The International Halal SME Report Directory
The International Halal SME Report Directory is the first-of-its-kind publication that offers Halal industry analysis and reports, plus comprehensive directory listing of Halal-certified businesses worldwide in one neat package, specific for the fast-evolving global Halal industry.
THE INTERNATIONAL HALAL SME REPORT DIRECTORY 2011/2012 THE DEFINITIVE GUIDE FOR THE GLOBAL HALAL INDUSTRY Fully Supported and Endorsed by: Ministry of International Trade & Industry Malaysia (MITI) Malaysia Department of Islamic Development (JAKIM) Halal Industry Development Corporation (HDC) Dear Business Community Friends, Sign up for a brand new blog for your company for FREE! At www.halalsme.com Upgrade to Premium and get access to unlimited Advertorials and Product Reviews, plus Cool Social tools to engage your business with the potentials in globalised Halal industry. Register today! DIRECTORY LISTINGS COMPANY BLOG ADVERTORIALS REPORTS ANALYSIS > B2B, B2C platform HALAL SMe Read articles for FREE! Blog, Engage, Network www.halalsme.com HALAL SMe At www.halalmedia.net Spend your time for knowledge and understanding within the Halal market & trends. View it from the inside and from the outside, and get some benefits to guide you with life decision making. Become registered members for FREE HALAL SMe Halal Community Portal HALAL CONSUMERISM TRENDS + INDUSTRY SCIENCE + SPIRITUAL PRODUCTS + DIRECTORY > B2A, B2B, B2C platform www.halalmedia.net HALAL SMe HALAL SMe created and managed by Media House for Halal Trends Communications | PR | Media | Web | HALAL SMe www.hmedia.my "O AllAh, Accept the greAtest intercessiOn Of prOphet MuhAMMAd sAlAllAhu AlAihi wAssAlAAM And rAise hiM tO the highest degree And grAnt his every request in the next wOrld And this, As yOu gAve thAt tO prOphet ibrAhiM AlAihi sAlAAM And prOphet MusA AlAihi sAlAAM. yOu Are prAisewOrthy, glOriOus." The INTeRNATIONAL hALAL SMe RePORT & DIReCTORY 2011/2012 ISBN 978-967-10758-0-7 First Edition � 2011 by H Media. All Rights Reserved This publication contains material protected under International and Federal Copyright Laws and Treaties. Any unauthorized reprint or use of this material is prohibited. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system without express written permission from the author / publisher. H Media (1924383-D) C903A, Armanee, Damansara Damai, 47830 Petaling Jaya, Selangor, MALAYSIA e-mail: email@example.com www.halalmedia.net www.halalsme.com Printed in Malaysia We would like to thank its local and international partners for their assistance and support in the research of this project. contents RepoRts Industry Overview Tracking the Wind in Halal Marketplace Industry Review 2010: Prologue of Halal Era Regional Market Analysis growing & Maturing in Obama's Era The Rise of Russian Halal Something about India Market Analysis - Sectors Positive Emergency of Islamic Finance Structuring the Halal Parks HALMAS Accredited Logistics on global Fast Lane The Fusion of Halal and Organic Creating Profitable Foreign Relations The Halal-Friendly Factor Interviews An Epitome of Blue Ocean Strategy Social Networking the Halal Industry Bringing the East Coast to the World Demystifying the EU's Labelling Agenda 07 13 24 28 34 Ordering Information: For permission requests and details on how to order, kindly contact the publisher at the above address. The e-book version is available for purchase at www.halalmedia.net and www.halalsme.com. Special discounts are also available on quantity purchases by corporations, associations and other relevant organisations. Limit of Liability and Disclaimer of Warranty: The publisher has used its best efforts in preparing this book, and the information provided herein is provided "as is." H Media makes no representation or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaims any implied warranties of merchantability or fitness for any particular purpose and shall in no event be liable for any loss of profit or any other commercial damage, including but not limited to special, incidental, consequential, or other damages. Trademarks: This book identifies product names and services known to be trademarks, registered trademarks, or service marks of their respective holders. They are used throughout this book in an editorial fashion only. In addition, terms suspected of being trademarks, registered trademarks, or service marks have been appropriately capitalized, although H Media cannot attest to the accuracy of this information. Use of a term in this book should not be regarded as affecting the validity of any trademark, registered trademark, or service mark. H Media is not associated with any product or vendor mentioned in this book. 38 44 48 51 58 61 64 18 36 46 54 For details, please refer contents on Directory Separator page Premium Listings Free Listings DiRectoRy 67 68 - 112 113 - 208 � 2011 BY H MEDIA. ALL RIgHTS RESERvED the inteRnAtionAL hALAL sMe RepoRt & DiRectoRy 2011/2012 RepoRts inteRnAtionAL hALAL sMe DiRectoRy : 2011 - 2012 RepoRts oveRview Tracking the Wind in halal Marketplace A global Halal industry overview "SMe success is essential for the developing economies... " In the past five years, Halal has