TRADE AND COMMERCE

2005 International Halal Conference - Dusit Hotel Nikko, August 07, 2005

ASSALAMU ALAIKUM. WARAHMATTULLAHI WABARAKATUH!

It is with great honor and privilege that I stand before a gathering of Muslim and non-Muslim delegations from various parts of the world to discuss current trends on Halal Industry both in food and non-food products. I am even more delighted for the opportunity given to the Philippines to host an International Conference like this at this time that we have just experienced some political noise amidst the financial crisis besetting the Philippines and the whole world.

Your theme tonight, “Philippine Halal Industry Towards Globalization,” is indeed timely and relevant. It is refreshing to learn that in the face of all the political noise in our country today, you remain focused on your work.

I agree with you on the direction of the Halal industry – which is to gear up towards globalization. Political crisis or no crisis, we should face the challenges of the global market. There is no other way.

Challenge of Globalization

In the past, globalization has been such a controversial theme.

The pessimists argued that globalization would bring nothing but harm for the Philippine economy. Some even said that globalization would signal the demise of our domestic industry and give rise to untold suffering for our people.

The optimists, on the other hand, saw nothing but opportunities. They embraced globalization in all its forms. It was as if globalization was the medicine that would finally solve the decades-old disease of economic stagnation and backwardness.

To be honest with you, I guess the verdict on globalization remains uncertain.

It is true that there are more imported goods in the country and that some Filipino factories had to close down due to intense competition from abroad. To a certain extent, some of our workers lost their jobs when we opened ourselves to global competition.

But while globalization had costs, it also brought us opportunities – mainly in the form of new markets and new products. Such is the case of our Halal food industry. This is one example where globalization can work in our favor.

The Market for Halal Food

Look at this situation.

Nearly a quarter of the world population is Muslim. There are around 1.5 Billion Muslin consumers all over the world. They are spread out in 112 countries.

In about 70 countries, the Muslim population are the majority. Muslim communities can be found even in non-Muslin countries like Russia (with 26.6 million Muslims), the United States (9.9 million), the United Kingdom (1.6 million), France (4 million), and Germany (2.8 million).

In the Philippines alone, we have a Muslin population of about 12 million.

The Global Halal Trade is estimated at US$ 150 Billion per year.

My friends, these numbers mean one thing for all of us – an exciting market, a very big and profitable market.

This is clearly an opportunity just waiting to be explored. And I am glad to know that the Office of Muslim Affairs is paving the way in this task.

Competing Abroad

Competing in the global market is easier said than done. It requires a national effort, a mobilization of the nation’s will and resources, and the cooperation of key stakeholders.

First, we need to establish a systematic, orderly, and acceptable certification system. Consumers should be able to easily identify products that are certified as Halal.

Second, we should sustain our information campaign to help entrepreneurs realize the potential of Halal as a global product. Let us use technology to link our local producers with industry networks and market contacts in the Philippines and abroad.

Third, we have to improve our process of gathering and disseminating market intelligence. Conferences like this is a good venue for sharing experiences and developing business ties.

And fourth, we should continue to support the Halal industry by providing access to financing and reduced bureaucratic processes. Both the government and the private sector should strive to reduce the costs of doing business to levels that are comparable with our competitors.

Moving Forward

Ladies and gentlemen, globalization is here to stay whether we like it or not.

Today we live in one global community, one inter-related production process, one global market-all connected by faster and more efficient communication and transportation systems.

Let us therefore join hands and take advantage of the opportunities offered by globalization.

Together let us sustain the momentum that this conference has started.

I urge all of you to continue working for the promotion of Halal food in the Philippines and in global markets.

Yes, there is a bright future for the Halal food industry. And that future starts today.

Lastly, I commend the efforts being undertaken by the Office on Muslim Affairs in coordinating and cooperating with exporting country’s government agencies, business sectors and with other International Islamic Organization for the promotion of Halal certified Philippine products. All your efforts will definitely redound to the amplification of the job generation that will be created by the Halal product manufacturers…an effort that actively responds not only to the legacy program of President Arroyo but also to the needs of whole nation.

Maraming salamat at Assalamu Alaikum Warahmattullahi Wabarakatuh! (Thank you and may peace and blessings of Allah be upon you all!)

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