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AN OFFICIAL PUBLICATION OF THE HALAL INDUSTRY DEVELOPMENT CORPORATION (HDC) FOR INTERNAL CIRCULATION

DECEMBER 2008

HALAL IN 2008

THE YEAR IN RETROSPECT


contents: 12: 0 8 • bulletin : : Halal Integrity PLANS TO MAKE HDC A CERTIFICATION BODY The government plans to make the Halal Industry Development Corporation a professional certification body, said Deputy Minister in the Prime Minister’s Department Senator Datuk Dr Mashitah Ibrahim. She said steps are being taken to develop HDC as a pioneer in the local Halal industry. “HDC is not just producing the Halal certification. It is also in charge of industry development, branding and promotion of the Halal goods.” • New Straits Times, Nov 20, 2008. : : Halal Training HDC PREPARING LOCAL SMES FOR GLOBAL HALAL MARKET The Halal Industry Development Corp (HDC) wants to strengthen the participation of local small and medium enterprises (SMEs) in the global Halal industry, said chief executive officer Dato’ Jamil Bidin. He said growing the industry was not merely about certifying the most number of products possible but also ensuring strong infrastructure for it. “The Halal training programmes by HDC are a key part of our efforts in turning Malaysia into a preferred global support and reference centre,” he said. • The Star, Sep 18, 2008

: : Halal Research HDC TO ASSIST UPM’S HALAL PRODUCT RESEARCH INSTITUTE Minister in the Prime Minister's Department Datuk Seri Dr Ahmad Zahid Hamidi said the Halal Industry Development Corporation (HDC) would assist the Halal Product Research Institute of Universiti Putra Malaysia in marketing its research findings internationally. He said the research institute would also be upgraded because it was the biggest Halal product research institute in the world and in line with the aim to turn Malaysia into a global Halal product hub. • Bernama,

• cover story • 2008 : REFLECTIONS AND LOOKING FORWARD TO THE FUTURE • feature • HALAL KNOWLEDGE AT YOUR FINGERTIPS • HALAL & FOOD SAFETY GO HAND-IN-HAND • HDC’S 2009 CALENDAR FOR TRAINING & EVENTS

FROM THE CHAIR They say every great idea has its own time. An official newsletter for Malaysia’s official custodian of the Malaysian Halal industry is an idea whose time has come. The year 2008 was not only an important one for the global Halal industry; it marked a very significant change for the Halal industry in Malaysia, a Muslim country with the world’s most recognised Halal certification and standards. The HDC was handed the task of leading all the Halal Hub functions, including assuming the Halal Hub Unit from JAKIM for carrying on Halal certification both locally and, for the first time, internationally under HDC from April 2008. HDC Vibe intends to chronicle these developments on a quarterly basis over the coming years. The goal will be to increase the understanding of Halal, including its inherent benefits and potential, to all sectors of the industry. We welcome comments and contributions of articles from everybody. Please email them to newsletter@hdcglobal.com. May the coming year be successful and prosperous for you and your family. HDC ViBE Team

Nov 20, 2008.

EDITORIAL

C O N TA C T H D C

: : Halal Certification HDC AIMS TO PENETRATE DEEPER INTO INTERNATIONAL MARKETS The Halal Industry Development Corporation (HDC) aims to penetrate deeper into international markets, especially the United States, Europe and Japan, said managing director and chief executive officer Datuk Seri Jamil Bidin. He said HDC had been aggressively focusing on capturing the international markets since it assumed the responsibility for Halal certification from the Islamic Development Department (JAKIM) on April 17, 2008. “To date, we have issued Halal certifications for 527 companies in the Malaysian market and 16 companies in international markets. About 1,000 applications for Halal certification have been received from the Malaysian market, he added.

PATRON Dato’ Seri Jamil Bin Bidin

GENERAL LINE T +603 7965 - 5555 F +603 7965 - 5500 E refcenter@hdcglobal.com www.hdcglobal.com

• Bernama, Oct 28, 2008.

PUBLISHER HALAL INDUSTRY DEVELOPMENT CORPORATION (HDC) Suite 5.02, Level 5, KPMG Tower, First Avenue, Persiaran Bandar Utama, Bandar Utama, 47800, Petaling Jaya, Selangor Darul Ehsan, Malaysia

MANAGING EDITOR Abdul Halim Ihsan EDITOR Dr. Nor Azman Ngah HDC ViBE TEAM Marina Muhamad Rohaizad Hassan Nora Azlin Zainal Newsletter Committee

TRAINING DEPARTMENT T +603 7965 - 5573 F +603 7965 - 5500 E training@hdcglobal.com DEPARTMENT OF CERTIFICATION +603 8315 - 0200 F +603 8318 - 7044 E certification@hdcglobal.com

