The Potential of Halal Food Factory

18-9-2018 | Space Recce

The Potential of Halal Food Factory

Muslim populations globally spent an estimated $1.24 trillion on Food and Beverage in 2016 which represent a growth of 6.2% from previous year. The spending on Halal food is estimated to reach $1.93 trillion by 2022, a CAGR of 7.6% from 2016. (source: extract from the State of the Global Islamic Economy Report 2017/18)



Halal literally means permissible and it is usually used as lawful. The Halal food Authority rules are based on Islamic Shari’ah. The antonym to halal is haram, which means unlawful or forbidden. When come to halal food, most people will immediate link to prohibition of pork, lard and by-products of pork like ham, bacon and liquor. However, are that all to be Halal food? 

Halal food and drinks are prepared under strict Muslim dietary laws. Halal animals, like chicken, sheep, cattle, fish with scale must be slaughtered by Muslims. A short prayer is said when these animals are being slaughtered. These animals are slaughtered with very sharp knives and in such a way as to effect:

(1) quick death,
(2) thorough drainage of blood,
(3) Aquatic animals like fish need not be slaughtered. These animals die quickly after leave water and do not have much blood as birds and land animals and
(4) Food items with animal gelatine and alcohol are also not permissible

It seems straight forward enough to prepare halal food and get them certified in modern halal food factory with the above guideline. However, the halal industry and the certification bodies seem to have missed out the control of cross-contamination challenges for halal certified products:

(a)   during transportation,
(b)  from the source and
(c)   during processing in Halal Food Factory.

The tracking & tracing from food source, transportation, to warehouses/cold rooms, processing in food factory and to retailer shelf space needs to better understood. Halal certified may become compromise due to cross-contamination during the multiple stages of transport, storage and handling.


Halal Food Factory – Opportunity?

With globalization, it is harder to trace the food from its source. With the global halal food scandals (here and here), the Singapore Halal Food Factory is specifically design to meet the high standard of preparing Halal food and beverage for Halal certification. 

The Halal food sector has matured over the years to have expanded way beyond Halal meat. Candy, ready-made meals, snacks, children’s food and animal feeds are the new growth segment. Although these Halal Food products are now widely available on supermarket shelves throughout the world there are still a huge untapped potential.

The new Halal Food Factory is set-up to help firms get a slice of the global halal food market. The halal food factory would allow companies to share resources for product development, production and distribution for strictly halal food controlled environment. Being backed by Muslim organisation and several Singapore government agencies, this halal food factory will be located at Jurong West to assist companies who are keen to scale up their halal exports.

The halal food factory are well positioned to play a bigger role in this market, given the trust in the quality of Singapore-made products and our Majis Ugama Islam Singapura (MUIS) certification. With the growth worldwide and not all of them successful (see here and here), the Singapore Halal Food Factory give you the strong brand name and safe pessage to penetrate this untapped market.


For more information of this Halal Food Factory and tax incentive for setting up in Singapore, contact Space Recce


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