become a global issue. With a Muslim consumer base of an estimated 1.6 billion people, and a significant and as yet unmeasured number of non-Muslim Halal consumers, the Halal market demographic is arguably the single largest market sector that is defined by a specific set of compliance parameters. Halal now plays an increasingly frequent role in government policies in both Muslim majority and minority countries. Halal is already an important factor in corporate strategies for food, personal care and pharmaceutical multinationals around the world. Entrepreneurial and SME (small and medium enterprise) development, research and development projects, online and digital business pioneers, advertising and marketing agencies, laboratory testing, logistics, training... it seems today that everywhere you look, Halal is part of the picture for the next stage of economic growth. Halal compliance is having a major impact in the food sector and beyond, affecting agriculture, manufacturing, retail, restaurant, and travel and hospitality sectors. Halal is increasingly a factor in health, safety, labelling and quality control issues all over the world, and due to global trade, the evolution of the regulatory framework governing Halal compliance has effectively become a global issue. The role of SMEs in the Halal sector is a matter of paramount importance for all economies, regardless of whether this has been recognised by the respective government agencies around the world. �"SMEsarethelifebloodoftheprivatesector..." �"SMEscreatecompetitiveand efficientmarkets..." �"SMEproliferationisanimportant factorforpovertyreduction..." �"SMEsuccessisessentialforthe developingeconomies..." �"SMEsarethemajoremployers inmostcountries..." �"SMEsareamajorsourceofinnovation..." �"SMEsaretheenginesofgrowth..." Nowhere are these statements truer than in the Halal sector. If we look at the evolution of the health and speciality foods market, we can get an idea of the kind of related growth patterns that we can expect to see in the Halal sector. In many cases, today's market leaders were the SMEs of twenty-five years ago, led by individuals who had the vision and the drive to see their ideas come to life and shape the markets of tomorrow. The Halal sector is complex. It cuts across geographic, cultural, racial and even religious boundaries, and at the same time has a common underlying foundation in compliance with the guidelines established in the Qur'an and the Sunnah. To break the Halal market down into manageable parts, this Report will look at the following sectors: Agriculture, Manufacturing, Services, Tourism and Finance � all key components of the Halal Market Economy. AGRICULTURe Agriculture is literally the root of the food industry. Without farmers, there is no food. All the rest of the massive food industry rests on the often overlooked and overworked shoulders of the farmers. From the perspective of the Halal food industry, agriculture also takes on another layer of importance. As the perception of Halal shifts, from being an issue related solely to slaughtering procedures and becomes a matter of farm-to-fork compliance throughout the full supply-chain, the importance of Halal at the farm becomes more critical. The way that animals destined for the Halal markets are handled and fed is coming increasingly into the spotlight, especially in the poultry sector. With the recognition that chickens are often raised on feed that is made up of animal by-product, consumers as well as scrupulous manufacturers want to ensure that chickens for the Halal market are raised on grain and vegetarian feeds. While it can be argued that chickens are natural scavengers and by nature are not strictly vege- In many cases, today's market leaders were the SMEs of twentyfive years ago, led by individuals who had the vision and the drive to see their ideas come to life and shape the markets of tomorrow. 7 RepoRts oveRview inteRnAtionAL hALAL sMe DiRectoRy : 2011 - 2012 This evolved model of CSR can play a very important role in the agricultural sector, and it is the interest of both parties � companies and governments � to encourage this symbiotic relationship. As more multinationals become involved in the Halal marketplace, the more they have to restructure their supply chains, to ensure end-toend Halal compliance. This creates a new wave of opportunities in the agricultural sector that have to be recognised and seized by enterprising SMEs. The agility and short decision-making chains of SMEs can become advantages in that they can quickly adapt to the needs of the larger corporations and develop this kind of mutually beneficial business relationships. Similarly, global movements such as Fair Trade and the Rain Forest Alliance have many shared values with those inherent (and too often unexpressed) in the Halal sector. Halal is increasingly moving in the direction of these socially and environmentally responsible movements, and this current can bring many opportunities for agricultural entrepreneurs with an eye on social transformation. The final trend that is going to play a strong role in the expanding Halal agricultural sector is the growing awareness of the food security risks in the Arab world. Massively