Insights-Navigating Malaysia’s Halal Market

Insights-Navigating Malaysia’s Halal Market


Malaysia’s 16 million Muslim population is driving demand for halal products. Proximity to Islamic markets such as Indonesia and the Middle East also offers strong export opportunities.

This insight explains How exporters can access the global halal market by using Malaysia as a launch pad, and important considerations when obtaining halal certification.

Meaning of halal

Halal is interpreted as “acceptable” or legal within the bounds of traditional Islamic law, which is protected by Islamic believers.

It is especially relevant in the Islamic diet. This is an important consideration affecting the production and processing of many foods, especially in Islamic countries. While many consider halal to mean the absence of pork and alcohol, halal has certain importance throughout the value chain.

Important aspects of food manufacturing, such as raw material procurement, slaughter, and food packaging, must follow Islamic beliefs in order for the final product to be certified as halal and available for sale to the Islamic community.

Important considerations for halal certification

Not all products need to be halal certified before they can be imported into Malaysia. However, it is obligatory to obtain halal certification before importing.

Obtaining certification for other food categories depends on market entry considerations, distribution channels, and end users.

This is most apparent in the food services and hospitality sector, where many facilities are halal certified and require halal certified ingredients to maintain this status. For example, Malaysian importers only negotiate with Halal-certified dairy manufacturers for specific considerations regarding channels to the market.

Halal certification is generally considered a Muslim equivalent to HACCP or GMP certification. Brands guaranteed by Halal will be rewarded for their loyalty and greater market access to the Islamic market.

Trade impacts for exporters

Companies that see Malaysia as a potential market Manual for importing country requirements (MICOR) According to the regulations of the Ministry of Agriculture, Water and Environment (DAWE). MICOR sets out the requirements that exporters must meet for products and commodities that are permitted to be imported into certain countries.

The Department of Islamic Development of Malaysia (JAKIM) is the leading agency responsible for Islamic issues, including halal certification. JAKIM needs to check the halal status of a product at every stage of manufacturing in order to obtain halal certification.

Foreign halal certification body

JAKIM has appointed the Foreign Halal Certification Authority (FHCB) to facilitate the process for companies based outside Malaysia. These authorized representatives ensure that the manufacturing process complies with Halal standards. Currently, Australia has seven certification bodies for the export of halal certification to Malaysia.

To the Ministry of Agriculture, Water and Environment List of Islamic institutions recognized for halal certification of lean meat..

Exporters must also meet the following other requirements: Australian regulations before export..

Malaysian Muslim consumers are young, curious and tech-savvy

Today, there are an estimated 1.9 billion Muslims in the world, accounting for about 26% of the world’s population. One in four adheres to Islamic lifestyles and their religious practices, including compliance with Halal standards.

On the basis of Current Status of World Islamic Economic Report 2021, Islamic consumer spending is expected to reach US $ 2.4 trillion by 2024. Food spending alone can account for more than US $ 1 trillion.

The average Muslim population in Asia is under 30 years old. Malaysia’s high internet coverage means that many consumers are strongly influenced by social media and use it as their primary source of information. Social media channels have proven to impact global brand sales, especially by leveraging ambitious lifestyle marketing through halal events and campaigns.

Malaysia at the forefront of the world’s halal industry

With a population of 16 million Muslims, Malaysia is in high demand for genuine Halal products. Malaysia is in a position to benefit from both local demand and strong export opportunities by leveraging the increased purchasing power of consumers in other Islamic markets. These include the Middle East and neighboring Indonesia, the largest Islamic country in the world.

Malaysia’s natural character, along with aggressive government policy, shows the expansion of opportunities in the Halal economy. As a member of the Organization of Islamic Cooperation (OIC), Malaysia’s Halal certification is globally recognized by all Islamic countries, making it a perfect launch market for exporters.

World Halal Business Conference

Malaysia hosts the largest halal conference in the region each year. This conference provides a unique opportunity for exporters to better understand the halal ecosystem and what Malaysia offers.

The World Halal Business Conference will be held on September 9th to bring together government agencies, business leaders and scholars from around the world. Australian companies interested in participating in the global Halal economy, hosted by the Halal Development Corporation, are encouraged to attend virtual conferences.

For more information, please contact the Australian Trade Promotion Agency in Kuala Lumpur.

