Sabah best for organic halal food industry
THE current global halal market is estimated to be around USD3 trillion, and is expected to grow to nearly USD8 trillion by 2030.
The market is driven by a growing Muslim population and the increased spending power of Muslim consumers.
Malaysia is one of the leading countries in the halal industry since the early part of the millennium as evidenced by its halal exports reaching RM43 billion in 2017.
The Halal Industry Development Corporation (HDC) expects Malaysia's export of halal products to grow to RM50 billion by next year.
That expectation stems from the fact that almost all the products are from Peninsular Malaysia.
Sabah, despite its huge land mass replete with raw materials, is not even sharing a quarter of the ‘cake', and this is something that entrepreneurs should seriously look into.
Sabah Entrepreneurs Chamber of Commerce chairperson Anita Mohamed has admitted that obtaining the halal certificate is not easy and is time consuming and entrepreneurs, especially Muslims, bear a huge responsibility to provide the best halal products to their customers.
“In Sabah, we have the best environment compared to the other states in Malaysia. We also have huge tracts of land that can be developed for raw materials.
“If we are looking beyond the halal certification, we should look into the potential of ‘organic' and ‘pesticide-free' food, which is the trend developing all over the world, and people, regardless of their race and belief, are starting to go for countries with the least toxic composition in their raw materials.
“Just imagine, the combination of halal and chemical-free food from Sabah, we could be the leading light in the industry,” she said.
With more than 10 years experience in manufacturing halal cosmetic and supplement items, Anita is aware that Saudi and China are two target markets for most of the Malaysian entrepreneurs.
However, she urged Sabahans to look at Brunei, Indonesia, Malaysia and the PhilippinesEast Asean Growth Area (BIMPEAGA) as a starting point to go global.
“I am speaking through my experience as the chief executive officer of AFCL Bioscience Sdn Bhd., that has five actively operating Good Manufacturing Practice (GMP) factories all over Malaysia.
“We cannot deny that the halal business is booming on a global scale but we must start from the bottom.
“If you have a good product, start selling to your friends and relatives. Get their feedback and improve from time to time. When your production increases, there is no harm to start a small factory in your backyard.
“When you are at this level, it is still not the right time for halal certification, because it obviously has not been accepted, especially in Sabah, because you are dealing with different local authorities.
“AYou must, however, keep om learning from others on how to minimize your time and expenses in order to be certified.
“By the time you get your halal certification, the government would already be in full force to help you to go global,” she said.
As for Anita herself, her company, AFCL Bioscience Sdn Bhd, has been manufacturing a number of well-known products that are currently exported to neighboring countries, mostly to Brunei and Singapore.
“Our services include OEM & OFM contract manufacturing, development of health juice and supplement formulation, development of cosmetic and skincare formulation, development and formulation of instant 3-in-1 drinks and powder food, research and development of consumer product and lab test service and development of all kinds of perfumes and consumer fragrance products.
“Our factories in Sabah are located in Lok Kawi and KKIP, while three others are in Peninsular Malaysia.
“Recently, Entrepreneur Development Minister Mohd Redzuan Md Yusof visited our factory and conveyed the government's request for us to train more local entrepreneurs to achieve more success in their respective fields.
“Since last year, I have been working together with members of Sabah Entrepreneurs Chamber of Commerce and noted that the potential of the halal industry is not only focused on food but also in healthcare and cosmetics. We are hoping to create something in Sabah, and our intention is to start small but to aim big.
“From our experience, looking towards China and Saudi is possible but may not be wise.
“Our penetration should start on a small scale so that we gauge the supply quantities that we can manage to face the demands of a bigger market in order to survive in a longer run.
“We share our concerns with local entrepreneurs, and hope that they understand our intention,” she said in a exclusive interview with The Borneo Post.
Looking at the potential in Sabah, especially in producing raw materials, Anita urged players in the agricultural industry to establish a support system if they want to participate in the halal market.
“Modern planters must understand the market demands before starting their development plan.
'If they want to go big, consider learning on how to be part of the halal, organic and pesticide-free industry.
“If our manufacturers in Sabah have enough raw materials from our own planters, it will be a huge benefit for us in terms of costing.
“I can give a very simple example on halal certification application. One of the most challenging aspect for our local companies to obtain halal certification, even though they have a proper factory, is the material safety data sheet (MSDS).
“As for cosmetics, it is easy for us to get MSDS because most international companies supplying the materials are already equipped with it. But how about our planters?
'If they are not knowledgeable on this, they might pull out as suppliers because they are not qualified.
“I believe, if the suppliers and manufacturers work together to make this happen, Sabah can be a leading industry player,” she explained.