MARKET Prepared by: PROF. DR. FARIDAH HJ. HASSAN Fazli Azwan - PowerPoint PPT Presentation

TECHNOPRENEURS AND CAPITAL MARKET Prepared by: PROF. DR. FARIDAH HJ. HASSAN Fazli Azwan Manaff Bin Md. Fajar INQKA, UNIVERSITI TEKNOLOGI MARA/ VICE PRESIDENT WORLD ACADEMY OF ISLAMIC MANAGEMENT (WAIM) profdrfaridah@gmail.com +60193200436 Indonesia Halal Lifestyle Center INHALIFE in collaboration with The Central Bank of Indonesia (Bank Indonesia) @ International Halal Lifestyle Conference and Business Forum held on November 13th and 14th, 2019.

OUTLINE • Technopreneur – Introduction • Halal – Introduction • ASEAN Updates • ASEAN – USA – China War • Halal Industry • Halal – Challenges and Opportunities • Investing in Halal Businesses • Islamic Capital Market • Halal – Government’s Role • Conclusion

1.TECHNOPRENEUR – INTRODUCTION ENTREPRENEURSHIP The practice of consistently converting good idea into profitable commercial ventures. Source: Peter F. Drucker, Innovation and Entrepreneurship

TECHNOPRENEURSHIP • The use of technology as an integral and key element in the transformation of goods and services. • Technopreneurship is not just about technology alone; but is about how to manage that technology in order to achieve superior value for the customer (how to use technology [ICT] to improve value). • Also known as cyberpreneurship or netpreneurship or technology entrepreneurship. Source: Peter F. Drucker, Innovation and Entrepreneurship N E T W O R K C H A I N & T E C H N O P R E N E U R S

TECHNOPRENEUR • Technopreneur can be defined as “ an entrepreneur with the skills and mindsets to deal with a knowledge economy ” . • Technopreneur: People who shift economic resources up the value chain. • This value chain is customer focused, the focus is not in developing complex products or technology but on developing a product or service that offer higher value to the customer. N E T W O R K C H A I N & T E C H N O P R E N E U R S

2. HALAL - INTRODUCTION PRINCIPLES OF HALAL 1. All things created by Allah S.W.T are Halal, with few exceptions. 2. To make Halal or haram is the right of Allah alone. 3. Prohibiting what is Halal and permitting what is haram is similar to ascribing partners to Allah. 4. The basic reasons for the prohibition of things are due to impurity and harmfulness. 5. What is Halal is sufficient and what is haram is superfluous. N E T W O R K C H A I N & T E C H N O P R E N E U R S

PRINCIPLES OF HALAL (cont.) 6. Whatever is conducive to the haram is in itself is haram. 7. Falsely representing haram as Halal is prohibited. 8. Good intention do not make the haram acceptable. Islam does not endorse employing haram means to achieve praiseworthy ends. 9. Doubtful things should be avoided. 10.Haram things are prohibited to everyone alike. 11.Necessity dictates exception. N E T W O R K C H A I N & T E C H N O P R E N E U R S

HALAL MARKET DRIVER Source: International Trade Centre T E C H N O P R E N E U R S & C A P I T A L M A R K E T

3. ASEAN UPDATES ECONOMIC COMMUNITY BLUEPRINT 2025 The following interventions will be considered to promote deeper integration of the FAF sector in the region and the world through, among others: (i) enhancing trade facilitation and economic integration; (ii) strengthening cooperation and capacity for sustainable production; (iii) enhancing agricultural productivity; (iv) increasing investment in agricultural science and technology; and (v) ensuring the involvement of agricultural producers in globalisation process. Strategic measures include the following: vii. Further enhance cooperation in production and promotion of Halal food and products; … Source: ASEAN Economic Community Blueprint 2025 N E T W O R K C H A I N & T E C H N O P R E N E U R S

SURVEY REPORT STATE OF SOUTHEAST ASIA: 2019 1. The ASEAN Studies Centre at ISEAS-Yusof Ishak Institute conducted the “ State of Southeast Asia: 2019 ” online survey to seek the views of Southeast Asians on regional affairs. 2. The survey used the purposive sampling method, canvassing views from a total of 1,008 Southeast Asians who are regional experts and stakeholders from the policy, research, business, civil society, and media communities. 3. As such, the results of this survey are not meant to be representative. Rather, it aims to present a general view of prevailing attitudes among those in a position to inform or influence policy on regional political, economic and social issues and concerns. Source: ASEAN Focus, Issue 1/2019 N E T W O R K C H A I N & T E C H N O P R E N E U R S

Perception of One Belt One Road (OBOR) Source: ASEAN Focus, Issue 1/2019 N E T W O R K C H A I N & T E C H N O P R E N E U R S

