World Halal Forum 2006 - Executive Review by KasehDia Sdn Bhd

WORLD HALAL FORUM EXECUTIVE REVIEW 2006

THE PREMIER GLOBAL HALAL INDUSTRY EVENT • KUALA LUMPUR, MALAYSIA • 8-10 MAY 2006

the

A S PE C I AL E D ITI O N OF T H E H A LA L J OU R N A L | PP 13884/10/2006

P P 13884/10/2006

E X E C U T I V E R E V I E W

ER cov2.indd 2

4/25/06 5:53:32 AM

The World Halal Forum

“the global halal market - an industry perpspective”

8 - 10 MAY 2006 The Crowne Plaza Kuala Lumpur, Malaysia

Platinum Sponsor

Gold Sponsor

Silver Sponsors

Sponsored By

Official Media

Media Partner

��

Official On-line Media

Official Airline

Official Travel Agent

Official Hotel

Partner Event

Organised By

Managed By

Supported By

Prime Minister’s Department

www.worldhalalforum.org www.worldhalalforum.org info@worldhalalforum.org info@worldhalalforum.org WHF ER.indd 2

teltel +6+6 0303 6203 62031025 1025

fax +6fax 03 +6 6203 03 6203 40724072 4/25/06 12:48:15 AM

The Premier Global Halal Industry Event

WHF ER.indd 3

4/25/06 12:48:55 AM

KMT-MT-256-06-29.7X42cm alt-OL.i1 1

4/21/06 3:10:42 PM

LB_206785_Halal_M49_IBM2 LB_206785_Halal_M49_IBM2 22/4/06 22/4/06 1:16 1:16AMAM Page Page1 1

SSUURRPPRRIISSIIN NGGLY, LY, TTH HEE M MO OSSTT CCO OM MFFORTA ORTABBLLEE PPLLAACCEE O ON N EEAART RTH H iiss OF OFTTEEN NN NOT OT O ON N EEAART RTH H. .

WO W

Star-ra Sta

have hav b

series ser

your you d

youyou a

explor exp

OOUURR NNEEW W FFI IRRSSTT

&&BBUUSSI INNEESSSS CCLLAASSSS

Step Stepinto intoyour yourcastle castleininthe theair. air.Up Uphere, here,work worklikes likestotoplay. play.And Andstress stresssleeps sleepsthrough throughthe theentire entirejourney. journey. Come Comemealtime, mealtime,you youdon’t don’teat. eat.Instead, Instead,you youdine. dine.And Andatatbedtime, bedtime,your yourflatbed flatbedlets letsyou youstretch stretchout outand and drift driftinto intoslumber. slumber.Malaysia MalaysiaAirlines AirlinesNew NewFirst Firstand andBusiness BusinessClass. Class.Welcome Welcomeononboard. board.Sweet Sweetdreams. dreams.

All All features features available available on on First First andand Business Business Class Class on on selected selected Boeing Boeing 747 747 & 777 & 777 flights. flights. ForFor reservations reservations andand flight flight schedules, schedules, please please callcall Malaysia Malaysia Airlines Airlines at 1at300 1 300 88 88 3000, 3000, your your travel travel agent agent or log or log on on to www.malaysiaairlines.com to www.malaysiaairlines.com

ads.indd 2

4/25/06 1:11:51 AM

03930-World Halal Forum

First Class

World’s best cabin Staff For 4 consecutive years

WORLD DINING Star-rated chefs from across the globe

To our crew, caring is second nature.

have been brought together to create a

NEW sleeper SEATS

series of signature dishes exclusively for

Stretching out 180 degrees through

us to serve with sincerity. Perhaps that’s

your dining pleasure. It’s our way of giving

hundreds of variable positions, it transforms

why our crew have been voted World’s

you a taste of the world even as you

into the most comfortable position in the

Best by Skytrax UK for the last four

explore the world.

world. Yours. Sit, sink in, slumber.

consecutive years.

Thanks to an age-old tradition that teaches

Business Class

IN-FLIGHT ENTERTAINMENT SYSTEM 3000i 200 music CDs, 40 movies on-demand,

MOOD LIGHTING Over 200 variable shades of colour and light. To help your body sleep through time zones and awaken to sunrise.

seat back e-mail and text messaging for global connectivity. The 3000i is the most advanced IFE system on earth. And in the air.

ads.indd 3

4/25/06 1:12:27 AM

Nestle1.pdf

CMY

4/21/06

10:46:14 PM

Nestle2.pdf

CMY

4/21/06

10:40:25 PM

WHF EXECUTIVE REVIEW - YEAR 2006 8

Contents Message by Prime Minister of Malaysia, Dato’ Seri Abdullah bin Haji Ahmad Badawi

Message by Chairman of the World Halal Forum, Khairy Jamaluddin

The World Halal Forum

Halal: The Market, the Industry, the Future

Pushing Islamic Banking to the Forefront of Halal

A Port with a Halal Vision

Regional Logistic Hub for Halal

A Malaysian Pioneer

Halal & Branding

THE SPEAKERS Badlisyah Abdul Ghani, Commerce International Merchant Bankers (CIMB) Islamic

Captain C.J. Weststrate, Port of Rotterdam

Tan Sri Datuk G. Gnanalingam, Westports Malaysia Sdn Bhd

Bahri Ouzariah, Innovation Développement En Nutrition Animale (IDENA)

Datuk Ibrahim Hj Ahmad Badawi, Dewina Holdings Sdn Bhd

Associate Professor Dr. Winai Dahlan, Halal Science Center

Dato’ Dr Mohd Nordin Mohd Nor, PRIMA Agri-Products Sdn Bhd

Hilmi Mohd Nashir, MISC Integrated Logistics Services Sdn Bhd (MILS)

Hajj Abdalhamid Evans, KasehDia Sdn Bhd

Alain Marchand, SICPA Holding SA

Sheikh Saleh Lootah, Al Islami Foods

Professor John Edwards, Murdoch University

Dr. Habib Mnasria, McDonalds Middle East

Sullivan Joseph O’Carroll, Nestlé Malaysia

Rashid Kadimi, Allanasons Limited

Terry Babbs, Tesco

Mohamed Sadek, Islamic Food and Nutrition Council of America (IFANCA)

ERLO contents.indd 8

4/25/06 4:57:24 AM

PRIMA A4 ad.pdf

CMY

4/16/06

9:11:33 PM

WHF EXECUTIVE REVIEW - YEAR 2006 10

Contents THE PANELISTS Ahmed Hariri, Islamic Development Bank (IDB)

Mohamed A. Rahman, Australian Federation of Islamic Councils (AFIC)

William ‘Bill’ Aossey, Midamar Corporation

Muhammad Hakim See, Cargill Palm Products Sdn Bhd

Dato’ Dr. Hj Kardin bin Hj Shukor, Dindings Poultry Processing Sdn Bhd

Shaﬁe Shamsuddin, Carrefour Malaysia/Singapore

Daud Vicary Abdullah, Hong Leong Islamic Bank (HLIB)

Syed Mohamed Syed Ibrahim, TH Properties Sdn Bhd (THP)

Darhim Dali Hashim, Moderator

MEDIA PROFILES emel

Q-News

Business & Financial

Islamic Finance News

Islamic Finance Information Service (IFIS)

Zawya/AsiaMENA

PP 13884/10/2006

WHF Executive Review is published by KasehDIa. Copyrighted © KasehDia Sdn Bhd2006. All Rights Reserved KASEHDIA SDN BHD • 31-2 Jalan 22a/70a, Desa Sri Hartamas, 50480 Kuala Lumpur, MALAYSIA Tel +603 6203 1025 | Fax +603 6203 4072 | email: info@halaljournal.com | www.kasehdia.com | www.halaljournal.com Printed By Art Work Printing Sdn Bhd

ERLO contents.indd 10

4/25/06 4:57:51 AM

KD Consulting ad ER.pdf

18/4/06

4:23:25 pm

gain perspective

CMY

market intelligence research & analysis project development training & workshops

KasehDia

consulting

The Halal Market Specialists KasehDia Sdn Bhd, 31-2 Plaza Crystalville, Jalan 22a/70a Desa Sri Hartamas, 50480 Kuala Lumpur Tel +603 6203 1025 • Fax +603 6203 4072 • info@kasehdia.com • www.kasehdia.com

Untitled-2 1

4/21/06 2:07:20 AM

e x e c u t i v e r e v ie w • f or wa r d

f r o m t he Pr i m e M ini s t e r of M a l ay si a D at o ’ S e r i A b d u l l a h A h m a d B a d a w i

t has long been a stated goal of the Malaysian Government to establish Malaysia as a hub for the promotion, distribution and production of Halal products and services. In addition, it is a matter that is close to my heart. In the same way that Malaysia has spearheaded the formation of the Islamic Financial Services Board for the creation of standards for the Islamic Finance industry worldwide, the World Halal Forum in Malaysia can be the premier platform for the meeting of minds of the Halal industries worldwide. The World Halal Forum will be the focal point for international industry leaders and related organisations to converge and discuss Halal trade and business matters. This will encourage a new level of international collaboration by establishing an effective business arena among the key players and decision makers of the Halal industry worldwide. This event will also be an important step in Malaysia’s continued efforts to develop intra-OIC trade and economic development in these countries. To achieve this, the development and acceptance of standards in the Halal industry is essential. While Malaysia has developed Halal standards, it is up to the industry to adopt and implement them for the continued good of the industry. All parties should take advantage of this platform and make inroads in networking and making profitable working collaborations amongst the world’s industry leaders. I also encourage all those concerned to lend their support to this event which is of great importance to our nation and our Ummah. Congratulations to KasehDia Sdn Bhd for their sterling efforts in organising this event. I look forward to delivering the keynote address and to meeting all those attending the Forum.

A B D U L L A H A H M A D BA DAW I Prime Minister of Malaysia

ERLO intro.indd 13

4/25/06 5:29:05 AM

FCB_207094_AwardsAd_6M54_IBM1

18/4/06

11:11 PM

Page 1 FCB_207094_AwardsAd_6M54_IBM1

207062

CIMB Islamic Nurturing ideas to fruition • Best Domestic Sukuk House Award (2003), Euromoney.

• Deal of the Year (2005), IFR Asia.

• Top Lead Manager (Islamic) - Number of Deals and Issue

• The Most Outstanding Islamic Financial Institution (2005),

Value (2004), RAM. • Best Provider of Islamic Financial Services in Asia (2004), Euromoney. • Islamic Finance Deal of the Year (2005), Finance Asia. • Islamic Finance Deal of the Year (2005), Euromoney.

International Institute of Islamic Finance & Deloitte Consulting Malaysia. • Islamic Finance Product of the Year - Islamic Profit Rate Swap (2005), Euromoney. • Best Islamic Bank in Asia (2005), Euromoney.

Great ideas require the right catalysts. We believe that our reputation is only as good as our track record. At CIMB Islamic, proof of our ability lies in the continued growth and competitive returns that we have achieved for our clients. As a measure of our success, our team has won numerous global awards as recognition of excellence. To see how we can build a successful partnership with you, please call CIMB Islamic at (6) 03-2084 8888 or visit www.cimb.com.my

breakthrough ideas. breakthrough results.

executive review

Message from the Chairman of The World Halal Forum

t is indeed a pleasure and an honour for me to preside as the Chairman of the inaugural session of The World Halal Forum. The global Halal industry is fast emerging as a significant market force that is on track to play an increasingly important role in international trade throughout the world, and the establishment of an industry-led Forum of this nature is both timely and relevant. It is, I believe, highly appropriate that The World Halal Forum should be hosted in Malaysia. Since our Independence, Malaysia has taken a strong leading role in the development of Halal certification under the Department of Islamic Development Malaysia (JAKIM). The Malaysian Halal certification is now among the most widely recognised and respected symbols of Halal compliance in the world. Furthermore, the launch of the Malaysian Halal Standard MS1500:2004 in August 2004 further demonstrates our commitment to the creation of clear and practical guidelines for Halal compliance. Developed in accordance with ISO methodologies, MS1500:2004 is the first Halal standard to be developed by a Muslim nation, and, in the spirit of Islamic brotherhood, we are pleased to share it with the world. As the parameters of the global trade in Halal goods and services continues to develop both in definition and in volume, Malaysia is proud to be hosting the inaugural session of The World Halal Forum. We are pleased to invite companies from around the world to take advantage of this great opportunity to learn from each other and to establish strong personal and business networks. Prior to the establishment of this Forum, there was no appropriate platform in which the issues and concerns of the Halal industry could be properly addressed and attended to. As the Halal market is now the concern of many major multinational corporations from all corners of the world, we are confident that The World Halal Forum will become the arena in which this powerful emerging industry will find its voice. Malaysia is an ideal location for this initiative, as the government has clearly stated its commitment to promote the Halal industry both locally and internationally. It is our hope that Halal industry players worldwide will come together to find ways to further develop and strengthen this industry for the benefit of all. We bid a warm welcome to all the participants to The World Halal Forum. Sincerely,

K HA I RY JA M A LU D D I N World Halal Forum Chairman

ERLO intro.indd 15

4/25/06 5:29:29 AM

Speak of us not just because we are progressive. Think of us not just because of our innovations. Look at us simply because above all else...

we are IKHLAS.

Introducing Tak aful Ikhlas. Setting new standards in family and general Islamic financial protection services. Raising the bar in customer service. Neither of which is as important to us as being ‘ikhlas’ in all that we do for you. We are Takaful Ikhlas, the only progressive Islamic insurer that’s backed by Malaysian National Reinsurance Berhad, one of Malaysia’s leading reinsurance companies. For more information, please visit www.takaful-ikhlas.com.my or call 03-2084 1000.