DESIGN Kira Yamamoto

HDC Vibe is produced quarterly by Halal Industry Development Corporation Sdn. Bhd. © 2008 HDC. All Rights Reserved. Although every reasonable care has been taken to ensure the accuracy and objectivity of the information contained in this publication, neither the publishers, editors or their employees and their agents can be held liable for any errors, inaccuracies, and/or omission howsoever caused. We shall not be held liable for any actions taken based on the views expressed, or information provided within this publication. This publication may not in whole or in part be copied, reproduced or translated without prior permission of the publisher. Printed in Malaysia by Aktif Lifestyle Sdn Bhd


FOREWORD FROM THE CEO We are pleased to present to you the inaugural HDC ViBE newsletter, an official publication that will chronicle the progress of the Halal Industry Development Corporation throughout its efforts to make Malaysia a global Halal hub. Established in October 2006, HDC was formed with the objective of developing the Halal industry with the view of increasing the growth of the Halal sector as a part of Malaysia’s GDP. With a market demand worldwide for Halal products and services estimated in the trillions of dollars, Malaysia truly has the potential to participate positively in this growing field amidst the increasing consciousness of religious empathy. Malaysia has a strong foundation on which to build our vision of a Halal hub. We have the world’s most recognised Halal standard and logo and a new streamlined and efficient certification process. Malaysia is already a regional hub for many large Halal food producers, and we have our own strong base of local SME’s. Malaysia also plays host to the top Halal industry trade events, and is already seen as a primary force in driving the Halal market into the next phase of growth. In addition, Malaysia has excellent human resources in academic and scientific research and knowledge-based activities that can keep us at the cutting edge of this rapidly expanding market. By its very definition, the Halal related activities in Malaysia cover a diverse array of stakeholders from both the public and private sectors. From the outset, HDC’s vision has involved providing a common platform and focus for all concerned to achieve the vision of making Malaysia a key player in this dynamic new market. The establishment of HDC was to mirror this aspiration, and to facilitate and coordinate the development of the many related industries and support systems. To add further value to the services offered to the public and the private sectors, HDC is pleased to announce our very first issue of HDC’s official newsletter. We look forward to your feedback and comments, and we will continue to dedicate our efforts to serve the Halal industry. We are confident that there will be more successes and milestones for HDC Vibe and I wish to call on all parties to rally support for the continued development of the Halal industry.

CALENDAR HDC will participate in the following events. Come and meet us to know more about our services.

: : BARCELONA, SPAIN : : 10 – 12 FEBRUARY 2009 International Travel Catering Association, (ITCA 2009) : : KUALA LUMPUR, MALAYSIA : : 20 – 22 FEBRUARY 2009 Herbal World 2009 MATRADE Exhibition & Convention Centre : : DUBAI, UAE : : 23 – 26 FEBRUARY 2009 Gulfood 2009 - The 14th Gulf Food, Hotel and Equipment Exhibition and Salon Culinair : : TOKYO, JAPAN : : 3 – 6 MARCH 2009 Foodex Japan 2009 : : LONDON, ENGLAND : : 15 – 18 MARCH 2008 IFE 2009 - The 34th International Food and Beverage Exhibition : : PARIS, FRANCE : : 25 – 26 MARCH 2009 Foods & Goods 2009 : : TASHKENT, UZBEKISTAN : : 25 – 27 MARCH 2009 World Food Uzbekistan 2009 - The 9th Uzbekistan International Exhibition - Food, Drinks, Packaging and Food Technologies

Write to us about your event. Send your email to newsletter@hdcglobal.com.

DATO’ SERI JAMIL BIN BIDIN Chief Executive Officer Halal Industry Development Corporation HDC ViBE : 1


C O V E R S TORY

2008 T

he year 2008, especially in its second half, has brought us all a variety of new economic uncertainties, with fluctuating petroleum prices and a series of financial meltdowns and industry bailouts from all corners of the globe. While Malaysia has fared better than many countries, it makes us realise how interdependent the world markets have become, as problems from the other side of the world can have an effect on our own neighbourhoods. For the Halal Industry Development Corporation (HDC) 2008 has also marked our second full year in operation, and the closing year has allowed us to take a moment to reflect on the achievements of the past year, and to look ahead to the challenges and goals of the future.

HDC – THE FIRST OF ITS KIND Tasked with the responsibility to realise the vision of making Malaysia a major Halal hub, HDC was established primarily to facilitate and coordinate Malaysia’s push in claiming a significant stake within the lucrative global Halal market. This presented us with immediate and unprecedented challenges. In 2006, the Halal market was really just starting to come into focus as an entity in its own right, with its own set of defining parameters. Huge in its scope, the Halal sector not only covers the full farm-to-fork supply chain, but also requires the application of Syariah law to the complex and highly technical –and increasingly globalised– food industry and its related food sciences. Furthermore, HDC was the first corporation of its kind to tackle this challenge, and in this respect the formation of HDC was in itself an indication of Malaysia’s pioneering status within the global Halal market. So, from the start, we headed into uncharted waters, proudly carrying the flag of Malaysia’s Halal Hub aspirations.

