Targeting Muslim Markets: Chung Cheng University ASEAN and South Asia Research Center Promotes Halal Certification, Tax Law, E-Commerce Routes, and Other Services

 

[Chung Cheng University 03/15]

With the New Southbound in vogue, anyone wanting to break into the heavily Muslim-populated market of Southeast Asia cannot be ignorant of “Halal Certification.” Currently, the ASEAN and South Asia Research Center is one of only a few academic institutions providing bundled training in Halal Certification, law, taxes, routes, e-commerce, etc. Not only does it organize Taiwanese-Malay Halal Certification Consultation training, it also proactively organizes Halal Certification business opportunity forums, specifically customizing the certification process and export procedures for Taiwanese businesses in hopes of aiding Taiwanese businesses in entering Muslim markets.

 

Islam is the one of the three largest religions in the world, with Muslims worldwide numbering over 1.8 billion or 24.1% of the world population. By 2020, the scale of the worldwide Halal industry market could reach three trillion USD. The Alliance of Southeast Asian Nations (ASEAN) is the sixth largest economic entity in the world, with the Muslim population surpassing 600 million. Among these, Indonesia and Malaysia’s Muslim populations are highest. CCU’s ASEAN and South Asia Research Center points out that Southeast Asia is Taiwan’s second largest export market and that Taiwan possesses a geographic advantage. Seeing the lucrative businesses opportunities in Southeast Asia, the government in recent years has strongly promoted the New Southbound Policy. As the Muslim population increases, the demand for Halal-Certified products will only rise. For those wanting to enter the Muslim market, Halal Certification becomes even more of a target.

 

For Muslims, the food and products which come into contact with the skin must cohere with Islamic teaching. This includes prohibitions against touching unclean contaminants (Najs)—such as blood, urine, feces, pork, alcohol, genetically modified food, etc—and animals not slaughtered according to Islamic teaching. Therefore, for Muslims, Halal Certification is not only a guarantee of quality. The products produced according to its exacting standards are sanitary, nutritious, and healthy, but also attractive to Muslim markets.

 

Seeing the large market for Halal Certified products, CCU’s ASEAN and South Asian Research Center has introduced the Malaysian Halal Certification process and organized the Halal Certification Consultant Training group. Members include expert professors from their respective fields and international students, with professors and experts from both Taiwan and other Southeast Asian countries acting as consults. “Malaysian Halal Certification is the oldest Halal Certification in the world, universally-recognized among Muslims,” said ASEAN and South Asia Center Director Chin-Chin Cheng. Therefore, if Taiwanese products can obtain Malaysian Halal Certification, it would be benefit sales in global Halal markets.

 

CCU’s ASEAN and South Asia Center points out that, currently, Malaysia allows international producers to apply for Halal Certification for food products, consumer goods, cosmetic products, and pharmaceutical products. But the applicant must own a company registered in Malaysia. Furthermore, the application process is rather strict, with the source of raw materials, factory equipment—everything from production process to the product itself—must meet Halal standards. For example, the raw materials and product cannot be mixed with non-Halal materials, non-Halal raw materials and ingredients cannot be stored in the same factory, and neither the equipment nor tools can be contaminated.

 

In the past year, CCU’s ASEAN and South Asia Center has worked with both Halal Certification companies in Malaysia and other center members from diverse fields. As a result, the center has become the conduit for Halal Certification services. Chin-Chin Cheng notes that as long as a company submits a request, the ASEAN and South Asia Center can provide service and consultation packages for anything ranging from front-end explanation of Halal Certification, export laws, taxes, and routes to back-end explanation of trade routes and e-commerce. The ASEAN and South Asia Center not only hopes to assist in domestic tourism consultation, such as aiding restaurant and hotels to become “Halal friendly” to stimulate Muslim tourists to be willing to visit Taiwan and thus boost the Taiwanese tourist industry. Even more, it hopes to promote the sale of high-quality MIT [Made in Taiwan] products in Muslim markets, to stimulate the growth of related industries in Taiwan. The ASEAN and South Asia Center plans to continue training Southbound-mobile talent, providing Taiwanese businesspeople with talent in different areas, including venture capital, market research, legal advice, business management, human resource management, and risk prediction and management.

 

[News Source: Chung Cheng University]