TAKAFUL ads.indd 2

4/25/06 1:59:03 AM

executive review

The World Halal Forum

The Halal Market is emerging as a global force. Halal transcends traditional industry-sector boundaries and deямБnitions, and is fast emerging as a new market paradigm with its own unique set of issues, challenges and opportunities. The World Halal Forum has been established to achieve the following:

TO PROVIDE A FOCAL POINT FOR THE GLOBAL HALAL INDUSTRY

TO GATHER HALAL INDUSTRY EXPERTS, LEADERS AND SPECIALISTS TO SHARE THEIR VIEWS, KNOWLEDGE AND EXPERTISE

TO BE AN ARENA FOR DISCUSSION, NETWORKING AND COLLABORATION TO STIMULATE THE GROWTH AND DEVELOPMENT OF THE HALAL MARKET

TO FACILITATE THE RESOLUTION OF PROBLEMS AND ISSUES OF CONCERN WITHIN THE HALAL INDUSTRY

TO COORDINATE AND ASSIST SUBJECT-SPECIFIC INDUSTRY GROUPS AND TECHNICAL COMMITTEES TO SUPPORT EXCELLENCE, INNOVATION AND IMPROVEMENT IN THE HALAL MARKET TO DEVELOP AND PROMOTE THE CONCEPT OF HALAL TO REALISE ITS FULL POTENTIAL AS A GLOBALLY RECOGNISED SYMBOL OF QUALITY AND SAFETY

TO ASSIST AND SUPPORT THE DEVELOPMENT OF WORLD-CLASS HALAL INDUSTRY STANDARDS COVERING THE ENTIRE VALUE CHAIN

ERLO intro.indd 17

4/25/06 5:02:20 AM

executive review

intr oduction

HALAL

The Market, the Industry, the Future BY HAJJ ABDALHAMID EVANS

HE LAST TWO YEARS have seen the Halal market

come into increasingly sharper focus. As the industry shifts gears to meet the increasing demand, we take a look at the way the market – and the industry – is shaping up.

Despite the sometimes-hazy nature of the Halal market, the foundations could not be more clear and simple. A global population of 1.6 billion Muslims conforming to the Qur’anic injunction, “Oh Mankind! Eat what is lawful and wholesome on the earth,” makes up a huge consumer base defined by very straightforward parameters. In marketing terms, the picture becomes more complex. We have a consumer base made up of 25% of the world’s population, spread over 142 countries, covering a wide diversity of race, culture and spending power. Global population statistics1 show all regions of Asia as the major population base, and also the traditional target for the Halal exporters. On closer inspection the market is of course more diverse than this, with opportunities opening up across the world. There have been various estimates as to the potential size of the global Halal market. Due to the fact that Halal produce is not fully audited, certified or tracked in a systematic manner, all market estimates are currently more or less ballpark figures. However, we found that by taking into account the average annual per capita food expenditure throughout these regions, we have been able to get a closer idea of the potential market size. (see table 1 & 2) While at first glance USD580 billion appears to be a big figure, taking a global average of USD371 per person per year for food expenditure, this is just a fraction over a dollar a day. There are very few places in the world where you can get by on a dollar day for food, wherever you go. Furthermore, these figures do not take into account the non-Muslim population purchasing Halal food, nor the non-food Halal products in the market. However, this table does give us at least a working market estimate, and if nothing else, confirms that Halal is a large and growing market. Per capita expenditure for food is also expected to continue to grow, and rising global commodity and fuel prices will inevitably support this continuing trend. Some key indicators for the Halal market show the 5-year average per capita food expenditure having robust growth in many countries; Malaysia 15.8%, Saudi Arabia 18%, Thailand 19%, China 22%, Indonesia 33.4%, plus in developing Halal markets, such as France 43%, Netherlands 41.2%, USA 17%, South Africa 96%.2 1 Statistics sourced from www.islamicpopulation.com, using data derived from the CIA Factbook, The Library of Congress, the US Department of State, the BBC, and Holt, Reinhart and Winston. 2 Source EuroMonitor.

ERLO intro.indd 18

4/25/06 5:03:12 AM

executive review

TA B L E 1 MUSLIM P O P U L AT I O N I N KEY M ARKETS 2005

TA B L E 2 MUSLIM P O P U L AT I O N A N D FOOD EXPENDITURE 2006

Region Africa West Asia South Central Asia South East Asia China Europe (inc Russia) N. America S. America Oceania Total

Population 906m 212.6m 1,614.4m 2,614.98m 1,303.7m 727.4m 329m 559m 33m 6,313m

Muslim Population 461.77m 195m 584.8m 1,006m 39.1m 51.19m 6.62m 1.64m .35m 1,565m

% of Muslims 48.1% 91.9% 36.2% 38.5% 3% 7.04% 2.5% .30% 1.09% 23.25%

Region

2005 Muslim Population

Per capita average food expenditure p/a USD

Halal Food Market Value USD (million)

Africa West Asia South Central Asia South East Asia China Europe (inc Russia) N. America S. America Oceania Total

461.77m 195m 584.8m 266.37m 39.1m 51.19m 8.26m 1.64m .35m 1,565m

250 570 300 350 175 1,250 1,750 500 1,500

115,443 111,150 175,440 93,230 5,865 63,988 14,455 820 525 USD 580,915

life st y l e& t ren d s

M arket Neighbours

As a global brand, Halal is finding its way into the market alongside some interesting market neighbours. Halal, in its fullest definition of ‘lawful and wholesome’ actually overlaps with a variety of themes that have established significant niches in the market in the last two decades. Healthy, organic, environmentally friendly, animal welfare, ethnic and fair trade are just some of Halal’s natural market neighbours. All of these sub-sectors have enjoyed excellent growth over the last decade, and there is every reason to believe that Halal – once producers wake up to Halal’s great potential as a marketing tool – can make use of this borrowed market landscape and take advantage of the value overlap. A glimpse into what is potentially possible for Halal, in terms of going mainstream, can be seen by looking at the kosher market in the USA. With a Jewish population of only 5 to 6 million, the US marketplace is currently home to 86,000 kosher-certified products, with a product offering that covers the entire range. Currently valued at well over USD100 billion, the breakdown of the kosher consumer profile makes for interesting reading. According to a recent Mintel survey, less than 15% of the kosher customers are Jews running a dedicated kosher household. 55% of those surveyed purchase kosher because they believe it to be healthier and safer than regular products. 38% are vegetarian, 24% want dairyfree. As a Mintel spokesperson commented, “kosher seems to have equal ‘bragging rights’ with organic and natural.” It has made the crossover to the mainstream market. Most significantly, from our point of view, 16% of the US kosher market is made up of Muslim consumers. With only 1,000 Halal-certified products available, most of which are not on the mainstream supermarket shelves, many US Muslims are simply buying kosher because they are not being offered Halal.

ERLO intro.indd 19

4/25/06 5:03:28 AM

executive review

20 What is more, the kosher product range, which expanded by 14% from 2002 to 2004, is increasingly made up of regular mainstream food items that are getting kosher certification. That is to say, the food producers recognise that a kosher certificate simply adds value to their products, and gives them access to a wider market segment. If this is true for kosher, how much more so does it apply to Halal? As food manufacturers realise the full extent of the market potential for Halal-certified goods, we are likely to see an explosion in the numbers and range of Halal-certified products on offer in the global market.

T h e M e at S c e n e

cho i ce & n e e d

The meat and poultry sectors remain the core of the Halal market, and the big producing countries continue to dominate the supply to global markets. A common theme is the increase in Halal procedures across the board, as the Halal sector insists on Halal, and the rest of the market is, for the most part, also happy to purchase Halal. For the big producers, going Halal is a way of unifying the market, simplifying procedures and also adding value to the product. The more that Halal fulfils its potential as a mark of safety and quality assurance, as it is likely to do over the coming years, the more this trend is likely to grow. Market research conducted in the UK and Canada clearly indicate that the average Muslim household is larger, spends a higher percentage of income on food, and consumes more meat than the national averages. UK figure are particularly interesting. At just 4% of the total population, the UK Muslims account for almost 12% of the total meat sales, and over 20% of the sheep meat sales. The figure for mutton is even higher; in 2004, the UK mutton consumption was 87,000 tonnes, of which an estimated 80% was consumed by the Muslims.3

Younger Muslim generation and Muslim professionals, due to restricted time for meal preparation, are more depending on Halal frozen food and Halal fast food.

This is of course a snapshot, and the picture of people’s tastes and habits is continually changing. Nowhere is this more apparent than among the Muslim population, be they third generation Pakistani immigrants in London, or Bedouin residents of the UAE; they are all getting globalised. Consequently, eating habits have changed. Young Muslims in Europe and the USA, unlike their parents, want to eat a full range of cuisine. They want to be able to eat Halal when – and even wherever – they dine out, and also to buy ready-cooked ‘meal solutions’ at the supermarket. With ambitions, tastes and purchasing power far outstripping the previous generations, this new breed of Halal consumer is already looking for a product oﬀering that will open up a whole new sector for retailers. With 100% of the UK Muslims using the main retail chains for their weekly grocery shopping, an estimated 99% of the Halal meat sales are still done through the neighbourhood Muslim-owned ‘Halal’ shops. This of course poses an interesting challenge to the big retailers. 3 Source Mintel, as published in ‘The Halal Meat Sector in the UK’ by Tony Fowler, Meat and Livestock Commission.

ERLO intro.indd 20

4/25/06 5:03:43 AM

Every day, millions of people and numerous governments rely on SICPA to protect the integrity and value of their currency, personal identity and consumer goods. In today’s world, where everything that can be purchased can be counterfeited or tampered with, our business has expanded from protecting over 85% of the world’s currency to security at large.

Our goal is to help protect the world’s 6.5 billion people, in 3 different ways: Firstly, we protect the value of their currency with our security inks. If people have faith in their currency, they will have faith in the entire economy of their country. Second, we secure the products they consume, from medicines, water and food, to industrial spare parts. Third, we help their governments protect the tax revenues collected through security solutions such as product coding, marking and complete TRACK & TRACE systems. Our mission is to ultimately give every product its own “DNA” to better protect the citizens of the world.

executive review

The R e ta il C h a l l e ng e The presence of the major retail chains in the Halal sector is likely to cause ripples that will be felt all around the world. Given the intense competition in food retailing, the retailer that successfully gains the trust and therefore the custom of the Halal consumer will have staked out a significant claim in the global market place. Those retailers, such as Tesco and Carrefour, with proven market share in both the Muslim and non-Muslim majority markets are likely to bring a clear advantage to the table – they understand the customer. Clearly, there is plenty at stake, and in Europe, the old battle between the neighbourhood stores and the supermarket giants is entering a new phase. With the supermarket chains under pressure from the hard-discount stores, the search for a fresh revenue stream is everpresent. With the Halal consumer already using the retail majors for their grocery shopping, the development of a full product offering seems to be a likely next step. In certain areas of the UK and France, the Muslim population can comprise up to 40% of a supermarket’s customer base, making the inclusion of a dedicated Halal section seem an obvious choice. As these population figures have existed for many years, the recent decisions to target Halal have no doubt come as the result of plenty of market research and analysis on the part of the majors, especially given their clear aversion to risk.

s c ience

Centres of Halal E xcellence

Halal is also a big market for non-food products. Malaysian’s CCM Pharmaceuticals now markets a full range of Halal-certiﬁed health supplements, another market sector with strong potential.

ERLO intro.indd 22

The search for quality Halal-certified products inevitably leads to South East Asia, and in particular to Malaysia which is emerging as a Centre for Halal Excellence. While scholars and certifying agencies around the world struggle to find consensus on Halal practices and procedures, we find that industry is, perhaps quite naturally, already a few steps ahead. The ‘Nestlé model’ is a case in point. In the 90’s, before the issue of global standards was even a point for serious discussion, Nestlé’s head office in Switzerland asked Nestlé Malaysia to come up with international guidelines on Halal for use in their factories worldwide. As a result, and without any meat-based products in their product range, Nestlé now have over 100 factories around the world that are Halal-compliant. LSG SkyChefs-Brahims is another example. Recognising the need to serve Halal airline food to travelling Muslims, they turned their factory at Kuala Lumpur International Airport KLIA into a state-ofthe-art Halal production facility, and became the undisputed world leaders in Halal airline food, delivering some 40,000 meals to 26 airlines every day. On a smaller scale, but equally relevant Malaysia’s Prima Agri-Products, who have successfully penetrated European and other overseas markets with their Halal delicatessen range. Now needing to expand their capacity, Prima have developed a Halal Food Park near Kuantan, offering small producers the turn-key opportunity to buy into their production lines, process flow, procedures and certifications, bringing expansion for Prima and building national capacity at the same time. With a joint venture in place with an Australian company, Prima is clearly showing an intelligent way forward for local food producers, a model that is applicable not just in Malaysia, but also around the world.

4/25/06 5:04:00 AM

For sales enquiries, please contact :

F&N DAIRIES (M) SDN BHD (006431 - M) 70, Jalan Universiti, P.O. Box 19, 46700 Petaling Jaya, Selangor Darul Ehsan, Malaysia. Tel : 03-7952 6000

600251-F&N World Halal Forum Size: 210mm(W) x 297mm(H) 17/4/2006 â&#x20AC;˘ 5.00pm

executive review

As food manufacturers realise the full extent of the market potential for Halal-certified goods, we are likely to see an explosion in the numbers and range of Halal-certified products on offer in the global market.

g lob a l con ne c ti on

The Halal Hub Complex along the Pulau Indah corridor will create a South East Asian Halal logistic nexus.