MASTERMINDING THE MASTERPLAN Our primary objective was to develop a comprehensive Masterplan for the development of our national Halal industry. This was a complex and arduous undertaking, as the array of stakeholders from both the public and private sectors, was vast, and all aspects and components had to be given their due consideration. HDC ViBE : 2

Finally, in May 2008, the Cabinet approved the Halal Hub Masterplan that would act as a roadmap for guiding the development of our national Halal industry. The Masterplan detailed objectives, goals and plans covering Halal certification, sectoral development, Halal integrity issues, implementation timeframes and responsibilities in developing the local Halal industry. While the Masterplan acts as a guide, it is naturally still subject to revisions and variations over time, as the circumstances and the dynamics of the market dictate.

S T E P P I N G U P T O T H E P L AT E One of the major milestones for HDC was the decision by Cabinet to approve the handing over of the domestic and international Halal certification functions from the Islamic Development Department (JAKIM). This change was initiated in May 2008 and was completed within two months. HDC absorbed JAKIM’s Halal Hub unit, and took over a staff of sixty additional personnel involved in the procedures of Halal auditing and certification. While Malaysia’s certification process has always been world-class, market demand for Halal certification had created a backlog of over 300 companies waiting for certification, so our new unit was under immediate pressure to perform. With hard work, and by the grace of Allah, since July 2008 we have managed not only to clear this backlog, we have issued a total of over 525 certificates to domestic companies. Furthermore, HDC has entered into the complex task of certifying overseas companies, and has issued certificates to 16 companies to date. In addition, with HDC’s streamlined operating procedures now in place, we have cut the average time for certificate issuance from 100 days down to just 30 days, an improvement of over 60% in speed and efficiency.

FROM CONCEPTION TO I M P L E M E N TAT I O N With Halal certification now under our hand, HDC set about implementing other key initiatives outlined in the Masterplan. Clarifying the way forward for Malaysia to become a major Halal hub by 2020, the Masterplan sets achievement milestones, envisaging three phases of development within the next 12 years. Phase I: 2008–2010 will be to establish

REFLECTIONS AND LOOKING FORWARD TO THE FUTURE

WHILE HALAL INTEGRITY AND INDUSTRY DEVELOPMENT REMAIN THE BACKBONE AND MAINSTAY OF THE HDC’S HALAL HUB MASTERPLAN, IT HAS ALSO EMBARKED ON OTHER STRATEGIC INITIATIVES TO ACCELERATE THE REALISATION OF MALAYSIA’S GLOBAL HALAL HUB VISION.


HDC’S MILESTONES FOR 2008 JAN 2, 2008 HDC started doing international inspections with a certification trial run for Thailand-based Morokot Industries PCL, producers of palm oil based products. APRIL 2, 2008 Prime Minister announced the mandate given by the Cabinet for HDC to take over from the Islamic Development Department (Jakim) the Halal hub functions and responsibilities, effectively making HDC the sole issuer of Halal certificates in Malaysia. APRIL 17, 2008 Official handing over ceremony of Halal certification from Jakim to HDC. Officers from the Halal Unit of JAKIM were absorbed into HDC while the existing laboratory in Cyberjaya serves as the centre for scientific researches, especially in matters concerning genetic engineering. APRIL 25, 2008 Certification for Colgate-Palmolive Thailand was completed. M AY 2 , 2 0 0 8 The first international Halal Awareness programme was conducted in Melbourne, Australia. Approximately 17 local industry professionals attended the training program. M AY 1 8 – 1 9 , 2 0 0 8 HDC hosted for the second time running the 3rd World Halal Forum (WHF 2008) at Kuala Lumpur Convention Centre, Kuala Lumpur. M AY 1 9 , 2 0 0 8 Dato’ Jamil Bidin, chief executive officer of HDC presented Colgate-Palmolive Thailand with its first Halal international certification during the WHF 2008 Gala Dinner, witnessed by the Malaysian Prime Minister Dato’ Seri Abdullah Haji Ahmad Badawi. M AY 2 0 – 2 4 , 2 0 0 8 HDC participated in the 5th Malaysian International Halal Showcase (MIHAS 2008). MIHAS, the world’s largest Halal trade fair, was held at the Matrade Exhibition Centre in Kuala Lumpur. Over 41,862 visitors from 69 countries visited the 5-day fair. JUNE 23, 2008 A special seminar was organised by HDC and chaired by Dato’ Dr Mashitah Ibrahim, Deputy Minister in the Prime Minister’s Department to inform all state religious agencies and Muslim consumer groups of the roles and functions of HDC. AUGUST 17 – 27, 2008 Two teams from HDC’s Halal certification division departed for India on an inspection mission of local Halal abattoirs and slaughterhouses. Organised by the Department of Veterinary Services Malaysia, the teams checked more than 10 premises during the 10-day mission.

