Much activity expected in the Indonesian cold chain market through to 2026

The Indonesian cold chain market is expected to be valued at about IDR6,800 B by 2026, says research firm Ken Research.

According to the company, the cold chain market is highly fragmented and currently includes 100+ cold transportation and storage players. A significant increase in the number of companies is expected year-on-year due to consumer demand and technology advances, leading to significant industry fragmentation, Ken Research said.

IFSB shares Islamic Financial Services Industry Stability Report for 2017

The Islamic Financial Services Board (IFSB) has released the 5th edition of its annual Islamic Financial Services Industry Stability Report highlighting developments in the growth, stability and other aspects of the Islamic financial services industry (IFSI).

The 2017 report finds that despite subdued economic growth conditions and the impact of new geopolitical developments, the global IFSI has been able to sustain its total assets value at approximately US$1.9 trillion in 2016. While the overall performance of Islamic finance in 2016 has been satisfactory, the IFSB says that the industry needs to build long-term resilience amidst the prevailing era of weak growth and uncertainties.

Acting Secretary-General of the IFSB Zahid ur Rehman Khokher, said, “The issuance of the Islamic Financial Services Industry Stability Report 2017 comes during a time of growing external challenges for the financial system, including lower economic growth outlooks and global political uncertainties. While the Islamic financial services industry has, in many respects, withstood the challenging operating environment, it has however moved away from the double-digit growth trajectory witnessed in previous years. This slowdown underscores the importance, more than ever, of strengthening the resilience of the Islamic financial system and addressing internal weaknesses and vulnerabilities through appropriate policy responses.”

A key feature of the 2017 report is that data from the IFSB’s Prudential and Structural Islamic Financial Indicators (PSIFIs) database has been utilised for the first time in the report’s Islamic banking sector analysis. The use of this data has enriched the report by providing:

• Strengthened reliability of data as it is sourced directly from regulatory and supervisory authorities;
  wider geographical coverage, with data covering 18 countries in comparison to 10 countries analysed in the 2016 report;
• Holistic coverage of each jurisdiction as the PSIFIs data covers the aggregated domestic Islamic banking sector including data of Islamic banking windows. Previous reports had used sample data from selected full-fledged Islamic banks; and
• Additional financial indicators, e.g. value of shari'ah-compliant financing by economic sectors, that are included in the PSIFIs database.

Amidst a challenging external environment brought on by the changing policy directions and uncertainties in the global economic landscape, institutions offering Islamic financial services (IIFS) have continued to grow and gain market share, particularly in their home jurisdictions, the report said. However, the previously observed double-digit growth rate of the global IFSI has slowed down to single-digit growth.

The report shares the findings of an IFSB study on stress testing of Islamic banks conducted in early 2017 to identify the connections between macroeconomic and financial variables of Islamic banks to provide a preliminary idea of plausible quantitative dimensions that can be used for stress testing of Islamic banks. The empirical findings provide an indication of important linkages between four macroeconomic variables; interest rates, unemployment, real estate prices and oil prices – and Islamic banks’ non-performing financing (NPF) ratio, deposits, financing and assets.

The report also provides an insight into fintech in the Islamic finance space, the development of which poses a number of legal, regulatory and shari'ah issues. Discussions on fintech focus on two areas that have attracted much attention: the distributed ledger technology, which is at the core of cryptocurrencies (e.g. Bitcoin) and smart contracts, and multi-sided Internet platforms, which are the basis of crowdfunding.

The IFSI Stability Report 2017 provides an in-depth analysis of the performance and stability of the IFSI in 2016, focusing on the three main sectors, banking, capital market and takāful:

Growing market shares of Islamic banks

The developments in the Islamic banking sector in 2016 were more dynamic than implied by the moderate growth rate observed in total banking sector assets, illustrated by a shift in the regional composition of global assets and reasonable levels of growth in assets, financing and deposits of Islamic banks in most jurisdictions. More notably, the market shares of Islamic banks increased in 18 jurisdictions, providing a strong indication of a growing acceptance of Islamic finance in jurisdictions with dual financial systems. Jurisdictions where Islamic finance has achieved domestic systemic importance also increased to 12 in the past year.

