principle of marketing global halal hub (hdc)

8/7/2019 PRINCIPLE of MARKETING Global Halal Hub (HDC)

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PRINCIPLE of MARKETING MGM 3211

SEMESTER 2009/2010 (1)

GLOBAL HALAL HUB (HDC)

PN. JULIANA JOHARI

MOHAMAD KHAIRUL NIZAM 149100

LUQMAN BIN SULAIMAN 147501

ANAS SYAZWAN BIN MOHD SAH 145988

MOHAMMAD AIZAT BIN MAZLAN 149099

MOHAMMAD FIRDAUS BIN IBRAHIM 147608



CONTENTS

i. Introduction 1

ii. What is Halal 3

iii. Step getting Halal certification 5

iv. How Halal certificate assist promote the product 7

v. Other ser vice by HDC 11



INTRODUCTION

The mandate set up HDC was mentioned by 5th Pr ime Minister, Tun

Abdullah Ahmad Badawi, on 31 March 2006 at the tabling of the motion f or the Ninth Malaysian Plan, 2006 to 2010 ( Plan ). Dur ing the tabling, Tun

Abdullah announced that ³To lever age on Malaysia¶s advantages in the Halal

sector, particular ly in term of certification and logo recognition, the Plan will

dr ive the sector ¶s growth in making Malaysia an international hub f or Halal

products and ser vices. The Halal Industr y Development Corpor ation will be established to

develop this industr y in a holistic and order ly manner .´

HDC was established on 18 September 2006 to co-ordinate the

over all development of the industr y with its main f ocus being the

development of Halal standards, audit and certification, capacity buildingf or Halal products and ser vices as well as to promote and facilitate and

participation of Malaysian companies in the global Halal mar k et.

The company¶s k ey pr imar y f ocus is to unify the national Halal industr y player s to f orm

the basic of a global halal community. This is aimed at facilitating the growth and participation

of Malaysian business into the global Halal mar k et, by promoting best Halal pr actices and the

development of Halal standards f or the wor ld.

Vision: Build Malaysia as the global support Centre f or all Halal standard products and ser vices.

Mission: Create value f or business participation in the Global Halal Industr y to benefit Malaysia¶s economy.

Halal Certification Approval Panel

Eff ective f rom 1st August 2009, the Halal certification Approval Panel was dissolved due

to the tr ansf er of Halal certification responsibility f rom HDC to JAK IM.

HDC Syariah Panel

The Syar iah Panel of HDC was f ormed in May 2008 with the mandate given by the

Board of Director s of Halal Industr y Development Corpor ation SdnBhd(HDC) to advise on

matter related to Halal, syar iah and at the same time ensur ing that HDC comply with the str ict

requirements of Syar iah Law and run par allel with the National Fatwa decision.

The panel is made up f rom prominent Syar iah scholar s and jur ists in Malaysia, who are

independent and experts in var ious fields of Syar iah. The committee meets regular ly to:



1) Maintain in the integr ity of HDC

2) Advise and/or recommend on the matter s related to syar iah and the new development of

Halal either domestic or international

3) R espond to inquir ies f rom the industr y or public



HALAL

The halal certification symbol is a trusted mar k f or Muslim¶s and non-Muslim globally. It

is a guar antee that all is good and saf e f or use and consumption. For millions of Muslim¶s around

the word, halal is a pre-defined Islamic standard which is in line with the view of halalanthoyyiban which liter ally means permissible, saf e and wholesome. It is a standard and a

way of lif e that has inculcated and ensures hygienic, ethical, environment-f r iendly and humane

pr actices into its entire value chain and processes.

The Halal Stamp of Malaysia

The Malaysian halal logo is an instant recognition that a product of ser vice has under gone

str ingent quality processes bef ore being as saf e f or consumption. It is also a trusted premium

symbol of quality. If halal products are exported to other countr ies, it will automatically be the

fir st choice f or Muslim consumer s as they are obliged to consume only halal f ood. Products that

are halal certified mean they are wholesome, healthy and saf e to consume and this give confident

to consumer . The halal logo is recognizable and well k nown around the word. It gives an

assur ance to consumer s pr ior to making a decision on purchasing the product. As such, the use of

such a trusted symbol is invaluable.