AUGUST 25 – 29, 2008 HDC held its second international training program in Istanbul, Turkey. More than 20 industry professionals attended the specialised Halal Auditors Training programme. SEPTEMBER 17, 2008 An MOU signing ceremony was held to commemorate the partnership between HDC and Mydin Mohammed Holdings Berhad. Under the MOU, HDC will train at least 300 of Mydin’s SME vendors and suppliers. A total of three courses on the Halal Industry Programme (HIP) and one on the Halal Awareness Programme (HAP) will be conducted for the next 12 months. HDC’s annual Buka Puasa for the orphans was also held on this day at the Shangri-La Hotel Kuala Lumpur. OCTOBER 8 – 13, 2008 HDC conducted its international Halal certification and training programme in conjunction with the Qihiangi International Halal Food and Fair Products in Qihiangi, China. Over 160 food manufacturing professionals attended the programme. OCTOBER 28 – 29, 2008 HDC hosted its first International Halal Certification Dialogue at the Kuala Lumpur Convention Centre, bringing together some of the world’s leading researchers and entrepreneurs in the global halal industry. Over 300 Halal certification personnel representing some 47 Halal authorities and Islamic bodies from 23 nations across the world were represented at the two-day dialogue. Chief executive officer Dato’ Jamil Bidin also announced during the event that HDC have to date issued Halal certifications for 527 local companies and 16 international-based companies, since assuming the responsibility for Halal certification from JAKIM on April 17, 2008. He added that about 1,000 applications have so far been received. NOVEMBER 3, 2008 HDC conducted its first SME Training Programme for Mydin at its head office in Petaling Jaya, having to date conducted three sessions altogether. NOVEMBER 20, 2008 Minister in the Prime Minister’s Department Datuk Seri Dr Ahmad Zahid Hamidi Zahid announced that HDC would assist the Halal Product Research Institute of Universiti Putra Malaysia in marketing its research findings internationally, in line with the aim to turn Malaysia into a global Halal hub. NOVEMBER 27, 2008 HDC conducted the HDC Act Workshop, to acknowledge the domestic Halal logo issued by the state’s Islamic councils and departments. This is based on the understanding that all matters concerning Islam is under the Rulers (Sultans), therefore placing Halal issues under the state’s jurisdictions.

Malaysia as a global leader of Halal integrity. This includes issues relating not only to Halal standards, auditing and certification, but also to position Malaysia as leaders in Halal industry-related knowledge, including academic and scientific research as well as market intelligence. In short, to become a one-stop Halal sector reference centre. In Phase II: 2010–2015 Malaysia should establish itself as the preferred location for Halal-related industries. This will involve the creation of dedicated Halal industry parks, and a package of incentives to make Malaysia’s value proposition a clear market leader in this field. During Phase III: 2015-2020, the objective is to broaden the footprint of home grown companies by not just building up our own SME’s to be competitive in regional markets, but also to develop our leading players to be world-class brands in the global Halal market. If these goals can be achieved by the year 2020, Malaysia will have positioned itself as a global Halal hub. To realise this vision, HDC has identified two development objectives for Malaysia. Firstly, Malaysia will become a global hub in Halal know-how, focussing on R&D and best practices, processes, standards and certification. Secondly, in order to create greater economic impact, Malaysia will focus on accelerating growth in a number of consumer goods industries that are relevant to our Halal value proposition. These include specialty premium processed food, organic and natural personal care products and also becoming a major supplier for the fast growing market for Halal ingredients.

MILESTONES In charting our progress in the three main zones of activity, i.e. Halal Integrity, Industry Development and Branding & Promotions, we can see that HDC has reached several significant milestones on our journey toward fulfilling our Halal Hub vision. Just to name a few:

HALAL INTEGRITY • The appointment of a food scientist as vice president and head of the Halal Integrity Division. • Assumed JAKIM’s Halal Hub Unit with the absorption of over sixty personnel. As a result, HDC sped up the certification process from 100 days to just slightly over 30 days. It also cleared over 300 backlogged cases. • Currently in the final stages of concluding an agreement with the autonomous region of Ningxia, China to establish a local certification centre. • Currently in the process of establishing a global reference centre which is expected to be completed by first quarter 2009, subject to the clearance of related issues such as funding, software development and intellectual property rights. • HDC is also finalising the contents for the publication of a Halal Encyclopeadia with Modern Compendium of Halal covering areas such as Halal trade, certification, fatwas, etc. • Obtained a fatwa database from a local university and is currently in the midst of organising, collating and publishing fatwas HDC ViBE : 3


C O V E R S TORY relating to Halal food preparation. • To quickly disseminate Halal knowledge, HDC is working in collaboration with Asia E University to deliver Halal courses online. • HDC is working on a Virtual Library project with Open University to cater for the content needs of industry players, regulators, students and academicians. • A project to identify Halal and Haram substances for the pharmaceuticals industry is also in progress. When completed, it will place Malaysia as the leading authority of Halal ingredients for use in the chemical, pharmaceutical, personal care and food industries.

