Brunei Darussalam looks to sustain agricultural growth

Rising productivity and higher output from the processing segment is keeping Brunei Darussalam’s agriculture sector on track to meet the government’s medium- and long-term goals.

Strong performance in most areas of the agriculture and agri-foods sector saw the industry’s revenue rise by 6.8% year-on-year (y-o-y) in the first quarter of the year to reach BN$97.1m ($71.2m), according to data issued by the Department of Agriculture and Agri-food (DAA) in late July. This came despite dry weather conditions, which impacted the production of rice, vegetables and cut flowers.

Growth was supported in large part by double-digit growth in the livestock and processed agricultural products segments. Livestock output was up 14.1% y-o-y at BN$6.9m ($5.1m), while processed agricultural goods expanded by 16.9% over the same period, bringing the agri-food segment’s earnings to BN$28m ($20.5m).

By contrast, the broader economy expanded by 3.6% y-o-y in the first three months of the year, the Autoriti Monetari Brunei Darussalam reported at the end of July.

Long-term plan for value-added growth

In its long-term development plan, Wawasan Brunei 2035, the government has set a target of boosting agricultural output to BN$1bn (733.3m) by 2020 and BN$3.9bn ($2.9bn) by 2035 – almost 11 times the sector’s contribution to GDP last year.

While ambitious, the last five years have already seen significant progress in agricultural development. Gross agricultural output increased from BN$230m ($168.6m) in 2010 to BN$366m ($268.4m) last year.

Future growth is expected to be fuelled by a combination of improved technology, higher levels of foreign direct investment in the sector, the use of high-yield crop varieties and the expansion of the downstream value-added component.

Boosting value addition should take on greater importance in the coming years if Brunei Darussalam it to reach its ambitious agricultural targets. With relatively limited land available for agricultural purposes, and the increasing encroachment of built-up areas into farming districts, the Sultanate will have to create more value from the land it has.

The whole country is approximately 577,000 ha in size, with only 7193 ha in use for agriculture as of 2013, according to the most recent figures from the DAA.

Halal niche

A key avenue for bringing in investment and increasing value addition in agricultural production is the Sultanate’s burgeoning halal segment, which feeds into the growing focus on processed foods.

In March of last year Brunei Darussalam invited investors from countries such as China and the UK to take part in a $300m halal industry park, known as the Bio-Innovation Corridor, located north-west of the capital Bandar Seri Begawan.

Led by the Ministry of Industry and Primary Resources, the 500-ha park aims to transform Brunei Darussalam into a regionally and internationally recognised destination for halal industries.

The worldwide halal food market is worth an estimated $1.1trn, according to a study by Thomson Reuters, and is considered one of the fastest food segments in the world.

Growing youth

While specialisation in value-added niches such as halal could go some way towards achieving the government’s goals, a dwindling workforce in rural areas presents something of a challenge.

According to the most recent Labour Force Survey conducted by the Department of Economic Planning and Development, out of a population of 411,900, and a total labour force of 203,600, the percentage working in the agriculture, forestry and fisheries sector was around 0.6% in 2014.

As young Bruneians increasingly opt for professions in urban centres, the ageing of the rural workforce also presents productivity challenges, according to Suria Zanuddin, the head of the agricultural extension division at the Ministry of Primary Resources and Tourism.

“We try to involve and recruit young farmers as most of our current farmers are now ageing,” she told local media at the end of May.

The government is stepping up efforts to reverse the flow of young Bruneians into urban centres by expanding educational programmes and promoting the business opportunities of the agriculture sector through training courses.

At the Rice Farmer Field School, for example, close to 300 paddy farmers have been trained since the programme was founded in 2010.

While the expected increase in technology in the agriculture industry could help ease some of the workforce requirements, primary production is likely to remain a labour-intensive industry, meaning that government efforts to promote farming as an attractive and viable career path will be crucial to developing both food security and the broader sustainability of the sector.


Sumber - Oxford Business Group

Optimistic outlook for halal industry in 2016

By Viraj Perera

KUALA LUMPUR, Dec 31 ― Approximately 25 per cent of the world’s population is Muslim and it is evident that there are segments of global markets that adhere to their religious requirements.

Halal, an Arabic word defined as permissible according to Islamic law, is required in the consumption of both goods and services for Muslims.

The halal industry is a rapidly expanding sector not only in the food and beverage market but also in many other markets including cosmetics and healthcare.

