The Halal Times

Global Halal, Islamic Finance News At Your Fingertips

Main navigation

Southeast Asia

Bursa Malaysia Adds Inter-Pacific to Islamic-Compliant List

By Leave a Comment

KUALA LUMPUR (June 20): Bursa Malaysia Bhd has added Inter-Pacific Securities Sdn Bhd to the bourse operator and regulator’s Islamic participating organisations list to further grow the Islamic capital market.

Bursa Malaysia said in a statement today that Islamic stockbroking services played an important role, under which clients’ funds were placed in Shariah-compliant accounts.

“With the latest addition, investors will have a wider choice of Islamic POs (participating organisations) to represent them, which is in line with the priority of Bursa Malaysia-i, to provide a conducive marketplace for the Shariah investing community and to spur the growth and vibrancy of the Islamic capital market domestically and regionally,” Bursa Malaysia chief executive officer Datuk Seri Tajuddin Atan said in the statement.

According to Bursa Malaysia’s statement, Inter-Pacific is the 12th stockbroking firm under Bursa Malaysia’s Islamic participating organisations list.

The list includes Affin Hwang Investment Bank Bhd, AmInvestment Bank Bhd, BIMB Securities Sdn Bhd, CIMB Investment Bank Bhd, Hong Leong Investment Bank, Jupiter Securities Sdn Bhd, Kenanga Investment Bank Bhd, Malacca Securities Sdn Bhd, Maybank Investment Bank Bhd, RHB Investment Bank Bhd and TA Securities Holdings Bhd.

Originally published on www.theedgemarkets.com

 

Mintel: 13% of Asia-Pacific Product Launches Carry Halal Claim

By Leave a Comment

With food accounting for nearly two-thirds of business in the global halal economy, there has been a flurry of new product activity in Asia-Pacific.

According to market intelligence agency Mintel, 13% of all product launches in the region have carried the “halal” claim since 2012, with Indonesia, Malaysia and Thailand the top destinations in this arena.

Among the most prominent recent Islam-observant product launches tracked by Mintel has been Nissin’s Masuya-brand spicy seafood-flavoured Gekikara Ramen instant noodle, which has gone on sale in Indonesia. The extra-hot instant noodle is halal-certified and retails in a large portion 120g pack.

Also launched in Indonesia, the world’s biggest Muslim-majority country which seen a quarter of all Asia-Pacific new-product activity over the last five years, has been Family Rice’s Nasi Liwet fragrance rice. The halal certified product retails in a 500g pack that serves six portions.
In India, which is home to 172m Muslims according to the last census, Global Gourmet’s Bombay Bites jalapeño and cheese samosa was a notable halal launch. The vegetarian pastry triangles feature a green pepper and cheese filling, are halal certified, and retail in a 240g pack.
 Thailand, where 15% of new product launches have been halal in the last five years, has seen the introduction of Kang Goong by Okusno, a Japanese curry-flavoured shrimp chins snack. This claims to be high in calcium and low in sodium and chitosan. The halal certified product retails in a 17g pack.
Also a notable arrival, Jin Lv Cheng Ai De Lai Si’s ice cream-flavoured yogurt’s arrival in China claims to be made using milk sourced from its own pasture, and is halal certified. This natural product retails in a 120g pack. Though only 1.6% of its population is Muslim, China now accounts for 9% of all Asia-Pacific halal launches, according to Mintel.
Originally published on www.foodnavigator-asia.com

Push for Mergers Among Islamic Banks and Non-Bank Lenders in Malaysia

By Leave a Comment

CONVENTIONAL banks aside, there is a push by industry players for mergers and acquisitions (M&A) to take place in the crowded Islamic banking as well as the non-bank lender space.

There are 16 Islamic banks in Malaysia.

Two are full-fledged standalone banks: Bank Islam (M) Bhd and Bank Muamalat Malaysia Bhd.

Eight more are subsidiaries of conventional banks, while the remaining are foreign banks.

