Halal creates an opening for Thai firms in Malaysia

KUALA LUMPUR : Thai food makers are being urged to enter the Malaysian market to capitalise on the neighbouring country's vision of becoming a global hub for halal food.

Petch Chinabutr, director of Thailand's National Food Institute (NFI), said that despite a population of just 30 million, Malaysia has a high per-capita income compared with other countries in the 10-member Asean group, ranking only behind Singapore and Brunei.

"Furthermore, the Malaysian government has a policy to turn the country into a global hub of halal products, and the country also has established free-trade deals with many partners, especially in the European Union, so this is a good opportunity for Thai businesses to penetrate this market," he said.

His comments were made on the sidelines of the 10th Malaysia International Halal Showcase. The NFI brought 10 Thai companies to showcase their halal-certified products at the event.

Ugrid Chitcharoentham, assistant export manager of General Candy Co, the maker of Heartbeat candy, said most of General's confectionery, fruit snacks and jelly are certified halal, with two more items on the way.

General exports 70% of what it makes, half of which goes to South Africa, Dubai, Qatar, Yemen, Kuwait and Jordan. The company has begun shipping to Malaysia as well.

General makes some products especially for the Middle East markets, as some countries in the region have laws banning the use of food colouring.

Alak Pramernchamaen, director of Siamsurplus Co, has expressed interest in exporting her crispy fried salmon products to Malaysia since last year.

Under the brand SeaRun, the product is sold in 700 7-Eleven stores in the southern region of Thailand. Still, 70% of production goes to mom-and-pop stores and street vendors.

This year, the company expects to produce 200,000 packets a month, up from 100,000 a month last year, 50,000 in 2011 and 20,000 the year before.

Sarif Lohhama, manager of Budu Yiseng (Saiburi Pattani) Ltd, sends most of his instant khao yam sets to Malaysia.

Called nasi kerabu in Malaysia, khao yam consists of rice, budu fish sauce and vegetables.

The company, which has made and exported food for five years, ships 20% of its production to Malaysia, Egypt and Saudi Arabia. Revenue per year is 45 million baht, with 14 million baht in profit.

Last year, Malaysia was Thailand's sixth-biggest export destination and eighth-biggest import source. Exports to Malaysia totalled 33.7 billion baht, with imports reaching 14 billion baht.

(Bangkok Post Business / 15 April 2013)

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Top 10 Halal Friendly Holiday Destinations for 2013

Halal Tourism has finally come of age. The tourism industry has finally woken up to  the potential that halal tourism industry holds, with 1.6 billion Muslims under it. The word halal refers to ‘Islamically permissible’. Halal tourism involves, serving  halal food, having separate swimming pools, spa and leisure activities for men and women, cafés, lounges and restaurants that serve non-alcoholic drinks etc. Some of them even have private beaches exclusively for women, and mixed beaches for families where women can wear the Islamic swimming dress code and hang out with their families. Countries that promote halal vacations,  makes the holiday experience for a Sharia abiding Muslim, a pleasant  and memorable one.

The management consultancy firm AT Kearney estimate that the global halal market to be around US $2 trillion, underpinned by one of the fastest growing religions in the world.

In a study by the Singapore based research company Dinar Standard, the Muslim tourists globally represent a major niche market worth $126.1 billion in 2011 growing at a higher 4.8% through 2020, compared to global average of 3.8%.

The Muslim tourism market (US $126.1 billion) is 12.3% of the total global outbound tourism market in 2011, estimated at US $1,034 billion by the U.N. World Trade Organization (UNWTO). The Middle East and North Africa markets represents 60% of total global Muslim tourist outbound expenditure in 2011, with Saudi Arabia topping the list, followed by Iran, UAE, Indonesia and Kuwait.

Singapore based Crescentrating Pte Ltd., a company focused on the development of the halal friendly travel market segment worldwide, has come out with its ranking of the Top Halal Friendly Holiday Destinations for 2013.

Some of the ranking criteria for being the top halal friendly destinations for 2013 were, the level of halal food availability, halal certified restaurants, prayer facilities, halal friendly accommodation, family recreation and entertainment centers, etc, at the main tourist spots of the destination.

