CBSTech to help SMEs tap huge Halal Mart

By June Ramli

Information technology firm CBS Technology Bhd (0041) is developing a website to help Malaysian businesses tap a potential market of 600 million Muslims in the region. The website, scheduled to be launched in the third quarter of the year, will enable small- and medium-sized enterprises (SMEs) to market their halal products and services online. "Marketing efforts to supply certified halal products throughout the world are gaining momentum," CBS Technology group managing director Sun Chee Keong told Business Times in an interview. Halal products are not confined to food but include pharmaceuticals, cosmetics and medical products.

Sun said the new online portal will mirror the popular Alibaba.com trading portal, but will focus solely on the halal market. "The website will provide halal-certified companies an online platform to promote their halal products and services to the target markets faster and efficiently," he said. Currently, Southeast Asia and the Middle East are the two strong markets for halal products.

CBS Technology, which is also responsible for the popular database and content for print directory Super Pages, will leverage on its existing customer base to help promote SMEs and widen their market reach under the website. "We have over 200,000 customers in Super Pages, out of which more than 20 per cent are in the halal business," Sun said.

Once the website gains attention in the region, it will be promoted to potential markets in other parts of the world, including Europe and the US. Sun said that Europe is regarded as an important market for halal products because of its high purchasing power rather than population size. Furthermore, there appears to be an increasing willingness by non-Muslim consumers there to buy halal food products.

Findings of a study showed that Dutch consumers, for instance, bought halal products in the belief that they were safe and of a high quality, Sun said. Europe is home to over 50 million Muslims, with the number having grown by more than 140 per cent in the last decade. "Muslims across Europe have far higher consumer spending power than those in the Middle East and North Africa, with the second- and third-generation European Muslims seeking out convenience and looking for halal products."

The website launch is targeted to coincide with CBS Technology's move to transfer its listing status to the Main Market on Bursa Malaysia. "We submitted our application to the Securities Commission two weeks ago and will not be offering any new shares as this is only an upgrade from the ACE market to the Main Market," Sun said.

It made RM10.98 million net profit last year, nearly double the RM5.62 million the year before. Revenue was up 92 per cent to RM44.27 million.

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