Halal Logistics Port of Rotterdam, the biggest port in Europe, will be a major player in developing a Halal logistic gateway to the growing European Halal Market.

ERLO intro.indd 24

The ‘Centres of Halal Excellence’ theme does not just apply to Malaysian producers. With the expansion of the Halal market, the need for a secure and veriﬁable Halal supply-chain becomes increasingly important. Malaysia’s long history as a trading nation, coupled with a leading role in Halal standards and certiﬁcation, makes the country a natural choice for the development of logistics services tailored for the Halal market. Along the Pulau Indah corridor in the Klang Valley, the presence of both Westports and MISC Integrated Logistics (MILS) in close proximity to Central Spectrum’s Halal Food Park has all the makings of a global model for an integrated Halal production and logistics hub. This Halal Hub along the Pulau Indah corridor is designated for high-tech factories to manufacture Halal products for both Muslim and non-Muslim countries. With a 10-year tax free incentive and 100% foreign equity, this integrated Halal production and logistics nexus is yet another Centre of Halal Excellence that will be leading the way forward in the global Halal market in the coming decade. As the market develops, and with more countries looking to take a market position, there seems to be every likelihood that these Centres of Halal Excellence will become models that will be replicated and adapted for use elsewhere.

4/25/06 5:04:40 AM

Untitled-8 1

4/20/06 3:36:45 AM

executive review

H a l a l S ta nda r d s – I s i t t i m e to g o g lob a l ? All these moves in the market are also having their own domino eﬀect in other areas, not least of which is the issue of Halal standards. As Halal evolves into a global market in its own right, the questions of standards naturally becomes increasingly important, leading to the natural conclusion that a global market requires global standards. It is noteworthy that the issue of global Halal standards is being driven by the industry players themselves, not by Governments or religious authorities. Indeed, they are the ones with the biggest investments and the most at stake, and the absence of harmonised Halal standards is a disruptive element in an expanding market; i.e. the longer it takes to deal with it, the bigger the issue becomes. It is also our view that, as in the case of ISO standards, the greater the role played by industry, the faster this issue will be resolved, and there seems little doubt that the leading Halal industry players will support a well-managed programme to develop appropriate Halal standards for all sectors of the value-chain, in all parts of the world.

A u d i t i n g a n d C e r t i f i c at i o n This will in turn have a knock-on effect in the way that Halal auditing and certification is carried out. Industry norms essentially demand that the audit process is a professionally conducted procedure that is separate from the issuance of certificates; that is the way things run in other industries. Because of its particular nature and history, Halal auditing and certification have been under the authority of the religious departments, agencies and associations, and they have done an excellent job of establishing the foundations of the Halal market. However, in order for Halal to fulfil its full market potential, the audit and certification processes themselves need to become standards-compliant, and therefore will need to be conducted independently of each other. This change will inevitably introduce increased speed and efficiency into the entire workflow, and the benefits will be widespread. The audit will be transparent, import and export will be smoother, Halal certified products will enjoy increased consumer confidence, and there will be a much greater choice of products on the shelves. All of this will strengthen the market considerably, and remembering the ratio in the USA of 86 kosher products for every Halal product, there is plenty of room for expansion. In this respect, inefficiencies in the market are good news for anyone able to combine insight, imagination and hard work. And of course the finance.

s y s tem& prac ti c alit y

“Nestlé very much supports the creation of global Halal standards, so if we see any movement in that direction, Nestlé will be very supportive of such an initiative.” Datuk Frits Van Dijk, Nestlé Executive Vice-President and Zone Director for Asia, Oceania, Africa and Middle East

ERLO intro.indd 26

4/25/06 5:05:12 AM

Untitled-2 1

4/22/06 3:02:58 AM

executive review

“Halal business and Islamic banking are in fact natural allies. We believe this is the opportune time to bring the Islamic ﬁnancial market into the fold of the wider Halal world economy” Badlisyah Abdul Ghani, Group Head, CIMB Islamic

pro duc t s&s er v ice s The combined force of the Halal food market and Islamic banking makes an interesting picture.

N at u r a l A l l i e s : Isla mic Finance and Halal Pr oducts With a slight shift of perspective, Halal goods and Islamic financial services are undeniably part of the same market. You could say that the reason that they have not noticed each other yet is because the market is so large – they were at opposite ends and did not recognise each other. Both sectors are based on Shariah-compliance; they evolved from serving a primarily Muslim market to being a viable option in the global marketplace, and now stand on their own merits, serving a mixed population of customers. Both are among the fastest growing sectors of their respective markets. The rising popularity of Islamic banking has led to an inevitable increase in competition, and the expanding Halal market provides plenty of room for growth for Islamic financial service providers. After all, if you are producing Halal products, shouldn’t you be using Islamic banking? The convergence of these two market forces is likely to be one of the defining elements in the Halal paradigm shift. As CIMB Islamic’s Group Head, Badlisyah Abdul Ghani commented recently, “We are seeing the emergence of a Halal market economy”. With Islamic banking assets currently standing at an estimated USD270 billion, and growing at close to 15% annually, the combined force of the Halal food market and Islamic banking makes an interesting picture. Most importantly, this combination represents some core Islamic values entering the mainstream. The combination of lawful, wholesome, natural, ethical, fair – along with profitable and tasty – clearly has a certain attraction with a widespread appeal. One thing is for sure. With both sectors set to grow and overlap, the Halal bull market has only just got underway. So fasten your seat belt, and keep your eye on the road. This is going to be an interesting journey.

ERLO intro.indd 28

4/25/06 5:05:35 AM

Microlink AD.pdf

4/25/06

2:02:23 AM

if you are looking for something diﬀerent we bring Beyond On-Line banking experiences to you

CMY

The leading specialists & awards winning solutions in Islamic Banking Technology •IT Solutions under the Special Recognition for Contribution to Islamic Finance Industry by KLIFF, 2005 •Best Application – Islamic Banking System by Sun Microsystems Malaysia, 2004 •Best System Integrator by Sun Microsystems Malaysia, 2004 •The ICT Software of the Year by PIKOM, 2003 Headquarters: Kuala Lumpur R&D: Technology Park Malaysia Bahrain Brunei Darussalam Indonesia Jordan Kuwait Qatar Saudi Arabia Sudan Syria Thailand Unites State Emirates Vietnam Yemen

contact us at +60(3) 2145 3380 or info@microlink.com.my visit us at http://www.microlink.com.my systemsinone servicesinone

executive review

Pushing Isla mic Banking to t h e F or e f r on t of H a l a l

Halal industry and Islamic ﬁnance are two main Shariahbased commerce mechanisms that not only ensure Halalrelated businesses are ‘even more Halal’, they also have the biggest potential to assert serious impact to the world of global trade and commerce. Both form a dynamic market for Halal products and services, traded accordingly through Halal transactions and contracts; using, ultimately, Halal currencies. These two major mechanisms of Halal economy are not separate markets but are more like two faces of the same coin. Islamic ﬁnance represents justice and equity in the transaction, abandoning usury according to the command of Allah. Removal of doubt in transactions, sharing of risks and rewards in investments, protects the disadvantaged. What started out as a service just for the Muslims has now expanded to serve the needs of others, becoming the preferred choice of banking for the non-Muslims.

ERLO intro2.indd 30

As the world open their minds and hearts to a global Halal business, Malaysia with its privileges of being a country with the most developed infrastructure for Islamic ﬁnances, from banking, takaful, unit trusts and even the Islamic capital market, is seen as being in the best position to take advantage of this global insurgence. Already being at the forefront of the international Islamic banking arena, CIMB Islamic can bring in their professional support to help drive the Halal economy both locally and abroad. “Halal business and Islamic banking are in fact natural allies,” said CIMB Islamic group head of Islamic banking division, Badlisyah Abdul Ghani. “Halal business covers a wide span of economic activities from farming to manufacturing and processing of food, from selling food in stalls by the roadside to the import and export of commodities between nations, from car manufacturing to infrastructure building.”

4/25/06 5:34:46 AM

executive review

As a leading bank in the global Islamic ﬁnancial market, CIMB Islamic believes that the inherent synergy between Islamic ﬁnancial institutions and other Halal industry players can be further harnessed to complete an exhaustive Halal value chain.

Recognising the wideranging activities which rely heavily on finance, CIMB Islamic offers to facilitate them with Islamic banking and finance. “When one does Halal business, one must finance such business with Halal funding,” stressed Badlisyah. As a leading bank in the global Islamic financial market, CIMB Islamic believes that the inherent synergy between Islamic financial institutions and other Halal industry players can be further harnessed to complete an exhaustive Halal value chain. Badlisyah added, “We aim to support and develop the Halal industry due to the synergistic relationship in doing Islamic banking and Halal business. As a bank, we are here to facilitate new ideas and businesses, especially for the Halal industry.” For this main reason, CIMB Islamic has come on board as platinum sponsors for the inaugural World Halal Forum. Expressing delight to be associated with a world-first such as this, Badlisyah commented that the forum coincides with what CIMB Islamic is all about, doing Halal business.

ERLO intro2.indd 31

“As a leading bank in the Islamic financial market globally, we believe that this is the opportune time to bring in the Islamic financial market into the fold of the wider Halal economy,” stresses Badlisyah. CIMB Islamic came about when the group saw the market was lacking a major player to champion the cause of Halal industry. Reaching this realisation, CIMB Islamic began their operations in January 2003 as a dedicated Islamic financial solutions provider of the CIMB Group, already one of the most valued investment banking groups in South East Asia. It has an exhaustive coverage of the domestic institutional investor base and a wide international distribution network including Jakarta, Brunei, Singapore, Bangkok, Hong Kong, London and New York.

“As part of our regionalisation exercise, we are further expanding our business to reach into the South East Asian and West Asian regions. In asset & fund management, CIMB Islamic has had great success in managing clients from these two regions. This is a reflection of the investor’s confidence in CIMB’s ability to offer Shariah compliant products both within and outside traditional boundaries,” added Badlisyah. Operating as a bank within a bank, it offers investment banking products and services in total compliance with the Islamic jurisprudence laws of Shariah. They are also fully equipped with relevant insights into all aspects of Islamic finance.

4/25/06 5:06:53 AM

executive review

To ensure strict compliance of the Shariah and to undertake Islamic banking and finance businesses in a systematic and regulated fashion, CIMB Islamic has its own Shariah committee, which comprises of scholars and practitioners from various geographical locations. It also offers a wide range of products and services, including private equity, corporate advisory and Islamic debt and equity markets, as well as asset management and property funds. Since its inception, CIMB Islamic has introduced many world’s first issuance, including Istisna’, Sukuk, Ijarah commercial paper, medium term notes program and Musharakah asset-backed securitisation. Developing and delivering these new products enables them to contribute significantly to the further developments of the Islamic financial market and has marked CIMB Islamic as the pioneer of this market. As a testament, CIMB Islamic was awarded The Most Outstanding Islamic Financial Institution by International Institute of Islamic Finance Inc (IIIF Inc) and Deloitte Consulting Malaysia based on their performance last

ERLO intro2.indd 32

year which includes project implementation, products offered and financial situation. “This year (2005) was an outstanding year for us where we topped all known Islamic bond tables in Malaysia and globally. We managed and closed circa USD2.5 billion deals so far (in Nov 2005) and managed close RM1 billion of Islamic fund, having only started this business in the last two years,” Badlisyah added. Following the integration of CIMB with Bumiputra Commerce Berhad Group on 11 January 2006, CIMB Islamic has now been merged with Commerce Tijari, transforming itself into a ‘universal’ Islamic financial services provider. Retail banking has been added to its commercial and investment banking operations. With the acquisition of Malaysia’s second largest financial services group, CIMB Islamic now has more than 230 branch network available at its disposal nationwide; to better serve its customers.

4/25/06 5:07:13 AM

FCB_207094_Islamic_6M54_IBM1

19/4/06

12:10 AM

Page 1 FCB_207094_Islamic_6M54_IBM1

207062

CIMB Islamic Bringing ideas to fruition

Great ideas require the right catalysts. We believe that our reputation is only as good as our track record. At CIMB Islamic, proof of our ability lies in the continued growth and competitive returns that we have achieved for our clients. As a measure of our success, our team has also won The Most Outstanding Islamic Financial Institution in Malaysia 2005 by International Institute of Islamic Finance Inc and The Inaugural Best Islamic Finance Deal 2005 by Finance Asia.

