A presentation on the Global Market Potential of Halal.

1. International Conference & Expo on Halal Industry
Lahore, Pakistan
Presented by: Abdul Malik Kassim
State Minister for Religious Affairs,
Domestic Trade And Consumer Affairs, Penang, Malaysia
Presented at
Halal Research Council Conference
www.halalrc.org
Held at Expo Centre, Lahore - Pakistan

2.  World Muslim population of 1.83 billion in 2009 out of 6.5
billion World population
 With average annual growth rate of about 1.80% per annum.
approximately 117,000,000 per yr. increase which does not
include conversion which on the rise currently.
 Global Halal products market is estimated at US$2.3 trillion
excluding Islamic banking. * F&B (67%), pharmaceutical ( 22%),
personal care & cosmetics ( 10%)
 If we include service sectors for the Halal market, the
potential size of total market is ASTRONOMICAL…

3.  The trade in Halal food is enormous with est. annual halal
food value at US $347 billion globally
 HALAL – lucrative market and huge opportunities.
 Awareness and interest in Halal products has increase
tremendously among Muslim and Non-Muslims as well.
 Huge purchasing power among Non-Muslim countries.
 Consumer’s views on Halal products are not only confined to
religious viewpoint but the CONFIDENCE that comes with
the Halal Branding.
 Halal : HEALTHY, WHOLESOME & HYGIENE

4. Percentage of Muslim population
24.1%
47.81%
7.0%
1.06%1.5%
Asia Pacific
Middle East-North
Africa
Sub-Saharan Africa
Europe
Americas
PEW Research Centre’s Forum on Religion & Public Life.Mapping the Muslim
Population. October 2009

5. MUSLIM POPULATIONS BY
REGION
Estimated 2009
Muslim Population
Percentage of
Population that is
Muslim
Percentage of
Population Muslim
Asia-Pacific 972,537,000 24.1 61.9%
Middle East-North
315,322,000 91.2 20.1
Africa
Sub-Saharan Africa 240,632,000 30.1 15.3
Europe 38,112,000 5.2 2.4
Americas 4,596,000 0.5 0.3
World Total 1,571,198,000 22.9 100.0

6.  Key Halal Market
 Algeria Bahrain Egypt Indonesia Iran
 Iraq Jordan Kuwait Lebanon Malaysia
 Morocco Oman Qatar Saudi Arabia Syria
 Tunisia Turkey UAE Yemen Pakistan
 Combined population of key Halal markets : 652 Million
 Key Halal Markets in Non-Muslim countries
 India 140million France 6 million
 China 40 million Germany 3 million
 USA 8 million UK 1.5 million
 Phillippines 6 million Canada 800,000

7.  Asia
Malaysia
 Country with a majority Muslim population (60.4% Muslim of a total
population of 27 million ) ( Source: Department of Statistics 2008)
 Becoming an international halal hub
 Malaysia is well-positioned in being the leader in developing the
Halal industry.
 In the midst of helping out to set global standards for Halal
certifications.
 Best example in the world in terms of rationalization for the labeling
of Halal food (source: UN)

8.  M’sia’s active role in the OIC and position as the home of the
Islamic Financial Services Board (IFSB) enhance M’sia as the
market leader in the provisioning of halal products and services
throughout the world.
 Thailand, known as World’s Halal Kitchen, is currently the fifth
largest halal food exporter and recognized as Halal centre of
excellence in science and testing.
 Even Muslim minority countries in Singapore have shown that the
halal food business is good business.
 The Muslim community forms only 16% of the 3.8 million population
in Singapore, the halal food industry is big business in this
cosmopolitan city. Mc Donald’s, A&W, KFC and Taco Bell are
some international brands that have gone 100% halal in Singapore.

9.  Brunei is currenly co-operating with Australian companies in order to
combine its role in the Muslim world with Australia’s track record in safe,
high quality food production.
 China is one of the world's most eye-catching halal food markets, as
Muslims there total more than 30 million, or 2.3% of China's population
 Growing demand for halal food - Ningxia and Gansu provinces and in Inner
Mongolia
 The key advantage of the Chinese Halal industry is access to cheap labor.

