Halal industry in Singapore

"When we export, we go for innovative and high-value, upper-end products"

— Wong Mong Hong,President, Singapore Food, Manufacturing Association

THE estimated 2-billion global Muslim population offers huge potential for food manufacturers worldwide. Statistics from pewforum.org estimate this market to grow by 1.5% annually to 2.2 billion by 2030. Industry experts say this figure translates to a growth of about US$560 billion per year.

Gold Kili, whose products pass the Whole Plant Halal certification scheme, exports powdered beverages to 25 countries

In Singapore, manufacturers are confident of meeting market demand. Their key ingredients: trusted Halal certification and brands, innovation, training and strong government backing.
The expanding consumer base requires Halal certification, and because there is no international Halal certification body, suppliers have to abide by the certifications recognised by their markets, says Wong Mong Hong, president of the Singapore Food Manufacturing Association (SFMA).

This obviously produces some confusion and even costly product recalls, since markets worldwide have different regulatory standards and require different processes. Mr Wong expressed confidence, however, that the 260-strong SFMA is in a good position to get a sizeable slice of the Halal market. For one, Singapore’s Majlis Ugama Islam Singapore (Muis) Halal certification is recognised in the Middle East – including Bahrain, Kuwait, Qatar, Oman, Saudi Arabia and the United Arab Emirates – under the Singapore-Gulf Cooperation Council Free Trade Agreement, and in Brunei, Indonesia and Malaysia, under the MABIMS Agreement. MABIMS refers to the Unofficial Meetings of Religious Ministers in Brunei, Indonesia, Malaysia and Singapore.

Having the right endorsement

The Muis Halal Quality Management System (HalMQ) follows a process-based approach and covers sourcing, storage, production, logistics and sales and marketing. It also incorporates both the International Organisation for Standardisation (ISO) and Hazard Analysis and Critical Control Points (HACCP) principles. Together, these carry the two-pronged advantage of meeting Halal and food safety requirements.
 
“It is important that the market trusts your brand,” says Mr Wong. In addition to the Halal certification, he also credits Singapore’s stringent standards for manufacturing, food safety

 and honest declaration of products for earning a good reputation amongst local food manufacturers. The Middle East, Indonesia, Malaysia, China and Pakistan and some parts of the United States are amongst the City State’s biggest Halal markets, he said.

Innovate and differentiate

However, Mr Wong concedes that Singapore manufacturers still cannot compete on price points, as cost of materials and production remains high.

“When we export, we go for innovative and high-value, upper-end products,” Mr Wong said. One such innovation and value-adding strategy that has worked is to change some functional ingredients with those that give added health or wellness advantages to the product.

Industry experts agree. They say innovation is driving the race to win orders in Halal markets and pushing manufacturers who would traditionally be considered nonplayers in the Halal field to be more creative in their approach. Take mirin producers for instance. This sweet Japanese seasoning is used in Sushi rice and because Islamic dietary laws prohibits the use of alcohol,SNEAKERS