To see how we can build a successful partnership with you, please call CIMB Islamic at (6)03-2084 8888 or visit www.cimb.com.my Musyarakah One Capital Berhad (2005) US$658 million equivalent Musyarakah Programme World’s first rated and tradable Musyarakah Sukuk Sole Lead Arranger/Sole Lead Manager

Cagamas MBS Berhad (2005) US$540 million equivalent Musyarakah Sukuk World’s first rated Musyarakah Sukuk Islamic Residential Mortgage-Backed Securities Joint Lead Manager/Joint Bookrunner

IDB Trust Services Limited (2005) US$1.0 billion EMTN Global Sukuk World’s first ever US$ Euro Medium Term Notes Global Sukuk issue

Syarikat Bekalan Air Selangor Sdn Bhd (2005) US$789 million Bai’ Bithaman Ajil MTN Programme Largest “water” bond programme in Malaysia

Joint Lead Manager (Sole Lead Manager in the Far East)

Joint Lead Arranger/Joint Lead Manager

Projek Lebuhraya Utara-Selatan Berhad (2005) US$632 million Zero Coupon Serial Bai’ Bithaman Ajil Islamic Securities Benchmark for AAA-rated bond issues in Malaysia

Konsortium Lebuhraya Utara-Timur Sdn Bhd (2005) US$205 million Redeemable Secured Serial Sukuk Istisna’ First Sukuk Istisna’ issued by a highway concessionaire in Malaysia

Sole Lead Manager/Lead Arranger

Sole Lead Arranger/Sole Lead Manager International Bank for Reconstruction and Development (World Bank) (2005) US$200 million equivalent Bai’ Bithaman Ajil Islamic Securities World’s second Ringgit Sukuk issue by a supranational & the World Bank’s first foray into the Sukuk market anywhere in the world

International Finance Corporation (a member of the World Bank) (2004) US$132 million equivalent Bai’ Bithaman Ajil Islamic Securities (2004) World’s first Ringgit Sukuk issue by a supranational Joint Bookrunner/Joint Lead Manager

Joint Lead Arranger/Joint Lead Manager

breakthrough ideas. breakthrough results.

executive review

A P ort w i t h a Hal al V i sion

Westports Malaysia’s main thrust for the next ﬁve years will be to enhance opportunities for Malaysian and foreign entrepreneurs to venture into its value-added services and distribution parks. The port is planning to be the main component of Malaysia’s Halal Hub initiatives based on its location in the vicinity of the soon-to-be opened Port Klang Free Zone (PKFZ), which is expected to emerge as the world’s number one Halal Hub. Westports, which is spearheading the marketing of the multi-million ringgit PKFZ, views the development as a new wave at its corridor over the next ﬁve years. This is because PKFZ’s existence in Pulau Indah is an excellent gateway for countries like China to penetrate Muslim populated countries. Westports has the added advantage to be the port of call for the Halal industry as other key players of the logistic industry like MISC Integrated Logistics Sdn Bhd (MILS) and the Selangor Halal Hub are all situated on Pulau Indah, home to Westports.

ERLO intro2.indd 34

This affiliation of key players is bound to spur new business opportunities in Halal packaging, sterilisation and fumigation while other measures can now be streamlined in accordance to Halal standards from within the area itself. “The Halal industry is important and it has been identified as the next wave of development for Malaysia’s economy. With our already super infrastructure including highways, world-class airport and ports, the multimedia corridor, broadband as well as 3G telecommunication facilities, the Halal sector gives us a fantastic opportunity to be the capital of Halal food trade,” said Westports Malaysia Executive Chairman Tan Sri G. Gnanalingam. “Our recent promotion of PKFZ and Westports to Chinese businessmen in Shanghai and Shenzhen was very successful as Chinese foodstuff makers showed keen interest in both the Halal Hub and our port. As one of the world’s top trading nations, Malaysia’s market access along with logistical support from ports like Westports and a well-developed banking system including the rapidly expanding Islamic finance, can help promote Malaysia’s Halal initiative especially at PKFZ”, noted Gnanalingam.

4/25/06 5:07:45 AM

executive review

Malaysia’s Halal certification is one of the most recognised Halal certifications in the world. It has also launched the Malaysian Halal Standard MS1500:2004 to be used by industry players the world over. Meanwhile, part of Westports’ service is to provide manufacturers and producers with the fastest routes to other destinations. Understanding that the inventory cost is most important for manufacturers when sending cargos to different destinations, Westports encourages its customers to take advantage of this value-added service to help pace logistics by leveraging on Westports’ worldwide connections. This underlying service can assist manufacturers to become more competitive. Currently,

Westports is connected to over 300 ports in the world. Westports has proven itself in terms of eﬃciency and reliability with its shipping lines. In its brief 10-year history, Westports has been voted among the top 10 ports in Asia. It has also contributed immensely to the rating of Port Klang as the 13th largest port in the world. Its waterfront reliability, distinctive stevedoring capabilities and versatility in handling of cargo, has won it accolades from near to far. With 25 of the world’s leading main line operators already on board, Westports is well on its way to establishing its mark as a global port-of-call.

Located in Pulau Indah, Port Klang, Selangor, Westports serves as a container terminal and other maritime services, with a total land area of 1,450 acres. Westports philosophy is to be a successful gateway for the nation’s trade inventory. The Ninth Malaysia Plan calls for the growth of containers from the expected 12 million to 18 million. Westports is conﬁdent this can be achieved by growing its own capacity from three to six million over the next ﬁve years.

“The Halal industry is important and it has been identiﬁed as the next wave of development for Malaysia’s economy. With our already super infrastructure including highways, world-class airport and ports, the multimedia corridor, broadband as well as 3G telecommunication facilities, the Halal sector gives us a fantastic opportunity to be the capital of Halal food trade,”

ERLO intro2.indd 35

4/25/06 5:08:05 AM

executive review

R egion al Logi s t ic Hub f or H al al

As the world starts to pay close attention and look at Halal as an industry, the doctrine of what makes a product Halal is given greater focus. The basis of its operation is slowly unraveled and understood. Now that the operational aspect is on its way to meet the demands of the market, storing the products is another demand when looking at Halal business. Manufacturers of Halal products will need to make sure their products are kept in compliance with Halal standards and are intact at the end of the chain. Taking this into account, companies throughout the world have started to invest in projects that provide the right storage area for Halal products. In pursuing Malaysia’s vision to become the center of Halal economy, MISC Integrated Logistics Services Sdn Bhd (MILS) has responded to the Halal industry by setting up a regional Halal cold chain logistics hub with free commercial zone status in Pulau Indah, Port Klang, Selangor.

ERLO intro2.indd 36

Its parent company, MISC Bhd, is currently the second largest shipping company in the world and the latest in a line of large companies investing in the Halal sector. MILS’ mission is to design, develop and provide an integrated Halal logistics management solution. Making Halal its highest priority, MILS will be in compliance with all Halal logistic standards and is keen to take the Halal concept into the next frontier. MILS acts as a one-stop logistics provider that integrates all forms of logistic services, by land, sea or air. Being a commercial free zone, overseas companies will have access to a full spectrum of services free from Malaysian duties and taxes with ‘ready to go’ regional market infrastructure. “It will be the biggest cold room facility in this region and will further boost the Government’s intention of developing a Halal Hub in the country,” said MILS Director and Chief Executive Officer, Hilmi Mohd Nashir. The construction of the Halal cold chain is divided into phases. The first phase is the MISC Regional Logistic Hub (RLH) which will initially offer 24,000 sqm of warehouse space and is expected to be ready by December this year.

4/25/06 5:08:26 AM

executive review

MILS acts as a one-stop logistics provider that integrates all forms of logistic services, by land, sea or air. Being a commercial free zone, overseas companies will have access to a full spectrum of services free from Malaysian duties and taxes with ‘ready to go’ regional market infrastructure. Upon completion, the center will have 90,000 sqm of multimodular storage and a processing facility enabling manufacturers, importers and exporters to consolidate a multi-country warehouse in a single duty-free location. “Geography will no longer be a barrier and trading can be done without boundaries,” said Hilmi who is conﬁdent that the RLH will bring enormous value with its ideal location from where customers can penetrate the regional markets and beyond. Its Free Commercial Zone status and close proximity to Westports, one of Asia’s emerging ports, has placed MILS in a strategic position to better attract and beneﬁt Halal producers. By leveraging on MILS’ logistics expertise, Halal producers are not only guaranteed that their products would be untainted, they could also optimise on MILS’ entire supply chain. How? Producers stand to gain through lowering their operating cost, reduction of lead times as well as speedier distribution of products to their consumers.

ERLO intro2.indd 37

Through RLH, MILS aims to redeﬁne the future of Halal logistics in the region by providing a competitive regional hub solution as compared to neighboring countries. From RLH, products will reach customers in Malaysia and Singapore within 24 hours, central and eastern seaboard of Thailand within 48 hours, parts of Indonesia within 72 hours and Vietnam within 156 hours. The RLH is the ﬁrst in a series of regional hubs to be built by MISC in other regions, which will be supported by a single, integrated IT platform. The international and domestic operation of RLH will be complemented by the company’s strategic alliances, MASKargo, POS Logistics and SterillGamma for fumigation and sterilisation services.

MISC Integrated Logistics Sdn Bhd (MILS) is the first local logistics company to attain the ISO 9001, ISO 14001 and OHSAS 18001 certification at the same time. MILS is the logistics arm of Malaysia International Shipping Corp Bhd (MISC). It offers a one-stop logistics services to its customers by integrating ocean freighting, distribution, freight forwarding and warehousing services. MILS and liner businesses are the second largest contributor to MISC’s total revenue, at 37%, with liquefied natural gas (LNG) shipping business in the lead. MILS is now spreading its operations to cater to the Halal economy welcoming businesses from around the world to venture with them in their state-of-art facilities.

4/25/06 5:08:40 AM

executive review

A M a l ay si a n Pi one e r

One of Malaysia’s pioneer and key players in the Halal industry, Prima Agri-Products Sdn Bhd, has been applying the Halal doctrine within their organisation since they ﬁrst began 1987. Prima makes their Halal policy clear and precise when evolving the sources of raw materials, ingredients, equipments, storage, transportation, and even employment of Muslim workers for the production. This is how they have gained international conﬁdence in all their years of business. Prima acknowledges the manufacturing potential that Malaysia has in becoming a major Halal food centre of the world. Striving hard to take charge and turn the vision into reality, Prima has tucked in their business plan a development project, a 40 hectare Prima Halal Food Park in Kuantan, Pahang. Integrating the small and medium enterprise’s (SMEs) capabilities, the park will support them by providing them with common facilities used to produce and manufacture Prima Agri-Products.

ERLO intro2.indd 38

The idea is to encourage, educate and guide the SMEs about the ropes of Halal food manufacturing. Being under the same roof can only expedite the process while producing better quality products. Its principle activity is to act as the primary marketer for domestic and export markets of products produced by the SMEs. Prima will assist the SMEs to obtain the necessary certiﬁcations for quality standards and assurance. This service is to achieve an overall food safety while complying accordingly to Halal standards and maintaining market conﬁdence at a lower production cost. The end results are SMEs becoming owners of a highly specialised manufacturing system of Halal meat based delicatessen food for the world.

In a borderless world, export approvals have become vital and an inevitable prerequisite. Through the thorough research and the understanding of Halal, Prima Agri-Products Sdn Bhd (Prima) was able to penetrate the international market by assuring their compliancy to various standards. Nationally and internationally accredited for food safety, Prima has received their Halal certiﬁcation from the Department of Islamic Development Malaysia (JAKIM) and Hazard Analysis and Critical Control Point (HACCP) from the Ministry of Health.

4/25/06 5:08:58 AM

Untitled-1 1

4/21/06 2:03:30 AM

executive review

Prima also received the ISO 9001 and HACCP from RWTuV (Reinisch-Westfalisher TUV e. V) Germany, Export Certiﬁcates Singapore, Export Approval by the European Commission, Audit Passes by Yum International Corp., USA and supplies audit by international quick services franchisors. Prima has a good track record and is prepared to assist their business partners on receiving the same accreditations. For Prima, part of their participation in the Halal business industry is to create an understanding on the revolution of Malaysia as a Halal hub of the world. Accompanied with their vast knowledge, experience, infrastructure and capabilities they are ready to oﬀer local, international participants and investors the opportunity to make Malaysia a platform

of manufacturing Halal food for their existing and new export markets. At present, Prima is known for their Halal delicatessen supplies of cold cuts, sausages, soups, Malaysian ethnic prepared foods, like sate and marinated meat. There is a huge demand from institutional quick service restaurants, food services, hotels and airline catering services locally and internationally. The World Halal Forum is seen as a synergistic approach for product exposure and at the same time will open doors for new investors to work hand in hand to create a larger Halal meat based market. Prima is conﬁdent that the international participants, investors and media will understand that they could

take the opportunity and the advantage of using the Malaysian Halal accreditation to manufacture Halal foods in Malaysia for export markets. Furthermore, the Forum will help to connect players in the Halal industry. Prima incorporated in September 1987, when they operated a Halal butcher store in Taman Tun Dr. Ismail, Kuala Lumpur. In 1990, their business ﬂourished to a manufacturing plant in Bandar Baru Bangi, located about 25 km south of Kuala Lumpur. Today Prima owns three manufacturing plants with 45,000 square feet of production ﬂoor, specialising in the production of Halal delicatessen meat based and cook-chill products with a current annual turnover of RM36 million.

The World Halal Forum is seen as a synergistic approach for product exposure and at the same time will open doors for new investors to work hand in hand to create a larger Halal meat based market.

ERLO intro2.indd 40

4/25/06 5:09:43 AM

KFH AD.pdf

CMY

4/20/06

1:31:21 AM

executive review

Ha l al + Br anding

Branding is integrity, with words and graphics as its fundamentals. Parallel to the concept of Halal, branding is about the quality of possessing and steadfastly adhering to high moral principles or professional standards. “Through proper branding, Malaysia can be seen as a sophisticated Halal hub where businesses are done professionally,” says Malaysia’s very own renaissance man of art and design, Tan Dri Dato’ Lim Kok Wing. “Proper branding will project a professional image for the industry, and provides conﬁdence for others to engage in business activities with us,” said Lim.

ERLO intro2.indd 42

Optimistic about Malaysia coming to the forefront of the world’s Halal economy, Lim highlighted the importance of communicating all eﬀorts through proper content design and branding. He said the end result of the content has to be seen as sophisticated and applicable to all. Lim is the founder of Limkokwing University College of Creative Technology (LUCT). The college aims to provide the right packaging and creative content for the world to see and gain conﬁdence in. Ostensibly, products with good branding originate from well-structured and organised environment with proper infrastructural system to support its planning and implementation. And this is exactly what the Limkokwing team wants to communicate to the world about Malaysia’s Halal industry. The Limkokwing team is putting together a content plan to help drive the communication side of Halal businesses. “It is crucial for us to show the world our capabilities and take this as an advantage to give ourselves a powerful image through correct branding,” said Lim.