Sustained returns in most jurisdictions

The Islamic banking sector has generally sustained its return on assets and return on equity as a whole in the last two years, but there are considerable differences on jurisdictional levels as some markets have witnessed declines in returns. With respect to asset quality, while the non-performing financing (NPF) ratios of the IFSI globally and for most jurisdictions have decreased, a few jurisdictions exhibited higher NPF rates.

The capitalisation in the industry at a Tier-1 level was 9.71% in 1H16, remaining above the Basel III/ IFSB-15 minimum regulatory requirements of 6%. However, an area of continued concern is the short-term liquidity health of Islamic banks. Overall, conditions varied significantly between countries, with each jurisdiction exposed to its unique set of domestic conditions.

The Islamic capital market performed better in 2016 than in 2015

2016 saw an increase in sukūk issuances, while Islamic stocks continued to generate profit. The volume of annual ṣukūk issuances reached US$75 billion in 2016, bringing the volume of outstanding ṣukūk close to US$320 billion, with 79% of the issuances originated from sovereigns, including government-related entities (GREs) and multilateral organisations, while only 21% were corporate issuances.

Shari'ah-compliant equities and Islamic funds

In contrast to previous years, shari'ah-compliant equities generated lower returns in comparison to conventional equities. The equity markets suffered in 2015 and during most of 2016 due to political uncertainties, slow growth, depressed oil prices and volatile commodity prices. While the unexpected election outcome in the US triggered a stock market rally in the latter part of 2016, Islamic equity and fixed income funds benefited from the good performance of the Islamic equity indices and the improved ṣukūk yields. Positive results of Islamic commodity funds are mainly due to an increase of the oil price at the end of the year.

High growth in the takāful sector

The global takāful industry recorded a growth in contributions of 12% while conventional insurance premiums only grew by 4%. Despite the high growth rate, takāful is by volume still a small industry with total contributions of US$25 billion and 305 takāful and retakāful operators plus windows. The GCC accounts for 47% of the contributions and 31% of the takāful operators, followed by MENA (excluding GCC) with 33% of contributions and 22% of the operators, and Asia with 18% of contributions and 15% of the operators. The insurance/takāful penetration in most Organization of Islamic Cooperation (OIC) countries is relatively low. While this indicates untapped market potential, there is strong competition for market shares. As many takāful undertakings lack scale for efficient operations, it is expected that the consolidation of the industry through mergers and acquisitions will continue in Southeast Asia and the GCC.

Global outlook for the IFSI

The outlook for the global IFSI is generally positive, with concerns that fiscal deficits will contain spending by governments, which could have an adverse impact on Islamic banks. While the industry has shown resilience and satisfactory performance in 2016, the era of weak growth and external uncertainties facing the industry indicates the growing need for the global IFSI to build long-term resilience.

Interested?

The IFSI Stability Report 2017 is available for download

Malaysia's HDC identifies way forward for halal economy

Source: WHC.  Tan Sri Dato' Dr Syed
Jalaludin.

More than 1,000 delegates converged at this year’s 9th annual World Halal Conference in Kuala Lumpur, Malaysia. Centred on the theme Halal at the Forefront of Social and Economic Change, the conference furthered insights and knowledge of the halal industry.

The event was graced by YAB Tun Abdullah Haji Ahmad Badawi, the patron of the World Halal Conference, who gave the opening remarks during the conference. A main conference was also hosted with a Ministerial Panel chaired by Yang Berhormat Dato’ Sri Mustapa Mohamed, the Minister of International Trade & Industry Malaysia. Other sessions included a Global Leaders Panel Session, several concurrent plenary sessions on specific components within the halal ecosystem such as e-commerce, youth and women’s empowerment, and a Business Networking Galleria hosted by collaborating partners of WHC.

