{"id":24439,"date":"2020-09-17T15:46:25","date_gmt":"2020-09-17T07:46:25","guid":{"rendered":"http:\/\/www.hdcglobal.com\/2020\/09\/halal-to-the-world-malaysias-hdc-gearing-up-to-provide-consultancy-to-foreign-governments\/"},"modified":"2020-09-17T15:46:25","modified_gmt":"2020-09-17T07:46:25","slug":"halal-to-the-world-malaysias-hdc-gearing-up-to-provide-consultancy-to-foreign-governments","status":"publish","type":"post","link":"https:\/\/hdcglobal.com\/ms\/2020\/09\/17\/halal-to-the-world-malaysias-hdc-gearing-up-to-provide-consultancy-to-foreign-governments\/","title":{"rendered":"Halal to the world: Malaysia\u2019s HDC gearing up to provide consultancy to foreign governments"},"content":{"rendered":"<p>KUALA LUMPUR &#8211; Malaysia\u2019s Halal Development Corporation Berhad (HDC) is getting ready to announce several government-level collaborations with other countries to help develop their national halal infrastructures.<\/p>\n<p>Salaam Gateway understands that nations including Russia, Taiwan and Senegal, as well as some republics in Central Asia, have called on HDC, the government agency that promotes Malaysian expertise overseas, to advise on building their halal capabilities.<\/p>\n<p>These countries are working with HDC\u2019s Halal Consultancy business unit in a bid to devise frameworks for the development of their own halal industries so they are better placed to tap into the global halal market.<\/p>\n<p>According to HDC chief executive Hairol Ariffein Sahari, these intergovernmental collaborations are part of a new strategy this year that will allow Malaysia to capitalise more on its halal expertise.<\/p>\n<p>\u201cFor years, Malaysia has been very successful in promoting halal to the rest of the world through its certification, which is now seen everywhere as the gold standard. But we are yet to benefit from this in terms of trade,\u201d Hairol Ariffein told Salaam Gateway.<\/p>\n<p>According to figures quoted this year by MATRADE, Malaysia\u2019s external trade promoter, of the near 7,500 companies involved in the halal industry, only a quarter export abroad.<\/p>\n<p>Hairol Ariffein himself recently admitted that Malaysia had a trade deficit in halal products, with $25 billion in imports, compared with exports of just $10 billion.<\/p>\n<p>\u201cThe Malaysian halal ecosystem needs to be better connected to halal ecosystems in other countries through a robust supply chain,\u201d he said.<\/p>\n<p>\u201cTo address this, we have entered into a strategy that will position us at the centre of the global halal industry, and part of this will be by helping other countries develop their competence.\u201d<\/p>\n<p><strong>HALAL MASTERPLAN<\/strong><\/p>\n<p>The strategy is part of HDC\u2019s\u00a0<a href=\"http:\/\/www.hdcglobal.com\/wp-content\/uploads\/2020\/02\/Halal-Industri-Master-Plan-2030.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Halal Industry Master Plan 2030<\/a>\u00a0that sets out to deliver a two-thirds increase in Malaysia\u2019s domestic returns from the halal industry by 2030, while also increasing its contribution to GDP to 11%,\u00a0<a href=\"http:\/\/mrem.bernama.com\/viewsm.php?idm=37026\" target=\"_blank\" rel=\"noopener noreferrer\">from 7.4% today<\/a>. It is expected that the plan\u2019s goals will be revised upwards later this year.<\/p>\n<p>In addition to offering a more internationally focused Halal Consultancy, the masterplan also seeks to help halal industry workers to network in new markets by training them as third-party auditors through HDC\u2019s Halal Training Institute.<\/p>\n<p>More productivity is hoped to come through an expanded network of halal manufacturing and services parks in Malaysia, while a software platform under development aims to provide an online marketplace for 200,000 local halal SMEs.<\/p>\n<p>By establishing soft power at the highest level in countries with a strong interest in developing their halal ecosystems, Malaysia will be able to ingrain its certification and instill greater dependence on its systems and supply chain in those markets.<\/p>\n<p>\u201cFor this year, our business unit has been focusing more on getting companies ready for JAKIM certification, introducing consulting services for halal-certified companies and other halal establishments, and helping all entities to come up with their halal strategies,\u201d said Dhaliff Anuar, head of HDC\u2019s Halal Consultancy.<\/p>\n<p>\u201cSo we have been bringing this outside of Malaysia and we want to help other countries to develop their halal economies by imitating what Malaysia has done. By tapping into our knowledge, we\u2019ll crack it for them\u2014we can help them and guide them through their objectives,\u201d said Dhaliff, who was previously manager for halal industry and integrity service at PwC Malaysia.<\/p>\n<p><strong>JAKIM CERTIFICATION INTERNATIONAL VALUE CHAIN<\/strong><\/p>\n<p>If Malaysia wants to increase the amount of its halal trade, and in turn reduce its deficit, it will need to produce more goods backed by its certification system. But to manufacture processed food, which MATRADE believes amounts to 70% of Malaysia\u2019s halal industry, it needs imported ingredients that JAKIM demands be traced all the way back along the value chain. This can be expensive and time-consuming for the 98.5% of Malaysian businesses\u00a0<a href=\"https:\/\/www.smecorp.gov.my\/index.php\/en\/policies\/2020-02-11-08-01-24\/sme-statistics\" target=\"_blank\" rel=\"noopener noreferrer\">that are SMEs<\/a>.