Briefing to Members of Parliament
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1 Briefing to Members of Parliament Copyright HDC 2012
2 Overview of the Global Halal Market Key drivers of growth 1. Sizeable and growing Muslim population 2. Growing economic development in Muslim countries 3. Emergence of potential Halal markets (China & India) 2
3 Billions 1. Sizeable and Growing Muslim Population Muslim population is forecasted to grow at twice the rate of the non-muslim population. Muslim population worldwide (2010) 1.8 billion World population ( ): Muslim versus Non-Muslim 9 In 2030, Muslims are expected to represent 27.5% of the global population; over 37.5% increase from Muslims Non-Muslims Source: PEW Research Centre 3
4 2. Muslim Populated Countries = Halal Target Markets Western Asia, Indonesia, Malaysia and South Central Asia Pakistan, Nepal, Bangladesh; former Soviet countries Muslim population is more than 50%. 120% Muslim Population as % of National 100% Population Total National Population 2010 (Million People) 80% 60% Western Asia Indonesia Malaysia South Central Asia ex-india Bubble size represents the millions of Muslims Existing markets 40% India 20% South East Asia ex-malaysia & - Potential People's Indonesia markets Republic of 0% China ,000 1,200 1,400 1,600-20% Total National Population 2010 (Million People) Muslim population in Malaysia is projected 22.8 million in Source: Pew Research Centre Source: Pew Research Centre 4
5 GDP (USD) 3. Purchasing Power of Muslims is Growing Muslim GDP per capita has grown faster annually than its global counterparts over the period from 1990 to Source: PWC Analysis Gross Domestic Product (USD) Per Capita 12,000 11,042 10,000 8,000 CAGR:5% 6,530 6,000 Global 4,000 4,185 CAGR:6.8% Muslims Between 1990 and 2010, GDP per capita for Muslims worldwide has grown at a Cumulative Annual Growth Rate (CAGR) of 6.8% (Global CAGR: 5.0%). 2,000-1, Source: United Nations, IMF, PWC Source: United Nations, IMF, PWC 5
6 4. Emergence of Potential Markets India s population is 1.1 billion; 13.4% are Muslims. China s population is 1.3 billion; 3.0% are Muslims. In 2010, India s exports to Malaysia is RM8.0 billion; imports from Malaysia was valued at RM21.0 billion. Source: Department of Statistics, Malaysia Halal exports to India excluding CPO in 2011 was RM 1.4 billion Source: Jawatankuasa Penyusunan Statistik Produk Halal Chinese Halal markets is worth USD2.1 billion and growing at 10.0% annually. Source: Islamic Association of China In 2010, China s exports to Malaysia stood at RM66.4 billion; Malaysia s exports to China was worth RM80.6 billion Source: Departments of Statistics, Malaysia Halal exports to China excluding CPO in 2011 was RM4.1 billion Source: Jawatankuasa Penyusunan Statistik Produk Halal 6
7 2011 PERFORMANCE 7
8 Halal Certified Companies Total Halal Certified Companies 4,785 Composition Ownership (%) Sectors Bumi Non-Bumi 8
9 Distribution of Halal Certified Companies by State State No of Companies State No of Companies 1. Selangor Pahang Kuala Lumpur Sabah Pulau Pinang Terengganu Johor Kelantan Negeri Sembilan Putrajaya 8 6. Perak Labuan 6 7. Kedah Perlis Melaka Sarawak 292 Total: 4,785 9
10 Export by Halal Certified Companies exporters (75% are SMEs) RM35.4 billion Note: Excluding crude palm oil Exports by Halal Certified companies contributed to 5.1% of overall exports for the period between Jan Dec 2011 Period Total Exports_Halal Overall Exports Contribution (RM bil) (RM bil) (Halal) % Source: HDC, Department of Statistic, JAKIM, Custom Department & MATRADE (Jawatankuasa Penyusunan Statistik Produk Halal) 10
11 Export by Halal Certified Companies Products and export destinations: - Industrial Chemical 5.8% Cosmetic & P.Care 5.1% Pharmaceuti cal 0.8% Palm Oil Derivatives 19.8% Ingredient 34.8% Food & Beverage 33.7% Export Value 2011 Ingredient Food & Beverage Palm Oil Derivatives Industrial Chemical Cosmetic & P.Care Pharmaceutical RM bil RM bil RM 7.00 bil RM 2.06 bil RM 1.81 bil RM 0.29 bil Source: HDC, Department of Statistic, JAKIM, Custom Department & MATRADE (Jawatankuasa Penyusunan Statistik Produk Halal) 11
12 Export by Halal Certified Companies Breakdown of export (by sectors): - Sector Ingredient Food & Beverage Palm Oil Derivatives Industrial Chemical Cosmetic & Personal Care Description of Halal products exported Food and non-food ingredients (e.g. fats, additives, salts, emulsifiers, colorings etc.) Processed foods, cocoa, margarine, beverages, meat, seafood, and other edible products Downstream palm oil products for oleo chemical industry (e.g. palm olein, stearin etc.) Organic, inorganic chemicals used in as processing aids (e.g. solvent, catalyst, freezing compounds etc.) Essential oils, perfumery, toiletries & cleansing preparations Export (RM mil) 12,312 11,917 7,005 2,062 1,815 Pharmaceutical Medicinal and pharmaceutical products 286 Source: HDC, Department of Statistic, JAKIM, Custom Department & MATRADE (Jawatankuasa Penyusunan Statistik Produk Halal) 12
13 Investments HALMAS Halal Parks HALMAS Halal Park Operator Investment (RM million) Selangor Halal Hub Central Spectrum 1,300 PKFZ Halal Flagship Zone PKFZ 240 Melaka Halal Park PKNM 114 Tanjung Manis Halal Hub TMHH 1,800 Penang International Halal Hub PIHH 345 TH NSTC 2,014 Total Investments 5,815 13
14 Briefing to Ambassadors and Foreign Missions on the Malaysian Halal System Date: 21 March 2012 Organized by MITI Briefing by: HDC, JAKIM, Department of Standard and Department of Veterinary Services Focus area of discussion: 1. Overview: Development of the Halal industry in Malaysia 2. Malaysian protocol for Halal meat and poultry production 3. Malaysian Halal standards 4. Procedures of importing Halal goods to Malaysia 14
15 HDC 2011 Performance Halal Business Transformation 97 companies nurtured; RM300 million sales generated Global Halal Support Centre Halal Knowledge & Industry Portal: 12 million visitors Training & Consultancy Promoting Malaysia Halal Brand 12,000 consumers trained 1,520 consulted companies obtained certification 245 Halal Executives produced 490 Halal Internal Auditors trained CNN : 208 million viewers worldwide WHR : 1,000 participants from 38 countries PTH : 3 events; 80,000 visitors 15
16 Thank you Halal Industry Development Corporation (HDC) 5.02, Level 5, KPMG Tower, First Avenue, Persiaran Bandar Utama, Petaling Jaya, Selangor Darul Ehsan, Malaysia. Tel : Fax : Hotline : (within Malaysia) (outside Malaysia)
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