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Local News
@ Halal | March-April . 2022
CAP : Introduce Halal-Haram Act Act will give more bite to authorities to implement more stringent supervision and enforcement on the halal supply chain
Oversubscription of KPJ Healthcare ’ s maiden Sukuk Wakalah issuance
THE Consumers Association of Penang ( CAP ) calls on the relevant authorities to introduce the Halal Haram Act . The Act will help to ensure that producers act more responsibly in labelling food products as halal .
Presently the burden of proving the halal status of a product lies on the consumers . For more than 30 years , CAP has been calling for the Halal Haram Act . CAP attended several meetings on the issue , but there has not been much progress to date .
The drafting of the laws and policy-making have been sidelined by the authorities for years . Cases of halal logo abuse are often reported , and the worst of its kind surfaced in December 2020 .
The nation was shocked when it was reported that a cartel had allegedly been bribing customs officials to import and sell meat that was not slaughtered according to Islamic customs or sourced from unapproved stakeholders .
The cartel imported frozen meat from China , Ukraine , Brazil , and Argentina and then repackaged it in the southern state of Johor . Some of the imports included kangaroo and horse meat , which was then mixed with and sold as halal beef , triggering outrage among Muslim consumers who said this was sacrilegious to their Islamic faith .
Given the above situation , CAP President Mohideen Abdul Kader said this is the right time for the government to introduce the Halal
LEASING offer has been made for the development of long-abandoned assets under the management of Labuan Corporation ( LC ), including halal hub and the 10-storey Hotel Labuan .
Eight other assets and those under the management of the local authority in the list for leasing are old market site , idle lands next to Hotel Labuan and Urban Transformation Centre ( UTC ) Pasar Sentral building , idle land at Jalan OKK Awang Besar , near Saguking Jalan Patau-Patau , at Jalan Rancha- Rancha and the popular tourist attraction of Pulau Papan .
LC Acting CEO Rithuan Ismail told Bernama the leasing of the 10
Haram Act and at the same time amend the existing Acts which touch on the halal-haram issue .
The Act will create a demand for Malaysian halal products , which
Hotel Labuan , Halal Hub building among assets on leasing offer
assets , period between 13 and 30 years , were for commercial purposes . He said the 8.127-hectare Pulau Papan , equipped with several wooden chalets , was previously managed by a tourist operator and popular among tourists for sea sports and recreational activities , snorkelling , island hopping is in line with the government ’ s policy to make Malaysia one of the largest producers of halal products in the world .
Meanwhile , he said existing laws should be amended to give a better understanding of the use of the word haram , whether in food or products .
“ For example , under the Food Act , the law on food labelling needs to be amended to ensure that haram ingredients are mentioned on the label . If a substance can be obtained from several sources , then the producer should be required to state from which source it was obtained . This will help Muslim consumers avoid any food and products containing doubtful or haram substances .”
The Act will give more bite to the authorities in implementing more stringent supervision and enforcement on the halal supply chain .
Besides the Act , CAP calls on the authorities to :
• Improve on the Halal certification process
• Review its food procurement procedures following the expose on the meat cartel scandal
• Review the system for all enforcement agencies and livestock development
• Set up a Royal Commission of Inquiry ( RCI ) to address the meat cartel scandal . All those involved in deceiving the people , including government servants and company directors , should be prosecuted and punished severely
and camping .
“ We are hoping for genuine developers and investors to develop these areas as we are aware of the trickle-down effects on Labuan ’ s economy ,” he said .
Rithuan stated that several pieces of idle land , three of which are in the town centre , are economically feasible and might be turned into a new economic cluster . Due to its advantageous location opposite the shoreline , the 7.391-hectare Labuan Halal Hub , which includes an administration building , a mini-conference hall , and multiple warehouses , has the potential to be another development site for a new industry .
KPJ Healthcare Berhad has made a successful return to the Sukuk market with its maiden offering of Sukuk Wakalah of RM650.0 million under its RM3.0 billion Sukuk Wakalah Programme .
The Sukuk Wakalah Programme also provides flexibility for KPJ Healthcare to issue sustainability Sukuk which underscores KPJ Group ’ s commitment towards the sustainability agenda .
The Offering , recently established via KPJ Healthcare ’ s wholly-owned subsidiary , Point Zone ( M ) Sdn Bhd , is the first by a healthcare industry player and was upsized to RM650 million from the initial size of RM500 million after an overwhelming response from high-quality investors .
KPJ Healthcare shall utilise proceeds from the issuance to fund , among others , Shariahcompliant financing activities comprising the expansion , working capital requirements and general corporate purposes of the KPJ Group ’ s healthcare and healthcare-related businesses .
Malaysian Rating Corporation Berhad has assigned the Sukuk Wakalah Programme a final rating of AA-IS ( CG ) ( stable ).
Maybank Investment Bank and OCBC Al- Amin Bank Berhad (“ OCBC Al-Amin ”) are the Joint Principal Advisers , Joint Lead Arrangers and the Joint Sustainability Advisers for the Sukuk Wakalah Programme . At the same time , the Joint Lead Managers are Affin Hwang Investment Bank Berhad , HSBC Amanah Malaysia Berhad , Maybank Investment Bank and OCBC Al-Amin .
Commenting on the transaction , Ahmad Shahizam Mohd Shariff , the President & Managing Director of KPJ Healthcare , said : “ The Offering marks KPJ Healthcare ’ s successful return to the capital markets after a hiatus of more than a decade and we are indeed pleased with investors ’ strong response and the outcome of the transaction .
“ The overwhelming demand indicates market confidence in our business strategies moving forward while we endeavour to create sustainable long-term value for our stakeholders , built upon the foundation of our 40 years ’ track record in the Malaysian private healthcare industry .”
Dato ’ Fad ’ l Mohamed , Chief Executive Officer , Maybank Investment Bank , said : “ Maybank Investment Bank is pleased to play joint lead roles in this maiden Sukuk Wakalah Programme by a leading healthcare group . While there is scarcity of supply for credit within the healthcare industry , the pricing of the Offering also reflects investors ’ confidence in KPJ Healthcare ’ s strong financial and credit position . We look forward to continuing supporting issuers with our awardwinning ideation and solid track record in the sustainable finance space .”
Tan Ai Chin , Managing Director , Senior Banker and Head of Investment Banking , OCBC Bank , said : “ OCBC is delighted to continue our strategic collaboration with KPJ Group , having played key roles in arranging this landmark Offering which has set a new milestone in the capital markets .
“ The success of the book-building exercise , which translates into optimal cost of funding for KPJ Healthcare , is not only attributable to the well-executed distribution strategies by the joint arrangers , but stands also as a testament to KPJ Healthcare ’ s strong position as the country ’ s leading private healthcare service provider .”