Sino-Malaysian JV established to target Muslim market

FE Team | Published: April 24, 2011 00:00:00 | Updated: February 01, 2018 00:00:00

YINCHUAN, April 23 (Xinhua): Northwest China's Ningxia Hui autonomous region has revealed ambitions of expanding the overseas presence of its Muslim product industry by establishing a Sino-Malaysian joint venture specialising in developing products for the Muslim market. The Ningxia-Fahim International Halal Industry Co Ltd, which started operations last Wednesday, was invested jointly by Ningxia Agricultural Comprehensive Investment Co Ltd and Malaysia Fahim Science and Technology Co Ltd. NACI held a 51-per cent stake in the joint venture, but the total investment was not given. Wang Zhengwei, chairman of the Ningxia Hui autonomous region, hopes the joint venture can use the Malaysian company's influence in the International Halal Association to raise global awareness of Muslim-oriented products manufactured in Ningxia, thereby boosting the local economy. Under their agreement, the two investors will focus on the construction of a production base, research and development of new products, technical training, e-commerce and facilitating the mutual acceptance of Muslim products manufactured in Ningxia and Malaysia. Ningxia, which has China's highest population of Muslim people, is a domestic base of Halal food and Muslim products. Nearly 10,000 companies are now engaged in catering to this industry, generating more than 20 billion yuan (3.7 billion US dollars) in aggregate yearly industrial output. More than 80 per cent of Ningxia's catering business was generated by Halal food. "For a long time, however, the development of Ningxia's Halal food industry has been hampered by the lack of internationally-recognized certifications," Wang said.