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
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
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
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
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
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
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. 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
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
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
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
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
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
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
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
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
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
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
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
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
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
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. 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
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. 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. 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
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: