Newsletter No. 963
News-Analysis
April 3, 2008

 

BRUNEI TO CERTIFY JAPANESE PHARMACEUTALS AS “HALAL”

When I attended the investment forum in Tokyo last month I was struck by how many of the presenters suggested that their country was a “gateway” to somewhere or something. Well, our attention has been directed by Khaldon Azhari (Shingetsu Member No. 49) of PanOrient News to a recent article in the Nikkei which suggests that some Japanese companies are starting to use the little Sultanate of Brunei as a “gateway” to the Islamic world. The idea seems to be that by partnering with Brunei -- which is said to have good connections with other Muslim countries -- these companies can gain some advantages.

The main evidence for this movement is provided by an interesting new business arrangement centered on the Pharmex Japan Company, which is about to enter into a 50-50 partnership with the government of Brunei. The arrangement calls for Japanese generic pharmaceutical products to be shipped to a plant in Brunei scheduled for completion in 2010. After an inspection by Brunei at that plant, these products will then be slapped with a label saying “Halal” and then re-exported to many places in the Islamic world. According to Pharmex Chairman Osamu Sato, this will allow his company to “take advantage of Brunei's network with the Islamic world, including Saudi Arabia and the United Arab Emirates.”

Brunei currently aims to play a significant role in the global Halal industry, estimated at a value of more than US$500 billion. Brunei’s Ministry of Industry and Primary Resources introduced the nation’s own Halal Brand in 2007 with the cooperation of the Brunei Islamic Religious Council, the Ministry of Religious Affairs, and the Ministry of Health.