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Brunei To Help Maldives Establish Halal Science Lab

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Maldives-meeting-with-brunei-sultanMinister of Foreign Affairs of Maldives, Abdulla Shahid Minister on Saturday requested Brunei to help establish a halal science laboratory in the Maldives.

The minister requested a meeting with his Bruneian counterpart, Dato Seri Setia Haji Erywan bin Pehin Datu Pekerma Jaya Haji Mohd Yusof, during his ongoing official visit to the country.

During the meeting held at the Bruneian foreign ministry, the two diplomats discussed bilateral relations between the two nations, including instituting a ministry-to-ministry level cooperation agreement to reinvigorate cultural and trade ties.

Minister Shahid further explored possibilities for more scholarships to Maldivian students and thanked the government of Brunei for the existing educational opportunities extended to students from the Maldives.  He highlighted that supporting and educating people with special needs is an important priority of the Maldivian administration, as well as the development of the country’s social sector.

The foreign minister also had a meeting with the Sultan of Brunei, Haji Hassanal Bolkiah Mu’izzaddin Waddaulah, during which he thanked the Bruneian leader for the full scholarships on human resource development extended by Brunei to Maldivian students.

Highlighting the shared membership of both nations in the Commonwealth and Organization of Islamic Cooperation (OIC), and common views across many international issues, Minister Shahid expressed confidence for increased cooperation in the multilateral fora and stronger bilateral ties.

Minister Shahid conveyed the best wishes on behalf of President Ibrahim Mohamed Solih, the government and people of Maldives to Brunei, further highlighting Maldives’ keenness to strengthen people-to-people contacts between the two countries.

During his visit, the foreign minister also met with the ministers of education and health of Brunei.

Malaysian Financial Sector has considerable Promise for Expansion

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malaysian-islamic-banking-sectorIn Malaysia, where annual economic growth has averaged just under 5 percent over the past five years, fintech is a part of everyday life. It is rapidly becoming a central part of the country’s financial sector, with considerable promise for expansion, according to new IMF analysis.

With its growing middle class, high mobile phone penetration rates, and strong government support for the digital economy, Malaysia is well situated to take advantage of fintech innovation. From mobile wallets and electronic payments to crowdfunding and “insurtech” (the combination of insurance and technology), Malaysian businesses and consumers appear ready to embrace the technology.

Internet banking in Malaysia has quadrupled in the last decade, topping a 90 percent usage rate in 2018. Mobile banking is also booming, supported by near-universal 4G network coverage, affordable data, and 5G is in the works. It’s no coincidence the World Economic Forum’s 2019 Network Readiness Index ranked Malaysia high among the 139 countries surveyed—ahead of Italy, China, and Chile—and first among countries in emerging and developing Asia.

Where’s the money?

The most commonly used forms of fintech in the country are digital payments and mobile wallets, followed by “insurtech,” lending, digital remittances, blockchain, crowdfunding, electronic Know-Your-Customer processes, and other forms of financial technology.

Developments in Malaysian fintech are altering the country’s financial sector landscape. For example, while fintech products offered by traditional financial institutions expand, the number of physical commercial bank branches is declining, and the number of automated teller machines has fallen over the last two years. Traditional Malaysian banks continue to dominate in deposits, lending, and raising capital while, at the same time, adopting new technologies and either competing or collaborating with new tech startups. As of April 2019, there were close to 200 startups in Malaysia in a range of fintech areas, including payments, lending, and blockchain.

Of course, the rapidly evolving technology—alongside new consumer habits—is not without risk or challenges. Malaysia has been a leader on regulations to ensure that the financial system remains safe amid the possibility of cybersecurity incidents. Well aware that cyberattacks can undercut customer confidence and inflict widespread damage, Malaysian banks and regulators list cybersecurity among their issues of top concern.

Additional challenges to future fintech growth in Malaysia, for both financial institutions and new fintech businesses, include a shortage of talent in key tech areas like data analytics and machine learning, regulatory burdens, and access to funding.

As a leader in Islamic finance, Malaysia has a unique position within Islamic fintech, according to IMF analysis. Islamic bank loan growth in the country expanded by 8.9 percent in 2018, compared to 2.5 percent for conventional banks. While Islamic fintech is still in its infancy in Malaysia, the central bank supports efforts to promote the sector. Islamic financial institutions can benefit from fintech in many of the same ways that conventional finance does. Some fintech tools could be particularly useful in Islamic finance, since improved transparency—a core principle of Islamic finance—could be a result.

