Malaysian incubator signs deal to boost China’s halal exports

By RJ Whitehead

- Last updated on GMT

Malaysian incubator signs deal to boost China’s halal exports

Related tags People's republic of china

A Malaysian technology and energy incubator has agreed to collaborate with companies in Hong Kong and China to produce and market halal-certified foods internationally.

In a stock market filing, Asia Bioenergy Technologies said its Asiabio Capital subsidiary had signed a memorandum of understanding with YRZC International, Shan Xi Hong Hui Food (SXHHF) and Shan Dong Wang Jia Yuan Zi Halal Food Brewing (SDWJYXHFB) last week to “establish collaboration and explore opportunities to develop, produce and export halal-certified food products to the global marketplace​.”

The agreement slots into China’s “One Road One Belt​” economic policy, which aims to see 65 countries across Asia, Africa and Europe linked commercially by land and sea—albeit with a halal spin.

This signifies our intention [to build] physical support and infrastructure for a halal food and product hub in China​,” said AsiaBio Capital’s David Chen Kon Fook. 

We have identified YRZC as our exclusive business development agent for such a purpose, and aim to tap into the expansive network via our diverse incubatees​,” he added. 

One of these, NetX Holdings, recently announced its intention to build a similar e-commerce halal marketplace in Hangzhou, having acquired a controlling stake in China-based Flavours of Malaysia, which markets speciality Malaysian products in the Far East.

Flavours of Malaysia will establish new fulfilment centres in Hangzhou which will “conduct research and development on Chinese national acceptance of Malaysian products and to use the research findings to acclimatise the product to suit the local taste buds​,” NetX said in a statement.

Under the terms of the latest agreement, Asiabio Capital will act as a halal-certified “channeling centre​” and regulatory liaison body for product development and quality, while YRZC of Hong Kong, which is involved in a number of diversified fields from television production to brand marketing and promotion, has been appointed as an exclusive business development agent in China. 

Together, these companies will take SDWJYXHFB and SXHHF products and apply for Halal-certified licences from the Malaysian halal regulator, Jakim. 

SDWJYZHFB, located in Shandong, China, is mainly a halal food brewing company with jujube vinegar as its main product.

Shaanxi Weinan City-based SXHHF, meanwhile, operates in baked goods, sesame seeds, bakery flours and sugar production.

All parties will carry out research and development on the new product lines which will be integrated with both Chinese Culture and Islamic religious doctrine in order to create a brand which is ‘trusted’ and halal-certified​,” he filing said.

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