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
Japans 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: Worlds 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)

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

Its a collaborative effort among the key

stakeholders

PRIME MINISTERS DEPARTMENT

Investment
Promotion
FOCAL POINT
Export Promotion

Certification &
Enforcement

Standards
Development

SME Development

HIMP 2006 - 2020: Target and Achievement

Macro-economic KPIs (2020)

Achievements
(2015)

The development framework

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

Halal export revenue

RM42 billion

= RM19 billion
Forecasted

Services
logistics,
Tourism,
Healthcare

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

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

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

Success Stories: HALMAS Status Halal Park

Parks
Key Halal Parks

Investment (2010 2015)

RM million

Techpark @ Enstek

4,312

Selangor Halal Hub

1,805

Tanjung Manis Halal Hub

1,802

POIC Tanjung Langsat

1,466

PKFZ Halal Flagship Zone

575

Penang International Halal

Park

484

Melaka Halal Park

119

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

18

Governance Structure

DEPUTY PRIME MINISTER

Tier 1
JAWATANKUASA KHAS KABINET
PEMBANGUNAN & PENGURUSAN
INDUSTRI HALAL MALAYSIA

Tier 2

MINISTER IN PRIME MINISTERS 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
22

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
24

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

26

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

Vietnam

Singapore

OIC @ MIHAS 2016

TOTAL

53

Iran

16

Turkey

16

Palestine

Pakistan

Bangladesh

Saudi Arabia

Tunisia

29

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

35

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: webmiti@miti.gov.my | Website: www.miti.gov.my

36