According to Lim, for any brand to work it would take at least four to five years before people start to know it well. The key to any branding exercise is the consistency of its process on delivering quality products and services that will earn points when fronted with the competition. “What branding actually does is it reflects our good culture, position and brings in personification,” said Lim. As the Halal industry is making its mark in the world, so is the branding industry. According to research done by the Limkokwing group, the world’s packaging industry stood at a RM1.5 trillion in 2004. Lim is also the founder of Malaysia Design Technology Centre. The centre was established to bring the industry into the campus so that his students can learn the ways of industry even while they study. The goal is to promote creativity and innovation and for the past 30 years the centre has been advocating the belief that creative people would bring about an innovative nation.

4/25/06 5:10:07 AM

Untitled-1 1

4/20/06 12:59:39 AM

executive review

SPEAKERS 44

Badlisyah Abdul Ghani

Badlisyah Abdul Ghani, age 33, Group Head, Islamic Banking Division, CIMB Group, the larges the largest investment bank in Southeast Asia. Responsible for the overall Islamic banking and finance business of CIMB Banking Berhad, Badlisyah is also the Executive Director/ Chief Executive Officer of Commerce Tijari Bank Berhad, the Islamic banking subsidiary of the CIMB Group. In his career as a thoroughbred Islamic banker, Badlisyah has directly handled around RM30 billion (USD8 billion) worth of Islamic finance deals worldwide and has been instrumental in the pioneering of several Islamic structures. His experience and expertise in Islamic capital markets extends not just within Southeast Asia, but also to the Middle Eastern region. In 2004, he was named one of the Top 20 Global Islamic Banking Pioneers by Euromoney, a reputable financial publication, for his prominent contribution to the development of the Islamic financial sector in Malaysia and globally. Under his leadership, CIMB Islamic received the Euromoney Excellence Award for Best Domestic Sukuk House in 2004 and the Euromoney Excellence Award for Best Provider of Islamic Financial Services in Asia 2005. Badlisyah holds a Bachelor of Law from the University of Leeds, United Kingdom. Operating as a bank within a bank, CIMB Islamic is a dedicated Islamic financial solutions boutique offering investment banking products and services in compliance with the Islamic Shariah Law. Among its focus areas are Islamic debt and equity capital market, private equity, private banking, asset & fund management and corporate finance. Recognised locally and globally, CIMB Islamic is among the premier Islamic institutions that are instrumental in spearheading the effort of transforming Malaysia into an international Islamic finance centre.

ERLO speakr.indd 44

4/25/06 5:11:45 AM

��

ERLO speakr.indd 45

4/25/06 5:12:15 AM

executive review

SPEAKERS 46

Captain C.J. Weststrate

Captain C.J. Weststrate is a Senior Business Development Manager with the Port of Rotterdam, the largest European port and the third largest port in the world. With a 39-year career in maritime and port related business, Weststrate has had wide experience in shipping, terminal operations, marketing, sales, forwarding and distribution of forest products, general cargoes and containers. Currently, he is responsible for operations in South East Asia, China, Japan and Russia. Weststrate has also worked in close co-operation with and on behalf of multilateral organisations such as the World Bank and the European Union. Currently he is a part time consultant for the United Nations Economic Commission for Europe (ECE). He has also been involved in various operational projects worldwide. Weststrate holds qualifications from the Nautical College at Den Helder and Rotterdam and has undergone vast training in port management. Port of Rotterdam, is the world’s third top cargo junction for transport, distribution and large-scale industrial activities. With an open link to the North Sea, the most heavily navigated sea in the world, the Port of Rotterdam has a huge cargo flow. It is a port of call for around 500 shipping lines that maintain regular services to about 1,000 other ports. In 2005, it achieved a throughput of 369 million tonnes of cargo, a five per cent increase than in 2004. Stretching 40 kilometers along the river Rhine which connects Rotterdam with Switzerland and Germany, the port of Rotterdam covers some 10,500 hectares and is a major contributor to the economy of Netherlands.

ERLO speakr.indd 46

4/25/06 5:12:37 AM

ERAD m.indd 1

4/22/06 3:55:53 AM

executive review

SPEAKERS 48

tan sri datuk G. Gnanalingam

Tan Sri Datuk G. Gnanalingam is the Executive Chairman of Westports Malaysia, among the top 10 ports in Asia. He has been responsible for infusing a new dynamism into the port business and revolutionising the port industry with his innovative concepts of Fastport Standards, Gardenport and Flexiport. He has been a director of Port Klang Authority since 1987 and is currently the President of TIE Malaysia Chapter, a non-profit global network of entrepreneurs and professionals. He is also a Board member of Harvard Business School Alumni Club of Malaysia and was its President in 1992 – 1993. Despite leading a low profile life, his efforts have been recognised by various authorities, including the awards of Datuk and Tan Sri conferred on him by His Majesty, Yang DiPertuan Agong in 1998 and June 2000 respectively. Westports Malaysia is a US$700 million investment project which has garnered awards such as the Best Emerging Terminal award and Asia’s 6th Best Container Terminal, the first Malaysian port to appear on the elite list. In 2000 alone, Westports won awards as diverse as the FIABCI Award of Distinction for the Best Public Sector Development and the US Silver Screen Award for the Port of the New Millennium advertising campaign. These achievements were decisive elements in attracting Hutchinson Port Holdings, the world’s largest independent port operator, to take a 30% stake in Westports in September 2000. In 2005, Westports was given the Best Infrastructure Design Award by Bank Pembangunan Dan Infrastruktur Malaysia Berhad (BPIMB).

ERLO speakr.indd 48

4/25/06 5:12:58 AM

Untitled-2 1

4/20/06 1:11:52 AM

executive review

SPEAKERS 50

Bahri Ouzariah

Bahri Ouzariah is the Export and Halal Director of Innovation Développement En Nutrition Animale (IDENA), one of the first companies in the world to produce Halal animal feed. In a world of growing concerns over food safety, Bahri is convinced of the need for Halal animal feed and its importance in the classification of food as Halal. He believes that it is an aspect that is often overlooked by Muslims. Bahri holds a Bachelor in International Trade and Marketing, a Master in International Trade and Finance and a Master in Export Management. Based in France, IDENA specialises in research and development, innovation and engineering in animal nutrition. Realising the importance of Halal animal feed, IDENA began producing quality premixes and feed formula that are not only Halal but also economical, allowing IDENA to penetrate the global market. In 2004, 4.05 million tonnes of feed was produced worldwide with IDENA’s techniques. The company works in partnership with stakeholders in more than 30 countries in forms of subsidiaries, jointly-owned companies, alliances, know-how transfers and collaboration contracts. Recently, IDENA has developed a new concept of a manufacturing plant for premixes that provides high guarantee of traceability and no crosscontaminations. This concept has been duplicated across different countries with success. In addition, IDENA is also a consultant and premixes supplier of The French Agency for Food Safety (AFSSA), the country’s food safety agency.

ERLO speakr.indd 50

4/25/06 5:13:27 AM

Untitled-7 1

4/20/06 3:05:02 AM

executive review

SPEAKERS 52

Datuk Ibrahim Haji Ahmad Badawi

Associate Professor Dr. Winai Dahlan is the founder and Director of The Halal Science Center in Chulalongkorn University, Thailand. He currently sits on the Executive Board of the Institute for Halal Food Standard of Thailand and is actively involved in the Halal Food Industry Development and Sub-Committee on Halal Product Standard Development of Thailand. His academic contribution includes more than 30 original research articles and more than 50 reviewed scientiﬁc articles published internationally and locally. Dr Winai lead the team at the Halal Science Centre and National Food Institute in developing the integrated Halal-GMP-HACCP System for Thailand’s Halal industry. With a Degree in Biochemistry and a Master in Nutrition, Dr Winai has also received a Ph.D in Applied Medical Biology with grand distinction by the Universite Libre de Bruxelles, Belgium. Under the leadership of Dr Winai, the Halal Science Center, among its many functions, provides analytical services for the detection of non-Halal contaminations in raw materials and ﬁnished products prepared for the Halal food market.

ERLO speakr.indd 52

Datuk Ibrahim Haji Ahmad Badawi is the founder and Executive Chairman of Dewina Holdings Sdn. Bhd, a leading food company in Malaysia. He is also the Chairman of LSG Sky Chefs-Brahim’s Sdn Bhd. Dewina Holdings Sdn Bhd produces the Brahim’s food product line, a household name in Malaysia and overseas which has established a niche in pre-packed, ready-to-serve Asian meals. It recorded a total of 45 million in sales last year. Dewina Holdings Sdn Bhd, through Brahim International Franchise together with the world’s largest in-ﬂight meal provider, LSG Lufthansa Service Holding AG, owns 70% of MAS Catering Sdn Bhd. Known as LSG Sky Chefs-Brahim’s Sdn Bhd (LSGB), the company operates a Halal Excellence Centre, which is responsible for Halal meals on board 25 airlines and forms an expansive global catering network. Dewina’s tie-up with the world’s largest foodservice company, UK-based Compass Group Plc., has also set the path for the company to become a major global supplier of Halal rations and ﬁeld supplier for military and international institutions such as the United Nations.

Dr. Winai Dahlan

4/25/06 5:13:51 AM

ads.indd 2

4/25/06 1:24:03 AM

executive review

SPEAKERS 54

Dato’ Dr. Mohd Nordin Mohd Nor

Dato’ Dr Mohd Nordin is the Technical Advisor to Prima Agri-Products Sdn Bhd, a successful manufacturer and distributor of Halal meat-based products and also, since 2002, the first Malaysian company to be accredited by the European Union for the export of cooked and processed poultry products. As the previous Director General of the Department of Veterinary Services Malaysia, Dato’ Nordin has contributed significantly to the meat-based industry in Malaysia. His contributions include the support and encouragement of the exports of meat-based products through accreditation such as the European Union. He has also constantly encouraged the implementation of HACCP in meat-based companies through adoption of the Veterinary Logo Scheme. Throughout its 18-years of operation, Prima Agri-Products Sdn Bhd has achieved various food production standards of GMP, HACCP, ISO, and EU. Its intensive research & development efforts have resulted in a breakthrough in food processing technology that allows Prima to restructure and substitute non-Halal raw materials without sacrificing taste and texture. Among their latest innovation is the implementation of the INOVAS-E technique, a technique using cholesterol-free vegetable fat, rich in vitamin E, for its delicatessen products. In efforts to accommodate the increase in demand for Halal products, Prima is currently developing a 40 hectare Halal Food Park in Kuantan, Pahang which will integrate the capabilities of small and medium enterprises with the support of Prima’s services and experience to increase the production of Halal food.

ERLO speakr.indd 54

4/25/06 5:14:12 AM

Protemp.pdf

CMY

4/22/06

3:37:09 AM

executive review

SPEAKERS 56

Hilmi bin Mohd Nashir

Hilmi bin Mohd Nashir is the Managing Director/ Chief Executive Oﬃcer of MISC Integrated Logistics Sdn Bhd (MILS). He was with the Malaysia International Shipping Corp (MISC) Bhd in April 2001 as General Manager of MISC Trucking & Warehousing Sdn Bhd. In April 2002, he became the Chief Operating Oﬃcer of MISC Haulage Services Sdn Bhd before being appointed to his current position in April 2005. Formed in 2001, MILS is a subsidiary of MISC Berhad, the second largest shipping company in the world and a recognised provider of world-class maritime transportation and logistics services. MILS acts as a one-stop asset-based service provider that undertakes the nonmaritime logistics solutions and manages processes and services including ocean freighting, distribution and freight forwarding. In response to the increasing potential of the Halal industry, MILS’ is setting up a regional logistics hub with Free Commercial Zone status in Pulau Indah, Port Klang, due to be completed early next year. This logistics hub will be the biggest cold room facility in the region and provide a competitive regional hub solution. MILS’ vision to be the partner of choice in supply chain and logistics services is taking shape under the leadership of Hilmi. As part of its regional expansion programme, MILS has joint venture companies in Sudan, Dubai and Indonesia.

ERLO speakr.indd 56

4/25/06 5:15:55 AM

FAMA.pdf

CMY

4/22/06

3:29:32 AM

executive review

SPEAKERS 58

Hajj Abdalhamid Evans

Hajj Abdalhamid Evans was born in New York and has been widely educated in both the UK and Europe. He accepted Islam in 1978 in Norwich, UK and has since travelled extensively through the Muslim world. He has experience working in the UK, USA, Europe, the Middle East, South Africa and South East Asia. A seasoned researcher and consultant over the last twenty-ďŹ ve years, Hajj Abdalhamid has participated in a wide variety of projects in the ďŹ elds of psychology, health, education, social welfare and political economy, consistently drawing inspiration and applications from Islamic models and traditions to apply to contemporary situations. He joined KasehDia in February 2004 to develop their Research & Intelligence capability, and has played a major role in the creation, content development and promotion of The Halal Journal magazine. An experienced writer and public speaker, he has addressed international forums on a wide variety of subjects, and is a regular contributor to The Halal Journal as well as a senior consultant with KasehDia Consulting. He is also the Workshop Leader for the Halal Journal Workshop Series, where his wide experience and in-depth knowledge of the emerging Halal market can be shared with the participants. These workshops are fast gaining recognition as an indispensisble tool for companies wanting to get on the inside track in this fast-moving market.

