Malaysia: HDC and Nippon Express Malaysia Sign MoU to Boost Halal Logistics

Press Release: Kuala Lumpur, 19 September 2024

Halal Development Corporation Berhad (HDC) and Nippon Express (Malaysia) Sdn Bhd (NX) have officially entered a Memorandum of Understanding (MoU) today, marking a significant milestone in their strategic partnership aimed at advancing Halal logistics.

The MoU was signed at HDC’s Pavilion at the Malaysia International Halal Showcase (MIHAS) 2024 and establishes a collaborative framework to harness the expertise and resources of both organizations to bolster Malaysia’s position in the global Halal market.

HDC, as a leading entity in Malaysia’s Halal economy, is dedicated to developing a comprehensive Halal ecosystem with the goal of positioning Malaysia as a competitive leader in the global Halal industry.

On the other hand, Nippon Express, headquartered in Japan, is renowned for its extensive global logistics network and services, including air and ocean freight forwarding, land transportation, warehousing, and customs clearance.

The ceremony was attended by Chairman of HDC, Khairul Azwan Harun, HDC CEO, Hairol Ariffein Sahari and Nippon Express was represented by its Managing Director, Mr. Hideki Nagaoka and Executive Director Mr. Mervin Yee.

“We are delighted about the potential of this partnership with Nippon Express,” said Azwan, who witnessed the signing ceremony. “This collaboration is a crucial step in our mission to elevate Malaysia’s position in the global Halal logistics arena and complement the overall Halal economy,” he added.

The main objective of this MoU is to create a strategic alliance between HDC and NX to drive forward the Halal logistics industry. The collaboration will focus on the development of a sustainable Halal Logistics Platform, with the World Expo Osaka 2025 serving as a significant milestone for this initiative. This platform aims to integrate and enhance Halal logistics capabilities on a global scale.

The Halal Industry Master Plan (HIMP) 2030 has identified halal logistics as one of the promoted sectors for growth and development. Under HIMP 2030, several initiatives are being implemented to promote and enhance the halal logistics sector in Malaysia, one of the initiatives is developing comprehensive halal standards. Malaysia has introduced standards like MS2400:2010 to provide guidelines for halal logistics operations.

In addition to developing the platform, the partnership will also emphasize fostering innovation within the Halal logistics sector. Both organizations will work together to engage various stakeholders within the Halal logistics ecosystem to generate new ideas and create additional value. This collaborative effort is intended to address current challenges and explore new opportunities for growth and development within the industry.

“Our partnership with HDC represents a strategic enhancement of our logistics solutions tailored for the Halal industry. We are eager to contribute our global expertise to this promising venture,” Hideki Nagaoka remarked.

Halal logistics plays a crucial role as a critical control point in the halal supply chain by ensuring product integrity through segregation, traceability, compliance with standards, and effective risk management. Addressing challenges related to certification complexity, standardization, and training will be essential for enhancing the effectiveness of halal logistics operations globally.

In 2023, Malaysia’s total halal exports reached RM54 billion, with exports to Japan specifically amounting to RM2.62 billion for palm oil derivatives and halal ingredients. This figure indicates a strong foundation for further growth.

Japanese companies are increasingly focusing on halal logistics, particularly in collaboration with Malaysia, which is recognized as a global halal hub. This trend is driven by the growing demand for halal products, including food, cosmetics, and personal care products.