Halal Products: Best Opportunities

for Thailand and Malaysia

Lee Garden Plaza Hotel, HadYai, Thailand.

19 January 2010

CONTENT

1. Halal Industry

2. Halal Value Chain

3. Rebranding Halal

4. HDC and Its Programmes

5. Summary

Different Sectors of Halal Industry

Halal Products and Services

Foods

Pharmaceutical

Toiletries &Cosmetics

Food Additives

Food Supplements

Drugs and vaccines

Islamic Finance

Leather Products

Insurance

HALAL Products includes both Food & Non

Food Items.

HALAL Food is not only Meat and Poultry but

also other Food Items such as:

- Confectionery

- Canned & Frozen Food

- Dairy Produce

- Bakery Products

- Organic Food

- Herbal Products

- Beverages etc

Halal Products

Potential Size of Halal Market

35

129

5

6

23

10

FMCG sector

Nutraceutical

Confectionery

Cosmetics & personal care

Bakery products

Processed food & beverages

Primary meat“Potential Halal”

market has been quantified as the target market that can potentially be captured

Approximately 67% of potentially Halal products are

categorized as fast moving consumer goods (FMCG)

Food FMCG and primary meat together account for 62% of the market

Source: Euromonitor reports; FAOSTAT

Pharmaceutical

5

Region Muslim Per capita food Halal Market

population expenditure Value Million US$

Africa 462 250 115,443

West Asia 195 570 111,150

South Central Asia 585 300 175,440

South East Asia 266 350 93,230

China 39 175 5,865

Europe (inc Russia) 51 1,250 63,988

N. America 9 1,750 14,455

S. America 1.6 500 820

Oceania .35 1,500 525

Total 1,608 mil. $580,916

Source:

www.islamicpopulation.com,,Euromonitor

Size of Global Halal Food Market 2005

6

Feed & Farm Management

Ingredients

Manufacturing/Processing

Logistic

R&D/Technology

Finance

Communication/Branding

Halal Value Chain

Protecting the integrity of the ENTIRE Halal value chain is of utmost IMPORTANCE

Are the animal feeds from non-halal based products?

Emulsifiers, gelatine, preservatives, colouring, flavouring

Who monitors & how do you verify?

Warehousing, Transportation

Alcohol extraction methods, enzymes & Bacteria

Haram sources of Income when there is alternatives

Vegetarian Brand? Is it acceptable to brand vegetarian

pork as halal?

• Halal meat mainly come from cattle, buffalo, goat & chicken.

• Halal animal feed (an issue after the Mad-cow disease scare).

• Prohibition of cannibalistic feeding practices (Jalalah).

• Growth hormone (Most chicken feed used by commercial farms contain pig enzyme).

Halal Farming

Animal Feed

Hormone

Enzyme

Antibody

Animal Slaughtering

• Issues on Stunning

• Thoraxic Sticking

• Cleanliness

• Correct techniques

• Dedicated abattoirs

• Animal welfare

• Main halal products – frozen food, ready-to-eat food, snacks & meat.

• Issues on Halal additives, preservatives, colorings, emulsifier, Gelatin etc

• Use of palm oil can avoid contamination from haram ingredients.

• Nestle – 35% of its sales are Halal products. 75 Halal plant producing 100 halal products

• 80% of world food producers are non-Muslim from developed non-Islamic countries.

Halal Food Manufacturing

Halal Ingredients

• It’s the key factor in Halal food, cosmetics & toiletries.

• Prima Agri produce specialty processed food (meat based)

• Clara International produce Halal skincare product.

• Additives, preservatives, colouring, emulsifier, Gelatin –Cargill, Monsanto

• Halal food supplements –Halagel, CCM

• Halal food grade lubricants –‘Shell Switzerland’

• Palm oil has great potential to replace many haram ingredients in food.

Halal Logistics

• Halal Traceability: no

contamination and maintain

Halal status of the goods.

• To avoid cross contamination

• MISC Halal Express Service

– Halal cargoes from

ASEAN, the Far East and

Oceania to the Middle East

• Container Samak (cleansing

according to Shariah) a

future lucrative business

Re-branding Halal

– Halal is healthy

– Halal is clean

– Halal is a premium

product

– Halal is humane to animal

– Halal is environmentally

friendly

– Halal is fair trade

Halal: gaining world recognition

Consumer Interest:

• Provide Confidence and sign of quality. Gives assurance

to 1.8 billion Muslim consumers.

