SMIDEC, along with various relevant ministries and agencies, have implemented diverse programmes to nurture capabilities and enhance the productivity of SMEs. These programmes are aimed at upgrading the products and processes of SMEs, enhancing their productivity, providing knowledge and skills, assisting requirements of certification, acquisition of technology and commercialisation of research and development. These programmes are classified under six categories for each sector, including capacity building and human resource development programmes; technology development programmes; market access programmes; advisory services; promotion and outreach programmes and SME Industrial Sites and Incubator Centres. To prevent information overload for SMEs, a reliable referral centre to highlight various information and advice areas concerning their operations were also created. SMIDEC’s SME Information and Advisory Centre, which is readily equipped with toll-free lines, web-enabled information content, and regional offices that provides up-to-date and real-time information on technology, market, financing and SME Development Programmes. SMIDEC’s third function is to forge industrial linkages between SMEs and large companies or multinational corporations (MNCs), achieved through the Industrial Linkage Programme (ILP) and Global Supplier Programme (GSP). The ILP – supported and enhanced by SMIDEC’s existing financial schemes and developmental programmes – aims in developing domestic SMEs

SMALL AND MEDIUM INDUSTRIES DEVELOPMENT CORPORATION into competitive manufacturers and suppliers of parts and components, and related services to MNCs and large companies. Meanwhile, the GSP involves training in critical skills and linkage to MNCs and large companies done in collaboration with local Skills Development Centres. Through GSP, SMEs can develop itself to become competitive suppliers of parts and components, not only to MNCs in Malaysia, but also to their worldwide operations, through mentoring activities. SMIDEC also implements, coordinates, and monitors financial assistance schemes provided to SMEs through soft loans, grants and incentives – provided by the various ministries and their agencies – and other financial assistance such as venture capital and equity financing. The Government offers a range of grants and incentives – through its agencies – to provide greater financial accessibilities to the SMEs. The Government’s agencies include SMIDEC, Malaysia External Trade Development Corporation (MATRADE), Malaysia Industrial Development Authority (MIDA), Ministry of Agriculture and Agro-Based Industry (MOA),

and so on. They also provide partial grants to finance product, process and quality improvements, market development, skills upgrading, factory audit and acquisition of strategic technology. Soft Loan for SMEs meanwhile, is a funding scheme by Malaysia Industrial Development Finance (MIDF), intended for promoting the development of SMEs in Malaysia. This soft loan scheme is to assist in existing, and new start-up companies in project, fixed assets and working capital financing. The loan size is a minimum of RM50,000 to a maximum of RM5 million for Project Financing (including preoperational expenses of up to RM250,000), RM2.5 million for Fixed Assets Financing and RM1 million for Working Capital Financing. The repayment tenure, including grace period is up to 15 years for land and building, five to ten years for machinery and equipments, up to three years for Information Technology (IT) equipments and Term Working Capital. Finally, SMIDEC functions to collaborate with other local and international SME-related agencies to develop SMEs through programmes such as participation in international and regional cooperation meetings and forums, skills enhancement and attachment programmes for employees of SMEs, and placement of foreign experts in selected SMEs. Under SMIDEC’s wings, SMEs are expected to transform to be more vibrant, competitive, resilient, and fully integrated into the manufacturing and services sectors, contributing more effectively to Malaysia’s economic growth.

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fast track | AFRICA

Never too young for Halal. Kids visiting the National Independent Halal Trust stand at a recent fair in South Africa.

Three biggest South African Halal certification bodies agree on one standard BY KAMARUL AZNAM KAMARUZAMAN

Three of the four largest South African Halal certiﬁcation bodies have agreed to use one common standard in their bid to regulate activities within the national Halal certiﬁcation industry. THE THREE South African Halal bodies - the Muslim Judicial Council (MJC), the Islamic Council of South Africa (ICSA) and the National Independent Halaal Trust (NIHT), have agreed to stop sowing “doubts and prejudices amongst the Muslim consumers” and work together for the betterment of the ummah. This historic consensus was reached through the initiatives of South Africa’s National Halaal Forum (NHF), a self-regulatory body with the Consumer Goods Council of South Africa (CGCSA) facilitating its meetings. Although the South African National Halaal Authority (SANHA) was originally part of the process, they were somehow not in the final list. But “the doors are still open

for them to re-join and play a constructive role,” said Moulana Abdool Wahab Wookay, NIHT chief executive officer. NHF held a very productive working session in Johannesburg on February 23 to identify and agree on common standards for Halal certification. Representatives of each member organisation as well as their Shariah law experts have reached consensus on a number of important Halal standards, including standards for slaughtering of animals at abattoirs and for certification of non-meat foodstuffs. “Because of the lack of uniformity here in South Africa, and sometimes deliberate spread of misinformation by certain parties, a great deal of doubt and prejudice was created amongst the Muslim

consumers,” added Moulana Abdool Wahab. He added that this created a great deal of confusion amongst the local food manufacturers. It was only sensible that a meeting of minds took place between the four Halal certifying bodies facilitated by CGCSA, which resulted in the signing of a Peace Accord that made provisions for the drafting of a Code of Conduct and a uniform Halaal standard. “This (the creation of a single standard) is the resulted outcome of bodies that have the interest of the Muslim ummah at heart to see this process through,” he added. Based on the initial agreements reached by the three parties, the first working session had successfully produced a set of uniform

Halal standards, which will be referred back to the members’ Shariah law experts for them to add various other technical certification details. In addition, a few more proposed standards remain to be discussed between the parties who hope to finalise these within the next 30 days. With the process now nearing completion and with more than two thirds of the key issues agreed upon, the parties are now confident that a final agreement on uniform Halal standards will, in fact, be in place before the end of May this year. The NHF is an active forum and the members meet on a monthly basis to proceed and deliver on the tasks allotted to different members. Healthy debates and discussions take place regularly and amicable resolutions are normally found. The initiative between the members of the NHF is unique to South Africa’s national Halal industry, which is now being regulated for the first time. There has also been a marked transformation in the relationship between the three organisations and a healthy respect has indeed developed. Asked if this is a precursor to the coming together of three bodies into one, Moulana remarked, “Hopefully this can be achieved and with the help of Allah Almighty, anything is possible. I hope the strides taken by us is South Africa can be followed in other countries and we are willing to share our experience with others around the world.”

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fast track | AUSTRALASIA

New President resides over Muslims in Australia

Muslims in Australia have someone new to rely on when the country’s peak body, the Australian Federation of Islamic Council (AFIC) elected a new president last February.

AFIC representatives interacting with primary school student at the Malek Fahd Primary School.

From left, Sabri Samson, secretary of the Tasmanian Muslim Association and Imam of Hobart mosque; Ikebal Patel, Chairman of AFIC with Dato’ Mustafa Abdul Rahman, director general of JAKIM during their visit to Malaysia recently. BY KAMARUL AZNAM KAMARUZAMAN

