The Third World Halal Forum: A Report

The third World Halal Forum (WHF) held in Kuala Lumpur, Malaysia, last May grew in stature and significance. Here is a special report…

 

The World Halal Forum (WHF) 2008 exceeded all expectations with heads of state, industry leaders and academics coming together under one roof to voice their concerns, outline issues, and plot the future direction of the global Halal industry, which brought together 1,200 participants from over 56 countries and attracted over 200 local and international media personnel.

It smashed last year’s attendance records, generated in excess of RM10 million in PR value from the Malaysian media alone, and retained its status as the largest such forum in the world. It ultimately highlighted the importance of the Halal industry and the need for a successful platform to bring together all decision-makers and stakeholders, so they may guide the industry to a more integrated and sustainable future.

Malaysia’s Halal initiatives and Government support once again took centre stage through the presence of the Prime Minister of Malaysia, and support from Malaysia’s Halal Industry Development Corporation (HDC). The third WHF kicked off with the Prime Minister of Malaysia, Dato’ Seri Abdullah Ahmad Badawi delivering his keynote address, followed by an address from the newly appointed Chairman of the World Halal Forum and President of the Islamic Chamber of Commerce and Industry (ICCI), Sheikh Saleh Kamel.

In his keynote speech, Abdullah pledged RM15 million to the International Halal Integrity Alliance (IHI Alliance), effectively signalling Malaysia’s strong commitment and support for the development of a global international Halal standard. The IHI Alliance is an international, non-profit initiative that represents international Halal industry players with one definitive voice.

In his speech, the Prime Minister also urged all delegates, especially those from abroad, to formally endorse and support ICCI and its strategic partnership with IHI Alliance in their task of implementing the global Halal agenda. This was mandated to ICCI by the Organisation of the Islamic Conference (OIC) and propagates the benefits of Halal, elevating it as the standard of choice from all consumers.

The Prime Minister also stated that the Malaysian Government will further strengthen its support for developing the global Halal industry. “As a legacy of Malaysia’s past chairmanship and as our commitment to the Organisation of the Islamic Conference, my Government reiterates our willingness to extend technical assistance to all Muslim nations, as well as to Muslim minorities in non-OIC nations,” he said. He added that this assistance will be in the areas of Halal certification, technical know-how and standards development.

Abdullah also witnessed the launch of new initiatives and programmes with the signing of four Memoranda of Understanding (MOUs). Most notable was the tripartite MOU between HDC, the Dubai Islamic Investment Group and Lembaga Tabung Haji, which entails the formation of an investment company that will invest in businesses involved in the Halal products industry worldwide.

Other MOUs signed was between HDC, Tanjung Manis Food and Industrial Park, and Port Klang Free Zone. It also included a strategic agreement between Trace Tracker Innovation and CIMB Private Equity, which will contribute in elevating the Halal standards to be in line with international best practices by introducing solutions to make Halal traceability a reality.

The second session saw speakers discussing the convergence of Shariah and industry, with the insights provided by Dr Mohammad Hashim Kamali, a professor of Islamic law and jurisprudence at the International Islamic University of Malaysia, sparking some heated questions from the floor.

The next presentation by HDC chief executive officer Dato’ Jamil Bidin focused on implementation and HDC’s role in certification. Delegates were also given an overview of how Islamic finance could be used as a developmental force by the final speaker of the session, Badlisyah Abdul Ghani, CIMB Islamic Bank executive director/ chief executive officer.

Later, the Indonesian Minister of Agriculture Dr Ir Anton Apriyantono gave a talk on the Indonesian economy and its Halal initiatives. The final session of the first day provided delegates with a truly international perspective with speakers from four countries highlighting their own respective Halal industry development agendas.The speakers – Agricultural Director from Brunei, Hajjah Normah S.H Jamil; Science and Technology Director from the Philippines Dr Haja Sittie Shayma Zenaida P. Raof-Laidan; Assistant Secretary General of Ningxia Autonomous Hui Region of China, Hei Zhihu, and Professor Hirofumi Oki from Japan – gave delegates up-to-date information about the challenges, issues and opportunities in these markets.

The second and final day of the forum saw KasehDia head of research and strategies Dr Irfan Sungkar start the proceedings with a presentation on global Halal trends. Tan Sri Dato’ Muhammad Ali Hashim, Chairman of KFC Holdings (Malaysia) Bhd, then made an insightful presentation on Halal as a Corporate Social Responsibility.

The following panel session was extended as there were many questions and comments from the audience. The second round of MOU signings were held next between HDC and Tamadam Bonded Warehouse Berhad, Muslim Mindanao Halal Certification Board and finally MISC Integrated Logistics and Prima-Agri Products.

Delegates then returned for a presentation on investment and industrial innovation by Dubai Islamic Investment Managing Director Marwan Hassan Al Khatib and the Chemical Company Of Malaysia (CCM) Group Managing Director Dato’ Dr Mohamad Hashim Ahmad Tajudin. Once again the ensuing panelist session sparked much heated debate.

The final session of the WHF began right after lunch, with speakers outlining the various issues related to standards and conformity. The forum was honoured to have Mr. Saud Rashed Abdallah Alaskar from the GCC Standardisation Organisation (GSO) present regulatory issues and recent developments in the GCC region.

This was followed by a presentation by Robert Madge, President of IDTrack, the European Association of Secure Identification and founder of Xifrat Daten AG Switzerland. Madge presented new insights into the need for traceability to ensure the integrity of the Halal value chain.

