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Status of the Halal Industry 2016

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By Y.B. Dato' Sri Mustapa Mohamed, Minister of International Trade and Industy

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Status of the Halal Industry 2016

  1. 1. STATUS OF THE HALAL INDUSTRY by: Y.B. Dato’ Sri Mustapa Mohamed Minister of International Trade and Industry 2 February 2016 ‘Driving Transformation, Powering Growth’
  2. 2. 2 The global interest in Halal is growing UAE: Aim to be the Sharia- compliant centre of the world. Focus will be on Islamic Banking and Halal businesses Japan : Halal as one of the key source of contributors to Japan’s economy by 2020 Brazil: World’s second top exporter of meat and poultry to Muslim-majority countries after the Australia USA: Halal market is estimated at USD18 billion UK: Halal food imports are valued at about GBP18 billion per annum. China: Set to become the net importer of food products, including Halal F&B by the next decade Malaysia: Halal exports in 2014 were more than USD11 billion. Largest exporter of Halal ingredients. Export destinations: China, USA, Indonesia and Japan Thailand: The domestic halal food market grows around 20 percent a year. 8,000 companies involved in halal food production Malaysia is still the leader Source: Global Islamic Economic Report (Thompson & Reuters)
  3. 3. 3 Malaysia • Proper ecosystem • Proper industry development framework • Dedicated government agencies • Diverse (food, non-food and services) • Comprehensive and reliable data / information through the Global Halal Support Centre i.e. Halal exports, investment, employment, establishment etc. Others • Focus on production and certification • Not available • Except UAE, the rest led by NGOs / religious bodies • Concentrate on food and meat products • Little data available Only Malaysia has a comprehensive institutional framework to drive Halal development agenda
  4. 4. 4 It’s a collaborative effort among the key stakeholders Investment Promotion Export Promotion SME Development FOCAL POINT Certification & Enforcement Standards Development PRIME MINISTER’S DEPARTMENT
  5. 5. 5 Employment in Halal Number of exporters (SMEs) Halal export revenue Macro-economic KPIs (2020) 2 3 1 A new source of economic growth Global reference centre for Halal integrity (Standards, Certification, Training, etc.) Specialty Processed Food Cosmetics and Personal Care Ingredients Livestock Legislation and regulatory framework Human capital Physical infrastructure and connectivity Funding and incentives Industry standards and certification Public sector delivery system Services – logistics, Tourism, Healthcare The development framework Achievements (2015) = RM19 billion = 300,000 jobs = 1,600 companies RM42 billion 218,000 jobs 800 companies HIMP 2006 - 2020: Target and Achievement Forecasted Note: 206,000 in 2014 Note: 700 in 2014
  6. 6. 6 Halal Companies in Malaysia: 5,726 2336 3320 4443 5415 2011 2012 2013 2014 2015 Number of Halal Certified Companies 33% 67% 2014 Bumiputera Non Bumiputera 32% 68% 2015 By ownership Source: Bahagian Hab Halal JAKIM 5,726 • Major products certified halal in 2015: • Food products - 76.87% • Non-Food Products - 23.13%
  7. 7. 7 24 32 33 38 2011 RM billion Key Export Destinations China Singapore United States Indonesia Japan RM4.0 billion RM3.4 billion RM2.4 billion RM2.3 billion RM1.9 billion Food & beverages Cosmetic & Personal Care Industrial Chemical Main products Value Ingredients Palm Oil Derivatives Halal Export (2015f): RM42 billion Forecast 2012 2013 2014 2015 Source: Halal Product Statistic Coordination Committee +11% increase compared to 2014 42 RM1.3b RM0.03b RM0.1b RM1.7b RM0.9b
  8. 8. Investment in Halmas Halal Park: RM10.6 billion • Foreign : RM5.6 billion (27 companies) • Domestic: RM5.0 billion (105 companies) • Full income tax exemption for 10 years • Import duty exemption • Double deduction on qualifying expenditure Main incentives for Halal players: Main new investors in 2015: 8 Success Stories: Investment RM552 million RM323 million RM150 million RM100 million FOOD Since 2010