10.  Europe
 Largest Muslim population after Asia and Africa
 The market size of halal food in Europe ~15 billion Euro this year
(est)
 Has high purchasing power, rather than population size.Therefore,
the European Halal market carries a lot of potential for good
exporters.
 51.2 billion Muslim population in 2009 with France having the
largest Muslim population ~5.86 million

11. • The European Supermarkets are now aggressively pursuing the
Halal food retailing.
• The port of Rotterdam is currently creating a “Halal DistriPark “ to
serve 30 Million Muslims in Europe.
• The proposed £150m Super Halal Industrial Park (SHIP) at South
Wales , would make UK the landmark Halal centre for the region.

12.  United States
According to the Islamic Food and Nutrition Council of America, the U.S.
halal market is estimated at $17.6 billion
 The top 10 major halal food markets are:
1. New York City, New Jersey and Long Island metropolitan areas
2. Los Angeles 9. Atlanta
3. Chicago 10. Washington D.C
4. Detroit
5. Houston
6. Dallas/Forth Worth
7. South Florida
8. San Francisco

13.  Africa
 South Africa, also known as the “rainbow nation” due to its diverse
population, has also been actively hosting events focussing on
Halal as a viable business concept.
 With a Muslim population of approximately 1 million, South Africa is
playing a major role in developing the regional Halal industry in
Africa and is constantly seen as the gateway to the immense
African market.
 Middle East
 Net importers of processed food both for the food service and retail
markets.
 Members of the Cooperation Council for the Arab States of the Gulf
(GCC)

14.  Have higher incomes and consequently higher per capita rates of
consumption.Therefore, the region must import 80% of its food
requirements.
 Saudi Arabia and the UAE ~ most important import markets in the
region. Currently Brazil is the largest exporter to the two countries
followed by the EU and the US.
 Saudi Arabian companies involved in the Halal industry include Al-
Radwa Farms, Al- Watania, Supreme Foods, Nash Meat and
Sunbullah. UAE companies involved in the Halal industry include Al-
Islami Foods, Al-Babeer, Al-Areesh, Arctic Gold, Royal Meat and
Emirates Meat.
 Turkey is a growing Halal market and as a potential supplier of Halal
products, particularly to EU counties with large Muslim populations
such France and Germany.

15.  Nestle – world’s largest food manufacturing corporation
 McDonalds – the world’s largest leading restaurant chain
 KFC – fully integrated poultry chain
 Tesco & Carrefour – world’s number one & two retail chain
 Port Rotterdam – Europe’s largest & the world’s 3rd largest port
 Westports – one of SEA top 10 ports
 MISC – the world second biggest shipping company
 CIMB – SEA biggest investment bank
 Allanasons – India’s biggest meat exporter
 Al-Islami – UAE halal food produces

16. “It has been assumed that the trouble soon to be
faced by the Halal market is shortages of
demand, but contrary to prior believes, the
shortage is on the supply, not the demand”

17. PENANG
INTERNATIONAL
HALAL
HUB (PIHH)

18. PIHH VISION
Sg. Pinang
Tg. Bungah
Bt.
Feringghi
Telok
Bahang
Tg. Tokong
Kuala Muda
G’town
Ayer Itam Jelutong
Gelugor
Sg.
Nibon
g
Balik
Pulau
Bayan
Baru
Bayan
Pulau Lepas
Betong
Pulau
Jerejak
Batu
Maung
B’worth
Kepala
Batas
Seberang
Jaya Bukit
Mertajam
Simpat
Pulau
Gedong
Pulau Ampat
Aman
Sungai
Bakap
Nibong
Tebal
Feri
LOCATION of choice for
Halal investments,
businesses and industries
DESTINATION of choice for
Halal/family-concept tourism
RESIDENCE of choice for
Halal/Family-concept lifestyle
and sustainable living
The whole Penang State is the Halal Hub!

