HAPPY NEW YEAR 2011 EVERYONE!

I had a few interviews of my own. Many told me that factors of environmental, global economics and marketing strategies have a lot to do with the 'lagging' of export of wooden furniture. (so they claim)

Agreed, they do have but minimal effect on the export but these factors are really prerequisites if you wish to be in the business circle - so you need to think of this before you join and while you're running the wooden furniture industry. It's just some of us wish not to admit that we are actually do not seriously take into account FOREIGN rulings.

So, the issue here is about how the factors of environment, economics and marketing strategies not only to comply with the Malaysian regulations but also to comply with foreign regulations as well. So, all these has nothing much to do or does not moderate the relationship between all export marketing strategy variables and export performance. But surprisingly when you see wooden industry having ISO certification esp. EMS ISO 14001 (or even ISO 9000) you'll be surprised to see how fast they have grown domestically and internationally.

Today I'm going to talk about one such company that I found magnificently striving to comply to these rules. It makes me wonder why are investors are not thinking long term but rather wanted to listen to gossips about logging and wooden furniture industry.

I do not work or having any relationship with this company but I have confidence that this company will perform in the next few weeks or who knows in few days time prior to CNY or immediately after...

Sern Kou Resources Berhad (SKRB) is a Malaysia-based company engaged in investment holding and provision of management services. The Company, through its subsidiaries, operates in four segments: manufacturing, kiln-drying and lamination, logging and processing and others.

It subsidiaries are Sern Kou Furniture Industries Sdn. Bhd., which is a manufacturer of wooden furniture; S.K. Furniture Sdn. Bhd., which is engaged in the provision of spraying services to furniture manufacturer; Valued Products (M) Sdn. Bhd., which is engaged in manufacturing and processing all kinds of timber, wood and related products, and Souncern Timber Sdn. Bhd., which is engaged in the logging and processing of rubber wood and timber.


But I'm not going to touch too much on logging - only their finished product of wooden furniture which I am really impressed.

Led by highly experienced and robust personnel, I noticed the group operations has been generating strong positive cashflow despite the humbleness displayed by the Chairman via the Annual Report. I'm not surprised as I browse through their policies - they are very good! Based on my understanding, they are really dedicating themselves into the industry full time, well-aware and susceptible of what is happening around them.

My guess this group will become a potential performer soon. They practice cost control, product and market repositioning to place themselves back into the export market. It appears they have no fear on what is about to come - I'm certain, they know what I know.

Give it a shot fellas....support our local wooden industry. The products are much more better and cheaper. For those who are in Germany, I'm sure you've seen them at the IMM Cologne Germany (Koln) and I assume purchases have been made.

Look at these interesting items :

http://www.sernkou.com/index.html

http://www.fppsm.utm.my/download/doc_view/35-impact-of-environmental-factors-as-moderator-on-export-marketing-performance-in-wooden-furniture-ind.html

FROM ISLAMIC BANKING TO HALAL HUB - by Nik Zafri



Just like Kosher, Halal Hub has become one of the most successful global business in the world. This is because every major halal certification and religious bodies are working closely with halal manufacturers, suppliers, sellers, buyers, consumers, end users etc.. It becomes the most efficient supply chain I have ever seen myself.

In Malaysia, Halal; like Islamic Banking; has affect almost everyone's life - Muslim and Non-Muslim alike. The Halal Hub construction owned by Perbadanan Industri Halal Berhad stands as a living proof that Malaysia is really serious about Halal.

The only setback is to network more effectively with other Halal authorities to ensure whatever being imported are according to the Halal Standard (for Malaysia, it's MS 1500 (latest version recently issued) - combined with GMP dan where applicable HACCP) Two other issues need to be addressed is export and penetration to the global Islamic Market and the acceptance and recognition of FDA.

I'm aware of the Codex Alimentarius Commission thinks about Malaysia's Halal prospects.

Having Codex is a good thing but it's of not much use if everyone is having their very own standards and codes of practice especially such codes are customized according to the differents sects (Madzhab)

Thus, the Islamic World need to come out with a more comprehensive "Codex" that takes into account the circumstances of hukum based on native Islamic country which may have a certain "leeway and tolerance". If it is to be too stringent, then we may encounter a little bit of a problem of achieving the KPI of increasing the number of halal entrepreneurs. As in many cases, it's not about too many "tolerances or leeways", it is about enforcement.

What is recommended to be done besides giving the Halal certification, the most important is the authorities should have more men, not necessarily paid salary staff but even appointed from the general public. They need to be like "Rakan Cop" and report back to the authorities for further action. But first, they need to be properly trained. (perhaps such module can also be combined into short courses for handling food? - Health Inspectors? Municipal Councils? any takers?)

We shouldn't adopt the attitude wait for report to be lodged, wait for witness, wait for evidence of non-conformity etc, then we'll take action. Halal is not about firefighting, it's about adequate follow-up & surveillance.

I also notice the "Sharie Council" is focussed more on popular fast food chain rather than the slaughtering house. I recommend there should be at least one religious officer to control a certain zone of halal manufacturers from some sort like a kiosk or something like that.

The other challenge is about talking more on OTHER food products rather than focussing "too much on meat and slaughtering issue" I take an example, Artificial White Wine Non-Alchoholic Drink - many Muslims are having "was-was" about the product as well. The attitude need to be changed.

There is also a dire need for the global Halal Authorities to compare within such Codex (perhaps in the Annexure), the difference between Halal and Kosher as well - what can and what cannot be taken.

Despite this "Islamic Codex" may be a bit thicker but I'm sure judging by the success of Islamic Banking with all the thick "codes of practice", I'm confident that Halal can also dominate but playing a harmonic role with Kosher.



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A bit about GMP from SGS

Good Manufacturing Practices Certification or GMP Certification provides independent verification and certification necessary for the implementation of an effective Hazard Analysis Critical Control Point (HACCP) food safety program.

GMP is a sanitary and processing requirement applicable to all food processing establishments. Many food industry companies have implemented the GMP certification scheme for food processing as the foundation upon which they have developed and implemented other food quality assurance systems and food safety management systems, such as HACCP, SQF 2000, ISO 9001 and ISO 22000.

Certifying your food management system against the GMP standard will bring the following benefits:

Enhancement of your food safety management system;
Demonstration of your commitment to producing and trading safe food;
Prepare you for HACCP certification;
Increase in consumer confidence in your products; and
Prepare you for inspection by regulatory authorities and other stakeholders (food processing regulation compliant).

*If you are required to have your management systems certified against a multiple international safety or quality standard, you can combine the parallel requirements with good manufacturing practices and cover them cost effectively with a single food audit.