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CCM Halal Awareness Seminar MATRADE, 16 December 2008
Presentation by Mariam Abdul Latif Vice President, Halal Integrity Halal Industry Development Corporation
The Halal Industry:
Products Food (Ingredients, groups) Non-food Products (Pharmaceuticals, Cosmetics, Personal Care, Leatherwear) Services Food (Hotel & Catering Services) Related activities (Certification, Training, Banking, Media, Logistics, Tourism)
Auditing & Certification Research & Development Pharmaceuticals.Components of the Halal Industry Standards. Products and Services Food Service Industry Food and Product Retailing Meat & Poultry Islamic Finance & Banking Logistics & Shipping . Health & Personal Care Food Manufacturing Food.
6% 4. Nigeria.7% 887 903 920 CAGR = 1. Economist Intelligence Unit 2006 .4% 1. International Religious Freedom 2006.433 Qatar Netherlands UK France Germany 4. Egypt.355 1.330 1. Morocco. Turkey.8% 937 952 35 33 31 29 27 25 2001 2001 2002 2003 2004 2005 2002 2003 2004 2005 Muslim population growing at a faster rate of 1. Iran.7% 2.8% than global population growth of 1.Large and growing Muslim population of increased affluence Growth in Muslim population 2001-2005 million World Muslim population Top 10* countries of Muslim population GDP per capita at PPP for top 5 countries USD ‘000 CAGR Why Halal? 43 41 39 37 US 4. Pakistan. India.408 1.7% 2. Yemen Source: IMF World Economic Outlook Database 4/2007.26% Countries with lower Muslim populations compensate by having very strong and fast growing GDP per capita * Includes Indonesia.382 1. Bangladesh.5% 2.
500 115.150 175.35 1.islamicpopulation.865 63.440 93.Euromonitor 462 195 585 266 39 51 9 1. America S.916 .250 1.608m 250 570 300 350 175 1.2005 Region Market Muslim Population Per capita food expenditure Halal Value Million USD Africa West Asia South Central Asia South East Asia China Europe (inc Russia) N. America Oceania Total Source: www.455 820 525 $580.com..230 5.750 500 1.6 .988 14.Global Halal Market Size .443 111.
World Muslim Population >20% of world’s population are Muslims .
Ahmad Badawi Prime Minister on 31 March 2006. the Plan will drive the sector’s growth in making Malaysia an international hub for halal products and services. the HDC will be able to play a leadership role and enable the country to bring our diverse skills and experience to bear in developing the halal-related sectors. . 2006-2010 in the Parliament. YAB Dato’ Seri Abdullah Hj.Mandate To leverage on Malaysia’s advantages in the halal sector particularly in terms of certification and logo recognition. at the tabling of the motion of the Ninth Malaysia Plan. The Halal Industry Development Corporation will be established to develop this industry in a holistic and orderly manner. I am confident that by carrying out these duties.
Halal Industry Development Corporation (HDC) .
• Creation of Halal Distribution Centres Leadership in Islamic Banking • Livestock and • Halal Parks • Development of Agricultural Produce involve rearing. Tg. grazing. • UPEN • State SEDCs • MECD • PNS • MARA • PUNB • Halal • SMIDEC • MECD.The Halal Value Chain Islamic Financing Extremely diverse and cuts across multiple sectorsLivestock and Halal Logistics Agricultural Produce Halal Parks Halal Entrepreneurs SME Development Export Promotion AGENCIES INVOLVED • BNM • MOF • MOT • MOA • DVS • MECD. syariah compliant slaughtering and planting of commercial grade agri products. Develop product differentiation and branding. HDC‟s role is to ensure an integrated and comprehensive development of the National Halal Industry throughout the entire Halal Value Chain . Carrefour. • Domestic Trade • MITI • MATRADE • Malaysia’s • Halal Logistics involves providing halal certified cold • an excellent storage Syariah compliant facilities. Entrepreneurs is an essential part of the value chain particularly the creation of successful entrepreneurs under the BCIC programme Halal SMEs to be export ready and gradually becoming global players. financial refrigerated instruments and transportation. feedlot. Access to Hypermarkets such as Tesco. Gambang Halal AgriFood Park and Padang Besar Halal Park. Participation in Halal Expos and promotional visits in strategic markets for Halal Industry players. PKFZ. services for the and nonHalal Industry contaminated shipping services. Jusco and Giant. provide location requirements for SMEs and Foreign Investment. • Focus on Flagship Halal Zone. Manis Halal Park. • Export Promotion and Access to Global markets through Matrade. GlobalGAP and SALM and SALT compliance.EPU. Sarawak.