Halal products are found worldwide but the most rapid expansion is being seen in mainland Europe and the US. Halal has thus become a global market force that spans into meat and poultry, food manufacturing, food retailing, restaurant chains, food service industry, logistics and shipping, Islamic banking and finance, standards/auditing/certifications, science and new technologies and personal care products.

Basic requirements to be considered halal for consumer products

While most products such as food, beverages, pharmaceuticals and beauty and personal care products can entail a halal label, clothing and footwear are an exception, and for services only food service can acquire a physical halal certification.

Although this is the case, it is still necessary for Muslims to lead the halal way of life, which means ensuring their consumption, behaviour, dressing, social interactions and every other aspect is aligned with Islamic beliefs.

Forbidden ingredients of halal foods include animals that are dead or dying prior to slaughter, blood and blood byproducts, carnivorous animals, birds of prey, land animals without external ears, animals killed in the name of anything other than Allah.

From a Muslim consumer standpoint, products are deemed halal when they are produced without any forbidden ingredients, be proven to be in the interest of the consumer’s health and wellbeing, must be clean, hygienic and have supply chain integrity.

They must also benefit the community from which they came and all ingredients must be traceable at each stage of production.

Some global trends in the halal industry

According to a Thomson Reuters report, halal food made up nearly 17 per cent  of the total world food market in 2013.  And according to a report commissioned by the Dubai Chamber of Commerce, the global halal market would be worth US$1.6 trillion (RM6.8 trillion) by 2018, an increase from US$1.1 trillion in 2013 and growing at a compound annual growth rate (CAGR) of 6.9 per cent.

The focus imposed on the halal industry in the Middle East is quite notable in the recent times. The UAE is preparing to cater for the growing demand as the UAE government has recently announced setting up of a “Halal Cluster”, a 6.7 million square feet land in Dubai Industrial City, for firms dealing in halal food, cosmetics, and personal care items.

Methods of discovering “haram impurities” in products are rapidly improving. Now, the type of animals that the raw materials are derived from can be identified using polymerase chain reaction (PCR) ― an advanced molecular biotechnology technique that emerged in the 1980s and evolved into a very sophisticated piece of technology for multiple applications.

The PCR has the potential to greatly improve halal integrity, allowing the development of halal supply chains and product tracking.

Malaysia is the global hub of the halal industry and has set up institutions to determine efficacy of halal, deal with the issues of its standards and certification.

These include Jabatan Kemajuan Islam Malaysia (JAKIM) and the Halal Development Corporation (HDC). Malaysia is a leading exporter of pure Islamic products to Muslim countries, China and Western countries where there is large presence of Muslim population.

While Malaysia is in the lead, the other drivers in the South-east Asia (SEA) region include Indonesia, Thailand, Singapore, Brunei, Philippines and China. It is notable that the cultural diversity of SEA as well as emerging diversities in other regions of the world has led to strict halal standards.

The multi-cultural complexion of SEA has stimulated the development of the world’s most advanced halal standards and certification agencies. This has given rise to an industry of halal certification created to attempt to verify any issues that may arise when considering the true definition of halal products.

The presence of certifying agencies is varied across the world. However, with a variety of international disagreements, unique challenges and varying halal development in each country, a unified halal hub remains the ideal goal for the halal industry.

Muslim government-approved certification bodies could enhance a country’s reliability and accreditation. SEA seems to have taken the lead due to the top three globally recognised certifying bodies within it, and many neighbouring countries are building their eco-systems to achieve similar recognition and reliability.

How can technology help the global halal industry?

As was mentioned above, some technologies such as PCR can enhance halal integrity in foods and beverages as well as in personal care products. As such, there are many existing technologies that can be adopted or newly developed solely for the global halal industry.

Halal technologies include personal devices for checking halal  integrity, for traceability, in conducting site audits for compliance and in transportation.

High technology can significantly boost this emerging trillion-dollar market and such technologies can be developed and deployed for the benefit of this market.

What’s next?

PlaTCOM Ventures ― the National Technology Commercialisation Platform of Malaysia ― spearheaded the Halal Hi-Tech Challenge 2015 this year to support the application of high technology in halal industry.

PlaTCOM will be organising the Halal Hi-Tech Challenge 2016 in the coming months in order to further support this growing industry and further helping Malaysian SMEs to develop their innovations for halal-related applications. Stay tuned for more information in the forthcoming issues.


Sumber - Malay Mail Online

‘Muslim nations should lead global halal industry’

MALAYSIA and other Muslim nations should be in the forefront of the global halal industry, said Malaysian Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi yesterday.