dependent on imports, many Arab nations are going through a process of social change that will inevitably re-engineer their economies. Arab countries such as those in the gCC region are import-dependent for Halal food. Other Muslim majority nations, such as those in Africa, are potentially significant food producers that can be suppliers to the gCC region. With the majority of the Halal food around the world being produced by non-Muslim exporters, the inherent risks of this reality is likely to become more apparent in the coming decade. This will in turn create a new round of opportunity for the wealthy Muslim nations to develop the same kind of symbiotic relationship with Muslim food producing countries as some of the more enlightened MNCs have been doing. Where there is risk, there is also opportunity, and the successful entrepreneurs are going to be those who can see the trends, recognise their place in the larger scheme of things, and see how to turn these changes to their own advantage. One of the greatest challenges facing all major food producers is the matter of securing consistent supply lines, and this is where SMEs can find their place and raise up the quality and capacity of their own operations. tarian, in an industrial process, especially for the Halal and upper ends of the mainstream market, the preference for vegetarian feed is evident. Halal-savvy producers are avoiding the `grey areas' of doubt, and this message is finding its way back to the farmers and other upstream producers. Mainstream multinationals who are involved in the food industry are also creating opportunities in the agricultural sector. In order to secure consistent supplies that fit their specific requirements, many MNCs are prepared to invest in the farmers who can supply their needs. Programmes such as Nestl�'s "Creating Shared values" project have developed the chilli farming capacity in the northern Malaysian state of Kelantan as well as the red rice producers of Sarawak. This is an excellent example of a mutually beneficial relationship between SMEs and MNCs. One of the greatest challenges facing all major food producers is the matter of securing consistent supply lines, and this is where SMEs can find their place and raise up the quality and capacity of their own operations. This trend is likely to increase, and it is also helped by the need for MNCs to demonstrate their corporate social responsibility (CSR), by giving back to the communities that they are involved with. CSR is an evolving process, and the notion that it is enough just to be seen to `give back' in some generic way, many corporations recognise that their CSR programmes are more effective if they can be integrated into their own business needs. In an article in The Harvard Business Review in 2006, Michael Porter observed that "the more closely tied a social issue is to the company's business, the greater the opportunity to leverage the firm's resources � and benefit society." In this model, the success of the company and the success of the community becomes mutually reinforcing. 8 inteRnAtionAL hALAL sMe DiRectoRy : 2011 - 2012 RepoRts oveRview "SMe proliferation is an important factor for poverty reduction..." MANUFACTURING Food manufacturing is the mainstay of the Halal marketplace, making Halal products for the vast complex of consumer markets that cover the globe. It is essentially what people think about when they think of the Halal industry � food manufacturing. The reality of the Halal manufacturing sector, from a global perspective, is that it is itself in a profound process of evolution. What started as the meat and poultry sector expanded and diversified, firstly in South East Asia, and then rippled through other international markets to include non-meat food products, and then non-food products in the personal care, cosmetic, healthcare and, somewhat cautiously, into the pharmaceutical sector. The meat and poultry sector of the food industry is still in expansion. The Muslim consumers are still representing a vastly underserved consumer segment. At around 26 per cent of global population, the Halal food industry falls far short of reflecting that in its level of market penetration. Halal food has been estimated at around 15 per cent of the food market, but if we consider Halal certified products, it is well below that figure. If we consider products that have been certified by a legally-recognised certification body, the numbershrinksfurtherstill...muchfurther. These facts represent the key issues in the Halal manufacturing sector, whether it is for meat, food, or non-food consumables. The levels of competence among the majority of independent manufacturers and certifiers is well below the acceptable industry norms of quality assurance, health and safety. For the multinationals, the core problems lie in securing Halal-compliant suppliers for raw materials as well as ingredients, and developing standards and implementing them in a transparent, ethical and professional manner is one of the major challenges in the Halal food industry. In many parts of the world, both small and large manufacturers are often being audited and certified by less than competent bodies � from both the