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news release

FOR IMMEDIATE PUBLICATION Wednesday, 14 March 2012

Malaysia Records RM35.4 Billion Total Export Value For Halal Products for 2011
HDC officially reports on the annual performance of the Halal industry, a move to induce the public to perceive the enormous business potential of the Halal industry in the right perspective.

Kuala Lumpur-- Minister of International Trade and Industry, YB Dato Sri Mustapa Mohamed today announced that Malaysias export value for Halal products for the year 2011 is RM35.4 billion. The contribution from Halal exports was 5.1% from the total export for the country as at December last year. This figure far surpasses our estimate and expectation and shows that Malaysia is a big player in the Halal industry, said Dato Sri Mustapa Mohamed at a special briefing for the media. This is a significant milestone for the halal industry because we are reporting Halal statistics for the first time. HDC has developed a database for comprehensive Halal statistics, which makes it possible for us to report the performance of the Halal industry. In terms of comparison with other countries it is quite difficult for them to achieve full statistics, as they do not have databases that are dedicated to Halal development as we do.

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I believe that with this years achieved export value, we are a leading exporter of Halal products, and the biggest among OIC countries, added the Minister. Malaysias Halal ingredients sector is in the lead with an export value of RM12.3 billion (35%), followed closely by food & beverages 11.9 billion (34%), Palm oil derivatives (such as oleochemicals) RM7.0 billion (20%), industrial chemicals (such as manufacturing processing aids) RM 2.0 billion (6%), cosmetics and personal care RM1.8 million (5%), and pharmaceuticals RM0.29 billion. In the food and beverage sector, the top five products are processed food, cocoa, margarine, beverages, meat and seafood. The top five markets that the country exports it halal products to are China, the US, Singapore, the Netherlands and Japan. Today, there is an estimated population of 1.8 billion Muslims worldwide. The global Halal market is currently estimated at USD2.3 trillion covering both food and non-food sectors. A big portion of this potential market is yet to be tapped. Our GDP per Muslim capita has grown faster annually than its global counterparts during the period from 1990 to 2010. For the same period, GDP per capita for Muslims worldwide has grown at CAGR of 6.8% (Global CAGR : 5.0%), said Dato Sri Mustapa Mohamed. Malaysian companies in this respect can be encouraged to focus on new emerging markets, such as China and India, two countries that have huge Muslim population. China has 39 million Muslims and a Halal food industry that is estimated at. USD2.1 billion, which is expected to grow at 10% annually. Chinas import of Halal products from Malaysia in 2011 is worth RM4.1 billion out of a total Halal export of RM35.4 billion. Likewise, India has 154 million Muslims and in 2011 imports Halal goods
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from Malaysia to the value of RM1.4 billion out of a total Halal export of RM35.4 billion. With this large Muslim population figures Malaysia should export more to China and India as they have the markets and the potential to develop their respective Halal markets even more, added the Minister. There are currently 4,785 Malaysian halal certified companies and 700 registered exporters of which 75% are SMEs that contributed to the world market demand. More halal companies are urged to tap this huge market. In terms of investments HALMAS Halal Parks have brought in significant returns for 2011 with realized investments amounting to RM 625.1 million. The breakdown: Penang International Halal Hub (RM381.1million), techpark@enstek (RM8.4 milion), PKFZ Halal Flagship (RM8.6 million), Melaka Halal Park, Serkam (RM34.0 million) and Selangor Halal Hub (RM193.0 million). There are today 9 HALMAS Halal Parks, which are choice locations that provide comprehensive services for companies who wish to tap the lucrative global halal markets. To date, there are 100 companies located within HALMAS Halal Parks. Some of the major tenant-companies that have started operations in HALMAS Halal Parks include Cargill, F&N (PML Dairies), Coca-Cola and Kewpie. For 2012 the target figure for Halal exports is an increase of 6% from 2011 and the target investments for the Halal Parks is RM 1 billion, said the Minister. HDCs investment-oriented programmes are aggressively tailored to companies that require professional assistance for participating in the global Halal arena. In its Halal Business Transformation Programmes (HBT) a total of 97 companies were nurtured and have generated RM300 million in combined
