Early days for halal marketing

Source: WHS website.

There can be no one size fits all approach to halal marketing when different Muslims have different attitudes to halal, it was mooted at the fifth session of the Academics Forum, World Halal Summit (WHS 2015) held in Malaysia. 

Describing halal as a phenomenon, moderator Dr Jonathan (Bilal) AJ Wilson from the University of Greenwich said, “There is guidance from the Quran, the hadith and our forefathers. But in this age of social media and hyperinteraction, things are changing at a speed much faster than before. We have to take that leap forward. When you think of halal, it’s now more than just about meat – it’s a global phenomenon; because the concept is applied to things beyond food.” 

Liow Ren Jan, Founder and CEO for Malaysia's AYS, said that simply marketing halal products to Muslims do not guarantee sales. “I worked with the no. 1 halal brand in Malaysia, and thought it could be transposed to a neighbouring Muslim country, Indonesia,” recalled Liow. “We brought the product there and thought it would be an overnight success – it wasn’t. We missed out because even though it’s a halal product in this specific market, we didn’t apply the fundamental marketing mix.”

Liow pointed out that there are many categories of Muslims. "Do you want to appeal to the conservative Muslim or the mass Muslim? If it is the mass, then apply the basic marketing principles,” he advised.

More SMEs in halal industry should embrace Islamic finance

Source: WHS website.

While Islamic finance and the halal industry are clearly complementary, both being based on shari'ah compliance, they diverge more often than converge, said panellists at the Breaking Down the Silos – Halal Food and Islamic Finance plenary discussion, which is a part of the World Halal Summit 2015 Business Forum.

Moderator Rushdi Siddiqui, CEO of Zilzar Technology said, “Halal food makes up 20% of the world’s food production, and yet so (few) of the halal industry players actually use Islamic financing to fund their businesses.”

Badlisyah Abdul Ghani, CEO of CIMB Islamic Bank said that only 5% of halal industry players actually use some form of Islamic financing. He also pointed out that convergence is the best way to ensure the sustainability of each sector in the long term.

As the halal food industry is currently highly fragmented and primarily dominated by SMEs in Muslim countries, more niche Islamic banking facilities are needed. Rushdi suggested the creation of an Islamic bank catered exclusively for SMEs as a way forward to meeting the needs of SMEs in Muslim countries.

It was also pointed out in the session that consumers often misunderstand the guiding philosophy of a halal product. It is about creating an ethical value chain for the product, right from its inception to its place on a store shelf, and that includes the manner in which funds were procured to finance and sell the product.

There is much to be done as well to educate SMEs on the advantages of utilising available Islamic financing facilities. In Malaysia for example incentives such as a 100% stamp duty exemption are available to users of Islamic financing services.

posted from Bloggeroid

Animal welfare comes to the fore at Certifiers Forum

The Organisation of Islamic Cooperation (OIC) countries should take a lead role in addressing animal welfare issues relating to halal standards, it was suggested in one of the discussions at the Certifiers Forum during the World Halal Summit (WHS) 2015 on 1 April.

The suggestion was put forward in response to recent reports on animal cruelty in halal slaughterhouses which have drawn criticism from both animal rights groups and the public.

“Muslim countries must set an example on animal handling as according to the tenets in Islam. The OIC should do a global PR campaign to highlight that Islam requires animal welfare to start at farming,” said Halal Food Authority UK chief executive Saqib Mohammed during a panel discussion at the WHS.

In closing remarks for the event Euro Quality Lambs UK Executive Director Rizvan Khalid pointed that while it may be challenging to reach a consensus agreement to reach a unified Halal standard, he suggested that a line be clearly drawn to emphasise on what is deemed haram.

“Accreditation bodies could distinguish properly on what is halal and haram but with a higher manifestation on halal according to sunnah, like using a sharp knife to slaughter, treat animal with kindness, not allowing the animals to watch each other being slaughtered and so on,” he said.

Theological director SANHA, South Africa Moulana Navlakhi highlighted that is one of current dilemmas is that what is halal in Malaysia might be only makruh (disapproved) in Indonesia but haram in Brunei due to different agreements on animal stunning.

Under the halal code, animals are to be raised and treated well. They should not see the knife or even witness the death of other animal before they are slaughtered. The animals are also supposed to be killed quickly with a single sweep of a sharp knife through the jugular vein.

The method of killing animal is often attacked by animal rights activists as barbaric. Muslims justify that the slaughtering method as advocated by the religion is designed to reduce the pain and distress of the animal. Experts say that the animal killed in this way does not suffer if the cut is made quickly and cleanly enough, because it loses consciousness before the brain can perceive any pain.

Source: WHS website.

