PREVIEW HALAL TRAINING PROGRAMME

(A Human Capital Development Programme)

By: Dr. Noriah RamliSecretary, Halal Industry Research Centre,

International Islamic University MalaysiaNATIONAL HALAL FORUM-2007, ORGANISED BY HDC,

MATRADE HALL, KUALA LUMPUR

ISLAM has the second largest number of followers in the world and ~1 in 5 of the world’s population are Muslims.

Year 2000 CEMuslims 20% of world pop.

Muslims – Annual Growth Rate: 2.9% - (Britannica)

Year 2025 CEMuslims 33% of world pop.

Muslims form a single nation (ummah) by virtue of their belief and religion of Islam Halal-important and integral part of Islamic life. God given standard for Muslims to live by Halal logo - become a branding in advertising foods for Muslim consumption

MUSLIM POPULATION: ASIA 69.1% AFRICA: 27.4% EUROPE: 2.8% N. AMERICA: 0.5% OTHERS 0.2%

“Eat and drink of that which God has provided and act not corruptly, making mischief in the world” (Al-Quran 2:60)

“O mankind! Eat of what is lawful and good on earth and follow not the footsteps of the devil” (Al-Quran 2:168)

“O you who believe! Forbid not the good things which God has made lawful for you and exceed not the limits. Surely God loves not those who exceed the limits. And eat of the lawful and good that has God given you, and keep your duty to God in whom you believe” (Al-Quran 5:87-88)

THE IMPORTANCE OF HALAL & HARAM FOR MUSLIMS

THE IMPORTANCE OF HALAL & HARAM FOR MUSLIMS

(STATEMENTS OF THE PROPHET MOHAMMAD pbuh)

Those who consume Halal, follow the tradition of the prophet and do not harm others will go to paradise. (Tirmizi)

Many people put a lot of effort in worship of Allah and then spread their hands saying, “O Allah, please accept our supplication.” But if their eating is Haram, their drinking is Haram, their clothing is Haram, how would then their supplication be accepted? (Muslim and Tirmizi)

I swear by Allah in whose hands is my life. When a eats a tiny piece of an item which is Haram, none of his deeds are accepted by Allah for forty days. When the flesh of the body is built from Haram then his body Only deserves the Hell Fire. (Muslim)

Excerpts from recent speeches by the Hon. Prime Minister, Dato’ Seri Abdullah Haji Ahmad Badawi on Halal Industry:

THRUST 1: TO MOVE THE ECONOMY UP THE VALUE CHAIN  

“The Government will continue to promote the transition to higher value added activities in three main economic sectors, the first being manufacturing; second, services; and third, agriculture. New sources of growth in these sectors will be identified and promoted to generate additional income and to develop new sources of economic wealth.” 

Enhancing value added in manufacturing, services & agriculture 

“To leverage on Malaysia’s advantages in the halal sector, particularly in terms of certification and logo recognition, the Plan will drive the sector’s growth in making Malaysia an international hub for halal products and services. The Halal Industry Development Board will be established to develop this industry in a holistic and orderly manner.” 

Quotes from the Hon. Prime Minister, Dato’ Seri Abdullah Haji Ahmad Badawi, 9th MP Speech:

THRUST 2:

ENHANCING THE NATIONAL CAPACITY FOR KNOWLEDGE AND INNOVATION AND NURTURING CITIZENS WITH “FIRST CLASS MENTALITY” 

“The most precious assets of a nation are its people. The development of human capital, the upgrading of the mentality and intellectual capacity of a nation is one of the biggest challenges under the Ninth Malaysia Plan. If we wish to become a knowledge-based economy, if we wish to be a developed country and maintain that developed status, the development of human capital must be a priority. In the context of globalisation, high quality human capital has become a necessity, not merely a luxury. ”

Quotes from the Hon. Prime Minister, Dato’ Seri Abdullah Haji Ahmad Badawi, 9th MP Speech:

PROMOTING HALAL INDUSTRY TO THE GLOBAL LEVEL

“Given Malaysia’s potential to spearhead and further promote the global halal industry, the Halal Industry Development Corporation (HDC) will be established under the Prime Minister’s Department, with a launching grant of RM25 million. This Corporation will coordinate and ensure the integrated and comprehensive development of the Industry. It will also coordinate efforts to review standards, develop the local industry, promote Malaysian halal products and services in international markets, as well as support investments in the domestic halal sector. The Malaysian International Halal Showcase (MIHAS) and The World Halal Forum 2006, which received a tremendous response, will be an annual event.”