 Non-bank lenders include entities such as the Government-owned Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat), Bank Simpanan Malaysia, Bank Pertanian Malaysia Bhd and Malaysia Building Society Bhd (MBSB).

“There is no need for the spaces to be as fragmented as they are now as the country moves up the value chain,” says an analyst.

Having said that, he points out that some of the banks really need to improve their non-performing loans and balance sheets.

“Efficiency and productivity have to permeate across the entire ecosystem, be it conventional or otherwise,” he adds.

M&A activities in this particular sectors of the banking industry will also open up opportunities for major institutions to see how they can participate in them.

It was reported recently that Permodalan Nasional Bhd (PNB) which is the country’s largest fund management company, is believed to be open to the idea of acquiring Bank Rakyat in a move which could lead to value creation between Bank Rakyat and PNB-controlled companies.

Besides the MIDF Group which is the investment banking and asset management arm of PNB, the fund also controls Malayan Banking Bhd (Maybank) – the largest bank in the country that also has a regional presence.

PNB has a 60% stake in Malaysia’s only national reinsurer, MNRB Holdings Bhd which is grossly under-valued

Following the effects of the Asian financial crisis in the late 1990s, Bank Negara had called for a consolidation of the country’s then almost 60 financial institutions of which over 20 were local commercial banks.

Today, the country has eight local banking groups.

Nevertheless, while consolidation has happened in the conventional banking industry, new licences had been issued within the Islamic banking space to more Islamic banks like Bank Muamalat, Kuwait Finance House, Asian Finance Bank (AFB) and Al Rajhi Bank, resulting in the overcrowded situation.

Of the banks, AFB however is currently in talks with MBSB for a proposed merger.

Meanwhile, PT Bank Mandiri Tbk, Indonesia’s largest bank by assets, is soon expected to start operating here with full banking rights.

Bank Mandiri currently operates in Malaysia under the licence of remittance office.

 Originally published on www.thestar.com.my

Brunei Ranked 12th in Global Islamic Economy Indicator

By Leave a Comment

BRUNEI Darussalam has been ranked 12th in the latest Global Islamic Economy Indicator (GIEI), prepared by the answer company of Thomson Reuters.

Brunei made it to the top 15 list for the first time, moving up five spots replacing Egypt. The Sultanate had a big jump in the Halal Travel ranking (10 spots) and strong performance in Halal Food Ecosystem Development.

Its Halal certification-led Halal food product lines have made strong entrance in the UK market and Brunei Halal is getting due recognition as a result. Brunei also continues to benefit from being in the vicinity of Indonesia and Malaysia, two of the largest Halal sensitive Muslim travel markets, the GIEI report said.

Brunei is in top 10 in Halal Pharmaceuticals and Cosmetics and also triumphant in Modest Fashion category where the Sultanate ranked in the 12th place, Halal Travel (22nd) and Islamic Finance (27th).

Malaysia topped the ranking with the score of 121 followed by the United Arab Emirates (UAE) and Bahrain. Saudi Arabia, Oman and Pakistan were respectively positioned at fourth, fifth and sixth followed by Kuwait, Qatar, Jordan, and Indonesia.

Singapore held 11th position as the only country that is not a member of Organisation of Islamic Cooperation, while Brunei, Sudan and Iran were put at 12th, 13th and 14th place.

The indicator is prepared to show the current health and development of the Islamic economy ecosystem. The components of the ecosystem are Halal Food, Islamic Finance, Halal Travel, Modest Fashion, Halal Media and Recreation, and Halal Pharmaceuticals and Cosmetics.

The indicator does not focus on the overall size and growth trajectory of a country across the Islamic economy sectors; instead it evaluated them on relative strengths of the ecosystem they have to support the development of the Islamic economy.

Dubai Islamic Economy Development Centre (DIEDC), in partnership with Thomson Reuters and in collaboration with the Dinar Standard, a growth strategy research and advisory firm based in New York, introduced the Global Islamic Economy Indicator in 2014.