I N D U S T RY D E V E L O P M E N T The setting up of a training division presently manned by three senior executives. Training programs have been conducted both locally and internationally over the past year. These include: • The setting up of a training division presently manned by two managers and five senior executives. • Training programmes have been conducted both locally and internationally over the past year. These include: • A Halal auditor training programme in Turkey • MOU with Mydin to train over 300 of its vendors and suppliers • Training personnel from a Middle Eastern airline company, which has plans to establish a regional hub for Halal airline operations. • HDC has also established a formal working relationship with the IndonesiaMalaysian-Thailand Growth Triangle (IMT-GT) Implementing Technical Group (ITG) on Regional Halal Development. As a result, a Malaysian Joint Business Council was set up with the Malay Chamber of Commerce and Industry to facilitate initiatives with regards to Halal including imports/exports exercise, infrastructure, including the promotions of Halal Parks as well as entrepreneur development. • HDC is appointed as the Chairman of Halal Development Initiatives Committee for the 3rd Industrial Master Plan (IMP3). • HDC acts as the secretariat for tender specifications for Halal Trace & Track System under the Implementation of Halal Traceability (Labuan Corporation). • HDC acts as a committee member for the Halal Pipeline Programme (HPP) for the development of Halal logistics standard headed by Department of Standards Malaysia in collaboration with the Muslim Consumer Association Malaysia (PPIM) and Research Institute of Standard in Islam (RISIS) and Yayasan Ekonomi Sejagat (YES). Other industry development programmes include: • Specialised SME development initiatives • Improvements in certification processes • Investor support with a tollfree number in place • Agribusiness initiative with Dubai Holding and Dubai Islamic Investment agency • Working towards a National Halal Laboratory • Developing anchor companies HDC ViBE : 4

WE HAVE A STRONG FOUNDATION, AND MANY RESOURCES AT HAND, AND DESPITE THE CHALLENGES AND THE INCREASING COMPETITION, AT HDC WE ARE CONFIDENT THAT OUR COLLECTIVE VISION CAN BE REALISED.

• Establishing specialised incentives for Halal park operators and industry players • The promotion of all Halal parks in the country, and • Undertaking awareness programs through nationwide road shows.

BRAND DEVELOPMENT While Halal Integrity and Industry Development remain the backbone and mainstay of the HDC’s Halal Hub Masterplan, we also embarked on other strategic promotional and branding initiatives to accelerate the realisation of Malaysia’s Global Halal Hub vision. These include: • Hosting the World Halal Forum; this has helped to position Malaysia as the primary location for the discussion and development of the global Halal industry. • WHF Industry Dialogues, also hosted by HDC, have been held in various locations around the world. High profile participation in these events has helped to keep Malaysian initiatives in the forefront of global Halal activities, and strengthen our international Halal image • HDC Halal Roadshows have been carried out around the country, raising awareness among businesses and the public about the importance of Halal to Malaysia, and to highlight the new business opportunities that are available in the Halal sector. • The Malaysian International Halal Showcase was participated by HDC in yet another successful installment in May 2008. The five-day event held at the Matrade Convention Centre attracted the active participation of 507 exhibitors from 25 countries and attracted a total of 41,862 visitors from 69 countries. Over 55% of these visitors were trade buyers and the who’s who from the food and beverage industry in ASEAN countries.

LOOKING BACK AND L O O K I N G F O RWA R D Taken overall, the last two years have been immensely challenging and equally rewarding. The task at hand, to realise Malaysia’s ambition to be a leader in the global Halal market is a brave new agenda. We have a strong foundation, and many resources at hand, and despite the challenges and the increasing competition, at HDC we are confident that our collective vision can be realised. Uncertain global market conditions seem likely to continue, and these will undoubtedly affect many industry players over the coming months, especially SME’s within the Halal food manufacturing and processing sector. However, uncertain times are also the ideal opportunity achieve one’s objectives by holding to a strong intention, following a clear strategy and remembering that - especially in the Halal industry - Allah’s help is always close at hand. By making the best use of our excellent resources, with good will and cooperation from all parties, a sound institutional framework and a well-focused Masterplan to guide the implementation, HDC is confident that Malaysia will be fully able to realise its objectives of becoming a global Halal hub in due time.