GLOBAL HALAL SUPPORT CENTRAL

The Global Halal Support Centr al is a repositor y of halal k nowledge set up to

complement and mak es Malaysia a global halal ref erences centr al through the provision of word-

class support and ser vices to HDC¶s stak eholder and clients.

The GHSC Endeavour ¶s to act as a one-stop support center f or companies and ser vice

provider s in halal-related sector including fatwa k now-how, inf ormation on halal certification

and capability building, investment opportunities in Malaysia as well as access to incentives.

DEVELOPING THE INDUSTRY

Halal is a univer sal concept that is applicable to any industr y f rom f ood to finance.

Current consumer trends show that halal product and ser vice are now widely accepted by non-



Muslim¶s globally. The annual value of global tr ade in halal product is in excess of US$1.2

tr illion (source: Malaysia 3rd industr ial master plan) and growing. Three are currently 1.5 to 1.8

billion Muslim spread out in about 100 countr ies globally. All of them are required by their

religion to purchase only halal product. Hence tapping even a small portion of the mar k et can

mean a lot to any halal f ood exporter s. But proper and reliable certification, excellent product

and ser vice quality as well as quality mar k et research and k eys to captur ing a sizable chunk of

this global mar k et.



STEP TO GETTING HALAL CERTIFICATION

Applicant conditions:

A. Manufacturer Company / Slaughter House / Food Premise

1. Company should register with Malaysia Business Commission.

2. Still having a legal oper ation license of Local Author ity.

3. Having at least two (2) Muslim employees and Malaysian citizen in production

department.

4. Manufacturer / company should produce products legitimate only.

5. Do not processing / selling liquor or banned things.

6. The application f or slaughter house, company should have commission certificate which

is still legal f or slaughterer and µcheck er'.

B. Products

1. Not banned products in Malaysia.

2. Those products manufactured in Malaysia only.

3. The production of product should involving processing activity.

4. Additional f ood product should get approval letter f rom Drug Control Author ity, and

Malaysia Health Ministr y fir st.

5. Not medicines / those products categor ized as pharmaceuticals output by Malaysia Health

Ministr y.

For those who want to apply validation certificate Halal HDC, the application may made by

online method to HDC by complement the online statement can be accessed at the website

http://e-halal.hdcglobal.com

Documents which need attached

Documents which need to enclose with the application statement were f ollows by :

1. Copies of the e-halal application.

2. Copies of the company registr ation.

3. Oper ation license f rom Local Author ity.

4. Copies of the certificate content / halal ingredient that still legal.

5. Copies of the certification of halal company (ref orm).

6. Copies of the identity card f or two (2) Muslim employee and Malaysian citizen status

remains at production department.



7. Copies of the registr ation letter of two (2) Muslim employee Malaysian citizens.

8. Malaysia status remains at production side (Premises Location Map).

9. The example of the product packaging will be confirmed legitimate.

10. Process flow chart (product).

11. Approval letter f rom Malaysian Drug Control Author ity and Health Ministr y f or beauty

product (cosmetic).

Additional f ood product

12. Import permission copy f or product based on animal f rom Veter inar y Ser vices

Department (JPH).

13. List down all br anches (be provided).

Additional document f or Slaughter House application

14. Commission certificate which is still legal f or slaughterer and µcheck er'.

15. R egistr ation letter of two (2) slaughterer f rom Malaysian citizen status fixed.



ON THE APPOINTMENT OF FOREIGN ISLAMIC ORGANIZATION AS HALAL

CERTIFICATION BODY FOR PRODUCTS TO BE EXPORTED TO MALAYSIA

1. BACKGROUND

Department of Islamic Development Malaysia (JAK IM) has been entrusted with

responsibility of ascertaining the Halal status of abattoir s and processing plants intending to

export their Halal products to Malaysia. This exercise of ascertaining their status involves not

only an official site inspection of plants but also an examination on how the Halal status is

maintained and monitored at all times. This requires the establishment of guidelines f or the

appointment of reputable and reliable f oreign Islamic bodies or or ganizations f or the sole

purpose of monitor ing the Halal status at these plants.

2. GUIDELINES

The f ollowing br iefly outlines the cr iter ia uses to evaluate the Islamic bodies or

or ganizations bef ore they are accorded the appointment to monitor the status of Halal of

approved plants.