IKEBAL MOHAMMED ADAM PATEL, a qualified electrical engineer who migrated to Australia in December 1992 from Fiji, has over the years established himself as a person who is capable of working for the good of the ummah. His experience in Islamic societies started in Albury Wodonga, where as the President of the local Islamic society there, Ikebal worked hard in settling refugee’s families from war-torn Bosnia as well as refugees fleeing the regime of Iraq after the Gulf War. He was also active in helping the local universities with the settlement of overseas students. Having spent a considerable number of years living in regional and rural Australia (Albury Wodonga), and now working in regional New South Wales, Ikebal gets an opportunity to meet a lot of

the rural and regional Muslim communities. He was appointed in 2002 as an Executive Member of the peak national body representing the Muslims of Australia, the Australian Federation of Islamic Councils (AFIC). Subsequently, he was elected National Treasurer of AFIC. He has also been an active member of the ACT Muslim community working to bridge the Australian Muslim community and greater Australians. Among some of his achievements, he was instrumental in making the initial contact with the family of Douglas Wood who was taken hostage in Iraq in 2005 to offer support of the Australian Muslims in securing his release. Ikebal also worked behind the scenes with the Department of Foreign Affairs and Trade as well as the family of Douglas Wood and the Mufti of Australia, Sheik Tajuddin Al Hilaly. He secured funding for the Mufti’s expenses and was in constant contact with all parties in Iraq and in Australia until Douglas was released. Since the events of September 11, Bali bombings and other similar incidences, Ikebal worked on massive PR drive to improve the public’s perception of Muslims in Australia. This included doing radio, TV and print media interviews on various issues. He was also one of the main driving

forces in many AFIC initiatives and regularly addresses many forums on interfaith dialogue and harmony. Some examples include Rotary dinners, Order of Australia Interfaith gatherings annually, and the recent opening of Bergmann College at the ANU. Ikebal’s work within the AFIC is aimed at helping governments, volunteers and the community to facilitate the participation of people from different cultural and linguistic backgrounds in the community. This required intensive travelling to schools, councils, universities and other public places to talk on tolerance and understanding within diverse communities. As his colleague Mohamed Rahman, general manager of AFIC describes him, “He has helped promote peace and have contributed to pushing the society further on its way to becoming a harmonious and even more beautiful place, this being one of his greatest desires in his life. “He also has very strong commitment towards these various causes and as a team player shares this with his colleagues. And this enabled them to identify opportunities of making themselves active participants in sharing Australia’s joy, such as sporting glory, as well as sorrows and hurts, like the Douglas Wood hostage crises in Iraq where he personally got the Australian Muslims involved in his eventual release,” he said. From everybody here at The Halal Journal, congratulations on your appointment and we look forward to working with you in the future.

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fast track | EUROPE Turkish State Minister Kursad Tuzmen delivered his keynote address that had even the nonTurkish speaking delegates riled up.

Turkey hopes to boost trade ties with Asia-Pacific BY KAMARUL AZNAM KAMARUZAMAN

THE REPUBLIC OF TURKEY has extended its foreign trade bridge to the Asia-Pacific region and is offering itself to become the preferred gateway into the European market when it becomes a full member of the expanded European Union (EU) after 2010. State Minister Kursad Tuzmen said Turkey is also hoping to triple its exports to the region by signing more free trade agreements (FTAs) with Asia-Pacific countries and is also hoping to establish more bilateral and multilateral trade deals with the region’s businesses. As the focus for the future economy moves away from the West to the East, Turkey is looking to stamp a stronger foothold within the region’s trade and commercial arena. Asia-Pacific, an economic zone comprising of 14 countries including Australia, New Zealand, Papua New Guinea, South Korea, Japan, Singapore, Brunei, Thailand, Laos, Cambodia, Malaysia, Indonesia, Burma and Vietnam, accounted for 27.4 per cent

and 24.7 per cent of the world’s total exports and imports respectively in 2005. The region’s total foreign trade volume was US$5.4 trillion and six countries from this region are among the top 10 in total global trade. Total Turkish exports to the region currently represent only three per cent of the country’s total trade volume of US$423 billion, which, according to Kursad, “is significantly low”. The country’s current export to Asia-Pacific totalled US$33 billion while import amounts to US$20 billion. Turkey wants this to grow to US$500 billion and US$600 billion respectively by 2023. “I want to sell Turkey to the Asia-Pacific, by opening up big trade areas as it is a very important market. For us, social economic factors are important and we will not give up in becoming a member of the EU as it will boost the Turkish economy and trade in the AsiaPacific region,” said Kursad Organised by the Turkish Confederation of Businessmen and Industrialists or TUSKON, the latest trade bridge

meetings held at the Cevahir Congress and Culture Centre in Istanbul hosted business talks and trade matching between 1,200 Turkish businessmen and 220 Asia-Pacific entrepreneurs. The first and second trade meetings for Africa and Euroasia was held in May and September last year and had generated a business volume of US$2 billion and US$250 million respectively. The organisers were looking to secure US$3 billion for this third event. In line with the Prime Ministry’s Undersecretariat for Foreign Trade strategy of “developing commercial and economic relations with Asia-Pacific countries”, local Turkish businessmen are inviting businesses from all countries to work with them in import and export activities, and help contribute in other major developments within the country. “Turkey offers good opportunities, especially in the fields of construction equipment, iron and steel, oil products, textile and apparels, mining and food products,”

said Akif Alacaogullari, general secretary of the Bahcelievler Businessmen Association or BISAD. He also pointed out that Turkey’s construction sector is booming, while the automotive industry is achieving positive growth. Akif said Turkey in the seventies used to be the preferred contract manufacturer of automotive parts for many major European car makers. Now that the transfer of knowledge and technology is complete, many local manufacturers are hoping other Asian car manufacturers could utilise their expertise. “Our annual growth rate is about 7.1 per cent while we have very low tariff barriers, standing at 3.6 per cent, as compared with 30-50 per cent imposed by other countries. We also do not have tax incentives while corporation tax is 20 per cent. These factors have encouraged more foreign direct investments into the country and we hope businesses, especially from other Muslim countries, would come here and take up excellent opportunities that existed here in Turkey,” Akif added. The Pacific Summit is supported by the Foreign Ministry, the Foreign Trade Undersecretariat, the Turkish Exporters Assembly, the Association of Social and Economic Solidarity with Pacific Nations (PASIAD), the Turkish Cooperation and Development Agency (TIKA), the Istanbul Exporters Association (IIB), the General Secretariat of Istanbul Textile and the Apparel exporters Association (ITKIB). Economy Minister and chief negotiator with the EU, Ali Babacan, along with Industry and Commerce Minister Ali Coskun also participated in the summit, which took place under the auspices of State Minister Kursad Tuzmen.

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fast track | EUROPE

British Muslim farmer:

‘You are what you eat’ WHEN MUHAMMAD RIDHA PAYNE lost faith in the provenance of Halal meat, he began to rear his own range of locally sourced, ethically slaughtered organic meat. “In the past when people ate meat they knew where it came from and more importantly who slaughtered it,” says Muhammad Ridha to The Times, at his four-acre small-holding in Somerset. “These days very few Muslims can honestly say they know where their meat comes from, who reared the animal, what it was fed on and who slaughtered it.” The 31-year-old has just set up one of the country’s first organic Halal businesses, Abraham Natural Produce. Ridha rears chickens and goats

Visits to local abattoirs and people in the meat industry confirmed Ridha’s suspicion. “I found that not only is much of the meat not even Halal, but a lot of it is from poor quality animals that have been treated unjustly. Many animals are being reared in dreadful conditions, without seeing daylight or eating a blade of grass. There is no compassion exercised towards these animals.” Ridha says compassion towards an animal is essential to remain in keeping with the tayyib aspect of the Qur’an. “Tayyib means something that is wholesome, natural and good. Animals that have been reared in terrible conditions are not wholesome or natural.” Every animal for Abraham Natural Produce is slaughtered

“I found that not only is much of the meat not even Halal, but a lot of it is from poor quality animals that have been treated unjustly. Many animals are being reared in dreadful conditions, without seeing daylight or eating a blade of grass. There is no compassion exercised towards these animals.” and sources geese, turkey and lamb from local small-holders and farmers who share his vision for organic and ecofriendly farming. He says the business came about by accident after his family uprooted from London and moved to Somerset in a bid to live a more sustainable lifestyle. “One of the reasons we set up the business was because we didn’t trust that the meat we were buying from local butchers was Halal,” says Ridha.

by Ridha personally at a local abattoir to ensure the meat is a hundred per cent Halal. Halal refers to the way in which an animal is slaughtered - the arteries and neck are cut in a certain way to minimise pain and drain the blood, and a prayer must also be offered. Ridha says many abattoirs pay lip service to the Halal requirements and Muslims should be more wary when they see meat carrying the Halal logo. “We passionately believe

Muhammad Ridha and his young family. The Briton claims one of the reasons they set up the business was because they didn’t trust that the meat from local butchers was Halal.

that ‘you are what you eat’. Food that has been produced unethically will have a negative effect on you, spiritually and physically.” Ridha says his company is not registered with any regulatory body. Why? “At present we can’t afford to pay the necessary fees. As a result we recognise our meat is not organic in its legal sense but rather organically reared.” The transparency of Ridha’s business has impressed customers such as Maha El-

