Copyright HDC 2012

Prepared by :-

Hamidon Hamzah

General Manager Infrastructure, Industry Development

Halal Industry Development Corporation

hamidon.hamzah@hdcglobal.com

Mobile : 012 3927 910

“Opportunities in Packaging in the Halal

Industry”

Malaysia Plastic Manufacturers Association

Kuala Lumpur September 2016

CONTENTS

2

HALAL INDUSTRY INCENTIVES

GLOBAL TRENDS

MALAYSIA ACHIEVEMENTS & OFFERINGS

QUESTION & ANSWERS

HALAL PACKAGING

Key Drivers Influencing the Growth Of Halal Products

Halal Market:

2014 - USD 1.8 trillion

2020 – USD 2.6 trillion

Sizeable and growing

Muslim population

Growing economic development in

Muslim countries (CAGR 6.8%)

Emergence of potential Halal

markets (China & India)

“Muslim population worldwide (2010) = 1.8 billion

Forecasted to grow at twice the rate by 2030 representing 27% of

global population”

“Between 1990 and 2010, GDP per capita for Muslims worldwide

has grown at a Cumulative Annual Growth Rate (CAGR) of 6.8%

(Global CAGR: 5.0%).”

“Chinese Halal markets is worth USD2.1 billion and growing at

10.0% annually.”

Source: Islamic Association of China

Source: United Nation and IMF

Source: Pew Research Centre

1.

2.

3.

3

1.1 1.3 1.6 1.9 2.2

4.0

4.8 5.0

5.4 5.8

-

1

2

3

4

5

6

7

8

9

1990 2000 2010 2020 2030

Bill

ion

s

Muslims Non-Muslims

World population (1990 – 2030): Muslim versus Non-Muslim

21.5

%

21.3

% 24.2

%

24.7

%

27.5% of

world

population

is Muslim

Growing population of Muslim

The State of the Global Islamic Economy

Report 2015/16 by Thomson Reuters

The Global Halal Sector Is Expected To Be The

Fastest Growing Consumer Segments In The World

Source: Global Islamic Economy Report 2015

The size of Muslim consumer food expenditure markets are expanding

Muslim consumer spending is only

about 17% of global expenditure

even though Muslims comprise

23% of the global population

Currently, the Muslim population purchasing power is low BUT put it another way, the

purchasing power can only go up due to higher disposable income

The Muslim consumer base are predominantly young Muslims which constitute about 11%

of the global population i.e. 40% of Muslim population are youth

Halal foods are consumed by people of all

religions and ethnic backgrounds as they are

known for their safety, hygiene & ethical quality

social media is assisting in spreading

awareness about the halal products globally

“Islamic Contemporary With Global Lifestyles”:-

Young, educated, savvy and affluent

Favors western and modern lifestyles

Core religious values are the same as forefathers BUT have new expectations i.e. safe

and quality food

Brunei

Visioning to become

the for Halal

UAE

Visioning to

become the center

of Islamic economy

Japan

Halal as key source of

contributor to Japan’s

economy by 2020

China

Domestic Halal

market is increasing

by 10% per annum

Thailand

Largest producer of

Halal processed food –

visioning to become the

Kitchen of the World

Australia

Largest supplier of Halal

beef to Middle East

Brazil

Largest supplier of

Halal poultry to

Middle East

“The emirate will aim to be the

Sharia-compliant centre of the world.

Focus will be on Islamic Banking and

Halal businesses”.

Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai

February 2013

Global Islamic Economy Summit (Nov

2013) – Dubai has set a clear

measure of success

• Dubai is set to be the capital for

Islamic Economy

• Islamic Economy as a new area of

excellence for future growth

• OIC intra-trade especially in Halal

related sector will be increased via

Dubai competitiveness

South Korea

Visioning to become

the main destination of

Halal tourism

7

Why Malaysia - the Preferred Halal Investment Destination

Factors Driving Malaysia as an Attractive Investment Destination for Halal

1. Malaysia’s Halal Brand (logo) is globally recognized since it is backed

by the Government.

2. Halal standards for some products and services have been developed

for certification to be carried out.

3. Malaysia is the leader in the development of the halal park eco-

system and governance matters.

4. Attractive incentives provided by the Government i.e. 100% income

tax exemption for a period of 10 years based on invested capital or

income tax exemption on export sales for a period of 5 years.

5. Readily developed halal parks that can minimize the development cost

and shorten the construction period for investors.