H D C E X T RA GET TO KNOW HDC THE HALAL KNOWLEDGE CENTRE PORTAL Halal Knowledge at Your Fingertips

In its efforts to establish Malaysia as a Global Halal Reference Centre for information, research, opinion, education and judgment for issues relating to Halal and the Halal industry, HDC has commissioned a comprehensive online portal for this purpose. The Halal Knowledge Centre Portal will house and manage an Information and Communications Technology (ICT) infrastructure capable of handling all relevant Halal content.

To this effect, a comprehensive database of Halal-related content is currently being compiled for online availability. A network of industry and Shariah experts on Halal is also being created to provide content that covers various aspects related to Halal. The objective is to provide credible in depth information for professionals, scientist, academics, researchers, and other experts on Halal matters for the benefit of R&D, case studies and latest technology development in Halal.

APPOINTMENTS & PROMOTIONS

Aside from the basic information on Halal including the definitions, guidelines and fatwa archives, it will also offer key information for use by the industry, such as an industry database, industry directory and policy regulations, as well as useful information for the consumers. The market intelligence section will house articles and reports that relate to the industry, while the expert guidelines section will offer presentation materials for use by the industry professionals.

A final section called HDC Publications will house guidelines for Halal park management as well as an online, e-browsable version of this HDC Vibe newsletter. The HDC Halal Knowledge Centre Portal is now live and ready for viewing. It is however only 60% complete and is being populated with content. It is expected to be fully stocked by third quarter 2009. View the HDC Halal Knowledge Centre Portal at www.knowledge.hdcglobal.com

• CONFERMENT OF DISTINCTION HEARTIEST CONGRATULATIONS TO Dato’ Seri Jamil Bidin for being conferred the Darjah Gemilang Pangkuan Negeri (D.G.P.N) in conjunction with the 70th birthday of the Yang Di-Pertua Negeri Pulau Pinang on 12th July 2008.

Abdul Halim Ihsan was appointed HDC’s Strategic Advisor with effect from 15 May 2008

Siti Norbaya Zainuddin was appointed Vice President, Corporate Affairs with effect from 10 June 2008

Alex Iskandar Liew Abdullah was appointed Vice President, Branding & Promotions with effect from 1 August 2008

Zalizam Muid was appointed General Manager, R&D and Innovation with effect from 8 August 2008

Mohd Reza Shafiee was appointed HDC’s Vice President Operations with effect from 28 November 2008

Nicholas Shariff Mazlan Collins was appointed Vice President, Industry Development with effect from 20 May 2008

Abdul Hakim Alias was appointed General Manager, International Business Relations effective 21 July 2008

Mohd Fahmi Sheikh Omar was appointed General Manager, Certification beginning 3 November 2008

HDC ViBE : 5


FE AT U R E Halal compliance is really a guarantee of safety, hygiene and quality assurance of the highest standards.

HALAL AND FOOD SAFETY GO HAND-IN-HAND ANYONE WHO FOLLOWS THE NEWS CAN RECOGNISE THAT FOOD SAFETY IS ONE OF THE MOST IMPORTANT ISSUES IN THE WORLD TODAY. THE INCREASING GLOBALISATION OF THE FOOD INDUSTRY MEANS THAT FOOD SAFETY HAS BECOME A COLLECTIVE CONCERN AND RESPONSIBILITY, BECAUSE THE FOOD WE ARE ALL EATING IS VERY LIKELY TO HAVE BEEN GROWN AND PROCESSED IN SEVERAL OTHER COUNTRIES. HDC ViBE : 6

Looking back over the years, we have seen how food safety issues can have a profound impact on a nation’s economy. For example, the emergence of BSE (Mad Cow disease) during the 1980’s totally decimated the British beef industry, and later had a huge impact on Canadian and US export markets worldwide. It has taken years for businesses to recover from incidents such as these, and the negative effects can be very long lasting. Food can become contaminated at any stage of the production process – from

animal feed, raw materials, during processing, handling or transportation, during storage, display, preparation and cooking. So it really requires everyone involved in the supply chain, from start to finish, to ensure the safety of the food that will be eaten by people. Whether your business is food production and manufacturing, supplying ingredients and raw materials, logistics, retail, food service, catering or hospitality, if it involves food, then safety has to be at the top of this list of priorities, now more than ever.


Any food safety incident, whether caused by bacteria, contamination, additives or poor hygiene, will inevitably have a profound negative impact on that company’s sales, consumer confidence and brand value and even national image. Worse than that, food contamination will cause illness and even death to the unsuspecting members of the public who have consumed the food. A severe incident will inevitably have a knockon effect within the local economy; it can even create ripples that can have a negative affect on markets

and it is vitally important that our food producers, big and small, recognise that Halal is not just about fulfilling religious obligations. Halal compliance it is really a guarantee of safety, hygiene and quality assurance of the highest standards. Consumer awareness, not just at home, but also around the world, is increasingly focussed on food safety issues. Whether it is lower income families shopping on a budget, or more affluent consumers looking for diversity and quality, all customers have the right to assume that the food products they purchase are safe for consumption.