This year’s conference saw the collaboration of several partners including the Islamic Development Bank, Nestle Malaysia, Agro Bank, Ramly, Chemical Company of Malaysia (CCM), East Coast Economic Region Development Council (ECERDC), Kuala Lumpur Malay Chamber of Commerce, Malaysian Industrial Development Authority (MIDA), and Sugarscarf.

“We are honoured to see such strong commitment from our industry partners, together with the participation of foreign delegates and renowned speakers who have made this year’s conference a success. We urge for their continuous support; together we can take the halal industry to new heights, both internationally and locally,” said Tan Sri Dato' Dr Syed Jalaludin Bin Syed Salim, Chairman of the Halal Industry Development Corporation (HDC).

The conference also saw the strategic alliance of HDC with various SMEs with the aim of uplifting the local halal economy. These included a memorandum of understanding between HDC and Nestle Malaysia that focused on building local productive capacity, enhancing social inclusion, and promoting environmental sustainability.

Despite the lacklustre prediction of the global economic sphere, the demand for halal products remain positive. Malaysia stands as the biggest halal exporter next to China with an increase of 4% in its export value in 2015.

“Indeed the Halal Industry Development Corporation has grown by leaps and bounds since its foundation 10 years ago; it is of utmost importance that we sustain the halal momentum and drive its growth even further,” adds Jalaludin.

World Halal Conference to include discussions on e-commerce, globalisation

Source: HDC.

Halal and e-commerce will be a key topic discussed at this year’s World Halal Conference, held by Malaysia's Halal Industry Development Corporation (HDC) on March 30 and 31 2016 with the theme Halal at the Forefront of Economic and Social Change.

The two-day conference will focus on various aspects of the halal industry, including the challenges facing the global halal economy, the rise of halal e-commerce and new business opportunities, and the need to develop talent. More than 800 Halal stakeholders and foreign delegates are expected to participate in the conference.

Other discussions include an Ambassadors Panel on Strategic Foresight on Economic & Social Aspects, and Globalization of Islamic Economy: The Halal Perspectives. Panellists for the discussions will comprise several heads of governments and corporate leaders, including from the UAE, Turkey, Japan, China, Korea, Qatar, Thailand, the UK and Indonesia.

Source: HDC. Dato' Seri Jamil Bidin.

“For many Muslims, halal goes beyond food and trade; it is a way of life. With Malaysia being recognised as the leader in the global halal arena, it is important for us to push forward and align our efforts simultaneously with key players of the industry, in meeting the consumer needs of Muslims worldwide,” said HDC’s Chief Executive Officer, Dato’ Seri Jamil Bidin. "This conference seeks to converge and inspire ideas from all around the world in addressing the current issues and challenges as well as incorporating halal perspectives into socio-economic developments."

This year’s World Halal Week has the theme Beyond the Economy, reflecting Malaysia's continuing efforts to identify the untapped potential of the halal industry beyond trade and commercial values. 

Interested?

Read the Suroor Asia blog posts on highlights for the World Halal Conference and on MIHAS 2016

Get updates on Facebook

Ministry of Commerce & Industry, KSA shuts down detergent counterfeiting operation

Source: MCI.

The Ministry of Commerce & Industry (MCI) in KSA has confiscated some 150,000 items in an unlicensed plant at a farm east of Medina. Labourers were making detergents to be sold locally as being from Turkey. The site was shut down and those responsible are being investigated.

Inspectors visited the farm after a tip-off and found large quantities of raw materials that could be used to prepare different types of soaps, washing-up liquid and automotive windshield cleaners, as well as containers which identified the country of origin as Turkey. The site also failed hygiene, safety, storage and packaging regulations.

The MCI has been conducting inspection campaigns on factories, plants and warehouses in various parts of KSA to verify their authenticity and to ensure the absence of fraud. The MCI further calls on all consumers to report complaints and observations via the toll free hotline number 1900.

MCI uncovers second warehouse making contaminated mattresses near Jeddah

Source: MCI.