ERLO speakr.indd 58

4/25/06 5:14:58 AM

Untitled-4 1

4/20/06 2:27:58 AM

executive review

SPEAKERS 60

Alain Marchand

Alain Marchand is the Director of the Product Security Division of SICPA Holding SA, a leading global provider of security inks and solutions for over 85% of the world’s banknotes. Based in Lausanne, Switzerland, Marchand is currently responsible for project development in Asia Pacific. Marchand has wide experience in the area of security. Following graduation, he started his career as a management trainee with banknote paper-maker Portals, now part of De la Rue Currency in the UK. Alain became sales manager for Central and South America, where he worked with Central Banks promoting paper-based security features for banknotes. He joined the security inks division of SICPA in 1988, where he was responsible for developing markets in Latin America and Asia Pacific. By this time, SICPA had become world leader in both packaging and hightechnology inks for banknotes and value documents. Marchand had stints in Indonesia, the Philippines, Hong Kong, Peru, Macau, Thailand and Singapore, promoting the use of ink-based features to protect the region’s currencies. In today’s world where everything that can be purchased can be counterfeited or tampered with, SICPA has taken the lead and developed a strong position as creator of innovative security solutions and manufacturer of high quality printing inks for packaging and other industries. Their goal, as they put it, is to “ultimately give every product its own DNA”. Through expansion of its international operations, SICPA now has a major presence in five continents.

ERLO speakr.indd 60

4/25/06 5:16:14 AM

HongLeong AD.pdf

CMY

4/20/06

2:12:17 AM

executive review

SPEAKERS 62

Saleh Lootah

Saleh Abdullah Lootah is the Chief Executive Officer of Al Islami Foods, a leading provider of quality Halal products in the United Arab Emirates (UAE) and the Middle East. Saleh joined Al Islami Foods, previously known as Co-op Islami, eight years ago and has held a succession of positions, during which he has overseen significant developments in the company. These developments contributed to the company’s acquisition of a series of quality and excellence awards including the HACCP certificate and the 2003 Dubai Quality Award. Saleh graduated from the California State University in the United States and holds a Master’s degree in Business Administration. He has expertise in food production, distribution and retail. Al Islami Foods is UAE’s leading supplier of Halal meat and poultry and employs the most advanced international technologies in its operations to offer fresh and healthy products. Established in 1981, it was founded by Hajj Saeed Bin Ahmad Lootah with the mission of satisfying the growing demand for genuine Halal food in the Arab world. The company recently re-branded itself with a ‘Real Halal’ tagline as part of an ambitious USD25 million expansion plan to tap the growing global market for halal products and establish a global presence. It aims to become a global leader in the Halal food industry and to be a role model for all food providers worldwide. Regarded as a quality benchmark by consumers across the UAE and the GCC, Al Islami is one of the best and most preferred brands in the region.

Professor John Edwards is the Dean of the School of Veterinary and Biomedical Sciences at Murdoch University in Perth, Australia and has been a leader in veterinary epidemiology and animal biosecurity in Australia and the Southeast Asia region for the last 30 years. Following a period as a veterinary epidemiologist with the state Department of Agriculture, he was appointed Chief Veterinary Oﬃcer for Western Australia from 19932001. During this time he was a member of state and national peak policy bodies and was actively involved in planning for and response to major national animal health emergencies. Western Australia is a major exporter of livestock and animal products to Muslim countries in West Asia and Southeast Asia and this led to an interest in Halal processing of livestock. Professor Edwards was Regional Coordinator for the OIE Southeast Asia Foot and Mouth Disease Campaign from 20012004. In this capacity he strengthened his knowledge of the OIE processes and the sanitary and phyto-sanitary standards underpinning international trade. He also worked closely with governments and industry in all the Southeast Asian countries.

ERLO speakr.indd 62

Professor John Edwards

4/25/06 5:16:36 AM

executive review

SPEAKERS 64

Dr. Habib M’Nasria

Dr. Habib M’nasria is the Quality Assurance Director of McDonald’s Middle East, an arm of McDonald’s, the world’s leading foodservice retailer. With over 230 restaurants located throughout the Middle East, and more than 30,000 restaurants globally, McDonald’s has established itself as one of the world’s most well-known and valuable brands. Dr Habib has been instrumental in the establishment of the McDonald’s Halal Guidelines which are now being adopted not only by Middle Eastern countries, but by countries worldwide. The development of these guidelines has helped increased awareness on the importance of Halal within the McDonald’s community of suppliers. In addition, Dr. Habib has also signiﬁcantly contributed to the alignment of McDonald’s Middle East suppliers to McDonald’s standards of animal welfare, food quality, food safety and social responsibility. In the pursuit of Quality, Service, Cleanliness and Value, the foundation of all McDonald’s restaurants worldwide, Dr Habib provides leadership in the development and implementation of the quality vision, infrastructure and systems needed to protect and enhance the brand of McDonald’s. He works directly with suppliers to ensure the appropriate quality and food safety infrastructure is in place to execute the product quality and food safety plan. Dr. Habib holds a Bachelor of Agriculture and a Masters of Science. He also holds a Ph.D in Food Engineering from Colorado State University.

ERLO speakr.indd 64

4/25/06 5:16:55 AM

Untitled-2 2

4/25/06 1:03:54 AM

executive review

SPEAKERS 66

Sullivan Joseph O’Carroll

Sullivan O’Carroll is the Managing Director of Nestlé (Malaysia) Berhad and Region Head of Nestlé Malaysia/Singapore since July 1, 2003. A psychology graduate of the University of South Africa in his home town of Pretoria, O’Carroll began his career with Nestlé 33 years ago in 1973, when he joined the company as a Merchandising Trainee in South Africa. His last posting before taking up his position in Malaysia was as Market Head of Nestlé Poland, a position he had held since February 2002. O’Carroll is a member of the Executive Committee of the Business Council for Sustainable Development Malaysia, and a member of the Board of Directors of the Malaysia - South Africa Business Council. In response to the growing demand for Halal food, Nestlé has established 50 factories that are certiﬁed Halal for food and beverage manufacturing and has over 100 dedicated Halal production lines. Having built up a body of knowledge about Halal, Nestlé Malaysia is being recognised in the Nestlé world as the centre of excellence for Halal issues. With exports of products worth about RM470 million to mainly the Asian and Middle Eastern markets, Nestlé Malaysia is seen to pave the way for Halal in the Nestlé Group. The company was publicly listed on the KLSE on 13 December, 1989. Today, the company employs over 3,500 people and manufactures as well as markets more than 300 Halal products in Malaysia.

ERLO speakr.indd 66

4/25/06 5:17:11 AM

dindings AD.pdf

CMY

4/20/06

1:51:17 AM

executive review

SPEAKERS 68

Rashid Kadimi

Rashid Kadimi is the Chief Executive Oﬃcer of the Processed Foods Division of Allana Group, India’s largest producer and exporter of agricultural and processed food products. Allana are also the pioneer exporters of Halal meat from India. This 135 year-old family business has grown into a large group of companies headed by Allanasons Limited. Consolidating and centralising the export activities of the Allana Group, Allanasons Limited has become the second largest nett foreign exchange earner in the private sector of India. Currently the world’s largest Halal meat producer, the Allana Group exports Halal meat to 64 countries worldwide. Rashid’s principle responsibility in Allana is to foster the rapid growth and consolidation of the group’s Halal Meat Division with speciﬁc emphasis on market development, value addition and manufacturing systems, standardisation and validation. Under his leadership, Rashid revisited all facets of manufacturing and distribution facilities to ensure that they comply with ISO 9001:2000 for Quality Systems, HACCP for Food Safety, ISO:14001 for Environmental focus and ISO 18001 for Occupational Health and Safety Management Standards. Rashid holds a Bachelors Degree in Engineering and Masters Degree in Management from University of Mumbai. The Allana Group has received several prestigious awards. Among them is the recognition as a Super Star Trading House with Golden Status by the Indian Ministry of Commerce, the highest achievable status for exports of India.

ERLO speakr.indd 68

4/25/06 5:17:30 AM

Untitled-1 1

4/25/06 4:53:37 AM

executive review

SPEAKERS 70 Terry Babbs is the International Trading Law and Technical Director of Tesco, the largest retail chain in the United Kingdom both by global sales and domestic market share. Babbs joined Tesco eight years ago and is currently responsible for ensuring legality, safety and protection of brand reputation in Tesco’s non-UK supply chain, retail and distribution. He is also responsible for ethical sourcing globally. Babbs holds a degree in environmental science and completed his postgraduate studies in Law and Management. Commanding the largest share of supermarket sales in the UK, Tesco also operates more than 600 stores in 12 countries, and is a market leader in six of the countries that they trade in. In the year to February 2005, the Tesco Group had a turnover of £33,974 million with pre-tax proﬁts of £2,029 million in the year to February 2005. Tesco recently revealed plans to enter the United States. This venture will bring the population of markets that Tesco operates in, to 2.1 billion people, contributing to over 55% of global GDP.

Dr. Mohamed Sadek

ERLO speakr.indd 70

Terry Babbs

Dr. Mohamed Sadek is the Vice President of Islamic Food and Nutrition Council of America (IFANCA), a reputable and leading Halal food certification organisation in North America and worldwide. Dr Sadek is also the Chairman of the General Islamic Food Council of Europe and the Secretary General of the World Halal Council headquartered in Jakarta, Indonesia. His contributions include the implementation of strict Halal guidelines at production facilities of major corporations in over 50 countries through out Europe, West Africa and Asia. Dr. Sadek is responsible for the administration of Halal supervision and certification, consultation of export marketing, consumer affairs and government relations. Based in Chicago, IFANCA works to promote Halal food consumption through Halal supervision and certification services, consultations, research and publications, and by sponsoring conferences, seminars and symposiums. It provides certification of food and non-food products in over 20 countries worldwide. IFANCA certified products are endorsed and recognised by many religious and governmental organisations. As a result, these products are sold worldwide and trusted as being authentically certified.

4/25/06 5:17:52 AM

Untitled-3 1

4/22/06 1:47:31 AM

executive review

PANELIST 72

Mohamed Rahman Mohamed Rahman is the National and International Halal Coordinator at the Australian Federation of Islamic Councils (AFIC), the main umbrella body and Islamic authority in Australia that is responsible, among others, for the certiﬁcation of Halal food products. His previous employments in abattoirs and his experience with Islamic organisations lends Mohamed extensive knowledge in various aspects of Halal including slaughtering, supervision, the development of standards for slaughtering, training materials and guidelines for Halal slaughtermen, supervisors and inspectors.

ERLO panel.indd 72

William ‘Bill’ Aossey William ‘Bill’ Aossey is the founder and president of the Midamar (Mid America Agricultural Research) Corporation, a pioneer and a leading distributor of Halal meat and food products in North America. In the early 1980s, Midamar became the ﬁrst North American company to recognise the potential for a high quality USDA inspected and processed line of Halal meat items for U.S. consumers. As a result, Midamar worked with the USDA to develop an accredited Halal program. Midamar currently exports to 35 countries worldwide.

Ahmad Hariri Ahmad Hariri is the Regional Director for the Islamic Development Bank (IDB), an international ﬁnance institution established to foster economic and social development of its member countries and Muslim communities worldwide. Hariri is responsible for overseeing IDB Group activities in the region of Malaysia, Indonesia and Brunei. With 15 years of experience in the development banking industry, Hariri has held various professional posts in IDB was engaged in various project appraisals and implementation. Prior to joining IDB, Hariri served the Ministry of Agriculture in Saudi Arabia.

4/25/06 5:19:34 AM

HONOURING

OUTSTANDING

ACHIEVEMENT

A N D I N N O VAT I O N

IN THE HALAL MARKET

Untitled-4 1

4/21/06 2:17:32 AM

executive review

PANELIST 74

Dato’ Dr. Hj Kardin bin Hj Shukor Dato’ Dr. Hj Kardin bin Hj Shukor is the Director of Dindings Poultry Processing Sdn Bhd, one of the largest poultry processing plants in Malaysia. In his previous position as the Deputy Director General of the Department of Veterinary Services, Kardin played an instrumental role in the pioneering of Halal certiﬁcation in Malaysia and uplifting the disease status of Malaysia in the 1980s. Holding a Degree in Veterinary Science, Kardin is professionally trained as an avian pathologist and knowledgeable in exotic diseases.

ERLO panel.indd 74

Muhammad Hakim See Muhammad Hakim See is the General Manager of Cargill Palm Products (CPP) Sdn Bhd, a leading company in the business of reﬁning palm oil in Malaysia. Having been with CPP for 16 years, See has had extensive experience in the palm reﬁning business. CPP is a subsidiary of Cargill, a multinational based in the United States. Operating in 61 countries, Cargill is a worldwide provider of food, agricultural and industrial products and services. The company’s oils and fats are used in everyday items such as sauces, margarine and cooking oils. They act as important Halal substitutes to non-Halal oils and fats. The superior clarity and high stability of their cooking oil has helped to position Cargill as a premier worldwide supplier of cooking and frying oil. Approximately 90 per cent of CPP products are exported to markets overseas, 50 per cent of which are distributed throughout the Middle Eastern region.

Shafie Shamsuddin Shafie Shamsuddin is the Managing Director of Carrefour Malaysia & Singapore. He is responsible for the expansion, operations and performance of Carrefour’s presence in both countries. Ten years of service and commitment with Carrefour has earned Shafie the title of the first Asian Managing Director appointed within the Carrefour international chain. Carrefour is the 2nd largest retailer worldwide and has had a presence in Malaysia for 12 years. Present in 30 countries throughout the world, Carrefour has more than 9,000 stores, hypermarkets, supermarkets and convenience stores.