Ahmad Zahid said halal was not about one country's agenda but the concerted efforts of many nations.

"These efforts will require, among others, structured capacity building programmes and an efficient and seamless global supply chain to propel halal from its current niche into the mainstream of global economics and industry," he said.

He was launching the two-day Standards and Metrology Institute for the Islamic Countries Halal Conference in Malaysia’s capital of Kuala Lumpur yesterday.

Ahmad Zahid said the halal industry was not confined to food but also covered services, namely finance and banking, insurance, education and training, research, certification, consultancy, logistics and healthcare, as well as travel and tours.

He hoped Malaysia and other Islamic nations would work together, including sharing ideas and knowledge, to lead in the industry.

He said Islamic nations were now lagging behind in seizing halal economy opportunities while non-Muslim international companies were now leading the industry.

"Many Islamic scholars have produced the idea of halal industry, but we are being left behind as the non-Muslim companies are grabbing the market.

"We (Muslim countries) need to be together and synchronise our efforts to be in the forefront of the halal industry," he said, stressing that a holistic approach was needed.

Ahmad Zahid said Malaysia's promotion of the global halal economy was an important element in its Global Movement of Moderates to subdue the Islamophobia that became worse because of the acts of certain terrorist groups.

He said Malaysia's determination to promote the halal industry "went far beyond the commercial aspect", adding the halal industry could project Islam to the global community as the religion that advocated peace.

"With the rising of the Muslim population around the world up to 1.8 billion people, we are not trying to show our supremacy.

"We want to share with the world our halal products...It is also about the global market penetration of the halal industry," said the Deputy Prime Minister.


Sumber - The Brunei Times

Malaysia first to introduce Muslim-friendly tourism

Fitri Shahminan
BANDAR SERI BEGAWAN

MALAYSIA has become the first Muslim nation to introduce and adopt an Islamic Tourism standard in recognising Islamic tourism as a new booming sector of the tourism industry.

A statement sent by Tourism Malaysia in Brunei yesterday said the ‘MS2610:2015 Muslim Friendly Hospitality Services Standards’ for Muslim-friendly hospitality services was initiated in 2012.

Public feedback on the standard was gathered from August to September last year, before it was approved and published by the Science, Technology and Innovation Ministry earlier this year.

Together with the standard, Malaysia also launched the Islamic Tourism Masterclass during an event held at the Putra World Trade Centre.

Using the standard as a guide, the Masterclass focused on sharing knowledge and technical know-how in setting up a systematic assurance system to preserve the integrity of Islamic Tourism Products and Services in three categories – accommodation, tour packages and tourist guides.

The guidelines were developed by the Department of Standards Malaysia in collaboration with the Islamic Tourism Centre to ensure that products and services designed for Muslim travelers, adhered to Syariah principles.

The statement said Malaysia recognises Islamic Tourism is a new booming sector of the tourism industry, recording US$140 billion ($197 billion) in global sales last year, excluding the annual haj and umrah pilgrimage.

The sector is expected to reach US$233 billion in 2020.

Deputy Minister of Tourism and Culture Malaysia, YB Datuk Mas Ermieyati binti Samsudin said Malaysia had been frequently recognised as a leading country for the Islamic Tourism Sector.

“For five consecutive years, we were named the No 1 destination for Muslim travellers through studies conducted by international bodies such as Thomson Reuters, Mastercard and Crescentrating,” the statement quoted her as saying after officiating the standard and Masterclass.

YB Datuk Mas Ermieyati said Malaysia’s strength in the Islamic Tourism sector was attributed to its developed Islamic economy ecosystem.

“We have been able to create and sustain our Islamic values through upwards economic mobility beyond traditional religious values and ethnic diversity,” she said, adding that Malaysia would remain resilient in the highly vulnerable tourism industry.

Malaysia’s lead in the Islamic Tourism industry has also attracted other countries, such as Morocco.

Standard Malaysia Director-General Datuk Fadilah Bahrin said Malaysia also led the world in Halal Standards, developing the first World Halal Standard, MS1500, in 2004, and currently had 13 Halal Standards on various aspects, such as portable water treatment and pharmaceutical.

“All of these standards will be linked to international standards to facilitate international market penetration and enhance global acceptance, in line with our national agenda RMK-11,”she said.


Sumber - The Brunei Times

Oil doesn’t determine country’s welfare, says representative

Danial Norjidi

AS THE 11th Legislative Council (LegCo) meeting drew to a conclusion yesterday, LegCo members delivered their closing remarks.

