The Asia Dialogue 13 July 2012

April 2012

OPENING REMARKS

Tan Sri Halim Saad

Our speakers for today

2

Dato’ Seri Jamil Bidin

CEO, Halal Industry Development Corporation

• The Global Halal Economy & the Malaysia Halal Hub – Opportunities for

New Zealand

Dato’ Yusli Mohamad Yusoff

Vice Chair, Pelaburan MARA Berhad

• Islamic Finance & Halal Currency as an Enabler of Halal Trade

Dr Kathy Lloyd

Market Access Counselor, Ministry of Primary Industries –

Market Assurance Directorate

• New Zealand’s Malaysian Halal Re-certification & its

Implications for Opportunities in Other Islamic Nations

Dr Anwar Ghani

Senior Environmental Scientist, AgResearch, Ruakura Research

Centre

• New Zealand and FIANZ Halal Certification System for Muslim Markets

Our speakers for today

3

Tony Egan

Managing Director, Greenlea Premier Meats

• How Halal Trade Relations Have Successfully Helped New Zealand

Become One of the World’s Leading Exporters of Premium Halal

Products

Mr Kairat Karmanov

Vice Chairman of the Board, The National Agency for Export

& Investment (Kaznex Invest), Ministry of Industry and New

Technologies of the Republic of Kazakhstan

• The Kazakh Halal Market – Emerging Opportunities for New

Zealand

Ahmed Abdul Khalid

Regional Head of Coverage & Partnership for Asia, Islamic Corporation

for the Development of the Private Sector, Islamic Development Bank

• Funding Opportunities for Investment in the Halal Industry

Our speakers for today

4

Associate Professor Manuka Henare

Associate Dean Maori and Pacific Development /

Director, Mira Szaszy Research Centre

Bruce Shepherd

International Trade Development Specialist and Past NZ Trade Commissioner to GCC

States & Consul, Dubai UAE

• New Zealand Iwi & the Halal Economy

Increase in Population

5

UNFPA

World Population

Muslim Population

2000 2015 2030 2050

6.0 bil 7.2 bil 8.3 bil 9.3 bil

2000 2015 2030 2050

1.2 bil 1.6 bil 2.0 bil 2.6 bil

Food Security

6

Prof. John Beddington, Sustainable Development UK 09 Conference, 2009

In 2030, 8.3 bil population

Croplands requirement

France

675,000 km sq

x 2

Water requirement

+ 30%

Food & energy demand

+ 50%

Food imports – OIC countries vs OECD countries

7

Item OECD Countries

(% of Total Import Value)

OIC Countries

(% of Total Import Value)

Cereals 40% 34%

Meat and Edible Meat Offal 66% 10%

Animal, Vegetable Fats and Oils, Cleavage Products,

etc. 47% 18%

Dairy Products, Eggs, Honey, Edible Animal Product 63% 16%

Oil Seed, Oleagic, Fruits, Grain, Seed, Fruit, etc. 43% 11%

Cereal, Flour, Starch, Milk Preparations and Products 70% 10%

Milling Products, Malt, Starches, Inulin, Wheat Gluten 48% 17%

Live Animals 66% 19%

TOTAL (Value) USD 258 bil USD 82 bil

Member Countries 34 countries 57 countries

Population 1.25 billion 1.5 billion

• Average growth of imports in 2010:

• OIC – more than 20%

• OECD – less than 10%

International Trade Centre

• OIC countries has more growth potential for

New Zealand companies to export their

products to.

OIC Countries Foreign Exchange Reserves and Sovereign Wealth Funds

8

Item

Foreign

Exchange and

Gold Reserves

(USD mil)

% of

Top 100

China 3,236,000 29.05

OIC Top 20 1,736,256 15.59

Total Top 100 11,139,446 100.00

Food and Agriculture Organization of the United Nations, CIA world Factbook

31 Dec 2011 figures

ADIA, Abu Dhabi

US 627 bil SAMA, Saudi

US 532 bil KIA, Kuwait

US 296 bil

QIA, Qatar

US 100 bil

ICD, Dubai

US 70 bil

LIA, Libya

US 65 bil IPIC, Abu Dhabi

US 58 bil

RRF, Algeria

US 57 bil

MDC, Abu Dhabi

US 48 bil KNF, Kazakhstan

US 38 bil

KN, Malaysia

US 36 bil SOFAZ, Azerbaijan

US 30 bil

BIA, Brunei

US 30 bil

NDF, Iran

US 23 bil

OIC Top 14 Sovereign Wealth Funds Foreign Exhange Reserves

OIC SWF Top 14 USD 2.01 tril Global SWF Top 30 USD 4.88 tril 41% = = OIC Sovereign Wealth Fund (Top 14) = USD 2.01 trillion

