Project Brief

PERBADANAN INDUSTRI HALAL BERHAD[807439-M] SUITE 20.01 20.02, LEVEL 20 WISMA MPL, JALAN RAJA CHULAN 54200 KUALA LUMPUR TEL: +603 2070 2999 FAX: +603 2070 3999 www.halalhub.com.my

Background for Request for Proposal

i. Design, build & completion Halal Hypermarket [Kompleks Halal Hub] [2011 2016] Development in 40 strategic locations Design, build & completion Kompleks Halal Hub International [KHH Intl.] [2013 2015] Retail Hypermarkets in Non-Muslim Countries with vast population of Muslims Retail Hypermarkets in selected OIC Countries Design, build & completion Kompleks Industry Halal Negara [HALAL OASIS] [2013 2015] Integrated development on 2000 acres of land

ii.

iii.

The Proposal i. Private Equity based Fund Setting up a Fund Company Fund Company to issue equity instruments to local investors and abroad Tenure 5 + 2 years Leverage The Fund Company will utilizes of PIHB to issued Islamic Debt instruments Leverage ratio to be Syariah compliant Execution/Operation Private equity best practice with dedicated Fund/Asset Managers International class project management company (PMC) to overcome completion risk Post completion asset management Domain expertise throughout the Halal Value Chain (GCG) Exit Mechanism En-blocked sale of assets IPO of the Fund Company as Real Estate Investment Trust [REIT] Injection to existing Islamic RIETS

ii.

iii.

iv.

COMPANY INFORMATION
Company Name Registration No Date of Incorporation Business Address : : : : PERBADANAN INDUSTRI HALAL BERHAD 807439 - M 25 February 2008 Suite 20.01-20.02 Level 20, Wisma MPL No. 57 Jalan Raja Chulan 50200 Kuala Lumpur (6) 03-2070 2999 (6) 03-2070 3999 100% Bumiputra RM 10 million RM 10 million Halal Capital Sdn Bhd Yayasan Al-Iman Norashikin Hj. Shahrom Semarak Secretarial Services Lot 19-2, Jalan AU/4B Keramat Permai Business Centre 54200 Kuala Lumpur CIMB Bank Berhad Level 1 Menara Bumiputra Commerce 11 Jalan Raja Laut 50530 Kuala Lumpur

Telephone Facsimile Share Equity Authorized Capital Paid-up Capital Shareholders

: : : : : :

Company Secretary

Bank

Board of Directors

Norashikin bt Shahrom Siti Fatimah bt Mamat

1.0

OVERVIEW

Malaysias 15-year master plan addresses issues related to a more balanced socioeconomic development in the Third Industrial Master Plan (IMP3) 2006-2020 that has given Halal a major priority in the plan. Efforts will be undertaken to develop Malaysia as the global Halal hub with key strategies listed in the IMP3s Chapter 21 are as follows: i. ii. iii. iv. The distribution of Halal products; Halal service providers; Reference on Halal Standard; and R&D of Halal matters.

The global Halal industry continues to develop as a powerful market force international trade. Malaysias commitment to support and nurture this market, on both international and domestic fronts, is clearly stated policy of the government. The Halal market is diverse and complex; geographically, it covers the Muslim and non-Muslim world; by farm-to-fork nature, it encompasses a wide range of industry sub-sectors; it has religious, political and financial dimensions, and because Halal is essentially an Islamic phenomenon, it highlights the benefits of Islam to all mankind. The word Halal is now getting recognized in the business world whether its for food to pharmaceuticals or banking to import export. Halal is no longer purely a religious issue; it is becoming a global symbol for quality assurance and a lifestyle choice. Demands for Halal-certified products have increased exponentially not only because Muslim consumer base is growing (estimated to be USD: 1.9 billion spanning over 112 countries) but also due to the fact that Halal products now appeal to a broader spectrum the global community. The positioning of Halal products based on quality, socio and environmental friendly, hygiene and nutritional value helps tremendously towards this global phenomenon. Halal has become a new benchmark for safety and quality assurance. The growing appeal and apparent benefits of this niche market must not be over-looked. Major nonMuslim countries like Australia, New Zealand and Thailand have already established or plan to develop their local production for the Halal market. Halal as a branding ensures the integrity of food safety and hygiene throughout on what is termed as the Halal Value Chain. This farm-to-plate value chain includes not only production, processing, logistics, market connectivity, Halal standards and audit mechanism but financing as well. Environment-friendly and socio-economic values together with ethical financing are now some of the adjectives associated with Halal