6. Some Halal Parks are strategically located near the ports and airports

with good inland infrastructure which offers the following advantage :-

• two container ports namely, Port Klang and Port of Tanjung

Pelepas are in the top 20 container ports in the world (throughput

wise) thus providing global connectivity, supported by feeder ports

• easy access to ASEAN markets leveraging on the special tax

preferences under Common Effective Preferential Tariff (CEPT)

• road access that will enable JIT delivery & savings of logistics

costs for local distribution

• strategic location for imports & exports to & from other overseas

market (Far East, Middle East & Europe)

7. Why Malaysia?

• Political and economic stability

• Liberal investment policies

• Pro-business Government

• Well-developed infrastructure /

connectivity and strategic location

• Good track record

• Young, trainable and educated labour force

• Quality of life

• Harmonious industrial relationship

• Banking system

CONTENTS

8

HALAL INDUSTRY INCENTIVES

GLOBAL TRENDS

MALAYSIA ACHIEVEMENTS & OFFERINGS

QUESTION & ANSWERS

HALAL PACKAGING

Halal Industry Master Plan (2008 – 2020)

Framework

• Halal export increased to

RM50 billion

• 330,000 employment

opportunities in Halal

industry

• Halal exporters

increased to 1,600

companies

• Contribution by Halal

related industry to GDP

increased to 8.7%

Outcome by 2020

• Malaysia as the global reference centre for Halal integrity

know-how

• Malaysia as the global leader in the innovation, production

and trade of a number of halal-related sectors

Endorsed by Cabinet in 2008

Objectives

Revised in 2016

Revised in 2016

Malaysia’s Halal Ecosystem - various halal sectors co-

exist and supported by proper certification system, infrastructure

and human capital development program

Production and

Services

Infrastructure

Government

Support

Human Capital

Reference Centre Halal as the

new source of

economic

growth

• Halal food & beverages

• Halal cosmetics & personal care

• Halal Ingredients

• Halal services (logistic, banking,

takaful, healthcare & tourism

• Halal Parks

• Halal R&D – testing lab

• Standard & certification

• Ministry: Ministry of International Trade and Industry

• Industry Development: Halal Industry Development Corporation

• Certification: JAKIM

• Standards Development: Standards Malaysia

• Enforcement: Ministry of Domestic Trade

• Halal Talent Development Program

• Halal Knowledge Workers

• Halal Executives & Auditors

• Syllabus in universities & colleges

• Advisory centre

• Datawarehouse

• Knowledge dissemination tools

• Business and market intelligence

Source: Economic Planning Unit, Prime Minister’s

Department

Governance • Policies

• Fiscal policies and support

• Administrative and

Regulatory functions

RM14 billion investment *

RM39.4 billion export 250,000 employment

Global Reference

Centre

Analysis Centre,

Research & Development

Global Brand

• Including over RM10 billion investment in Halal Parks

• Including over 10,000 Halal skilled

workers

• Contribution by over 1,000 exporters

• Largest exporter of Halal ingredients

• 1st in the world and referred by people

from 150 countries

• World Halal Conference

• Halal @ CNBC, CNN and Bloomberg

• Malaysia Halal Analysis Centre (MyHAC)

• Technology Park Malaysia (TPM)

• Halal Products Research Institute (HPRI)

Note*: Source from MIDA - based on 342 companies in F&B sector

Success stories: Overall economic contribution

Halal Certified Companies in Malaysia by State (2015)

6,548 Halal Certified

Companies in

Malaysia

2010 2011 2012 2013 2014 2015

bumi non bumi

Halal Certified Companies

39.0%

37.9%

34.7%

32% 29.9%

40.9%

6548*

5658

4443

3326

2368

1936

Halal parks in Malaysia

14 Halmas

Status Halal

Parks

8 Non-Halmas

Status Halal Parks

RM11.77 billion investment since 2010

Tenants within the halal parks form a community of manufacturing and

services businesses with a mutual goal of achieving economic benefits

while preserving halal integrity. The goal of the Halal Park is to allow

participating companies to improve their economic performance

40 MNCs and

150 SMEs

10,941 employment

Investments in Halal Parks

(RMbillions)

Halal Parks Total Saleable

area (acres)

Total Area

Sold (%)

Total Investments

2016 (RM million)

Employment

(pax)

Enstek 639 72% 4,412 3,029

Selangor Halal Hub 452 92% 2,255 1,913

Tanjung Langsat 277 70% 1,777 2,086

PKFZ Halal Flagship

Zone 64 78% 576 314

Penang International

Halal Park 54 100% 497 1,131

Melaka Halal Hub 87 74% 115 301

Kota Kinabalu 101 100% 314 1,016

Tanjung Manis Halal

Park 1,802 1,031

Pedas Halal Park 20 120

TOTAL 11,768 10,941

Investment - Malaysia is a home for various international brands that adopt the Halal

standards to penetrate the Halal market

• Make Malaysia as Halal Centre of

Excellence for Nestle world wide.