Qatari Investment Could Help Philippines Become An Asian Halal Hub

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Investments from Qatar could play a key role in the Philippines’ bid to become Asia’s halal hub, DTI-Trade Promotions Group (TPG) Undersecretary Abdulgani M Macatoman said Sunday.
 
Citing the need for more halal processing facilities in the Philippines, Macatoman said the country could benefit from Qatari investments and expertise, as well as in knowledge transfer and exchange of best practices in the halal sector.
Macatoman also said the Philippine government was working to have all of its halal certifying bodies recognized by Qatar. Of the Philippines’ nine certifying bodies, only one entity is recognized by Qatar, the trade undersecretary pointed out.
 
“But the challenge we are facing is how to enhance the integrity of Filipino products as halal-compliant and we have been able to address this concern…while Qatar recognizes a halal-certifying body in The Philippines, we would like to campaign for the recognition of eight other Philippine halal-certifying agencies in Qatar to expand the reach of Filipino products here,” Macatoman explained, adding that more than 1,000 Filipino halal products could reach the Qatar market.
 
“We have a captured market of more than 240,000 OFWs (overseas Filipino workers) in Qatar. However, there is also a huge number of expatriate communities that also patronize Filipino food products available in stores and major hypermarkets around the country,” he said.
 
In the Middle East, the Philippines is exporting around $800mn, said Macatoman, who also emphasized that the country “is continuously working” to expand its halal market share in the international market.
 
Because of government initiatives, Macatoman said even non-halal small and medium-sized enterprises (SMEs) in the Philippines are understanding the worth and importance of having their products halal-certified.
“Filipino SMEs now realize that making halal-certified products opens opportunities to wider markets both locally and internationally. They are starting to understand the value of penetrating the mainstream market, which includes some 2bn Muslims all over the world.
 
“One of the objectives of our OBMM (Outbound Business Matching Mission) initiative is to open the Middle East markets, particularly Qatar, to Filipino SMEs, so that their products will be introduced here and in other GCC member countries,” he said.
Asked about other partnerships with Qatari investors, Macatoman said: “The Philippines can offer arable land to Qatari investors, who can make most of the land area to put up manufacturing facilities to address their agricultural needs, especially in Mindanao.”
 
Philippine Commercial Attaché for the Middle East and Africa Charmaine Mignon S Yalong also said the Philippine government is planning to bring another trade delegation to Qatar later in the year to introduce other products, particularly for personal care, pharmaceuticals, and furniture.
 
“We have plans to return to Qatar this year to bring other Philippine-made products. The government also wants to take advantage of the opportunities related to Qatar’s hosting of the 2022 FIFA World Cup games,” Yalong

along said.

HDC To Promote Malaysian Talents For Global Halal Industry

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PETALING JAYA: The Halal Development Corporation Bhd (HDC) plans to promote up to 700 Malaysian professionals in the international market to meet the strong demand for talents with experience in the halal sector.

CEO Hairol Ariffein Sahari said the talents will be needed for the companies’ halal operations as well as the exchange of technologies with four countries: Japan, South Korea, Taiwan, and China.

“These countries are the non-Muslim majority and their knowledge of halal is limited.

“Hence, in order to meet the requirements in halal-certified products and services, they might need expert help from Malaysia,” he told reporters here today.

Hairol said each year there are 50,000 local graduates in halal-related courses, and around 10,000 certified halal knowledge personnel are working in the halal industry.

On another note, he said HDC remains optimistic about achieving its RM50 b export target this year compared to RM41 b last year.

He added that the move to introduce Malaysian professionals to the overseas markets mentioned above might boost exports by about RM2 b as well as attract up to RM2 b in foreign direct investment.

“In order to enter the halal industry, the companies will need to import raw materials or ingredients due to the lack of halal materials in their respective countries.

Meanwhile, Hairol said HDC will facilitate more than 5,000 companies in halal compliance this year.

”Currently, there are 8,500 halal-certified companies and we want to facilitate more companies to create additional opportunities for Malaysia’s halal ecosystem community,” he added. – Bernama

Bursa Malaysia Adds Inter-Pacific to Islamic-Compliant List

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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

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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

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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

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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’

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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

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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