SMEs need to keep in step with halal agenda
Halal expo: Staff of Teh Botol Sosro, one of the exhibitors at the upcoming of the International Halal Expo, prepare their booth at the International Convention Centre. Picture: BT/Jefrisalas
Thursday, July 30, 2009
BRUNEI needs to take an integrated approach in implementing the national halal programme and ensure small and medium enterprises (SMEs) involved move forward in tandem with the development of the Brunei Halal Brand, a halal business expert said.
Different sets of challenges face the two potential engines of growth in Brunei's nascent halal sector, the cottage industries and the export-ready SMEs, as the Sultanate embarks on a mission to take home a slice of the US$2-trillion-a-year global halal industry and ultimately create its very own premium halal brand.
The cottage industries may face difficulties acquiring the necessary certifications to meet internationally-accepted standards as these require enterprises to operate out of proper business or manufacturing premises. The export-ready SMEs, those with proper facilities and branded products, on the other hand, may find it challenging to be competitive in the international market.
"It needs some clever thinking," said Abdalhamid Evans, a senior analyst at Imarat Consultants, on the significance of streamlining the development of the Brunei Halal Brand together with the SMEs involved. "An integrated approach to all of this is important. At the higher level they're already thinking in those terms, but when it comes to practical implementation, the question of how we are actually going to do this, that I think needs to be looked at more closely. That has yet to be explored."
"It's important that there is an integration between international promotions and the international activities, the Brunei Halal Brand, the international market and the development of SMEs," said Abdalhamid.
Commenting on concerns that SMEs might not be able to keep up while the brand is taking off, he said, "I think those fears are probably valid because Brunei's manufacturing sector is not really developed if you compare it to Thailand or Malaysia.
"It's alright not being the leader, because you can learn from other people ... from their mistakes and the things they got right. Brunei is actually in the position to do that, and learn lessons from Malaysia and Thailand," he added.
With Brunei's very first guideline for standards in the manufacturing of halal goods and several other significant initiatives set for unveiling in the next few days, Abdalhamid said this is a very good moment to establish Brunei as a country that is taking halal very seriously.
"Brunei has got good world-class standards and guidelines for manufacturing of halal goods, and it is taking as a strong religious duty and wants to use it to diversify its economy, and build up the SME sector in the country. Those elements put together are very strong, but the challenge is to follow it through at the right kind of pace."
He added: "Industries move at a different pace than the government. If you're really going to be active in the market, you can't move at government speed, you've to move at industry speed." The Brunei Times
Different sets of challenges face the two potential engines of growth in Brunei's nascent halal sector, the cottage industries and the export-ready SMEs, as the Sultanate embarks on a mission to take home a slice of the US$2-trillion-a-year global halal industry and ultimately create its very own premium halal brand.
The cottage industries may face difficulties acquiring the necessary certifications to meet internationally-accepted standards as these require enterprises to operate out of proper business or manufacturing premises. The export-ready SMEs, those with proper facilities and branded products, on the other hand, may find it challenging to be competitive in the international market.
"It needs some clever thinking," said Abdalhamid Evans, a senior analyst at Imarat Consultants, on the significance of streamlining the development of the Brunei Halal Brand together with the SMEs involved. "An integrated approach to all of this is important. At the higher level they're already thinking in those terms, but when it comes to practical implementation, the question of how we are actually going to do this, that I think needs to be looked at more closely. That has yet to be explored."
"It's important that there is an integration between international promotions and the international activities, the Brunei Halal Brand, the international market and the development of SMEs," said Abdalhamid.
Commenting on concerns that SMEs might not be able to keep up while the brand is taking off, he said, "I think those fears are probably valid because Brunei's manufacturing sector is not really developed if you compare it to Thailand or Malaysia.
"It's alright not being the leader, because you can learn from other people ... from their mistakes and the things they got right. Brunei is actually in the position to do that, and learn lessons from Malaysia and Thailand," he added.
With Brunei's very first guideline for standards in the manufacturing of halal goods and several other significant initiatives set for unveiling in the next few days, Abdalhamid said this is a very good moment to establish Brunei as a country that is taking halal very seriously.
"Brunei has got good world-class standards and guidelines for manufacturing of halal goods, and it is taking as a strong religious duty and wants to use it to diversify its economy, and build up the SME sector in the country. Those elements put together are very strong, but the challenge is to follow it through at the right kind of pace."
He added: "Industries move at a different pace than the government. If you're really going to be active in the market, you can't move at government speed, you've to move at industry speed." The Brunei Times
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