The Ministry of Commerce and Industry (MCI) in KSA has seized mattresses made with contaminated sponge from a warehouse south of Jeddah and will take legal procedures against the perpetrators.

Contaminated sponge from waste containers and the municipal dump was collected and used to stuff mattresses bearing fake trademarks such as Sleep Jowhar, Star Dream and Super Mark. MCI had earlier confiscated 10 thousand pillows and mattresses stuffed with contaminated sponge in a warehouse south of Jeddah with similar operations.

The second round of seizures included 500 mattresses ready for sale, 350 used ones, fabric, and sewing machinery. MCI inspectors have also impounded an Isuzu truck loaded with 300 mattresses for distribution locally.

The discovery came about as part of regular MCI inspections on warehouses and commercial institutions. MCI invites consumers to call in to their toll-free hotline 1900 with observations, or send a Commercial Notification.

Ministry of Commerce and Industry in Saudi Arabia confiscates fake tea packaging

Source: MCI.

KSA's Ministry of Commerce and Industry (MCI) inspectors have caught illegal labourers storing counterfeit tea packets for a famous brand of tea in Al Manakh quarter, south of Riyadh.

The inspectors seized about 4,000 counterfeit empty red tea packets bearing Al Rabe`a Tea branding, in addition to machines used to print and fold the packaging. The packaging and equipment were confiscated, while those responsible have been summoned by the MCI for investigations.

MCI has implemented random inspection campaigns targeting warehouses and rest houses, and is committed to prevent fraud and practices that put the health and safety of consumers at risk.

The public may report complaints and suspicious activity through the toll free number 1900 in KSA, or through the application of a commercial notification.

ISSF 2015 sets out resolutions for strengthening the Islamic finance industry

The International Shariah Research Academy for Islamic Finance (ISRA) has organised its 10th annual International Shariah Scholars Forum (ISSF 2015) in collaboration with the Islamic Research and Training Institute (IRTI) of the Islamic Development Bank in Jeddah.

The main theme ISSF 2015, held in Malaysia, was Strengthening the Global Connectivity of the Islamic Finance Industry: Reality and Prospects. At the end of the event, Sheikh Dr al-Ayyashi Feddad, Senior Researcher representing IRTI, read out the resolutions of this year’s forum:

First, for ISSF

• ISSF 2015 proposes to set up a committee to evaluate the past ten years of ISSF, and to put forward a plan for the next ten years. 
• Coordination with relevant parties, including individuals and organisations, to further strengthen the ISSF. 
• Open more collaboration with other parties in organising the ISSF. 

Second: Regarding differing fatwas and their effect on strengthening the global connectivity of the Islamic finance industry

• Differing views and fatwas are positive phenomena if they are based on the principles of ijtihad in the shari'ah. 
• It is advisable to work on closing the gaps in fatwas in order to prevent contradictions in practical application and also to harmonise between the fatwas and the financial products. 
• Efforts are needed to further develop and strengthen shari'ah governance in the Islamic finance industry. 
• ISSF 2015 also recommends the establishment of a supreme council by supporting organisations such as the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI), IFSB, IDB and CIBAFI, together with the International Fiqh Academy and IDB. This council would have its own shari'ah board and other technical boards. Its resolutions would be endorsed by the International Fiqh Academy in its position as the highest shari'ah reference for Muslim countries. 

Third: Regarding research institutes on Islamic economics and Islamic finance
effort should be made to cooperate on major projects and to plan research for the next ten years by identifying gaps that need to be filled and prioritising them.

• There is a need for cooperation in appraisal studies and in developing mechanisms to rate research on Islamic economics and finance. 
• The forum calls for the establishment of new research institutions for Islamic economics to pursue objectives and study areas that the existing research institutions are not dealing with in order to bring added value to the academic research. 
• Mechanisms should be established for competition among research institutions within a cooperative framework with the objective of improving their end products. 