MALAYSIA: 

Malaysia with its vibrant, bustling, multicultural/multiethnic population, its diverse culture, tradition of impeccable hospitality  and fusion of gastronomic creations, has made Malaysia a traveller’s delight. The lush green tropical landscape and stunning island resorts have made Malaysia one of the top rated destinations for holidays. It has also been rated as the No.1 on halal friendly destinations  in the world among 10 member states of Organization for Islamic Co-operation (OIC) for 2013. Because of its easy access to halal food and prayer facility no matter where they are, be it a shopping mall or an airport, has  made Malaysia the No.1 choice with an aggregate of 8.3 /10 points.

EGYPT: 

The rise of Islamists in Egypt had sceptics consider if the Tourism industry would be hit in Egypt. But halal friendly tourism has paved its way into Egypt. A survey conducted by Ogilvy Noor, an international Islamic branding company, found that the halal market was worth $2.1 trillion last year, with halal tourism worth $100 billion. Egypt expects its halal tourists turning to family oriented activities, halal food, dry hotels, separate female recreational facilities and hotel rooms with prayer directions. During the month of Ramadan, muslim travellers may ask for special facilities during Suhoor. Egypt is considered one of the top destinations for halal tourism.

UAE: 

Keeping in mind the sensitivities of muslim tourists, several hotel groups in UAE, have announced the development of hotel chains complying with Islamic law. The Almulla Hospitality has announced its plans to open 150 Halal Hotels by 2015, not only in the Middle East but also in Europe and North America. The Jawhara Chain has sets it target on 25% Sharia compliant hotels in Dubai in the near future. With UAE becoming the Middle East’s most preferred tourist destination, halal tourism, will only add to the appeal.

TURKEY: 

Turkey, a nation that’s a beautiful blend of the East and the West. Situated strategically between the Europe and Asia,Turkey has considerable influence in the region. Though an Islamic country, liberalism is mostly in practice. A country that was the melting pot of civilization, has a lot to offer to the Tourist in terms of Historical and Archaeological. With many open air historical sites, and sea side resorts, Turkey is ranked as the 6th most favoured tourist destination in the World. It ranks 4th in the recent Top 10 Halal Destinations in the world, due to availability of halal food and other facilities favourable to the Muslim traveller.

SAUDI ARABIA: 

Saudi Arabia’s tourism industry is estimated to be worth around 14.88 billion in 2012. Saudi Arabia is expected to welcome 15.8 million tourists by 2014, out of which business tourists and the hajj tourists will account for most of the tourism share, Saudi Arabia is still considered too conservative for western tourists. With  the growing number of muslim tourists favouring halal tourist destinations, and with  Saudi Arabia’s strict Islamic code of conduct and practices, the country is Top 5 on the preferred list.

INDONESIA: 

Indonesia is the largest archipelago in the world. It has 17,504 tropical islands with mesmerising white sandy beaches and crystal clear waters. Because of its location, geology and diverse landscape, the country boasts of fertile rice fields to  rain forests and snow capped peaks. It is this diverse landscape, along with historical & cultural diversity that makes Indonesia a favoured destination fort tourists. From Jakarta, Bali to Sumatra and Java, Indonesia truly is a nature lover’s  paradise. Being an Islamic nation, all cultural and food practices are centered around Islamic tradition. Indonesia ranks 6th on the Most Halal Friendly Holiday Destinations.

MOROCCO:

Morocco’s varied geography sets it apart from the rest of the African nations. Situated in the extreme north western tip of Africa, it’s amazing beaches, lush highlands, snow capped mountains, the expansive Sahara in a distance and haunting aura of the old cities, will capture a Traveller’s mind than any other. It’s a country “that travels within you“. What is striking about Moroccans is their tradition of hospitality, and their openness and willingness to share their culture. No matter where you are , in the mesmerising streets of Marrakesh, or the beautiful lanes of Casablanca, there are story tellers everywhere, willing to share the exoticism and mysticism that has long bound Morocco to the world. Along with a surge in Morocco’s tourism industry, Morocco’s predominantly Islamic culture and tradition makes it one of the most preferred among halal tourists as well.

