Malaysia Veterinary Forum (Archive)

Dr. TanDY

Halal Products: Gauging The Ability Of The Malays

KUALA LUMPUR, May 1 (Bernama) -- Alarm bells among Muslims in the country are on whenever there is news on the halal (which means permissible in Islam) status of consumer products.

Among such news are that on dubious chicken slaughtering method, to that on "ikan patin" (striped, silver catfish) being fed with boiled pork and pig faeces used as vegetable fertiliser!

These news elicit uproar from many quarters. The bottom line is that the halal issue is like the sea's "high tide".

Once an issue is exposed, heated debates would follow. The halal status would be eventually restored after the big "boo boo" and flames of anger finally extinguished.

It looks like the end of yet another story ... while waiting for the next one to crop out.

LESSON TO BE LEARNT

There is a lesson to be learnt from all of these shocking development -- it is high time for the country's Muslims to play a different tune.

They should evolve, from being mere buyers, to become producers. Their products must be halal and of high quality with the global market well charted in their business strategy.

According to a Malay entrepreneur, the halal concept itself could be utilised to reinforce the Bumiputeras' economic forte.

"Unfortunately until today we've not been able to do just that. We don't know our own strength and are not smart enough to strategise," he said.

He said it is time for the Malays to leave this "comfort zone" and reap the many opportunities provided by the government for them to become successful businessmen.

HALAL PRODUCT MARKET

If the world Muslim population is taken into account, then the market for halal products is really huge as it is estimated that by 2010, the world Muslim population would reach three billion.

In Asia, especially Malaysia, Thailand, Philippines, Indonesia, Singapore, Brunei, China and Arab nations, the number of Muslims is estimated at one billion.

According to industry sources, the value of the global halal market is estimated at between US$0.5 trillion to US$2.5 trillion per year (AS1=RM3.67).

Prime Minister Datuk Seri Abdullah Ahmad Badawi, when tabling the Ninth Malaysian Plan (9MP) said the government would establish the Halal Industry Development Corporation to develop halal food in a more comprehensive and orderly manner.

He said Malaysia has an advantage in the halal sector especially in terms of certification and logo.

In that respect, the Prime Minister said the government would steer the industry's growth towards making the country the international hub for halal products and services.

In the meantime, the Prime Minister, in the latest "The Halal Journal" publication, said Malaysia is in a better position to produce halal products and services and market them worldwide as the country is among the most active members of the Organisation of Islamic Conference (OIC).

The government is very serious in its efforts to boost the halal food industry products but the question is whether the Malays are ready to sweat it out or still prefer to lounge around and be contented to be "Ali Baba" businessmen?

CHANGE ATTITUDE, CHANGE MINDSET

"Whether the Malays are capable of producing halal products, they've to ask themselves," came the reply from Malaysian Malays Chamber of Commerce (DPMM) secretary-general Datuk Mohd Ramly Mohamad when asked by Bernama.

He said the halal products offer great potential and it is an easiest way for the Malays to venture into business as support from Muslim consumers is already there.

"It boils down whether they want it or not. The facilities are all there. There are also many government agencies to impart the know how.

"This halal thing, if it's properly utilised can really boost business of the Malays. If you can get the non-Muslim market, then it's a bonus," he said.

To Mohd Ramly, the stumbling block would be the will.

"Like the fried banana business, there is no will to go further. The same with tapioca, they make tapioca crackers and merely sell to the surrounding neighbours or around the village. By right they can go on to larger scale.

"Surely if it is on a larger scale, they will be confronted with many problems. These they have to face and deal with but the Malays just don't want to be bothered. Their thinking is why should they trouble themselves by making the business big," he said.

He said the Malays are easily contented with what they have.

Change the attitude, change the mindset. These two are important for the Malays, said Mohd Ramly.

He said at present there are Malay entrepreneurs producing halal products but the DPMM is still not satisfied with their number.

"Those producing halal products on a small scale numbers about 500. Big companies are few," he said.

MORE SETBACKS

Malay businessmen are not brave enough to take risks, according to the Muslim Consumers Association Malaysia (PPIM) secretary-general Datuk Dr Maamor Osman, when asked to comment on the Malays' ability to produce halal products.

"To produce halal products, we've to fulfil several international conditions such as the factory must possess Good Manufacturing Practices (GMP). For that, we've to have good premises. Our products would not only be fit for the domestic market but we can also go for the international market.