Matwally, who came across Abraham Natural Produce by chance on the Internet. “I was surprised,” she says. “Normally you either have Halal meat or organic meat. It’s very unusual to find a combination of both. I can eat meat with a peace of mind now.” - The Times Online

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advertorial

HOMEGROWN FAST FOOD FRANCHISE MAKING WAVES GLOBALLY

Marrybrown, Malaysia’s largest homegrown fast food franchise, believes that local support for their strong desire to make Malaysia proud on the global arena would eventually win them more market share.

hile other international fast food chains are looking to increase their presence in the local market, Marrybrown is trailing its sights on to the world stage, especially in Halal’s traditional hunting ground, the Middle East. “Our main strategic plan is to expand and capture more market share and improve the operating standard of franchisees, and to maintain consistent brand image all over,” said group managing director Nancy Liew. Since established in 1981, there have been more than 200 Marrybrown outlets set up in Malaysia, China, India, Sri Lanka, Saudi Arabia, Iran and the UAE, with up to 5,000 dedicated staff employed. Citing long term commitment to build the brand as their main difference to other fast food franchises, Liew says a lot of effort and hard work have been invested to make a local brand such as Marrybrown to be competitive on the global arena. The company’s commitment in providing variety, quality and value products have since earned them several recognitions and numerous local and international awards. “To make Malaysia proud, we need

determination and perseverance to compete, and have the self-belief that a Made-in-Malaysia concept is able to customise to any local delicacies competitively and if possible, be better,” she added. In Malaysia, Marrybrown customers look for the myriad of quality local delicacies, such as nasi lemak, spicy seafood porridge, chicken rice, curry fish and curry puff, which were customised to suit the local taste, preference and needs. This in itself, as Liew pointed out, is more than their competitor’s range of products. “Marrybrown, being a Malaysian brand, is also able to attract customers with good quality and value for money products and thus, giving customers a better choice to choose over other competing brands at a more affordable prices,” she said. To constantly maintain its edge, Marrybrown adopts a trickle down approach of its core values to their employees and franchisees. They do this by constant training, one-on-one dialogues and briefing sessions on what the brand stands for in terms of its commitment, determination and perseverance to make the brand succeed. Liew added that everybody is made to understand on the importance of each individual’s responsibility and

commitment from everybody’s collective efforts. This is vital to maintain the brand’s image by building brand promise through good deliverance of QSC standard. Understanding on the true definition of Halal and tayyib is also another requirement they constantly impose on staff and franchisees. For her, Halal is not just about proper slaughtering of animals, it is also about conforming to good cleanliness, hygiene and sanitation aspects of food handling. “Staff and franchisees are also required to observe good QSCV compliances set by the company by following closely with the requirement of good food handling practices and the right HACCP standards,” said Liew.

The company’s commitment in providing variety, quality and value products have since earned them several recognitions and numerous local and international awards A full time Halal Committee is also working to ensure that all foods prepared are 100% Halal. A committee comprising of Muslim employees advise and ensure full Halal compliance in all food preparations. For further enquiries, call Marrybrown Fried Chicken Sdn Bhd at +607331 6590 or log on to www.marrybrown.com.my.

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country in focus

Nothing Sheepish about the Land of Sheep

Words By TONG YEE SIONG

he oft-quoted statistic, that New Zealand has 20 sheep for each human, is wrong. That was two decades ago, when New Zealand was home to over 70 million sheep. Today, the population has declined to around 40 million, translating into a ratio of only 10 sheep to one human. Yet, that decline hasn’t stopped New Zealand from cornering half of all international trade in sheep meat, which more than qualifies the small South Pacific Ocean country as the Land of Sheep. It is also telling of the huge success story that is the New Zealand sheep industry. Despite fewer sheep, there has been more meat, and increased value, over the last 20 years due to research into product improvement as well as technological advancement. Thanks to vast arable land and temperate climate suitable for raising livestock, New Zealand is also one of the top five dairy exporters in the world, which collectively supply around 90 per cent of dairy products on the international market. There are over nine million beef and dairy cattle in New Zealand. Little wonder then that agricultural produce accounts for two-thirds of New Zealand’s total exports.

“THE LAND OF THE RINGS”, TOO In recent years, though, the country has also won itself another title: the Land of the Rings. New Zealand famously promoted itself as a tourist destination using the dramatic landscapes seen in “The Lord of the Rings” film trilogy. Through a creative approach of intertwining fantasy worlds with food, New Zealand has developed a unique brand of food tourism. Cashing in on its reputation for freshness and purity, New Zealand has been aggressively marketing its wines, honey, cheeses, breads, saffron, walnuts, truffles and olive oils abroad to lure more visitors. Since 2003, tourism has replaced dairy agriculture as New Zealand’s largest source of foreign earnings. Tertiary education is another area in

Now, New Zealand is a darling to investors, especially those involved in the global carry trade, where investors borrow cheaply in the currencies of countries with low interest rates to buy into high-yield currencies. which New Zealand has done remarkably well. Over a quarter of its university enrolments come from overseas, making the country top in terms of the proportion of foreign students of all university students among major players competing for international education dollars. In comparison, America has so many domestic students that it ranks only 13th, even though it attracts 21.6 per cent of the world’s 2.7 million foreign students. All these have worked well for New Zealand. The country’s economy has enjoyed one of the fastest growth rates among Organisation of Economic Co-operation and Development (OECD) members over the past several years. THE KIWI ECONOMIC BULL Since 2001, New Zealand’s economy has grown by an annual average of 3.8%, well

above the OECD average of 2 per cent. The OECD constantly refers to this as the deserved award for New Zealand’s wideranging economic reforms over the past 20 years. In fact, many believe the market liberalisation that New Zealand was pursuing in the 1980s and early 1990s was more dramatic that any other economy - including Margaret Thatcher’s Britain. It all started with, surprisingly, the Labour Government that came into power in New Zealand in 1984. Prior to that, New Zealand’s economy was on an unsustainable course, with enormous budget and current-account deficits and mounting inflationary pressure that was masked by comprehensive price controls. Under the Labour Government, the exchange rate was floated, foreignexchange controls were

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country in focus

scrapped and financial markets were deregulated. Trade tariffs were slashed and import licences abolished. The income tax rate was also cut. Subsidies to farming and manufacturing were eliminated while many government activities were privatised. New Zealand’s inflation rate has averaged just under 2 per cent over the past decade. The government has run a budget surplus since 1994, reducing its ratio of net public debt to gross domestic product (GDP) from 50 to 20 per cent . Now, New Zealand is a darling to investors, especially those involved in the global carry trade, where investors borrow cheaply in the currencies of countries with low interest rates to buy into high-yield currencies. Japanese investors have been particularly keen among those focusing on the yield spread between their domestic market and New Zealand, boosting the volume of yen-funded carry trades. Such strong demand - coupled with expectations that the Reserve Bank of New Zealand will soon raise the benchmark interest rate again, after the last hike to 7.5 per cent in March, to curb inflation - pushed the Kiwi dollar to its strongest in 22 years in mid-April. KNOWLEDGE FOR ECONOMIC TRANSFORMATION Despite a strong economic footing, New Zealand has wasted no time to ensure that it stays ahead. Even in the early 1990s, before “knowledge economy” caught on as a global buzz word, New Zealand had drawn up a blueprint to advocate the need to foster creative industries, biotechnology, information technology and so forth. As a result, knowledge workers made up 38 per cent of total employment in New Zealand for 2004, according to the OECD. This put New Zealand behind many Scandinavian and Western European countries, which enjoyed a score of closer to 40 per cent. Still, New Zealand is ahead of other more developed countries like France, where only 21 per cent of its employees are considered to be knowledge workers. Today, a solid range of niche manufacturing and service industries have developed in New Zealand. For instance, New Zealand is the leading producer of solarpowered lighthouses, which are doing well internationally and which are at less risk of being squeezed by big low-cost competitors. And amid rising oil prices and an earnest search for sustainable sources of energy, New Zealand is at the forefront of an experiment to exploit frees for fuel, with a high-tech twist. The idea is to make ethanol, a biofuel that usually comes from maize (corn) or sugar cane, from trees instead. Treethanol has particular appeal in countries