4/25/06 5:20:03 AM

The ideal way to reach Britain’s Muslims

the

muslim

lifest yle

maga zine

“a unique Islamically inspired Muslim lifestyle magazine” BBC “emel is on the rise” CNN “the layout is striking and the content absorbing” The Sunday Times

For advertising & subscription t: +44 (0)207 377 5800 f: +44 (0)207 377 5870 e: info@emelmagazine.com visit www.emel.com

Untitled-1 1

4/22/06 2:40:28 AM

executive review

PANELIST 76

Daud Vicary Abdullah Daud Vicary Abdullah is the Managing Director of Hong Leong Islamic Bank (HLIB). He has had 33 years of experience in the field of banking operations and consulting, of which, 12 were spent in Islamic Finance. His work experience has taken him to some 32 major countries in Europe, Asia-Pacific, the Middle East and Latin America. Daud’s areas of expertise include enterprise transformation, technology implementation, process control, treasury-back office operations and change management including Islamic finance.

ERLO panel.indd 76

Syed Mohamed Syed Ibrahim Syed Mohamed Syed Ibrahim is the Chief Executive Oﬃcer of TH Properties Sdn Bhd (THP), a wholly-owned subsidiary of Lembaga Tabung Haji. TH Properties is in the process of developing a worldclass industrial hub, called techpark@enstek which is set within an eco-conscious integrated township. techpark@enstek will be a highly advanced technological hub, and it has plans to house the Department of Islamic Development Malaysia (JAKIM) Halal Complex which will include the Halal Accreditation Centre.

Darhim Dali Hashim MODERATOR Darhim Dali Hashim is the Executive Director of MLC Industries Sdn Bhd. MLC is a company involved in beef and livestock that is committed to spearheading the long-term development of the Malaysian livestock industry towards a self-suﬃciency target of 40% by the year 2015. Darhim has previous experience in the corporate services, business development, ﬁnance and investment sectors. He graduated with a Bachelor of Science (Honours) degree in Economics from the University of Bristol in England.

4/25/06 5:21:09 AM

executive review

MIHAS- The World’s Largest Halal Trade Show

The Malaysia International Halal Showcase (MIHAS) is the product of the global demands and needs for unique entrepreneurs under the banner of Halal. Fully supported by the Prime Minister of Malaysia, YAB Dato’ Seri Abdullah Haji Ahmad Badawi and backed by two key ministries in Malaysia; Ministry of International Trade & Industry (MITI) and Ministry of Entrepreneurs & Cooperative Development (MECD), and Islamic Dakwah Foundation Malaysia (YADIM), MIHAS provides a wider scope for developing an entrepreneurial community as well as an eﬀective market place for Halal products both locally and internationally. MIHAS made its mark in 2004 with a good number of 505 booths exhibiting a wonderful range of Halal produce from food and beverages, pharmaceuticals, toiletries and body care, and Islamic Financial products and services. Adding to the excitement was the launch of Malaysia Standard MS 1500:2004 General Guidelines on the Production, Preparation, Handling and Storage of Halal Foods for industry use.

ERLO end.indd 78

MIHAS is the first of its kind. It is a showcase that caters for a unique market segment which is neither confined to a specific geographical location nor to a specific sector. The Halal market has an infinitely growing number of consumers with a multiplying demand for Halal certified products and services. Driven by this fact, MIHAS went on its 2nd quest, rallying local and international entrepreneurs to explore and exploit the huge potential that the global Halal market has to offer. Flooded by industry professionals from around the world, full of intent rather than curiosity, MIHAS-MATRADE 2005 Business Matching reaped RM217.1 million in immediate sales. Realising the profit that the Halal industry has to offer, the government continuously develop policies that ascertain economic, political and social stability, thus ensuring its dynamic role as the global Halal Hub.

MIHAS, an innovative approach to widen the spectrum of Halal that so far has been associated with only food and beverages is the pinnacle of creation to achieve this aspiration. The 3rd Malaysia International Halal Showcase which will be held from 10th to 14th May 2006 at the Malaysia International Exhibition & Convention Centre (MIECC), MINES Resort City, Kuala Lumpur continues its eﬀort to serve the global Halal industry. Sharing the similar vision and aspiration is ‘The Halal Journal’. The birth of the inaugural ‘World Halal Forum’ in conjunction with MIHAS 2006, which provides a platform for leading Halal industry stakeholders to address the business and trade issues that concern the industry, ensures that Malaysia will keep its leading edge in the Halal industry world-wide. The staging of these worldclass events will leverage on the recognition of Malaysia as a nation that can provide real leadership in the Halal marketplace.

4/25/06 5:22:15 AM

executive review

emel emel is a vibrant and dynamic lifestyle magazine with a Muslim focus. Launched in September 2003, emel covers everything from current aﬀairs to big name interviews, food to ﬁnance, interior design to gardening, education to environment. emel is published every month and has a print run of 20,000. It is the only Muslim publication to have achieved mainstream distribution in the UK, being sold in supermarkets, newsagents and retail outlets. The people behind emel are Sarah Joseph and Mahmud Al-Rashid.

Q-News Since 1992 Q-News has been one of Britain’s leading Muslim magazines, providing outside-the-box analysis of current aﬀairs, culture and ideas. It delivers potent and engaging content, mixed with humour, faith and unconventional wisdom. The magazine provides unique insight into Europe’s most diverse, controversial and politically important minority community. It aims to communicate the Muslim experience like no other. Q-News is currently read by professional, educated second and third generation Muslims, parliamentarians, policy makers and educators.

Business & Financial ‘Business & Financial’ is a Chinese language monthly magazine that concerns about the development of small and medium enterprises (SMEs). It focuses on various business issues, such as practical ways to improve company governance, increasing technological levels as well as enhancing management skills and marketing techniques. The publication aims to help strengthen SMEs economic resilience in general to keep up with the current global business environment. Regular features include Economic Trends, Eye on the World, Management Forum, and Branding.

ERLO end.indd 80

4/25/06 5:23:08 AM

THE NO. 1 TRADE PUBLICATION FOR THE GLOBAL HALAL MARKET

International Halal News Insightful Editorial Research Products Services

To subscribe online log on to

www.kasehdia.com

I WOULD LIKE TO SUBSCRIBE TO THE HALAL JOURNAL FOR Name Organisation Address

6 issues

Post or fax your subscription form to:

Postcode Phone

City Fax

KASEHDIA SDN BHD 31-2 PLAZA CRYSTALVILLE JALAN 22A/70A DESA SRI HARTAMAS KUALA LUMPUR 50480 MALAYSIA

SUBSCRIPTION RATES (PLEASE TICK (√) YOUR LOCATION) 6 issues Malaysia RM59.40 12 issues Malaysia RM115

subscription form

• tel: +6 03 6203 1025 • fax: +6 03 6203 4072 • email: info@halaljournal.com

www.halaljournal.com

HJ ER subs.indd 1

12 issues Position

State Email

Asia/Pacific US$24.90 Asia/Pacific US$49

Rest of World US$29.90 Rest of World US$59

PLEASE SELECT AND TICK (√) A PAYMENT OPTION BELOW (a) I enclose a cheque for RM payable to KasehDia Sdn Bhd (b) Please invoice me at the address above. PLEASE CHOOSE (√) FROM THE FOLLOWING HALAL FOOD GUIDES Kuala Lumpur Singapore Dubai Australia

London

Canada

New Zealand

4/25/06 4:48:52 AM

executive review

Islamic Finance News The Islamic Finance News is a bi-weekly (25 issues per year) electronic newsletter that provides unrivalled editorial coverage of the global Islamic capital markets. The ‘News Briefs’ section provides a comprehensive library of deals and news worthy stories from around the globe from the previous two weeks. Its ‘Country and Sector Reports’ oﬀer exclusive insight into the Islamic capital markets. Islamic Finance News is also packed with Case Studies, Takaful News Industry Performance League Tables, Moves & Promotions, Events, Training Courses and more. www.IslamicFinanceNews.com carries the full archive of all past issues. With a user-friendly search mechanism past reports and articles are just a few clicks away. For a free trial email them at geraldine. chan@islamicﬁnancenews.com or call: +603 2141 6024.

Islamic Finance Information Service (IFIS) IFIS is a unique global Islamic finance online portal designed to meet the unique requirements of the Sharia-compliant finance industry participants. It tracks exclusively the developments in the Islamic financial world with its specially designed tools. The tools include league tables for Islamic bonds, and transactions, Shariah scholar specialisation, structured finance and securitisation reports and rankings of the top industry players. It also houses database on the top global law firms involved in Islamic finance and financial market information. For more information, please visit www.securities.com/ifis/

Zawya / AsiaMENA Established in London in 2000, ABQ Zawya operates the Middle East and North Africa (MENA) regions’ most comprehensive business, finance and Islamic financial portal, www.zawya.com. Today, zawya.com is the only premium based information platform focused on the MENA region with a global user base of over 140,000 high-end business and financial professionals. ABQ Zawya is headquartered in Dubai with sales and support presence in London, Beirut, Bahrain, Riyadh, Kuwait and Kuala Lumpur.

ERLO end.indd 82

4/25/06 5:23:49 AM

hj.com ad er.pdf

18/4/06

4:25:49 pm

A global market 1.6 billion customers 142 countries US$580 billion in sales 650 articles 20 categories 1 website Updated daily

www.halaljournal.com

CMY

Get the picture www.halaljournal.com searchable online Halal news archive

Targeting the World’s Halal Pharmaceutical Market INTRODUCTION CCM Pharmaceuticals (“CCMP”) is a division under Chemical Company of Malaysia Berhad, a company listed on Bursa Malaysia’s Main Board. CCMP is principally engaged in the manufacturing, distributing, importing and exporting of pharmaceutical products and medicines. The division consists of the following: A. Manufacturing Units 1. Upha Pharmaceutical Manufacturing (M) Sdn Bhd 2. CCM Pharma Sdn Bhd B. Marketing Unit CCM Pharmaceuticals Sdn Bhd (Formerly known as Upha Corporation (M) Sdn Bhd) C. Retail Outlet Prima-health Pharmacy (Retail) Sdn Bhd CCMP is one of the leading local manufacturers of quality pharmaceutical products, producing over hundreds of them across a wide therapeutic group which includes antibiotics, analgesics, antibacterial, antihistamines and many others. It also manufactures over a hundred health and food supplements such as vitamins and herbal preparations. Apart from being a contract manufacturer for multinational pharmaceutical companies, CCMP also exports its own products throughout ASEAN, Asia Pacific and other parts of the world. FACILITIES & PRODUCTS CCMP’s manufacturing units have been certified as a manufacturer meeting the Good Manufacturing Practice (“GMP”) standards of the Ministry of Health, Malaysia and the Pharmaceutical Inspection Convention and Cooperation Scheme (“PIC/S”). Its softgel plant has also been certified by the Australian Therapeutic Goods Administration (“TGA”). Its products under the brands Champs, Flavettes, Naturalle and Proviton are certified “HALAL” by JAKIM. CCMP also adheres to Good Laboratory Practice (“GLP”) and Good Storage Practice (“GSP”). All these certifications ensure that the quality and hygiene aspects of CCMP’s products are consistently of high standard. The main therapeutic areas of CCMP’s ethical products are as follows: • Cardiovascular - Perinace, Vascor • Gastrointestinals - Omesec, X’tac • Antibacterials - Efurox, Enoxin • Ophthalmology - Nicol, Neo Deca • Cough & Cold - Promedyl, Allavin • Antihistamines - Carin, Simtec Some of the above products have successfully undergone Bioequivalent (BE) studies, for example Omesec (Omeprazole), Vascor (Simvastatin) and X’Tac (Ranitidine).

ERLO end.indd 84

CCMP’s Over The Counter ( OTC ) products are as follows: Main Products Children health supplements Adult health supplements Multivitamin & minerals with Ginseng Natural health supplements Muscle pain relief Pain/fever relief Mouthwash Eye care Nasal congestion relief Gastric pain relief Constipation relief Skin ailment relief Sugar substitute

Brands Champs Flavettes Proviton Naturalle Sloan’s Uphamol O-Fresh Eye Glo Upha Vapour Rub Alucid Beacolux Dermoplex Sweetz

CCMP’s products have also been honoured with numerous awards locally as well as in the region as follows:Year 2005 2005 2005 2005 2004 2004 2004 2003 2003 1999

Award Super Branding (PARENTS Magazine– Hong Kong) Guardian Customers’ Choice Watsons Best Sugar Free Vitamin C Watsons Best Children Vitamin Range MITI Industry Excellence-Innovative Product Superbrands Malaysia Watsons Best Children Vitamin Range Guardian Health & Beauty Consumer Choice Guardian Health & Beauty Consumer Choice MITI Industry Excellence- Pioneer in Research of Excellent Product Quality

Brand Champs Champs Flavettes Champs Omesec Champs Champs Champs Flavettes Proviton

EXPANSION PLAN (i) Capital Expenditure A new state-of-the-art manufacturing facility is being built on a 90,000 sq ft area adjacent to the current manufacturing facilities in Bangi. Scheduled to be commissioned in 2007, it would be equipped with high speed machines employing the latest technology to cater to the demands from the region. (ii) Regional New oﬃces and workforce are being set up at key countries in the region: Singapore, Hong Kong, Indonesia and Vietnam. CCM PHARMACEUTICALS EXPORT MARKET ASEAN: Singapore • Cambodia • Myanmar • Thailand • Indonesia • Brunei Darussalam • Vietnam ASIA PACIFIC: Hong Kong/Macau • Taiwan • New Zealand • Fiji • Papua New Guinea • Pakistan • Sri Lanka • Maldives REST OF THE WORLD: Nigeria • Uganda • Ghana • South Africa • Kenya • Mauritius

4/25/06 5:24:16 AM

Untitled-6 1

4/20/06 2:50:45 AM

executive review

Halal Joint Venture Realising the potentials of the globally-recognised Malaysian Halal certiﬁcation in many Muslim-majority export markets, Prima Agri-Products have taken the lead by announcing a joint venture with an Australian counterpart to produce Halal beef patties for the regional fast food restaurant chains, including Burger King, A&W, TGI Friday and American Chili’s.

