PREVIEW HALAL TRAINING PROGRAMME (A Human Capital Development Programme) By: Dr. Noriah Ramli

1. PREVIEW HALAL TRAINING PROGRAMME (A Human Capital Development Programme) By: Dr. Noriah Ramli Secretary, Halal Industry Research Centre, International Islamic University Malaysia NATIONAL HALAL FORUM-2007, ORGANISED BY HDC, MATRADE HALL, KUALA LUMPUR

2. ISLAM has the second largest number of followers in the world and ~1 in 5 of the world’s population are Muslims. Year 2000 CE Muslims 20% of world pop. Muslims – Annual Growth Rate: 2.9% - (Britannica) Year 2025 CE Muslims 33% of world pop.

3. MUSLIM POPULATION:ASIA 69.1% AFRICA: 27.4% EUROPE: 2.8% N. AMERICA: 0.5% OTHERS 0.2% Muslims form a single nation (ummah) by virtue of their belief and religion of Islam Halal-important and integral part of Islamic life. God given standard for Muslims to live by Halal logo - become a branding in advertising foods for Muslim consumption

4. THE IMPORTANCE OF HALAL & HARAM FOR MUSLIMS “Eat and drink of that which God has provided and act not corruptly, making mischief in the world” (Al-Quran 2:60) “O mankind! Eat of what is lawful and good on earth and follow not the footsteps of the devil” (Al-Quran 2:168) “O you who believe! Forbid not the good things which God has made lawful for you and exceed not the limits. Surely God loves not those who exceed the limits. And eat of the lawful and good that has God given you, and keep your duty to God in whom you believe” (Al-Quran 5:87-88)

5. THE IMPORTANCE OF HALAL & HARAM FOR MUSLIMS (STATEMENTS OF THE PROPHET MOHAMMAD pbuh) Those who consume Halal, follow the tradition of the prophet and do not harm others will go to paradise. (Tirmizi) Many people put a lot of effort in worship of Allah and then spread their hands saying, “O Allah, please accept our supplication.” But if their eating is Haram, their drinking is Haram, their clothing is Haram, how would then their supplication be accepted? (Muslim and Tirmizi) I swear by Allah in whose hands is my life. When a eats a tiny piece of an item which is Haram, none of his deeds are accepted by Allah for forty days. When the flesh of the body is built from Haram then his body Only deserves the Hell Fire. (Muslim)

6. Excerpts from recent speeches by the Hon. Prime Minister, Dato’ Seri Abdullah Haji Ahmad Badawi on Halal Industry:

7. THRUST 1: TO MOVE THE ECONOMY UP THE VALUE CHAIN   “The Government will continue to promote the transition to higher value added activities in three main economic sectors, the first being manufacturing; second, services; and third, agriculture. New sources of growth in these sectors will be identified and promoted to generate additional income and to develop new sources of economic wealth.”  Enhancing value added in manufacturing, services & agriculture  “To leverage on Malaysia’s advantages in the halal sector, particularly in terms of certification and logo recognition, the Plan will drive the sector’s growth in making Malaysia an international hub for halal products and services. The Halal Industry Development Board will be established to develop this industry in a holistic and orderly manner.”  Quotes from the Hon. Prime Minister, Dato’ Seri Abdullah Haji Ahmad Badawi, 9th MP Speech:

8. THRUST 2: ENHANCING THE NATIONAL CAPACITY FOR KNOWLEDGE AND INNOVATION AND NURTURING CITIZENS WITH “FIRST CLASS MENTALITY”  “The most precious assets of a nation are its people. The development of human capital, the upgrading of the mentality and intellectual capacity of a nation is one of the biggest challenges under the Ninth Malaysia Plan. If we wish to become a knowledge-based economy, if we wish to be a developed country and maintain that developed status, the development of human capital must be a priority. In the context of globalisation, high quality human capital has become a necessity, not merely a luxury. ” Quotes from the Hon. Prime Minister, Dato’ Seri Abdullah Haji Ahmad Badawi, 9th MP Speech:

