Brunei has invited mainland Chinese investors and enterprises to join a Halal-themed industrial park worth US$300 million in the Southeast Asian country, in consideration of the mainland's large Muslim market.
'We hope to attract Chinese companies to produce Halal food, cosmetics, pharmaceuticals and functional food in the bio-innovation industrial park,' said Gary Ho, chairman of SQW China Ltd.
'After production or processing, to meet Brunei's strict Halal food product quality requirements, all products will be labeled with a Brunei Halal certification and exported to global Muslim markets,' he said.
SQW China of the UK - an economic and management consulting company - is authorized to develop the master plan and is responsible for the company's short-term operational management.
About 64% of Brunei's population is Muslim, and pharmaceutical, food and cosmetics production in the country enjoys a strong reputation among the Islamic community for high Halal standards and strict guidelines. Gary Ho noted that Muslims currently make up about 25% of the world's population, a market with huge potential.
'The Middle East region is highly dependent on imports of Halal food; they are relatively wealthy and willing to pay more for high-standard Halal food. This will provide a high premium for our business,' he said.
The Halal-themed industrial park, whose first phase has been completed, is part of Brunei's broader economic diversification strategy - the Bio-Innovation Corridor (BIC) initiative - created to promote the country's economic diversification and export trade. 'Located at the center of Southeast Asia, Brunei is an ideal location for developing export and logistics activities. Close cooperation will help mainland enterprises "go global" through Brunei and expand into overseas Muslim markets, including Southeast Asia, the Middle East and Africa, which is also in line with mainland China's strategic initiative, the Maritime Silk Road,' Ho said.
The Maritime Silk Road project, officially called the 21st Century Maritime Silk Road, is a strategic plan first proposed by President Xi Jinping in 2013 to increase investment along the historical Silk Road and promote collaboration including member states of the Association of Southeast Asian Nations (ASEAN), North and South Asia, Africa and Europe.
'If European products are imported into mainland China through Brunei - for example, a packaging company in Brunei, then shipped from Brunei's port - then the cost would be far lower than importing directly from the place of origin, because there is no customs duty.'
BIC aims to provide 28,000 jobs upon completion of the entire three-phase Halal industry park, with about 9,500 jobs related to food processing. 'We expect the Hong Kong trade cooperation strategy to play an important role, not only in food manufacturers' entry, but also in more management talent and port-matching support as well as financial services support,' Ho added.