In his closing remarks, YB Awang Haji Zulkipli bin Haji Abdul Hamid spoke on how the country’s economy faces challenges, with the global oil prices having fallen 50 per cent since last year, considering that oil and gas represents more than 90 per cent of the Brunei’s exports.

However, we should not assume that the oil determines the country’s welfare, he said. “We should learn that among the richest and most developed countries in the world are those that either do not possess or possess very little natural resources.”

“We must take a positive approach and understand the challenges faced during this time as an opportunity to change the situation in a better direction,” he said.

“In the face of the current economic climate is not only the challenge of the government’s financial deficit but also a knowledge deficit, which is in greater need of attention and action.”

He highlighted that the country needs to have the ability to acquire and generate knowledge for improving and moving towards a knowledge-based economy.

Towards this, the country needs quality human capital that is knowledgeable and skilled. He asserted the need to enhance the capacity of Brunei’s human capital in a focused and continuous way.

“The country’s human capital will be the deciding factor of our future prosperity and will allow the country to contribute high added value to the global value chain and the world economy, which will take the country forward and contribute to human development.”

Brunei’s human capital is its most important asset that will be able to shape a brighter and more resilient future, he added.

On his third point, he spoke on the need to put more confidence and belief in our own people to contribute towards the country’s development and progress.

“If not our own people, then who else?” he asked.

Meanwhile, YB Datin Paduka Dayang Hajah Zasia binti Sirin in her closing remarks referred to the point of developing a positive mindset among the people of this country as mentioned in the titah of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam during the opening day of the 11th Legislative Council meeting.

She highlighted that creating this positive mindset “is the responsibility of all parties entrusted as leaders at all levels, including managers, administrators and so on, including, without limitation, members of the Legislative Council in this hall, because we all have been mandated to serve the people and residents categories of various roles.”

YB Awang Haji Ramli bin Haji Lahit, in his closing remarks, spoke in regards to diversifying and developing the economy outside of oil and gas, saying that the agricultural and agrifood sectors along with the tourism industry can be major contributors.

In Tutong, there are many large enterprises being run, such as the farming of shrimp, fish, poulty, quales, buffaloes and goats, as well as fruits and paddy. In addition, the district has a food and beverage processing plant, he said.

“If all these products can be combined in a planned and systematic way, the Tutong district can become a halal hub,” he said.

He noted that the construction of new centres is concentrated in the Brunei-Muara district due to the ease of connectivity with centres administration.

“I hope that this halal hub can be built in the rural areas that are large in Tutong, as this will indirectly promote the area and spur population growth while also providing employment opportunities to the residents of the district.”

He also went on to highlight that the tourism sector can help diversify the economy because it can serve as a way of boosting the market for foreign exchange and promote the products of this country internationally, while also making Brunei a holiday destination that can create more employment opportunities.

“Therefore, if the essential products are assisted, developed and improved, the tourism sector will be able to prove lucrative to the country,” he said.

As examples, he suggested improving the elements of arts and culture in tribal villages, Kampong Ayer, at long houses and also at homestays. He also suggested enhancing and adding to heritage items at museums and galleries.

Ecotourism, however, is the most exciting field in which to develop the country’s tourism sector, he added.


Sumber - Borneo Bulletin

Brunei Darussalam looks to its labs for growth

Increased investment in research and development (R&D), combined with targeting niche markets, are two cornerstones of a strategy being rolled out by Brunei Darussalam aimed at encouraging economic diversification.

The country has long had a commitment to expanding R&D, with the government announcing in 2011 that it intended to step up spending to 1% of GDP. At the time, the government identified the sultanate’s rich biodiversity and educated workforce as key factors in promoting domestic R&D and attracting overseas investors to partner in projects. Under the 10th National Development Plan, launched in 2012, greater emphasis was given to promoting innovation, with funding increased and a focus on using R&D to create marketable products.

The state is moving to meet its commitments, according to Ali bin Haji Apong, the deputy minister at the Prime Minister’s Office and chairman of the Brunei Economic Development Board. Over the next few years, more than $150m of state funding will be provided to support R&D projects, he told delegates attending an ASEAN investment summit in late August.

“A portion of this will be used for a cost-sharing grant scheme where we will look to fund private sector R&D in collaboration with our institutes of higher learning and government agencies in projects with strong commercialisation potential,” he said.

