Copyright HDC 2010

HALAL PARKBUILDING BLOCK OF THE HALAL INDUSTRY

MARCH 2011

A Halal Park is a community of manufacturing and service business

located on a common property. In essence, it is a center of

infrastructure excellence, and has been regarded as one of the

building blocks of the halal industry.

In addition to high quality infrastructure, it also houses a wide array

of hygienic facilities and uses an integrated approach to

maintaining standards.

The objective of halal parks is to improve the economic

performance of the participating companies while minimising their

environmental impact. Component of this approach include the

‘green’ design park structure, cleaner production processes,

pollution prevention, availability of and accessibility to raw

materials and ingredients, energy efficiency, inter company

linkages and liaisons, consolidated services from public agencies

as well as linkages for marketing

Halal Park

the real innovation in creating halal parks is the bringing together of

ideas, concepts and practices involving industrial parks

development, food park development, food manufacturing, halal

traceability and logistics into a totally new halal system of supply

chain management.

with this integrated approach, each addition to the system enhances

the value of the other elements / components of the process.

the outcome in mind is the production of halal food, which is safe,

hygienic, wholesome, of high quality and trustworthy that could be

trace back from its source.- Halalan Toyyiban

Halal Park

Halal Supply Chain Value

%

%%

%

%

Islamic Financing

HalalLogistics

Livestock & Agricultural

Produce

HalalEntrepreneurs

SME Development

Export Promotion

Agency Involved

• BNM and MOF

• Malaysia’s Leadership in Islamic Banking provide an excellent Syariahcompliant financial instruments and services for the Halal Industry

Halal Parks

Agency Involved

• MOT

• Halal Logistics involves providing halal certified cold storage facilities, refrigerated transportationand non-contaminated shipping services. Creation of Halal Distribution Centres

Agency Involved

• MOA, DVS

• Livestock and Agricultural Produce involves rearing, grazing, feedlot, syariahcompliant slaughtering and planting of commercial grade agriproducts. GlobalGAP and SALM and SALT compliance.

Agency Involved

• EPU, UPEN & State SEDC

• Halal Parks provide location requirements for SMEs and Foreign Investment. Focus on Flagship Halal Zone, PKFZ, GambangHalal AgriFoodPark and Padang BesarHalal Park.

Agency Involved

• PNS, MARA & PUNB

• Halal Entrepreneurs is an essential part of the value chain particularly the creation of successful entrepreneurs under the BCIC programme

Agency Involved

• SME Corp,KPDNHEP

• Development of Halal SMEs to be export ready and gradually becoming global players. Develop product differentiation and branding. Access to Hypermarkets such as Tesco, Carrefour, Jusco & Giant.

Agency Involved

• MITI• MATRADE• Export

Promotion and Access to Global markets through Matrade. Participation in Halal Expos and promotional visits in strategic markets for Halal Industry players.

HDC’S Role is to ensure an integrated and comprehensive development of the National Halal Industry throughout the entire Halal Value Chain

Key Halal Components - extremely diverse, cuts across multiple sectors and ministries

HalalCertification

Agency Involved

• JAKIM

• Malaysian Halal certification and it’s logo has been widely accepted both domestically and at international level.

Copyright HDC 2010

PRESENTATION BY:

DATO SERI JAMIL BIN BIDIN

6TH MALAYSIA AGRO-BIO INTERNATIONAL BUSINESS

CONFERENCE 2010

MALAYSIAN GOVERNMENT AGRO SUPPLY CHAIN

DEVELOPMENT INITIATIVES WITH REFERENCE TO

THE HALAL DEVELOPMENT PROGRAMME

Potential Economic Activities

in Halal Supply Chain

Input ProductionProcessing/

Value-Adding

Distributive Trade

International Trade

Seed

•Agro-chemicals

• Irrigation

•Machinery & equipment

•Other inputs

Farmer/Producer

•Small farmer/producer

•Group farming/production

•Estate/large scale production

Processor/Value-Adding

•Main product

•Co-products

•By-products

•Wastes

WholesalerInstitutional

buyer/Retailer

AGRI-FOOD SUPPLY CHAIN – FROM ‘SEED TO SHELF’