The New Zealand model - of stunning the animal before slaughtering it according to Halal principles is increasingly proving to be the compromise the industry is looking for.

that have a lot of trees and import a lot of fossil fuel. Top of the list is New Zealand: in 2005, the country exported lumber worth NZ$411 million (US$290 million) and imported fossil fuel costing NZ$4.5 billion (US$3.2 billion). In January 2007, several research institutes and companies in New Zealand announced a partnership to investigate the feasibility of producing enough ethanol from trees to fuel all the vehicles on New Zealand’s roads without fossil-fuel imports - in other words, to make the country self-sufficient in energy. THE HALAL APPEAL Still, for now, agriculture remains the central economic plank for New Zealand. While there is no official data on the value of the Halal segment, it is safe to say the business is one that New Zealand can ill-afford to ignore, judging by the intense lobbying from New Zealand’s meat industry when Malaysian withdrew New Zealand’s Halal certification in July 2005. At the time, Malaysia expressed concerns about electric immobilisation and ‘thoracic sticking” - severing

major blood vessels around the heart to drain the blood and make the animal die faster. In early April, however, Malaysia’s Fatwa Council ruled that thoracic sticking was allowed, subject to conditions. This makes it possible for New Zealand to soon resume its US$80-milliona-year beef and sheep meat export trade with Malaysia. Historically, New Zealand’s unique method of slaughtering lamb was developed to satisfy both religious practices and welfare concerns, particularly in developed countries like Britain. On the one hand, animal welfare activists have long argued that killing animals without stunning them first causes severe suffering. On the other hand, Muslims and Jews are obliged to slit the animals’ throats - which takes the animals up to two minutes to bleed to death - in accordance with their practices. The New Zealand model of stunning the animal before slaughtering it according to Halal principles - is increasingly proving to be the compromise the industry is looking for. Halal authorities in many countries now say it is not against Halal practice to “immobilise” animals, provided they are not actually killed before their throats are cut. In recent years, meat export industry players in New Zealand have expressed concern that the country is losing out to Australia, South Africa and India, where Halal butchery was becoming common. With the latest development of resuming meat trade, there is a great chance that New Zealand will work closely with Malaysia, now the chair of the Organisation of Islamic Conference (OIC) and a pioneer in setting Halal standards, to use the latter as the gateway for Muslim consumers hj worldwide, observers note.

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islamic finance

FROM FARM TO FORK TO FINANCING

:: THE BLUEPRINT TO A TRUE HALAL ECONOMY

e’ve all heard or read about the catch phrase “from farm to fork”, how Halal compliance should be implemented throughout the entire value supply chain, not just slaughtering of animals. But something is clearly missing in this seemingly flawless equation. The notion “from farm to fork” was all the rage during the inaugural World Halal Forum 2006 where delegates deliberated on various issues surrounding this allencompassing concept. From the feed lots where the cows are fed to the way they were raised, slaughtered, packed, shipped, then stored, until the meat arrives on the consumer’s dinner plate, all supply chain processes need to be Halal compliant. The second gathering of Halal industry players this May will see the same idea being elaborated further to include not just the traditional flow of the supply chain, but also to include the funds that will be used to finance these projects. Some industry experts are even asking how olden Islamic governments administer their society to ensure that a true Halal economy would thrive and prosper. The Halal Journal sat down with the head of Malaysia’s premier Islamic banking group, CIMB Islamic, Badlisyah Abdul Ghani, who aims to convince Halal business owners to move away from “mere lip service” in Shariah conformity and give their business more substance. Using Halal funds for their businesses, according to him, can actually help build a better economy, which in turn would truly benefit these businesses in the long run.

WHERE DO YOU SEE THE DIRECTION OF THE GLOBAL HALAL INDUSTRY MOVING TO AND WHAT ARE YOUR EXPECTATIONS FOR THIS SECOND GATHERING OF THE GLOBAL HALAL INDUSTRY? “The global Halal industry is expanding beyond the food and beverages industry. People are now beginning to see that Halal involves general activities that are allowed under Shariah and that would comprise close to 98 per

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islamic finance

Islamic finance will ensure all wealth generated within the Halal economy remains within the Halal economy. There will not be any more leakage into the conventional non-Halal market as it is seen now.

cent of the global economic activities. There are actually very few things in life that are haram or not allowed. “The industry has grown tremendously over the years. It has come to a stage that we no longer look at just the end product as being Halal. We now look at the whole process. The financing to manufacture the product may need to be provided by an Islamic bank. The manufacturer puts their access money in Shariah compliant investment. The industry is seen to be moving away from mere lip service in Shariah conformity by industry players and demands more substance before any Halal certification can be given. “My expectation is to see a higher level of maturity amongst industry players at this second gathering to enhance depth of the industry. After all, it makes economic and business sense to make the whole business process Halal considering the large market out there.”

ON HALAL STANDARDS, EFFORTS TO CREATE ONE GLOBAL HALAL STANDARD ARE OFTEN SOUGHT BY MANY BUT NONE HAVE ACHIEVED. HOW CAN WHF BE ANY DIFFERENT? “The WHF should seek harmonisation rather than standardisation. Standardisation has never been achieved before because it takes surrender of sovereignty by countries involved in the industry. Harmonisation only requires each jurisdiction to recognise each others’ standard. “WHF can start the ball rolling by getting major industry players to agree for a body such as the Halal Industry Development Corporation (HDC) which was recently set up by the Malaysian Government

to collect all known Halal Standards or Certification from different countries and without prejudice or bias, put all of it in a simple data bank, or Halal Encyclopedia, that can be accessed globally. “The presentation of each standard or certification would be made in a simple standard format and would act as a guide to all players on what is needed in order to do business in a particular country. Industry players only want certainty of doing business and this certainty can be achieved without global standardisation. By facilitating harmonisation in this manner, WHF can make a difference.”

IT IS CLEAR THAT TO BE COMPETITIVE, HALAL NEEDS TO KEEP PACE WITH THE CURRENT TRENDS IN THE GLOBAL MARKET. WHAT DO YOU THINK IS NEEDED TO MAKE HALAL RELEVANT IN THE MAINSTREAM MARKET? “Halal has always been relevant in the mainstream market. The significant world population being Muslim since time immemorial dictates this to be so. The fact that Halal processes have been proven scientifically as better in terms of health preservation (slaughtered chicken reduces the risk of SARs and bird flu) shows that it has no other place other than being a mainstream market. The fact that Islamic banking and finance are known as a more equitable financial market elucidates the fact that it makes sense for Halal to be the mainstream market.”

YOU’VE BEEN SAYING THAT A HALAL ECONOMY WOULD NEVER MATERIALISE IF BAITUL MAL IS STILL UNDER THE RELIGIOUS BODIES. CARE TO ELABORATE?

nation’s treasury is critical to the well being of the Halal economy. Financial matters under any form of government have always been under the purview of the financial regulator or the Treasury and not religious bodies. It is there to support the economic development of the country. This was the case under all known Islamic governments since the advent of Islam, until the defeat and colonisation of the Islamic realm by the western powers. “In most jurisdictions before the relevant colonial masters left these conquered countries, the purview of Baitul Mal, zakat and waqf was transferred from the Treasury to religious bodies. Malaysia is a clear example. Instead of being managed as Muamalat (man-to-man activities), it was redefined by our past colonial masters as Ibadah (man-to-God worshiping) and put under the religious bodies. We are then thought to manage it purely for charity purposes when it should be run as a business to enhance the economic standing of Muslims and the nation as a whole.”

