Other Editorials
Out of the cage: ‘Halal’ is the new business mantra
By Khairy Jamaluddin
May 6, 2006, 14:41

ONE of the most significant sociopolitical developments of the last 30 years has been the "rise of Islam". Ever since the oil shocks of the late 1970s right up until today’s war on terror, Islam has become a unifying political identity and it has become the significant "other" as far as the West is concerned.

But apart from the political significance that Islam has taken, we have also witnessed tremendous changes in the way Muslims live their lives.

The "rise of Islam" as a sociopolitical phenomenon has also coincided with Muslims becoming more conscious of how they live as people of the faith. This has manifested itself in many ways, not least in dress and diet. With globalisation bringing cultures closer together, Muslims cannot afford to live in isolation. We are part of an increasingly integrated world and must ensure that we are able to live as Muslims in this rapidly modernising world.

These modernising forces have not resulted in homogeneity of culture. Neither has it resulted in Westernisation. On the contrary, it has coincided with the strengthening of certain religious and ethnic identities especially vis-ŕ-vis the West. Chief among those who have cemented their identity are Muslims.

Globalisation has not meant compromise for Muslims. It has not meant that they must live the life of a Westerner.

It has been an opportunity for Muslims to live as they should, in full view of the world without apology or explanation. Of course, I am not referring to those Muslims who believe they should live as terrorists or suicide bombers.

We all know these people do not represent Islam and are as guilty, if not more so, than those who they claim have perpetrated crimes against humanity.

I am actually referring to Muslims who found it so difficult in the past to outwardly manifest their faith because of a lack of understanding and hence scarcity of services.

Today, Muslims are intrepid travellers, going to all corners of the world.

In Malaysia, Middle Eastern tourists have been such a hit fixture that we even have a designated "Arab season". When Muslims travel the world today, they do not expect to meet with the usual problems of yesteryear when it was virtually impossible to find a halal eatery.

I remember growing up abroad how difficult it was to find halal food, especially in the West. Halal butchers were located far in the suburbs where immigrants from Muslim countries settled. Restaurants serving halal food were virtually unheard of.

Today, halal food sellers are increasingly entering the mainstream. They have set up shop in central high street locations and halal products have even made their way onto the shelves of popular supermarkets which previously never catered for this "niche" market.

A large reason for this raised awareness for all things halal from food producers and retailers comes from the realisation that halal is not a "niche" market.

Whereas 20 to 30 years ago Muslims looking for halal food were largely immigrants who would set up their own community retailers, today Muslims are as cosmopolitan as anyone else. They expect certain services to be available and food producers and retailers want to tap into this explosion of discerning Muslims who do not want to compromise on their lifestyle, no matter where they are.

Conservative estimates have put the global market value of halal food trade at US$150 billion (RM540 billion) annually. If products such as pharmaceuticals, cosmetics and services are added in, the combined market value is believed to be more than US$2 trillion.

The potential of this market based on demographic projections alone is staggering.

Islam is the fastest growing religion in the world. Today, there is an estimated global Muslim population of two billion. In less than 20 years, 30 per cent of the global population will profess Islam as their religion. In many European countries, they are poised to become the most significant minority population. These are clearly not Mickey Mouse statistics.

With this in mind, from May 8 to May 10 Malaysia will play host to a timely initiative that seeks to chart the future of the global halal market for the first time.

The entire supply chain of the halal industry will be in Kuala Lumpur to discuss best business practices, highlight market access and opportunities and perhaps even agree on some global standards.

International food producers and manufacturers, certifying bodies, Islamic financial services providers, supermarkets, restaurant chains and logistics providers are among those attending and speaking at the inaugural World Halal Forum. The Forum sets out to be an annual summit for those involved in the global halal market by providing them a trade-specific platform on which to discuss pertinent business-related issues.

While, inevitably, questions relating to halal standards and certification will be raised, it is important that the forum focuses on business growth for halal products. Experience has shown that theological debate as to what is halal and what isn’t can delay the growth of the market considerably. While not wanting to compromise on the criteria for certification, it is important to create a forum that moves beyond theology and focuses on the dollars and cents of this lucrative market.

What is also extremely crucial is the role Malaysia can play in the global halal trade. The Government has repeatedly stated its intentions to make Malaysia a halal hub, yet we are far behind even some of our non-Muslim-majority neighbours. We have not figured out our competitive advantage in this regard and are trying to provide everything down the supply chain, from livestock rearing to food production to transshipment.

Different states have different halal strategies because the provision of land is under their jurisdiction. Only recently did the Prime Minister announce the formation of a halal industry development agency which would be the one-stop shop to facilitate and coordinate the development of this crucial sector.

The World Halal Forum will be an unparalleled introduction to many Malaysians on the huge potential of this market. It will also be an important event for existing players to tap into global opportunities with the participation of many multinational corporations.

It will be an excellent de- monstration to the world that the religion of Islam can be a strong imperative for trade and prosperity therefore challenging the unfair and narrow stereotypes which have become so prevalent over the last few years.



* The writer is also chairman of the World Halal Forum

© Copyright 2006 by halaljournal.com