This document discusses the Malaysian herbal industry and opportunities for growth on an international scale. It outlines the various product forms that herbal medicines can take and categories they can fall into. The document also explores potential new markets and business models for Malaysian herbal products, including a focus on organic, community-supported, and ethically/religiously certified products. It emphasizes finding novelty and differentiated strategies to gain a competitive advantage in international markets.

1. Breaking through the barriers to make the Malaysian herbal industry truly internationally competitive Mohd. Murray Hunter University Malaysia Perlis 1st East Asia Agri-Business Seminar 2010

2. Raw Herbs Traditional Herbal Medicines Fresh Consumption Dried Fermented Medicinal Powders Medicinal Beverages Extracts Standardised Extracts Fractions & Isolates Phytopharmaceutical Products Bioactive Compounds Prescription & OTC Drugs Essential Oils & Other Volatiles Enzymes Flavour & Fragrance Personal Care & Cosmetics Agricultural Application Aromatherapy Figure 1: The Family Tree of Herb Derivatives

3. Types of herbal products

4. The Search for Novelty

5. Tianqi Panax pseudo-ginseng notoginseng (Burkill.) G.Hoo. & C.J.Tseng., of the family Araliaceae

8. Mexico

9. Morocco

10. Ayurvedic

11. Hong Kong

15. Colostrum

18. Colostrum or Mother’s Milk is the original and ultimate nutritional supplement. It is a unique natural secretion produced at the beginning of lactation designed by Nature to promote strength and good health.

19. Colostrum has been called life’s first food. Each drop of Colostrum contains the promise of life: immunoglobulins, antibodies, growth factors, vitamins, minerals, enzymes, amino acids, and other substances designed to ‘prime’ the body to face a lifetime of invasion by various microorganisms and environmental toxins. (Colostrum is considered to be nature’s most perfect disease fighter). Shape of Antibody

20. Inside the intestinal tract the antibodies from Premier Milk prevent the toxins from attaching to the intestinal wall and multiplying. In effect shielding the body from toxins.

25. AMATA ORYZA COSMETIC PRODUCTS

40. Making Enzymes

56. Look for New Business Models

57. Organic Products

72. Community Products

74. The Buy Local Movement

78. Carbon Miles

83. Ethical Products

91. Halal Products

92. Toyyibaan & Halal This day are (all) things good and pure made lawful unto you. The food of the people of the Book is lawful unto you and yours is lawful unto them. … If anyone rejects Faith, fruitless is his work, and in the Hereafter he will be in the ranks of those who have lost (all spiritual good). Al-Ma’idah5:5

93. O you people! Eat of what is on earth, lawful and good; and do not follow the footsteps of the evil one, for he is to you an avowed enemy. Al-Baqarah 2:168

94. From the land that is clean and good, by the Will of its Cherisher, springs up produce, (rich) after its kind; but from the land that is bad, springs up nothing but that which is niggardly: thus do we explain the Signs by various (symbols) to those who are grateful. Al-A’raf 7:58

95. O ye who believe! Eat of the good things that We have provided for you, and be grateful to God, if it is Him ye worship. Al-Baqarah 2:172

96. Markets Where the Islamic Population is the Dominant Group (Ranked by Muslim GDP at Purchasing Price Parity)

97. Markets Where the Islamic Population is a Minority Group (Ranked by Muslim contribution to GDP at Purchasing Price Parity)

98. The certified halalmarket is currently estimated to be worth USD 400 Billion per annum This represents around 20% of the World population

99. Recent reports indicate thathalal sales in the US are increasing around 80% per year, where a number of new retail outlets specializing in halalproducts are opening up. A&P, Loblaws, Food Basics and Wal Mart are allocating space for halal products in their stores

100. Branding

103. The Muslim living as a minority in a non-Islamic society will have a number of problems identifying what items are halal and haram (forbidden in Islam), without product certification. For example, gelatine, lard and tallow can be either in a halal or non-halal, depending upon their source and method of processing. Cross contamination is a major problem in stores and particularly restaurants, where pork is also served.

104. Toyyibaanwould also mean that agriculture must be undertaken within sustainable practices, and in business, where things should be done with good intentions.

105. “He hath subjected to you all that there is in the heavens and all that there is in the earth: All is from Him. Verily, herein are signs for those who reflect.” Al-Jathiyah 45:12

110. Halal, but is it Toyyibaan?

111. Faith in one God and a commitment in the teachings revealed by God and His Messengers. Iman affects our world view and daily practices. A holistic life where one looks after worldly comforts and also prepare for the hereafter. An individual’s obligation to perform one’s religious duties. The path shown by Allah (SWT). The divine law. Knowledge. Three sources based on Iman, a) intellect (‘aql), experiences and revelations (wahy). Guided by Iman. A collective responsibility for both social and spiritual development Work and deeds, pious practice, orientated to Allah, turning away from all weakness and evil. Amal is based and guided by Iman and Ilmu.

112. Prohibited by Allah in the Al-Qur’an Substances and deeds that are good, healthy, pure, clean and lawful. Permitted by Allah in the Al-Qur’an

113. Worship. Relates man to Allah through spiritual acts. The manifestation of Amal salih (pious actions). Recognition of the right and proper place and station, condition in life and to self discipline in positive and willing participation in enacting one’s role in accordance with that recognition and acknowledgement. Its occurrence in one and society as a whole reflects the condition of justice. A business partnership;a) Shirkah: where two or more individuals pool financial resources and share profit and loss on an agreed ratio and held liable to the extent of their capital,b) Syari’ah: each partner is able to operate other businesses, independent of the principal businessc) Mudarabah:Partnership where one manages the partnership and another supplies the financial resources. A relationship with Allah which excludes a relationship with anyone else. The focus of all man’s reverence and gratitude, the only source of value, where what Allah desires for man becomes value to him. Man who commits his will to Allah, recognises no other authority other than His. Comprises Iman, Ilmu and Amal. Piety Trust by God in man in the all encompassing concept of nature (tabi’ah) Mutual consent Inclination towards destruction The concept of Al-Falah requires Muslims to win and be successful in both this world and the hereafter. Islamic community

114. From the Muslim consumer standpoint; Products must be produced without any forbidden ingredients, Products must be proved to be in the interests of the consumers’ health and wellbeing, 3. Products must be clean and hygienic, have supply chain integrity, 4. Products must benefit those who produced them, 5. Products must benefit the community they came from and 6. Products and the materials that make up these products must be traceable from the origin, to have total confidence. The halal certification system must be widened to verify these issues

115. Home Delivery Farmers’ markets COOP Market Gerai Delivery Many small suppliers that are customer orientated Restaurant & Hotel Delivery Diversified Halal Farms

116. Look for novel strategies

118. Maximises benefits of large local biodiversity Competitive Advantage Through Differentiation Local culture is utilised as branding Maximises Benefit from Location as a marketing advantage Relatively low competitive market segment Southern Thailand Malaysia Brunei Indonesia

119. Where do we go from here?

129. The search for novelty A uniquely positioned business model Exceptional planning

130. Thank You