Meanwhile, Malaysia’s perspective and achievements in developing the most referenced Halal standard was presented by Nor Latifah Hussin from the Department of Standards. The final session of WHF 2008 was the resolution formation panel, which was made up of key speakers and panellists, including Darhim Dali Hashim, the newly-appointed Chief Executive Officer of IHI Alliance, and Fadilah Baharin, the Director-General of the Malaysian Department of Standards.

The forum concluded on a high note with the following resolution: “Adoption of International Halal Integrity Alliance (IHI Alliance), a non-national and not-for profit organisation to develop, implement and maintain Halal standards and conformity assessment system in assuring Halal integrity throughout the whole supply chain, and to play a leading role in assisting Muslim and non-Muslim countries in Halal institutional development and other important areas.”

Updates on the developments of this resolution will be posted on the WHF website, www.worldhalalforum.org.

 

A Touch of Class…

From the welcome dinner for international delegates to the closing remarks, there was never a dull moment as Press conferences, business matching activities and exhibitions exposed all delegates to a myriad of Halal industry opportunities and challenges.

The foyer exhibition areas showcased Malaysia’s Halal initiatives through Halal parks and the Malaysian Halal logo. Adjacent to the forum hall was the sponsors’ exhibition area, showcasing Malaysian and prominent international Halal industry players from key segments of the global Halal value chain.

During lunch, delegates were served with a fusion of various dishes of local and international cuisine – where all beef served were succulent high quality and Halal meat from Uruguay. International delegates from diverse industries and countries shared their perspectives of the Halal industry and its entire value chain within lunch hour. This unique scene and business networking opportunity truly made the World Halal Forum a must-attend event.

The Gala Dinner was a classy yet cultured end of an insightful first day of the World Halal Forum. Walking down the route to the Gala Dinner was a corridor of cultural festivities with delegates greeted by ethnic gamelan musicians, songket weavers and live demonstrations of pewter sculpting.

After the arrival of the guest of honour, the Prime Minister of Malaysia, and a multimedia presentation, guests were treated to a performance by Mohram, a musical duo that played traditional ethnic instruments.

Just as dessert was served, it was time for the Prime Minister to present the Halal Journal Awards, which are the highest recognition possible for those in the Halal industry. The night finally came to an end as guests, dignitaries and delegates bid farewell and returned home to prepare for the next day’s forum.

Throughout the forum, all speakers and panellists were presented with hand-woven songket, made by single mothers in Terengganu to support their children. This was part of KasehDia’s corporate social responsibility initiative implemented by Dasar Kurnia.

 

WHF Investment Site Visits 2008

Following the two-day forum was the Investment Site Visit to promote the Malaysian-based Halal industry. Thirty delegates from countries such as Singapore, the US, Russia, the Philippines and Malaysia were invited to visit some of the major Halal establishments and initiatives in the country.

These included the Port Klang Free Zone (PKFZ) and MISC Integrated Logistics Sdn Bhd (MILS) at Pulau Indah, Port Klang on May 14, and Chemical Company of Malaysia’s (CCM) pharmaceutical plant on May 15. Delegates saw first-hand the numerous projects and incentives available in Malaysia, and were presented with the facts, figures, processes and methodologies relevant to taking advantage of Malaysian Halal facilities.

According to the WHF Secretariat, the site visit was organised to appreciate investment opportunities in Selangor, to absorb and understand issues in the Halal industry and also to view infrastructure and facilities that had been set up to accommodate businesses and expand network opportunities among multi-national participants.

According to PKFZ General Manager Chia Kon Leong, the facility, set up in November 2006 on 1,000 acres of land, is now welcoming investors. It is state-of-the-art and includes multi-access to neighbouring and global markets by land, sea and air; integration of both industrial and commercial operations; zero customs duties for permitted products and services; a one-stop centre with a comprehensive, efficient and cost-effective investment facilitation; paperless transactions; competitive lease rental rates for land and buildings; simple transhipment procedures; investor-oriented policies and labour laws, and full investment security.

Other facilities within the PKFZ, which is fully backed by the Malaysian Government, include 640 acres of prepared land, available in plots of various sizes complete with basic infrastructure. These plots are open for long-term lease of 10-30 years with options to extend. There are also 512 units of light industrial units for light-manufacturing, trading and logistic activities, commercial and exhibition centres and 135 of business class hotel rooms.

Chia also said that special rates will be given to the first 15 investors in PKFZ under the Flagship Halal Zone (FHZ), co-managed by PKFZ and HDC: “We are ready for business, and together with HDC, we will spur the growth of the Halal industry in Malaysia.”

The next stop was the MISC Integrated Logistics Sdn Bhd (MILS), a subsidiary of MISC Bhd, located next to the PKFZ. The facility is 95 per cent complete and will be ready for business in July to provide logistics solutions for the Halal industry.

“With the capacity of 11,000 pallet positions of cold storage, it is going to be the biggest Halal cold storage facility when we start operation in July 2008,” said MILS Managing Director Hilmi Mohd Nashir. MILS also allocated 250,000 sq ft of warehouse space for dry storage purposes.

Meanwhile, WHF Deputy Chairman Nordin Abdullah noted that PKFZ and MILS are the best facilities to cater for the global Halal industry players. “From the view of the WHF for the last 12 months, we have gone to 28 countries and conducted programmes in a few other places. By far these two facilities in Port Klang are the most advanced and the most ready to do business,” said Nordin. He also urged the Malaysian Government to consider making it compulsory for Halal meat importers to use this Halal cold storage.

Participants also witnessed the production process of CCM Pharmaceutical in its plant in Bangi, as well as an MoU signing between Prima Agri-Foods Sdn Bhd and SGS (Malaysia) Sdn Bhd, which is an inspection, verification, testing and certification services company.