JORDAN: 

Jordan, the land of mesmerizing beauty and diversity. The imposing Petra never leaves one mind, when one’s thoughts travel to this mystical land. From the amazing sand castles to the haunting Wadi Rum, Jordan is truly a land of superlatives. The Red Sea and the Dead Sea enthralls every visitor who longs to bathe in them and indulge in the myriad spa facilities that the resorts provide . The Dead Sea coastline with its  beautiful natural and spiritual  aura, attracts tourists from far and wide. Its  soothing,  high salt content and buoyancy makes it very easy to float for a swimmer. Jordan’s rich and varied history and remnants of ancient civilization has made it one of the most favoured destinations worldwide. No wonder then that it is placed No. 8 on Halal Holiday Destination.

BRUNEI: 

The Sultanate of Brunei is a very small but extremely wealthy nation thanks to its oil and gas reserves. A large part of the country is covered with lush rain forests. With both natural and cultural heritage to boast of, Brunei offers the best of luxury and relaxation. With its modern lifestyle and facilities, it is able to offer  natural and material world to the weary traveller. Brunei is an Islamic country. Sale of Alcohol is banned and selling meat that is not halal is also banned. No wonder then that Brunei too has made it to the top 10 halal friendly holiday destinations.

QATAR:

Qatar is one of the fastest growing economies in the world, thanks to large natural gas reserves & petroleum. In recent years it also has taken the center stage for tourism. It is a much preferred luxury travel destination, with many top brand hotels vying for space. Qatar Race & Equestrian Club attracts visitors from far and wide to watch races and show jumps. Being an Islamic country, Qatar has ,this year been rated No.10 on the halal holiday destination for 2013.

(Arabian Gazette / 25 Jan 2013)

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Malaysia: 50 halal firms to benefit from project

SUBANG JAYA: Fifty companies from the halal industry are expected to benefit from a special pilot project spearheaded by the Department of Standards Malaysia to help them understand and better implement halal requirements.

Helping local players to be self-sufficient, Standards Malaysia has initiated a series of activities for businesses to ride on the waves of the expanding halal industry, said its director general Fadilah Baharin at the preview of Malaysia's first in-depth research report on the halal industry.

According to her, the halal industry grew 75% between 2010 and 2011 and expected it to grow further.

Globally, the halal market is estimated to be RM6.3 trillion annually while in the first half of 2012, RM16bil worth of halal products and services were exported from the country.

“Malaysian businesses can tap on the extensive opportunities in the industry to increase the amount of exports,” she said.

Through workshops and an in-depth research, which involved 650 consumers and 350 industry players, industry players are expected to benefit from the insights provided, she added.

Findings of the research will be published in the Malaysia Halal Industry Market Report 2012.

One of the key insights of the research indicated that the interpretation of halal' was currently limited to pork and alcohol-free processes.

However, there was a lack of understanding on Halalan Toyyiban', which sets criteria on safety, hygiene and cleanliness, she said.

(The Star Online / 08 Jan 2013)

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Malaysia: Government urged to look at halal economy from business perspective

There is a need for the government and the private sector to look at the halal economy from a business perspective instead of a purely religious one, to fully capitalise on the opportunities so that Malaysia is not left behind in meeting the burgeoning global demand for halal products.

“When you talk about the halal economy, you should segregate the religious and business part of it. All this while, there has been a lot of focus on the religious side. What about the business side of it?

“If we don’t have capable players and good products, it still doesn’t bring anything to the country,” said Halal Industry Development Corp (HDC) chief executive officer (CEO) Datuk Seri Jamil Bidin.

He was speaking at The Malaysian Reserve (TMR) roundtable discussion on the halal economy last month, attended by industry players. The roundtable discussion was hosted by HDC and moderated by TMR chief operating officer/ group editor Abdul Halim Wahab.

Participating in the roundtable discussions were Islamic Development Bank (IDB) regional officer-in-charge of Malaysia Kunrat Wirasubrata, AYS Sdn Bhd CEO Liaw Ren Jian, Kontena Nasional Bhd CEO Hood Osman, Nestlé (M) Bhd executive director of human resource and group corporate affairs Zainun Nur Abdul Rauf and Nestlé Malaysia chairman of halal committee, regulatory and scientific affairs Othman Md Yusoff Jamil pointed out that there is an urgent need for the opportunities to be fully capitalised on by local players as “halal means business”.