Fourth: Regarding roducts

• Innovative solutions should be found for the Islamic finance industry, especially in the area of sukuk and working towards partnership-based financial instruments. 
• The forum calls for the study of successful international models of financing that are close to Islamic financing based on partnership or any interest-free financing modes. 
• Special attention should be given to Islamic sukuk as they are the most effective financial instruments in realising global connectivity at the supervisory level and in the capital markets. 
• Special attention should also be given to the products of the charitable sectors, particularly the zakah and waqf institutions. It is recommended that next year’s Forum be about establishing an international institution to coordinate between zakah organisations. 
• Work should be done on binding terms of reference for the members of shari'ah boards of Islamic financial institutions. 
• A working committee should be formed to lay down the principles of fatwa to ensure its stability and its linkage to other relevant areas such as legal, accounting and risk management. 
• Work should be done on a mechanism to coordinate between shari'ah boards in order to establish rules regarding governance of the boards and conflict of interest. The ISSF 2015 invites ISRA, IRTI, AAOIFI, IFSB and CIBAFI to propose a mechanism for its implementation.

Interested?

Read the Suroor Asia blog post about the ISRA-Thomson Reuters Islamic Commercial Law Report 2016, which was launched during the event

Neo Group to acquire 55% stake In parent company of DoDo seafood products

Source: Neo Group. From left: Neo Kah Kiat, Founder, Chairman and CEO of Neo Group, Lim Boon Chay, Chairman and Managing Director of Thong Siek Food Industry.

Neo Group (梁苑集团有限公司), which has catering subsidiaries including the halal Orange Clove, restaurant chains, and a gift subsidiary, has made its first major acquisition since its listing in line with the Group’s value proposition as a fully-integrated catering solutions provider. The acquisition of Thong Siek (TS) Holdings, whose Dodo subsidiary produces halal food products, is synergistic with its core businesses, providing a vertical integration process enabling the Group to expand into manufacturing and reap economies of scale, Neo Group said.

The S$7.35 million proposed acquisition is of a 55% equity stake in TS Holdings, a major manufacturer, distributor and retailer of surimi-based seafood products such as the DoDo brand of fish balls, crabsticks and other surimi-based products through two production facilities operating in Senoko, Singapore, and Johor Bahru, Malaysia. TS Holdings' products are sold in Singapore and Malaysia, and distributed across 22 countries worldwide including in Asia Pacific and the Middle East. 

The acquisition is part of the Group’s transformation to offer turnkey catering solutions with its comprehensive suite of brands and service offerings within three business pillars – food catering, food retail as well as food and catering supplies – to capture various market segments. Neo Kah Kiat (梁佳吉), Founder, Chairman and CEO of Neo Group, said: “This upstream acquisition is in line with our value proposition as a fully-integrated catering solutions provider, enhancing our supply chain and providing a vertical integration process that will expand our manufacturing business."

“TS Group’s businesses in the manufacture and sale of seafood-based products are complementary to our businesses and offer a good value proposition. We will be able to leverage on TS Group’s expertise in food manufacturing to streamline and further strengthen our new central kitchen’s operations for higher quality consistency while reaping economies of scale and synergies with our core businesses following the integration and streamlining of processes. 

“The acquisition will also allow the Group to create new business-to-consumers income streams, expand our customer base and market segments, while giving us access to a large distribution network across 22 countries globally.” 

Following the acquisition, TS Holdings  intends to deepen its existing footprint in Singapore and Malaysia by intensifying marketing efforts and reaching out to the Malay community through its halal product lines. It also intends to expand into new markets such as Hong Kong. TS Holdings also seeks to revitalise the DoDo brand of frozen foods and introduce a premium line of products to cultivate a new customer segment reaching out to hotels, restaurants and cafes. 

Neo will assume the role of Acting CEO of TS Holdings and Xenn Lim, General Manager, Corporate Services of TS Group, will become Deputy CEO of TSH. 

Halal World Food looks at future of halal food industry at Gulfood 2015

Source: Gulfood.