9. PROMOTING HALAL INDUSTRY TO THE GLOBAL LEVEL “Given Malaysia’s potential to spearhead and further promote the global halal industry, the Halal Industry Development Corporation (HDC) will be established under the Prime Minister’s Department, with a launching grant of RM25 million. This Corporation will coordinate and ensure the integrated and comprehensive development of the Industry. It will also coordinate efforts to review standards, develop the local industry, promote Malaysian halal products and services in international markets, as well as support investments in the domestic halal sector. The Malaysian International Halal Showcase (MIHAS) and The World Halal Forum 2006, which received a tremendous response, will be an annual event.” A quote from the Hon. Prime Minister, Dato’ Seri Abdullah Haji Ahmad Badawi, 2007 Budget Speech

10. PROMOTING HALAL INDUSTRY TO THE GLOBAL LEVEL “A sum of RM50 million is allocated to set up halal parks in Pasir Mas - Kelantan, Gambang - Pahang, Chendering - Terengganu and Padang Besar - Perlis. The SME Bank is also allocated a sum of RM20 million to finance entrepreneurs to develop these products” A quote from the Hon. Prime Minister, Dato’ Seri Abdullah Haji Ahmad Badawi, 2007 Budget Speech

11. From our observation, it is apparent form the above aspirations spelled out by the Hon. Prime Minister with regards to Halal Industry for the 9th MP, and the role of HDC as outlined in the 2007 budget speech that: • there is an absence or lack of emphasis on the importance of Human Capital Development related to Halal Industry in HDC’s role, – in particular, comprehensive halal training programme(s) – to produce competent halal personnel • establishment of credible and dedicated centres with facilities set-up for research, testing and monitoring of halal products and accessories

12. Halal IndustryResearchCentre International Islamic University Malaysia • The International Islamic University Malaysia (IIUM), with its academic and research strength as well as conducive Islamic environment has established a special centre dedicated to Halal industry: • Halal Industry Research Centre. • IIUM Halal Industry Research Centre will assist Malaysia, as well as other interested organizations or countries, to become prominent Halal Industry players in terms of providing: • Human Capital Development • Product Testing and Monitoring • R&D Solutions for Innovative Halal Products and • Services • Consultancy Services

13. IIUM Halal Industry Research Centre will engage in the following activities: • providing courses and supervising research • on Halal related areas. • providing consultancy services to the halal industry. • organizing seminars (and conferences). • collaboration with local and international centres of • excellence in the same field. • collaboration with the private sectors locally and • internationally to create the comprehensive concept • of Halal in various activities of economic importance.

14. In short, IIUM Halal Industry Research Centre aims: • To make IIUM a reference centre on Halal related • matters. • To promote research and development in innovative • Halal products and services. • To develop and nurture a pool of specialists in the field • of Halal products, management and monitoring. • To foster and increased understanding of • contemporary Halal products and services through • seminars and conferences. • To foster a closer relationship through smart • partnership between the Halal industry and IIUM, • locally and globally.

15. THE (mis)UNDERSTANDING OF HALAL IN FOOD INDUSTRY • To Majority of Muslims • religious command on the ways of eating • To Non-Muslims • eating without pork or alcohol • To Industries • non-pork, non-alcohol products for Muslims that when labelled presented as such to the market shall provide economic gain • According to the Dictionary • meat slaughtered according to Muslim Laws

16. Contrary to general perception, • Halal is for everybody. • (It promotes the well-being of mankind, irrespective of religious and Geographical boundaries.) • to Muslims, it is a prescription from God meant for their physical and spiritual well-being • for non-Muslims it means safe, wholesome products for the general well-being • for the industry, the production of Halal food is not only beneficial to Muslims, but also to non-Muslim food producers, by means of an increased market acceptance of their products. Approved items Hygienic Ethical behaviour Cleanliness & Efficiency ‘Wholesome’ & ‘Beneficial’ Halal

17. WHAT ARE THE OPPORTUNITIES? • ~ 1.4 billion Muslims are excellent market for halal products - business • opportunity • Halal products and services are acceptable to non-Muslims • Rapid development and interest in halal products and services in the • world • Products with halal logo synonymous with quality products • Malaysia’s multi-ethnic and multi-religious society enable diversified • products • Malaysia is highly respected by Muslim countries and Muslim communities • around the world • Cost effective production/manufacturing of halal products using • available raw materials in the country, region/neighbouring countries

18. Cases in Malaysia JAKIM mengesan 27 kes kesalahan yang melibatkan penyalahgunaan logo Halal jabatan itu di seluruh negara sepanjang enam bulan pertama tahun 2004 17 Julai 2004 (Utusan Malaysia)

