@Halal April 2019 | Page 5

05 april-may. 2019 | @Halal A piece of the halal pie Malaysia targets to secure a portion of the US$300 million (RM1.2 billion) halal market during the 2020 Tokyo Olympics, especially in the food and beverage (F&B) sector. Entrepreneur Development Minister Datuk Seri Mohd Redzuan Md Yusof said Japanese companies have expressed deep interest in Malaysia’s F&B, as well as health and beauty sectors. “The Japanese have open their doors to the halal market compared to 10 years ago, and if Malaysia’s small medium enterprises (SMEs) do not take this chance, it is a huge miss,” he said after the launching ceremony of the Malaysia Halal Expo 2019 (MHE2019). In 2017, Malaysia’s halal export to Japan was worth RM2.8 billion and it is expected to steadily increase to RM3.1 billion in 2018, RM3.4 billion in 2019 and RM3.7 billion in 2020. Local going global Mohd Redzuan said that more than 10 SMEs from the 320 exhibitors have exported to Japan and the rest is ready to do so. Malaysia-Indonesia halal agreement delayed 2017 RM2.8b 2020 RM3.7b “We hope that at this expo, we could exceed the RM50 million sales target we set for the business matching sessions,” he said. As at today, RM40.8 million sales have been generated from 32 business matching sessions, comprising 27 SMEs. Among Japanese companies that took part in the business matching sessions were Take One Co. Ltd that operates FamilyMart, Ohga Pharmacy, Hayabusa International and Yatsumoto Tsusho Co. Ltd. As for Malaysia, five anchor companies that joined the sessions were Lulu Group Retails Sdn Bhd, Ramly Halal Mart Sdn Bhd, Aeon Big (M) Sdn Bhd, Nestle Malaysia Bhd and Tesco Stores (Malaysia) Sdn Bhd. Meanwhile, Japanese Ambassador to Malaysia Dr Makio Miyagawa said Japan’s tourism has grown tremendously over the years due to rising demand for halal products. “About 50 years ago, the basic principal of our negotiation was not to import foreign agriculture products. But now, we want assis- tance from Malaysia as Malaysia is known for its halal sector,” he said. export to Japan 2019 RM3.4b 2018 RM3.1b In 2017, Malaysia’s halal export to Japan was worth RM2.8b and it is expected to steadily increase to RM3.1b in 2018 RM3.4b in 2019 RM3.7b in 2020. Forward in Malaysia’s halal market The Halal Industry Development Corporation Sdn Bhd (HDC), an agency under the Malaysian Ministry of Economic Affairs, expects Malaysia’s halal exports to increase by between four per cent and five per cent this year from the RM43 billion recorded in 2017. HDC Industry Development vice president, Hanisofian Alias said the projection was based on the global Muslim population growth, the on-going efforts by the local small and medium enterprises (SMEs) to produce more halal products and services, as well as collaborations with other ministries and foreign counterparts. “We are also optimistic that the national target of RM50 billion halal export by 2020 can be achieved despite global economic uncertainties, including the ringgit’s volatility and the United States-China trade tensions among others. “For example, there is ample room in Indonesia’s halal market, as Malaysia’s exports to the country only accounts for less than one per cent of its halal imports,” he told reporters after the ‘Navigate Your Business Towards Success Into Indonesia’s Halal Market’ seminar.. billion mark by the end of 2020,” he said. “Many non-Muslim countries have rec- ognised the untapped potential in the halal market and are now racing to gain a footing, presenting a major business and export opportunity for us as Malaysia has always held the benchmark in halal production and certification. Hanisofian, had earlier alongside halal advisory ARK Advantage (ARK), announced its collaboration with Denmark-based coop- erative ARLA Foods amba (Arla) towards the globalisation of HalalMalaysia. For the preliminary stage of the collabora- tion, HDC will provide subject matter expert advisory services and offer halal training and consultancy services as required by Arla and ARK. “This is a long-term collaboration between the three of us, in terms of knowledge sharing and marketing of products,” said Hanisofian. “HDC comes into play in helping Arla navigate