Dubai, a primary global trading hub for the international halal food industry and a strategic enabler in the emirate’s long-term vision to become the global Islamic economy capital, is hosting over a thousand halal food companies at Halal World Food presented by the 20th Gulfood, the world’s biggest annual food and hospitality trade show, taking place from 8 to 12 February 2015 at Dubai World Trade Centre (DWTC).

With more than 80,000 international food industry professionals due to attend the largest edition of Gulfood to date, Halal World Food is arguably the world'’s biggest annual halal food sourcing trade show. The specialist, show-within-a-show will cover all halal-related aspects of global food service, retail and hospitality sectors to highlight the depth and variety of international halal products, from energy drinks, vegan and vegetarian foods to meat and poultry, canned goods, gourmet and fine foods.

“The global halal food market now accounts for a fifth of the world’'s food trade (Datamonitor, 2014), and as the primary trading hub for halal food in the MENA region, Dubai has both the ambition and world-class infrastructure to become a worldwide halal centre,” said Trixie LohMirmand, Senior Vice President, Exhibitions & Events Management, DWTC. 

"“Gulfood is one of the most important international platforms for the global food trade and the strategic enhancement of our Halal World Food initiative will ensure the show continues to play a leading role in the growth of the halal food sector, a key enabler in realising Dubai’'s vision to become the global Islamic Economy capital," she said.”

With GCC halal food imports projected to rise from US$ 25.8 billion in 2010 to US$ 53.1 billion by 2020 (Economist Intelligence Unit), the UAE is progressing a series of initiatives designed to propel its position at the forefront of the global halal food industry. 

In 2012, the UAE was granted a three-year chairmanship of the first technical committee for halal food standards, underlining the global significance of the country as an important market and its ascendancy as a halal hub in the region. Anticipation runs high as the Emirates Authority for Standardisation and Metrology (ESMA) and Dubai Municipality work to establish unified halal standards that will, in the future, be introduced to all Islamic countries. In addition, government officials announced in 2014 that Dubai has dedicated 6.7 million square metres of land in Dubai Industrial City for a dedicated ‘Halal Cluster’ reserved for manufacturing and logistics companies dealing in halal products.

The inaugural Halal Investment Conference on February 10 as part of the three-day Gulfood Leaders Events programme will cover the implications of new developments in the halal industry. It brings together key halal sector players and senior government decision makers to discuss commercial and business opportunities. Questions to be discussed include

• The role of 'halal' in Dubai’'s capital of Islamic Economy vision, Business opportunities in the global halal marketplace, 
• Halal regulations and governance in the GCC, 
• The impact of any new halal regulations on the global food industry, 
• Positioning of halal products in mainstream markets, 
• Successful halal marketing, and 
• The meaningful transformation of the halal brand in non-Islamic countries.

Representatives from Al Ghurair Investments, Al Dahra Agriculture, Zilzar Technology, Emirates Authority for Standardisation and Metrology (ESMA), Dubai Municipality, Mondçlez International, Danone, RAQAM Consultancy JLT, Just Falafel and GMA Middle East will speak at the conference.

"“Being an all-halal food focused manufacturer, Dubai, the main hub for the halal food industry, is one of our primary and biggest markets. Through our participation at Gulfood, and through Tilly Sabco'’s sponsorship of the conference, we hope to expand our presence in the region and to highlight the key differences in the definition of ‘'halal’', the most widely abused term in the world. 

"Because no unified halal standard exists in the global market, even those products that are labeled 'halal' might not necessarily be fit for Muslim consumption. We believe that Dubai, with its vision to become the capital of the Islamic Economy and the introduction of its halal scheme – a set of global unified standards – will level the playing field for all halal manufactures and restore consumer confidence,”" said Idris Mohammed, Director, Tilly-Sabco Bretagne – the French leaders in chicken production and slaughtering, and the title sponsor of the Halal Investment Conference.

