05
april-may. 2019 | @Halal
A piece of
the halal pie
Malaysia targets to secure a portion of the
US$300 million (RM1.2 billion) halal market
during the 2020 Tokyo Olympics, especially in
the food and beverage (F&B) sector.
Entrepreneur Development Minister
Datuk Seri Mohd Redzuan Md Yusof said
Japanese companies have expressed deep
interest in Malaysia’s F&B, as well as health
and beauty sectors.
“The Japanese have open their doors to
the halal market compared to 10 years ago,
and if Malaysia’s small medium enterprises
(SMEs) do not take this chance, it is a huge
miss,” he said after the launching ceremony
of the Malaysia Halal Expo 2019 (MHE2019).
In 2017, Malaysia’s halal export to Japan
was worth RM2.8 billion and it is expected
to steadily increase to RM3.1 billion in 2018,
RM3.4 billion in 2019 and RM3.7 billion in
2020.
Local going global
Mohd Redzuan said that more than 10 SMEs
from the 320 exhibitors have exported to
Japan and the rest is ready to do so.
Malaysia-Indonesia
halal agreement delayed
2017
RM2.8b
2020
RM3.7b
“We hope that at this expo, we could exceed
the RM50 million sales target we set for the
business matching sessions,” he said.
As at today, RM40.8 million sales have
been generated from 32 business matching
sessions, comprising 27 SMEs.
Among Japanese companies that took
part in the business matching sessions were
Take One Co. Ltd that operates FamilyMart,
Ohga Pharmacy, Hayabusa International and
Yatsumoto Tsusho Co. Ltd.
As for Malaysia, five anchor companies
that joined the sessions were Lulu Group
Retails Sdn Bhd, Ramly Halal Mart Sdn Bhd,
Aeon Big (M) Sdn Bhd, Nestle Malaysia Bhd
and Tesco Stores (Malaysia) Sdn Bhd.
Meanwhile, Japanese Ambassador to
Malaysia Dr Makio Miyagawa said Japan’s
tourism has grown tremendously over the
years due to rising demand for halal products.
“About 50 years ago, the basic principal of
our negotiation was not to import foreign
agriculture products. But now, we want assis-
tance from Malaysia as Malaysia is known for
its halal sector,” he said.
export
to Japan
2019
RM3.4b
2018
RM3.1b
In 2017, Malaysia’s
halal export to
Japan was worth
RM2.8b
and it is expected
to steadily
increase to
RM3.1b
in 2018
RM3.4b
in 2019
RM3.7b
in 2020.
Forward in Malaysia’s halal market
The Halal Industry Development Corporation Sdn Bhd (HDC), an agency under
the Malaysian Ministry of Economic Affairs, expects Malaysia’s halal exports to
increase by between four per cent and five per cent this year from the RM43
billion recorded in 2017.
HDC Industry Development vice president, Hanisofian Alias said the projection
was based on the global Muslim population growth, the on-going efforts by the local
small and medium enterprises (SMEs) to produce more halal products and services, as well as
collaborations with other ministries and foreign counterparts.
“We are also optimistic that the national target of RM50 billion halal export by 2020 can be
achieved despite global economic uncertainties, including the ringgit’s volatility and the United
States-China trade tensions among others.
“For example, there is ample room in Indonesia’s halal market, as Malaysia’s exports to the
country only accounts for less than one per cent of its halal imports,” he told reporters after the
‘Navigate Your Business Towards Success Into Indonesia’s Halal Market’ seminar..
billion mark by the end of 2020,” he said.
“Many non-Muslim countries have rec-
ognised the untapped potential in the halal
market and are now racing to gain a footing,
presenting a major business and export
opportunity for us as Malaysia has always
held the benchmark in halal production and
certification.
Hanisofian, had earlier alongside halal
advisory ARK Advantage (ARK), announced
its collaboration with Denmark-based coop-
erative ARLA Foods amba (Arla) towards the
globalisation of HalalMalaysia.
For the preliminary stage of the collabora-
tion, HDC will provide subject matter expert
advisory services and offer halal training and
consultancy services as required by Arla and
ARK.