19. CLUSTERS @PIHH
INDUSTRIES
(Manufacturing)
AGRO-BASED
LOGISTICS
LIFE SCIENCES
(Bio-tech/ Medical/
Wellness)
HOSPITALITY &
TOURISM
R&D
FINANCE
HUMAN
CAPITAL
MARKETING
SUPPORT
SERVICES
Holistic supply chain

20. CLUSTERS @PIHH
INDUSTRIES
(Manufacturing)
LOGISTICS
INDUSTRIAL PARKS
 Ready Halal Park for investors
 World-class Manufacturing
 One-stop investor facilitation services
 Availability of Incubators/ Test Labs /
Shared Services
Strong supply chain and support services
LOGISTIC HUB
 Penang Port – Halal Status
 Halal warehouse and cold chain facilities
 Extensive ground infra
•Southern Thailand >Penang < Singapore
•North Sumatera-Penang
HALAL Integrated Industry
CERTIFICATION
 HALAL Malaysia Certification
 HALAL Malaysia Accreditation
Global standards (MS 1500, HACCP, GMP, BIHAPS, HAL-Q)

21. INDUSTRIAL PARK
 Penang International Halal Park @ Penang Science Park
 Focusing on attracting investments of strategic, niche and high technology
industries from F&B, ingredients (i.e additives, enhancer) personal care and
cosmetics to be located in the park
 With ready land available, and a dedicated agency (Halal Penang) to promote the
parks, Penang has attracted investments from China, Iran, and India to set up
business at the halal park.
 SHIP ( Super Halal Industrial Park Ltd)
 Partnered with a venture-capital firm in UK to set up European’s first industrial park
for Islamic goods.
 The proposed £150m SHIP would provide services such as storage, product packing,
meat selection and processing as well as R &D.
 Halal Penang will provide advisory and development support throughout the project
 Other Halal Industrial Parks
 Form partnerships with representatives from Yemen, Medan, Indonesia and Pakistan
in providing consultancy and other supporting services to develop halal industrial
parks in respective countries

22.  Gelatine
 Untapped Halal market potential
 Only 0.7% of the gelatine produced in the world is deemed Halal
 Commonly used as a gelling agent in a wide variety of industries including food,
pharmaceuticals, photography, paper and fertilizers as well as elastic and adhesive
materials.
 About 42.4% of the world production of gelatine use pig skin, another 29.3% use
bovine hides while bones constitute 27.65% as its source material.
 Penang is looking for partners to invest in the gelatin production, which is considered
critical and strategic project.
Source : halalgel.com
INDUSTRIES (Manufacturing)

23. INDUSTRIES (Manufacturing)
 Food additives and Food Enhancer
 Food additives are defined by the European Community (EC) is “any substance
which are not normally consumed as food in itself and not normally used as a
characteristic ingredient of food whether or not it has nutritive value, in the
manufacture, processing, preparation, treatment, packaging, transport or storage of
such food results, or may be reasonably expected to result, in it or its by-products
becoming directly or indirectly a component of such foods".
 Categories includes : Common additives:
i. emulsifiers, i. salt
ii. thickeners, ii.sugar
iii. anti-oxidants iii. vitamin
iv. Colouring iv. starches etc
v. flavour enhancer etc.

24. INDUSTRIES (Manufacturing)
 FOOD ADDITIVES’ ECC-CODES (E-CODES)
 E-numbers represent specific food additives, used by the food industry in
the manufacture of various food products.
 Formulated by the European Economic Community (EEC) and are
universally adopted by the food industry worldwide
 Many E-numbers contain unlisted haraam ingredients in them. Generally
derived from animals and insects.

25. INDUSTRIES (Manufacturing)
Additives which are ALWAYS of animal origin, are HARAAM such
as:
 E120 Cochineal : a red colour obtained from female insects
 E441 Gelatine : derived from the bones and/ or hides of cattle and/ or pigs
 E542 Edible Bone Phosphate : an extract from animal bones
 E904 Shellac : a resin from the lac insect
Whilst some additives with a common code such as E47, can be either of
animal or plant origin and this latter type needs to be investigated on a
case-by-case basis per product/ manufacturer

26. INDUSTRIES (Manufacturing)
The main additives you need to be aware of are:
 Glycerol / Glycerin / Glycerine (E422) - haraam if obtained from pork or non-halal
meat sources.
 Emulsifiers (E470 to E483) - haraam if obtained from pork or non-halal
sources.
 Edible Bone Phosphate (E542) - haraam if obtained from pork or non-halal
meat sources.