food safety perspective and from a Shariah perspective. This situation highlights the current risks in the Halal food marketplace. While standards development is an important issue, there is an even more compelling need for the industry to put in place a system of accreditation that ensures that the certification procedures are being carried out employing clear standards, independent audits, ethical fee structures and eliminating potential conflicts of interest. Such an accreditation system would bring the Halal food industry into line with the current compliance practices of the mainstream food industry. This is especially true for the Muslim-minority regions that are big exporters of Halal produce to the Muslim world. As long as a competent accreditation process is lacking, the uncertainties inherent in the currently unregulated certification process means that the compliance of the Halal products imported into the Muslim world remain in doubt. Against this backdrop, it seems clear that manufacturers that build Halal compliance into their manufacturing from the ground up are likely to be the most successful in the long term. In an industry that has developed in an ad hoc manner by doing just enough to get Halal certification, the companies, large and small, that can demonstrate a serious commitment to Halal values and procedures will be the ones that gain the confidence of the consumers. Beyond this, success in the Halal sector is the same as the mainstream food marketplace; getting the right tasting product with the right packaging onto the right shelf at the right moment. At a time of global economic uncertainty, the Halal sector in many regions has shown itself to be largely recession-proof. Not only are smaller Halal manufacturers seeing new opportunities to get their products into mainstream markets, the mainstream retailers are also looking at how to serve the Muslim consumers. For SMEs who are looking to take advantage of this global Halal movement, understanding the dynamics of the Halal marketplace, whether it be domestic, regional or global, is one of the keys to success. SeRVICeS It is the services sector of the Halal industry that offers the most scope for innovation and outsidethe-box thinking. As the food industry expands, a myriad of spin-off services start to appear � opportunities that did not exist and were not even thought about until they became apparent. Logistics services, track and trace technologies, market research and consulting, laboratory testing, third-party auditing, training, educational programmes and new degree courses, online Not only are smaller Halal manufacturers seeing new opportunities to get their products into mainstream markets, the mainstream retailers are also looking at how to serve the Muslim consumers. 9 RepoRts oveRview inteRnAtionAL hALAL sMe DiRectoRy : 2011 - 2012 becomes recognised, it is not just the food companies that see them as a valuable market segment. Sporting goods and even money transfer services have made use of Muxlim.com's access to the Muslim consumers. In many ways, the services sector is the natural hunting ground of the entrepreneurs, and in an emerging market, such as Halal, the opportunities are everywhere. TRAVeL Travel and hospitality is one of the key growth areas in the Halal market, one that is closely related to the surge of interest in the Halal food sector. All travellers eat at many points on their journey; along the road, at the airport, on the plane, at the hotel, while they are shopping and for pleasure and entertainment in the evenings. For the Muslim traveller, there are two key essentials � Halal food and prayer facilities. This represents a massive spectrum of business opportunities. Compared to mainstream travellers, Muslim travellers go in larger groups, stay away longer, and overall, spend more money than the average traveller. generally speaking, there are still huge gaps in the market for Halal-friendly travel and hospitality services. Hotel chains in the gCC region and South East Asia often cater to the Muslim traveller, offering Halal food and prayer facilities. Some of the high-end hotels are starting to offer separate spa and recreational facilities for men and women, and removing alcohol from the premises altogether. As the value of the Muslim traveller becomes more widely recognised, similar services are now starting to be included outside the Muslim world. Tourist attractions in Australia, the West Midlands Airport in the UK, as well as educational and medical institutions are starting to develop Halal-friendly facilities to attract more Muslim travellers. People travel for many reasons: business, pleasure, family reunions, education, health, and of course, for religious reasons also. The Hajj and Umrah travel services sector have long been the forerunners in the Muslim travel market, but many are now seeing their scope expanding to offering other packages to destinations of interest all over the world. Crescentrating.com, a service that rates the `Halal-friendliness' of hotels around the world on a As the value of the Muslim traveller becomes more widely recognised, similar services are now starting to be included outside the Muslim