  9. 9. 9 Success Stories: HALMAS Status Halal Park Parks Techpark @ Enstek Key Halal Parks 4,312 Investment (2010 – 2015) RM million Selangor Halal Hub 1,805 Tanjung Manis Halal Hub 1,802 POIC Tanjung Langsat PKFZ Halal Flagship Zone Penang International Halal Park 1,466 575 484 Melaka Halal Park 119 2 3 1 5 6 4 7 Others 3648
  10. 10. 10 Success Stories: Local Large Corporations RM1 billion sales in 2015 • 5 shops and 11 Halal kiosks • 25,000 stalls RM350 million sales in 2014 • Footprint in USA, Japan and Australia • 4,000 employment RM320 million sales in 2014 • Footprint in Thailand, Philippines, Singapore, Indonesia and British Virgin Island RM3.9 billion sales in 2014 • 1,266 outlets (Singapore, Brunei, Cambodia and India)
  11. 11. 11 Success Stories: MNCs Make Malaysia as Halal Centre of Excellence • 7 Nestle Halal factories in Malaysia. • 150 Nestle Halal factories globally – exporting to more than 50 countries. • “World first Halal Vaccine production facility in Malaysia” • RM550 million investment in Halal Park • RM300 million investment in Halal Park. • 600 employment created. • RM500 million investment in Halal Park. • 150 employment created • RM1.2 billion investment in Halal Park. • 800 employment created. Key MNCs
  12. 12. 12 Out of 2,400 companies participated, 40% reported double digit growth. Activities Halal and Global Best Practices Equipping the workforce with the right knowledge, skills & tools Business Linkages Creating demand, connecting opportunities and facilitating trade Access to Financing Providing advisory and facilitating financing application Branding and Promotions Increasing consumers’ confidence and strengthening halal value proposition Success Stories: Halal Business Transformation (SME) A nurturing programme for local Halal companies - Increase competitiveness and business performance Achievement
  13. 13. 13 Success Stories: SMEs under HBT Akmal Food 100% Contract Received: • Tesco • GIANT, • AEON Jusco • AEON Big, • Mydin Sales: (2012 vs 2014) Hajjah Aminah 87% Contract Received: • GIANT, • AEON Anjaad Manufacturing Contract Received: • AEON Jusco • Mydin 57% Sales: (2012 vs 2014) Sales: (2012 vs 2014) Fatihah Frozen Contract Received: • Tesco • GIANT • AEON Big • Mydin 17% Sales: (2012 vs 2014) Ryverra Chocolate Contract Received: • Mydin • AEON 23% Sales: (2012 vs 2014)
  14. 14. 14 Knowledge Gathering Knowledge Analysis Knowledge Dissemination One Touch Point Services Offered 33 million global visitors’ (physical & on- line) utilization: 150 COUNTRIES Launched by the YBM in 2012 New Products: Achievement: Success Stories: Global Halal Support Centre GHSC positions Malaysia as the Global Reference Centre for the world HALAL IP EXCHANGE HALAL EMPLOYMENT PORTAL Objective: Note: 32 million in 2014
  15. 15. 15 Partners To increase the number of knowledgeable personnel in sharia compliance, industry and science Achievement 7,500 Halal Knowledge Personnel Success Stories: Halal Talent Development Objective
  16. 16. 16 Halal Certification Bodies Source: Bahagian Hab Halal JAKIM • There are about 200 different Halal certifications available globally. The majority of certifications stems from Asia Pacific countries • As of January 2016, JAKIM has recognised 54 Foreign CBs from 32 countries covering all regions. 8 CBs from Australia and 2 from New Zealand • Products and goods certified by those CBs are allowed to be exported and marketed in Malaysia under Trade Descriptions Act (Certification and Marking of Halal Order) 2011
  17. 17. 17 Going Forward RMK-11