2.1. THE ORGANIZATION

The Islamic or ganization must be a recognized and registered body in the countr y of

or igin and must f ulfill the f ollowing conditions if they wish to obtain approval f rom Halal

Industr y Development Corpor ation (HDC):-

y The or ganization must possess its own charter and constitution clear ly outlining the

election and the holding of office of its board of management with rules regarding its

f unction and role.

y The or ganization should also have in its member ship rolls, Muslim scholar s well ver sed

in Islamic R eligious Studies.

y All changes including amendments to the constitution or changes in the management has

to be duly reported to the author ities in Malaysia along with annual reports on audits

carr ied out on the Halal status of the approved plants.

y The or ganization agrees to comply str ictly with Halal certification procedures or other procedures recommended or approved by Halal Industr y Development Corpor ation

(HDC).

y The or ganization agrees to allow officer s f rom Malaysia to carr y out an audit on its

or ganization, procedures and system.



3. PROSEDURE OF APPOINTMENT

3.1. APPLICATION

The or ganization must apply in wr iting f or appointment to Halal Industr y

Development Corpor ation (HDC) and enclose the f ollowing:-

y The or ganization profile

y The list of Muslim scholar s in the or ganization along with their academic qualification

and relevant wor king exper ience.

y The nature of ser vices provided by the or ganization with regard to Islamic activities.

y Its current and past exper ience in monitor ing the Halal status of the abattoir s and f ood

processing plants.

y A copy of its article of registr ation as an Islamic body with the relevant author ity.

y

Application must be submitted at least 4 weeks pr ior to the date of initial inspection visits

to abattoir s, f ood and consumer goods¶ processing plants by government author ities f rom Malaysia.

3.2. PROCESSING OF APPLICATION

All applications f rom or ganizations k een on being registered with Halal Industr y

Development Corpor ation (HDC) will be subject to the f ollowing condition:-

y Application must be received by Halal Industr y Development Corpor ation (HDC) at least

4 weeks pr ior to the date of initial inspection visits by Malaysian government author ities.

y Only applications with all the particular s listed above will be entertained.

y All applications will be vetted by the committee f or appointment of religious

or ganizations abroad.

3.3. CONFIRMATION OF APPOINTMENT

The appointment of Islamic or ganizations abroad will only be carr ied out pending the

f ulfillment of the f ollowing conditions:-

y A detail report on the visit of the inspection team f rom Malaysia to the office of the

or ganization concerned. This report will ver ify the contents in application and also their recommendations on the matter .

y The or ganization thus agrees to tak e on a sort of a super visor y role in matter s of Halal at

the plant concerned. This super visor y role will have the mutual consent of both the plant

management and the body bef ore they are considered f or appointment by the Malaysian

author ities.



y All such discussions and agreements will tak e place dur ing the initial inspection visit to

the plant by respective government author ities f rom Malaysia. Only then their

recommendations are accepted by the Malaysian Government thus the arr angement

comes in f orce.

y The steer ing committee will study this report bef ore recommending their approval or

disapproval on the matter f or final approval by the Gener al Manager of Halal Industr y

Development Corpor ation (HDC).

y A letter of approval will be sent to the or ganization along with a copy to the relevant

author ities and the plant management in the countr y concerned.

y Details of the plant and the per iod of approval will also be included in the letter of

approval.

4. DUTIES OF APPOINTTEE

An appointment of an Islamic body to over see the halal status in a plant abroad does not mean the relinquishing of the responsibility of the Malaysian author ities. It only entails the

f ollowing:-

y The officer s of the or ganization agree to meet with the inspection team at any one of the

plants under their super vision f or discussions.

y The or ganization agrees to monitor and audit the Halal status of approved plants.

y The or ganization tak es up the responsibility of ensur ing that only Halal products are

allowed to be exported to Malaysia by issuing authentic certificates f or all export

consignments.

y The arr angement does not absolve the r ight to the author ities f rom Malaysia to carr y out

f ollow-up inspection visits as and when the need ar ises.

y Only when all the above requirements are agreeable to all parties concerned, does the

permission to allow f or the export of products to Malaysia is gr anted.

