Singapore is ready to capitalize on strong demand for Halal products and services, showcasing how the government has fostered a new path for Halal market development by creating value standards.
Muslims are a minority in Singapore, and in such a situation the Halal sector usually finds it harder to flourish. But one influential factor makes this possible.
'Singapore has strict food safety regulations, and its Halal regulations are widely recognized by Gulf countries and ASEAN countries. Some companies have seized the opportunity well to cater to the growth in demand for global Halal products and services,' Sim Choon Siong, a Singapore food director, told BT.
Sim Choon Siong added that this demand comes from emerging Muslim attractions such as Japan and South Korea, where Halal products and services have not yet been fully developed.
The global Halal market - the food industry alone is expected to be worth US$1.1 trillion, projected to reach US$10 trillion by 2030 - means it can provide economic growth opportunities and better returns for local enterprises.
OTS Holding - a Halal bakery, and Ellaziq - a Halal meat processing manufacturer, were reported to have seen their sales rise every year since 2009. A company spokesperson said: 'Currently, demand mainly comes from Brunei, Myanmar, India, Australia and Singapore. We have set our next target markets on Japan, Malaysia and the Middle East.'
Gan Hup Lee (GHL) - a rice company with 67 years of history - exports its Yamie brand rice to the United Arab Emirates (UAE) and plans to export its products to other Gulf Cooperation Council (GCC) countries. GHL's regional manager said: 'Being in a small country, the local food industry needs to develop and expand. The overseas Muslim market is one that urgently needs to be developed and has potential.'
In 2008, Singapore signed a free trade agreement with the Gulf Cooperation Council (GCC), officially recognizing Singapore's MUIS certificate. The MUIS certificate proves that, although Singapore is not a Muslim-majority country, it has a strict Halal standard enforcement system.
'Singapore's MUIS certificate is universally recognized worldwide. Our certification standards are strict and also very popular,' said Malek Mattar, deputy president of the Singapore Malay Chamber of Commerce.
MUIS is Singapore's main Halal certification body, certifying products such as central kitchens, factories and slaughterhouses. In 2014, TFK Corporation, the Japanese subsidiary of SATS Group, became the first overseas company to receive Halal MUIS certification (certified for the central kitchen at Tokyo's Narita Airport), with MUIS performing Halal supervision.
That same year, revenue from Singapore's MUIS certification exceeded US$4 million - up from US$2.98 million in 2013, MUIS's annual report showed. At the same time, compared with 15 years ago, certified products grew fivefold - from 533 in 2000 to 2,941 in 2014.
Meanwhile, Singapore was named the favorite tourist destination among Muslims (among non-Muslim-country destinations) for three consecutive years (2012-2014), according to the Global Muslim Travel Index. In addition, Singapore's Muslims are among the 15 countries with the most purchasing and consumption power, the Economist Intelligence Unit (EIU) revealed.
'Interestingly, although Singapore is a non-Muslim country, it has enacted AMLA (the Administration of Muslim Law Act, implemented in 1968), aimed at protecting the Halal industry. This is the framework for ensuring Halal legitimacy and authenticity. The same law was implemented in Malaysia only 3.4 years ago,' said Fazil Hamid, chief consultant of SimplyHalal International.
Although Muslims are not the main population in Singapore, Singapore's Halal industry is undoubtedly successful, Mr. Fazil said. 'Other countries, such as Japan and China, regard us as a successful example and hope to implement the same system without undermining cultural factors.'
Next, Mr. Malek of the Singapore Malay Chamber of Commerce said, the goal is for Singapore to occupy a place on the world Halal map. He said: 'With the establishment of the AEC (ASEAN Economic Community), Singapore will have the opportunity to strategically position itself at the forefront of the Halal market. We will become the center of the Asian Halal supply chain, and possibly even the world's.'
Mr. Malek said Halal consulting bodies are a key factor, serving as basic service institutions that train companies and lead them into the Halal market.
Fazil of SimplyHalal said that Singapore currently has more than 10 fairly active consulting bodies - three of which are non-Muslim companies - helping companies obtain local or international Halal certificates. Currently, his other company, HCS consultancy, charges consulting fees ranging from S$500 (school canteens) to S$6,000 (catering companies or manufacturing plants).
'New Halal consulting companies are established every year, but due to fierce competition, they usually go out of business within a year,' Fazil said.
Finally, obtaining Halal certification does not mean a company serves only Muslims, or that the food offered is less delicious, noted Nicholas Tan, marketing director of Toasties, a certified sandwich shop that local consumers usually call 'Halal Subway.' The latter - unlike fast-food chains such as McDonald's, Texas Chicken and KFC - has not obtained Halal certification in Singapore.
Mr. Tan said: 'Many people think Halal food lacks some of the flavors of non-Halal food. At Toasties, we usually do a lot of product research and improvement, combining different flavors to meet the needs of different people. We believe that with more effort and experimentation, we can eliminate this bias.
Toasties' goal is to provide as much deliciousness as possible. After all, in Singapore, we are a diverse people.