Muslims are only allowed to eat meat that has been killed according to shari'ah law.

A member of the audience from Australia added during the Certifiers Forum that the main challenge for the country is also to minimise concern raised by animal rights groups by conducting education and awareness campaigns. Australian companies export halal goods to countries in the Middle East, Indonesia, Malaysia, Brunei, and Singapore.

posted from Bloggeroid

Push to harmonise halal standards in ASEAN

The Department of Standards Malaysia is initiating the establishment of a Working Group on Halal Products and Services with its counterparts in Indonesia and Thailand to harmonise halal standards within the ASEAN region. 

Source: WHS website.

The taskforce will facilitate a platform for discussion amongst halal authorities with the aim of providing a framework to support economic cooperation and integration within member countries.

While acknowledging existing issues among halal authorities to consensually agree on a unified standard, Standards Malaysia Director General Datuk Fadilah Baharin said that member countries must start acknowledging the importance of a common regional halal standard in preparation for the establishment of a single international standardisation body.

A new landscape within the halal industry is expected to take place should a uniform halal standard using ISO methodology be successfully implemented by Dubai-led Standards and Metrology Institute for Islamic Countries, SMIIC. SMIIC is an affiliate body of the Organisation of Islamic Cooperation (OIC) established in 2010 with the main objectives to prepare an OIC/SMIIC Halal standard to achieve uniformity in metrology, laboratory, testing and standardisation. A total of 31 member states out of the 56 OIC Islamic states are currently members, with Bosnia-Herzegovina and Malaysia being the latest to join since November last year.

“Differences (in opinion) can have detrimental effects on competition and international trade. With a view to harmonise conformity assessment procedures, member countries shall play a full part within the limits of their resources and as a basis for their technical regulations,” she said during the Certifiers Forum at the World Halal Summit (WHS) 2015.

The main challenge faced by the global halal industry is the lack of one unified standard on what exactly is halal. There are between 500 and 3,000 certification agencies around the world, of which 80% are from non-Muslim countries. The lack of a unified standard has also raised production costs for exporting companies, as they must follow different national regulatory standards.

Fadilah said a unified standard among ASEAN countries could address these challenges and help minimise the export cost for halal products.

“Standards, technical regulations and procedures for determining conformity are essential to ensure consumer safety, increase transparency of product information and compatibility of products,” she said.

“A unified halal system will result in a mutual recognition of certificates through a recognised accreditation, reassure customer’s trust and diminish technical barriers to trade with mutual recognition,” said Farah Al Zarooni, Director of Accreditation Department, ESMA in Dubai.

“The uniformity of halal standards developed by SMIIC, which is an intergovernmental institution, will pave the way for better economic relations within the industry. We want to promote one standard and one test that are recognised throughout the globe.”

Further insights about the complexities of halal standardisation were shared during other sessions at the WHS. Ironically, 85% of products and raw materials produced today come from non-Muslim countries where halal accreditation processes are actually more advanced than that of the Muslim countries.

“In most cases, halal integrity within the supply chain cannot be verified throughout the entire system,” said Salih Yuksel, SMIIC AC Chair and Acting Head, System Accreditation Department, Turkish Accreditation Agency (TURKAK) during the Certifiers Forum. “There is certainly a demand and dire need to address this weak point within the halal certification bodies.”

Among the common oversights by halal certification bodies are the lack of transparency and competency. The fact that there are more than a thousand halal accreditation bodies worldwide that are not following any specific halal procedure is a telling sign, it was mentioned.

Acknowledging that the discrepancies in Islamic knowledge and practices are most likely the reasons for the impartiality, Salih said the industry must remain focused in moving forward regardless of the differences.

At the fourth session of the Academics Forum at the WHS Dr Sharifudin Mhd Shaarani, Dean, School of Food Science & Nutrition, University of Malaysia Sabah, noted that halal food science is akin to forensics. “In this era, the development of alternative food ingredients and Genetically-Modified Organisms (GMO) make the area very complex,” said Dr Sharifudin. 

"Another short- term remedy we need is a halal quality assurance that ensures that every time we produce a halal product, it is truly halal. To invest time and money into doing this is relatively less expensive and (will) bring us forward (faster)."

Associate Professor Dzulkifly Mat Hashim, Former Head of Halal Services Laboratory, Halal Products Research Institute, UPM Malaysia, said practicality had to be part of the equation. “We need academicians, players of the industry and the regulators to work together to solve real issues that are presented, for example, the permitted level of alcohol in a food or ingredient,” he said.

Southeast Asia is home to more than 250 million halal consumers, and countries like Malaysia, Indonesia and Singapore have had regulations to control the import of halal-certified products for years.
With more than 60% of its population being Muslims, Malaysia exported a total of RM10 billion worth of halal products last year.