Bulk/Components Bulk/Pre-packedRaw materials/

Intermediate goods

Local Oversea

Collection Distribution & Storage Logistic

Halal Industry Master Plan

Malaysia should not try to do everything : the strategy is to focus on identified key sectors

Consolidation &Expansion

of

Specialty Processed Food

Industry

Increase Market Access &

International expansion of

Pharmaceutical Cosmetic and Personal Care

Industry

Increase innovation and

leverage on palm oil for the

Halal Ingredients Industry

Address safety, health standards,

compliance & optimization in

the

Meat / poultry / seafood industry

Industry standards & certification

Public sector delivery system

Export led growth &

National self sufficiency

Reference Centre (Halal Integrity including knowledge sharing and continuous improvement)

Legislation and regulatory framework

Physical infrastructure and connectivity

Human capital

Funding and incentives

Focus areas

Enablers

Framework and Desired Outcome

HALAL PARKS

CATEGORY

HALMAS

STATUS

CATEGORY 1

Halal Parks under Category 1 can apply for DesignatedHalal Park Status (HALMAS). Application can be madeonline. Designated Halal Parks can then offer incentives toHalal Industry Player operating in the park.

CATEGORY 2

Halal Parks under Category 2 can apply for the DesignatedHalal Park Status (HALMAS) if comply with requirementand the seven (7) basic features for designing Halal Park.These Halal Parks can then offer incentives to HalalIndustry Player operating in the park.

CATEGORY 3

Halal Parks under Category 3 need to be upgraded tocomply with the requirement for Designated Halal ParkStatus (HALMAS). (Upgrading of SME park to be collection/distribution centers with management)

CATEGORY 4

Halal Parks under Category 4 need to be upgraded tocomply with the requirement for Designated Halal ParkStatus (HALMAS) (Upgrading of Food production area /processing area to collection/distribution centres withmanagement)

CATEGORY 5

Halal Parks under Category 5 are farms producingagriculture product, which are Halal. Need to comply withGAP (Good Agriculture Practices), upgraded to becomeHalal Supply Chain. Provide traceability for Halal products.(agriculture, aquaculture, livestock and food farm)

HALAL PARK

WITH FREE TRADE

ZONE FACILILTIES

HALAL PARK

WITH INDUSTRIAL,

COMMERCIAL & TRADING ZONE

HALAL PARK

WITH PROCESSING &

MANUFACTURING

FACILITIES

HALAL FOOD

PRODUCTION AREA/

PROCESSING AREA

AGRICULTURE &

FOOD FARMS

HALAL PARK DEVELOPMENT GUIDELINES

Develop the Halal

Parks Guidelines

Categorize Halal Parks

HALAL PARK DEVELOPMENT PROGRAMME

DYNAMICS DRIVING THE GLOBAL HALAL FOOD MARKET

Growth in Muslim population, primary market for halal food

Rising income and higher purchasing power

Increasing demand for safe and high quality halal food

Increasing demand for greater variety of halalproducts and services

Incidences of halal fraud which spurred demand

for genuine quality halal products

• Retail Sales of Global Halal Processed Meat

Source: Eurostat, Euromonitor, Data Monitor, Industry sources & GFRA Analysis (2008)

Industry Gap Analysis

• Retail Sales of Global Halal Processed Food

Source: Eurostat, Euromonitor, Data Monitor, Industry sources & GFRA Analysis (2008)

Industry Gap Analysis

• Retail Sales of Global Halal Processed Food by Region

Source: Eurostat, Euromonitor, Data Monitor, Industry sources & GFRA Analysis (2008)

Potential of Halal Market

12

Malaysia as Global Halal Hub

HALAL PARKS

CATEGORY

HALMAS

STATUS

CATEGORY 1

Halal Parks under Category 1 can apply for DesignatedHalal Park Status (HALMAS). Application can be madeonline. Designated Halal Parks can then offer incentives toHalal Industry Player operating in the park.

CATEGORY 2

Halal Parks under Category 2 can apply for the DesignatedHalal Park Status (HALMAS) if comply with requirementand the seven (7) basic features for designing Halal Park.These Halal Parks can then offer incentives to HalalIndustry Player operating in the park.