branding. Malaysia is already a major player in the global Halal food industry. This is the embodiment of Halal as a lifestyle a lifestyle that has attained global appeal.

2.0

INTRODUCTION

PERBADANAN INDUSTRI HALAL BERHAD envisioned being the vehicle to this Halal Hub. PIHB positions itself as a platform for the integrated approach of Halal as a lifestyle Brand incorporating the following components: Platform for the dissemination of knowledge of Halal for products and services ii. Aggregation of global sourcing of Halal trade in food and non-food products iii. Central resource and services centre for Halal enablement throughout the Halal Value Chain i. The burgeoning Halal market is set to attract government agencies, multi-national corporations, cooperatives, small and medium enterprises and entrepreneurs and they will represent both Muslims and non-Muslims. As more agencies, companies join in the Halal market fray, complexities and confusions may arise. The market focus may be common but the diversity in the interpretation of what truly Halal may cause acute problems. Tapping its potential needs a partner that truly understands the market. PIHB holds the key to this dynamic and diverse market. PIHB is an integrated market-place that combines infrastructure with an array of professional services aimed at enterprises and retailers. It is established with the objective of being a conduit towards the enhancement of trade primarily in the large untapped Halal sector for products and services. We aim to be the leading market-place and platform provider engaging in value-added services to the business community. We provide the vital link between business-to-business and business-to-consumer in the Halal market. The suite of professional services provided by us is aimed not only at guiding business through the intricacies of Halal market but taking it to the next level by providing you with groundbreaking business strategies and international branding to aggressively and creatively compete in an ever-changing economy. Our integrated solutions will give you the confidence to succeed. 2.1 Vision Statement To be a leader in providing total Halal products 2.2 Mission Statement

We are a business entity. Retail is our core business. Our primary responsibility is to contribute in developing world class business venture through integrated services and comprehensive products. Our objective is to excel in providing high quality of Halal products. 2.3 Core Objectives i. To make Kompleks Halal Hub [Halal Hypermarket] the prestige and of Malaysian pride; ii. To become the apprentice in Halal industries this competitive-edge; iii. To introduce: Halal Hub Halal For All; iv. To branding the halal products as a good, safe, healthy and quality products; v. To give a value that can be proud of by Malaysians, the people of culture and religion; vi. To provide for the development of wealth to the people and the Country.

3.0

DEVELOPMENT AND MARKETING CONCEPT

In realizing our strategies, we at PIHB have laid plans to strengthen our market capitalization in the Halal sector. PIHB is establishing a centre for retailing of Halal products and non-products that are accepted, certified and recognized worldwide. PIHBs Halal hub which covers an area of 200,000 sq. feet, strategically located is designated for high technology, modern facilities and excellent infrastructure to accommodate the retailers of high quality Halal products. This is met by establishing Halal partnership through accommodating manufactures and entrepreneurs in one centre so as to ensure a maximum market penetration as well as to enable consumers to have easy access to the Halal products in one-stop-centre. In addition to that, the main concern also lies in maintaining the quality of services by offering superior sales services accompanied with high-tech system. In addition to this aggressive promotion and advertising activities are also well planned in order to create awareness and convince the consumer without the slightest doubt of quality and safety. 3.1 Location and Facilities Location High density residential area Land size 6 to 12 acres (1 acre for car park 300 bay) Building size Gross building area @ 80,000 sq. ft. 120,000 sq. ft. Net lettable area for Supermarket @ 50,000sft. 90,000 sft.

