Malaysia: Malaysia store in Tehran to market Halal goods and services in West Asia

HDC chief executive officer Datuk Seri Jamil Bidin (left) and Neguin Group Executive Director Dr Rahman Abidin

HDC chief executive officer Datuk Seri Jamil Bidin (left) and Neguin Group Executive Director Dr Rahman Abidin

PETALING JAYA: The Halal Industry Development Corporation (HDC) and Neguin Group of Companies of Iran today announced the setting up of 1Malaysia Departmental Store (1MDS) at the Tehran Mega Mall in Iran to position a more effective marketing platform for made-in-Malaysia goods for the halal consumer market in West Asia.While the Neguin Group is engaged in the setting up of the infrastructure of 1MDS, HDC is engaged in the business coaching and marketing of Malaysian SMEs into Iran and the West Asia region. 1MDS represents an excellent platform to a vast halal market potential in Iran for Malaysian SME exports estimated at RM1.85 billion over the next five years from 2011-2015.

In June this year the HDC and the Neguin Group had signed a MoU to collaborate on activities that will further the SME’s capacity-building and marketing prowess worldwide. Iran strategically provides a marketing springboard for Malaysians to reach the halal markets in and around the West Asia region.
The Neguin Group at a news conference also said that 1MDS will be opened for business in mid 2011. 1MDS is aimed to function as a shopping haven where every conceivable halal product and service can be sourced and obtained from Malaysia.

The global halal market is currently estimated at USD2.3 trillion covering both food and non-food sectors while the Iranian Halal market is estimated at USD26 billion.

Malaysian manufactured halal food and beverages, personal care and cosmetics, fashion wear, furniture, fast moving consumer goods as well as restaurants will be among the goods and services available to Iranians at this mega mall developed and built by the Neguin Group.
Speaking at a news conference, HDC chief executive officer Dato’ Seri Jamil Bidin said, “Further to the signing of the MoU, several seminars will take place to offer SMEs market intelligence on doing business there as well as quality marketing strategies and retail programmes required to make the collaboration successful.”

The first of these seminars entitled, ‘The New Halal Frontier Market – Iran and West Asia’ is opened to 350 Malaysian SMEs by public invitation. It will also be attended by the top 20 Iranian retailers and buyers plus representatives from the Iranian Chambers of Commerce who are expected to ‘meet-and-match’ products and services for the Iranian market and beyond.

The Trade seminar and the buying-mission activities will be organised at Matrade, Kuala Lumpur from 24 -25 November 2010 from 8.00 am – 6.00 pm daily.
“At the seminar, a trade export value targeted at RM35 million is to be captured at the end of the meet-the-buyer session while a sales export value targeted at RM15 million with Neguin is also expected at the Malaysian Halal showcase event,” said Datuk Seri Jamil.

“The upcoming seminar is one of many initiatives that the HDC would like to develop and see expanded, as Malaysian companies take to the international arena and penetrate into overseas markets in a more tangible way. We have undertaken considerable marketing intelligence and for Phase 1 of our overall development, we have chosen to focus on Iran and West Asia.

“HDC itself has charted a long term plan covering the same period as the 10th Malaysia Plan, that is from now until 2015. We have identified several areas that we would like to grow and facilitate in a more in-depth fashion for our target groups, particularly the SMEs. Through business matching to be fulfilled at the seminar, we will be able to drive home the collaboration for understanding the marketing requirements in Iran and West Asia more closely.

“The time has come for both Malaysian SMEs to directly meet and interface the Iranian counterparts and establish our local Halal brands with impact and great returns,” said Seri Jamil.

“We are ready to support over 700 high quality export ready SME products with varying Stock-Keeping Units (SKU) across clusters and sectors,” he added.

“This programme with Iran has been researched and thoroughly planned; our market thrust underlies two major activities: firstly, getting the proper consumer recognition for our Malaysian made goods and services particularly for the Halal sector, and secondly, building the SME capacity and retail penetration into new markets. We believe that this collaboration with Iran will bring in full dividends,” said Seri Jamil.

On the 1MDS project, halal goods and services will be given a new shopping impetus and international attention. The industry needs this boost in order to serve the consumer market and industry more efficiently. There is an estimated 3 billion Muslims around the world who would be keen to explore value-add halal products and services that can enrich their lifestyles.

Malaysia’s halal certification is recognised worldwide among Muslim and Non-Muslim countries. It is of ISO compliant standard – MS1500: 2009 (Second Revision) – Standard for the Production, Preparation, Handling and Storage of Halal food, developed by Standards Malaysia. The standard complies with international standards such as Good Manufacturing Practice (GMP) and Good Hygiene Practice (GHP).

Iran is ranked as the second-largest economy in the Middle East and North Africa in terms of GDP – after Saudi Arabia – at about USD330 billion in 2009 and in terms of population – after Egypt – at about 73 million people.