“That is why many non-Muslim countries are jumping into this industry now. China is coming in big, Thailand is there, so are South Korea and Japan because they too see that halal is business.

“The demand at the moment is so huge but the supply is not there, so they are filling that gap. As a country, we should not miss this because even though we are the first mover, the industry is moving so fast that they might catch up and we will be left behind,” he said.

The following are excerpts of the roundtable discussion:

TMR: To put it in perspective, the halal economy in Malaysia and throughout the world was once disorganised. But today it has turned into a serious economic sector creating a new wave of economic opportunities and investments. In fact, it’s been referred to as the “3rd billion economy” after China and India.

The global halal food market was valued at more than US$600 billion (RM1.87 trillion) last year and it is estimated to grow by 15% to 20% this year. The key drivers are the increase in the global Muslim population, the economic development of Muslim countries and more demand from new markets in Europe, China and India. What are the challenges and prospects for the halal economy going forward?

Jamil: Firstly, calling it the halal economy is the right term as industry is not the appropriate word. Halal is not a single industry. Halal economy is more appropriate because if you look the halal concept itself, it is very diverse.

It covers food, non-food, services and almost everything in our life. So the halal economy is a lot bigger than just the food industry, even though a lot of focus has been put on the food industry in the past.

The biggest problem in the past has been that awareness of halal itself was very low even among the Muslim countries. What more among the non-Muslim countries. Even in Malaysia, the understanding of halal is not at a comfortable level. But when we start talking about the halal economy, people will begin to understand that there is a lot more to halal. For the non-Muslims, the concept of toyiban has not been well explained or even spoken about. That is the reason why in certain countries, halal is associated with religious products and exclusively for Muslims, which is not correct at all. We want to re-brand halal as inclusive and not exclusive.

Secondly, I think the issue of certification has been talked about for many years. While all this argument about certification is happening, business is still going on. We find that many consumers around the world are not concerned whether the logo comes from Malaysia, Thailand, Indonesia or Singapore or from which ever country. TMR: I suppose having one halal standard is still work in progress.

Jamil: Yes it is still work in progress, but I think the bigger issue is about halal food insecurity. While we are debating on this at the Organisation of Islamic Cooperation level, the agenda about halal food insecurity was never discussed.

There are 1.8 billion Muslims around the world. By the year 2013, the Muslim population is going to be 37% of the global population. If you look at the halal supply side now, it’s very small even though Malaysia was the biggest exporter last year. There is big opportunity here and industry players need to come in and step up supply.

TMR: Given this perspective, what is Nestlé’s point of view on the challenges and prospects as a global food manufacturer?

Zainun: As a food producer, Nestlé also faces challenges in terms of food insecurity. For instance, if you want to expand your product range, we have to make sure that the raw materials used in our production are halal. But to get the supply of these materials is always an issue for us which in turn makes it difficult for us to expand as there is no other supplier. That is always an issue. More importantly, if our suppliers are hit by a crisis, we are stranded. It is important to have awareness on the importance of the halal label. Of course, the certification is important to ensure we have continuous supply of raw materials.

Othman: The supply of halal products has not met demand. Even for Nestlé, which is the biggest halal food producer, our total halal food production is just 1% of global demand. So just imagine there is a lot of potential in certified halal products. But there are also halal products which are not certified.

We (Nestlé) have taken this initiative to pave the way because we have said that if we want to do it right we need to do it systematically. When I joined the company in 1988, we already had the halal committee up and running. So with that we started building the knowledge.

The most common challenge the industry faces today is in the supply of ingredients etc. We would definitely want our source to be from here or somewhere nearby. When you speak about ingredients, apart from halal, the ingredients must meet the specifications. There is a technological aspect to it, that is whether an ingredient can be made as part of industry requirements in terms of the specifications, microbiological counts and particle size. We need to ensure that the standard is met and supply can be sustained.

A key area that we should look into is to grow in terms of halal ingredients suppliers. As a halal hub, I foresee that one day we won’t need to go out and promote logos as the value will come from the products that we produce, not in the certification.

TMR: What are the challenges from the perspective of Kontena Nasional as a logistics player?

Hood: Based on what we’ve gone through so far, we started talking to HDC in 2009 with regard to a positive collaborative engagement to identify possibilities to create another revenue stream which is to offer halal logistics services.