world. services, software, media projects, events, audiovisual services, content providers, marketing, advertising, public relations... the list is almost endless. New opportunities are being turned into projects by enterprising entrepreneurs every week in all corners of the world. For SMEs, the services sector offers the most possibility. generally speaking, the overhead costs are lower, and the competition is less intense. If you are going to try and manufacture food products, the opposite is true; the overheads are high and the competition is fierce, profit margins are often tight. Service industries thrive on connections. You are providing a service for people and corporations (maybe even multinationals) that are already in business, and there are immediate opportunities for win-win partnerships. In addition, because of the emergent nature of the Halal industry, services can also evolve naturally along with the process of development of the industry itself. One example of this is Zabihah.com, an online Halal restaurant guide that has offered its service online for the past 10 years. You might say that it began almost as a labour of love. Now available on mobile devices, and with years of data and a massive network of restaurants and their customers, Zabihah.com has become a source of valuable information for the food industry, because they have real-time data about who is searching for what, and where, all over the world. So a restaurant guide service evolves into a market intelligence service. Similarly, Muxlim.com, a social media portal that started in Finland, has been able to provide market strategy services to companies wanting to reach Muslim consumers in the United States. As the purchasing power of the Muslim consumers 10 inteRnAtionAL hALAL sMe DiRectoRy : 2011 - 2012 RepoRts oveRview "SMe's are the major employers in most countries..." scale of one to seven has seen the scope of its business expand. Not only are hotels asking to be rated, but also medical, educational and other tourist attractions are recognising the importance of serving Muslim travellers. As with all things related to Halal, there is a strong cross-over potential. Halal-friendly also means family-friendly, as it is not just the Muslims who enjoy an environment that is free from alcohol and the related activities that go along with it. FINANCe The finance sector is arguably the key that will open the door to the next chapter in the development of Halal industries around the world. Islamic finance and Halal are a natural match, as they are the only two large Shariah-based industries in the world. They belong together, and yet, because they developed along totally separate paths, there is a disconnect between them. Islamic finance is, currently, scarcely involved in the Halal sector; the Halal industry, for the most part, is not using Islamic finance. And yet, both have their roots in the Qur'an and the Sunnah; both sectors are developing along similar lines; both are involved in developing industry standards; and both are grappling with the differences of opinion among the legal schools of Islamic jurisprudence. They are natural allies to each other. In the eyes of industry insiders from both sides, some form of convergence between these two Shariah-based sectors is inevitable, and will open the door to the next chapter of growth for both parties. According to Rushdi Siddiqui, global Head of Islamic Finance and OIC Countries at Thomson Reuters, once some of the key stakeholders in the Halal sector use Islamic finance, for example issuing a corporate sukuk for an expansion project, then the Islamic finance world will start to pay attention with fresh eyes. They need to see the possibilities in the Halal sector in ways that they already understand before they will be able to recognise new, and perhaps less obvious, opportunities. News that some major South American beef concerns are considering Islamic finance for a major expansion of the Halal export capabilities, plus the knowledge that this convergence is being discussed at boardroom and policy-making levels would lead us to believe that the next chapter for both of these industries is just around the corner. The next chapter is likely to see Islamic financial services becoming less of a `me too' industry that is technically Shariah-compliant, and more of an innovative service that is actually Shariah-based. Calls from industry insiders for services such as Islamic micro-finance and venture capital that can start to provide the kinds of services that businesses, both large and small, actually need indicates that a re-evaluation is taking place inside the Islamic financial world. The recent collapse of so many leading usurybased financial institutions all over the Western world has � and continues to have � a profound effect right across the world. The recognition that there needs to be a major re-think of how we run our economies is more prevalent than ever before, and while it may be na�ve to think that anyone in a powerful position would relinquish it willingly, there is no doubt that the current economic climate is conducive to changing the way things are done. This is an opportunity for Islamic financial institutions to reassess