status of the halal industry

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’
The global interest in Halal is growing
UK: Halal food imports are
valued at about GBP18 billion
per annum.
Japan : Halal as one of the
key source of contributors to
Japan’s economy by 2020
China: Set to become the net
USA: Halal market is
importer of food products,
including Halal F&B by the next
decade
estimated at USD18 billion
Thailand: The domestic halal
UAE: Aim to be the Shariacompliant centre of the world.
Focus will be on Islamic
Banking and Halal businesses
food market grows around 20
percent a year. 8,000
companies involved in halal
food production
Malaysia: Halal exports in
Brazil: World’s second top
exporter of meat and poultry to
Muslim-majority countries after
the Australia
2014 were more than USD11
billion. Largest exporter of Halal
ingredients. Export
destinations: China, USA,
Indonesia and Japan
Malaysia is still
the leader
Source: Global Islamic Economic Report
(Thompson & Reuters)
2
Only Malaysia has a comprehensive
institutional framework to drive Halal
development agenda
Malaysia
Others
•
Proper ecosystem
•
Focus on production and certification
•
Proper industry development framework
•
Not available
•
Dedicated government agencies
•
Except UAE, the rest led by NGOs /
religious bodies
•
Diverse (food, non-food and services)
•
Concentrate on food and meat products
•
Comprehensive and reliable data /
information through the Global Halal
Support Centre i.e. Halal exports,
investment, employment, establishment
etc.
•
Little data available
3
It’s a collaborative effort among the key
stakeholders
PRIME MINISTER’S DEPARTMENT
Investment
Promotion
FOCAL POINT
Export Promotion
Certification &
Enforcement
Standards
Development
SME Development
4
HIMP 2006 - 2020: Target and Achievement
Macro-economic KPIs (2020)
Achievements
(2015)
The development framework
A new source of economic
growth
1
Global reference centre for Halal integrity
(Standards, Certification, Training, etc.)
Specialty
Processed
Food
Cosmetics
and
Personal
Care
Ingredients
Livestock
Halal export revenue
RM42 billion
= RM19 billion
Forecasted
Services –
logistics,
Tourism,
Healthcare
2
3
Legislation and
regulatory framework
Human capital
Physical
infrastructure and
connectivity
Funding and
incentives
Industry standards
and certification
Public sector
delivery system
Employment in Halal
= 300,000 jobs
Number of
exporters (SMEs)
218,000 jobs
Note: 206,000 in 2014
800
companies
= 1,600 companies
Note: 700 in 2014
5
Halal Companies in Malaysia: 5,726
Number of Halal Certified
Companies
By ownership
2014
5,726
5415
2015
33%
32%
4443
67%
68%
3320
2336
2011
Bumiputera
2012
2013
2014
Source: Bahagian Hab Halal JAKIM
2015
Non Bumiputera
• Major products certified halal in 2015:
• Food products - 76.87%
• Non-Food Products - 23.13%
6
Halal Export (2015f): RM42 billion
42
RM billion
32
Key Export Destinations
38
China
RM4.0 billion
33
Singapore
RM3.4 billion
24
United States
RM2.4 billion
Main products
Value
Ingredients
RM1.7b
Palm Oil Derivatives
RM0.9b
Food & beverages
RM1.3b
Cosmetic & Personal Care
RM0.03b
Industrial Chemical
RM0.1b
Indonesia
RM2.3 billion
Japan
RM1.9 billion
Source: Halal Product Statistic Coordination
Committee
2011
2012
2013
2014
2015
Forecast
+11% increase compared to
2014
7
Success Stories: Investment
Main new investors in
2015:
RM552 million
Investment in Halmas Halal
Park:
RM10.6 billion
RM323 million
Since 2010
•
•
Foreign : RM5.6 billion (27 companies)
Domestic: RM5.0 billion (105 companies)
RM150 million
Main incentives for Halal players:
•
•
•
Full income tax exemption for 10 years
Import duty exemption
Double deduction on qualifying expenditure
RM100 million
FOOD
8
Success Stories: HALMAS Status Halal Park
Parks
Key Halal Parks
Investment (2010 – 2015)
RM million
1
Techpark @ Enstek
4,312
2
Selangor Halal Hub
1,805
3
Tanjung Manis Halal Hub
1,802
4
POIC Tanjung Langsat
1,466
5
PKFZ Halal Flagship Zone
575
6
Penang International Halal
Park
484
7
Melaka Halal Park
119
8
Others
364
9
Success Stories: Local Large Corporations
RM1 billion sales in 2015
•
•
5 shops and 11 Halal kiosks
25,000 stalls
RM350 million sales in 2014
•
•
RM3.9 billion sales in 2014
•
1,266 outlets (Singapore,
Brunei, Cambodia and India)
Footprint in USA, Japan and
Australia
4,000 employment
RM320 million sales in 2014
•
Footprint in Thailand, Philippines,
Singapore, Indonesia and British
Virgin Island
10
Success Stories: MNCs
Make Malaysia as Halal Centre of Excellence
Key MNCs
• 7 Nestle Halal factories in Malaysia.