competitive advantage to food producers and manufacturers. The Malaysian Halal Standard MS1500:2004 is arguably the best in the world; but it must be used in conjunction with the standard for Food Hygiene (MS 1514) as well as the standard for HACCP (MS 1480). These combined standards cover the safety aspects that are the internationally recognised pre-requisites for quality assurance. Together with the Halal standard, this set of guidelines will guarantee that

advantage to Malaysian food manufacturers will be. The convergence of the worldwide concerns about food safety with the heightened global awareness about Halal has created a unique opportunity for Malaysia to play a key role in shaping the markets of the future. Widespread internet access, more information on labels, increases in food allergies and special dietary requirements all have contributed to a new level of consumer awareness about food quality and safety. Along with new levels of Halal awareness and increasing consumer demand for high quality Halal-certified

in other parts of the world. And it certainly provides your competitors with the perfect opportunity to step in and take over your market share. So it is really not surprising that hygiene and safety are taking centre stage in importance for the food industry. For those of us in the Halal industry, the issues of food safety and hygiene are of paramount importance, as they are the underlying foundations of the integrity of our Halal products. An unsafe product is – by definition - not Halal,

Any company that breaks this basic trust stands to incur not only extra expense from recalls or fines, but more importantly they stand to lose, almost overnight, the customer confidence that may have taken decades to build up. As Halal products come increasingly into the spotlight in domestic, regional and international markets, the implied quality assurance of the Malaysian Halal symbol gives a

in terms of safety, hygiene and Halal compliance, Malaysian products can rank among the best in the world. Malaysia’s Halal symbol is the most recognised in the world. We must build on this strong foundation to ensure that our Halal logo also stands for food hygiene and safety. The more we can build on this, the stronger Malaysia will become in international markets, and the greater the competitive

products, the market is primed for the arrival of safe, healthy Halal food products. Malaysia is in an excellent position to take advantage of this new market development, and HDC is fully committed to ensuring that our new Halal guidelines, training programmes, incentive schemes and certification procedures can give Malaysian food producers that competitive edge that they need to be market leaders. HDC ViBE : 7


HALAL GLOSSARY • AMANAH : Task / Responsibility • FATWA : An authoritative legal opinion or judgement made by a faqih

ET CETERA

• FAQIH: A man learned in knowledge of fiqh • FIQH: Science of application of the Shariah • HALAL : Permissible / Lawful • HARAM : Prohibited / Unlawful

For daily news updates on the Halal industry go to www.knowledge.hdcglobal.com.

• MUSHBOOH (Syubhah) : Suspected / Doubtful • NAJIS : Impurity / non-Halal things that might contaminate Halal food. This includes animals that are not permissible, such as pig; or Halal food that comes into direct contact with things that are non-Halal. • SHARIAH : Islamic jurisprudence

HDC’s Halal Training Programme

• TOYIBBAN : Wholesome and pure • ULAMA’ : Scholar (s) • ZABIHAH : Ritual slaughter in Islam

H A L A L S AV V Y

HALAL AWARENESS PROGRAMME (HAP)

TAKING THE LID OFF GELATINE

19 - 20 JANUARY 2009 HAP02 – UNDERSTANDING THE HALAL INDUSTRY PETALING JAYA 2 FEBRUARY 2009 HAP03 – MS1500:2004 - THE HALAL FOOD STANDARD PETALING JAYA

HALAL INDUSTRY PROGRAMME (HIP) 10 – 11 FEBRUARY 2009 HIP01 – BEST HALAL PRACTICES IN THE FOOD INDUSTRY PETALING JAYA

24 – 25 FEBRUARY 2009 HIP02 – EFFECTIVE HALAL OPERATIONS IN THE FOOD INDUSTRY PETALING JAYA 3 – 5 MARCH 2009 HIP03 – HALAL INTERNAL AUDITING WORKSHOP PETALING JAYA CALL +603 7965 5573 OR EMAIL US AT TRAINING@HDCGLOBAL. COM TO BOOK YOUR SEAT.

BOTTOM LINE

:: USES Gelatine is used in many food products like jellies, ice cream, confectionery, cookies, and cakes. It is also used in non-food products, including medical products and in veterinary applications. :: SOURCE Gelatine can be from halal or haram sources. Common sources of gelatine are pigskin, cattle hides, cattle bones, and, less frequently, fish skins and poultry skins. For gelatine from cattle skins, cattle bones, poultry skins, or other permitted animals to be halal, the animals have to be slaughtered according to Islamic rites. : : I D E N T I F I C AT I O N In general, a product label does not indicate the source of the gelatine, so halal consumers normally avoid products containing gelatine unless they are certified halal.