Austrade: Here

contact KC Liew, Business Development Manager – Austrade Kuala Lumpur’s Agribusiness, Food & Beverage, Food and Beverages, Agribusiness Opportunities, and Inquiries about the Malaysian Market.

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Insights-Navigating Malaysia’s Halal Market

Insights-Rapid growth of Korean battery makers


Korean battery manufacturers are seeking strategic partnerships with Australian miners to ensure a stable supply of important minerals such as cobalt, lithium, nickel and manganese.

Korean battery makers are growing significantly

LG Energy Solution, Samsung SDI and SK Innovation, three major Korean battery manufacturers, have grown significantly over the past year.

The combined global market share of these three Korean companies jumped from 16% in 2019 to 34.7% in 2020. This is due to the rapid growth of the electric vehicle market in major economies around the world.

Global production of rechargeable batteries reached 23.3 trillion won (A $ 27.5 billion) in 2020. The value of production over the last three years has steadily increased¹.

Figure 1: Secondary battery production value (Korea)

Source: Korean Ministry of Trade, Industry and Energy

South Korea relies heavily on China for battery minerals, but seeks to diversify its supply chain to overcome potential geopolitical and commercial challenges. Korean companies are pursuing strategies to ensure a sustainable supply of lithium, cobalt, nickel and manganese in response to the expected exponential growth of rechargeable batteries for the EV sector.

Challenges in the world’s key mineral supply chains

Current supply chain vulnerabilities are evident in the supply and processing of cobalt. 2019, About 70% of cobalt was mined in the Democratic Republic of the Congo (DRC), followed by Russia (4%), Australia (4%) and the Philippines (3%).

Today’s major cobalt-copper supply chain (from DRC via South Africa) is becoming increasingly vulnerable due to continued concerns about environmental, social and governance (ESG) risks. The COVID-19 pandemic also disrupted the world’s supply chain by closing borders and regional ports to non-essential exports. On the processing side, a 2019 OECD report states that China has refined 80% of the cobalt mined worldwide.

Korean battery companies are keen to develop alternative supply methods as global demand for cobalt increases and competition with Chinese battery companies such as CATL and BYD intensifies. Many Korean companies are looking for strategic partnerships, offering opportunities for key Australian mineral producers.

POSCO’s Australian Investment Strategy

POSCO, South Korea’s largest steel maker, is an early move in South Korea’s efforts to secure a stable supply chain of EV battery minerals through strategic investment in Australian mining projects.

POSCO is building both anode and cathode battery value chains, encouraging further investment across graphite, nickel, cobalt and lithium projects. POSCO is a supplier of LG Energy Solution, Samsung SDI and SK Innovation.

POSCO’s recent investment activities in Australia include:

  • In April 2021, POSCO announced that it would establish POSCO Lithium Solutions, a joint venture with Pilbara Minerals. The South Korean-based joint venture will invest approximately $ 1 billion to build a lithium hydroxide plant in Gwagyang.
  • In May 2021, POSCO invested A $ 320 million in a 30% stake in Ravensthorpe Nickel Operation, an Australian nickel mining company in Western Australia. Under a long-term off-take agreement, POSCO will purchase 7,500 tonnes of nickel as a mixed hydroxide precipitate, a key component in the production of cathode materials for EV batteries, starting in 2024.

POSCO seeks to expand its long-term strategic partnership between nickel sulphate and cathode precursors to boost lithium-ion battery production.

LG Australia Investment Strategy

In June 2021, LG Chem’s subsidiary LG Energy Solution invested 12 billion won (A $ 14.2 million) in a 7.5% stake in Queensland Pacific Metals (QPM), an Australian-based smelter. .. This will strengthen LG’s supply of major battery materials such as nickel and cobalt. Under a long-term purchase agreement, LG Energy Solution will receive 7,000 tonnes of nickel and 700 tonnes of cobalt each year since 2023.

LG Energy Solution also announced plans to produce high nickel NCMA batteries for next-generation EVs. The higher the proportion of nickel used in the battery, the stronger and more cost effective the battery will be.

“With the rapid growth of the EV battery market, securing key raw materials is becoming one of the most important sources of competitiveness,” said Kim Myung-hwan, president and chief procurement officer of LG Energy Solution. Stated. This confirms the company’s goal of securing a short-term supply chain for core battery materials.