3.2

Propose Land Size for Complexes

Prime Location and Urban Area: 8 acres to 10 acres A Stores Medium Size Location and Suburb Area:- 6 acres to 7 acres B Stores Untapped Market:- 5 Acres C Stores

3.3

Store Types A Store Selling Area 7500sm (80,000sf) B Store Selling Area 6000sm (65,000sf) C Store Selling Area 3700sm (40,000sf)

3.4

Stores Size and Proposed Location A Stores Size (80,000sf) Kuching, Penang Island, Butterworth, Alor Setar, Johor Bharu, Melaka Tengah, Senawang, Sungai Buloh, Kelang, Shah Alam, Seremban, Ipoh, Kota Kinabalu, Kuantan, Kuala Trengganu B Stores Size (65,000sf) Rawang, Tronoh, Puchong, Bangi, Semenyih, Port Dickson, Batu Pahat, Bandar Baru Pontian, Alor Setar, Temerloh, Pekan, Kemaman, Kluang, Paroi, Pasir Mas, Masai C Stores Size (40,000sf) Manjung, Teluk Intan, Jitra, Chemor, Tawau, Bintulu, Kampong Jawa, Mersing, Miri, Salak Tinggi

3.5

Objectives for Setting Hypermarkets i. To make company expansion faster. ii. Investment. Low Operation Cost.

To dominate target market. Occupy target market with General Merchandising Stores (GMS) Shopping Centre (SC) format.

iii.

Convenience to customer. Short time shopping.

3.6

Hypermarket Concept

i. ii. iii.

Stand Alone Concept Single Storey Building Standardize layout Convenience One Stop Shopping for daily necessities mainly daily foods. Business Hour (AM9.30 PM10:00) 2nd phase 24 Hour Location, Easy Go In & Easy Go Out

iv.

Target Market Target Customer Middle Group Income High Density Area Catchment 100-150k Population within 2 Km radius 250,000 populations within 5 Km radius

v.

Assortment of Merchandise Food, Non Food, Bakery, Delicatessen Commodity Goods from Softline and Hardline. Health Foods, Organic Foods

vi. 3.7

Low Cost Operation.

Distribution i. Distribution Center Keep running stock On time delivery to store

ii.

Process Center Out sourcing, Out packing Perishable Fish, Meat, Produce Daily delivery to maintain quality and freshness

iii.

Fully Auto Ordering System For accurate ordering and reduction of men-power

3.8

Assortment of Merchandise i. Foodline Full range of 18,000 SKU including HBC and Drug

ii.

Softline Full range of 8,000 SKU including basic cosmetics, inner ware. Sa Hardline Full range 5,000 SKU including stationery, basic household & Car fragrance

iii.

4.0
4.1

MARKETING TARGET
Target Merchandise The Suppliers group is from 4 sector which:i. Grocery Snacks, confectionery, cereal Rice, cooking oil, sugar, canned and packed foods. Detergent, non food Personal care, baby food, diapers Beverages

ii.

Hard Line Electricals, home appliances Furniture, DIY Toys Stationeries, Sports, Bags

iii. Soft Line Shoes, Mens, ladies and childrens apparels Handbags, Linens, iv. Fresh Market Frozen food, fruits and vegetables, Meat and poultry, fish and seafood, Cake and pastries, Ready-To-Eat food. 4.2 Target Products and Customer

Product for selling must be acceptable by all range and must meet the halal standards and it is not only meant for only one race or religion but shall be accommodative to everyone. The target composition of products in Kompleks Halal Hub shall comprise of:-

i. ii. iii.