TYING IT ALL IN, HOW DO YOU SEE ISLAMIC FINANCE HELPING TO CREATE A TRULY HALAL ECONOMY? “Islamic finance will ensure all wealth generated within the Halal economy remains within the Halal economy. There will not be any more leakage into the conventional non-Halal market as it is seen now. The management of the whole economy would be Shariah compliant. However, this is only achievable when both the public and private sector components of the financial market exist in the economy and are managed as dictated under Muamalat.” hj

“Baitul Mal or the Islamic

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Islamic finance update

COMPILED BY HARIZ KAMAL

“Today, out of the US$1 trillion, a few hundred billions are placed in Commodity Murabahah (a popular deposit instrument in Islamic banking) and much of that is not properly Shariahcompliant in terms of usage of proceeds,”

Plug Leak in Islamic Finance System A prominent investment banker says there might be a crack in the Islamic financial system through which a portion of the said US$1 trillion (RM3.56 trillion) Islamic funds has leaked out. CIMB group chief executive officer Datuk Nazir Razak suggested the Shariah rule may not have been complied within the management of the money. “Today, out of the US$1 trillion, a few hundred billions are placed in Commodity Murabahah (a popular deposit instrument in Islamic banking) and much of that is not properly Shariah-compliant in terms of usage of proceeds,” Nazir said at the Global Islamic Finance Forum in Kuala Lumpur yesterday. “We talk about US$1 trillion of Islamic savings, and yes, I find it odd that issuers are still paying a premium for global sukuks. So where is actually all the money,” he said, adding that, in Malaysia, issuers of ringgit sukuk get a discount of 10 to 15 basis points savings when they issue five-year Islamic papers compared to conventional issues. On a participant’s suggestion that Islamic countries adopt a single currency to facilitate smoother Islamic banking transactions, Nazir said it is not necessary. “No. The global financial market grew exponentially without a single currency. There is really no need … there is a strong argument for a regional currency rather than currency for Islamic countries.” SOURCE: BUSINESS TIMES, 29/3/2007

BANK OF KHARTOUM SELECTS MICROLINK Bank of Khartoum (BOK) which is based in North Africa has selected Microlink Banking Solutions for its Islamic financing solutions needs. The deal was signed between Microlink Worldwide Sdn Bhd, a wholly owned subsidiary of Microlink Solutions Berhad, and BOK to implement the full suite of Islamic financing and credit management system. With over a decade of experience, Microlink has extensive expertise and experience in banking solutions for the Islamic banking and finance industry. This deal adds to Microlink’s growing list of customers in the Middle East and North Africa (MENA) region. BOK currently has 49 branches and is part of the Dubai Islamic Bank group. SOURCE: PRESS RELEASE, 26/3/2007

CIMB ISLAMIC BANK TO SUPPORT COMPANIES FOR HALAL VENTURE CIMB Islamic Bank Bhd will support multinational and local companies in raising funds in the Islamic capital market for Halal-related ventures, its chief executive officer Badlisyah Abdul Ghani said. “By the middle of this year, we will launch all our 383 branches nationwide for people to access financing for the Halal industry,” he told reporters after attending the World Halal Forum 2007 (WHF 2007) Industry Leaders brunch session here. Also present were WHF 2007 chairman Khairy Jamaluddin and Halal Industry Development Corporation (HDC) chairman Tan Sri Dr Syed Jalaludin Syed Salim. “Typically, we will continue with our investment banking, whereby we will support multinational and local companies which want to raise funds,” Badlisyah said. He pointed out that in raising funds in the capital market here it is “cheaper” to use the Islamic system than conventional financing. On the value accumulated by the Halal industry so far, Badlisyah said: “if we total the food and financial services, the amount is US$1.5 trillion.” CIMB Islamic’s support for WHF 2007 is reflected by the fact that it is the sole platinum sponsor. Khairy said that with Malaysia being acknowledged as an emerging global leader in Islamic finance, the partnership of CIMB Islamic with WHF 2007 underlines the common attributes and shared values of the two Shariah-compliant industries. “The collaboration and convergence of these two powerful market forces can strengthen Malaysia’s global role in both Islamic finance and the Halal market,” he added. He described it as a “wonderful case” of Islamic synergy that brings benefit to all. Some 20 Malaysian companies, as well as the Tourism Ministry, are supporting WHF 2007. They include gold sponsors Northport Malaysia Bhd, Westports Malaysia Sdn Bhd and Allansons Ltd. Silver sponsors include KFC Holdings (Malaysia) Bhd, Nestle (Malaysia) Bhd, Prima Agri-Products Sdn Bhd, MISC Integrated Logistics Sdn Bhd and LimKokWing University College of Creative Technology. Others include CCM Bhd, Dindings Poultry Processing Sdn Bhd, Intertek Group, SICPA Product Security Sdn Bhd, Aron Sdn Bhd, Darabif Meat Company Sdn Bhd, Lembaga Tabung Haji, Microlink Solutions Bhd, Royal Selangor and Islamic Development Bank. SOURCE: BERNAMA, 20/3/2007

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Islamic finance update

GREEN LIGHT FOR $100B MEGA ISLAMIC BANK

Islamic finance institutions plan to set up an Islamic bank in Bahrain, within months, with a capital set to rise to $100 billion within seven years, an institution official said. Shaikh Saleh Kamel, head of the General Council for Islamic Banks and Financial Institutions, told reporters that a large Islamic bank was needed to increase liquidity in the sector and improve compliance with Islamic rules. The Islamic finance industry has an estimated US$300-US$400 billion in assets, but lacks wellcapitalised banks. About a quarter of the roughly 300 Islamic lenders worldwide are reported to have less than US$25 million in paid-up capital. There is a need for this mega-bank to make the tools to increase liquidity in Islamic banks, and move the banking system more towards Shariah

(Islamic law) goals,” he added. Islamic finance complies with Islamic law. A ban on charging interest and investing in prohibited businesses such as trading in alcohol, pork, arms, pornography or gambling, are among features distinguishing it from traditional banking. The bank, named Emaar, will have an initial capital of US$1 billion provided by financial institutions. Albaraka Banking Group, which Kamel also chairs, will be one of the founding investors. Al Baraka’s chief executive Adnan Yousuf

REUTERS TO HELP BOOST MALAYSIA’S ISLAMIC FINANCIAL SECTOR

CIMB Group first with Islamic Private Banking

FINANCIAL data and news provider Reuters is confident that it can help develop Malaysia’s Islamic financial sector into one that is more sophisticated and hooked up with the global financial market. Reuters Asia managing director Alex Hungate believes it can do so through interaction with the market participants ranging from regulators, primary issuers of sukuk bonds as well as the buyers and brokers of the secondary market. Hungate said apart from its news coverage, Reuters provides pricing from local markets and makes them available to 400,000 financial market professionals around the world to evaluate potential investments. “We have been focused on doing that for Malaysia and this is already bearing fruit from the large number of contributors in Malaysia giving their sukuk pricing,” he said, adding that this has enhanced its coverage of Islamic finance in Malaysia, Indonesia and the Gulf States. Reuters’ range of products include the Reuters Trading for Exchange, an electronic trading capability for professionals dealing in exchange traded markets, which has already gone live in Europe, the Middle East and Africa. Reuters 3000 Xtra gives users a commanding view of the global real-time financial arena and provides a combination of news, information and insight as well as access to the global Reuters trading community. Reuters has the largest foreign exchange community with 112,000 foreign exchange professionals across 125 countries relying on the company’s news and information. Reuters Trading for Fixed Income, a new electronic trading capability which allows banks and financial institutions to trade fixed income securities over their desktop, is also expected to roll out in Malaysia once it gets approval from the Malaysian regulators. In Malaysia, Reuters is regarded as the official calculator for Bank Negara Malaysia’s reference rate, the Klibor and murabahah rates for the 12 banks in the country. Asia contributes 18 per cent of the Reuters group’s revenue, in line with Asia’s share of the world capital market. “That trend will continue as the Asian financial markets grow together with the rapid growth of the Asian economies led by China, India and Japan, as well as countries like Malaysia,” he said. SOURCE: BUSINESS TIMES, 2/4/2007

said Emaar would be founded in Bahrain within two months. Shares in the bank will then be offered in two tranches, the first taking the bank’s capital to US$10 billion, and the second to US$100 billion, in a process that will take five to seven years, Kamel said without giving further details. The other Islamic financial institution involved in setting up Emaar is the Islamic Chamber of Commerce and Industry, said Ezzedine Khoja, secretary general of the General Council. SOURCE: REUTERS, 30/3/2007

