The halal industry is expected to be one of Brunei Darussalam’s strongest economic diversifiers. Indeed it is hoped the Sultanate will come to be regarded as a serious player in expanding the global halal market, estimated to be worth an annual $2.1trn.
At the head of this initiative is the Brunei Halal (BH) brand, which is slowly creating a global footprint through a series of acquisitions. Originally the idea of the Ministry of Industry & Primary Resources, commercialisation efforts gained traction following its partnership with foreign investors to form the Ghanim International Food Corporation (GIFC). Under the government owned parent company, Brunei Wafirah Holdings, the GIFC is responsible for the trading and marketing of the BH brand.
ISLAMIC CREDIBILITY: BH has focused its resources principally on foreign soil where market demand has opened opportunities in western markets, notably the UK. Brunei Darussalam is using its stringent halal accreditation protocols, which it became the first in the world to pass into law in 2010, to stand out in these markets.
Admired as one of the world’s most strict set of regulations, Brunei Darussalam’s accreditation procedure is both legislated and removed from the commercial process. Overseen by the Ministry of Religious Affairs, with the endorsement of the Brunei Islamic Religious Council, food process accreditations are covered under the present Halal Certification and Halal Label Order (2005), protocols for halal pharmaceuticals were promulgated in 2010, and protocols for cosmetics are currently under development. This strict enforcement, which the Sultanate can afford to maintain comparative to commercial brands irrespective of size, has given BH a strong competitive edge.
MARKET DEMAND: As the Sultanate accelerates toward economic diversification by 2035, the world’s Muslim population is projected to reach 2.2bn by 2030, up from 1.6bn today and equivalent to 26.4% of the global population, as per a recent Pew Research Centre study. This has attracted the interest of multinational producers such as Johnson & Johnson, Kellogg and Nestlé into the halal market. Closer to home both Malaysia and Singapore are promoting their own protocols as global standards backed by respective government-funded bodies. In the effort to avoid direct competition from regional players such as Malaysia, Indonesia, and export giant Thailand, successful certification and penetration of the UK food market would be a major step forward for BH. This would also enable it to expand into larger markets internationally.
BH opened offices in Birmingham’s Saltley Business Park in 2012 to serve as its platform for entering the UK meats market, valued annually at $1.6bn. It is also BH’s launch pad for European markets, where halal demand and potential remains strong, particularly after the contaminated meats scandal in the early part of 2013. After the UK, the EU’s 27 countries are billed, followed by the Middle East, Eastern Europe and the Americas, according to Noel Shield, the former CEO of BH.
BRANDING BRUNEI: In line with Brunei Darussalam’s national vision 2035, BH will also function as an umbrella brand to facilitate market access for those Bruneian SMEs and producers that earn its accreditation. Already exporting 31 products in 2012, BH is extending the same opportunities to foreign firms and producers that meet the grade. This will enable BH to tap into a wider share of the diverse global halal market. “A country the size of Brunei Darussalam cannot sustain global manufacturing operations. Accordingly, the strategy we have is to manufacture and sell anywhere in the world under the BH brand and under BH accreditation,” Shield told OBG. Although based in the Sultanate, BH also has a distribution centre in the UK and manufacturers that hail from Spain, Malaysia and India.
In the near term, the halal brand itself is on course to be more valuable than Brunei Darussalam’s domestic halal output. The protocols for halal pharmaceuticals and cosmetics will prove crucial in securing HB’s global position on the halal stage, enabling it to attract additional investments and consolidate gains.
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