From then on, we’ve made strides with regard to the preparation of the infrastructure which I think is very important. As a trade facilitator, which is what a logistics service provider is, providing the infrastructure, the know-how, personnel and appreciation of halal logistics services is crucial.

The challenges we face are more on the appreciation, understanding and acknowledgement of halal, be it certified or non- certified. Non-certified is a bit more difficult because people will start questioning how the halal process is being done. Certification makes it easier for us to start.

But it doesn’t stop there, especially in our role as a PNB (Permodalan Nasional Bhd) company to spur small and medium industries (SMEs). As you know in order for Malaysia to become a halal hub SMEs must come into play with regard to right-sizing the economy. If you look at it, Indonesia is one of the good examples, where SMEs are coming up like mushrooms. There is a demand for local produce, because with 240 million people, there is that kind of consumption.

But Malaysia is heading towards a much more strategic dimension with regard to technicality, technology and a systematic approach.

TMR: While halal logistics is another revenue stream for the company, is investing in it an issue?

Hood: Initially, yes. It is in fact because you have a three-phase investment, from my perspective. If you look at Kontena Nasional, we already have warehouses in Penang, Central, Kuantan and Johor, so transforming that as part and parcel of a halal ecosystem was easy. But for somebody to start fresh, if he was to propose a full halal supply chain, then the warehouse investment must come in.

When we take a look at our fleet, when transporting perishable goods, cross-contamination becomes an issue, so you need to put aside a few containers just for halal foods. If you go one step beyond that, you look at refrigerated containers. They also cannot be contaminated with other goods, as although Kontena Nasional does not carry any non-halal items, the audit is quite strict.

TMR: Market access and branding are important in any business. So is funding, which is where IDB comes in. How do you see this market progressing and what role can the bank play in terms of funding the halal economy?

Kunrat: One of the things that we have been working on is to try to connect interested investors from all countries, so this is one way of increasing investments. We have to consider that ‘halal’ per se comes from a religious concept.

Although you would like people to grasp the concept of halal, it is still identified as an Islamic concept, like kosher products are identified with the Jews.

My view is investment in halal should not be expensive. If you are looking for 100% purity, it is very difficult, as even during the Prophet’s time some contamination was permitted. The search for 100% purity may lead to excessiveness.

We are currently talking to a Malaysian financial institution to provide a line of financing. This is one of the proactive stances that we are taking. We have established a small team in Kuala Lumpur and Jeddah to discuss whether we will focus on the business side.

TMR: Perhaps, Mr Liaw can add his perspective as an SME player. As far as funding for halal is concerned, how easily available is

it?

Liaw: You can look at me as a 2-in-1, a multinational company (MNC) mindset wrapped around an SME. This is due to my 14 years’ experience in the corporate side in the manufacturing and marketing of halal personal care products in Malaysia, but today, I run my own halal business. Secondly, you can look at me from the non-Muslim perspective.

Number one, it is a high cost business, full stop. When it comes to the SME, the challenge is even greater. From an MNC perspective, sourcing and buying is not an issue because they can afford it, but when it comes to SMEs, every dollar comes from the owner. To add to that, sourcing is always a challenge because we do not have the leeway to buy from a cheaper option as the cheaper option normally does not come with a halal certification.

The other bigger problem for us is the logistics. For Sabah, Sarawak and Brunei, the cost is high to ship our frozen ready-made meals there. Why? As an example, our logistics provider initially thought that they could have economies of scale. If they were already in the frozen food business, they thought they could put our products in and maximise the container load factor. Unfortunately, I told them, I needed exclusivity for my container because we have to make sure that the total supply chain is halal-certified, so that adds up cost. Being in the business of frozen products, cost is even higher. It is the high cost that affects us when we ship our products.

I met Datuk Seri (Jamil) last year and asked him “what do you think about a non-Muslim in the halal business? Are we just trying to get money from the Muslims?” I liked the way he answered. He said it is about the consumer market, supplying what the Muslim market wants, and just because the player is not a Muslim doesn’t mean he cannot enter the market.