CIMB Group has scored a first in providing an Islamic private banking service in Malaysia, vying to manage a portion of the more than US$1 trillion (RM3.45 trillion) worth of wealth among Muslims in Southeast Asia and the Gulf. The full-fledged private banking service based on Shariah principles is targeted at high net worth individuals who have more than RM1 million in investable assets and need personalised wealth management services, advisory and investment products conforming to Shariah principles, it said in a statement. “Drawing on our strong Islamic banking franchise, we believe we can serve the market’s growing demand for investment in Shariah-compliant wealth management products.” CIMB Private Client Services, Yeoh Keat Seng noted the widespread adoption of Islamic investment products and services, adding, “Evidence of this is seen in the rise of the country’s Islamic banking industry which registered RM800 million profits for the first half of last year. “In addition, total assets of Islamic banking stood at RM122 billion while Islamic corporate bonds stood at RM121 billion, which is about 55 per cent of the total corporate bond market in Malaysia.” In line with this, he added, the group has introduced a trust and Islamic-based succession service for its clients. SOURCE: BERNAMA, 28/3/2007

Rabobank sees potential in Northern Corridor for Halal

Rabobank International, the world’s leading financier in the food and agribusiness sector, wants to be actively involved in the development of Malaysia’s Northern Corridor Economic Region Rabobank food and agribusiness head of strategic advisory and research for South-East Asia Thomas Lee Bauer said the bank is studying how it can participate in the project. “There is a huge role that Rabobank can play. The bank fits perfectly into it,” he said. Proposed under the Ninth Malaysia Plan (9MP: 2006-2010), the Northern Corridor covers the agricultural areas of Penang, Seberang Prai, North Perak, Kedah and Perlis. Government-owned Synergy Drive Sdn Bhd has been tasked to accelerate development in the Northern Corridor, which is envisaged to be a hub for food and agricultural products. He said the strength of the Netherlands-based Rabobank lies in its agribusiness experts worldwide. In Malaysia, the Dutch farmers’ cooperative bank offers basic interest swap, corporate lending, term loans, structured trade finance, foreign exchange, risk management, merger and acquisition, as well as food and agribusiness advisory services. He said Rabobank is bullish about Malaysia’s economy and its agribusiness, which is supported by the right investment climate and the Government’s emphasis on agribusiness. For the niche Halal sector, for example, Bauer said Rabobank can help players to brand their products so that Malaysian Halal products fetch premium prices. “We can increase the profit margin for Halal food producers. There is market for higher-end Halal products. The key is to open up the right market,” he said, adding that other potential areas include beef and dairy sector. In the palm oil sector, Bauer said Rabobank would concentrate on value-added products. “Biodiesel is a big growth area. There is a lot more to be done on external marketing in this area,” he said, adding that companies from Europe are looking at feedstock from Malaysia for their biofuel projects. SOURCE: BUSINESS TIMES, 2/4/2007

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4/24/07 3:20:01 PM

THE

HALAL

JOURNAL

LIVING

MAR+APR

2007

OUR TAKE ON TODAY’S FAST FOOD CULTURE SALOMA THE TOURIST RESTAURANT ANOTHER VIEW ON IMMIGRANTS NATIVE DEEN & SOUND OF REASON

Parents Must Realise

REWARDING THEIR CHILDREN WITH FAST FOOD IS NOT THE PRICE TO PAY FOR GUILT AND A FAST PACED LIFE. THERE ARE MANY WAYS OF ENCOURAGING CHILDREN TO EAT HEALTHFULLY, AS WELL AS SPENDING TIME WITH THEM EVEN ON BUSY DAYS. MAKE THE EFFORT, IT WILL BE WORTH IT.

THE HALAL JOURNAL LIVING

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cover story

Fast Times At Malaysian High Words By DINA ZAMAN

What are parents to do to appease squealing children with a hankering for that value meal, because it comes with a toy that they simply must have?

elcome to the world of parenting, which has more than its occasional hazards and

is detrimental to the wallet and yes, health. Parents in the 21st century have to juggle more than their duties, to keep a family together. What with longer working hours and jetting about on a weekly basis, parents will find ways to cut corners and make their lives easier. One of the ways parents think of rewarding their children is by feeding them. It’s also based on guilt: leading hectic professional lives make parents feel guilty of neglecting their offspring. Too much time spent in the kitchen would mean less time with the children. Voila! Meals delivered right to your home! They’re delicious, hot when received, and really good to eat. In the meantime, your whole family and you enjoy a great meal while catching up on each other’s lives. Fast food’s main appeal is that it’s all about convenience. It’s cooked by someone else, sparing you the pain and messy clean-ups, and the food’s really good. Also the fact that fast food conjures ‘happy times’ is another reason. And Muslims are not impervious to fast food’s charms. Even the French are getting in on the act: Bueger King Muslim (not at all affiliated with Burger King) caters to the Halalfood conscious Muslim family. While the average family, Muslim or not, thinks they are doing a service to their family by ordering such foods, in actuality, they are really creating health and emotional problems for the younger generation.

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Health problems such as high cholesterol, obesity and cardiac problems are but a few, but also social problems may arise. Rewarding a child with food, or withholding food from a child teaches children that their esteem and body image revolve around food. Hence eating disorders such as anorexia, bulimia and body image issues come to mind. A child who is rewarded all the time may grow up to be wilful. It may sound rather trite to the reader, that such an issue – food – would actually damage an ummah but these issues are very real. The word ‘Halal’ has come

Teach the children what the Prophet (PBUH) once told his congregation. When one eats, stop before one is stuffed to the gills, and eat only when hungry. Wait a good 30 minutes after the meal is taken to drink water.

to only mean either permissible foods and actions condoned by

dips are a great way to snack! If the children want potato chips, they can have them if the parent learns to bake the chips. Yes, it can be done, and it’s more nutritious than deep fried ones with too much salt on them. One does not need to even go that far. Look at our local foods themselves: pita breads and hummus are very good for the body and energy, while soups are wonderful on a chilly cold night. Roast chicken and kebabs provide protein and fuel young minds. It’s all there!

n a world that prides itself on beating time, fast food and fast times appeal to

Allah or the opposite. We forget

the young because it’s hip. To

that Halal is actually a way of

not partake in it would mean the

life, and fast food and fast times

children are not with it and left

fall under the Halal umbrella.

behind in the latest trends. Work

Parents need to understand

on the children’s self-esteem

that a healthy Muslim life does

Yes, undeniably a snack can be

from young. Teach them it is okay

not mean spoiling the children

very delicious, and comfort food

to be who they are, and not to

with unsavoury activities.

is an emotional-physiological

succumb to peer pressure. This

relief from troubles, but there

is needed so they develop into

rue, parenting is not easy.

are ways of indulging one’s

self-sufficient adults to have a

Countless books, talks,

sweet tooth in a healthful way.

sound Islamic personality, with

seminars by childcare

If parents lead an unhealthy

a good character and morals,

experts, from the western to

lifestyle, such as indulging in

strong principles so they are

Muslim worlds, have ‘spoken’

heart-unfriendly foods like deep

able to handle the demands of

to parents wanting the best

fried meals, and not exercising,

life in a responsible and mature

children anyone can ever have.

then it is time for them to change

fashion. It is not enough to just

Parenting is not a one way street;

their ways. Take the kids out to

observe a set of directives but, far

it has its ups and downs, and

the park, and instead of reclining

more importantly, parents must

all parents do their best to cope

in the sofa to read the paper after

be a living example of unfailing

with the changing world and

work, play football or ‘catch’ in

submission to God through

the ever demanding needs of

the garden. If the family lives in

a sincere and conscientious

their offspring. We all do our

an apartment, then go to the park.

practice of the Islamic teachings.

best, and sometimes we fail.

