March-April . 2021 | @ Halal
Event
17
Improved ways to halal F & B system The final World Halal Expo Series 4 underlines challenges and best solutions to Malaysia ’ s halal food and beverage industry
BY CAMILIA REZALI
The ongoing pandemic has taken the global halal industry by storm . The ever-growing Muslim population worldwide has translated into a corresponding demand for halal products . Here is where consumer behaviour started to change , affecting many foods across the shelf .
People started looking for organic food , clean labelled foods , plant-based foods , and low fat and low sugar foods . The booming demand for halal food has grown with the need to secure the halal food supply chain , and despite working towards fulfilling the order , there are still piercing challenges on halal that needed to be sorted out .
‘ Future of Halal in F & B and Retail ’ topic was selected for discussion in the World Halal Webinar ’ s final round , hosted by MyEvents International . The virtual session pulled together seven panellists - professionals from local companies and start-ups and subject matter experts from universities .
The State of the Global Islamic Economic ( SGIE ) Indicator presented by Dinar Standard gave a comprehensive picture of which countries are best positioned to achieve the trillion-dollar global opportunity .
According to the SGIE report , the halal food and beverages industry alone was worth US $ 1.17 trillion in 2019 . The digits are projected to reach US $ 1.38 trillion in 2024 .
Chief Executive Officer of Malaysia External Trade Development Corporation Malaysia , Mohd Mustafa Abdul Aziz , in his keynote address , noted : “ I ’ m proud to learn Malaysia lead the global Islamic economy indicator for the eighth consecutive year . We lead the pack in pioneering the growth of the Islamic economy , including food and beverages ( F & B ).”
Absence of a fit halal system
First , let us take notice of the main issues in Malaysia ’ s halal industry . The main problems with halal F & B and logistics are records in the supply chain management , the monitoring of halal compliances , and the deficiency of vital legislation .
“ As the population becomes bigger , the demand for halal foods will also grow . Also , as the food manufacturing companies grew , monitoring for each production process may run out of hand ,” said a fellow HalalMas , Universiti Teknologi MARA ( UiTM ), Dr Harlina Suzana Jaafar during the online discussion .
Besides monitoring issues , the absence of a unified halal standard in Malaysia is also a big issue .
“ Every country has its own halal standards . The problem in Malaysia is we have many halal certification bodies . There is no unified halal standard . As a result , it confuses the customers , and people start misinterpreting the halal roles ,” she justified .
SPEAKERS ... Themed , Future of Halal in F & B and Retail , the World Halal Webinar series 4 featured compelling speakers from the industry .
As the population becomes bigger , the demand for halal foods will also grow . Also , as the food manufacturing companies grew , monitoring for each production process may run out of hand .” — Dr Harlina Suzana
According to the Chief Activist of Malaysian Muslim Consumers Association ( PPIM ), Datuk Nadzim Johan , Malaysia had many non-halal products that are claimed to be halal .
“ This is probably one of the biggest challenges faced by Muslim consumers . We are being consumed rather than being consumers ourselves . We have been exposed to a situation where we are not in control of , and as a result , consumers had become a feeder to the system set before us ,” Nadzim said .
A system for industry players to consumers
The integrity of halal should be ensured from production until the point of consumption .
Subject Matter Expert from Serunai ’ s Halal Centre of Excellence , Ustaz Jabal Rahim , said : “ When halal and hygiene became a priority , consumers tend to do careful research before making an informed decision to make purchases . For this reason , halal trading needs to be transparent to be trusted .”
A solution to the issue - Serunai ’ s Halal Centre of Excellence developed the VH Smartphone application . The system was designed for public users , halal certificate holders and applicants for halal certification . This is a system built for users .
Halal traceability for the industry players has never been less important . Harlina said building infrastructure would be the first component needed in the traceability system . Secondly , it is a connection that links an input to an output .
“ In terms of the technological supply chain , we need to have RFID in raw materials , for example . It needs an in-bound tracking system for inbound logistics . It also needs a warehouse monitoring system ,” she said .
But , no doubt , traceability has entered into a much complex matter .
Head of Halal Consultancy and Advisory , Halal Development Corporation Berhad ( HDC ), Dhaliff Anuar said when it came to the halal assurance system , companies were required to have the manual , the policy and employ halal executives . The system must also have an internal halal committee that is in the know of halal requirements .
“ The halal assurance system is also required to run its own internal audit as a self-assessment . Also , halal-certified companies must identify the critical control point and later have the critical control point elaborated in the ingredients . The whole system needs to be documented for record-keeping .”
Innovations and opportunities
Traditionally , livestock slaughtering involved three distinct stages - pre-slaughter handling , stunning and finally , slaughtering . From the traditional method , new technology was developed for chicken slaughtering . The innovation achieved a reduction of manpower use and a more excellent value of production .
Subject Matter Expert on Halal Slaughtering Related Machinery , IoT and Technology , Ainman Loh shared : “ The traditional way of stunning a chicken is by using electricity . But the problem is the technique may not work on all chickens due to the various sizes . As a result , not all chickens will be properly stunned . That is why we came up with a highfrequency-low-voltage electric stunner .’
Besides technology innovation for halal food production , food delivery service provider Tapaw Groups Sdn Bhd is also playing its role - as a backbone to the society ever since the pandemic started .
Tapaw Groups owns a distinctive trait to its food delivery platform , offering halal foods only . It has transparent guidelines and policy standards that emphasise halal delivery requirements , said Manager of Tapau Group Sdn Bhd , Aina Nadirah Ishak .
Looking at a more excellent prospect , the Regional Comprehensive Economic Partnership ( RCEP ) by Asean Retail-Chains and Franchise Federation ( ARFF ) would be an enormous opportunity for Malaysia to grow its halal F & B industry , suggested the President of ARFF , Datuk Mike Loh .
The RCEP Agreement ’ s objective was to establish a modern , comprehensive , highquality , and mutually beneficial economic partnership that will facilitate the expansion of regional trade and investment and contribute to global economic growth and development .