Originally published on www.borneobulletin.com.bn

Islamic Banks Expand, But ‘Double-Digit Growth Spree May be Over’

By Leave a Comment

Islamic banks have continued to expand their balance sheets and capital buffers, but the era of double-digit growth rates could be coming to an end while asset quality concerns creep up, an industry oversight body said recently.
Islamic finance, which has its core markets in the Middle East and Southeast Asia, follows religious principles that forbid interest and shun outright speculation, and as such is seen as an alternative to interest-based banking.
That proposition is underpinned by claims that Islamic finance can weather, if not avoid, the kind of financial turmoil that has embroiled conventional banking in recent years.
Islamic banks have indeed expanded but uncertainties in the global economy and political disquiet have taken their toll, the Islamic Financial Services Board (IFSB) said in its fifth financial stability report. Although it was weathered those challenges, the industry has moved away from double-digit growth rates enjoyed in previous years, the IFSB’s acting secretary-general Zahid ur Rehman Khokher said.
“This slowdown underscores the importance, more than ever, of strengthening the resilience of the Islamic financial system and addressing internal weaknesses and vulnerabilities.”
An IFSB survey of 170 Islamic banks and 83 “Islamic windows” in conventional banks across 17 countries found their combined assets grew by 10.9% to reach $1.4tn at the end of September 2016.
Islamic banks extended $939bn in financing during that same period, up from $826bn a year earlier, while their capital adequacy ratios remained above regulatory requirements.
Despite this, the asset quality of Islamic banks is deteriorating: Their net non-performing financing to capital ratio increased sharply to 25.6% at the end of September, up from 16.1% a year earlier.
In addition, the short-term liquidity of Islamic banks continues to be an area of concern, the IFSB said.
The IFSB also released findings of a study of stress-testing of Islamic banks conducted earlier this year.
The study found important links between four macroeconomic variables – namely interest rates, unemployment, real estate prices and oil prices – and the non-performing financing ratios, deposits, financing and assets of Islamic banks.
There are some bright spots, with the wider Islamic finance industry growing to $1.9tn in assets, with strong gains in sectors including Islamic insurance or takaful.
Takaful remains a small segment of the industry but contributions have grown by 12%, compared to 4% for conventional insurers, the IFSB said.
Scale remains a challenge for takaful firms, although the IFSB said it expected consolidation efforts to continue in the sector.

Originally published on www.gulf-times.com

Malaysian Incubator Signs Deal to Boost China’s Halal Exports

By Leave a Comment

A Malaysian technology and energy incubator has agreed to collaborate with companies in Hong Kong and China to produce and market halal-certified foods internationally.

In a stock market filing, Asia Bioenergy Technologies said its Asiabio Capital subsidiary had signed a memorandum of understanding with YRZC International, Shan Xi Hong Hui Food (SXHHF) and Shan Dong Wang Jia Yuan Zi Halal Food Brewing (SDWJYXHFB) last week to “establish collaboration and explore opportunities to develop, produce and export halal-certified food products to the global marketplace.”

The agreement slots into China’s “One Road One Belt” economic policy, which aims to see 65 countries across Asia, Africa and Europe linked commercially by land and sea—albeit with a halal spin.

“This signifies our intention [to build] physical support and infrastructure for a halal food and product hub in China,” said AsiaBio Capital’s David Chen Kon Fook.

“We have identified YRZC as our exclusive business development agent for such a purpose, and aim to tap into the expansive network via our diverse incubatees,” he added.

One of these, NetX Holdings, recently announced its intention to build a similar e-commerce halal marketplace in Hangzhou, having acquired a controlling stake in China-based Flavours of Malaysia, which markets speciality Malaysian products in the Far East.

Flavours of Malaysia will establish new fulfilment centres in Hangzhou which will “conduct research and development on Chinese national acceptance of Malaysian products and to use the research findings to acclimatise the product to suit the local taste buds,” NetX said in a statement.

