Singapore Companies Enter the Chinese Halal Market

According to market insiders, Singapore companies are well positioned to enter foreign Halal markets, especially China's huge domestic market.

China's Halal market is worth US$21 billion and is one of the fastest-growing markets in the world. But it lacks national standards and legislative support, because its certification centers are only regional.

Halal refers to products and services that comply with Islamic consumption standards.

Industry observers say Singapore, with internationally recognized Halal certification and food safety standards, is well positioned to enter the Chinese market and fill the gap in the Chinese market. In fact, as much as 70% of Singapore's food exports are Halal-certified.

China's Muslim population accounts for 2%, about 26 million people, most of whom live in Xinjiang, Ningxia, Gansu and Qinghai in northwest China. In January 2008, China got its first Halal food certification center.

Singapore's Warees Halal, a wholly-owned subsidiary of MUIS, Warees Investments Pte Ltd., created general regulations for Halal food certification in March 2013 to certify Halal food in places such as Ningxia, Shaanxi, Gansu, Qinghai, Liaoning and Guizhou.

According to a report by Warees, Halal food has become a popular food in China, even among the non-Muslim population, who consider Halal food healthy, hygienic and of higher standards.

Dainial Lim, Group Director of Kaiman Group's immigration consultancy, said: 'Many non-Muslims increasingly realize that Halal food may be safer, cleaner and more hygienic, because to obtain Halal certification, one must comply with the strict production procedures and standards set by MUIS.'

Fazal Bahardeen, Director of CrescentRating and an authority on Halal travel, said: 'Having a very good Halal certification body (MUIS) gives Singapore a great advantage. Obtaining a MUIS certificate can earn their products the Halal assurance of a reputable certification body.'

International Enterprise (IE) Singapore noted that China's Halal food industry still lacks relative competitiveness. This provides room for Singapore food companies to enter early and build their own market without facing competition from top international brands that have not yet entered the market.