SPECIAL INCENTIVES FOR HALAL INDUSTRY ON OFFER > FOR HALAL PARK OPERATORS, HALAL LOGISTICS OPERATORS & HALAL INDUSTRY PLAYERS

:: PRODUCTION Gelatine is derived from collagen, an insoluble fibrous protein that occurs in vertebrates and is the principal constituent of connective tissues and bones. Gelatine is recovered from collagen by hydrolysis.

To boost the attractiveness of Malaysia’s Halal industry for investors, the Malaysian Government has introduced a specific incentive package for businesses that qualify for the “Halal Malaysia” status. To leverage on Malaysian Halal know-how and start participating in the growth of the local and global Halal industry, kindly log on to www.hdcglobal. com/incentives or call our hotline at +603 7965 – 5555.

: : H A L A L A LT E R N AT I V E Several Malaysian companies produce Halal gelatine as raw ingredients. Request for HDC’S 2008/2009 HALAL DIRECTORY by emailing your details to refcenter@hdcglobal.com. Act now before its too late!

HDC ViBE : 8


N E WS & UPDATES

12:2008

HDC CEO Dato’ Seri Jamil Bidin exchanging documents with JAKIM’s director general Datuk Wan Mohamad Sheikh Abdul Aziz during the Halal functions hand over ceremony.

Participants at HDC’s inaugural International Halal Certification Dialogue 2008 held in October 2008 in Kuala Lumpur.

Dato’ Seri Jamil Bidin exchanging documents with Mydin’s managing director Datuk Ameer Ali Mydin to train 300 of their suppliers and vendors on Halal.

• Halal Malaysia MALAYSIA HAS BIG POTENTIAL TO BE GLOBAL HALAL PRODUCT MANUFACTURER Malaysia has big potential to be a Halal product manufacturer following the global recognition, especially from Islamic countries, said International Trade and Industry Minister Tan Sri Muhyiddin Yassin. He said the world has recognised Malaysia as an exemplary Islamic country and the country has the opportunity to market food and non-food products with confidence. “We hope our Halal products can penetrate the global market and the confidence of societies worldwide in internationally certified Halal standards will facilitate this.” - Bernama, Dec 6, 2008

to prevent governments and consumers from being defrauded, said Jalel Aossey, director of the US-based Midamar Corporation. He said, “Inspection teams can be sent to the various countries where food is being produced to allow it to be inspected, at that country’s cost. This is nothing when you consider the huge dollar volume of food products exported to the UAE and other Gulf countries. Malaysia has set the stage for the rest of the world to follow.” - Bernama, Nov 14, 2008

MS 1500:2004 for the production, preparation, handling and storing of Halal food which was being reviewed, the government would also introduce a new standard for cosmetic and personal care products.- Bernama, Oct 25, 2008

• Halal Funds THAILAND B2.4 BLN FOR HALAL LENDING The Islamic Bank of Thailand will set aside 2.4 billion baht next year to help finance local Halal food businesses, mainly to small and medium enterprises (SMEs) for corporate and consumer hire-purchase products. - Bangkok Post, Nov 21, 2008 • Halal Integrity TAKE A LEAF FROM M’SIA ON HALAL FOOD STANDARDS, SAYS EXPERT The United Arab Emirates (UAE) and other Middle East countries should emulate Malaysia in regulating Halal food production

• Halal Trade MALAYSIAN TRADERS URGED TO GRAB OPPORTUNITIES IN SAUDI ARABIA Traders from Malaysia should grab the huge opportunity to market their Halal food products in Saudi Arabia, in light of the growing demand there. “Obviously there is a market,” assured Hidayat Abdul Hamid, Malaysian Consul General to Saudi Arabia. - Bernama, Nov 20, 2008

• Halal Certification GOVT SETS NEW STANDARD FOR HALAL PRODUCTS The government continues to take on a proactive approach to meet demands from Muslim consumers by setting a new standard for Halal (permissible in Islam) products, Minister in the Prime Minister’s Department Datuk Seri Dr Ahmad Zahid Hamidi said today. He said besides the Standard

• Halal Partnership UZBEKISTAN CAN USE MALAYSIA AS SPRINGBOARD TO ASEAN Uzbekistan can use Malaysia as a springboard to export its products to the Asean market, and vice versa, said Prime Minister Datuk Seri Abdullah Ahmad Badawi. Besides developing agriculture and oil and gas industries, cooperation should also extend to tourism and Halal. – Bernama, Nov 17, 2008 • CSR MALAYSIA OFFERS SCHOLARSHIPS TO NINGXIAN-HUI STUDENTS FOR HALAL STUDIES The signing of a mutuallyacknowledged halal food agreement between Malaysia and the Ningxia Hui autonomous region will generate much business prospects in the future. In anticipation of this, two local universities, namely the Universiti Tun Abdul Razak (UNITAR) and the Universiti Putra Malaysia are offering five scholarships each to NingxianHui students for postgraduate studies in halal management. – Bernama, Sept 13, 2008


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