50% from the A category products 30% from the B category products 20% shall be from the SME supplies and government agencies covering perishables

5.0

PROMOTIONS AND ADVERTISING

To get the total impact and to achieve the target, Promotions and Advertising department already determine a few suitable aspects for the target marketing. The shortlisted aspects is the detail plan that we believe it will success to achieve the main mission for all especially for those who are Muslims. Kompleks Halal Hub will be the new icon in the hypermarket industries where the branding is needed to compete with other hypermarket. The Overall Promotions and Advertising Campaign is needed throughout the year to give a big impact to the industry with the continuous promotions activity, especially to emphasizing the branding growth of Halal Hub Complex. 5.1 Promotions and Advertising Department plan will cover: Grand launching by our Prime Minister; Launching by the State Minister; Advertisement Board for rental, in and outside of the Kompleks Halal Hub; Electronics and Printed media advertisement; Advertisement through public transport (LRT, Bus, Taxi); The installation of digital advertisement at all level in Kompleks Halal Hub; (collaboration with the advertising agencies) Brochures distribution Website Festivals Promotions Printed promotions brochures appointed

To make this an effective advertising plan success, event managers will be for this special task and job scope: Complex Grand launching

5.2

Pre - sale complex launching Complex branding Brochures printing and publishing Promotional Items Seasonal festive celebration Promotions Activities that has been organized i. Majlis Penayamakan Kompleks Halal Hub Selayang

Majlis Penyamakan Complex Halal Hub Selayang and Signing Ceremony for Sales & Purchase of the building in Selayang, successfully held on 7th August 2008. The ceremony was officially launched by PIHB Chairman, YB Dato Dr. Abdullah Md Zin. The media coverage is good whereby the attendance are from TV9 (news slot), Bernama TV (news slot), TV3 (Majalah 3), RTM (Bisnes Malaysia) dan Utusan Malaysia (newspaper). ii. Television broadcasting From the Penyamakan Ceremony, the event was slotted for 15 minutes in Majalah Tiga aired by TV 3 on 16 August 2008 at 9.00pm. The interview with Hello Malaysia @ Bernama TV on 25 August 2008 and has been broadcast at Astro on 27 August 2008. The topic for the interview was The emergence of Halal Hub. The guest speaker was PIHB Chairman, YB Dato Dr. Abdullah Md Zin and Group Managing Director Dato Norashikin Shahrom. iii. Radio Broadcasting Live radio broadcasting with Bernama Radio on topic of Halal by Tuan Asmawi Tuan Omar on 27 September 2008 at 9.00 pm. Guest attendance by Group Managing Director, Dato Norashikin Hj Shahrom. The slot lasted for 15 minutes.

6.0

COMPANY DIRECTIONS
i. We will continuously strive to serve the market with halal products and first class services to the customer.

ii.

To build and operate 40 retail halal hypermarkets Kompleks Halal Hub nationwide from 2011 2015 To build and operate retail Halal Hypermarket in a non-Muslim Countries with vast Muslim population To build and operate retail Hypermarket in selected OIC Countries To develop Kompleks Industri Halal Negara [Halal Oasis] on a 2000 acres of land, to accommodate international food manufacturers and to ascertain the certification of Halal

iii.

iv.

v.

PERBADANAN INDUSTRI HALAL BERHAD DEVELOPMENT OF HALAL HYPERMARKET NATION WIDE

NO State PROJECT DEVELOPMENT Place Location Size kp/acre 1 PULAU PINANG Butterworth Lot 516 & 923 Section 4, Jalan New Ferry 252,212 5.79 30 yrs RM164,100/mth 54,137,100.00 470 DEVELOPMENT COST Land cost Construction STAFF