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sales. This performance has enhanced the companys competitiveness and business growth, said Dato Seri Jamil. HDCs Global Halal Support Centre set up three years ago, has recorded 12.5 million visitors from 122 countries visiting its portal sites for Halal information. Its i-kiosk is just as popular having attracted 152,000 visitor while its Halal Apps recorded 55,000 downloads worldwide. The training and consultancy arm of HDC has been equally aggressive, clocking major training programmes for 12,000 consumers, 1,520 companies, of which 380 obtained Halal Certification, 254 executives, of which 100% have secured jobs and 490 internal auditors. Other HDC initiatives include a Halal Data Warehousing System that will create the necessary database to identify gaps, opportunities and challenges to take the halal development to the next level. According to Dato Seri Jamil, Halal ingredients are hugely needed in food sectors and non-food sector. Conventional perception assumes that ingredients are only required in the food processing sector, which is a narrow view of Halal growth and development. I believe the entrepreneurial sector will soon realize that specializing in providing Halal ingredients is a growth sector, which can transform the business into an export ready one because of the high demand for specific ingredients. This may lead to the opening up of untapped sources like palm oil, a commodity with an estimated export value of RM80 billion. For a long time the Halal industry is publicly perceived with naivety where the Halal industry is only evaluated by the number of food and beverage products available in the stores. The Malaysian Halal industry under HDCs care extends beyond the food and beverage sector. We are promoting a Halal eco-system which covers
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food, non-food and services sector, which collectively provide a much bigger return to our economy. As we can see from last years composition of Halal exports, the food and beverage sector is already crowded with players, and halal does not necessarily mean food. As such Malaysia should leverage on its strengths to develop the other sectors within the diverse Halal industry. Malaysia is proud to be ranked as one of the top producers of halal ingredients in the world, added Dato Seri Jamil.
ABOUT HALAL INDUSTRY DEVELOPMENT CORPORATION SDN BHD (HDC) Halal Means Business The Halal Industry Development Corporation (HDC) was established on 18 September 2006 with the express objective of coordinating the overall development of the Halal industry in Malaysia for both the domestic and international markets. HDC is an agency under the Ministry of International Trade and Industry (MITI). HDC is Malaysia's holistic response to the worldwide demand for better quality products and services as consumers gain confidence in the Halal process. Its key thrusts are to grow and advance the development of Halal standards; facilitate capacity- building for halal products and services; and promote growth and participation of Malaysian companies in the multi-trillion dollar global halal market and industry. Today, there is an estimated population of 1.8 billion Muslims worldwide. The global halal market is currently estimated at USD2.3 trillion covering both food and non-food sectors. In its effort to serve as an international hub for the halal industry, HDC provides manufacturers, distributors, retailers, entrepreneurs, researchers and investors with comprehensive assistance to penetrate and serve a growing global halal market through the adoption of the Malaysian experience and expertise in food and nonfood sectors. For more information, please visit HDC at - www.hdcglobal.com. MEDIA INVITATION prepared and issued on behalf of Halal Industry Development Corporation (HDC) by public relations consulting firms - Prestige Communications Sdn Bhd and GRA Communications Sdn Bhd. FOR MORE INFORMATION, please contact Shafina Syafei, Head, Strategic Marketing & Communications, HDC at +6019 3880280 or email shafina.syafei@hdcglobal.com OR Norsida Ahmad at +6012 3249703 or email norsida.ahmad@hdcglobal.com OR Hamidah Karim at +6012-2672397 OR Ghazalie Abdullah at +6017 3361090.

Strategic Marketing & Communications - Halal Industry Development Corporation

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