HDC Strategic Thrusts Global Reference Centre Halal Integrity Industry Development Branding & Promotion Halal Certification SME Development Branding Halal Training Foreign Investment Marketing Halal R&D R&D and Innovation Acquisition & Consolidation Halal Park Promotion Standard & Reference Events Consultancy 11 .
certification and R&D in Halal industry. Technical Advisory Services Develop in-house Halal expertise (Syariah and Science) Develop and provide Consultancy to other government Develop and provide Consultancy services to industry Halal R&D Centre Develop Halal R&D roadmap Collate R&D information from local and regional institutions Develop international R&D network HALAL INTEGRITY Certification and Audit Improve the certification process Provide product and premise certification services Monitoring and network with other relevant agencies Training Improve level of awareness on Halal and its benefits Implement and coordinate HDC training programmes Halal Reference Centre Develop HDC Halal Library Collate database on Halal certified industries& ingredients Develop network with all international Halal websites 12 . training.HALAL INTEGRITY DIVISION Malaysia as the World Halal Hub. Leader in providing world-class services on Halal references. consultancy.
Foreign Investment Attract Foreign Investment to invest in Halal Malaysia and to establish a one stop Investor Support Centre SME Development Provide International and Local Market Access for SMEs and identify gaps and strengthen SME capacity to become global players and Halal Champions INDUSTRY DEVELOPMENT R&D and Innovation Strengthen R&D and Product Innovation and to conduct Workshop to increase innovative capacity Acquisition & Consolidation To acquire established and niche innovative companies and to promote JV between Local and Foreign companies to accelerate market penetration Halal Park Management Establish the necessary Guidelines for Halal Park Provide Halal Park Advisory Services Ensure Halal Parks are operational for investors 13 13 .INDUSTRY DEVELOPMENT DIVISION To attract foreign investments to establish Halal R&D and Global Halal Production Centres and to facilitate the growth and participation of Malaysian Companies in the Global Halal Market.
Education on the overall concept of Halal – HDC . and to position HDC as the Halal service provider domestically and internationally. Branding Three core areas – Halal .Brand HDC as a market leading corporation – National Brand . marketing and promotional campaigns for Malaysia’s Halal hub programme. Halal services. consumer goods.Create a strong Malaysian national Halal brand Establish the most up-to-date market intelligence on the worldwide Halal markets Creation of a holistic Halal Malaysia Brand Create „Halal Malaysia‟ campaign which will include food. Cosmetics and pharmaceuticals Marketing Promotion BRANDING & PROMOTION Acquisition and utilization of market intelligence Creation of a Malaysia centric promotional campaign 14 14 . finance.BRANDING & PROMOTION DIVISION To develop effective branding.
Vision and Objectives of the Halal Master Plan: 2-prong Objectives Vision • Identify how to strengthen Malaysia‟s capabilities in halal integrity • Develop means to capitalise on this know-how to create new income streams for Malaysia Malaysia as the global reference centre for Halal Integrity know-how • Identify sectors that Malaysia should focus on • Identify strategies and initiatives to accelerate growth and increase GDP contribution from these sectors Malaysia as the global leader in the innovation. production and trade of a number of halal-related sectors 15 15 .
Certification. not as an export oriented growth industry Source:Ethos analysis .) Specialty Processed Food Cosmetics And Personal Care Area in which Malaysia will be a global reference centre Industries that Malaysia needs to grow in order to create economic impact Pharmaceutical Halal Livestock** Ingredients Legislation and regulatory framework Human capital Physical infrastructure and connectivity Public sector delivery system Funding and incentives Industry standards and certification Key enablers to be strengthened **Livestock is included to address consumer well-being issues. etc. Training. local capabilities and potential to create economic impact New source of export led growth Global Reference Centre for Halal Integrity (Standards.The Halal Industry Master Plan: Focus Areas Malaysia cannot be involved in everything – focus areas were identified based on demand potential.
.The Halal Industry Great potential for Malaysia in developing and promoting the halal products and services for global market. Muslim and non-Muslim The global value for trade of Halal foods and non-food products is estimated at USD2.1 trillion annually. Halal products and services are also gaining increasing acceptability among non-Muslims Created interest among food producing countries.
Global Halal Industry FMCG sector Primary meat 10 Processed food*** & beverages**** 35 •“Potentially halal” market has been quantified as the target market that can potentially be captured Pharmaceutical 23 •Approximately 67% 6 Nutraceutical Confectionery 5 9 12 Bakery products Cosmetics & personal care of potentially Halal products are categorized as fast moving consumer goods (FMCG) •Food FMCG and primary meat together account for 62% of the market Global market for potentially Halal products. R&D are included in sectoral values ** Based on sales revenue *** Halal processed food is taken as 66% of the total based on world halal meat consumption **** Only non-alcoholic beverages Source: Euromonitor reports. Services involved in final product e.g. 2005** (Percent) Does not include Islamic Financial Services. logistics. FAOSTAT . certification.
Security.Market Trends Halal Market is expanding More countries entering market EU. China. . Auditing. Logistics. Media. Training. new products/varieties More outlets/fast food Major retailers entering Halal market More market sectors emerging Contract manufacturing. Turkey More product choices New generation. new tastes. USA.
Carrefour taking Halal global • Looking for 40% own-label products Halal is not just religious issue • High cross-over market potential .Market Expansion Halal is going up-market • Market value include healthy. environmental & animal friendly • All expanding sub-sectors. ethnic. fair trade. all intersect with Halal Halal is going mainstream • Tesco.