SABAH

Kota Kinabalu

NT 5504 & NT 5505 Kampung Inanam

292,669 6.72

30 yrs RM204,868/mth

61,217,075.00

470

SARAWAK

Kuching

North Portion of Lot 413, Block 13 Salank Land Distict of Kuching

435,600 10.00

9,000,000.00

76,230,000.00

470

NEGERI SEMBILAN

Senawang

PN8414, Lot 1572, Mukim of Ampangan

382,718 8.79

17,222,317.00

56,975,000.00

470

PAHANG

Kuantan

Lot PT 96403 & PT 96404, Mukim Kuala Kuantan Bandar Indera Mahkota

322,344 7.40

12,893,760.00

56,410,200.00

470

NEGERI SEMBILAN

Seremban Paroi

HS (D) 155086, 155085, 155084 PT 7063, 7602 & 7601, Paroi,

375,922 8.63

16,916,528.00

55,786,350.00

470

SELANGOR

Sungai Buloh

HSD 6954 PT 10629 Mukim Ijok Daerah Kuala Selangor

327,398 7.52

15,715,104.00

57,294,650.00

470

NEGERI SEMBILAN

Seremban 2

Lot PT 21393, , Mukim of Rasah District of Seremban

488,984 11.23

22,004,280.00

65,572,500.00

470

PERAK

Simpang Pulai

Plot 176A, Jalan Dr Nazrin Shah, Mukim Sg Raya,

349,787 8.03

22,736,155.00

57,714,855.00

470

PERBADANAN INDUSTRI HALAL BERHAD DEVELOPMENT OF HALAL HYPERMARKET NATION WIDE

NO State 10 PAHANG PROJECT DEVELOPMENT Place Pekan Location Lot 1266 & PT 4652, Tanah Puteh Mukim Pahang Tua, Melaka Tengah Size 394,595 9.06 DEVELOPMENT COST Land cost 13,810,831.65 Construction 59,054,125.00 STAFF 470

11

MELAKA

HS(M) 454, Lot 1216, 1217 & 1218 Mukim of Paya Rumput Daerah Melaka Tengah

357,192 8.20

15,002,064.00

62,508,600.00

470

12

KEDAH

Alor Setar

GM 1870, Lot No. 5613 , GM 14136, Lot No. 5614 , Bandar Alor Setar, Daerah Kota Setar,

232,610 5.34

10,467,450.00

40,706,750.00

470

13

TRENGGANU

Kuala Trengganu

Lot 526, GRN 5072, Mukim Rengas Kuala Terengganu

392,040 9.00

30 yrs RM244,514/mth

58,607,000.00

470

14

PULAU PINANG

Bayan Lepas

Lot 15315, Mukim 12, Daerah Barat Daya

318,011 7.30

30 yrs RM222,608/mth

55,651,925.00

470

15

KELANTAN

Kota Bharu

GM 3678 (Lot 690) Mukim Kenali Daerah Kubang Kerian

381,789 8.76

23,000,000.00

56,813,075.00

470

16

JOHOR

Kota Tinggi

Lot 1171, Mukim Kota Tinggi, Daerah Kota Tinggi

437,983 10.05

15,329,422.50

47,887,865.00

399

17

KEDAH

Tmn Batik Sg Petani

PT No. 49134 - PT49234, Mukim Sungai Petani Daerah Kuala Muda

363,334 8.34

8,356,681.00

46,316,770.00

399

PERBADANAN INDUSTRI HALAL BERHAD DEVELOPMENT OF HALAL HYPERMARKET NATION WIDE

NO State PROJECT DEVELOPMENT Place Location Size DEVELOPMENT COST Land cost Construction STAFF

