MALAYSIA has all the right elements to make herself a lucrative and competitive player in the Halal industry, and to be easily ranked among the top ten in the world. Here’s why.

It’s a position vied by many nations, Islamic and non-Islamic countries- to be the number one player of the world’s Halal industries. Malaysia is not leading the pack yet, but she can and she is in advantageous position to make a strong move.

One, she has been recognised as a truly Islamic country. Two, she has the raw materials and supporting infrastructure as well as the processing technology to produce and market the Halal products. Three, Malaysia’s Halal certification issued by Islamic Development Department of Malaysia (JAKIM) is recognised worldwide due to its stringent criteria employed, and is much sought after by other countries. Last but not least, there is strong Government support to develop and establish Malaysia as the global Halal hub. With all these fantastic features, incorporating Halal hubs throughout the country is not a question of doubt for Malaysia. Some my say it’s timely but many who are of authority say it should have been done earlier.

The Government has positioned itself as the planners and facilitators to make Malaysia the International Halal Food Centre as identified in the Second Industrial Master Plan 1996 to 2005 and the Third National Agricultural Policy 1998 to 2010.malaysia also has what it takes to be a centre for marketing, certification and reference. As an International Halal Food Hub, its functions would be a one-stop centre for marketing and a platform of other activities related to Halal food. These activities encompass legislation, inspection and certification, enforcement, research and development, testing, analysis and laboratory facilities and consumerism.

What Malaysia needs to do now is to move fast to develop and establish herself as the Halal hub centre, Agriculture and Agro-Based Industry Minister Tan Sri Muhyiddin Yassin said.

“We are not alone in this field as other countries are competing to establish themselves as Halal food producers,” he said, naming Thailand, Brunei, Indonesia and even Australia as countries well on their way to establishing their Halal hubs.

What Malaysia has got going for her is the usage and wide recognition of the Halal logo developed by Jakim, the lead agency in the conferment of the Halal logo at the federal and state level. Muhyiddin said the task ahead for Malaysia Is to build her capacity and infrastructure, and to be good executors and implementers.

“We need the private sector to implement and bring those ideas to fruition. The synergy will provide the perfect fit for us to compete with others who are equally keen to develop this niche product market,” he said.

Thailand is in the midst of establishing an industrial estate for production of Halal food in the Pattani province. Even Australia has joined the race. With the cooperation of Brunei, six Australian abattoirs have complied with Brunei’s Halal standards and have been certified to supply Halal meat to the country. Adding more punch to Muhyiddin’s call for faster action, Deputy Minister of International Trade and Industry Datuk Ahmad Husni Hanadzlah said, “The Government has provided many incentives for the private sector to enhance productivity of food production in the Halal food industry.”

This comes in the form of pioneer status, tax allowance and also loans of various types. The state Government has also provided incentives by establishing industrial sites. “Off hand it is hard to say when Malaysia can be considered equals to competitors like Thailand, Brunei and Indonesia including established Halal centres like Australia, Brazil and China.

“The biggest plus point is that these countries are not Muslim countries therefore Malaysia has a big chance of success if they step up on food production.”

“Halal is not only in terms of religion but is also about cleanliness and purity. Adopting Malaysian standards in production, handling, processing and packaging would make the products internationally viable,” Ahmad Husni said, adding that it would also comply with other international standards set by the World Health Organisation. Increasing food production would not be too hard a deal, Ahmad Husni said, explaining that raw material would not be obtained here but from other countries like Australia.

For those in the dark about the definition of Halal according to the Syariah law, it means: the food or ingredients that do not contain any parts or products of animals which Muslims are not allowed to eat; the food is slaughtered according to Syariah law; it does not contain najis and the equipment used to process, prepare or manufacture it is not contaminated with najis; it is safe and not harmful, the food or ingredients do not contain any human parts; and during preparation, packaging, processing or transportation it is separated from any other food that does not meet the above requirements.

It is estimated that there are about 1.8 billion Muslim consumers spread out over 112 countries. The large Muslim populations in the Middle East, North Africa, South and Southeast Asia and China present a lucrative market for Halal products. Presently, the two biggest markets for Halal products are Southeast Asia and the Middle East. These areas represent more than 400 million Muslim consumers. Such a big market is a window of opportunity for Malaysian investors, entrepreneurs and exporters to participate and develop their market share. There has been a shift in recent trade patterns among the Islamic countries revealing demand for Halal food, and analysts say the trend will continue well into the future. Therefore, there must be concerted and committed efforts to expand Malaysia’s market opportunities to the Muslim market across the globe.

The Government is supportive of the industry but what the industry needs is to understand Halal requirements and to integrate it into their pre- and post-production processes, to market Halal products as universally acceptable products and to avoid abusing Halal labeling which may easily tarnish the county’s international image. Analysts have also found that only five per cent of Muslim producers were involved in the national food industry which is worth RM45 billion. This clearly points out that Halal market is untapped. The benefits of the Halal certification are far reaching, especially in the economic sector where producers can penetrate bigger markets to sell their products to both Muslims and non-Muslims.

Pulau Indah, Selangor’s Halal Hub

IT was destined to be the central hub for commercial, industrial development, maritime and residential due to its strategic location in the middle of the Port Klang area. Sounds like the average industrial site to attract investors from near and far to come to Malaysia but the Pulau Indah Industrial Park in Westport has far greater potential than that.