Which country/regional organisation has the most influence economically in Southeast Asia? Source: ASEAN Focus, Issue 1/2019 N E T W O R K C H A I N & T E C H N O P R E N E U R S

Which country/regional organisation has the most influence politically and strategically in Southeast Asia? Source: ASEAN Focus, Issue 1/2019 N E T W O R K C H A I N & T E C H N O P R E N E U R S

Trust rankings of the major powers in Southeast Asia Source: ASEAN Focus, Issue 1/2019 N E T W O R K C H A I N & T E C H N O P R E N E U R S

4. ASEAN – USA – CHINA WAR

Manufacturers are switching production and imports away from US and/or China to avoid tariffs MALAYSIA INDONESIA Maritime and shipping Steel and aluminium LNG Electronic integrated circuits Chemical products Winner Machine parts and components Loser Solar panels Source: ASEAN Focus, Issue 1/2019 N E T W O R K C H A I N & T E C H N O P R E N E U R S

ASEAN ’ s Trade with China and the US as Share to Total Trade in 2017 (in %) Source: ASEAN Focus, Issue 1/2019 N E T W O R K C H A I N & T E C H N O P R E N E U R S

Source: ASEAN Focus, Issue 1/2019 N E T W O R K C H A I N & T E C H N O P R E N E U R S

Industries Most Likely Affected from a US-China Trade War MALAYSIA INDONESIA Palm oil and exports Base metals and articles Possible gain in chemical & LED Local steel industry (diverted products exports to the US steel exports from other countries) Solar panel exports ( 30% tariff) Machine parts and components sold from China to the US Gain Loss Electronics (China is a large trading partner on electronics) Mixed Source: ASEAN Focus, Issue 1/2019 N E T W O R K C H A I N & T E C H N O P R E N E U R S

5. HALAL INDUSTRY COUNTRIES BEST-POSITIONED TO CAPITALIZE ON THE ISLAMIC ECONOMY 0 20 40 60 80 100 120 140 1 Malaysia 2 UAE 3 Bahrain 4 Saudi Arabia 5 Oman 6 Jordan 6 Qatar 6 Pakistan 9 Kuwait 10 Indonesia Source: State of the Global Islamic Economy Report 2018 - 2019 N E T W O R K C H A I N & T E C H N O P R E N E U R S

HALAL EXPORTS (IN BILLIONS OF DOLLARS) Source: DinarStandard, ITC Trade Map data, Halal Industry Development Corp. N E T W O R K C H A I N & T E C H N O P R E N E U R S

GROWTH OF THE HALAL ECONOMY (IN TRILLIONS OF DOLLARS) Source: State of the Global Islamic Economy Report 2018 - 2019 N E T W O R K C H A I N & T E C H N O P R E N E U R S

IMPORTANCE OF HALAL INDUSTRY TO THE MUSLIM WORLD 01 Obligation Obligation to God and Religion Market More than 80% gap between demand and production 02 Potential of global Halal products The Halal industry provides broader job opportunities 03 People Welfare and increase the safety of products Economic 04 Halal gives added value, promotes trade and Welfare investment Domestic Muslims nation are net importer of various products, 05 Demand including Halal products N E T W O R K C H A I N & T E C H N O P R E N E U R S

WHAT INDUSTRY INVOLVE HALAL? TRADITIONAL MALAYSIA EMERGING • Processed food and • Cosmetics, personal care and beverages healthcare products • Organic and non-organic • Tourism services ingredients • Modest Fashion • Logistics services N E T W O R K C H A I N & T E C H N O P R E N E U R S

CORE HALAL SECTORS AND EMERGING PRODUCTS SEGMENTS Cosmetic & Personal Healthcare & Food & Beverages Care Pharmaceutical Medical tourism services Oils & Fats Plant based products Preventive medicine e.g. Organic Foods Male grooming vaccines Substitute ingredients On-demand consumer Nano based drug delivery services system Effective microbes Nano encapsulated drugs and Substitute ingredients Nano enable packaging therapeutics Nanotechnology chips implants, tubes for synthetic neurons N E T W O R K C H A I N & T E C H N O P R E N E U R S

GLOBAL HALAL INDUSTRY LANDSCAPE 2 BILLION IN YEAR 2020 N E T W O R K C H A I N & T E C H N O P R E N E U R S

INTEGRITY IN HALAL SUPPLY CHAIN HALAL SUPPLY CHAIN HALAL INTERGRITY Application of syariah principles to the entire Involves religious belief that cannot be supply chain from sourcing, manufacturing, compromise at any stage and consumers are transportation, warehousing, ports, freight highly demanding in terms of quality and handling right up to consumer consumption. assurance when it comes to Halal products. N E T W O R K C H A I N & T E C H N O P R E N E U R S

FACTORS INFLUENCING DEMAND FOR HALAL PRODUCTS AND SERVICES N E T W O R K C H A I N & T E C H N O P R E N E U R S