Australia’s Trade Promotion Agency’s support for key Australian mineral producers

The Australian Trade Promotion Agency is helping key Australian mineral companies pursue opportunities in South Korea. This includes encouraging South Korean-based investment in Australian mining projects.

For more information on supply opportunities to South Korea, please contact:

  • Ron Green, Austrade Trade Commissioner
  • Yunjin Park, Austrade, Critical Minerals, Investment Business Development Manager
  • Jackie Sarrow, Senior Manager, Resources and Energy, Austrade, Australia.

¹Korea’s Ministry of Trade, Industry and Energy, K-battery set an export record for the fifth consecutive year in January 2021 and accessed in June 2021 (Korean only)



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Insights-Navigating Malaysia’s Halal Market

Insights-Australia’s retail and commerce technology manufacturing …


Retailers around the world are looking for new solutions to build stronger customer relationships and increase market share in the highly competitive sector. In this insight, Jessica Richman, Investment Director of the Australian Trade Promotion Agency in San Francisco, describes two areas where Australia excels and Australian technology companies that are pioneers in those areas.

Leader in retail and commerce technology

The development of retail and commercial technology is Australia’s fast-growing capacity. I believe Australian companies are leaders in two areas: retail and commerce technology.

  1. Technology that helps companies understand their customers and assortments.
  2. A tool that helps businesses leverage the crossroads of creators, content, and commerce.

Technology to understand customers

Lexer We are an industry leader in technology that helps retailers understand their customers and assortments. This is a customer data platform that raised US $ 25.5 million in February 2021.

Brands use Lexer to increase incremental sales, including sales to existing and new customers. The platform helps retailers understand key activities such as shopping patterns between different groups of visitors, the customers most likely to buy in the future, and the marketing strategies that generate the most sales.

Another tool in the fight to understand customers CapicheAn AI-powered text analysis software platform that analyzes large amounts of text generated from customer and employee survey responses.

Kapiche deepens customer understanding for clients such as American Express, Target and Nissan by helping retailers better understand contextual insights. This leads to actionable insights that customers can use to grow and optimize their business.

Technology to understand your product

It’s another thing about understanding your customers and understanding your products. Two Australian companies that excel in the area of ​​products they know are Style Arcade and Hivery.

Style arcade Through analytics and scope planning software, it helps companies complete their product offerings. The company’s tools allow retailers to visualize, automate, and collaborate on their product assortment in real time. With these tools, retailers can leverage smart on-demand insights to achieve revenue and profit growth.

Hivery, A rapidly expanding company in North America, offers categorical management analytics solutions. Hivery incorporates artificial intelligence, operations research and design into its solutions, specializing in vending machines, trade promotion and category management. Hivery is currently working with retailers such as Wal-Mart and CPG companies such as Coca-Cola.

To conclude this area QSIC, Provides a unique omni-channel solution. The company offers commercial streaming services and, more importantly, enables intelligent in-store connectivity. This includes the ability to automatically adjust the volume level for each speaker according to real-time traffic and conditions. Users can also curate content (such as advertising) by targeting customers moving through the space.

Merge content and commerce

Now that you understand your customers and your products, you need technology that helps you create beautiful, meaningful, contextual experiences that blend content and commerce.

Leading the charge With cart, A company that recently raised US $ 10 million. Carted’s technology addresses you wherever you are. As the line between content and commerce continues to blur, Carted makes commerce seamless by connecting developers and platforms to millions of sellers and billions of products with a single API.

Immediately behind Carted is Link treeRaised US $ 45 million in March. Linktree is a social media company that provides a platform that makes it easier for users to find and manage their online content. The company’s technology is used for biolinks by celebrities such as Shopify, Facebook, TikTok, YSL, HBO, Major League Baseball, Jonathan Van Ness, Jamie Oliver and Farrell.

Canva: Serving creators, content and commerce

Another Australian player sitting at an important crossroads of creators, content and commerce Canva.. As more and more people fall into creator buckets, Canva offers toolkits to easily create compelling content and websites, with millions of people around the world creating and earning online IDs. We will help you to become a member. Think of Canva as providing the picks and shovels needed for the creator’s economy.

Canva is also becoming an even bigger player in terms of e-commerce in general. Images and videos are becoming essential to drive click-through and conversion through retailers’ websites as well as their social channels. Canva’s templated solutions and products streamline content design and enable retailers to win highlights and money.