Their partner, Comgroup Supplies Pty Ltd, have brought in their state-of-the-art production line, management expertise and ready markets of many international institutional buyers. The new entity, Comgroup Prima (M) Sdn Bhd, will be producing Halal valueadded meat-based products at their facility in Bangi beginning this year. Headquartered in Brisbane, Queensland, Comgroup Supplies Pty Ltd has been in production for more than 35 years and is one of Australia’s largest and most diversiﬁed manufacturing and marketing organisations specialising in the production of frozen meat products for the fast food and catering industry. Producing within their main manufacturing facilities in Brisbane and Perth, the company now commands the trust of many global fast food brands that operate locally in Australia but have franchise networks spanning more than 26 countries. They include major fast food brand names, the likes of Hungry Jack’s, Domino’s Pizza, Pure Foods, Burger King, A&W, Coles, Woolworth, Butlers and Dunkin Donut.

ERLO end.indd 86

With the aggressive push by the Malaysian government to become a global Halal hub, Comgroup, who have been actively seeking more opportunities to manufacture Halal meat-based products in Malaysia, will have that opportunity in Prima-Agri Products. Headquartered in Kuala Lumpur, Prima-Agri Products is one of Malaysia’s largest manufacturers of delicatessens Halal-meat, specialising in the production of sausages, cold cuts, sate, cook chill sauces, soups and prepared foods, and convenience foods. Their manufacturing plant in Bangi has been accorded numerous international accreditations and certiﬁcations. Aside from the ISO 9001:2001, HACCP, GMP and Halal, the plant is also the only facility in Malaysia to be accorded with the stringent export status to the European Union for cooked and processed poultry products.

To comply with the set requirements by Comgroup’s customers, their Halal facility is also being audited by all of their international buyers, including Burger King, Pizza Hut, Domino’s and A&W. Prima-Agri Products have also built up successful local and export markets, with their PRIMA and BAGUZ brands being marketed to institutional and food service sectors both locally and internationally, including Singapore, Hong Kong, United Arab Emirates and the European Union countries. The oﬃcial signing ceremony of the joint venture agreement is scheduled to be held at the inaugural World Halal Forum in Kuala Lumpur.

4/25/06 5:24:38 AM

McDonald’s Malaysia Halal Commitment

McDonald’s has been operating in Malaysia for more than 20 years. We have been operating as a local company owned and operated by locals who are sensitive and have deep respect for the local culture and religious practices. McDonald’s has always complied with all Halal requirements. From its ﬁrst day of operations in Malaysia on 29 April 1982, McDonald’s has ensured that its products, from raw ingredients and cooking utensils to ﬁnished products, have been strictly in compliance with the Islamic Halal requirements of the Government of Malaysia.

McDonald’s is the first quick service restaurant to receive the Halal certification in Malaysia from the Islamic Section of the Prime Minister’s Department of Malaysia (BAHEIS). McDonald’s ensures that our products are the highest quality and standard is a top priority at McDonald’s restaurants worldwide. Our goal is to achieve 100% customer satisfaction without exception. Towards this, McDonald’s is committed to ensure that all the Halal requirements are observed at all times. McDonald’s made it compulsory to all its suppliers to strictly adhere to the same Halal standard. Our aim is nothing than delivering the highest quality of food that fulfills the Halal standards to our valued customers.

it’s what i eat and what i do™ McDER.indd 1

4/25/06 1:36:29 AM

executive review

Nestlé Malaysia’s Commitment to Halal From breakfast cereals to beverages and milks, instant noodles to chocolates and ice cream, every product manufactured and marketed by Nestlé Malaysia is certified Halal. For Nestlé Malaysia, part of the world’s largest food manufacturing company, Halal certification became the core of the manufacturing process of its products, even before the Islamic Development Department of Malaysia (JAKIM) introduced the official “Halal” logo more 10 years ago. Offering Halal products is the commitment and responsibility of the Company to its consumers, in particular Muslim consumers, and therefore all products manufactured, imported and distributed by Nestlé Malaysia are certified “Halal”. Regardless whether it is imported or manufactured locally, every product from Nestlé Malaysia has been through a thorough inspection of the raw materials, manufacturing processes and even storage facilities to be certified Halal and to earn the right to carry the Halal logo endorsement on its packaging. These steps are taken to ensure that consumers can truly enjoy Nestlé products with absolute peace of mind. In order to reinforce the consumer’s faith in its products, Nestlé Malaysia also places great emphasis on cleanliness in the manufacturing processes of its products. The Company believes that Halal food must also be produced meticulously and in a clean manner so as to not be detrimental to one’s health. This means that not only are the food products prepared in accordance to Islamic requirements, the manufacturing process also adheres to the strict control for cleanliness such that the food produced is hygienic and not harmful to health, hence providing more confidence

ERLO end.indd 88

to all consumers, both Muslims and non-Muslims. The Company’s commitment towards hygiene encompasses every manufacturing process. Stringent controls are taken at every stage of the production process to ensure the highest standards of hygiene and sanitation are maintained: • Premises for manufacturing and sale of Nestlé products are clean and free from pests • Workers in its factories are healthy and are attired in clean protective clothing • All equipment are washed regularly to ensure cleanliness • Washroom facilities are maintained to the cleanest standards Like every single Nestlé facility around the world, Nestlé in Malaysia operates based on the same world class policies, standards and work ethics set by the Nestlé headquarters in Vevey, Switzerland. In addition, Nestlé facilities also comply with the regulations and procedures set by the local government where the company operates. Producing products that are guaranteed Halal not only benefits consumers. It also makes good business sense as the manufacture of Halal products presents an excellent business opportunity, enabling the Company to penetrate the global Halal food market. Anyone, be it Muslim or non-Muslim, can utilise or enjoy Halal products. This means that the potential for Halal food is as huge as the world’s food industry which is worth US$1.3 trillion. The Halal food industry alone is worth US$150 billion, a market with a very huge potential. Therefore, it is only appropriate that Nestlé takes advantage of this situation by offering the benefit that its products are guaranteed Halal. Nestlé Malaysia also exports its products to

countries in Asia, the Middle East, Australia, Europe and the US, among others. Demand for Halal goods is on the increase and this brings a positive impact on the Company’s export business. Another factor that encourages Nestlé to place

companies in the food and beverage industry. Besides providing guidance and advice on business operations and food manufacturing, the programme includes a module on Halal such that participants realise the potential of the

The commitment in manufacturing Halal products is not only a priority in Nestlé Malaysia, but is also supported by the Nestlé headquarters that had produced the Guidelines for Supply of Halal Products. great emphasis on Halal is that it gives the Company a competitive advantage over other food manufacturers whose products are not Halalcertified. The commitment in manufacturing Halal products is not only a priority in Nestlé Malaysia, but is also supported by the Nestlé headquarters that had produced the Guidelines for Supply of Halal Products. Based on the Company’s experience and efforts in producing Halal products, Nestlé Malaysia has been given the credence when it was appointed the Centre of Excellence for Halal food for the global Nestlé market; providing guidance and advice to other Nestlé markets with regard to Halal related issues. From the local perspective, Nestlé has indirectly contributed to the nation’s effort to become the regional hub for Halal food. In fulfilling its social obligations, Nestlé Malaysia also collaborates with the National SMI Consultative Centre to conduct a mentoring programme for the local small-to-medium-industry

Halal food industry that could provide them with a competitive edge. This Halal module also explains the procedures involved in the process of Halal certiﬁcation. As an additional safeguard, Nestlé Malaysia also has its own internal control system to ensure that products manufactured are truly Halal. The Nestlé Halal Committee, made up of Muslim executives from various disciplines, is responsible for all Halal matters within the company. It does not compromise on the Halal issue and is fully committed to its strict implementation. This is in addition to the regular inspections carried out by the relevant authority. Nestlé, Malaysia’s leading and trusted food, nutrition, health and wellness company, has been nourishing Malaysians since 1912. It is committed to satisfying real consumer needs, producing and selling Halal products of the highest consistent quality, reliability and convenience, for the ultimate wellbeing of its consumers.

4/25/06 5:25:04 AM

Somewhere, anywhere It is good to have a company you can trust

YOUR PERSONAL TRAVEL & TOUR SOLUTION PROVIDER Official Travel Agent • WORLD HAL AL FORUM • MIHAS 2006 For deta ils conta ct: INDA LU C IA T O U R S & T R AVEL S D N BHD (K K K P No . 2477) (C o. No. 106013- M) G r ound Flo o r, W isma Ismazuri. N o. 38, Jalan 4/76C, D esa Pandan 55100, Kuala Lum pur, MALAYS IA t : + 6 0 3 9 2 8 7 9 6 8 8 f : +6 03 9282 3188 e: inda2477@streamyx .com

TICKETING

IndaluciaA4.indd 2

INBOUND/ OUTBOUND

DOMESTIC/ INTERNATIONAL

VISA/ TRANSFER/ HOTEL

SPECIAL HANDLING

CUSTOMISED PACKAGES

+OTHER TRAVEL SERVICES

4/25/06 4:51:14 AM

executive review

advertorial

Malaysia - Global Hub for Islamic Capital Market Products and Services The vibrant and efficient Islamic capital Market (ICM) in Malaysia today has largely been attributable to the fact that the Islamic capital market has increasingly been attracting two different categories of investors - those who recognise it as a viable alternative form of financing or investment, and those who are specifically inclined towards investing and utilising only products that conform with Shariah principles. Since the first issue of Islamic bonds in 1990, Malaysia continues with its focus to provide a wide range of products to meet the investment, financing and risk management needs of market players, both local and at the global front resulting in greater depth and breadth of the Islamic capital market. As at end-2005, there were 857 Shariah-compliant stocks listed on Bursa Malaysia, comprising 85% of the total listed securities on the exchange. The availability of Shariah-compliant stocks has also provided the necessary impetus for the development of the Islamic funds management industry. Starting with two equity funds in 1993, there are as at February 2006, 85 Shariah-based unit trust

funds comprising both equity and bond funds with a net asset value (NAV) of over USD2 billion (RM8.5 billion) or about 9% of the total NAV of the unit trust industry. Shariah-based unit trust funds in Malaysia have also recorded very impressive growth with NAV growing at a compounded annual rate of 26.1 %, while the total industry grew at a rate of 8.4% over the last ten years. The release of the Guidelines on the Oﬀering of Islamic Securities by the Securities Commission (SC) of Malaysia further paved the way for more sophisticated and innovative Islamic instruments such as the Sukuk Ijarah and more recently the issuances of Sukuk Mudharabah and Sukuk Musyarakah by Malaysian companies. Total outstanding Islamic corporate bonds as at February 2006 stood at about RM91 billion or 44% of total outstanding corporate bonds. The launch of Dow JonesRHB Islamic Malaysia Index and the issuance of Islamic bond by World Bank have been the other major developments, testifying to Malaysia’s position as an international Islamic ﬁnancial centre.

Malaysia is also the first jurisdiction to issue the Guidelines for Islamic Real Estate Investment Trusts, which has set the global benchmark for the development of Islamic REITs. The efforts of the Malaysian Government over the past decade or so in developing the ICM have shown results. These efforts were initially driven by the specific need to address effective and efficient mobilisation of funds of Islamic banks, takaful as well as other Islamic institutions such as Tabung Haji, and enhancing the liquidity management of these sectors. Today not only has this objective been attained, Islamic capital market products and services have also become part and parcel of the broader capital market landscape in Malaysia, offering viable and competitive alternatives to conventional products and services, hence reflecting their increasing popularity and acceptability both as financing and investment tools. Visit the Securities Commission website at www. sc.com.my for more information on the Malaysian Islamic capital market.

Malaysia is also the ﬁrst jurisdiction to issue the Guidelines for Islamic Real Estate Investment Trusts, which has set the global benchmark for the development of Islamic REITs.

ERLO end.indd 90

4/25/06 5:25:27 AM

Islamic Markets Programme 10–14 July 2006 • Securities Commission • Kuala Lumpur, Malaysia This five-day training programme offers a progressive learning platform to better understand the principles of modern Islamic finance, realise its business potential and explore its implications to the overall economy. This programme is designed to enable participants, among others, to compare conventional and Shariah-compliant project financing structures, explore the wide range of Islamic financial instruments available and discuss its universal business appeal and acceptability with business leaders.

Programme structure • Fundamentals of Islamic finance • How the Islamic capital market works • Islamic securitisation and Islamic structured finance • Islamic capital market products for risk management • Market updates and contemporary issues

Who should attend Policy makers, regulators, chief executive officers, senior managers, investment advisers, business development managers, asset and fund managers, compliance managers, bank managers.

Hurry! Register Now!

ERAD m.indd 1

Level Intermediate

For more information, log on www.sc.com.my

Registration closing date is 7 July 2006. Contact: SIDC CORPORATE SERVICES Tel: 603-6204 8667 / 8669 E-mail: sidc@seccom.com.my

Suruhanjaya Sekuriti Securities Commission

Securities Industry Development Centre

4/22/06 3:13:39 AM

The World Halal Forum 2007 THE PREMIER GLOBAL HALAL INDUSTRY EVENT

updates and pre-registration on

www.worldhalalforum.org

ERLO end.indd 92

4/25/06 5:26:32 AM

Untitled-1 1

4/21/06 1:56:18 AM

www.worldhalalforum.org

ER cov bk.indd 2

4/25/06 4:54:30 AM