Teach the children what the

One of the best ways of

Really, if anything, it is man

Prophet (PBUH) once told his

and woman who make things

communicating a healthy lifestyle

congregation. When one eats,

less easy on themselves. Islam

is by leadership. Both parents

stop before one is stuffed to the

is a pragmatic faith, and if one

must perform good deeds as best

gills, and eat only when hungry.

is in line with Islamic Aqidah,

as they can, and when it comes

Wait a good 30 minutes after the

one can be creative, especially

to wholesome foods, parents

meal is taken to drink water. Find

when it comes to feeding the kids

should not be buying every

creative ways to make vegetables

palatable foods that will nourish

snack and junk food they see!

fun to eat. Cut vegetables and

their minds, souls and bodies.

THE HALAL JOURNAL LIVING

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browsing

Compiled by Hariz Kamal

Restaurant Review

SALOMA THEATRE RESTAURANT Easy-to-find Malaysia Tourism Centre (MTC) is located on one of Kuala Lumpur’s busiest roads, Jalan Ampang, but this does not dampen the enthusiasm of visitors who flock to the MTC. The Centre is well-equipped to be a tourist-friendly and informationpacked centre, designed to facilitate a smooth experience for tourists discovering the country. One of the main attractions of the centre is Saloma Theatre Restaurant, named after a legendary actress and singer who symbolises an iconic and romantic era in the Malaysian film industry. The restaurant is elegantly decorated with classic tones and dark wood panelling to give it a contemporary and welcoming look. What really takes centre stage, however, is the food at Saloma, with five-star service to boot. Under Chef Man’s close supervision, the team at Saloma ensure an awesome variety of taste and delight for its diners. Starting with the appetiser, the chef recommends his Nyonya prawn salad, which is shredded chicken, fresh prawns, Chinese mushroom (earwood fungus), lime juice, and coconut milk, along with salt and pepper to taste. The gado-gado, an Indonesian spicy salad mix, is also worth trying. Long beans, sengkuang (sweet turnip), morning glory, egg bean curd and other ingredients make this a unique, memorable experience for anyone; all topped with fish crackers to complete the desired effect for an appetiser. For the main dish, the roasted chicken with sweet and sour sauce deserves a special mention, along with the three flavoured sea bass, which is a typical Thai dish. A lot of thought and time has been invested into making these two main dishes. Marinated, steamed or grilled, each individual ingredient is important to create the perfect appetising, savoury and sumptuous meal. If your ample appetite allows enough space to savour it, Chef Man’s banana fritters creation topped with ice cream – a classic favourite - will be a real treat for adults as well as for children. Do also try the bubur somsom or the Asian version of custard, a local recipe that hails from Johor, the southernmost state of Malaysia. After a robust, full Malay meal, enjoy a cultural show by Saloma’s own dancers. Grace and beauty is always the theme at all shows, but don’t be surprised if you’re pulled onto stage!

THE WEB :: Euro-Islam www.euro-islam.info If you are looking for info on cultural and religious changes in Western Europe, then this is a splendid website to consider. Packed with massive information and analysis, the website also provides links to plenty of news and events concerning Islam and Muslims across Western Europe. Up-to-date conferences and meetings organised by universities, political institutions or NGOs are also updated regularly, providing great help to researchers, politicians, even activists. A column profiling each European country is also a great help, where one can learn about the Muslim’s ethnic background, history and religious organisations within a specific European country.

Malaysian Tourism Centre (MTC), 139, Jalan Ampang, 50450 Kuala Lumpur. Tel: 603-2161 0122 Fax: 603-2162 9122 Opening Hours: 11.00 am -12.00 am, Daily Price Range: RM15.00 – RM65.00

:: Halal Petition Online www.petitiononline.com/Hallal/petition.html This is an interesting move by a web author from the UK who calls himself M. Master doing his bid to try and establish a single Halal trademark by collecting online signatures. The author reasons that despite the efforts of thousands of mosques across every country trying to compile their own lists of Halal products, this has only resulted in dilemma for many confused Muslim consumers. Hence, this petition is seen as another way to press for the authorities to officially recognise a Halal Trademark within each individual country that can then be recognised by manufacturers and consumers alike. So far the petition has collected more than 300,000 signatures, which provides compelling evidence that a common Halal standard and logo is what many Muslim consumers the world over have been longing for.

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browsing

Book Review

IMMIGRANTS: YOUR COUNTRY NEEDS THEM By PHILIPPE LEGRAIN LITTLE, BROWN ISBN: 978-0-316-73248-2

Negative perceptions are often placed on immigrants - stealing local jobs, creating xenophobia and even threatening national identity. Philippe Legrain begs to differ. He is calling for freer migration laws and insists that controlled migration policies are morally wrong, economically insensible and politically unsustainable. This well researched and readable book gives insightful socio-economic analysis with an extensive snapshot of what and how migration is perceived around the world. Starting each chapter with quotes, the book begins by highlighting the trials and tribulations of immigrants from poorer countries seeking better opportunities in richer countries. It explains how immigrants can and will actually improve the quality of life for both their families back home, their country of origin and the adopted country. It would also create vital trade links that promotes international businesses. The Silicone Valley is an exemplary success story achieved by a global network of immigrants. The book is also supported with rich and interesting statistics and figures. From the death toll at the U.S borders as well as remarkable figures on how remittances contribute to the economic growth for countries like the Philippines, the author presents thought-provoking and compelling evidence that immigrants are in fact enriching and invigorating the economy, culture and society in at least two countries. In addition, the author has also suggested ways to integrate immigrants in many European societies with plausible schemes to ensure they do contribute economically, politically and culturally. He also argues that both the immigrants and the host government each have roles to play to ensure freer migration does actually benefit all within this increasingly borderless world.

Music Review SOUND OF REASON

Sound of Reason burst onto the hip hop/R&B scene in early 2004 and has been turning heads with their straightforward honesty and opinionated lyrics that set themselves up as music’s next big hype. Known for their cool hip hop beats, Sound of Reason has shown artistic diversity with their beautiful acoustic piece called ‘Palestine’ which has a blend of David Gray and Craig David mashed together. Their music is filled with solid messages which preach about consciousness and political awareness with beautifully crafted melodies and instrumentals.

NATIVE DEEN

Native Deen are three young men who were born and raised in America with Islam as their faith. Based in Washington DC, the band consists of Joshua Salaam, Naeem Muhammad and Abdul-Malik Ahmad, who as proud Muslims got together and promotes understanding and tolerance towards other faiths. With trademark hip hop, head nodding beats that can easily be mistaken for Cypress Hill, positive and enlightening lyrics make their music a truly universal and distinctively Native Deen. 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.

D’Gateaux’ range of Confectionaries

D’Gateaux, short for Deligateaux, which actually means deli that sells decorated cakes, specialises in providing different types of confectionery and bakery products “with a touch of sophistication”. After going through extensive R&D, the company is confident that their cakes, fine pastries, pies and tarts are suitable for all ages, any occasion or season. HAACP and Halal certified by JAKIM, D’Gateaux range of confectionaries are available in many leading retail outlets. For more info, log on to www.deligateaux.com or call +603-7845 0499.

Mentos’ Ice Chewing Gum

Famous as the ‘freshmaker’, Mentos have presented themselves away from their traditional concept of their chewy dragees rolls by coming up with Mentos Ice Chewing Gum that is not only a traditional chewing gum, but is packed in a funky new look and no longer in their rolls. Available in three icy flavours, the Mentos Ice Chewing Gum gives freshness a whole new meaning. Mentos prides for being gluten-free and is Halal certified by Islamic Community of HCMC from Vietnam. Check out www.mentos.com.au for more info.

