MARCH-APRIL . 2023 | @ Halal

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BY DANIAL FAUZI

There is a growing trend of businesses in Taiwan and Japan , and in European countries in their initiatives to shift their business paradigm to be more Muslim-friendly . These efforts to obtain the halal certification to accommodate Muslim consumers are a noble path in attracting more Muslim consumers to their businesses .

Therefore , the halal ecosystem should not only cover the food & beverage ( F & B ) sector but also other sectors and the sales and supply lines , as halal does not end at what we consume .

FINANCIAL TRADES AND ASSISTANCE

“ In terms of halal , we only think of F & B , but now it encompasses tourism , pharmaceuticals , trade and even banks , the whole ecosystem ,” said Zulfadhli Marjo , Initiative Owner , Enhancement and Solutions ( Trade ) Maybank Islamic , during his presentation at SELHAC .

In this modern era , Muslims are particular in terms of what they consume and whether the products they use are from halal sources , supplied through halal means or traded with adherence to the halal concept .

Zulfadhli remarked that through Islamic finance , banks could protect buyers and sellers by facilitating domestic or international trade by protecting both parties by providing them with the necessary instruments to minimise risk or obtaining cash turnarounds for their businesses .

THE HALAL SUPPLY CHAIN

“ Raw materials that come from suppliers must be halal , with the involvement of halal

THE Selangor International Halal Convention ( SELHAC 2023 ) provided an excellent platform for industry players showcasing the best accommodation for Muslim travellers .

With the recent trends of businesses shifting their paradigm for a more Muslim-friendly experience , many countries such as Taiwan , Japan and even some European countries are establishing various initiatives to provide accommodation for the Muslim market .

With initiatives in establishing a foothold within the market , this may provide the perfect opportunity for Malaysian halal brands to set their sights on foreign markets such as Australia , the United Kingdom ( UK ) and other European countries , bringing benefits to both brands and consumers alike .

EYEING THE AUSTRALIAN MARKET

Paul Sanda , Minister-Counsellor ( Commercial ) at the Australian Trade and Investment Commission , expressed optimism about collaborating with the various halal brands in Malaysia . He said Malaysian businesses could source high-quality and premium materials and ingredients used in the manufacturing and processing of products of impeccable quality either for domestic or foreign markets .

“ For the Australian market , halal-certified products are welcomed as it is estimated that Muslims in Australia number between 700,000 and 1,000,000 . It is not as many as the UK , but it is still a significant number ,” said Sanda .

logistics per Shariah law ,” said Prof Datuk Dr Malik Musharaf , CEO of PFM Global Ventures Sdn Bhd .

“ As Muslims must consume products as emphasised in the Quran , the supply lines that bring in raw materials to be stored and processed must be transferred and stored through halal means .”

Therefore , said Dr Malik , Shariah principles must be applied throughout the supply chain , from sourcing , manufacturing , transportation , warehousing , freight handling and finally , to the consumer .

FROM SOURCE TO STORES

“ The concept of a halal supply chain is to avoid cross-contamination from haram and hazardous substances ,” said Dr Harlina Suzana

He added that many Australians are slowly learning to trust the halal concept and how it integrates into a product ’ s rigorous manufacturing process .

“ This includes the levels of hygiene and cleanliness and the personnel involved in the manufacturing process itself , as more consumers today pay attention to what they use and consume .”

READINESS OF HALAL

Prasad Babu Ramulu , the Head , Industry Engagement and Market Development at the Malaysian Digital Economy Corporation ( MDEC ), said they have been working closely with the Malaysia External Trade Development Corporation ( MATRADE ) to drive the export of Malaysian products overseas .

He said the food and beverage ( F & B ) sector is one where halal products truly shine when it comes to exports due to the recognition

From left : Mohd Fadhil Ab Rahman , Prof Datuk Dr Malik Musharaf , Zulfadhli Marjo , Dr Harlina Suzana Jaafar .

From left : Dr Khairil Ismahafiz Muhadzir , Paul Sanda , Prasad Babu Ramulu , Hairul Hafizi .

Jaafar , Assoc Prof of Transport & Logistics Centre for Halal Management & Business Innovation , Faculty of Business and Management at UiTM in Shah Alam .

As trade routes get lengthier , the supply chain risks being exposed to more haram and hazardous contaminants . Also , supply chain management can differ depending on products such as F & B and cosmetics .

Dr Harlina said precautions must be taken to ensure that raw materials and products are not contaminated by haram or hazardous substances . There must also be cohesive halal training , including internal halal audits for staff members throughout the supply chain or even preparing a halal risk management plan to maximise existing halal routes and minimise potential exposure to contaminants .

of the Department of Islamic Development Malaysia ’ s ( JAKIM ) halal certification , which is considered to be one of the highest standards in the world . Therefore , the halal methods used in product manufacturing are highly sought-after .

Prasad added that government platforms such as the Ministry of International Trade and Industry ( MITI ) be more involved in facilitating new halal standards required for the global market . As halal certifications are difficult to obtain , Malaysian companies and smaller SMEs may lag behind the global market requirements .

BRANDING OF PRODUCTS IMPORTANT

Hairul Hafizi , Principal Community Leader , Halal Street UK , said halal was often associated with meat and food ingredients . It is essential to educate consumers in the UK that halal also means the process of manufacturing the ingredients , not just the components themselves .

“ The branding of food products is also important within the UK market . Brands and food packages should be labelled in English for UK consumers as they are more comfortable buying food products they understand .

“ Festivals are also important , and Malaysian students in the UK are considered the grassroots . When enough people try the traditional foods from Malaysia during festivals , there would be a demand for it .”

He said they would also conduct pilot runs for food products . “ If people like them , merchants would bring more products to the UK .”