With the vast majority of the world’'s major halal-certified beef and mutton producers and exporters represented at Halal World Food and Gulfood 2015, Uruguay XXI – the South American country’'s Institute for Promotion of Investments and Exports of Goods and Services, –revealed food and beverage exports to the Middle East have grown 77% since 2010.

“Uruguay is currently the world’s sixth largest exporter of beef and the Middle East is a key export territory for Uruguayan meat exporters,” said a Uruguay XXI spokesperson. “Food and beverage exports to the Middle East accounted for 95% of total Uruguayan exports to the region last year. The halal sector is an increasingly vital revenue source for every global cattle exporter and Uruguay companies – which already export halal-certified beef to countries including Russia, China, Canada, Germany, United States, Italy and Kuwait – are in a fantastic position to leverage increased market share across the Middle East.”

Jebel Ali Free Zone (Jafza), the flagship free zone business of Dubai, will be highlighting its key offerings as the trade and logistics hub for the food and beverage sector at Gulfood. 

Jafza’s strategic advantage is its location between Jebel Ali Port and Al Maktoum International Airport, facilitating speed-to-market. It has seen a significant increase in the demand for food and beverages facilities at the Free Zone in 2014. The upswing is largely driven by high quality custom-built storage and manufacturing infrastructure solutions the Free Zone offers, including the right logistics links that the industry needs. The sector is estimated to have generated trade worth AED15.50 billion at Jafza in 2013, and the Free Zone expects to double the trade volume in the next five years.

Jafza will also be using the show as a springboard to highlight its plan to build a state-of-the-art Halal Zone in the Free Zone to serve international markets and another Halal Zone in its sister company TechnoPark to serve the local and GCC markets.

The Malaysia External Trade Development Corporation (MATRADE) is leading a delegation of 81 Malaysian exhibitors to Gulfood 2015. MATRADE’s 11th participation in Gulfood will feature frozen food items, wide range of palm oil products, confectioneries, sauces and paste, ready-to-eat items, beverages, health food, pasta and food ingredients.

According to MATRADE, Gulfood will give its delegates good exposure to the demands from the UAE, which is the gateway to the Gulf region. MATRADE also shared that Malaysia’s exports of processed food to UAE have increased from RM299.7 million in January to November 2013 to RM469.4 million for the same period in 2014 . It is expected that the exports of Malaysia’s processed food to UAE will continue to grow in the coming year as Malaysian food products have widely accepted assurance standards, quality and reliable halal standards.

Six Chilean businesses will present their halal products, including energy drinks, fruit juice, bottled rainwater, extra virgin olive oil, functional foods from Chilean berries such as maqui (Aristotelia chilensis, with a taste similar to blueberries),
and murta (Ugni molinae, which can be used to make jam), Omega 3 for human or animal consumption, chocolates and other gourmet foods, as well as Merkén (smoked Chilean aji chilli peppers) and other condiments - all processed and produced under halal certification.

"Practically all of the national halal-certified businesses are exporting, or are looking towards exporting shortly to markets with Muslim populations. Some of these businesses have exported to countries with majority Muslim population in the North of Africa (Morocco, Egypt), Middle East (United Arab Emirates, Saudi Arabia, and Jordan), Southeast Asia (Indonesia and Malaysia) as well as for the consumption of minority populations in Europe and the US. It is estimated that in 2013, they exported close to US$11 million," commented Lorena Galla, Chilean Commercial Assistant in Dubai.

Part of the Dubai Food Festival, a city-wide culinary celebration running throughout February, the second annual Halal World Food at Gulfood 2015 plays a key part to further the global halal food market, which is expected to reach US$1.6 trillion by 2018. Global opportunities across for the halal market are predicted to reach US$10 trillion by 2030 (Global Futures and Foresights Study). 

Read our blog post about Gulfood here.
View the list of Chilean business present at the fair here.
Register for the conference here. Download the free mobile app here.