 Under the terms of the latest agreement, Asiabio Capital will act as a halal-certified “channeling centre” and regulatory liaison body for product development and quality, while YRZC of Hong Kong, which is involved in a number of diversified fields from television production to brand marketing and promotion, has been appointed as an exclusive business development agent in China.

Together, these companies will take SDWJYXHFB and SXHHF products and apply for Halal-certified licences from the Malaysian halal regulator, Jakim.

SDWJYZHFB, located in Shandong, China, is mainly a halal food brewing company with jujube vinegar as its main product.

Shaanxi Weinan City-based SXHHF, meanwhile, operates in baked goods, sesame seeds, bakery flours and sugar production.

“All parties will carry out research and development on the new product lines which will be integrated with both Chinese Culture and Islamic religious doctrine in order to create a brand which is ‘trusted’ and halal-certified,” he filing said.

  • Originally published on Ewww.foodnavigator-asia.com

Aiming for Muslim Market, Taiwan Encourages Halal Certification

By Leave a Comment

TAIPEI (Taiwan News)— With a growing population of over 200,000 Muslims, more restaurants in Taiwan are applying for halal certification and the food industry is aiming for a larger market in both Taiwan and Southeast Asian countries.

According to the Taiwan External Trade Development Council (TAITRA), the global halal food market is worth US$900 trillion and many companies are hoping to cash in on the booming market.

TAITRA also said that they are currently helping local restaurants, including those who sell signature Taiwanese dishes such as beef noodles and fried chicken fillets, to apply for the halal certification.

The term halal traditionally refers to food and drinks that are permissible by Islamic law. The halal certification is given to products, primarily food, cosmetics and pharmaceutical commodities, produced in ways that fit the standards prescribed in the Koran. They need to be manufactured with practices following Islamic law and have to be free from components that are prohibited.

In addition, TAITRA hopes to create a Muslim-friendly environment in Taiwan. Food chains are encouraged to apply for the certification and supermarkets are adding sections for halal products.

In recent years, companies have started to notice the Muslim population in Taiwan and the potential of halal market is hard to dismiss. The number of companies with halal Certification has reached 714, an increase of more than 200 this year.

Originally published on www.taiwannews.com.tw

Malaysia’s Felda Global Shelves $350 Mln Islamic Bond Issue

By Leave a Comment

KUALA LUMPUR, June 9.An investment holding company of Felda Global Ventures Holdings has shelved plans to sell an Islamic bond in Malaysia, IFRreported on Friday, after investigators raided the parent FGV‘s headquarters following allegations of corruption.

FGV Seri Costa had filed 1.5 billion ringgit ($352 million) sukuk wakalah programme with Malaysia’s securities regulator and sole arranger Maybank was finalising documents for a bond issue, IFR said. The sale is likely to be suspended indefinitely amid uncertainties at the parent firm, IFR added, citing bankers.

FGV was not immediately available for a comment.

The world’s No.3 palm plantation group has begun an internal probe into some transactions at a subsidiary, while FGV’s board suspended its Chief Executive Officer Zakaria Arshad and three others earlier this week.

The CEO has denied wrongdoing and called on the Malaysian Anti-Corruption Commission (MACC) to conduct its own investigation. Officials from MACCspent nearly eight hours at FGV’s headquarters on Thursday, seizing documents and interviewing company officials.

“MACC is currently in the process of reviewing the documents that were seized to collect evidence relating to the investigation before further action is taken,” MACC Deputy Chief Commissioner Azam Baki said in a statement.

“MACC will begin to call witnesses and individuals involved to help with the investigation shortly,” he added.

The investigation focuses on six issues involving FGV, he said, without providing any details.

Turmoil at FGV – whose biggest shareholder is state-owned Federal Land Development Authority – could hurt Prime Minister Najib Razak, who government sources say is expected to call elections later this year.

FGV shareholders, many of them small landowners, form a key vote bank for Najib‘s ruling alliance in battleground states.