policy changes in Malaysia as well as Southeast Asia. This is important as for Malaysia alone, Arla has already exported over RM30 million worth of products in 2017.” Arla head of global halal supply chain Mahdi Salhab said that for the time being, the firm would not be monetarily investing into the country but that might change given time. “We do expect that the size of our export into the country will increase over time, on the back of this collaboration but it is too soon to tell by how much,” he said. Arla’s Mandatory Halal Assurance System is designed in compliance with JAKIM’s Halal Assurance Management System, Department of Standards Malaysia MS Halal 1500:2009. Arla Foods is an international dairy com- pany owned by 11,200 farmers from Denmark, Sweden, the United Kingdom, Germany, Belgium. The global halal market is currently esti- mated at US$2.3 trillion covering both food and non-food sectors. The agreement to be signed between the Department of Islamic Development Malaysia (JAKIM) and its Indonesian counterpart has been delayed, a Malaysian official told Salaam Gateway. JAKIM now expects to sign a memorandum of understanding with Indonesia's religious affairs ministry’s Halal Products Assurance Agency (BPJPH) in October. State news agency Bernama reported on Jan 26 the agreement was to be signed in April. Confirming the six-month delay, Naim Abdul Aziz, senior assistant director of the Malaysia Halal Council told Salaam Gateway, “We are waiting for the Indonesian party to fully execute their implementation. That’s a solid reason for the delay.” Jakim gives halal certificates to 7,204 companies The Malaysian Islamic Development Department (Jakim) has handed out halal certificates to 7,204 companies as of January this year. Minister in the Prime Minister’s Department, Datuk Seri Dr Mujahid Yusof Rawa said the department had also opened international certification opportunities for contract manufacturing and overseas factories to obtain Malaysia’s halal certification. Jakim according to him, had recognised 75 Foreign halal certification bodies and halal authorities from 43 countries. “Halal industry has gained interest throughout the world, not only Muslim countries but also but also other countries with Muslim populations. Consumers are interested in halal products because it certified that the preparation of the food is safe and hygienic for consumption,” he told reporters during the pre-launch event of Global Halal Summit (GHas) 2019 themed ‘Halal Connecting the World here on Monday night. Mujahid said GHas which was previously known as World Halal Week, will start from April 1 until 6 at the Grand Hyatt Hotel, Kuala Lumpur and Malaysia International Trade and Exhibition Centre ( MITEC). Malaysia still world’s leading Islamic economy Malaysia’s Islamic finance industry needs to move on to better deal with the social responsibility of creating wealth, Zahid Aziz, president of Muamalah Financial Consulting in Kuala Lumpur, told Salaam Gateway. “As creators of over 90 percent of the nation's money, banks--both Islamic and conventional – have an effect on inflation and purchasing power, and are direct contributors to the widening gap between the rich and poor,” said Aziz. Muamalah was Malaysia’s first company to be licensed by the Securities Commission as Shariah adviser for the Islamic Capital Market in 2000. “[Banks'] fixation with debt financing makes them direct contributors to graduate and youth unemployment, and deny funds to small- and medium-sized enterprises (SMEs) which generally deliver 80 percent of a nation's employment,” he added. Hanisofian during a press conference for World Halal Conference 2019 ‘Jakim's halal recognition will boost bilateral ties’ Recognition of Ukraine halal certificates by the Department of Islamic Development Malaysia (JAKIM) will boost the growth of existing bilateral trade between Ukraine and Malaysia, says Ukraine Ambassador to Malaysia, Olexander Nechytaylo. Commenting on the appointment of Kyiv- based LLC Certification Center ‘Halal’ as the Foreign Halal Certification Bodies (FHCB), granted by JAKIM in his Facebook post today, he said this new development also indirectly, gave ‘good news’ for Ukrainian exporters.