27. LOGISTICS
 Penang Port Accredited as Halal Port
 Halal Penang envisages the Penang Port to be the 2nd best Halal port in the world,
just after Rotterdam.
 The port was awarded the MS1900 in May 2009. This accreditation from SIRIM
certifies that the port’s operations comply with the Shariah law for Halal. With that, we
are able to brand Penang Port as a Halal port.
 Penang Port is the first port in Malaysia to achieve the MS1900:2005 “Quality
Management Systems - Requirements from lslamic Perspectives” for the
provision of container handling services and dedicated warehouse services within
Penang Port.
 Linkages with Rotterdam Port and other ports
 Penang Port is now having direct discussions with the Rotterdam Port in Holland to
collaborate on the development of Halal ports and linking the ports together. Port of
Rotterdam International has begin the discussions with other ports in the world ;
( Port of Sohar,( Oman) Port of Suape (Brazil) and Port of Positra (India).

28. Halal Logistics
 Newer phenomenon whereby Syariah element is applied to
logistics discipline.
 Integral management of physical goods flow and information flow
that complies with the aspect of Syariah
 A supply chain approach that ensures integrity from :
Farm (upstreams) Fork (downstream)
(packaging/certification/transportation/
warehousing/handling of Halal products at
ports)
 As the integrity of Halal products become more important, logistics
control plays a key role in facilitating the manufacturing,logistics and
trade of Halal products throughout the world.

29.  Halal supply chains include everything from the procurement and
preparation of genuine halal ingredients to the manufacturing and
delivery of the final product all the way to customer shelves.
 The halal industry implements a 'farm to table' operation, presenting
opportunities for various players in the logistics industry to climb
aboard the process including ports, shipping and freight forwarding,
warehousing and handling facilities.

30.  Halal Certification Body
 Branding of the halal certification systems carried out by Penang State Islamic
Religious Department (JAIPP) to a single dedicated department, the Halal
Management Division, enabling a more professional approach to certification.
 Accreditation of Halal Certification Body - Henan
 The Halal Management Division, JAIPP has managed to work in tandem with JAKIM
( Department of Islamic Malaysia) to accredit the halal certification body in Henan
Province, China ( Islamic Association of Henan).
 Therefore, Halal certification issued by Islamic Association of Henan is recognized by
JAKIM, Malaysia.
 Penang State Islamic Religious Department (JAIPP) is in works to accredit other
halal bodies.

31. CLUSTERS @PIHH
AGRO-BASED
 Key Project : Juru Beef
 Cattle Rearing
 Integrated Abbatoir & Meat
Processing
LIFE SCIENCES
(Bio-tech/ Medical/
Wellness)
R&D
 Pharmaceuticals
 Medical Devices
 Cosmetic & personal Care
Halal R&D CENTRE
 Halal Science Centre, Chulalongkorn University
Halal Food Science Centre, Prince Sonkla University
Halal Products Research Institute, UPM
 Halal Industry Research Centre, IIUM
University Science Malaysia
HALAL Science & Technology

32. AGRO-BASED
 International Halal Leather Trading Hub
 Penang to become the first international halal leather hub in the world.
 The venture with Halal Industries UK (HIG) would see Penang becoming the central
hub for the halal leather supply chain including importing, certifying and trading with
halal leather producers from China, India, Pakistan, Bangladesh and Brazil.
 The total skin and hide market in the world is estimated to worth US$100bil
(RM341bil) with products ranging from apparel, accessories, bags, wallets and
furniture. Penang is well-positioned to serve the halal leather industry due to its
strategic location and investment-friendly infrastructure.
 Lifesytle pertaining to halal leather

33. LIFE SCIENCES
(Bio-tech/ Medical/ Wellness)
 Global Cosmetics Market Size & Global Halal
Cosmetics 2010
Total Global
Cosmetics Market
Total Global
Cosmetics Market
Size
Size
USD $334 billion
USD $334 billion
Total Halal Cosmetics
Total Halal Cosmetics
Market Size
USD $ 13 billion
Market Size
USD $ 13 billion
 The growth of the Halal cosmetics market currently worth an
estimated USD$ 560 million worldwide.