18

JOHOR

Bandar Baru Pontian

Lot 11420, 11422, 11433, PTD 11746 & 343 Mukim Bandar Pontian,

311,454 7.15

15,572,700.00

48,275,370.00

399

19

JOHOR

Segamat

Lot PTD 12/96, Mukim Buloh Kasap Segamat

392,040 9.00

12,545,280.00

60,766,200.00

399

20

KEDAH

Sungai Petani

Lot 946 & 947, Mukim Sg Petani Daerah Kuala Muda

497,281 11.42

11,437,462.08

52,078,555.00

399

21

JOHOR

Kluang

Lot 33123 & 37024 JLn Batu Pahat Mukim Kluang

277,042 6.36

10,527,580.00

52,941,510.00

399

22

JOHOR

Muar

Lot 3113,

413,820

15,725,160.00

54,142,100.00

399

No. Hakmilik 81617, Mukim Bandar Muar,

9.50

23

PULAU PINANG

Batu Kawan

Lot 8747, MU 15, Bandar Tasek Mutiara, Seberang Perai Selatan,

435,600 10.00

12,196,800.00

57,518,000.00

399

24

PERAK

Tronoh

Lot 13755, Mk Sg Terap, Daerah Kinta,

327,571 7.52

11,464,992.00

50,773,505.00

399

25

PERAK

Klebang Ria Chemor

Lot 12080 Mukim Hulu Kinta, Daerah Kinta

348,480 8.00

13,242,240.00

54,014,400.00

399

26

PERAK

Tanjung Malim

Lot 376, 4584, 4585 & 4586 Mukim Hulu Bernam Timur

339,768 7.80

14,546,590.00

52,664,040.00

399

PERBADANAN INDUSTRI HALAL BERHAD DEVELOPMENT OF HALAL HYPERMARKET NATION WIDE

NO State PROJECT DEVELOPMENT Place Location Size DEVELOPMENT COST Land cost Construction STAFF

27

SARAWAK

Miri

Lot 870, Blok 5, Jln Tudan, , Kuala Baran,

344,124 7.90

10,270,000.00

53,339,220.00

399

28

SABAH

Lahad Datu

Lot 11532747, GN 396-78, Daerah Lahad Datu

359,370 8.25

6,000,000.00

55,702,350.00

399

29

PAHANG

Temerloh

Lot PT 12570 & PT 16569, Mukim Mentakab Lot 8774 HSD 5069 PT 1931 HSD 50665 PT 1937, Bandar Kulim

217,800 5.00

7,623,000.00

33,759,000.00

399

30

KEDAH

Kulim

330,184 7.58

13,207,392.00

51,178,520.00

399

31

SABAH

Tawau

CL 105144107, Jalan Damai, Daerah Tawau

304,920 7.00

25 yrs RM213,444/mth

47,262,600.00

399

32

TERENGGANU

Kemaman

Lot 1657, Mukim Cukai,

265,019 6.08

25 yrs RM130,680 / mth

41,077,945.00

399

33

SARAWAK

Bintulu

Lot 184 & 924, Bintulu Town District,

435,600 10.00

25 yrs RM348,480/mth

57,518,000.00

399

34

SABAH

Putatan

Lot 21312309, 213123105, 213123070 Sg Meruntum Penampang

349,786 8.03

30 yrs RM279,829.44/mth

57,714,690.00

399

PERBADANAN INDUSTRI HALAL BERHAD DEVELOPMENT OF HALAL HYPERMARKET NATION WIDE

NO State PROJECT DEVELOPMENT Place Location Size DEVELOPMENT COST Land cost Construction STAFF

35

SARAWAK

Sibu

Lot 1065, Block 17, District of Seduan Land Leping Jenging, Ulu Sg Selim,

304,920 7.00

30 yrs RM91,476/ mth

50,311,800.00

317

36

NEGERI SEMBILAN

Port Dickson

Lot 6694, Daerah Port Dickson

191,359 4.39

7,271,642.00

35,833,465.00

317

37

NEGERI SEMBILAN

Salak Tinggi

PT 2031-PT 2053 & PT2058 Mukim of Labu

245,721 5.64

4,422,995.20

35,629,545.00

317

38

JOHOR

Mersing

GRN 82890,82888, 82886, Lot 95, 944 & 943 Mukim Mersing GRN 10018 Lot 1034, Mukim Mersing

258,746 5.94

6,897,494.00 734,416.00

34,930,710.00

317

39

SABAH

Keningau

Lease No. 7309 (1353519985) Survey No. 108 Daerah Keningau

348,480 8.00

4,800,000.00

54,014,400.00

317

40

PERLIS

Arau

Lot 8070 Mukim Padang Siding Daerah Arau

382,760 8.79

4,593,120.00

41,672,700.00

317