A quote from the Hon. Prime Minister, Dato’ Seri Abdullah Haji Ahmad Badawi, 2007 Budget Speech

PROMOTING HALAL INDUSTRY TO THE GLOBAL LEVEL

“A sum of RM50 million is allocated to set up halal parks in Pasir Mas - Kelantan, Gambang - Pahang, Chendering - Terengganu and Padang Besar - Perlis. The SME Bank is also allocated a sum of RM20 million to finance entrepreneurs to develop these products”

A quote from the Hon. Prime Minister, Dato’ Seri Abdullah Haji Ahmad Badawi, 2007 Budget Speech

From our observation, it is apparent form the above aspirations spelled out by the Hon. Prime Minister with regards to Halal Industry for the 9th MP, and the role of HDC as outlined in the 2007 budget speech that:

• there is an absence or lack of emphasis on the importance of Human Capital Development related to Halal Industry in HDC’s role, – in particular, comprehensive halal training programme(s) – to produce competent halal personnel

• establishment of credible and dedicated centres with facilities set-up for research, testing and monitoring of halal products and accessories

The International Islamic University Malaysia (IIUM), with its academic and research strength as well as conducive Islamic environment has established a special centre dedicated to Halal industry: Halal Industry Research Centre.IIUM Halal Industry Research Centre will assist Malaysia, as well as other interested organizations or countries, to become prominent Halal Industry players in terms of providing:

• Human Capital Development • Product Testing and Monitoring • R&D Solutions for Innovative Halal Products and Services• Consultancy Services

Halal Industry Research CentreInternational Islamic University Malaysia

IIUM Halal Industry Research Centre will engage in the following activities:

• providing courses and supervising research on Halal related areas.

• providing consultancy services to the halal industry.

• organizing seminars (and conferences).

• collaboration with local and international centres of excellence in the same field.

• collaboration with the private sectors locally and internationally to create the comprehensive concept of Halal in various activities of economic importance.

In short, IIUM Halal Industry Research Centre aims:

• To make IIUM a reference centre on Halal related matters.

• To promote research and development in innovative Halal products and services.

• To develop and nurture a pool of specialists in the field of Halal products, management and monitoring.

• To foster and increased understanding of contemporary Halal products and services through seminars and conferences.

• To foster a closer relationship through smart partnership between the Halal industry and IIUM, locally and globally.

THE (mis)UNDERSTANDING OF HALAL IN FOOD INDUSTRY

To Majority of Muslims religious command on the ways of eating

To Non-Muslims eating without pork or alcohol

To Industriesnon-pork, non-alcohol products for Muslims that when labelled

presented as such to the market shall provide economic gain

According to the Dictionary

meat slaughtered according to Muslim Laws

Contrary to general perception, Halal is for everybody.(It promotes the well-being of mankind, irrespective of religious and Geographical boundaries.)

to Muslims, it is a prescription from God meant for their physical and spiritual well-being

for non-Muslims it means safe, wholesome products for the general well-being

for the industry, the production of Halal food is not only beneficial to Muslims, but also to non-Muslim food producers, by means of an increased market acceptance of their products.

Approved items Hygienic Ethical behaviour Cleanliness & Efficiency ‘Wholesome’ & ‘Beneficial’

Halal

WHAT ARE THE OPPORTUNITIES?

~ 1.4 billion Muslims are excellent market for halal products - business opportunity

Halal products and services are acceptable to non-Muslims

Rapid development and interest in halal products and services in the world

Products with halal logo synonymous with quality products

Malaysia’s multi-ethnic and multi-religious society enable diversified products

Malaysia is highly respected by Muslim countries and Muslim communities around the world

Cost effective production/manufacturing of halal products using available raw materials in the country, region/neighbouring countries

17 Julai 2004 (Utusan Malaysia)

JAKIM mengesan 27 kes kesalahan yang melibatkan penyalahgunaan logo Halal jabatan itu di seluruh negara sepanjang enam bulan pertama tahun 2004

Cases in Malaysia

2005/2006

”Ayam dan anak babi disimpan di dalam peti sejuk bersama'’

”Tempat pemprosesan ayam kotor'’ ”Ayam mati disebabkan aliran elektrik'’ ”Ayam disembelih dua kali'’ ”Ternakan ikan air tawar diberi makanan

usus babi yang direbus'’

Cases in Malaysia

POSSIBLE CONSEQUENCEIf not rectified, may tarnish the nation‘s/organization‘s reputation and tremendously effecting the nation/organization Halal products and services worldwide!

