IHP Takes on the Global Halal Industry

IHP Takes on the Global Halal Industry

1. How has IHP progressed so far? Do share more on the industrial park’s development, take up rates and short term plans.

Currently Iskandar Halal Park is at 95% completion rate with CCC expected to be obtained in October 2017. Up-to-date, IHP has already managed to bring in close to RM 50 million of total investment with a take up rate of 45% from the sale of factory units and 80% take up rate from the sale of commercial units.

 

Double Storey Terrace Factory Type A2

One of IHP’s main component is the Johor Toyyiban Laboratories which will be a one-stop center for halal application. The building plan has been submitted to the local municipal for approval and the construction works are expected to commence on the 2nd quarter of 2018. The second phase of the IHP master plan will be developed by Surbana Jurong a well-renowned industrial area master planner with projects in over 40 countries including South America, Africa and Asia, and is expected to commence in 2018.

Double Storey Terrace Factory Type A1

In addition, IHP’s short term plan is to sell off all 89 units of ready built factories within two years. So far, we have already engaged government agencies such as MIDA, JSIC, IRDA, PNS as well as the public as part of our strategy to achieve the objective. Many local and international industry players, the general public and government agencies such as Singapore embassy, Malaysia China Chamber, MIDA, HDC, have visited us to understand further about IHP and its potential.

 

Cluster Factory
 
 

2. What are the opportunities for growth in the halal sector? How will IHP assist its tenants in marketing their products to halal-centric markets.

The Halal sector possesses a huge potential to make it big in the world economy today. Malaysia especially is one of the leading countries in Halal exports with a recorded value of USD 11 billion in 2014 and RM 42 billion in 2016.

Many non-Muslim countries are also looking at the halal sector as their economic contributor due to its vast potential. In Thailand, the domestic halal food market grows at the rate of 20% a year with more than 8000 companies involved in halal food production. Japan which holds great potential for halal products has forecasted it to be one of the contributing source to their economy by 2020.

For that reason, Malaysia is currently acting as an advisor to Japan in matters pertaining to the halal industry. According to Prime Minister Datuk Seri Najib Razak, the demand for halal products is expected to increase during the 2020 Tokyo Olympic games as athletes and tourists from the Islamic countries will require halal foods and products during the event. Halal food imports in UK are valued at about GBP 18 billion per annum, while in the US at USD 18 billion.

In addition, our Department of Islamic Development Malaysia (JAKIM)’s Halal standard is recognized by the World Trade Organisation and the United Nation which allows halal industry player especially in Malaysia to penetrate the global market.

IHP’s ambition is to be the world’s halal reference center, and the key expert and enforcer in helping to develop the global halal economy. Regional Marketing Clearing House (RMCH) will be one of the main component in JHP that will help fulfill this ambition. Phase two of this plan—to be built on 30 acres of land— will be the vital driving factor for IHP tenants to embark into the global halal centric market.

RMCH will be a one-stop center that manages the entire business process flow and value chain. It will boast offices for foreign and local government agencies, industry association and etc. for exports approval, shipment of goods and other administrative related process with regards to product export. Furthermore, it will also include operational facilities such as collection and distribution centre, loading and unloading bay, warehouses and cold room facilities as well as packaging which will benefit the tenant during their daily business operations.

 

Link Detached Factory

 

3. IHP recently collaborated with TM to provide JHP tenants with high speed internet. How will this enhance the competitiveness of IHP and what are the other value-added services that IHP tenants will enjoy.

The collaboration between IHP and TM is to support the development of JHP, elevating the establishment to a world class smart integrated industrial park and the first premium bio-halal industrial park in Malaysia. The manufacturing industry is extremely competitive and is mainly driven by a very high demand for customized products. This partnership will demonstrate TM’s capabilities in the provision of converged communication services and solutions that will fulfill the needs of businesses, especially in today’s sophisticated digital era.

This collaboration will enable IHP to obtain quick access to fibre infrastructure to support future network capacity demands in order to deliver affordable and high-quality internet connectivity. With this agreement in place, IHP’s tenants will enjoy the UniFi package that comes with value added services such as Microsoft Office 365 bundling, enabling them to enjoy high speed internet services with speeds up to 100Mbps, competitive call rates and free initial setup for Microsoft Office 365 user licences.

Besides high speed internet connectivity, tenants of IHP will be able to enjoy incentives such running the business tax-free for up to 10 years courtesy of Halal Development Corporation (HDC). Tenants can also utilize a Scientific Halal Laboratory which will be well-equipped with advanced technology as well as state-of-the-art facilities and equipment for the purpose of providing halal analysis services aiming to procure halal certification from the relevant authorities.

RMCH, which is also known as Distributive Park is a dedicated warehouse complete with all kinds of operational facilities and will function as halal collection center as well to handle the processing of raw materials packing of Halal Products. The One Stop Center (OSC) at RMCH will operate as a place to facilitate all local and international investors with information and procedures to obtain approvals and permits.

4. How will IHP contribute to the local economic development? What is being done to encourage the participation of small and medium sized local business in IHP’s value chain?

IHP is targeting investors and business operators in cosmetics and skin care products, pharmaceutical, food & beverages that are halal. With strict criteria based on halal requirements for allocation of factories, industrial lots and commercial plots will be sold to manufacturers/investors with high value added processes, job creation and manufacturing based investment.

As JHP marketing focuses on both local and international players, its JV partners—UMLand and J-Biotech—are planning for commercial visits to other countries to identify and entice potential manufacturers to relocate to IHP.

We have also been actively taking part in local and international events such as the 11th World Islamic Economic Forum (WIEF) 2015 at KLCC, BioMalaysia & Asean BioEconomy Conference & Exhibition 2015 at PWTC, Malaysia Property Expo (MAPEX) 2015, Trade and Investment Mission Headed by Minister of International Trade at Korea & Japan and Karnival MAIJ 2015. JHP also works very closely with State, SME Corporation, MARA, MATRADE, MITI, MIDA, and HDC in its effort to attract local investors to come to us.

 

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