"This kind of business also require Research and Development (R&D). We need staff with proper qualification and we need to pay them good salary. This is also a weakness on the part of the Malay businessmen," said Dr Maamor.

He said the Malay businessmen are reluctant to spend on the Hazard Analysis and Critical Control Point despite the system being crucial for food quality control.

Dr Maamor said what is important is how "to get Muslim entrepreneurs to shoulder the responsibility to produce halal products".

"When the sausage issue came about with claims that it wasn't halal as the natural casing was from an animal source not certified halal, we hear many angry voices but in actual fact after the issue erupted no Muslim entrepreneurs came forward to seize the opportunity to produce this particular product," he said.

Other weaknesses of the Malays ara lack of expertise in product promotion and punctuality, said Dr Maamor.

He stressed that the normal saying "it's normal for the Malays to be late" should be done away with.

"This stigma that the Malays are bad time-keepers do not stop there but also in terms of meeting the quality and society's expectations. This is the stumbling block for our products to penetrate the market," he said.

REQUIRE PLANNING

There is this English proverb which says "If you fail to plan, you plan to fail".

According to Dr Maamor, in the country's aspiration to become an international hub for halal products, it is very relevant to think also on its modus operandi.

The making of a product, he said is like a chain in which each part is linked to the other and not broken.

In this aspect, Dr Maamor is talking about the legal side and raw materials.

From the legal aspect, he said, an Act on halal products should be legislated and this can spawn several state enactments that implement, monitor, enforce and provide halal products for all consumers.

On raw materials, he said: "So far we can see that the basic ingredients like rice, flour, sugar, beef, mutton and poultry are not under the control of Muslims".

Dr Maamor said very few wholesalers are Muslims while foreigners operate hypermarkets in this country.

He calls for government-link companies and agencies like Federal Agricultural Marketing Authority (Fama), Fisheries development Authority (LKIM) and Malaysian Agricultural Research and Development Authority (Mardi) to be directly involved in preparation of the raw materials.

Universities can conduct research as the food business also requires R&D.

He said all of these demand commitment from all -- entrepreneurs, consumers and government.

"The Consumer Policy launched in 2003 states that consumers must be self-protected, entrepreneurs should be self-regulated meaning they should have business ethics and morals based on Islam," said Dr Maamor.

SUITABLE STANDARD

Production of halal products should not only focus on issuance of halal certificates.

Mohd Ramly said: "The halal certification should be standardised similar to the ISO (International Organisation of Standardisation) to enable it to attain world recognition.

"Somebody should standardise the halal certification so that it can achieve global status and accepted internationally," he said.

Dr Maamor said halal food preparation should be translated into suitable standardisation that meets today's requirements in which the standard complies with preparation, processing, storage, transportation and packaging procedures.

He said the PPIM has been entrusted by the Department of Standard Malaysia to introduce and promote the MS1500 which is the Malaysian standard for halal products.

"So far we had conducted four national seminars (in Kuala Lumpur, Johor, Terengganu and Pulau Pinang). We hope to inculcate awareness on the importance of having a standard.

Dr Maamor said he has proposed another standard known as ISI2020 in which it contains a very important element -- the personal belief system.

"In Malaysia after the May 13 incident, we have the Rukun Negara. The first pillar is Belief in God. In Malaysia, we can say that all its citizens believe in God and there is no religion that allows cheating and dishonesty.

"If everybody adheres to this religious principle, I believe there won't be any cheating in the production of halal products whether the person is a Buddhist, Hindu, Christian, what more Muslim," said Dr Maamor.

EFFORTS TO ASSIST ENTREPRENURS

Packaging is an important aspect in promoting a product and this is another weakness of the Malay businessmen as they are reluctant to incur extra costs.

Towards that end the DPMM and Majlis Amanah Rakyat (MARA) will set up a one-stop packaging centre.

"Our people's mentality is that why make such a fuss in packing, you just take the plastic, use the candle flame to seal it and sell the product along highways, that's good enough.

"Through this packaging centre, we'll amass all the products made by the villagers and pack them nicely, complete with labels and the halal certification," said Mohd Ramly.

This one-stop packaging centre is scheduled for operation by the middle of this year and it will be managed by a company selected from among DPMM members.