their own foundations and the kinds of services they offer. As the Halal industries expand and mature, more major corporations right across the supply chain will see opportunity, and the opportunities to develop the components of a Halal economy will emerge and coalesce. The supply chain expands from farmto-fork to become farm-to-fork-to-finance. At the same time, in the political arena, leaders in some countries will see the convergence of Halal products and Islamic financial services as an opportunity for national branding. From both the political and commercial sides, added to the growing demand for Halal products and services by the increasingly aware Muslim consumers across the world, means that the world's economies are slowly being reconfigured. This spells opportunity for the inventive entrepreneur. As with everything in life, paying attention and being aware is the first step. Turning information and knowledge into action is the second step. Keeping focused and staying the course is the third step to success. And while nothing comes without effort, and there are certainly no guarantees, it is clear that the Halal sector is already on its course to becoming a major market force of the 21st century. The next chapter is likely to see Islamic financial services becoming less of a `me too' industry that is technically Shariah-compliant, and more of an innovative service that is actually Shariah-based. 11 PAVING THE WAY FOR THE GLOBAL HALAL INDUSTRY The global Halal trade today stands at USD2.3 trillion. It is one of the fastest growing markets in the world, offering vast opportunities and rewards for all. ECER Malaysia has been driving the development of the Halal ecosystem to support Malaysia as a hub. With the establishment of the region's Halal parks, they are expected to emerge as important focus points for Malaysia's Halal industry. Gambang Halal Park, Pahang (200 acres) � Offers investors a full range of investment opportunities in the production, processing, certification and accreditation of Halal products � To be supported with an incubator centre for industrial, micro, traditional and specialty food processors � Focuses on food and non-food products, concentrating on high-value added industries supplying ingredients to the cosmetics and personal health care sectors � Easy access to abundant supply of palm oil by-products which can be used to obtain oleochemicals, the main ingredients to produce cosmetics and health care products Pasir Mas Halal Park, Kelantan (108 acres) � Concentrates on crops, poultry and beef based products � Houses the Central Marketing & Processing Complex manufacturing plant facilities for food-based products and an incubator centre � To produce high-value added additives and ingredients from food materials for the pharmaceuticals industry inteRnAtionAL hALAL sMe DiRectoRy : 2011 - 2012 RepoRts Review 2010: Prologue of halal era global Halal industry surges ahead as world economy improves Amid a global recession two years ago, doom and gloom predictions were overshadowing every industry, including the Halal industry. As the year 2010 drew to an end, there was reason to believe that the negative impact on the global Halal industry might have been exaggerated. Based on estimates by Malaysia's Ministry of International Trade and Industry (MITI) in 2006, the global market value for Halal food is about USD547 billion annually. Using the latest available data, calculations for this publication suggest that the value is actually closer to USD720 billion at 2009 prices (see Table 1). Once nonfood products and services are included, the global Halal market value may well exceed USD2 trillion a year. In 2009, Malaysia's Halal food market alone was estimated to be worth USD12.21 billion, which is 6.3 per cent of its nominal gross domestic product of USD192.82 billion. Throw in non-food products and services such as leisure and recreation as well as health goods and medical services, the figure could easily be in excess of USD21 billion a year. What is clear is that the anchor of the global Halal industry is food, and so even in an economic crisis, it is unlikely that the industry would collapse. After all, food is a basic necessity of life. In difficult times, consumer preferences may shift towards buying more affordable products and raw food, but they will continue to spend on food. Moreover, Halal as a basic tenet of the Islamic faith also makes consumption of Halal products more than a matter of mere budgetary considerations. Robust demand is why the food business has in fact been booming; in February, global food prices reached their highest since the United Nations started tracking them in 1990. Corporate advisory specialist, International Network of M&A Partners (IMAP), reports that the global food and beverage industry was valued at USD5.7 trillion in 2008 and is expected to increase to more than USD7 trillion by 2014. Information on the Halal industry has not always been readily available. But if one were to look closely at how the world economy and trade performed in 2010, the numbers would seem to justify the case of an optimistic assessment. According to the IMF or International Monetary Fund's forecast, global