OIC Countries: Lots of Oil, Some Cash, Less Food and Shortage of Water

9

Countries Population

(mil)

FER

(USD bil)

SWF

(USD bil)

Arable

land (ha)

per capita

Water

Total

exports

(USD

bil)

Basis of

Wealth

GDP

(USD

bil)

1. Saudi Arabia 26.53 556.2 444.4 0.16 Shortage 351 Oil & Gas 560.3

2. UAE 5.31 55.3 709.3 0.02 Shortage 265 Oil & Gas 358.1

3. Malaysia 29.18 136.1 36.8 0.07 OK 212 Multi 247.6

4. Indonesia 248.22 116.4 0.3 0.10 OK 208 Multi 834.3

5. Turkey 79.75 91.1 NA 0.33 OK 133 Multi 763.1

6. Iran 18.87 109.7 23.0 0.24 Shortage 131 Oil & Gas 480.3

7. Qatar 1.95 20.4 85.0 0.02 Shortage 104 Oil & Gas 173.2

8. Nigeria 170.12 36.8 1.0 0.23 Shortage 101 Oil & Gas 247.1

9. Kuwait 2.65 28.0 202.8 0.006 Shortage 94 Oil & Gas 171.1

10. Kazakhstan 17.52 34.3 38.6 1.48 OK 89 Oil & Gas 180.1

Halal – Not only food

10

Animal & Animal Products

- Live animals, meat offal, dairy, eggs, honey,

etc.

Agriculture Inputs

- Fertilizers, insecticides, seeds

Vegetable Products

- Edible vegetables, fruit, nuts,

coffee, tea, cereals, etc.

Processed Food & Food Inputs

- Preservatives, sugars & sugars

confectionary, preparations of foods,

food residues, etc.

Consumer Food Services

- Food service & catering, food retailing &

wholesale, etc.

1

2

3

4

5

Foods

Pharmaceuticals & Health

Supplements

- Oral medication, injection, drugs,

anaesthesia, etc.

Personal Care & Cosmetics

- Toiletries, make up, fragrances,

etc.

Clothes, Leather Products &

Accessories

- Shoes, belt, handbag, etc.

Islamic Financing

- Loans, sukuk, ijarah, ar-rahnu, etc.

6

7

8

9

11

Non Foods &

Services

10

Logistics

- Port (e.g. Rotterdam as Halal

Port), warehouse, cold chain,

etc.)

Technology

- Capital goods for halal

manufacturing, processes,

methods e.g. reverse stunning

Halal Industry Development Corporation

What’s In It for New Zealand?

11

New Zealand

What’s in it for New Zealand Producers and Processors?

1. Alliance with OIC countries leveraging on New Zealand’s competitive

advantages

2. At no cost, move towards Halal certification, thus bigger market for products

OIC Countries Strengths:

- High foreign exchange

reserves and Sovereign Wealth

Funds

Weaknesses:

- Excessive focus on oil & gas

wealth

- Food security issues

Competitive Advantage:

- Biotechnology & agricultural

technology

- Food & beverage

- Timber & wood products

Population: 17.5 mil

GDP: USD 180.1 bil

GDP Growth Rate: 2011 7.5%

GDP Per Capita: USD 13,000

Exports: USD 89 bil

- Oil & Gas USD 53 bil (59%)

- Metals USD 17 bil (19%)

- Chemicals USD 4.5 bil (5%)

Arable land (ha) per capita: 1.45 (No 2 in the world)

Agriculture:

Needs investment in agricultural technology

Kazakhstan – Do not ignore

12

Rank Countries

1 Singapore

2 Bahrain

3 Taiwan

4 Qatar

5 South Korea

6 Jordan

7 UAE

8 Oman

9 Malaysia

10 Thailand

11 Kazakhstan

Economic Freedom Ranking 2012

Asia not including Hong Kong & Macau