Malaysia's Halal Outreach Program to touch down in Sarawak

The Halal Industry Development Corporation (HDC), the government agency responsible for the overall development of the halal industry in Malaysia, is launching the Halal Outreach Programme (HOPE) in Sarawak, Malaysia together with the Ministry of International Trade and Industry (MITI) on 18 August.

Source: Halal Outreach Programme Sarawak website.

The two-day outreach includes halal training programmes, mentoring and business matching activities, panels, briefings by government agencies, and an industry clinic. According to the HOPE microsite, the programme aims to raise awareness and increase participation among halal local entrepreneurs in the halal industry. 

Participants will gain knowledge on marketing halal products and services internationally, while entrepreneurs will be exposed to business opportunities and receive tips on how to market their products. Entrepreneurs who have been successful in their respective fields will be sharing their experiences with event participants.

Malaysia's SIDC has trained 400 professionals for the Islamic capital market to date

Source: SIDC. ICMGTS graduates posing with VIP guests at the tenth ICMGTS graduation ceremony. VIP guests (seated, from left in fourth position): Azman Hisham Che Doi, Chief Executive Officer, SIDC, Zainal Izlan, Executive Director, Islamic Capital Market, SC, and Sarimah Ramthandin, Director, Training and Investor Education Division, SIDC.

The Securities Industry Development Corporation (SIDC) has passed the milestone of producing 400 entry-level professionals for the Islamic capital market (ICM) sector with the graduation of 38 Islamic Capital Market Graduate Training Scheme (ICMGTS) participants from the programme’s tenth intake in Kuala Lumpur recently.

ICMGTS is a bi-annual Securities Commission Malaysia (SC) training programme conducted by SIDC to develop young talent for careers in the ICM. The eight-week programme aims to provide participants with a technical understanding of the ICM and work-relevant soft skills. It is endorsed by an industry task force consisting of the SC, Bursa Malaysia, the Federation of Investment Managers Malaysia (FIMM), Association of Stockbroking Companies Malaysia (ASCM), Malaysian Investment Banking Association (MIBA) and Malaysian Association of Asset Managers (MAAM).

SIDC Chief Executive Officer Azman Hisham Che Doi, who presented awards at the graduation ceremony to recognise the best performers, said, “ICMGTS is one of SIDC’s many successful talent development programmes to support the growth of the Malaysian capital market industry. To date, approximately 85% of the ICMGTS alumni have been accepted as part of the industry’s workforce, indicating the relevance and importance of the programme.
 
“SIDC programmes aim to enhance the competencies of market professionals, who play an important role in promoting competitiveness in the Malaysian capital market as well as creating investor confidence. Recognising this, SIDC works closely with all stakeholders including the regulator, exchanges, intermediaries, industry players and investors to provide value proposition in the programmes we offer.”

Applications are now open for the eleventh ICMGTS intake, commencing August 2014. All Malaysians aged 30 years and below with a recognised second class upper degree or equivalent in related disciplines are eligible to apply. Successful candidates will receive a monthly allowance of RM2,000 during the training period. The programme also offers participants the opportunity to be interviewed by potential employers as well as sit for the SC’s licensing examinations to qualify as licensed intermediaries.

Detailed application information is available at www.sidc.com.my.

Malaysia's HDC and Kumamoto City in Japan agree to collaborate on halal initiatives

The Halal Industry Development Corporation (HDC) of Malaysia has signed an agreement with Kumamoto City of Japan and A-Commerce on 9 April at the World Halal Conference 2014 to pursue collaborations in the interest of developing the halal industry in both countries. Japan is Malaysia's fifth-highest trading partner in the halal industry, bringing in an export value of RM1.9 billion in 2013.  
 
Under the agreement all three parties are regarded as strategic partners where awareness of the concept of 'halal', halal components and the halal brand will be introduced to Japanese markets through HDC.

The agreement also aims to explore opportunities to develop, support and enrich the development of the human capital industry that will be of benefit to both countries.

A-Commerce is a professional business advisor to various local government bodies in Japan and renders support to the development of the halal industry in Japan.