activity expanded at an annualised rate of 5.0 per cent in 2010, due in no small part to stimulus measures in many coun- tries. The rebound was especially pronounced in emerging economies, led by developing Asia, as well as Middle East and Africa � the two regions that are home to the bulk of the global Muslim population. After a contraction in 2009, world trade volume was likely to have grown by 13.5 per cent in 2010, the fastest expansion on record, based on the World Trade Organization's estimates. In all likelihood, the global Halal industry, after weathering the economic crisis in 2009, was lifted by the subsequent rising tide. One sign of the Halal industry going mainstream is the stepping-up of efforts by governments in Asia and the Middle East to pour millions into creating regional Halal hubs not only for the food industry, but also pharmaceuticals, cosmetics, personal care products, tourism, apparels, restaurants and hotels, banking and finance, and logistics. The burgeoning of Halal hubs, which are essentially geographic in nature, is surprisingly banking on emerging global supply chains that are fast eroding geographical limitations. Seeking to reduce cost and improve efficiency, firms enter into a supply chain and form business alliances that link all players for supply, services and technical support. Facing a relatively higher cost of production at home, more and more Malaysian firms are turning to contract farming, sourcing for raw ingredients from the most competitive foreign suppliers in Thailand, New Zealand and Australia, amongst others. After further processing and packaging, the final products are shipped to the intended export destinations from Malaysia. Brazil, which supplies most of Saudi Arabia's chicken, has seen many of its firms racing to build more Halal slaughtering facilities catering to the Muslim markets. Another indicator that the Halal industry is gaining momentum is the plethora of initiatives undertaken by various countries to focus on not just the production and supply of Halal goods and services, but also Halal certification, standards and financing. Muslim-majority countries without Halal certification procedures and standards are now actively introducing them. Even Another indicator that the Halal industry is gaining momentum is the plethora of initiatives undertaken by various countries to focus on not just the production and supply of Halal goods and services, but also Halal certification, standards and financing. 13 RepoRts Review inteRnAtionAL hALAL sMe DiRectoRy : 2011 - 2012 TABLe 1: DECODINg MUSLIM CONSUMERISM � SELECTED KEY HALAL MARKETS (US$ million at 2009 prices unless stated otherwise) Region/ Country Country Classification Based on Income (1) Muslim Population (`000) (2) Percentage of Population That Is Muslim (%) (2) 24.1 67.2 1.6 13.4 88.2 60.4 96.3 14.9 5.8 91.2 81.2 94.6 95 87.7 77.5 97 76.2 5.2 3 6 5 5.7 2.7 0.5 2 0.8 how Much One Muslim Consumer Spent in 2009 (US$) (3) 1,777 7,134 1,284 625 1,330 3,507 721 17,511 2,116 3,270 8,524 1,729 13,791 7,300 14,573 5,547 20,873 15,646 26,368 26,098 24,345 21,831 23,283 11,820 23,946 32,849 east Asia & Pacific Brunei China India Indonesia Malaysia Pakistan Singapore Thailand Middle east & North Africa Bahrain Egypt Kuwait Oman Qatar Saudi Arabia United Arab Emirates europe Belgium France germany Netherlands United Kingdom North America Canada United States High Income: non-OECD Lower Middle Income Lower Middle Income Lower Middle Income Upper Middle Income Lower Middle Income High Income: non-OECD Lower Middle Income 972,537 269 21,667 160,945 202,867 16,581 174,082 706 3,930 315,322 642 78,513 2,824 2,494 1,092 24,949 3,504 38,112 281 3,554 4,026 946 1,647 4,596 657 2,454 High Income: non-OECD Lower Middle Income High Income: non-OECD High Income: non-OECD High Income: non-OECD High Income: non-OECD High Income: non-OECD High Income: OECD High Income: OECD High Income: OECD High Income: OECD High Income: OECD High Income: OECD High Income: OECD TOTAL OF FOUR REGIONS ABOVE (US$ million at 2009 prices unless stated otherwise) Notes: (1) World Bank Atlas Method based on gross National Income (gNI). Countries with gNI per capita of US$12,196 or more are classified as high income economies (that can be further divided into Organisation for Economic Co-operation and Development members and non-OECD members); followed by US$3,946 to US$12,195 for upper middle income economies; US$996 to US$3,945 for lower middle income economies; and US$995 and less for low income economies. (2) Data from Pew Forum on Religion and Public Life's `Mapping the global Muslim Population' report (2009). (3) Calculation based on World Bank's latest data on household final consumption expenditure (formerly private consumption), which track the market value of all goods (including durable goods) and services purchased by households at current prices. Data used for all countries and regions were for the year 2009, with the exception of Brunei (2006), United Arab Emirates (2007), Singapore (2008), Bahrain (2008), Kuwait (2008), and Oman (2008). (4) Calculation based on Euromonitor International's 2010 survey findings that food and non-alcoholic beverages account for 21% of total