• 150 Nestle Halal factories globally – exporting to more than 50
countries.
• RM1.2 billion investment in Halal Park.
• 800 employment created.
• RM300 million investment in Halal Park.
• 600 employment created.
• RM500 million investment in Halal Park.
• 150 employment created
• “World first Halal Vaccine production facility in Malaysia”
• RM550 million investment in Halal Park
11
Success Stories: Halal Business Transformation (SME)
A nurturing programme for local Halal companies Increase competitiveness and business performance
Activities
Halal and Global Best Practices
Access to Financing
Equipping the workforce with the right
knowledge, skills & tools
Providing advisory and facilitating
financing application
Business Linkages
Branding and Promotions
Creating demand, connecting
opportunities and facilitating trade
Increasing consumers’ confidence
and strengthening halal value
proposition
Achievement
Out of 2,400 companies participated,
40% reported double digit growth.
12
Success Stories: SMEs under HBT
Hajjah Aminah
Akmal Food
Contract Received:
• Tesco
100%
• GIANT,
• AEON Jusco
Sales:
• AEON Big,
(2012 vs 2014)
• Mydin
Contract Received:
• GIANT,
• AEON
87%
Sales:
(2012 vs 2014)
Anjaad Manufacturing
Fatihah Frozen
Contract Received:
• AEON Jusco
• Mydin
Contract Received:
• Tesco
• GIANT
• AEON Big
• Mydin
57%
Sales:
(2012 vs 2014)
17%
Sales:
(2012 vs 2014)
Ryverra Chocolate
Contract Received:
• Mydin
• AEON
23%
Sales:
(2012 vs 2014)
13
Success Stories: Global Halal Support Centre
Objective:
GHSC positions
Malaysia as the
Global Reference
Centre for the world
Achievement:
33 million global visitors’ (physical & online) utilization:
150 COUNTRIES
Note: 32 million in 2014
Services Offered
Knowledge Gathering
Knowledge Analysis
Knowledge
Dissemination
One Touch Point
New Products:
Launched by the YBM in
2012
HALAL IP
EXCHANGE
HALAL EMPLOYMENT
PORTAL
14
Success Stories: Halal Talent Development
Objective
To increase the number of knowledgeable personnel in
sharia compliance, industry and science
Partners
Achievement
7,500 Halal Knowledge Personnel
15
Halal Certification Bodies
•
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
Source: Bahagian Hab Halal JAKIM
16
Going Forward RMK-11
17
FOCAL POINT Institution for Industry Development
Key Roles
Details
1)
INDUSTRY
DEVELOPMENT
Central implementation agency for key industry
development initiatives
•
•
•
1)
COORDINATION
OF AGENCIES
Referral agency for implementation of initiatives
•
Specifies key agencies involved and outlines roles and
responsibilities of each
2)
Coordinates the agencies’ activities and
organizes discussion sessions (e.g. R&D
Advisory Council etc.)
