Halal industry should think global, producefor the world

Local SMEs should start making halalinternational delicacies for global market, instead of focusing on Malaysianfoods

By P PREM KUMAR & RAHIMI YUNUS / Pic ByMUHD AMIN NAHARUL

IT IS a well-known fact that Malaysians,particularly the Muslim community, would always travel overseas witheasy-to-cook food packets and instant noodles.

The major reason for it is simple: It ishard to find halal food and beverages (F&B) on foreign land.

Arguably Malaysians are loyal to their“sambal tumis” and “teh tarik”, wherever they go, but it could be a dauntingtask to find halal foods abroad.

Thus, it is even not surprising to see aMalaysian family bringing mortar and pestle in their luggage during travel.

Imagine enjoying Australian meat pies,French macarons, Japanese ramen and Vietnamese pho soup in the countries of itsorigin with peace of mind.

That is the dream which Malaysian halalfood manufacturers should strive to fulfil, according to EntrepreneurDevelopment Minister Datuk Seri Mohd Redzuan Md Yusof.

This, in essence, also shows how big thehalal market is globally.

Mohd Redzuan believes local companiesshould start making halal international delicacies for global market, insteadof focusing on Malaysian foods.

“We should be more aggressive in sellingour expertise. We know the processes and we have the entire halal ecosystem,why not put it to use?” he said during an exclusive interview with TheMalaysian Reserve recently.

Sell Expertise

In the current borderless world, there arehalal instant sambal (chilli paste), fried rice or rendang pastes available inmajor markets.

However, one’s travel would be incompletewithout trying a local delicacy, at least.

“One of the stereotypes that we want todisrupt is Malaysia’s context on halal food. Malaysia has a population of 32million, but we do not have a (huge) market if we just produce halal food withMalaysian taste,” Mohd Redzuan said.

He said small and medium enterprises (SMEs)need to diversify their halal products from mere food making to exportingexpertise on halal certification and processes.

The minister added that such an approach wouldexpand their halal products offerings, while creating domino effects inattracting fresh foreign direct investments into the country.

“The SMEs lack in understanding of themarketplace and processes. For example, they should be adventurous enough toproduce halal teriyaki sauce for the Japanese people,” he said.

Mohd Redzuan said the global halal marketdemands for halal processes, which Malaysia is well-positioned to export theexpertise, attributable to its leading position in the global halal sector.

He said the knowledge of halal processescould also be capitalised to grow under-explored industries in the halalecosystem such as logistics, manufacturing, consumer goods, shipments andpharmaceuticals.

Malaysia has been leading the halalindustry since the early part of the millennium, which resulted in thecountry’s halal exports reaching RM43 billion in 2017.

Halal Development Corp (HDC), an agencytasked to promote the halal industry, has projected the figure to hit RM50billion by 2020 on the back of the growing Muslim population that is estimatedto be at 27% of the world’s population by 2030.

Besides that, other countries where themajority are non-Muslims namely ? China, the US, Japan, Brazil and the UK ? arecatching up with Malaysia to develop their own halal industry, havingrecognised the sector’s potential.

Thomson Reuters Corp’s State of the GlobalIslamic Economy 2017/18 report stated that the Islamic economy will be worthUS$3 trillion (RM12.3 trillion) by 2021, comprising halal food, Islamicfinance, halal travel, modest fashion, halal media and recreation, halalpharmaceuticals and cosmetics.

Malaysia Halal Expo 2019

Leveraging on Malaysia’s worldwidereputation as a leading global halal hub, the Ministry of EntrepreneurDevelopment and relevant agencies are organising the Malaysia Halal Expo 2019,aiming to provide opportunities for Malaysian SMEs to export their halalproducts and services to Japan.

The event ? to be held from tomorrow tillJan 26, 2019, at the Kuala Lumpur Convention Centre ? is poised to preparelocal SMEs for the Olympic and Paralympic Games Tokyo 2020 by providing thelocal community with vast trading and networking opportunities in the growingJapanese halal market.

Both Malaysia and Japan had inked amemorandum of commitment to increase trade value including in the halal sectorahead of the Olympic and Paralympic Games Tokyo 2020.

Besides the sporting event, the memorandumwill also facilitate the development of halal certification, halal tourism andhalal supply chain in the country.

The Olympic and Paralympic Games Tokyo 2020will host over 45,000 athletes and officials, creating a halal market worthUS$300 million, particularly in the F&B segment.

The exhibition is envisioned to be thevenue for business-matching sessions that involve 20 potential Japanese buyerssuch as FamilyMart Co Ltd and Ohga Pharmacy Co Ltd.

“Malaysia Halal Expo 2019 is an excellentplatform for Malaysian SMEs focusing on halal products and services to ventureand penetrate into the Japanese market.

“The ministry hopes that this opportunitywill be seized by the SMEs for heightened brand exposure and most importantly,establish rewarding business networks,” Mohd Redzuan said.

The minister said SMEs should maintain agood reputation and quality for their products and services, for theirpartnership with their Japanese counterparts to grow beyond the Olympic Games.

The expo 2019 is expected to attract 10,000visitors via some 300 booths to promote halal products and services byentrepreneurs that are export-ready, as well as a variety of knowledge sharingsessions.

Deputy Prime Minister Datuk Seri Dr WanAzizah Wan Ismail is expected to open the event.

Link-> https://themalaysianreserve.com/2019/01/23/halal-industry-should-think-global-produce-for-the-world/