  18. 18. 18 FOCAL POINT Institution for Industry Development INDUSTRY DEVELOPMENT FOCAL POINT COORDINATION OF AGENCIES SUPPORT FUNCTION IN HALAL SERVICES Key Roles Details Central implementation agency for key industry development initiatives • Oversees implementation of development initiatives • Works with relevant authorities and companies to address gaps identified • Promotes industries and liaises with investors and other relevant parties Referral agency for implementation of initiatives • Specifies key agencies involved and outlines roles and responsibilities of each Coordinates the agencies’ activities and organizes discussion sessions (e.g. R&D Advisory Council etc.) Branding and promotion of products/industries and of Halal Training and consultancy services in Halal to support certification 1) 2) 1) 2) 1)
  19. 19. 19 Governance Structure JAWATANKUASA KHAS KABINET PEMBANGUNAN & PENGURUSAN INDUSTRI HALAL MALAYSIA JAWATANKUASA KHAS KABINET PEMBANGUNAN & PENGURUSAN INDUSTRI HALAL MALAYSIA DEPUTY PRIME MINISTERDEPUTY PRIME MINISTER Secretariat: JAKIM & MITI (HDC) Secretariat: JAKIM & MITI (HDC) Secretariat: JAKIM & MITI (HDC) Secretariat: JAKIM & MITI (HDC) JAWATANKUASA PEMANDU INDUSTRI HALAL MALAYSIA JAWATANKUASA PEMANDU INDUSTRI HALAL MALAYSIA MINISTER IN PRIME MINISTER’S DEPARTMENT & MINISTER OF INTERNATIONAL TRADE AND INDUSTRY MINISTER IN PRIME MINISTER’S DEPARTMENT & MINISTER OF INTERNATIONAL TRADE AND INDUSTRY JAWATANKUASA PENASIHAT PENSIJILAN HALAL JAWATANKUASA PENASIHAT PENSIJILAN HALAL Secretariat: JAKIMSecretariat: JAKIM DIRECTOR GENERAL OF JAKIM DIRECTOR GENERAL OF JAKIM JAWATANKUASA PENASIHAT PEMBANGUNAN INDUSTRI HALAL JAWATANKUASA PENASIHAT PEMBANGUNAN INDUSTRI HALAL Secretariat: HDCSecretariat: HDC SECRETARY GENERAL OF MITI SECRETARY GENERAL OF MITI Tier 1 Tier 2 Tier 3
  20. 20. 20 Halal Malaysia Internationalisation Desired Outcome Malaysia as the Global Reference Centre Malaysia as the global leader in the innovation, production and trade of a number of Halal-related sectors Integrity • Development of Global Talent • Employment for the Halal Industry • Leadership in Halal knowledge Industry Development • Halal Investment fund • End-to-end Pipeline Management • Bumiputera Economic Community Agenda • Halal Innovation • Halal Investment Promotion • Halal Trade Brand Development • Positioning leadership in Halal
  21. 21. Hosted by: Organised by: 21
  22. 22. 22 Dubbed the biggest international halal event, World Halal Week brings together industry players, certifiers, scholars, academics and consumers in three key events: the Malaysia International Halal Showcase (MIHAS), the World Halal Week Conference (WHC) and the International Halal Certification Bodies Convention. When : 28 March – 2 April 2016 Where: Kuala Lumpur Convention Centre Theme: Beyond The Economy OVERVIEW
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  24. 24. 24 HALAL CERTIFICATION BODIES CONVENTION The 7th JAKIM International Halal Certification Bodies Convention will convene more than 55 JAKIM recognised Halal certification bodies (CBs), which is meant to strengthen cordial relationship, and exchange opinions on Halal certification issues based on the Malaysian Halal Standard and experience. When: 28 – 29 March 2016 (Monday – Tuesday) Where: Marriot Putrajaya Hotel Theme: Towards New Dimension of Halal Target Audience: Recognize Halal Certification Bodies
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  26. 26. 1 Date 30 March – 2 April 2016 (Wednesday – Saturday) Time 10.00 am – 7.00 pm Venue Exhibition Hall 1-6, Ground Floor, KLCC Format Trade fair Hosted by Ministry of International Trade and Industry (MITI) Organised by Malaysia External Trade Development Corporation (MATRADE) Managed by Shapers Malaysia Sdn. Bhd. (SHAPERS) In Association with Halal Industry Development Corporation (HDC) and Department of Islamic Development Malaysia (JAKIM) Sectors represented Halal Consumables, Halal Certified Premises, Non-Food Products & Services, Food Packaging, Machinery & Catering Equipment, Government Agencies & Associations, Islamic Investment, Banking & Takaful Expected Companies • 550 companies (484 companies confirmed as at 29 Jan 2016) Expected Visitors • 25,000 people Expected Booths • 640 booths Expected Countries • 28 countries Expected Visiting Countries • 67 countries FAST FACTS ON MIHAS 2016 26