CATEGORY 3

Halal Parks under Category 3 need to be upgraded tocomply with the requirement for Designated Halal ParkStatus (HALMAS). (Upgrading of SME park to be collection/distribution centers with management)

CATEGORY 4

Halal Parks under Category 4 need to be upgraded tocomply with the requirement for Designated Halal ParkStatus (HALMAS) (Upgrading of Food production area /processing area to collection/distribution centres withmanagement)

CATEGORY 5

Halal Parks under Category 5 are farms producingagriculture product, which are Halal. Need to comply withGAP (Good Agriculture Practices), upgraded to becomeHalal Supply Chain. Provide traceability for Halal products.(agriculture, aquaculture, livestock and food farm)

HALAL PARK

WITH FREE TRADE

ZONE FACILILTIES

HALAL PARK

WITH INDUSTRIAL,

COMMERCIAL & TRADING ZONE

HALAL PARK

WITH PROCESSING &

MANUFACTURING

FACILITIES

HALAL FOOD

PRODUCTION AREA/

PROCESSING AREA

AGRICULTURE &

FOOD FARMS

HALAL PARK DEVELOPMENT GUIDELINES

Develop the Halal

Parks Guidelines

Categorize Halal Parks

HALAL PARK DEVELOPMENT PROGRAMME

Copyright HDC 2010

PRESENTATION BY:

DATO SERI JAMIL BIN BIDIN

6TH MALAYSIA AGRO-BIO INTERNATIONAL BUSINESS

CONFERENCE 2010

MALAYSIAN GOVERNMENT AGRO SUPPLY CHAIN

DEVELOPMENT INITIATIVES WITH REFERENCE TO

THE HALAL DEVELOPMENT PROGRAMME

HALMAS STATUS

What is HALMAS?

• HALMAS status is an accreditation given to the Halal Park Operators who have

complied with the requirements under the HDC Designated Halal Park

Development Guidelines.

• It is also a mark for world-class park status and an achievement which is in

compliant with the seven (7) criteria namely designing Halal Park to produce

Halal product that is of the highest quality, integrity and safe for consumption.

• With the HALMAS status, the Operators, Industry Players and Logistics

Operators can enjoy incentives provided by HDC in Halal Industry.

INCENTIVES FOR HALAL PARKS

Halal Park Operator

Selangor Halal Hub, Pulau Indah Central

Spectrum

PKFZ Halal Flagship Zone, Pulau Indah PKFZ

Melaka Halal Park, Sekam PKNM

Pedas Halal Park, Negri Sembilan* MIDF

Tanjung Manis Halal Hub, Sarawak TMHH

Penang International Halal Hub PIHH

Techpark@Enstek, Negri Sembilan TH NSTC

Palm Oil Industries Cluster (POIC), Sabah POIC

HALMAS STATUS

PKFZ Halal Flagship Zone

JAE Foodstuffs Sdn Bhd(Packaging beans)

Cargill (M) Sdn Bhd

Selangor Halal Hub

Oleon Sdn Bhd

(Natural Oils & Fats)

PML Dairies Sdn. Bhd

(F&N).

techpark&@enstek, Negri Sembilan

Purecircle

Sdn. Bhd(Stavia – natural

sweeter

Felda

Agriculture

Laboratory(R&D)

HALMAS dedicated area

Jee Huat Sdn. Bhd.

Penang Industrial Halal Park

Melaka Halal Park, Serkam

HPA

Industries

Sdn. Bhd.(Personal Care

Products,

Cosmetics,

Nutraceutical,

Beverages & Frozen

Food)

Kewpie

Malaysia

Sdn. Bhd.(mayonaise,

liquid eggs and

egg products)

Tg. Manis Halal Park, Sarawak

Palm Oil Industries Cluster (POIC)

Sabah Sdn. Bhd.

Pedas Halal Park, Negri Sembilan

.

.

HalalParks

No of Companie

s

Status Investment Value

ForeignWorker

Local Worker

Total

Selangor Halal Hub

11 2 (In operation)1 (Under construction)8 (Land purchase)

RM 558 .0 mil 2 80 82

PKFZ Halal Flagship Zone

3 1 (In operation)1 (Under construction)1 (Land purchase)

RM 200.0mil 7 6 13

Pedas Halal Park

3 1 (In operation)2 (Land purchase)

RM 15.5 mil 36 84 120

TanjungManis Halal Hub

12 2 (In operation)10 (Land Purchase)

RM 1.8 bil 317

20

COMPANIES OPERATING IN THE HALAL PARKS

Investment of local, MNC and international companies

.

.

HalalParks

No of Companies

Status Investment Value

ForeignWorker

Local Worker

Total

MelakaHalal Park

29 28 (In operation)1 (Under construction)

RM 100.0 mil5 200 205

Kelantan Halal Park

15 15 (In operation) RM 20 mil- 190 190

Terengganu Halal Park

8 8 (Under construction) RM 15 mil- 40 40

Techpark @ enstek*

16 3 (In operation)4 (Under construction)9 (Land purchase)

RM 1.8 bil100 666 766

Total 97 52 (In operation)15 (Under construction)30 (Land purchase)

RM 4.67 bil 153 1,283 1,436

Investment of local, MNC and international companies

COMPANIES OPERATING IN THE HALAL PARKS

LIST OF INTERNATIONAL COMPANIES

OPERATING IN THE HALAL PARKS

No Company Country Halal Park Investment

1. PML Dairies Sdn.Bhd. (F&N) MNC Selangor RM 250 mil

2. Oleon Sdn. Bhd French Selangor RM 75 mil

3. Cargill Palm Products Sdn.

Bhd.

MNC PKFZ RM 220 mil

4. Concept Amenities Australia PKFZ RM 200 mil

5. Kewpie Japan Melaka RM 30 mil

6. Purecircle Sdn. Bhd. Russia Enstek RM 150 mil

7. Coco Cola US Enstek RM 2 bil

8. Sea Party Technology Taiwan Sarawak RM 1.8 bil

9. Jetz Pharma Pakistan Enstek RM 9 mil

Halal Logistics

Halal Logistics is the process of managing the

procurement, movement, storage and handling

of materials, parts, livestock and finished /

semi-finished inventory both food and non-food

(and related information & documentation

flows) through the organization and the supply

chain in compliance with the general

principles of Shariah Law.

What is MS 2400:2010 ?

The Halalan-Toyyiba Assurance Pipeline (MS 2400: 2010)

links producers of products and/or goods with consumers.

The pipeline provide assurance that products and/or

goods delivered from one custodian to another is in

accordance with the halalan-toyyiba requirements, thus

preserving the halalan-toyyibba integrity of the products

and/or goods.

The Halalan-Toyyiba Assurance Pipeline is translated into a

set of Management System Requirement Standards which

comprise the following:

transportation of goods and/or cargo chain activities

warehousing and related activities

retailing

MS 2400 – Halalan Toyyiba Assurance Pipeline

MS 2400-1:2020

Halalan-Toyyiba

Assurance Pipeline-

Part 1:

Management System

Requirements for

Transportation of

Goods and/or Cargo

Chain Services

MS 2400-2:2020

Halalan-Toyyiba

Assurance Pipeline-

Part 2:

Management System

Requirements for

Warehousing and

Related Services

MS 2400-3:2020

Halalan-Toyyiba

Assurance Pipeline-

Part 3:

Management System

Requirements for

Retailing

Halal Logistic Provider

31North Port Kontena Nasional

Halal Logistic Provider

32

Centuty Logistic Sdn. Bhd.

Penang Port

Beauty & Personal Care Products

33

Halal Ingredients

34

Halal Herbal Products

35

Halal Cosmetics

36

Halal Food & Beverages

37

Halal Food & Beverages

38

39

Halal Food & Beverages

Halal Industry Development Corporation (HDC)5.02, Level 5,KPMG Tower, First Avenue, Persiaran Bandar Utama,47800 Petaling Jaya, Selangor Darul Ehsan,Malaysia.

Tel : +603 - 7965 5555Fax : +603 - 7965 5500

Hotline : 1800 - 880 - 555 (within Malaysia)+603 7965 5400 (outside Malaysia)

www.hdcglobal.com

THANK YOU