Smartag to develop 16m yuan China halal online trade

by **Cals** Fri 11 Apr 2014, 14:32

Business & Markets 2014

Written by Shalini Kumar of theedgemalaysia.com

Friday, 11 April 2014 10:17

KUALA LUMPUR: Smartag Solutions Bhd has entered into a partnership with Ningxia Salimy Muslim Commodity Trading Co Ltd (Salimy) to develop China international halal online trade and a traceability ecosystem that will cost 16 million yuan (RM8.33 million) over a two-year period.

In a Bursa Malaysia filing yesterday, Smartag said the online e-commerce and traceability platform will allow companies from all over the world to display halal food and Muslim supplies, and trade internationally.

“Companies from all over the world can open a virtual store in the e-commerce platform if their product complies with the international halal standard. Products listed in the e-commerce platform are traceable by using RFID [radio-frequency identification] and 2D barcode.”

Smartag said among its responsibilities are developing the e-commerce portal with traceability, completing client platform software, installing servers, and achieving international halal certification.

“Salimy is responsible in dealing with local and central government departments on regulation matters, getting provincial government aid/subsidy/grant, coordinating the joint bid project, forming project team and tasks, as well as promoting and recruiting merchants to participate in the e-commerce portal.”

Smartag said funding for the medium- to long-term project includes matching funds from the Chinese government. Pending this matching of vfunds, the portal or software developed by Smartag as well as any intellectual property will remain under its ownership.

“The company reserves the right to terminate any further development should Salimy be not able to obtain the [Chinese] government grant,” it added.

Both Smartag and Salimy will form a foreign signed joint-venture company within three months after approval of the government funds, where Smartag will own 60% and Salimy the remaining 40% stake.

Smartag is a RFID specialist, which provides track and tracing services, utilising RFID and other wireless technologies to help users have more visibility and security.

Salimy is principally involved in the trading and promotions of Ningxia’s local featured goods including halal foods and Muslim products. Ningxia is the sole Muslim province in China with a population of 6.4 million, of which 36% are Muslim. In 2013, its total trade reached US$3.22 billion (RM10.38 billion), an increase of 45.2% over 2012. — by Shalini Kumar

This article first appeared in The Edge Financial Daily, on Aprill 11, 2014.