January-February . 2021 | @ Halal

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a decentralised system with no single owner , any retroactive changes to a document must be verified by the majority of potentially thousands of “ nodes ” or members in a chain . Put simply , it is a technology that is secure by design .

A halal network timestamps transactions through blockchain technology , It hashes them into an ongoing chain of hash-based proof-ofwork , forming a record that cannot be changed without redoing the proof-of-work . It is not stored centrally but distributed on many servers throughout the world as cryptographic proof .

Blockchain removes the need for a trusted third party to ensure an independent assessment of a product ’ s integrity or network , as the longest chain serves as proof of the sequence of events witnessed .

This technology could enforce end-toend halal assurance and alignment based on specific halal market requirements , supported by automated smart contracts in its process execution and control . A halal blockchain could provide full transparency of all halal supply chain transactions that have ever been executed . The blockchain has complete information about the addresses and their supply chain path right from the source to the point of consumer purchase . This provides the much-needed

forwarding at domestic and international levels can now be wholly integrated .

This use of blockchain will improve the overall role and function of the RMCD and ease and facilitate import-export transactions of the private sector stakeholders ( shipping / logistics , traders ).

But TradeLens can also be extended to be included as part of the entire halal food supply chain and transaction processes . What it requires first and foremost is the participation of industry players and stakeholders which should be mandatory .

Jakim could then create its own real-time database containing all foreign suppliers ’ information and the concomitant transactions for oversight , monitoring , and audit purposes .

This will promote digital security and complement and supplement the tamper-proof character of blockchain technology by ensuring hashed signatures can be double-checked against Jakim ’ s own real-time database .

The real-time database should also be decentralised to make it inter-operable and inter-face capable with the other government agencies , namely the Malaysian Quarantine and Inspection Services Department ( Maqis ) under Mafi that issue the AP and the Enforcement Division of the Ministry of Domestic Trade & Consumer Affairs ( KPDNHEP ). Interoperability is the key here , which generally means the ability of different systems to talk to each other .

The real-time database mimics and emulates the function of TradeLens blockchain technology in data-sharing without duplicating the transaction processes themselves .

So , the Jakim database can be integrated into and provide support and complement the TradeLens system ’ s role . In effect , the Jakim database performs the background role of monitoring the TradeLens system , enhancing the integrity of both data provenance and the blockchain technology ‘ s overall transaction processes .

To further integrate the Jakim database into Tradelens , Jakim should have its own miners ( cryptographers ) as part of the blockchain transactions in the broader halal certifications process .

In conclusion , it ’ s time to ramp up the halal certification process ’ s digitalisation and what better way than to assimilate blockchain technology as a sure-fire way to ensure halal integrity and strict compliance .

Jamari Mohtar is Director , Media and Communications , while Jason Loh Seong Wei is the Head of Social , Law & Human Rights of EMIR Research , an independent think tank focused on strategic policy recommendations based on rigorous research .

assurance for Muslims that the “ halal-ness ” of the food on their table can be traced back through all the halal supply chains that began with the original halal farm or livestock farm , including the identity of the farmers or livestock breeders .

Blockchains inject trust into a halal supply chain and value chain of a brand owner who would be better able to guarantee halal integrity . They could also be integrated into comprehensive sustainability and corporate responsibility systems to extend the brand market beyond Muslim consumers .

One of the most significant real-world applications of blockchain is data provenance – the documentation of where a piece of data comes from and the processes and methodology by which it was produced . It creates a single , secure chain of custody timeline , designed to be tamper-proof .

The system can be used to provide customers with a ‘ story ’ about each product on materials , locations , processes , ingredients and suppliers , and enables businesses to substantiate claims about their products using real-time data .

With such a system , provenance tracking of where each piece of data comes from and whether it is still up-to-date becomes a breeze .

This use of blockchain will improve the overall role and function of the RMCD and ease and facilitate import-export transactions of the private sector stakeholders ( shipping / logistics , traders ).”

Since the 1970s , Malaysia has successfully transformed its halal industry into one of the most established and trusted halal certifications globally .

Along the way , the country has also managed to develop a comprehensive halal food and beverage industry and supply chain , while aggressively taking steps to expand to other sectors , such as travel , cosmetics and financing .

The export value of Malaysian halal products almost tripled in seven years , from RM15.2 billion in 2010 to RM43.3 billion in 2017 , contributing about 7.5 per cent of its gross domestic product in 2017 .

Sadly , while halal exports have been a big part of the national economy , the country has only taken a small fraction of the global halal market . The market is worth an estimated US $ 2.3 trillion a year ( excluding Islamic finance ). It is one of the fastest-growing markets in which global growth is estimated to reach 20 per cent per annum .

In 2018 , Malaysia accounted for only a measly one per cent of the global halal demand – proving there are substantial opportunities and room for improvement to develop a transparent and trusted halal hub .

The projected increase in the Muslim population is 30 per cent of the world population by 2050 . This is one of the driving factors for the expansion of the industry . As such , the expose on this unholy cartel is a setback to the booming halal industry in Malaysia .

To be proactive in this regard , it is high time that the relevant authorities adopt the blockchain route as touted in this article to be part of a network in this system of provenance based on blockchain technology .