ACCESSING THE ASIA MARKET HARMONISING INTO THE HALAL

ACCESSING THE ASIA MARKET HARMONISING INTO THE HALAL SUPPLY CHAIN MALAYSIA - CHINA - HONG KAZAI INNOVATIVE IDEAS SOLUTION This document is the property of Kazai Innovative Ideas Solution. Neither the whole nor any part of this document may be reproduced, stored or transmitted in any forms or by any means without written permission from the originator. This document is designed to provide information in relation to the subject matter covered for this presentation and should not be used for any other purpose. Whilst every care has been taken in its preparation, no person should draw conclusions purely on the basis of the material contained herein. If assistance is required, reference should be made to the professional of Kazai Innovative Ideas Solution.

MUSLIM POPULATION Source: Bank Negara Malaysia Halal Ecosystem Prospects for Global Growth 2015; Thompson Reuters State of the Global Islamic Economy Report 2015/2016 Engaging HALAL Opportunities

PHYSICAL PURCHASE TREND Engaging HALAL Opportunities URBAN EXPATRIATE LOCAL HIGH INCOME MEDIUM INCOME LOW INCOME ü Affordable to look for high quality products ü Looking for low price with quality products ü Branded / imported products ü Selective to look for budgetable yet quality products ü International manufactured products in demand ü International manufactured products ü Imported / local products ü International and/or local manufactured products ü Local manufactured products

ONLINE PURCHASE TREND • 2. 5% from total urban population in Malaysia and Brunei purchase good quality/imported products • 50% from Malaysia population are online shoppers (more than 50% buying imported apparel, foods, health and beauty products) • About 34% of Chinese population purchase online products, with 58% buying imported goods of apparels and foods • Consumer product interest: - Food products (muesli bar, grains, tea, coffee) - Apparels (women and children) - Beauty products Source: www. chinainternetwatch. com; MIDA Engaging HALAL Opportunities

EFFECT ON HALAL AWARENESS Engaging HALAL Opportunities • Demand for Halal certified products ISLAMIC FINANCE MALAYSIA * Thompson Reuters State of the Global Islamic Economy Report 2016/2017 FOOD & BEVERAGES TOURISM CHINA / HONG KONG PHARMACEUTICALS & COSMETICS FACTORS FORCING INCREASE DEMAND OF HALAL CERTIFIED PRODUCTS ü ü Lifestyle choice for quality assurance Greater variety in the markets Safe, quality, hygiene consumer products Overall process monitored regularly by authorised agency / body

Engaging HALAL Opportunities YOUR SOLUTION PROVIDER HALAL CERTIFICATION REQUIREMENT REGULATORY BONDED WAREHOUSE HALAL VALUE CHAIN B 2 B PLATFORM B 2 C PLATFORM

HALAL CERTIFICATION REQUIREMENT Engaging HALAL Opportunities • Component in Malaysia (JAKIM) Halal Certification 30% Sharia Compliance Ø Management Responsibility Ø Source of Ingredients Ø Processing and Handling HALALAN THOYYIBAN 70% Thoyyiban Compliance Ø Good Manufacturing Practice Halal certification is an extension to the international code of practice on manufacturing and food safety - Premise, Personnel, Equipment - Process, Cleanliness - Logistics, Warehouse Ø Food Act; Food Hygiene; HACCP Ø Other Regulatory requirement (DVS, NPCB, etc)

HALAL CERTIFICATION REQUIREMENT • Malaysia (JAKIM) Halal Certification Schemes Slaughterhouse Food product/drinks/ supplement Food premise/eating establishment Consumer products Cosmetic and toiletries Pharmaceutical Logistic Engaging HALAL Opportunities

EX AM PL E Engaging HALAL Opportunities

HALAL CERTIFICATION REQUIREMENT Engaging HALAL Opportunities • Component in Malaysia (JAKIM) Halal Certification and Enforcement Unauthorised usage of Halal logo