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  28. 28. MIHAS 2016 (as of 20 January) Total Number of Booths 543 booths Local Booths 260 booths International Booths 283 booths Total Booths Offered 640 booths Total Number of Companies 484 companies Local Companies 204 companies Bumiputera Companies 133 companies Non-Bumi Companies 71 companies International Companies 280 companies MIHAS 2016 30 MARCH – 2 APRIL Kuala Lumpur Convention Centre, KLCC “EXPERIENCE HALAL” MIHAS 2016 (as of 20 January) No of Participating Countries 25 countries Major Participating Countries • Thailand (56 companies) • China (34 companies) • Indonesia (30 companies) • Taiwan (28 companies) • South Africa (26 companies) 28
  29. 29. OIC @ MIHAS 2016 TOTAL 53 Iran 16 Turkey 16 Palestine 8 Pakistan 6 Bangladesh 4 Saudi Arabia 2 Tunisia 1 ASEAN @ MIHAS 2016 TOTAL 303 Malaysia 204 Thailand 56 Indonesia 30 Philippines 8 Vietnam 4 Singapore 1 MIHAS 2016 30 MARCH – 2 APRIL Kuala Lumpur Convention Centre, KLCC “EXPERIENCE HALAL” 29
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  32. 32. FAST FACTS ON WHC 2016 Date 30 March – 31 March 2016 (Wednesday – Thursday) Time 10.00am – 7.00 pm Venue Ballroom 2, Level 3, Kuala Lumpur Convention Centre Theme Halal at the Forefront of Economic and Social Change Format Main Conference with Ministerial Panel, Ambassadors Panel, Special Address Session, Plenary Sessions on specific components and emerging areas and Business Networking Galleria. Hosted by Ministry of International Trade and Industry (MITI) Organised by Halal Industry Development Corporation (HDC) In Association with • Malaysia External Trade Development Corporation (MATRADE) • Department of Islamic Development Malaysia (JAKIM) Expected Participants Targeted to attract close to 1,000 participants from more than 50 countries 32
  33. 33. OUTCOME FROM WHC 2015 • 1 - 2 April 2015. • The WHC 2015 theme “Halal Economy: A Profitable Convergence” demonstrates the importance of the “know how” on converging the Halal industry and the Islamic finance. The conference comprised six subject-focused forums featuring intensive and empowering dialogues with 80 influential speakers to map out future global Halal developments. • Attended by 1,341 high profile delegates from 54 countries including H.E. Mr. Nurettin Canikli, Minister of Customs and Trade of Turkey, H.E. Dr. Rashid Ahmed Mohamed Bin Fahad, Minister of Environment and Water of United Arab Emirates and H.E. Mrs. Apiradi Tantraporn, Deputy Minister of Commerce of Thailand. • Halal Excellence Award was presented at the Appreciation Dinner to honor an organization that has excelled and contributed significantly to the growth of the halal industry. Chemical Company of Malaysia Berhad (CCM) was the recipient for Halal Excellence Award. • PR Value garnered: RM 15 million 33
  34. 34. Australia Fiji Islands Papua New Guinea Solomon Islands Canada USA Argentina Brazil Chile Uruguay Bangladesh India Maldives Pakistan Sri Lanka Ecuador Austria Belgium Bosnia Herzegovina Denmark Georgia Romania Russia UK China Japan Korea Taiwan Brunei Indonesia Laos Philippines Singapore Thailand Vietnam Azerbaijan Iran Kuwait Kyrgyz Qatar Saudi Arabia Turkey UAE Yemen Egypt Ghana Lesotho Libya South Africa Zambia Zimbabwe Malaysian Delegates International Delegates Total 820 521 1,341 WHC 2015 CONFERENCE DELEGATES (1,341) 34
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  36. 36. 36 Thank you MITI AGENCIES Ministry of International Trade and Industry No. 7, Menara MITI, Jalan Sultan Haji Ahmad Shah, 50480 Kuala Lumpur, Malaysia. Tel: 603-8000 8000 | Fax: 603-6201 2337 Email: webmiti@miti.gov.my | Website: www.miti.gov.my Special thanks to:

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