Business Interest:

• Industries and businesses uses Halal certificate and logo

as a tool or catalyst for their economic benefit

National Interest:

• Standards facilitate industrial development and is an

essential part for national development infrastructure

THE EMERGING SECTORS

ISLAMIC FINANCE &

INSURANCE

HALAL TOURISM

MAGAZINE, TV & MULTIMEDIA

CONSULTANCY

& TRAINING

CERTIFICATION AGENCY

HALAL ICT

HALAL EXPO & CONFERENCE

HALAL TESTING LABS

HALAL WEALTH/HEALTH CENTRE

• Halal food at hotel & tourist spot

• Halal certified food for infllight

kitchens or made available on

airlines

• Prayer time and facilities &

Kiblah direction

• Health or wellness centres

• Women-only hotel facilities are

up and coming investment

trends currently gaining global

popularity

Halal Tourism

Halal ICT• K-Knowledge

• On-line Halal Software Application

• HDC Call-Centre for Global Halal Industry

• HDC – Global Halal Reference Centre

• HDC - Walk in Centre

Background of HDC

The Halal Industry Development Corporation (HDC) is

an initiative by the Malaysian Government to ensure

the integrated and comprehensive development of

the Halal Industry.

Established on September 18, 2006 as a private

company wholly owned by the Government of

Malaysia through the Ministry of Finance.

The organisation is currently placed under the

Ministry of International Trade and Industry (MITI).

HDC is the first Development Corporation for the

Halal industry in the world.

HDC Strategic Thrusts

HDC

Halal Integrity Industry Development Brand Development

Global Halal Support Centre

Key reference centreFirst contact pointThought leadership

• Standard• Certification• Training Programs• GMP/HACCP• R&• Consultancy• Technical Advisory

• HDC Incentives• Corridors• Halal SME leveraging• Business Matching• Facilitate Funding• Quality infrastructure• Business advisory

• Promotion strategies• Co-branding• Trade Missions/Events• International exposure

• Aims to bridge the gap between current level of

awareness & understanding and the kind of

expertise needed to support the growing Halal

industry

• Developing human resource capacity in the

Halal sector (competency)

• Maintaining Halal Integrity from farm to table

• Through competent trainers & standardized

training modules

HDC – Training Services

HDC HALAL TRAINING MODULES

HALAL AWARENESS PROGRAMME

(HAP)

HAP01 -

Understanding Halal

(1 day)

HAP02 -

Understanding the Halal Industry

(2 days)

HAP03 -

MS1500:2004 - The Malaysian Halal Food

Standard

(1 day)

HALAL INDUSTRY PROGRAMME

(HIP)

HIP01 -

Best Halal Practices in the Food Industry

(2 days)

HIP02 -

Effective Halal Operations in the Food

Industry

(2 days)

HIP03 -

Internal Halal Auditing Workshop

(3 days)

HALAL PROFESSIONAL PROGRAMME

(HPP)

HPP01- Professional Halal Trainers Workshop

(5 days)

HPP02- Professional Halal Auditors Workshop

(5 days)

HPP03- Refresher Course for Halal Consultants

(1 day)

TRAINING IN SESSION

23-24 June 2010KUALA LUMPUR, MALAYSIA

Objectives of WHR Summit

•To provide an international platform.

•To encourage more research on products;

processes, services and standards relevant to

Halal industry

•To establish an international network among

scientists, researchers, academicians in

developing a pool of recognized International

Reference Center in Syariah and Scientific

research

MOVING TOGETHER

Indonesia Malaysia Thailand Growth Triangle (IMT-GT)

– Developmental Plans from 2007-2011, with the following programmes:

• Plaza IMT-GT for retailing and distribution

• Annual Halal Expo and Maulud Nabi Celebration

• Food Safety Project, Thailand

• Halal Highway Rantau, Malaysia

• Halal Trading Project

• Halal Science Laboratory Network

• Halal Hotel-Kitchen and Restaurants

• Halal Medical Hub

• International Halal Science Symposium

• Business Incubators for Halal Products and Services

Halal Industry Development Corporation 26

Global Halal

Market

Malaysia (Standard, Training,

Certification, Logistics)

Indonesia

(Raw ingredients, Certification, Distribution)

Thailand

(Semi-processed,

Processing and Packaging)

FUTURE POTENTIALS

• IMT-GT countries need to work together to realise the Global Halal Hub (Halal Industries)

• Complement each other is the only way forward to add value to ASEAN productivity

• United we can fulfilthe global needs

Halal Industry Development Corporation 27

INDONESIA

HDC

THAILANDMALAYSIA

HALAL R&D

SECRETARIAT

-Road Map

EXPORTER OF

HALAL PRODUCTS &

SERVICESIMT-GT

SUMMARY

• Standard, knowledge and experience are crucial

for Halal Competency

• Halal Training is important for human resource

development in the Halal industry

• Integrity of Halal products from farm to fork is

important and made possible by competent

personnel and through halal certification

• United and complement each other is the way

forward for Malaysia and Thailand Halal

Business Sector

THANK YOU