WHY IT HAPPENED?Upon close analysis, the likely cause for these recurring distasteful events are: Lack or insufficient competent & responsible personnel Industry: absent or defective internal control and monitoring mechanism/system on Halal

Authority: cannot implement effective processing for Halal certification & monitoring

Halal Training Programme

To produce trained, competent, and responsible personnel that:

• will plan, direct and supervise halalness/halal assurance division for the complete implementation of halal concept in the organization

• can execute halal-related certification and monitoring processes more efficiently

Objective

“Allah likes that when someone does anything, it must be done in an excellent manner”. (Bukhari & Muslim)

executives in food production (raw, semi-finished and finished products), nutraceutical, pharmaceuticals, cosmetics, accessories, and services

operators and supervisors in restaurant, hypermarket and supermarket

authorised personnel involved in halal products and services: e.g. certification and monitoring; enforcement etc..

graduates, unemployed graduates and soon to be graduates

WHO SHOULD ATTEND?

SUGGESTED MODULESSUGGESTED MODULES

MODULEMODULE TITLE TITLE HOURHOUR11 Principles of ShariahPrinciples of Shariah 6 6

22 Current Manufacturing PracticesCurrent Manufacturing Practices 66

33 Management of QualityManagement of Quality 1212

44 LawsLaws 66

55 Values and IntegrityValues and Integrity 66

66 Food Science & TechnologyFood Science & Technology 1818

77 Halal Related StandardsHalal Related Standards 1818

88 Islamic Best PracticesIslamic Best Practices 1818

99 Management of HalalManagement of Halal 1818

1010 Halal System AuditHalal System Audit 1818

1111 ConsumerismConsumerism 66

BENEFITS

knowledgable employer, manager, etc.. executives, managers, supervisors will be key resource persons on halal in the company/plant

continuous and/or retraining of authorised personnel to be (or remain)

competent

strengthening an organisation‘s or a country‘s position to be a key global halal producer and exporter

generate new opportunity for business and trades in halal products and services

better employability for new graduates

• increase revenue for company and country, and increase income for the population

Halal Training(Human Capital Development)

Manufacturing(moving up the value

chain)

Manpower(new opportunity for

unemployed graduates)

Government & Related Enforcement

Agency

Open new market opportunity

& Consumer Confidence

Global Brand“Halal Malaysia”

Company & Business Growth

More Competent

Consumer Confidence

More efficient in halal executions (approval,

monitoring, audit, enforcement)

PERSPECTIVE

HTP is the only one of its kind (to date) - comprehensive, intensive and following the aspiration of Muslims.

HTP can be exported and/or franchise to other parts of the globe for countries wishing to conduct trade/business with Muslims around the world

Human Capital Development – IIUM significant contribution to OIC, the Muslim world, and Halal Industry.

IIUM has the technical expertise in the development and implementation of HTP (human resource, excellent global network among staff and students, excellent teaching and learning facilities, etc..)

Your partner in:

Halal Industry Research Centre

International Islamic University Malaysia(IIUM-HIRCen)

Making individuals & organizations more competent for the Halal industry

Human Capital Development Product Testing and Monitoring Consultancy Services R&D Solutions for Innovative Halal Products & Services

Halal

IIUM

HIRCen

HALAL HALAL PRODUCTS & PRODUCTS &

SERVICESSERVICES HALAL Products includes both Food & Non HALAL Products includes both Food & Non

FoodFoodItems. Items.

HALAL Food is not only Meat and Poultry but HALAL Food is not only Meat and Poultry but also other Food Items such as: also other Food Items such as: • ConfectioneryConfectionery• Canned & Frozen FoodCanned & Frozen Food• Bakery ProductsBakery Products• Organic FoodOrganic Food• SpicesSpices• Herbal SupplementsHerbal Supplements• Beverages etcBeverages etc

The Exporters ClubThe Exporters Club

HALAL HALAL PRODUCTS & PRODUCTS &

SERVICESSERVICES

HALAL Products also includes Non-HALAL Products also includes Non-Food Food

products such as:products such as:

• CosmeticsCosmetics• ToiletriesToiletries• Beauty productsBeauty products• PharmaceuticalsPharmaceuticals• Leather productsLeather products• Perfumes etcPerfumes etc

The Exporters ClubThe Exporters Club

HALAL HALAL PRODUCTS & PRODUCTS &

SERVICESSERVICESBesides merchandise, HALAL ServicesBesides merchandise, HALAL Servicesare also important components of the are also important components of the HALAL market: HALAL market:

