Nestle eyes ‘vital’ role in halal food industry via helping SMEs

Tuesday August 11, 2009
Nestle eyes ‘vital’ role in halal food industry via helping SMEs


PETALING JAYA: Nestle (M) Bhd wants to play a vital role to boost the halal food industry by helping local small and medium enterprises (SMEs) be competent suppliers to the company.

Managing director Sullivan O’Carroll said, at the same time, Nestle wanted to promote Malaysia as the global halal hub for its products.

“We have the expertise and experience to help local SMEs produce quality products that meet the international standard.

“At the same time SME players will have the opportunity to contribute through supplying of raw/semi-processed materials to us,” he said yesterday at the memorandum of agreement signing ceremony between Nestle, Small & Medium Industries Development Corp (Smidec) and Halal Industry Development Corp (HDC).


From left: SMIDEC chief executive officer Datuk Hafsah Hashim, SMIDEC chairman Datuk Ir. Mohamed Al Amin Abdul Majid, Nestle(M) Bhd technical and production executive director Detlef Krost, International Trade and Industry Minister Datuk Mustapa Mohamed, HDC chairman Tan Sri Datuk Dr Syed Jalaludin Syed Salim, HDC chief executive officer Datuk Seri Jamil Bidin and Nestle (M) Bhd managing director Sullivan O' Caroll after the signing of MOA on Monday.
The strategic collaboration between the three parties is to enhance the capacity and capability development of potential SMEs to become suppliers to Nestle.

O’Carroll said Nestle was currently importing most of its raw/semi-processed materials from Europe and the US for its products and wanted more contribution from the local SMEs.

“Europe and the US, for example, have a very high standard for any food players to be in their market and we need to fulfil their regulatory food standard. We believe Nestle can help the local SMEs reach the standard required by these international markets through our expertise and research and development technology,” he said.

HDC chief executive officer Datuk Seri Jamil Bidin said the collaboration confirmed the common desire of the three parties to cooperate for the purpose of promoting the development of business opportunities for SMEs involved in the halal food and beverages industry in Malaysia.

“Over time, the selected local SMEs suppliers will be able to benefit from the learning curve, compliance of standards, best practices and innovation to enhance their own capabilities and competencies,” he said.

Smidec chief executive officer Datuk Hafsah Hashim said the demand for halal food was increasing globally as more countries, such as Japan, were interested to be part of this industry.

“During our visit to Japan end of last month, five or six Japanese food companies had shown interest in this industry. They were also asking for assistance from HDC regarding halal certification,” she said, adding that one Japanese food company had already set up its facility in Johor Baru while another one was in the process of doing so in Malacca.

Smidec will identify and recommend potential SMEs in the halal ingredient industry to HDC and Nestle based on its evaluation system.

The selected SMEs will then be equipped with the requisite technology and financial assistance to ensure that they fulfil the requirement and meet the specifications set by Nestle to enable them to be considered as suppliers.

Currently, Nestle has about 150 suppliers, of which 40 are local companies and, in terms of value, these 40 companies supply only 10% of its required raw materials and ingredients.