But, we need to adhere to the set of rules and that’s how I learnt about the halalan toyyiban concept, which is a very good idea. If we can share this concept, it will benefit the non- Muslims as well because it is about wholesomeness. We want our food to be produced in a clean, safe, and hygienic environment, this is a universal value.

With regard to funding in Malaysia, the banks don’t really see whether it is a halal business. They see your business performance. For SMEs, there is difficulty in convincing them. If we say, we are a halal company, it doesn’t add any value, sorry to say that. This is something perhaps the agency can look into.

What the panelists say… 

On the supply chain 

Jamil: If you look at industry players like Nestlé, they still have problems when it comes to the whole value chain. They are the biggest food producer but they are finding difficulties in getting the raw material supply. So this is where most of the industry players must look at the whole value in the value chain. Instead of being crowded in the end part of the value chain, why can’t I be in the ingredient part of the chain? Logistics? Or the softer part, marketing? I can be a good trading company. If you look at the whole value chain, there are a lot of components, even banking. Once people become more aware about the need for Islamic banking in the halal economy, then there will be demand. In Malaysia we still have that problem, the awareness about being in the various parts of the value chain.

Zainun: In the last few years, Nestlé has actually been working with the SMEs in terms of passing the knowledge on how to produce

not just halal but a sustainable supply of raw materials. For example, we were looking for a raw material that we have been

importing over the last few years. We tried to get a local supplier but it turned out there is nobody that could actually supply

us with the materials that we wanted. There is a ready market but there is no one to supply to us. So there is always an

imbalance in terms of the product that we want and the supplier of the raw material.

On certification and cost… 

Hood: There could be a day, maybe 30 years down the road that we don’t need halal certification anymore because everybody acknowledges, admires and respects that this is halal and this is not. But right now because it is during this migration, there is a need for you to draw the line. But once you have drawn the line, you need to understand that it goes back to practical business utilisation. Halal is not halal just because it is for Muslims. Halal is because the food is safe, secure and hygienic. So basically when we promote that, it goes beyond the 1.8 billion people we are trying to market to. So the economic scale automatically comes in and the cost will come down.

(The Malaysian Reserve / 05 Sept 2012)

https://islamic-finance-malaysia.blogspot.com/2012/09/malaysia-government-urged-to-look-at.html

Malaysia’s halal logistics sector on the uptrend

KUCHING: Malaysia is expected to see its US$1.9 billion (RM6.05 billion) halal logistics sector to grow in tandem with the halal food industry.

The industry was pegged to be a lucrative business thanks to the huge number of Muslims in the world which currently stands at 1.79 billion, said Inside In­vestors country publisher Cory D’Abreo.

“In Malaysia there are approxi­mately 17.5 million Muslims, accounting for 60.4 per cent of the total population,” he stated in his report.

Thus, D’Abreo said the increase of halal food exports could fur­ther boost the logistics growth in Malaysia as there would be a need for freight-forwarding and transportation services.

D’Abreo further pointed out that it required highly sophisticated and strictly controlled logistics operations to prevent the cross-contamination of products dur­ing storage and distributions.

“Dedicated logistics infrastruc­tures and manageable halal logistics operations are crucial for any logistics service provid­ers keen to venture into the halal industry,” he added.

Logistics service providers need to equip themselves with the ability to fulfil the halal require­ments, besides maintaining the high efficiency and effectiveness of their operations to reduce the logistics costs for clients.

Going forward, Malaysia has the potential to become a global halal hub, supported by the MS2400 Halalan-Toyyiban standards that ensured all halal practices were incorporated across difference logistics functions.

Additionally, Frost & Sullivan estimated that halal logistics was worth about US$1.9 billion in the Ma­laysian halal food industry.

“There are a lot of opportunities for local logistics service pro­viders in Malaysia considering the potential of the global halal food market, valued at about US$1.2 trillion in 2010,” added D’Abreo.

“Given Malaysia’s strong halal brand recognition and halal lo­gistics standards, local logistics service providers should tap into the growth opportunities in the halal sector,” he added.

On top of that, Malaysia could also potentially become the regional halal hub in Asia con­sidering that Asian countries contribute about 64 per cent of the global halal food expenditures, valued at about US$770 billion.

Malaysia’s halal food industry alone was valued at about US$15.7 billion in 2010. It exported a total of RM3.94 billion worth of halal-processed food in 2008 to the Or­ganisation of Islamic Conference (OIC) countries.