• Islamic Banking Islamic Banking • Securities & BondsSecurities & Bonds• TravelTravel• TakafulTakaful• Logistics & ShippingLogistics & Shipping• Certification etcCertification etc

The Exporters ClubThe Exporters Club

HALAL HALAL STANDARDS & STANDARDS &

CERTIFICATIONCERTIFICATIONHALAL StandardsHALAL Standards• No Single Standard in the worldNo Single Standard in the world• World HALAL Council is working on a Single World HALAL Council is working on a Single

StandardStandard• National HALAL Development Corp of MalaysiaNational HALAL Development Corp of Malaysia• MS 1500 – Dept of Standard of Malaysia MS 1500 – Dept of Standard of Malaysia • Individual Country StandardsIndividual Country Standards

HALAL CertificationHALAL Certification• World HALAL Council World HALAL Council • IFANCA worldwideIFANCA worldwide• Certification Bodies – ASEAN; USA & Canada; UK, Certification Bodies – ASEAN; USA & Canada; UK,

France, Netherlands; South Africa; Argentina & France, Netherlands; South Africa; Argentina & Brazil; Australia & New Zealand; Other CountriesBrazil; Australia & New Zealand; Other Countries

The Exporters ClubThe Exporters Club

•-

HALAL HALAL STANDARDS & STANDARDS &

CERTIFICATIONCERTIFICATIONFuture of HALAL Certification Future of HALAL Certification

• More coordinatedMore coordinated

• Single Certification with a common logoSingle Certification with a common logo

• Almost all countries will have a certification body in their Almost all countries will have a certification body in their countrycountry

• HALAL to emerge as an ISO-compatible standard with HALAL to emerge as an ISO-compatible standard with independent, transparent industry-compatible auditing independent, transparent industry-compatible auditing procedures, that will in turn enable more HALAL certified procedures, that will in turn enable more HALAL certified products to fill the shelves to meet the global demand products to fill the shelves to meet the global demand

• As the industry grows, it will require more comprehensive As the industry grows, it will require more comprehensive standards, to cover all of the stages from the farm to the standards, to cover all of the stages from the farm to the fork. fork.

The Exporters ClubThe Exporters Club

MARKET TRENDMARKET TREND

HALAL DISTRIBUTION – CONTDHALAL DISTRIBUTION – CONTD

• More and more Supermarkets and Hypermarkets are More and more Supermarkets and Hypermarkets are adding HALAL Sections or Shelves to attract ethnic adding HALAL Sections or Shelves to attract ethnic Muslim population in non-Muslim countries egs. TESCO in Muslim population in non-Muslim countries egs. TESCO in UK and Carrefour & AUCHAN in FranceUK and Carrefour & AUCHAN in France

• There are also moves to create HALAL supermarkets in There are also moves to create HALAL supermarkets in various countries to market HALAL productsvarious countries to market HALAL products

The Exporters ClubThe Exporters Club

HALAL PROMOTIONHALAL PROMOTION

PROMOTION OF HALAL PRODUCTS & PROMOTION OF HALAL PRODUCTS & SERVICESSERVICES

Many initiatives have been taken by governments and the Many initiatives have been taken by governments and the private private

SectorsSectors

• HALAL Exhibitions - Kuala Lumpur, Dubai, Jakarta, Brunei HALAL Exhibitions - Kuala Lumpur, Dubai, Jakarta, Brunei and Singaporeand Singapore

• More Shows in 2007 in India, UK, USA, Jordan, Bahrain, More Shows in 2007 in India, UK, USA, Jordan, Bahrain, Australia and South AfricaAustralia and South Africa

• The recently held World HALAL Forum in Kuala Lumpur is The recently held World HALAL Forum in Kuala Lumpur is another initiative to promote the HALAL Tradeanother initiative to promote the HALAL Trade

• International HALAL conferences and Seminars are also International HALAL conferences and Seminars are also being held worldwidebeing held worldwide

The Exporters ClubThe Exporters Club

HALAL PROMOTION HALAL PROMOTION

PROMOTION OF HALAL PRODUCTS & PROMOTION OF HALAL PRODUCTS & SERVICESSERVICES – –

CONTDCONTD

• There are also many publications on HALAL that are There are also many publications on HALAL that are focused on promoting the HALAL trade. focused on promoting the HALAL trade. - HALAL Journal, MalaysiaHALAL Journal, Malaysia- World HALAL DirectoryWorld HALAL Directory- Australian HALAL QuarterlyAustralian HALAL Quarterly- EuroHALAL MagazineEuroHALAL Magazine- HALAL Lifestyle, Philippines etc. HALAL Lifestyle, Philippines etc.

