PETALING JAYA (Sept 20): Malaysia Airlines Bhd's air freight cargo arm MAB Kargo Sdn Bhd (MASkargo) has launched its halal logistics division today.
MASkargo chief executive officer Ibrahim Mohamed Salleh said at the division's launch today that it has taken two years for the national flag carrier's cargo arm to get the MS2400 — Halal Certification, which was awarded on May 1, 2019, from Jabatan Kemajuan Islam Malaysia (JAKIM).
It is the first cargo carrier in the world to get such a certification from JAKIM.
"The halal logistics division is tailored to the needs of the halal industry for reliable, safe and secure air cargo handling. According to a report by the International Market Analysis Research & Consulting Group, the global halal food market value is projected to reach US$2.6 trillion by 2023. We hope to be able to tap into the market to achieve the national target of RM50 billion halal export by 2020," he said.
Today also saw Korean logistics group Sejung Group, Nippon Express (Malaysia), Labuan Halal Hub and Serunai Commerce sign on to MASkargo's halal logistics segment.
On whether MASkargo would be looking at more clients for its halal logistics offering, Ibrahim said it is always on the lookout for new clients.
"We plan to [get more clients on board for the halal logistics segment]. Of course we will be looking at our business partners such as shippers," he said.
When asked how much MASkargo had invested in the establishment of the halal logistics product, Ibrahim said around RM500,000 has been invested — but added that the segment will lead to a growth.
When queried on how much the segment will contribute to its earnings, he said it was too early to say but emphasised that it has great potential, without going into specifics.
When asked if MASkargo is concerned about the falling air freight demand in the Asia-Pacific region, Ibrahim said the demand for its air freight services was stable and would continue to be so.
"The air freight business is a very dynamic business. You are either going to follow the trend, [or set the trend]. What we are doing here is we are trying to innovate to find new markets, we want to be a trend setter," he said.
According to the International Air Transport Association, air freight demand declined 4.9% year-on-year in July.
Ibrahim also declined to provide an update on MASkargo's earnings thus far, and when questioned about market talk that individual units of Malaysia Airlines would be sold off, he said he would leave that decision up to the government.
Source: The Edge Markets