The developers of the 14,000 acre of land in Pulau Indah are now offering one of the very first Halal Hubs in Malaysia. The Selangor Halal Hub for Pulau Indah is poised to become a conducive regional hub in the Halal product industry. It is seen by both foreign and local investors as a golden opportunity to set their business horizons in Malaysia’s premier portside development and transhipment hub in the region. Many in the trade industry, be they the Government or private sector, unanimously agree that the one stop Halal hub of Pulau Indah is indeed “great potential for Malaysia”.

Deputy Minister of International Trade and Industry Datuk Ahmad Husni Hanadzlah said the hub would, without a doubt, put Malaysia on the world map in the Halal industry.

“Establishing such a hub has great potential for Malaysia, as it is we are known among the Islamic countries especially through our excellent bilateral ties with the OIC members. “The Selangor Halal Hub and also other hubs like it in the country would further strengthen our position as an Islamic country as well as increase our trade potential,” he said,

The Selangor Halal Hub covers an area of 150 acres designated for high-tech and modern factories for industries of manufacturing and processing Halal products to cater to the increasing demand of Halal products.

The hub’s main developer, Central Spectrum (M) Sdn Bhd, has taken extensive efforts to realise this project as Malaysia is one of the leading Muslim economies in the world. Its marketing manager Junaidah Mohd Shazili said Malaysia offers investors tremendous potential to capture a good position of the Halal product market.

“The market for Halal food products consumed from both Muslim and non-Muslim countries around the world, is estimated at US$500 billion while in Malaysia it is estimated close to US$10 billion,” she said.

“Our objective with setting up the Selangor Halal Hub is to make the state of Selangor a centre for production of Halal food and non-food products, both for the domestic and international market, which can be accepted and recognized worldwide,” Junaidah added.

One of the biggest benefits of the Selangor Halal Hub is fast track approval from the relevant government authorities such as Jabatan Kemajuan Islam Malaysia (JAKIM) and Jabatan Agama Islam Selangor (JAIS). It will also assist to obtain global Halal status together with features to facilitate implementation of Good Manufacturing Practices, Veterinary Inspection, Hazard Analysis and Critical Control Point. In planning is an information and exhibition centre featuring the finest Islamic architecture. This building will house the main exhibition hall, administration offices, information and service centre, cafeteria and surau.

One of the biggest selling points of the Selangor Halal Hub is the strategic location and major port facilities of Pulau Indah. It is in the heart of the Port Klang area which has trading links with 120 countries. Port Klang is also linked to 500 ports around the world. Neighbours to the Selangor Halal Hub is Westport, stretching over 11 kilometres comprising 30 berths built to accommodate dry bulk, liquid bulk, LPG and cement, containers and vehicle terminals. The entire project is part of the Selangor State Government’s plans to transform the island and its surrounding areas into a new commercial hub. With Westport as a major maritime capital, the fast track development of the residential component of the island will augur well for the island’s growth. Junaidah added that the development of Pulau Indah as an integral part of a harbour city plays a vital role in amplifying the importance of the industrial park as a unique portside development. “Upon completion of the complete project in 2015, there will be 3,493.5 acres of industrial development and 20,000 homes on 1,895 acres.

“It holds strong potential to emerge as a new growth centre for industrial, commercial, tourism and recreational activities. The free trade industrial zone will offer vast opportunities to multinational corporations, small and medium scale industries and logistics service providers to become our growth partners,” she said.

Phase one of the industrial estate development is expected to attract investments worth RM3.8 billion, including RM2.2 billion from overseas. Elaborating on the Selangor Halal Hub’s benefits for the country, Deputy Tourism Minister Datuk Ahmad Zahid Hamidi said its development would help increase tourism value for Malaysia. “Such a vast project would attract tourists, especially those from the Muslim countries. As it is one of our main focus area right now are the Middle Eastern countries. “Tourists from these countries feel comfortable with being able to easily obtain Halal food and other Halal products here,” he said.

The Selangor Halal Hub is located along the highway to Westport with an excellent infrastructure and easy road access to the Kuala Lumpur International Airport in Sepang as well as capital cities Kuala Lumpur and the Government Administration Putrajaya, thus making it the ultimate choice for discerning investors.

There are more than 50 acres of industrial lots available, complete with excellent infrastructure, utilities supply and fibre optic telecommunication cabling. Construction of the Selangor Halal Hub’s information and service centre has begun and is expected to be completed by year end. Industrial plots, which are now open for sale, ranges from 0.5 to more than 10 acres are now ready for immediate purchase and occupancy. The Selangor Halal Hub also provides ready built semi-detached and terrace factories. This is expected to be completed by mid 2005.

The Selangor Halal Hub will be the one stop centre for upstream and downstream manufacturing activities of:

• raw material like flour mills and sugar refineries, cocoa powder processing, edible oil refineries and packaging;
• food and beverages including confectionary products, frozen food processing, poultry, meat and seafood processing;
• dairy products such as milk, ice cream and yoghurt;
• non-food products like pharmaceutical herbal supplements, gelatine products, leather, toiletries, aromatherapy and perfumery.

**This article was first published in The Halal Journal Pilot Issue (August 2004), and was written by Hayati Hayatudin.