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MAB Kargo Launches Halal Service

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MAB Kargo, a subsidiary of the Malaysia Aviation Group, launched a "halal" logistics service on Sept. 20, after receiving the MS2400-halal certification from Jakim (Jabatan Kemajuan Islam Malaysia) on May 1. Jakim is the agency responsible for Islamic affairs, including halal certification in Malaysia. MAB Kargo also signed an agreement with initial customers: Sejung Group of Korea, Nippon Express (Malaysia), Labuan Halal Hub and Serunai Commerce. 

Halal is an Arabic word that means "permissible." In terms of food, halal designates food that is permissible according to Islamic law. For meat to be certified as halal, it cannot be a forbidden cut, such as meat from an animal's hindquarters. The meat also cannot be pork or from a group of animals that includes amphibians and reptiles, (frogs, tortoises, crocodiles), carnivorous animals, omnivorous animals, sharks or whales. Halal food rules are based on Islamic sharia; the antonym to halal is "haram," which means unlawful or forbidden.

Jakim is tasked with ascertaining the halal status of the product at every stage and at every process involved by carrying out an official site inspection on plants purposely to examine how the halal status of the raw material is maintained and monitored at all times.

MAB Kargo maintains that the newly inaugurated logistics service is tailored to needs of the halal industry for reliable, safe and secure air cargo handling. With this service, MAB Kargo proposes to offer hygienic and secure movement, storage and handling of both food and nonfood material. The MS2400-certification from JAKIM is applicable for MAB Kargo's warehousing and related activities at the carrier's designated area. Apart from meeting the strict requirements, MAB Kargo also initiated additional facilities to maintain segregation and separation between halal and non-halal shipments.

"We are now able to provide the logistics by maintaining the halal integrity of the shipment throughout the supply chain. MAB Kargo also aims at creating a competitive advantage for the country as the main halal corridor that would enhance the trade network linking halal business worldwide," according to Ibrahim Mohamed Salleh, chief executive officer of MAB Kargo, as noted in a press release. "We are now able to provide the logistics by maintaining the halal integrity of the shipment throughout the supply chain.
"MAB Kargo also aims at creating a competitive advantage for the country as the main halal corridor that would enhance the trade network linking halal business worldwide," he added.

MAB Cargo cites a report issued by the International Market Analysis Research & Consulting Group that said the global halal food market value is projected to reach $2.6 trillion by 2023, with the Malaysian flag carrier aiming to capture a substantial part of the halal export market by 2020. The global halal cosmetics market size was estimated at about $23 billion in 2018 and is expected to expand at an annual rate of over 12% through 2025.

While still a projection of robust growth, the annual Thomson/Reuters "State of the Global Islamic Economy Report 2018/19" pegs annual Muslim spend on food and beverages growing at 6.1% per year and forecast to reach $1.9 trillion by 2023. "Regulatory oversight of halal food production is steadily improving, with the UAE and Malaysia taking the lead," according to the report. "More and more products are on offer as ingredients are increasingly halal certified and company portfolios diversify to cater to increasingly sophisticated taste buds," the report adds.

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