REGULATORY Engaging HALAL Opportunities • Malaysia Import regulations Source: www. customs. gov. my PROHIBITION/RESTRICTION OF IMPORTS The following goods are absolutely prohibited from importation: • Reproduction of any currency note, bank note, or coin which are currently been issued in any country. • Indecent printings, paintings, photographs, books, cards, lithographic, engravings, films, video tapes, laser discs, color slides, computer disc and any other media. • Any device which intended to be prejudicial to the interest of Malaysia or unsuited with peace. • All genuses of Piranha fish. • Turtle eggs. • Cocoa pods, rambutans, pulasan, longan, and nam fruits from Philipines and Indonesia. • Intoxicating liquors containing more than 3. 46 milligrams per litre in any lead or in any compound of copper. • Daggers and flick knives. • Broadcast receivers capable of receiving radio communication within the ranges (68 - 87) MHz and (108 - 174) MHz • Sodium arsenate. • Cloth bearing the imprint or duplicate of any verses of the Quran. • Pen, pencil, and other articles resembling syringes. • Poisonous chemical • Lightning arresters containing radioactive material. The importations of goods specified below are prohibited except under an import licence or permit from relevant authorities: • Egg in the shells. • Any meat, bones, hide, skin, hoofs, horns, offal or any part of the animals and Poultry. • Live animals-primates including ape, monkey, lemur, galago, potto, and others. • Explosives and Fireworks • Imitation arms, toy gun / pistols. • Imitation hand grenades. • Arms and ammunition other than personal arms ammunition imported by bona fide traveller. • Bullet proof vests, steel helmets and other articles of clothing as protection against attack. • Soil and pests including live insects, rats, snails, and cultures of plant disease causing organisms. • Safety helmets (except as worn by motorcyclists or motorcycle pillion riders). • Video machines excluding game watches and video games for use with television receiver. • Motor vehicles. • Batik sarong. • Rice and padi including rice products. • Equipment to be connected to a public telecommunication network. • Radio communication being used for telecommunication in the frequency lower than 3000 GHz. • Saccharin and its salt. • Parabola antenna for outdoor use. • Pests and organisms which are capable of being injurious to plants. • Live fish. • Animal oils and fats. • Plants include parts and plant products. • Household and agricultural pesticides. • Electric domestic equipments that use 50 volt or 120 volt Dc or more • Toxic and/or hazardous wastes. • Corals, alive or dead. • Apparatus/equipment for the brewing of beer in the home. • Pharmaceutical products ILLICIT DRUGS - THE PUNISHMENT FOR DRUG TRAFFICKING IS DEATH BY HANGING. Import and export of illicit drugs (eg: morphine, heroine, candu, marijuana, etc. ) are strictly prohibited. Prescribed drugs can only be imported into or exported from the country by virtue of a licence issued by the Ministry of Health, Malaysia.

REGULATORY Engaging HALAL Opportunities • Malaysia Export regulations Source: www. customs. gov. my PROHIBITION/RESTRICTION OF EXPORTS The following goods are absolutely prohibited from exportation: • Turtle eggs. • Rattan from Peninsula of Malaysia. The following are some of the goods which require an export licence/permit from relevant authorities: • Any animal or bird, other than a domestic animal or domestic fowl, whether alive or dead or any part thereof. • Live animals from bovine species. • Poultry. • Meat of bovine animals. • Cockles. • Plants including orchids. • Vegetables, fresh, chilled or frozen in excess 3 kg per consignment. • Palm kernels and palm seeds. • Military clothing and equipment. • Arms and ammunition. • Antiquities as defined or stated in any written law in Malaysia. • Sugar and rice • Coral, alive or dead. • Live prawns/shrimps/fish. • Collections of zoological, botanical, mineralogical, anatomical, historical, archaeological, or ethnographical with numismatic interest. Malaysia is also a member of : • AFTA (ASEAN Free Trade Area) • APEC (Asia-Pacific Economic Cooperation) • ASEAN (Association of Southeast Asian Nation) • WTO (World Trade Organisation)

REGULATORY Engaging HALAL Opportunities • China and Hong Kong RESTRICTED ITEMS TO HONG KONG AND CHINA • Beverages with an alcoholic strength above 30% at 20"C Receiver to provide import licence or pay duties. State alcohol content, age, quantity, volume and brand for exemption proof, licence application or duty rate calculation. Transit shipments: obtain permit. • Animal products including skins and leather goods and ivory Clearly state kind of commodity (i. e. made with what kind of animals - scientific names), or shipment will be subject to inspection. lnvolving endangered species including ivory: provide Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) certificate, import licence and/or certificate of origin. • Biological Substance Category B, UN 3373 Import and transit may require permit issued by Hong Kong's Department of Health. Transit shipments with non-infectious content not exposed to infectious agents: declare explicitly on invoice. • Circuits & circuit boards, computer components, parts and software, electronic equipment, radar equipment including transmitters & receivers and telecommunications equipment State technical details on invoice. Telecommunications equipment: receiver requires import licence from Hong Kong's Office of the Communications Authority (OFCA). • Drugs: prescription and non-prescription, medical samples, medical / dental supplies and equipment Receiver requires import licence from Hong Kong's Department of Health. • Diplomatic mail Send as goods. Clearly show shipper and receivers‘ details on Waybill; state shipment is diplomatic mail, and/or relate d to foreign affairs. • Foodstuffs and other perishables including fresh milk, excluding canned or dry foods Subject to inspection. State commodity type on invoice. Fresh milk: provide milk licence; powdered formula: provide export licence. • Mobile phones, accessories and components Receiver requires import licence from Hong Kong's Office of the Communications Authority (OFCA). • Rice Receiver requires import licence from Hong Kong’s Trade and Industry Department. • Seeds Provide Phytosanitary Certificate. • Tobacco Dutiable unless receiver holds import license. For asbestos, carnet shipments, chemicals including drugs and X-ray machines, to contact DHL Customer Services before shipping.