Focusing on halal products

In line with the government’s emphasis on establishing a strong and diverse industry and generating sharia-compliant goods and services to help deliver on this, there has been a focus on R&D for halal products. On September 18 the Ministry of Industry and Primary Resources (MIPR) announced it had signed a memorandum of understanding with biopharmaceuticals firm BioLeaders Corporation. Under the agreement, the South Korean company will work with the Halal Industry Innovation Centre to develop and produce Brunei Darussalam halal-certified products for both regional and international markets.

According to Hajah Normah SH Jamil, the permanent secretary of the MIPR, the joint project will cover all aspects of R&D for new halal products.

“The credibility of the Brunei halal certification has attracted global recognition and encouraged foreign companies to invest in Brunei Darussalam due to its stringent procedures under the certification process for the Brunei halal label,” she said.

Another ongoing research project is aimed at the commercial production of naturally sourced astaxanthin, an antioxidant that is extracted from a form of algae and is used as an ingredient in nutraceutical products. In June the MIPR’s Department of Fisheries and Japan’s Mitsubishi Corporation inked an agreement to cooperate on research to determine if the required microalgae can be cultivated locally, and to work towards developing commercial astaxanthin extraction techniques that are halal.

Mitsubishi has committed $2m to the R&D stage of the project, a figure that could see a further $20m invested if the cultivation is proven to be commercially viable. The initial work on the project is set to be completed by the end of the year, with a decision on whether to move to production to be taken by the middle of 2014, according to Mitsubishi.

Regional gateway

Though it is increasing funding for R&D, the sultanate will face stiff competition from other countries in the region and further afield in its efforts to attract skilled researchers and overseas support. Officials have said that even setting aside of 1% of GDP for such work will amount to only a few hundred million dollars, compared to the billions some countries allocate. However, the government hopes that foreign investors and research agencies will see the sultanate as a gateway to the wider ASEAN market, and even to the broader Muslim community.

It is a strategy that appears to be working, with Chul-Joong Kim, BioLeaders’ chief technical officer, saying the corporation hoped its cooperation with Brunei Darussalam and being associated with the sultanate’s registered halal brand would help it break into the South-east Asia market.

“When we get halal certified, our products could easily be approved by the Muslim society in this region, such as Malaysia and Indonesia,” he told the local media in late August.

Though there are no guarantees that any of the R&D projects under way will deliver commercial success, it does appear that Brunei Darussalam has done its homework in identifying specific areas where there is an opening for new products and is creating a climate in which innovation can flourish.

Dipetik dari - Oxford Business Group

Only 10% public eateries have Halal cert

Harny Abu Khair
BANDAR SERI BEGAWAN

ONLY 10 per cent out of 1,212 public eateries in Brunei Darussalam have been awarded Halal certificates or labels.

This was revealed by the Minister of Home Affairs, Yang Berhormat Pehin Udana Khatib Dato Paduka Seri Setia Ustaz Hj Badaruddin Pengarah Dato Paduka Hj Othman at yesterday's sitting of LegCo.

In providing members of the council with an overview of the number of licensed eateries and those awarded with Halal certificates in all four districts, the minister said that the percentage represented 130 public eateries across the country with the highest number being in Bandar Seri Begawan with 69 out of 494 licensed restaurants in Bandar Seri Begawan halal certified.

Out of 376 public eateries in the Brunei-Muara District, only 36 or 9.6 per cent have Halal certificates while only seven out of 83 in Tutong were awarded and five out of 27 in Temburong.

For the Belait District, none of the 29 licensed public eateries have been awarded the Halal certificate.

For the Belait Municipality, 11 out of 171 public eateries were awarded Halal certificates while in Tutong Municipality, only two out of 32 public eateries have obtained the certificates.

The minister explained that according to the Halal Food Control Unit, Syariah Welfare Department under the Ministry of Religious Affairs (MoRA), only 410 applications for the Halal certificates had been submitted.

"The number includes non-public eateries and so far only 150 certificates have been issued."

"This means the majority of public eatery proprietors have yet to submit their applications for the Halal certificate," he said.

"I would like to advise public eatery operators to immediately submit their applications and get their Halal certificates before the new regulation is enforced next year."

"This is where every eatery operator must get their Halal certificates before they can renew the miscellaneous licence for their restaurants," he said.

Follow-up by the relevant departments would only be carried out in genuine cases, where there is delay in issuing miscellaneous licences to operators who have already applied for the Halal certificates, he added.

"However those who refused to apply for Halal certificate, then they are blatantly ignoring the new regulation and this means they are operating without licences and will have to face the risks (of having their eateries closed)," he said.

Dipetik dari - The Brunei Times