Originally published on www.timesofindia.indiatimes.com

AirAsia Female Pilots Get Specially Designed Hijab as Part of Uniform

By Leave a Comment

Malaysia-based budget airline AirAsia has unveiled the latest in crew fashion with a new specially designed hijab for the carrier’s female pilots.

The hijab, which will be worn by female Muslim pilots on board AirAsia and AirAsia X flights, was designed in collaboration with hijab brand Naelofar Hijab.

The airline said the hijab was “specifically tailored to meet their workday needs”.

 Rudy Khaw, AirAsia’s regional head of branding, said the design “complements our female pilots’ look while providing enhanced comfort as they perform their duty.

Neelofa, founder of Naelofar Hijab, said the company had worked with pilots on every aspect of the design, which incorporates stretchable fabric as well as a Naelofar Hijab symbol created with Swarovski crystals. AirAsia currently has 55 female pilots, with 12 of those wearing a hijab.

The airline will also be revamping its hijab designs for ground staff in the near future. AirAsia X flies into Sydney, Melbourne, Perth and the Gold Coast.

Despite more women taking on roles as pilots with airlines, the industry is still largely dominated by men. Estimates from the International Society of Women Airline Pilots say there are about 4000 women pilots worldwide, of about 130,000 – just over 3 per cent.

In March this year Air India marked International Women’s Day by having an all-female crew fly its longest route, from New Delhi to San Francisco by circling the globe, in a Boeing 777.

Last year an all-female crew from Royal Brunei Airlines touched down in Saudi Arabia for the first time – a country where women are forbidden to drive a car.

Originally published on www.traveller.com.au

Non-Halal Chicken Meat Seized in Malaysia

By Leave a Comment

Tawau: Six tonnes of chicken meat from the United States were confiscated from two supermarkets here, Wednesday, for not having the Halal logo – the largest such bust here in an integrated operation led by the Sabah Islamic Religious Affairs Department.Its administration officer here, Abdul Imam Basirun, said the Department of Veterinary and Animal Industry (Dovsai) seized the chicken meat valued at RM34,000 for further action.

“The non-Halal chicken meat was believed imported illegally as it did not go through Dovsai and Customs Department. They were mixed with other goods to avoid detection from the enforcement authorities.

“However, local chicken meat being sold in the market so far has no halal issue as inspections carried out in the chicken slaughter houses revealed no problems,” he said.

In Sibu, Sarawak, last month, several tonnes of chicken meat were also confiscated and buried after it was found that they were imported illegally.

On Tuesday, Jheains removed three advertisement banners displaying breaking of fast and pre-dawn dishes such as buffet Ramadan in eateries, including at a hotel here.

He said action was taken against the eateries and hotel as they do not possess Halal certification when reflecting an impression that the food is halal such as using the word “Buffet Ramdan” or other Islamic words or objects.

Meanwhile, Abdul Imam said two men in 50s and 60s were arrested for not fasting in Chinese restaurants in Kg Jawa and Pasar Tanjung.

The integrated operation was joined by 20 enforcement personnel including 10 Jheains officers and the rest from Dovasai, Tawau Health office, Domestic Trade, Co-operatives and Consumerism Ministry Tawau branch and Tawau Municipal Council (MPT).

He said the operation would last until this Friday (June 9) to monitor on halal aspects by focusing on slaughter houses, logistics premises, premises of selling chickens and beef, and restaurants, including hotels that offer Buffet Ramadan.

Abdul Imam said the operation in Sabah was headed by the Sabah Jheains Principal Assistant Director (Enforcement Division) Abidin Ali Hassan.

He advised traders to always be honest in conducting businesses and never sell essential items like non-halal chicken meat because misleading the consumers can cause legal action to be taken against them and their goods seized by the enforcement authorities.

He also reminded the Muslim consumers to be extra careful when buying essential goods and advised them to refer to Jheains if they ever have any concerns that need to be addressed. – Lagatah Toyos

Originally published on www.dailyexpress.com.my

%d bloggers like this:
Skip to toolbar