Amir Sakic, Bosnia and Herzegovina’s Director of Halal Quality Certification Agency pointed out that the main goal of halal standard is to remove barriers of international trade, provide a better understanding of halal and minimise costs of doing business.

“European countries are also trying to harmonise standards for all its 27 member countries,” he said.

In closing remarks for the event Grand Mufti Emeritus of Bosnia and Herzegovina, Dr Mustafa Ceric said the focus should move from labelling to making halal products more attractive. “I always wonder what makes haram sweet. Turn that around and produce products in halal that are sweet, nice and attractive that will make people stop looking at the temptations in haram,” he said.

“We need to move away in trying to explain halal in religious terms but (to stress on) the fact that halal is good, healthy and clean. Do people buy Chanel because it is French? No. People buy Chanel because it is good,” he said to applause.

“Of course Halal is religion. We all know that. You don’t need to attend a three-day conference to tell you that. But too much emphasis on it (from a religious perspective) will be counterproductive. Don’t make simple things complicated or complicate simple things,” Dr Mustafa concluded.

The world Muslim population is expected to account for 30% of the world’s population by 2025. The global market value for trade in halal food is estimated at US$547 billion a year and analysts predicted the value to reach US$10 trillion by 2030.
Among the driving factors include a steady growth of Muslim population worldwide; rising incomes in primary markets for halal products, and increasing demand for safe, high quality halal food. Currently, the global halal product market is estimated at US$2.3 trillion, excluding Islamic finance.

The inaugural WHS in Kuala Lumpur builds on the foundation established by the Malaysian government’s decades-long commitment to develop the halal industry to its full potential, not just among the estimated 1.8 billion Muslims worldwide currently but also among the world’s non-Muslims.

The WHS 2015 is designed as a platform to provide opportunities for halal-industry stakeholders to collaborate, network, discuss and present viable ideas for the expansion and promotion of the industry, as well as to overcome the challenges it faces. The event also seeks to play the role of catalyst to introduce new structures and regulatory frameworks to increase confidence amongst consumers, industry players and investors for the halal economy.

The event concept integrates the halal trade fair MIHAS (Malaysia International Halal Showcase), and six other conferences and forums: the 8th World Halal Conference (WHC), the 6th JAKIM International Halal Certification Bodies Convention, the Certifiers Forum, Scholars Forum, Academics Forum and the Business Forum.

The star component of WHS, MIHAS, has hosted approximately 170,000 visitors from 70 nations, 4,000 companies from 48 countries, and generated more than US$3 billion in sales over the past 11 years.

Apart from the obvious economic potential, Malaysia also views the promotion of the global halal economy as an important component of the Global Movement of Moderates, an idea articulated by the Prime Minister of Malaysia, YAB Dato’ Seri Najib Tun Haji Abdul Razak, with the main goal of applying perspectives and frameworks of moderation to realise world peace and harmony.

A collaborative effort under the patronage of the Ministry of International Trade and Industry (MITI), the WHS 2015 is organised with the coordination of the Malaysia External Trade Development Corporation (MATRADE), Halal Industry Development Corporation (HDC) and Department of Islamic Development Malaysia (JAKIM).

posted from Bloggeroid

Organisers share more details of World Halal Summit 2015

Malaysia's World Halal Summit (WHS) is set to be the largest halal event of its kind in the ASEAN region, say organisers of the 30 March to 4 April event.
The WHS features a trade fair and six subject-focused forums hosted by the Ministry of International Trade and Industry Malaysia (MITI) and jointly organised by the Malaysia External Trade Development Corporation (MATRADE), Department of Islamic Development Malaysia (JAKIM), and Halal Industry Development Corporation (HDC). 

Source: World Halal Summit. YB Dato’ Sri Mustapa Mohamed, Minister of International Trade and Industry, speaking at the World Halal Summit 2015 press conference on March 10.

The halal component of the global economy is now estimated at US$2.3 trillion, with the the halal food sector alone accounting for almost US$700 billion of the total, serving a worldwide Muslim population of about 1.8 billion, organisers said.

The largest, world-renowned integrated Halal trade fair, Malaysia International Halal Showcase (MIHAS) by MATRADE, will be the highlight of WHS this year. MIHAS, in its 12th edition, has now become the go-to halal expo. 

