Global Halal Data Pool: Helping Chinese Food and Medicine Companies Enter Halal Market

Written by Li Yizhi / Translated by Mao Yuye

Global Halal Data Pool: Helping Chinese Food and Medicine Companies Enter Halal Market

Written by Li Yizhi / Translated by Mao Yuye

Team members of the GHDP at a luncheon

Encouraged by the Belt and Road Initiative， increasing Chinese food and medicine companies prefer to go global for more business opportunities.

The halal product market along the Belt and Road enjoys large profit potential though some tough challenges are here to stay for non-Muslim countries to enter the market. Against such a background， what will Chinese food ＆ medicine enterprises do to enter the halal market in Asia？

Global Halal Data Pool （GHDP） is the world's first bridge connecting global food supply chain and the halal market and facilitating the trade in halal food. It can bridge the cultural and regulatory differences and introduce high-quality food and medicine from other parts of the world to the Muslim market.

Halal food: a broad market with demanding requirements for market access

The ASEAN countries along the 21st Century Maritime Silk Road have over 300 million Muslim people.

About 80％ of halal food in Muslim countries along the Belt and Road is imported from other countries，according to Rusli Mohd Nor， Chief Advisor of JAKIM， Department of Islamic Development of Malaysia. In 2014， 97％ of halal food was imported in Qatar， with a population of 2.27 million and the GDP of US$ 93.4 thousand.

Immense demand for halal food pushes the halal food industry ahead. In 2014， the output value of global halal industry exceeded US$ 3.2 trillion and the trade volume of halal food hit US$ 500 billion， according to the statistics from Halal Industry Development Corporation. The annual value of global halal industry is expected to be up to US$ 6.4 trillion in 2018.

As a food net exporter and the largesttrader in the world， China should shift its focus from the saturating developing markets in Europe and America to the countries along the Belt and Road with great demand for exports， according to Rusli Mohd Nor.

However， of particular note， the Belt and Road is a major bond for China and ASEAN countries to launch cooperation in business and international industrial capacity though there are some problems brought by cultural differences， like communication， social customs and cultural identity， to be handled properly by foreign companies. After all， the Belt and Road covers some areas of Europe，Asia and Africa with the total population of about 4.4 billion.

What is Global Halal Data Pool？

Global Halal Data Pool （GHDP）is a Malaysian government-led initiative helmed by the Halal Industry Development Corporation and it was initially mooted and currently managed by Serunai Commerce， with the support and endorsement of key agencies such as JAKIM （Department of Islamic development of Malaysia）， Department of Standards Malaysia， SME Corporation Malaysia， the Prime Minister's Office and GS1.

It serves as a central platform and halal brand bank that collects real time trade information. It serves as a trade fulcrum for halal products， as it bridges halal manufacturers， service providers，retailers and buyers globally. It connects real time information for both halal sellers and buyers.

The sellers registered in GHDP are firstly accredited by their local halal certification body. They will need to adhere to GS1 standards in their provisions of product information （i.e. unifi ed format）. Sellers will then choose which markets they wish to show their products or service at. Information is cross checked and updated into the GS1 global directory and made available to buyers across 140 different countries.

In GHDP， buyers and sellers can negotiate in real time. They can be timely informed if any data changes. Meanwhile， sellers can improve or change their products according to buyers ' feedbacks.

“The common formats cut the need of reformatting based on different countries or retailers， reducing the time to go to market and providing wider market access，” said Dato' Seri Jamil Bidin，CEO of Halal Industry Development Corporation.

Based on the Global Trade Item Number，GHDP also set up a mechanism for tracking goods. It can track wherever they are going and what links they are at the global supply chain， thus guaranteeing for food security and recall mechanism.

GHDP serves as the identity card of Chinese companies abroad

Using the GHDP would reduce data errors caused by various market factors，Hasnahwati Ibrahim， General Manager，Serunai Commerce Sdn Bhd indicated.

The establishment of data pool exerted a significant role in promoting trade in halal products globally. The Pool makes it possible that information can be timely shared between different parts of supply chain of halal products， thus satisfying the need of globalizing the trade in halal products， she added.

At present， Chinese companies are seeking multiple channels for halal certifications and on the way to the halal market. GHDP is therefore of great importance for Chinese food and medicines companies. It will bridge cultural differences between Chinese companies and Muslim countries for helping Chinese companies gain access to the halal market.

The producers only need to register their products with halal certifi cation in GHDP and pay service charges before selling the products in the Muslim market.

What's more， with amiable diplomatic ties and frequent trade cooperation between China and Malaysia， there is a promising prospect for cooperation between Chinese companies and the Data Pool.

GHDP will focus on SMEs

“There are already 32 data pools worldwide， with 1.4 million sellers and 30，000 major retailers like Harrods，Disneyland and Wal-Mart.” Pn. Amnah Shaari， founder of Global Halal Data Pool and Council Member of the National Chamber of Commerce and Industry of Malaysia， Vice President of Malaysian International Chamber of Commerce and Industry. Vice President of Arab Malaysian Chamber of Commerce， Council General of Iceland in Malaysia， introduced the GHDP to other attendants in the China-ASEAN Forum on Industrial Capacity Cooperation 2016.

GHDP also urged SMEs' participation in Malaysia， she said. “Under the business acceleration program， SMEs just need to pay registration fee up to 60％.”

GHDP is projected to be the B2B E-commerce platform for SMEs to participate in global halal market. According to Amnah Shaari， there are now almost 1.8 billion Muslim people in the world and the population is increasing rapidly. B2C will be a development focus of GHDP.

It is reported that the users registering in the GHDP can start to trade with 32 halal data pools， 1.4 million sellers and 30 thousand retailers mentioned above from December 2016.