<\/p>\n<p>By using its influence and the weight of JAKIM certification in other parts of the world that supply Malaysia with ingredients, there can be traceability throughout a halal value chain that has Malaysian standards across every link. It is also likely that the country will entice more foreign businesses to invest in manufacturing on its soil.<\/p>\n<p>China\u2019s biggest tea brand, Tae Tea, is one such company. It sees new opportunities among Muslim consumers in Southeast Asia, the Middle East and Europe through halal certification and has ambitions to expand its production into Malaysia.<\/p>\n<p>\u201cOur plan is to have new products that are halal-certified. We are interested in entering the Malaysian market, as it is a very important hub connecting Asia with the Middle East and neighbouring countries,\u201d Dennis Wu, deputy general manager of Tae Tea, told Salaam Gateway.<\/p>\n<p>Tae Tea was introduced to HDC by the Malaysian consul general in Kunming earlier this year. With its vast plantations, several factories and a lengthy supply chain, the company\u2019s scale necessitates guidance through the certification process, while Halal Consultancy\u2019s involvement will be sure to help open doors in the market.<\/p>\n<p>\u201cThe halal segment is our biggest potential market for a new group of consumers. If everything goes okay, we will proceed to build a factory in Malaysia, from which we can distribute more product overseas.<\/p>\n<p>\u201cWe are doing this to get easier access to Muslim markets from Malaysia. We are working to get through the halal certification process, and then we will see if our products are accepted by halal consumers,\u201d Wu added.<\/p>\n<p><strong>GOVERNMENT LEVEL HALAL CONSULTANCY<\/strong><\/p>\n<p>Dhaliff said Halal Consultancy is the \u201csupport system for Malaysia\u2019s initiative to go forward and convert all players into participating in the halal economy\u201d. Governments and national religious officials have recognised this and some have approached Malaysia through diplomatic channels to call on its halal experience.<\/p>\n<p>\u201cMost of the enquiries we have received are from countries that want or need to somehow develop their own individual halal national framework so they can acquire more halal trade,\u201d Dhaliff said.<\/p>\n<p>\u201cThey intend to gain a deeper and better halal ecosystem, or halal economy, in their countries. Normally, we would propose for them to have a masterplan or blueprint or action plan. The service we provide include compiling studies, analyses, reports and statistics. It\u2019s kind of normal consultation work, just that what we provide is the halal essence to it.\u201d<\/p>\n<p>Halal Consultancy is currently in talks with Russian authorities ahead of signing a partnership. It is likewise discussing engagement with Senegal, which is also representing the 15-country Economic Community of West African States (ECOWAS).<\/p>\n<p>\u201cThis government-to-government agenda will probably take some time to position with the consulting,\u201d Dhaliff added.<\/p>\n<p>In Taiwan, where HDC has already been working with the country\u2019s Food Industry Research and Development Institute to develop its halal industry, a consultancy pitch is on the table. And in China, where it has a representative office and there is a strong trade ministry focus, the emphasis has been on encouraging big companies like Tae Tea to adopt Malaysian halal certification.<\/p>\n<p>\u201cWe will tell these countries what they need to do to go forward, to form up, to establish their halal framework and all that; whatever gaps that they need to fill. This is where our consultancy helps. We can transfer the knowledge because Malaysia has that expertise,\u201d Dhaliff added.<\/p>\n<p>(Reporting by Richard Whitehead; Editing by Emmy Abdul Alim emmy.abdulalim@salaamgateway.com)<\/p>\n<p><strong><em>*Correction: HDC&#8217;s name in the opening para was corrected from Halal Industry Development Corporation to Halal Development Corporation Berhad. HDC was corporatised in December 2019.<\/em><\/strong><\/p>\n<p>\u00a9 SalaamGateway.com 2020\u00a0All Rights Reserved<\/p>\n<p>Sources: <a href=\"https:\/\/www.salaamgateway.com\/story\/halal-to-the-world-malaysias-hdc-gearing-up-to-provide-consultancy-to-foreign-governments\">salaamgateway.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>KUALA LUMPUR &#8211; Malaysia\u2019s Halal Development Corporation Berhad (HDC) is getting ready to announce several government-level collaborations with other countries<\/p>\n","protected":false},"author":1,"featured_media":24431,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_FSMCFIC_featured_image_caption":"Photo: Dhaliff Anuar is head of Malaysia's Halal Industry Development Corporation (HDC) Halal Consultancy. 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