The Era of Halal Pharmaceuticals Global Market Value: 2006 = USD 607 billion* 2013 ~ USD 818 billion* 2020 ~ USD 1.300 billion** Source: *Frost & Sullivan Market Insight 2 April 2008 **PricewaterhouseCoopers Report 13 June 2007 .
hence need Halal certification from competent authority A choice for Muslims to consume Halal pharmaceuticals .Growth in the Muslim population – more supply Rising incomes among Muslim consumers created more purchase Increasing demand for Halal Pharmaceuticals spur more R&D Driving Factors For Global Halal Pharmaceuticals Most Pharmaceuticals marketed are not Halal and has spurred demand for genuine Halal products .
6 0.5 2.8 Percent (%) 3.6 0.0 4.800 28.600 Source: islamicweb.Potential Muslim Customers US AND EUROPE United States France Germany Muslim Population (Million) 10.0 27.0 3.600 United Kingdom Italy Netherlands 1.com .1 2.700 26.500 27.4 GDP (USD) 37.7 1.0 3.800 27.7 7.
Key Halal Markets Algeria Indonesia Kuwait Oman Tunisia Yemen Bahrain Iran Lebanon Qatar Turkey Brunei Egypt Iraq Jordan Malaysia Morocco Saudi Arabia Syria United Arab Emirates .
800.5 million .3 million India .140 million Canada .6 million Thailand – 8.600.France .2 million China .40 million Key Halal Markets In Non-Muslim Countries USA .000 UK .000 Singapore .1.6 million Philippines .8 million Germany .
. including Malaysia. aspire to become an international Halal hub.Asia Malaysia/Thailand/Singapore/the Philippines/ Brunei/China and India have all taken steps to tap into the global Halal market. Has the largest Muslim population Several countries.
have higher incomes and consequently higher per capita rates of consumption. Saudi Arabia and the United Arab Emirates (UAE) are the most important import markets . The region import 80% of its food requirements.Middle East Especially members of the Cooperation Council for the Arab States of the Gulf (GCC).
United States The market for Halal products is estimated at US$12 billion annually and domestic sales are growing. ConAgra. . US companies involved with Halal products include Cargil. US companies are significant exporters of Halal products. Oscar Mayer and Midamar. Tyson. US sales of Halal food have increased by more than 70% since 1995. Purdue Farms.
March 2007 . IDEAS.Europe Higher purchasing power rather than population size. The port dedicated one warehouse solely to Halal products in 2008. The port of Rotterdam is the key Halal entry point for the European market.
1986 • Double deduction for expenses to obtain Halal certification. quality systems and standard certification Incentives for companies who qualify for “Halal Malaysia Status‟ Halal Industry Players • ITA of 100% for 10 years • Exemption on statutory income from export sales for 5 years .Incentives for Halal Food Incentives For Halal Food • 100% ITA for 5 years under PIA.
and • Pharmaceuticals Criteria • Halal certified • Compliance with quality.Promoted Sector Under “Halal Malaysia Status” • Livestock and Meat Products. hygiene and environmental guidelines • 15% of workforce compries of knowledge workers and minimum 3 halal compliance officers . • Cosmetics and Personal Care. • Specialty Processed Foods. • Halal Ingredients .
flavours.Prospect/Investment Opportunities • • • • Production of Halal Pharmaceuticals Supplier of Halal capsules (halal gelatine) Alternative Ingredients – vitamins. traditional herbal products. food supplements .fibre & nutrient enriched products. seasonings and palm oil-based additives Functional Food .
Factors To Consider Exporting Halal Products Comply to importing country requirements (food laws and regulations) Consistent good quality Halal products Good networking with importers or agents in the importing country Continuous R&D in Product Development .
Management Of Quality Locally Manufactured Halal Products Understanding the concept of halal is important Strong Commitment of the management to supply authentic halal food Comply to HDC’s requirements on Halal products/pharmaceuticals Establishing an internal Halal Committee Label food products properly for consumer informed choice .
GHP and analytical services) Ensure reliable supply of halal raw ingredients Trained food handlers in good hygienic practices Ensure halal products are halal throughout the production chain (from raw ingredients.Management Of Quality Locally Manufactured Halal Products Establish a quality assurance system in the factory/premise (GMP. processing. packaging. storage and distribution) .
the industry (manufacturers/ retailers) and the consumers as smart partnership.Smart Partnership A Tripartite management between the government (competent authority). working together and close cooperation for making Malaysia an International Halal Hub a reality The government as the policy maker and regulator The industries and the retailers are accountable for halal products they produce or distribute The consumers are educated and have access to halal information and labelling during product purchase .
act locally” • Halal product and services are the next world market forces • Harmonize with international standards to be competitive • Halal is good for business and business is good for Halal industry • Success in Halal Pharmaceuticals is a shared responsibility .SUMMARY • “Think globally.
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