Marco Tieman. Pic from LBB International
KUALA LUMPUR: Malaysia must spearhead the development of a comprehensive halal logistics ecosystem by pushing for the establishment of a first-ever global private standard in logistics.
LBB International chief executive officer Marco Tieman stressed the urgent need to coordinate the halal logistics standards in the ports and shipping industry, given the lack of standardised halal protocols for sea freight despite the global use of the Harmonised System (HS) code for classifying goods.
Speaking to Bernama in an interview, Tieman urged Malaysia to take the lead, leveraging its strong background in halal certification.
This way, the nation could capitalise on the vast global halal market -- set to be worth a staggering US$5 trillion by 2030 –and strengthen its leading position in the production, storage and exports of halal products worldwide.
The booming eCcommerce sector should serve as a springboard for the country to spearhead the development of a comprehensive halal logistics ecosystem and set up a global private standard.
The global halal market promises immense opportunities for players to advance the halal ecosystem.
A global private standard can serve as a guideline for handling halal product consignments – from the moment of arrival at the port to warehouse storage and final-mile delivery, according to shipping industry sources.
Private standards and their influence on trade have risen steadily since the 1990s, driven by globalisation, policy liberalisation, changing consumer preferences and advancements in information technology.
Similarly, changes in consumer purchasing patterns and preferences have significantly expanded the consumption of halal products, leading to a steady increase in global demand.
Malaysia must push for advancement in logistics as its halal exports alone were valued at RM54bil in 2023, underscoring the nation’s vital role in the growing sector.
However, Tieman acknowledged that the development of a halal logistics ecosystem can be challenging.
“It is crucial to address the recognition of halal goods transported by sea, as the International Maritime Organisation (IMO) does not have a classification for halal products in its system.
“The same applies to the HS customs code, which categorises various products but lacks a specific category for halal goods.
“This is a missing link in the halal supply chain.”
According to Tieman, as part of the IMO, Malaysia should propose for the organisation to have a specific halal code while spearheading halal exports.
To this end, Malaysia should advocate the establishment of a committee to develop a halal code, co-signed and supported by other Organisation of Islamic Cooperation member countries.
“That’s how the voting system works at the global level. As a global leader in halal supply chain standards, it is only logical for Malaysia to take the lead in this initiative,” he added.