“International Investor together with our knowledge partner, frost & Sullivan believes that local logistics service providers should create awareness with current manufacturers and re­tailers to use halal compliant lo­gistics services to penetrate into the majority Muslim community in Malaysia,” D’Abreo said.

“On the other hand, Malay­sian logistics service providers should also focus on developing and expanding the range of serv­ices offered to compete with the international logistics provid­ers,” he added.

He further suggested that Malay­sian logistics providers should put more focus on logistics tech­nologies that could increase their competitiveness advantages.

“The logistics industry is also expected to consolidate due to the fragmented nature of the sector. Major logistics service provid­ers are likely to increase their market share by mergers 

and acquisitions,” he concluded.

(Borneo Post Online / 15 July 2012) 

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Consultant-Speaker-Motivator: www.ahmad-sanusi-husain.com
  Islamic Investment Malaysia: www.islamic-invest-malaysia.com

Malaysia: Labuan on track to emerge as halal distribution hub

LABUAN: Labuan’s halal distribution hub will begin operations early next year and be on par with other halal centres in the Asian region.

Construction of phase one of the Kiamsam-based RM86 million project began in March 2009 and was nearing completion while the second phase would be implemented in stages and have numerous economic spin-offs especially to the small-and-medium entrepreneurs.

The hub, a collaborative initiative by Labuan Corporation, Marditech Corporation Sdn Bhd and the Ministry of Federal Territories and Urban Wellbeing, is managed by Labuan Halal Distribution Hub.

Once fully operational, the Labuan Halal Distribution Hub will be the centre of distribution for Malaysian halal products both for the domestic and international market. Labuan Corporation public relations officer Jah Murniwaty Markum told Bernama a comprehensive strategic plan has been put in place to ensure the hub was not left behind and would remain competitive.

The hub, sprawled over 40 hectares and mainly focused on the marine-based products, will house a warehouse complex, dry warehouse, cold room facilities and have in place a traceability system.

Jah Murniwaty said the global halal industry was worth RM300 billion and Malaysia assumed a significant role after having exported some RM35 billion worth of halal products last year.

“Our main exports markets for halal products are China, United States,  Singapore, Netherlands and Japan, and Middle-East countries.

“With the right strategy and marketing promotion, we are confident the Labuan halal distribution hub would compete on an equal platform and leaf-frog the role of local SMEs into the limelight.

The halal hub would assume an important role in determining that the quality of products adhere to high stringent standards to elevate Labuan to the global stage.

(Berneo Post Online / 23 July 2012)

LABUAN: Labuan’s halal distribution hub will begin operations early next year and be on par with other halal centres in the Asian region.

Construction of phase one of the Kiamsam-based RM86 million project began in March 2009 and was nearing completion while the second phase would be implemented in stages and have numerous economic spin-offs especially to the small-and-medium entrepreneurs.

The hub, a collaborative initiative by Labuan Corporation, Marditech Corporation Sdn Bhd and the Ministry of Federal Territories and Urban Wellbeing, is managed by Labuan Halal Distribution Hub.

Once fully operational, the Labuan Halal Distribution Hub will be the centre of distribution for Malaysian halal products both for the domestic and international market. Labuan Corporation public relations officer Jah Murniwaty Markum told Bernama a comprehensive strategic plan has been put in place to ensure the hub was not left behind and would remain competitive.

The hub, sprawled over 40 hectares and mainly focused on the marine-based products, will house a warehouse complex, dry warehouse, cold room facilities and have in place a traceability system.

Jah Murniwaty said the global halal industry was worth RM300 billion and Malaysia assumed a significant role after having exported some RM35 billion worth of halal products last year.

“Our main exports markets for halal products are China, United States,  Singapore, Netherlands and Japan, and Middle-East countries.

“With the right strategy and marketing promotion, we are confident the Labuan halal distribution hub would compete on an equal platform and leaf-frog the role of local SMEs into the limelight.

The halal hub would assume an important role in determining that the quality of products adhere to high stringent standards to elevate Labuan to the global stage.

(Berneo Post Online / 23 July 2012)

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Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
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Islamic Investment Malaysia: www.islamic-invest-malaysia.com