Canva’s technology enhances the personalized photo gift experience for businesses such as: Kmart With australia Sam’s club In the United States.The company is also behind both design-to-print solutions Office depot And FedEx Office, This can play a big role in creating signboards for local retailers.

Australian tech companies are transforming traditional commerce capabilities by creating tools that rewrite the rules of the content-driven creator economy. We look forward to seeing Australian technology continue to change the world.

Austrade: Here

Contact the Australian Trade Promotion Agency For more information on Australia’s retail technology sector.



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Insights-Navigating Malaysia’s Halal Market

Successful virtual study fairs in Japan, South Korea and Mongolia …


International education teams in Japan, South Korea, Mongolia and Hong Kong successfully held their first joint study Australia Virtual Fair on May 22nd. The team has created an event report that captures the student recruitment strategies developed during the event.

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Insights-Navigating Malaysia’s Halal Market

Successful virtual study fairs in Japan, South Korea and Mongolia …


International education teams in Japan, South Korea, Mongolia and Hong Kong successfully held their first joint study Australia Virtual Fair on May 22nd. The team has created an event report that captures the student recruitment strategies developed during the event.

Subscribe to Market Information Package (MIP)

You need a MIP subscription to access this content.

MIP provides opportunities, market insights and data to support Australia’s international education and training sector.

Apply now

Find out Details of MIP, qualifications and fees

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Insights-Navigating Malaysia’s Halal Market

Russia and Thailand will temporarily ban the import of …


Russia and Thailand have temporarily banned the import of raw cattle, buffalo and their products due to the spread of the Lumpy skin disease virus.

Temporary ban in Thailand and Russia

Detection of exotic animal diseases such as Lumpy skin disease virus (LSDV) can have substantial trade implications for newly infected countries. Countries may impose trade bans or additional requirements on goods to protect herds from LSDV.

According to the Agreement on the Application of Sanitary and Phytosanitary (SPS) from the World Trade Organization, Thailand temporarily banned the import of cattle and buffalo products from Myanmar due to the spread of LSDV in May 2021.

Similarly, Russia temporarily banned the import of cattle and cattle products from Thailand, Sri Lanka and Vietnam in April and May 2021.

Figure 1 shows the geographical representation of these SPS notices and the LSDV notices to the World Organization for Animal Health (OIE) since January 2021.

Other than the SPS Notice, media outlets report that countries such as Malaysia, Laos and Cambodia have restricted cattle movements to reduce the spread of LSDV. This can disrupt the trading of raw cattle, buffalo, and their products in the Asia Pacific region.

Figure 1: SPS notifications with LSDV spreads since January 2021

What is Lumpy Skin Disease Virus?

LSDV is a viral disease that affects livestock and buffalo. It spreads primarily by biting insects, but can also spread by direct contact between animals. According to OIE, LSDV does not infect humans.

LSDV can cause significant financial losses on affected farms. Up to 40% of infected cattle can die during an outbreak. Infected cows are also significantly less productive due to loss of condition, reduced milk yield, miscarriage, infertility and skin damage.

LSDV was first reported in August 2019 in the Asia-Pacific region of northwestern China, Bangladesh and India. Since then, it has been reported in Taiwan, Nepal, Bhutan, Vietnam, Myanmar, Hong Kong, Sri Lanka, Malaysia and Thailand.

Australia is free from LSDV.

What should exporters do

Australia’s LSDV Free Status means that trade restrictions designed to prevent the spread of LSDV should not apply to the export of Australian raw cattle, buffalo and their products. This could increase demand for Australian produce as the markets traditionally supplied by LSDV-affected countries seek alternative suppliers.

Exporters are encouraged to monitor the changing movements of LSDV-affected commodities throughout the Asia Pacific region. Australian animal health may offer the opportunity to trade in these markets.

resource

For additional information on the outbreak of LSDV in the Asia Pacific region, Information system of the World Organization for Animal Health..

A Qualitative risk assessment Conducted in 2020 by the Food and Agriculture Organization of the United Nations to identify potential routes for LSDV across South, East and Southeast Asia.

This article is based on information provided by the Australian Government’s network of agricultural counselors. For additional information about the Agricultural Counselor Network, including contact details, Ministry of Agriculture, Forestry and Environment website..



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