Brunei can get ‘1% of global halal market’
By Shareen Han

Bandar Seri Begawan - Brunei has the potential to grab a one-per-cent share of the lucrative global halal food market partly by providing the logistics technology needed to ensure the proper handling of such products from the producers to buyers.

The logistics side of the halal food market is valued between at $7.5 billion and $15 billion, said Fauziah Dato Talib, chief executive officer of consulting firm IQQuest. This is estimated to account for five to 10 per cent of the total global halal market.

In an interview with The Brunei Times, Fauziah said that the logistics market or the management of the flow of products from one place to another is a critical aspect of the halal market that Brunei can tap.

At the least, Brunei can train its sights on 0.5 per cent of the global logistics market is through technology. She explained that the sultanate already has the technological infrastructure needed to penetrate the market.

There are, however, a number of concerns that Brunei has to address to take full advantage of the burgeoning halal food market, she said.

"The certification process of halal products needs a system in place to ensure the integrity of the products. This can be done by tracking the transportation of the products through mobile asset technology," she said.

She explained that large amounts of investment is not needed because companies that provide the solutions will have the ability to manage the assets, which are in the form of halal products.

"It creates an economic spinoff just by investing on technology-based solutions because goods will be delivered in a fast pace and at competitive prices," she said.

She asserted that mobile devices can track down the movement of containers and determine whether they are certified or at a pre-qualified temperature of halal food products.

However, Fauziah said that there is a need for the standardisation of the quality and safety of the food in the halal industry.

Analysts say there are still no international standards and best practices in the halal market, making it a complex area to regulate.

Among Brunei's benefits is that many Bruneians adhere to the Islamic dietary law and it has access to markets that have "serious concerns" over the proper adherence to halal standards, Fauziah said.

She said that the premium halal brand follows the highest standards, but Brunei faces challenges in this area because it may not have reached the standards associated with fresh food produced in Australia.

"What Brunei needs is a benchmark to work towards producing a quality premium halal brand."

She added that the marketing and packaging of halal food products can be further improved because it will conjure a positive image that motivates consumers to buy the product.

Brunei's To-Do List'

• A certification process that ensures the integrity of halal products in transit
• A benchmark to work towards producing a quality premium halal brand
• Technology-based solutions that ensure prompt delivery at competitive prices
• Standardisation of the quality and safety of the food in the halal industry

-- Courtesy of The Brunei Times

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