34. • The halal cosmetics still at INFANCY.
• Consumers are switching to halal PC&C due to concern over the
health & environmental hazards (i.e swine placenta in anti-wrinkle
cream, others linked chemical cosmetics to cancer and birth defects
& cruelty against animal testing)
• Demand :
• App. USD$150 million Halal cosmetics distributed to UAE each
year
• Market size for PC&C in Middle East regions ~USD 560 million
• In Saudi Arabia alone the total sales for cosmetics reached USD 1.3
billion in 2006.

35. CLUSTERS @PIHH
HOSPITALITY & TOURISM
HALAL HOSPITALITY PARK
 International Hotel Chain – Syariah compliant
 Spa & Wellness Centre
 Dedicated Holistic hospitality development
 Medical Tourism - syariah compliant medical centres
HUMAN CAPITAL
 Training Facilities Available (PSDC)
 Collaboration with World Halal Renowned Training
Academy
 Professionals, Certifiers, Auditors, Scientists

36. HUMAN CAPITAL
 Halal Penang is collaborating with PSDC and Penang International Islamic &
Technological College (KITAB) to develop skilled and trained Halal auditors.
 Collaborating with education institutes in Riyadh to develop licensed and skilled
Halal auditors
 Collaborating with 2 prestigious education institutes ; by developing Halal Catering
syllabus
 Recently collaborated with International Halal Integrity Alliance (IHIA), a non-profit
organisation in M’sia created to uphold the halal integrity to train competent Halal
auditors.

37. CLUSTERS @PIHH
FINANCE
Gateway to GLOBAL ISLAMIC Financial Services
 Vibrant Islamic Banking, Takaful & Financial industry
 Presence of international financial institutions
 Offshore Banking facilities
 Linking businesses to Funders – Islamic bankers, VCs
SUPPORT SERVICES
 IT Infrastructure – Traceability system
 Niche Consultancy
 Test Labs
 Market Research – muslim markets

38. FINANCE
Halal Capital Market Conference
 Will be held on 25th – 28th October 2010 at London
 The conference event will take place over 4 days and will bring
together leading professionals from the mainstream financial sector
and the global Halal industry, senior managers of Islamic finance
and businesses institutions exclusively dealing in the Halal sector
and social and commercial investors.
ShariaUMEX
 The Sharia Ummah Securities Information Exchange Ltd
(ShariaUMEX) is a dedicated securities information and trading
gateway that covers news and information about Sharia compliant
securities and Islamic finance from all of the world’s main markets.

39. LIFE
SCIENCES
America
SOHAR
PORT
Arab
Pakistan
ROTTERDAM
PORT
QASIM
PORT
PENANG
PORT
MARKETING
PIHH –the link of global halal market

40. Role of
HALAL PENANG
 Facilitation agency owned by of Penang State
Government of Malaysia
 Role: Promote, facilitate and develop halal industries in
PIHH (Halal Penang)

41. PENANG HALAL TASK
FORCE
Halal Penang Activities
• Investor facilitation
 Certification
 Manufacturing
 Trading
 Services
• Business Matching
 Trading partners
• Trade mission
e.g. Henan Province, China
• Trade Fairs (Local & International)
MIHAS
World Halal Forum

42. Thank You 
Contact:
PIHH Development
Sdn Bhd
Level 44, KOMTAR,
10503 Penang, Malaysia
Tel: +604-2625444 Fax:
+604-2635444
Email:
info@halalpenang.com
Web :
www.halalpenang.com
Halal Research Council
192- Ahmad Block, New
Garden Town
Lahore, Pakistan
Ph: +92i42i5913096-8,
5858990, 8407850
Fax: +92i42i5913056
E-mail: info@halalrc.org
Website:
www.halalrc.org