These publications aim to create greater awareness on the These publications aim to create greater awareness on the HALALHALALrequirements for global trading requirements for global trading

The Exporters ClubThe Exporters Club

LIMITATIONS & LIMITATIONS & CHALLENGESCHALLENGES

LIMITATIONS & CHALLENGESLIMITATIONS & CHALLENGES

• Currently there is no single standard that is recognised Currently there is no single standard that is recognised worldwide.worldwide.

• There are also numerous Certification bodies worldwide, of There are also numerous Certification bodies worldwide, of which their recognitions vary from country to country. The which their recognitions vary from country to country. The World HALAL Council which monitors the various World HALAL Council which monitors the various Certification bodies has not been able to come up with a Certification bodies has not been able to come up with a single standard for its members. single standard for its members.

• Lack of data on HALAL Trade - There is no proper Lack of data on HALAL Trade - There is no proper classification of HALAL products under the Customs code classification of HALAL products under the Customs code and as such data on actual trade are difficult to obtainand as such data on actual trade are difficult to obtain

• Most Muslim countries do not impose Halal Certificate as a Most Muslim countries do not impose Halal Certificate as a compulsory requirement compulsory requirement

The Exporters ClubThe Exporters Club

MARKET MARKET OPPORTUNITIES OPPORTUNITIES

MARKET OPPORTUNITIESMARKET OPPORTUNITIES

• Estimate of 1.7 billion Muslim consumers of HALAL Estimate of 1.7 billion Muslim consumers of HALAL products and services. The number is increasing rapidlyproducts and services. The number is increasing rapidly

• Increased awareness – more countries are requesting for Increased awareness – more countries are requesting for HALAL certified products and demand from non-Muslims HALAL certified products and demand from non-Muslims are also increasingare also increasing

• Range of HALAL products expanding leading to a bigger Range of HALAL products expanding leading to a bigger marketmarket

• More and more Hypermarkets and Supermarkets are More and more Hypermarkets and Supermarkets are setting up HALAL sectionssetting up HALAL sections

The Exporters ClubThe Exporters Club

MARKET MARKET OPPORTUNITIESOPPORTUNITIES

MARKET OPPORTUNITIES - CONTDMARKET OPPORTUNITIES - CONTD

• Opportunities in HALAL Services such as Certifications, Opportunities in HALAL Services such as Certifications, Branding, Packaging, Logistics & Shipping, Travel, Branding, Packaging, Logistics & Shipping, Travel, Fashion, Islamic Finance and Takaful etcFashion, Islamic Finance and Takaful etc

• Opportunities in other HALAL related activities – Events, Opportunities in other HALAL related activities – Events, Conferences, Science and Research, Publications, HALAL Conferences, Science and Research, Publications, HALAL Processing Zones etcProcessing Zones etc

The Exporters ClubThe Exporters Club

MODULE 1 : Basic Knowledge

• Duration: 2 days course - Course 1: General Public - Course 2: Interested parties (individual or company that has no halal-related certificate, but is now interested in halal, becoming a new applicant) • Implementation in July 2007

Due dates:

IIUM Halal Industry Res. Ctr. : Wed, 23 May 2007HDC: Fri, 25 May 2007

Content of submission.1. Proposed module with details of topics outlined in course content2. Costing3. Expertise & CVs4. Co. profile5. Track Record & Achievements

MODULE 2 : Intermediate & Operators

• In-house OTJ Training, Duration: 3 days to 1 week - Course 1: Managers - Course 2: Halal Executives - Course 3: Supervisors - Course 4: Production Operators • Implementation in September 2007

Due dates:

IIUM Halal Industry Res. Ctr. : TBDHDC: TBD

Content of submission.1. Proposed module with details of topics outlined in course content2. Costing3. Expertise & CVs4. Co. profile5. Track Record & Achievements

MODULE 3 : Professional Courses

• Duration: Vary - Course 1: Trainers - Course 2: Auditors 2a. Adequacy

2b. Compliance2c. Lead

- Course 3: Consultant• Implementation in early 2008

Due dates:

IIUM Halal Industry Res. Ctr. : TBDHDC: TBD

Content of submission.1. Proposed module with details of topics outlined in course content2. Sample Questions (and perhaps model answers)3. Costing4. Expertise & CVs5. Co. profile6. Track Record & Achievements

• mandatory Exams• prerequisites