“This year, we have allocated 640 booths for local and international businesses who are seeking to reach out to the right target audience for their Halal products and services. As of today, a total of 534 local and international companies have taken up our booths – with 55% local exhibitors and 45% international businesses from 20 countries...Representatives from Organisation of Islamic Conference (OIC) countries are from Bangladesh Indonesia, Iran, Morocco, Palestine, Saudi Arabia, Tunisia and Turkey," said Datuk Dr Wong Lai Sum, Chief Executive Officer of MATRADE, noting that  12 countries and territories are non-OIC members: Belgium, mainland China, France, Japan, Netherlands, Poland, Singapore, South Korea, Taiwan, Thailand, and the US.

“Last year, MIHAS generated total sales of US$291.4 million of which sales from the exhibition alone was recorded at US$147.5 million, and US$143.9 million from business matching. In tandem with increasing interest in the global Islamic economy sectors, we expect sales from MIHAS 2015 to multiply.” 

In addition to MIHAS, the World Halal Summit brings together some of the key components of the halal ecosystem through six forums, the World Halal Conference (WHC), the 6th JAKIM International Halal Certification Bodies Convention, the Certifiers Forum, Scholars Forum, Academics Forum, and the Business Forum.

Said HDC’s Chief Executive Officer, Dato’ Seri Jamil Bidin of the WHC theme, Halal Economy – A Profitable Convergence: “The conference’s theme reflects the need for a renewed global effort amongst halal stakeholders to further strengthen the integration of industries within the halal ecosystem towards the realisation of a holistic halal economy. More emphasis must be placed on areas that include research and development, innovation, human capital development, as well as Islamic banking and finance to develop a seamless point-to-point halal supply chain. In this instance, Islamic asset-based banking instruments must support the financing of the halal industry in the effort to realise true convergence of shari'ah principles throughout the industry.”

Read our blog post about World Halal Summit 2015 here.

World Halal Summit 2015 to focus on energising the halal ecosystem

The World Halal Summit (WHS), a central platform for marketing and promoting halal goods and services covering various different areas of the supply chain from raw materials to ingredients to ready products, will run from 30 March to 4 April at KLCC in Kuala Lumpur, Malaysia. 

The 2015 theme, Energising the Halal Ecosystem, has been chosen to reflect the world’s steadfast mission in exploring and identifying the untapped potential when the best minds are brought together to exchange and share halal-related knowledge and findings, connect and explore common terms, and unite halal certification bodies in accelerating the development of the halal industry and market globally. 

The event has been designed to enable business-matching and information sharing, with six subject-focused conferences targeted to gather the world’s top change agents in halal-related sectors under one roof:

Scholars Forum

The Scholars Forum, 1 to 3 April, is a platform for scholars and community leaders to discuss the halal market and the wider Islamic economy. 

Certifiers Forum

The Certifiers Forum from 1 to 3 April is a meeting place for independent halal certification bodies and standards development agencies to explore new avenues towards collaborative common ground. 

Academics Forum

To be held 1 to 3 April, the Academics Forum focuses on education, training programmes and modules, the roles of academia, as well as other disciplines relevant to the global halal industry. 

Business Forum

The significance of the Islamic economy is increasingly being highlighted. This Forum, from 1 to 3 April, aims to explore the way forward. According to the organisers, 2013 global figures for the following market segments are substantial:

• Halal food at US$1.3 trillion
• Modest fashion at US$266 billion
• Halal-friendly travel at US$140 billion, excluding Hajj and umrah
• Media and recreation at US$185 billion
• Pharmaceuticals and cosmetics at US$72 billion
• Islamic finance at US$1.66 trillion.

Source: WHS website.

6th JAKIM International Halal Certification Bodies Convention

This closed-door convention on 31 March is hosted by the Department of Islamic Development Malaysia (JAKIM) will gather all JAKIM-recognised halal certification bodies from around the world to strengthen cordial relationship and exchange opinions on halal certification issues based on the Malaysian Halal Standard.

World Halal Conference

World Halal Conference (WHC) 2015, 1 to 2 April, is engineered towards the creation of new technologies and business opportunities for the halal economy. The two-day conference shares advancements in halal research and their applications in business. 

In addition to the conferences, WHS also features MIHAS, an annual trade fair held every second quarter of the year. The Malaysia International Halal Showcase or MIHAS is an annual trade fair conceptualised to facilitate the sourcing and selling of quality halal products and services globally. MIHAS 2014 saw 463 exhibitors from 30 countries and attracted 18,223 visitors from 65 countries. More than RM200 million of immediate sales is generated annually. MIHAS 2015 will run from 1 to 4 April 2015 at KLCC. 

WHS is hosted by the Ministry of International Trade and Industry (MITI) and is organised by the Malaysia External Trade Development Corporation (Matrade), the Halal Industry Development Corporation (HDC) and JAKIM with International Islamic University of Malaysia (IIUM) and Universiti Teknologi Mara (UiTM) as strategic partners. The event is managed by Shapers Malaysia.