REGULATORY Engaging HALAL Opportunities • China and Hong Kong GOVERNMENT REQUIREMENT Certificate of Origin (CO) This certifies the place of manufacture of the exported goods to meet the requirements of the importing authorities. Prepared by: Trade and lndustry Department and five Chambers of Commerce [1] Certificate of Origin Generalized Systems of Preferences (GSP) Form A (or as Form A) A CO to support the claim for preferential tariff entry (a reduced or zero rate) of the exporting country's products into the GSP donors under the GSP they operate. ln general, a Form A is issued only when the goods concerned have met both the origin rules of the preference receiving country as well as the origin criteria of the respective donor country's GSP. Prepared by: Trade and lndustry Department and five Chambers of Commerce lmport / Export Declaration A statement made to the Director of Customs at port of entry / exit, declaring full particulars of the shipment, eg. the nature and the destination / exporting country of the ship's cargo. lts primary use is for compiling trade statistics. Prepared by: exporter / importer lmport / Export Licence A document issued by a relevant government department authorising the imports and exports of certain controlled goods. Prepared by: Trade and lndustry Department, Customs & Excise Department, etc lnternational lmport Certificate (ll. C) A statement issued by the government of country of destination, certifying the imported strategic goods will be disposed of in the designated country. ln Hong Kong, it is issued only to meet an exporting country's requirement. Prepared by: Trade and lndustry Department Delivery Verification Certificate (DVC) A statement issued by the government of country of destination, certifying a specific strategic commodity has been arrived in the designated country. ln Hong Kong, it is issued only to meet an exporting country's req uirement. Prepared by: Trade and lndustry Department Landing Certificate A document issued by the government of country of destination, certifying a specific commodity has been arrived in the designated country. ln Hong Kong, it is issued by the Census and Statistics Department. Application requirements include letter stating the reason for the application, import declaration & receipt; bill of lading, sea waybill & land manifest; supplier's invoice; and packing list (if any). Prepared by: Census and Statistics Department Customs lnvoice A document specified by the customs authorities of the importing countries stating the selling price, costs for freight, insurance, packing and payment terms, etc, for the purpose of determining the customs value. This is the general requirement. Requirement may vary depending on product and place of origin.

OPPORTUNITIES AND SOURCES • B 2 B platform covering Malaysia. HK-China-Dubai • Bonded warehouse facilities for the 4 countries • Product pavilion in Tianjin, China and Dubai, UAE for products from Malaysia, China and other participating countries who intend to use our services Engaging HALAL Opportunities

CONSUMER ENGAGEMENT • Utilising the e-Halal. com platform Engaging HALAL Opportunities

CONSUMER ENGAGEMENT • The e-Halal. com platform Engaging HALAL Opportunities

OUR SERVICES • Malaysia Halal certification awareness and compliance training programmes, preapplication advisory • Halal park development • Halal product management & trading services • Halal talks and forum for universities and colleges • Strategic partner to JAKIM Engaging HALAL Opportunities

Engaging HALAL Opportunities KAZAI INNOVATIVE IDEAS SOLUTION (002334890 -K) SUITE 324 MBE ALAMANDA, LOT KP 0203 B SOUTH CAR PARK, LEVEL P 2 ALAMANDA SHOPPING CENTRE JALAN ALAMANDA PRESINT 1, 62000 PUTRAJAYA, W. P. PUTRAJAYA, MALAYSIA Email : kazaiideas@yahoo. com Email: www. kazaiideas. com For more details, please contact: +60 -19 -258 -6566 (Zaizalina)