19. Cases in Malaysia 2005/2006 • ”Ayam dan anak babi disimpan di dalam peti • sejuk bersama'’ • ”Tempat pemprosesan ayam kotor'’ • ”Ayam mati disebabkan aliran elektrik'’ • ”Ayam disembelih dua kali'’ • ”Ternakan ikan air tawar diberi makanan • usus babi yang direbus'’

20. POSSIBLE CONSEQUENCE If not rectified, may tarnish the nation‘s/organization‘s reputation and tremendously effecting the nation/organization Halal products and services worldwide! WHY IT HAPPENED? Upon close analysis, the likely cause for these recurring distasteful events are: Lack or insufficient competent & responsible personnel Industry: absent or defective internal control and monitoring mechanism/system on Halal Authority: cannot implement effective processing for Halal certification & monitoring

21. Halal Training Programme Objective • To produce trained, competent, and responsible personnel that: • will plan, direct and supervise halalness/halal assurance • division for the complete implementation of halal concept in the • organization • can execute halal-related certification and monitoring • processes more efficiently “Allah likes that when someone does anything, it must be done in an excellent manner”. (Bukhari & Muslim)

22. WHO SHOULD ATTEND? • executives in food production (raw, semi-finished and finished • products), nutraceutical, pharmaceuticals, cosmetics, • accessories, and services • operators and supervisors in restaurant, hypermarket and • supermarket • authorised personnel involved in halal products and services: • e.g. certification and monitoring; enforcement etc.. • graduates, unemployed graduates and soon to be graduates

23. SUGGESTED MODULES

24. BENEFITS • knowledgable employer, manager, etc..executives, managers, supervisors will be key resource persons on halal in the company/plant • continuous and/or retraining of authorised personnel to be (or remain) competent • strengthening an organisation‘s or a country‘s position to be a key global halal producer and exporter • generate new opportunity for business and trades in halal products and services • better employability for new graduates • increase revenue for company and country, and increase income for the population

26. PERSPECTIVE • HTP is the only one of its kind (to date) - comprehensive, intensive and following the aspiration of Muslims. • HTP can be exported and/or franchise to other parts of the globe for countries wishing to conduct trade/business with Muslims around the world • Human Capital Development – IIUM significant contribution to OIC, the Muslim world, and Halal Industry. • IIUM has the technical expertise in the development and implementation of HTP (human resource, excellent global network among staff and students, excellent teaching and learning facilities, etc..)

27. Halal IndustryResearchCentre International Islamic University Malaysia (IIUM-HIRCen) Your partner in: • Human Capital Development • Product Testing and Monitoring • Consultancy Services • R&D Solutions for Innovative Halal Products & Services I I U M Halal HIRCen Making individuals & organizations more competent for the Halal industry

28. The Exporters Club HALAL PRODUCTS & SERVICES • HALAL Products includes both Food & Non Food • Items. • HALAL Food is not only Meat and Poultry but • also other Food Items such as: • Confectionery • Canned & Frozen Food • Bakery Products • Organic Food • Spices • Herbal Supplements • Beverages etc

29. The Exporters Club HALAL PRODUCTS & SERVICES • HALAL Products also includes Non-Food • products such as: • Cosmetics • Toiletries • Beauty products • Pharmaceuticals • Leather products • Perfumes etc

30. The Exporters Club HALAL PRODUCTS & SERVICES • Besides merchandise, HALAL Services • are also important components of the • HALAL market: • Islamic Banking • Securities & Bonds • Travel • Takaful • Logistics & Shipping • Certification etc

31. The Exporters Club HALAL STANDARDS & CERTIFICATION • HALAL Standards • No Single Standard in the world • World HALAL Council is working on a Single Standard • National HALAL Development Corp of Malaysia • MS 1500 – Dept of Standard of Malaysia • Individual Country Standards • HALAL Certification • World HALAL Council • IFANCA worldwide • Certification Bodies – ASEAN; USA & Canada; UK, France, Netherlands; South Africa; Argentina & Brazil; Australia & New Zealand; Other Countries

32. The Exporters Club HALAL STANDARDS & CERTIFICATION • - • Future of HALAL Certification • More coordinated • Single Certification with a common logo • Almost all countries will have a certification body in their country • HALAL to emerge as an ISO-compatible standard with independent, transparent industry-compatible auditing procedures, that will in turn enable more HALAL certified products to fill the shelves to meet the global demand • As the industry grows, it will require more comprehensive standards, to cover all of the stages from the farm to the fork.