• Biggest Halal Producer in the world.

• Taking full advantage of abundant halal raw

materials in Malaysia.

• Brand name that is trusted by Malaysian for

decades.

Other famous brands manufactured

in Malaysia for the Halal market 1. Halal Food and Beverages

2. Halal Ingredients

3. Halal Cosmetics, Personal Care & Pharmaceuticals

• Regards Malaysia an important Hub for

Halal distribution to the ASEAN and the

regional markets.

4. Halal Livestock & Meat Products and Others

• Regards Malaysia an important Hub for

Halal distribution to the ASEAN and the

regional markets.

• Global demand for halal meat market has

reached $300bn in volume sales

CONTENTS

16

HALAL INDUSTRY INCENTIVES

GLOBAL TRENDS

MALAYSIA ACHIEVEMENTS & OFFERINGS

QUESTION & ANSWERS

HALAL PACKAGING

17 17

Halal Permissible according to the

Syariah (Islamic Law)

Thoyyib Good to consume / apply

+ Healthy

Clean & Safe

Nutritious

Quality

Halal is a

Lifestyle

Value

Proposition

The standard for Halal Packaging is covered under “MS 2565 : 2014 Halal

Packaging General Guidelines”

Halal packaging is packaging contains ingredients and shall

be manufactured and fulfill the following conditions :-

do not contain any parts or products of animals that

are non-halal

do not contain any parts or products of animals

which are not slaughtered according to Shariah law

do not contain najs according to Shariah law

safe for human use non-poisonous, non-intoxicating or non-hazardous to health

for direct food contact application it shall not be made from recycle material

during preparation, processing, handling, packaging, storage and distribution,

the packaging material are physically separated from any other products that

do not meet the requirements

Najs according to Shariah law are:

dogs and pigs and their descendents

halal packaging that is contaminated with things that are non-halal

halal packaging that comes into direct contact with things that are non-halal

any liquid and objects discharged from the orifices of human beings or

animals such as urine, blood, vomit, pus, placenta and excrement, sperm

and ova of pigs and dogs except sperm and ova of other animals

carrion or halal animals that are not slaughtered according to Shariah law

khamar (alcohol) and packaging or drink which contain or mixed with

khamar

Halal packaging shall be processed, packed and distributed under hygienic

condition in premises in accordance with good manufacturing practices or any

applicable public health legislation including Food Hygiene Regulation 2009

All records are made, either manually and / or by recording instruments,

during manufacture

Any significant deviations are fully recorded and investigated.

All records of manufacturing and distribution that will enable tracing of

complete history of a batch are retained.

A system is available to recall any batch of product, from sale or supply.

The distribution of the products shall minimise risks to their halal integrity.

Any complaints about marketed products that are non-compliant are

investigated and the causes identified. Appropriate measures are also

taken and to prevent re-occurrence.

CONTENTS

21

HALAL INDUSTRY INCENTIVES

GLOBAL TRENDS

MALAYSIA ACHIEVEMENTS & OFFERINGS

QUESTION & ANSWERS

HALAL PACKAGING

Incentives under the Halal Industry

22

• 100% income tax exemption on capital

expenditure for a period of 10 years, or

• Income tax exemption on export sales

for a period of 5 years

• Full income tax exemption for a period

of 10 years, or

• 100% income tax exemption on capital

expenditure for a period of 5 years

• Full income tax exemption for a period

of 5 years, or

• 100% income tax exemption on capital

expenditure for a period of 5 years

Halal Industry Players / Manufacturers

Halal Park Operators

Halal Logistics Service Providers

Halal Industry Development Corporation (HDC)

5.02, Level 5,

KPMG Tower, First Avenue, Persiaran Bandar Utama,

47800 Petaling Jaya, Selangor DarulEhsan,

Malaysia.

Tel : +603 - 7965 5555

Fax : +603 - 7965 5500

Hotline : 1800 - 880 - 555 (within Malaysia)

+603 7965 5400 (outside Malaysia)

www.hdcglobal.com

Thank you

Q&A

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