1)
Branding and promotion of products/industries
and of Halal
2)
Training and consultancy services in Halal to
support certification
FOCAL POINT
SUPPORT FUNCTION
IN HALAL SERVICES
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
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Governance Structure
DEPUTY PRIME MINISTER
Tier 1
JAWATANKUASA KHAS KABINET
PEMBANGUNAN & PENGURUSAN
INDUSTRI HALAL MALAYSIA
Tier 2
MINISTER IN PRIME MINISTER’S DEPARTMENT &
MINISTER OF INTERNATIONAL TRADE AND
INDUSTRY
JAWATANKUASA PEMANDU
INDUSTRI HALAL MALAYSIA
Tier 3
Secretariat:
JAKIM &
MITI (HDC)
DIRECTOR GENERAL
OF JAKIM
SECRETARY
GENERAL OF MITI
JAWATANKUASA
PENASIHAT PENSIJILAN
HALAL
JAWATANKUASA
PENASIHAT
PEMBANGUNAN
INDUSTRI HALAL
Secretariat: JAKIM
Secretariat:
JAKIM &
MITI (HDC)
Secretariat: HDC
19
Halal Malaysia Internationalisation
Integrity
•
•
•
Development of Global Talent
Employment for the Halal
Industry
Leadership in Halal knowledge
Desired Outcome
Malaysia as the
Global Reference Centre
Industry Development
•
•
•
•
•
•
Halal Investment fund
End-to-end Pipeline Management
Bumiputera Economic Community
Agenda
Halal Innovation
Halal Investment Promotion
Halal Trade
Brand Development
•
Malaysia as the global
leader in the innovation,
production and trade of a
number of Halal-related
sectors
Positioning leadership in Halal
20
Hosted by:
Organised by:
21
OVERVIEW
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 :
Where:
Theme:
28 March – 2 April 2016
Kuala Lumpur Convention Centre
Beyond The Economy
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23
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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25
FAST FACTS ON MIHAS 2016
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
1
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27
MIHAS 2016
30 MARCH – 2 APRIL
Kuala Lumpur Convention Centre, KLCC
“EXPERIENCE HALAL”
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 (as of 20 January)
No of
Participating
Countries
Major
Participating
Countries
25 countries
• Thailand (56 companies)
• China (34 companies)
• Indonesia (30 companies)
• Taiwan (28 companies)
• South Africa (26 companies)
28
MIHAS 2016
30 MARCH – 2 APRIL
Kuala Lumpur Convention Centre, KLCC
“EXPERIENCE HALAL”
ASEAN @ MIHAS 2016
TOTAL
303
Malaysia
204
Thailand
56
Indonesia
30
Philippines
8
Vietnam
4
Singapore
1
OIC @ MIHAS 2016
TOTAL
53
Iran
16
Turkey
16
Palestine
8
Pakistan
6
Bangladesh
4
Saudi Arabia
2
Tunisia
1
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30
31
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
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
WHC 2015
CONFERENCE DELEGATES (1,341)
Austria
Belgium
Bosnia Herzegovina
Denmark
Georgia
Romania
Russia
UK
Canada
USA
Azerbaijan
Iran
Kuwait
Kyrgyz
Qatar
Saudi Arabia
Turkey
UAE
Yemen
Egypt
Ghana
Lesotho
Libya
South Africa
Zambia
Zimbabwe
Ecuador
Argentina
Brazil
Chile
Uruguay
China
Japan
Korea
Taiwan
Bangladesh
India
Maldives
Pakistan
Sri Lanka
Malaysian Delegates
International Delegates
Total
820
521
1,341
Brunei
Indonesia
Laos Philippines
Singapore
Thailand
Vietnam
Australia
Fiji Islands
Papua New Guinea
Solomon Islands
34
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Thank you
MITI AGENCIES
Special thanks to:
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: [email protected] | Website: www.miti.gov.my
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