33. The Exporters Club MARKET TREND • HALAL DISTRIBUTION – CONTD • More and more Supermarkets and Hypermarkets are adding HALAL Sections or Shelves to attract ethnic Muslim population in non-Muslim countries egs. TESCO in UK and Carrefour & AUCHAN in France • There are also moves to create HALAL supermarkets in various countries to market HALAL products

34. The Exporters Club HALAL PROMOTION • PROMOTION OF HALAL PRODUCTS & SERVICES • Many initiatives have been taken by governments and the private • Sectors • HALAL Exhibitions - Kuala Lumpur, Dubai, Jakarta, Brunei and Singapore • More Shows in 2007 in India, UK, USA, Jordan, Bahrain, Australia and South Africa • The recently held World HALAL Forum in Kuala Lumpur is another initiative to promote the HALAL Trade • International HALAL conferences and Seminars are also being held worldwide

35. The Exporters Club HALAL PROMOTION • PROMOTION OF HALAL PRODUCTS & SERVICES – • CONTD • There are also many publications on HALAL that are focused on promoting the HALAL trade. • HALAL Journal, Malaysia • World HALAL Directory • Australian HALAL Quarterly • EuroHALAL Magazine • HALAL Lifestyle, Philippines etc. • These publications aim to create greater awareness on the HALAL • requirements for global trading

36. The Exporters Club LIMITATIONS & CHALLENGES • LIMITATIONS & CHALLENGES • Currently there is no single standard that is recognised worldwide. • There are also numerous Certification bodies worldwide, of which their recognitions vary from country to country. The World HALAL Council which monitors the various Certification bodies has not been able to come up with a single standard for its members. • Lack of data on HALAL Trade - There is no proper classification of HALAL products under the Customs code and as such data on actual trade are difficult to obtain • Most Muslim countries do not impose Halal Certificate as a compulsory requirement

37. The Exporters Club MARKET OPPORTUNITIES • MARKET OPPORTUNITIES • Estimate of 1.7 billion Muslim consumers of HALAL products and services. The number is increasing rapidly • Increased awareness – more countries are requesting for HALAL certified products and demand from non-Muslims are also increasing • Range of HALAL products expanding leading to a bigger market • More and more Hypermarkets and Supermarkets are setting up HALAL sections

38. The Exporters Club MARKET OPPORTUNITIES • MARKET OPPORTUNITIES - CONTD • Opportunities in HALAL Services such as Certifications, Branding, Packaging, Logistics & Shipping, Travel, Fashion, Islamic Finance and Takaful etc • Opportunities in other HALAL related activities – Events, Conferences, Science and Research, Publications, HALAL Processing Zones etc

39. MODULE 1 : Basic Knowledge • Duration: 2 days course • - Course 1: General Public • - Course 2: Interested parties • (individual or company that has no halal-related • certificate, but is now interested in halal, becoming a • new applicant) • Implementation in July 2007 Due dates: IIUM Halal Industry Res. Ctr. : Wed, 23 May 2007 HDC: Fri, 25 May 2007 • Content of submission. • Proposed module with details of topics outlined in course content • Costing • Expertise & CVs • Co. profile • Track Record & Achievements

40. MODULE 2 : Intermediate & Operators • In-house OTJ Training, Duration: 3 days to 1 week • - Course 1: Managers • - Course 2: Halal Executives • - Course 3: Supervisors • - Course 4: Production Operators • Implementation in September 2007 Due dates: IIUM Halal Industry Res. Ctr. : TBD HDC: TBD • Content of submission. • Proposed module with details of topics outlined in course content • Costing • Expertise & CVs • Co. profile • Track Record & Achievements

41. MODULE 3 : Professional Courses • Duration: Vary • - Course 1: Trainers • - Course 2: Auditors • 2a. Adequacy • 2b. Compliance • 2c. Lead • - Course 3: Consultant • Implementation in early 2008 • mandatory Exams • prerequisites Due dates: IIUM Halal Industry Res. Ctr. : TBD HDC: TBD • Content of submission. • Proposed module with details of topics outlined in course content • Sample Questions (and perhaps model answers) • Costing • Expertise & CVs • Co. profile • Track Record & Achievements