Darabif’s Chicken & CCM Beef Serunding snack Pharmaceutical’s Malaysia’s favourite add-on dish, Naturalle Toco-E the serunding (or meat floss) is now officially a snack - thanks to an innovative packaging and marketing idea from Darabif, a Malaysian company specialising in the development and distribution of Halal meat products. Under the sub-brand “Dings” (coined from the last syllable of the word Serunding), Darabif’s goal is to offer a healthier alternative for the world’s snack-loving consumers. Dings is not only tasty, but is rich in protein and iron and is low in fat. As affordable as potato chips and chocolates, Dings offers a healthier alternative at a fantastic price. For more information, log on to www.darabif.com.my

From Malaysia’s local manufacturer of generic drugs with over 280 products including antihistamines, antibiotics and expectorants, CCM brings you Naturalle Toco-E or tocotrienols, antioxidants that possess the ability to quench and neutralise the activities of free radicals within your body. With each softgel capsule containing 50mg d-Tocotrienols hermetically sealed to preserve its freshness and potency, it is not just Halal certified, but was also made according to Good Manufacturing Practices (GMP) but also complies with Good Laboratory Practices and Good Storage Practices standards issued by GMP. Log on to www.ccm.com.my for more info.

Silverbird’s Black Fury From Malaysia’s bread maker High 5, Silverbird introduces Black Fury; an energy drink formulated not only to increase alertness, endurance and performance levels of your body and mind, but is also Halal certified by JAKIM. Containing taurine, glucuronolactone, caffein and vitamin B, the energy drink not only able to replace the loss of taurine in the body during physical exertion, it also aids digestion, possesses detoxifying effects, strengthens the heart and increases mental alertness. For more information, please log on to www.blackfury-energy.com 92 THE HALAL JOURNAL LIVING

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snapshots Well Done!

Datuk Seri Rafidah Aziz, Minister of International Trade and Industries (left) congratulating Dato’ Noharuddin Nordin (second from left), chief executive officer of MATRADE during the joint launching of the 4th Malaysia International Halal Showcase (MIHAS 2007) and The World Halal Forum 2007 (WHF) at the Kuala Lumpur Convention Centre recently. Looking on are Shukri Abdullah, CEO of MIHAS; Khairy Jamaluddin, chairman of WHF; Jumaatun Azmi, MD of KasehDia; and Datuk Jamil Bidin, CEO of HDC.

Swarmed.

Datuk Seri Rafidah Aziz answering questions by members of the media after the co-launch ceremony of MIHAS 2007 and WHF at KLCC recently.

Industry Leaders. The officials and representatives

Fresh new look.

of the sponsors for World Halal Forum 2007 receiving their plaques to commemorate their support for the event.

From left, Jamaludin Md Ali, managing director, KFC Holdings (Malaysia) Bhd and SK Wong, president of KFC division presenting KFC’s latest offering, the Colonel’s Rice Combo with their new logo in the background.

Halal on display. Dato’ Ibrahim Ahmad Badawi, chairman

of LSG Sky Chefs Brahim’s checking out the range of Halal certified products on display during the launch of their Halal Awareness Campaign recently. Looking on is Abdul Aziz Mohamad, chairman, Halal Excellence Centre, LSG Sky Chef Brahim’s. 94 THE HALAL JOURNAL LIVING

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Staunch Support. From left, Halal

Industry Development Corporation (HDC) chairman Tan Sri Dr. Syed Jalaluddin Syed Salim receiving a mock cheque from Badlisyah Abdul Ghani (right), chief executive officer, CIMB Islamic during WHF 2007 Leader’s Brunch event recently. CIMB Islamic is the official platinum sponsor of the annual Forum.

Give Me Five!

From left, Dato’ Jackson Tan, Group MD of Silver Bird Group Bhd, Datuk Seri Dr Fong Chan Onn, Minister of Human Resource Malaysia, Dr Ooi Cheng Lee, Lloyd’s Register Quality Assurance Ltd. and R. Narendranath, managing director of TQS Management Sdn Bhd during Silver Bird’s recent ISO 22000:2005 handover event last 16th March.

DELIVERING A POINT.

Datuk Jamil Bidin, chief executive officer of Halal Industry Development Corporation (HDC) driving home a point in his speech during the WHF 2007 Editor’s Luncheon at Carcosa Sri Negara recently.

Best Exported Services.

From left, Edward Phong, chief executive officer of Microlink Berhad, Datuk Seri Rafidah Aziz, minister for Malaysian International Trade and Industries, Datuk Ali Abdul Kadir, chairman of Microlink Berhad and Tan Sri Azman Hashim, chairman of AMBank Group after receiving for Microlink Berhad the Export Excellence Award (Services) 2006 from MATRADE recently.

Promoting trade.

A representative of a Malaysian company explaining in earnest the nature of his company during a recent trade bridging event organised by the Confederation of Turkish Businessmen and Industrialists in Istanbul recently.

Top Asian Bankers.

From left, Teresita Sy-Coson, chairperson, Equitable PCI, K. Salman Younis, managing director of Kuwait Finance House (M) Berhad, Ly Xuan Hai, chief executive officer, Asia Commercial Bank, Nestor Tan, president, Banco De Oro, Aditya Puri, managing director, HDFC Bank and Dr. Vichit Suraphongchai, chairman of the executive committee, Siam Commercial Bank each with their prizes received during The Asian Banker Achievement Award for the Asia Pacific Region 2006 recently. THE HALAL JOURNAL LIVING

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parting words

PROMOTING SOCIETAL CHANGE USING HALAL Mention Turkey and everybody has a thing or two to say about this former centre of the Islamic Ottoman Empire. For good or for worse, Turkey has begun to realise that to be able to claim a stake within the lucrative global Halal industry, they have got to develop their own national Halal standards. The Halal Journal had met with a local businessman, Selim Kinali, and his passion and desire to see this project to fruition is overwhelmingly fresh and inspiring. Read our interview with the future Mr. Halal from Turkey.

WHY IS THIS NATIONAL HALAL STANDARD NEEDED FOR TURKEY? “Besides the obvious benefits from trade and commercial stand point, this national Halal standard is need because it is our responsibility to take action. Because of the severe cultural erosion we are currently experiencing today in Turkey, in addition to the current information age which brings with it another set of problems, I see most younger generation Turks have lost the knowledge of what is Halal and what is haram. So it is our social and religious responsibility to take this action today, rather than later.”

BUT WON’T THE SECULAR TURKISH GOVERNMENT OBJECT TO YOUR MOVE? “No, I don’t think so. I think the current government is quite accommodative on issues that concern the society. If it’s about the society’s needs, there has to be a change in the current law and I expect the Parliament to amend existing laws to accommodate this growing concern. Besides, this Halal standard will definitely bring more competitive advantage to the Turkish products in the international market and will help increase exports. So why would they mind?”

PROBABLY BECAUSE THE TURKISH MILITARY MIGHT OVERTHROW THEM FOR BEING TOO “ISLAMIC”? “Look, even the government has started some efforts in the last few years to establish Halal standards in Turkey. But nothing has materialised since and I don’t think we (the business community) can wait any longer. What is important to remember however, is that we are not forming an alternative to the

government in establishing this Halal system. We think of it as a market opportunity. As we take steps into being an entity in this market, if the government decides to be the authority, we will step aside, and be along with the government, but we will not be removed.”

OF ALL THE 80 MILLION TURKS, WHAT MAKES YOU THINK YOU CAN SUCCEED IN THIS AND WHAT DO YOU HOPE TO GAIN OUT OF ALL THIS? “I am apart of a strong network of Turkish businessmen and industrialists called TUSKON, which is a very big confederation represented by different geographical locations. In that sense, another company can establish another Halal certification body in different regions under the TUSKON banner but we will definitely work together as a group. I am not a person who takes action without any support. There’s a saying in Turkish that says it’s easier to tell a person who has money than a person who has Iman. All I’m seeking is blessings from Allah (swt) and I leave it up to Him to reward me.”

SO WHAT IS YOUR NEXT COURSE OF ACTION TO REALISE THIS? “Obviously the first step is to learn and establish a comprehensive Halal training program. We want to learn from Malaysia’s experience and we hope Malaysia can teach us, provide support and be a good example for us in Halal certification and standards. I know we are not going to have an easy path but if we all put our minds and efforts into this, and have faith in Allah, I’m sure everything will fall into its hj rightful place.”

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MATRADE