5. CONDITIONS FOR WITHDRAWAL OF APPOINTMENT

Halal Industr y Development Corpor ation (HDC) reser ves the r ight to revok e any

appointment at any time without having to give any reasons whatsoever . The approval will

revok e on the f ollowing grounds:-

y The or ganization losing its legitimate status in the countr y concerned f or whatsoever

reason.

y The failure of the company to carr y out its monitor ing and audit responsibilities on the

Halal status of plants.



y The failure to submit reports of monitor ing and audit activities of the or ganization at the

plant concerned.

y The failure of the or ganization to submit annual reports or in notifying Halal Industr y

Development Corpor ation (HDC) of any changes in the or ganization profile inclusive of

management changes.

MALAYSIAN STANDARD ON HALAL FOOD

(MS 1500:2004)

The Malaysian Standard entitled µHalal Food: Production, Prepar ation, Handling and

Stor age ± Gener al Guidelines¶ (MS 1500:2004) was developed under the Malaysian Standard

Development System under the responsibility of Department of Standards Malaysia (DSM),

Ministr y of Science, Technology and Innovation.

This Malaysian Standard is one of the five initiatives of the Government to realize the Malaysia as a Halal Food Hub.

This standard was developed by a National Industr y Standards Committee on Halal

Standard (ISC I), which was represented by var ious or ganizations including JAK IM, as the

Chairman f or the related Technical Committee f or the over all standards development system

in Malaysia and the relationship of ISC I in the system.

Scope of this standard is to prescr ibe pr actical guidelines f or the f ood industr y on the

prepar ation and handling of halal f ood (including nutr ient supplements) and to ser ve as a

basic requirement f or f ood product and f ood tr ade or business in Malaysia. It will be used by

JAK IM as the basis f or certification but will be supplemented by many other requirements

f or comprehensiveness of the certification process.

The summar y of the development of Malaysian Standard on Halal Food.

The document has under gone a process in accordance to the international standards

requirement i.e. the International Or ganization f or Standardization (ISO), whereby an

international standards development system is based on consensus of all interested parties

such as the Government, pr ivate sector, NGOs, researcher s and prof essional bodies. Malaysia

(DSM) subscr ibes to the same ISO policy.

In the f uture, it is hope that this Malaysian Standard (an official Government document)

could be promoted over seas and recognized by other nations or blocs such as US, Europe,

China, ASEAN countr ies, and many more.



OTHER SERVICE

Industry Sectors - Overview

Countr ies across the globe, Muslim and non-Muslim alik e, have boosted income f rom

f ood exports by capitalizing on a growing Muslim consumer mar k et f orce. With a global Muslim

population of 1.6 billion presently and a projected increase to 3 billion in 2010, tr ade in halal

products and ser vices could potentially hit tr illions of USD annually. Annual retail sales of halal

meat in the United Kingdom alone, f or example, is estimated to be approximately GBP400

million, whilst the estimated annual mar k et size f or halal f oods in 2005 was estimated to be more

than USD500 billion.

The growth of the halal f ood mar k et represents a significant potential f or international

companies, not only in Muslim countr ies but also in western mar k ets with significant and

growing Muslim populations. In Malaysia f or example, the 2005 Muslim population stood at

15.4 million and the estimated domestic mar k et size f or halal f oods in the same year was

approximately USD6 billion. Yet the halal mar k et does not cover just f ood and bever age, but

extends also to other industr ies such as pharmaceuticals, cosmetics, nutr aceuticals, other

consumer goods, f ood ser vices, finance, logistics and tour ism.

Industry Sectors - Food & Beverage

Awareness and obser vance of halal in f ood and bever age is the highest amongst the

var ious types of consumer products, making halal compliance in this area to be of great

importance. Not surpr isingly, the f ood sector, compr ising of processed f ood, bak er y f ood, pr imar y meat and conf ectioner y, made up 62% (corresponding to USD1.7 tr illion) of the global

mar k et f or halal products in 2005, with processed f ood contr ibuting to the lar gest share at 35%.

In the f ood industr y, halal requirements must be complied to not only dur ing production but also

at all stages of the production and supply chain including procurement of r aw mater ials and

ingredients, logistics and tr ansportation, packaging and labeling of f oods and so on. Guidelines

and standards f or f ood production have been established in the Malaysian standard

³MS1500:2004: Halal Food ± Production, Prepar ation, Handling & Stor age ± Gener al Guideline

(Fir st R evision)´ which was published in 2004



References