consumption expenditure. (5) Calculation based on Euromonitor findings that hotels and catering account for 6% of total consumption expenditure. (6) Calculation based on Euromonitor findings that leisure and recreation account for 5% of total consumption expenditure. (7) Calculation based on Euromonitor findings that health goods and medical services account for 4% of total consumption expenditure. non-Muslim countries such as Thailand and Singapore are doing this aggressively, as they position themselves to tap into the growth potential of the Halal market. In addition, 2010 will also be remembered as the year when the assets of the global Islamic finance industry crossed the USD1 trillion mark, after recording an average annual growth rate of above 20 per cent over the past decade. BRIGhT OUTLOOk IN 2011 The outlook for the global Halal industry is indeed bright in 2011. To begin with, the global recovery is set to continue, buoyed by well-entrenched private demand, still-accommodative policy stances, and resurgent capital inflows especially in emerging economies. According to the latest forecast released by the IMF in January, the world economy would expand at a slightly slower yet stable pace of 4.4 per cent in 2011, faster than previously expected. While activity in the advanced economies is projected to expand by a sluggish rate of 2.5 per cent during 2011�12, growth in emerging and developing economies is expected to remain buoyant at 6.5 per cent. Developing Asia � i.e. China, India, 14 inteRnAtionAL hALAL sMe DiRectoRy : 2011 - 2012 RepoRts Review Altogether, Muslims Spent This Much on Food and Non-Alcoholic Beverages ... (4) 363,014 403 5,843 21,129 56,661 12,212 26,370 2,596 1,746 216,528 1,149 28,514 8,179 3,823 3,342 29,060 15,359 125,226 1,556 19,478 20,582 4,337 8,053 11,409 3,304 16,928 ... This Much on hotels and Catering ... (5) 103,718 115 1,669 6,037 16,189 3,489 7,534 742 499 61,865 328 8,147 2,337 1,092 955 8,303 4,388 35,779 445 5,565 5,881 1,239 2,301 3,260 944 4,837 ... This Much on Leisure and Recreation ... (6) 86,432 96 1,391 5,031 13,491 2,908 6,279 618 416 51,554 274 6,789 1,947 910 796 6,919 3,657 29,816 370 4,638 4,901 1,033 1,917 2,716 787 4,031 ... And This Much on health Goods and Medical Services ... (7) 69,145 77 1,113 4,025 10,793 2,326 5,023 495 333 41,244 219 5,431 1,558 728 637 5,535 2,926 23,852 296 3,710 3,920 826 1,534 2,173 629 3,224 Total (4+5+6+7) 622,309 691 10,016 36,222 97,134 20,935 45,206 4,451 2,994 371,191 1,970 48,881 14,021 6,553 5,730 49,817 26,330 214,673 2,667 33,391 35,284 7,435 13,805 19,558 5,664 29,020 716,176 204,622 170,518 136,414 1,227,730 Indonesia, Malaysia, the Philippines, Thailand, and vietnam � continues to grow most rapidly, but other emerging regions are also expected to continue their strong rebound. This reflects sustained strength in domestic demand in many of the region's economies as well as rising global demand for commodities. Having exceeded precrisis levels for the first time in December 2010, world trade volume is also expected to grow by 7.1 per cent in 2011. Improved economic environments aside, the continuous rise of the global Halal economy will be underpinned by sheer demographics: 1.57 billion of Muslims of all ages are living in the world today, representing 23.4 per cent of an estimated 2009 world population of 6.8 billion, according to the Pew Forum on Religion and Public Life. More than 60 per cent of the global Muslim population can be found in Asia while about 20 per cent is in the Middle East and North Africa. By 2030, the number of Muslim will soar to 2.2 billion, representing 26.4 per cent of the total global population. And it is not just the total size that matters. By 2030, it is expected that 60 per cent of the population of Muslim-majority coun- 15 RepoRts Review inteRnAtionAL hALAL sMe DiRectoRy : 2011 - 2012 harmonisation will happen once a particular standard has won wide acceptance and is adopted by a critical mass; this is something that has yet to happen. For instance, given the growing awareness of health food such as organic and diet food � as well as the willingness of some consumers to pay for health food regardless of price � food companies are launching products that are both healthy and Halal. tries will be under 30 years of age. A younger and presumably richer generation will translate into demand for increasingly diverse and sophisticated products and services that will help them lead the Islamic lifestyle they desire. Traditionally, with growing wealth and higher disposable income, it has been shown that consumers will spend less on basic necessities such as food as a share of their total expenses and fork out more money for non-food products and services. Muslims will be no exception to this rule. This augurs well for development of products and services, ranging from fast food and fashion to music and travel. The prospects of the global Halal industry are, however, not limited to the Muslim consumers since many of the Halal products and services can also be consumed by nonMuslims. global food giant, Nestl�, understands this reality well. One of the first multinationals to pursue the global Halal market, Nestl� has since the 1980