“This is a long-term collaboration between
the three of us, in terms of knowledge sharing
and marketing of products,” said Hanisofian.
“HDC comes into play in helping Arla
navigate policy changes in Malaysia as well
as Southeast Asia. This is important as for
Malaysia alone, Arla has already exported
over RM30 million worth of products in 2017.”
Arla head of global halal supply chain
Mahdi Salhab said that for the time being,
the firm would not be monetarily investing
into the country but that might change given
time.
“We do expect that the size of our export
into the country will increase over time, on
the back of this collaboration but it is too soon
to tell by how much,” he said.
Arla’s Mandatory Halal Assurance System
is designed in compliance with JAKIM’s Halal
Assurance Management System, Department
of Standards Malaysia MS Halal 1500:2009.
Arla Foods is an international dairy com-
pany owned by 11,200 farmers from Denmark,
Sweden, the United Kingdom, Germany,
Belgium.
The global halal market is currently esti-
mated at US$2.3 trillion covering both food
and non-food sectors.
The agreement to be signed between the
Department of Islamic Development Malaysia
(JAKIM) and its Indonesian counterpart
has been delayed, a Malaysian official told
Salaam Gateway. JAKIM now expects to
sign a memorandum of understanding
with Indonesia's religious affairs ministry’s
Halal Products Assurance Agency (BPJPH)
in October. State news agency Bernama
reported on Jan 26 the agreement was to be
signed in April.
Confirming the six-month delay, Naim
Abdul Aziz, senior assistant director of the
Malaysia Halal Council told Salaam Gateway,
“We are waiting for the Indonesian party to fully
execute their implementation. That’s a solid
reason for the delay.”
Jakim gives halal certificates
to 7,204 companies
The Malaysian Islamic Development
Department (Jakim) has handed out halal
certificates to 7,204 companies as of
January this year. Minister in the Prime
Minister’s Department, Datuk Seri Dr
Mujahid Yusof Rawa said the department
had also opened international certification
opportunities for contract manufacturing
and overseas factories to obtain Malaysia’s
halal certification. Jakim according to him,
had recognised 75 Foreign halal certification
bodies and halal authorities from 43 countries.
“Halal industry has gained interest
throughout the world, not only Muslim
countries but also but also other countries with
Muslim populations. Consumers are interested
in halal products because it certified that the
preparation of the food is safe and hygienic
for consumption,” he told reporters during
the pre-launch event of Global Halal Summit
(GHas) 2019 themed ‘Halal Connecting the
World here on Monday night.
Mujahid said GHas which was previously
known as World Halal Week, will start from
April 1 until 6 at the Grand Hyatt Hotel, Kuala
Lumpur and Malaysia International Trade and
Exhibition Centre ( MITEC).
Malaysia still world’s
leading Islamic economy
Malaysia’s Islamic finance industry needs
to move on to better deal with the social
responsibility of creating wealth, Zahid Aziz,
president of Muamalah Financial Consulting in
Kuala Lumpur, told Salaam Gateway.
“As creators of over 90 percent of the
nation's money, banks--both Islamic and
conventional – have an effect on inflation and
purchasing power, and are direct contributors
to the widening gap between the rich and
poor,” said Aziz. Muamalah was Malaysia’s
first company to be licensed by the Securities
Commission as Shariah adviser for the Islamic
Capital Market in 2000.
“[Banks'] fixation with debt financing
makes them direct contributors to graduate
and youth unemployment, and deny funds to
small- and medium-sized enterprises (SMEs)
which generally deliver 80 percent of a nation's
employment,” he added.
Hanisofian during a press
conference for World
Halal Conference 2019
‘Jakim's halal recognition
will boost bilateral ties’
Recognition of Ukraine halal certificates
by the Department of Islamic Development
Malaysia (JAKIM) will boost the growth of
existing bilateral trade between Ukraine
and Malaysia, says Ukraine Ambassador to
Malaysia, Olexander Nechytaylo.
Commenting on the appointment of Kyiv-
based LLC Certification Center ‘Halal’ as the
Foreign Halal Certification Bodies (FHCB),
granted by JAKIM in his Facebook post today,
he said this new development also indirectly,
gave ‘good news’ for Ukrainian exporters.