JULY-AUGUST . 2023 | @ Halal
Industry Point
17 penetrate the international halal market and has the credibility and integrity to attract demand for halal products and services from the growing Muslim population worldwide . World recognition has placed Malaysia as a significant global reference centre .
Halal products and services such as food , confectioneries , food ingredients , consumer goods , logistics , cosmetics and pharmaceuticals have drawn much attention from the local and international community , especially in Muslim countries .
GOVERNANCE IN THE HALAL INDUSTRY
The halal industry in Malaysia has been increasing since four decades ago . It can be said that two main factors contributed to the positive development of the halal sector :
• Muslim needs , awareness , and demands ,
• support from the authority in regulating the halal certification process . Governance is a crucial component in the halal industry . Appropriate mechanisms should be created to ensure halal-certified companies comply with Shariah principles . Establishing a proper Shariah governance framework for the halal industry will boost the confidence of the shareholders and the public that all the practices and activities follow Shariah all the time .
The Trade Descriptions Act 2011 ( Act 730 ), the Trade Descriptions ( Certification and Marking of Halal ) Order 2011 , has named JAKIM and the State Islamic Religious Council ( MAIN ) as the Authoritative Authority to issue halal certificates in Malaysia ( Federal Government Gazette , 2011 ).
JAKIM and the Council / Islamic Religious Affairs Department ( MAIN / JAIN ) are the Authorised Authorities in issuing Malaysia ’ s Halal Certification Certificate as stated in Section 3 of the Trade Descriptions Act 2011 . The authorisation makes JAKIM and MAIN / JAIN as Malaysia ’ s Halal Certification Leader .
Currently , halal-specific laws have not been established to control and enforce offences related to halal products that can be identified as the ‘ Halal Act ’. Halal enforce-
ment implemented by the government currently depends on several different laws , whether directly or indirectly related to the control of halal products and is enforced by various agencies .
The strength and uniqueness of the halal ecosystem in Malaysia is due to its management that remains in regulatory and government governance . Since Islamic affairs are the prerogative of the Malay Rulers per the Federal Constitution , halal-related affairs are always preserved under the jurisdiction of the States . Hence , the involvement of State Religious Authorities in the halal industry is no longer limited to certification activities .
THE IMPORTANCE OF THE HALAL INDUSTRY IN SOCIAL ASPECTS
Halal products are essential to all Muslim consumers . Nonetheless , non-Muslim consumers are now aware of the importance of halal products in their daily lives . This awareness contributes to production growth for potential halal products due to the increasing demand in the country .
Halal is not limited to one ‘ guiding principle ’ in the supply chain of halal products , but it has covered the entire halal ecosystem itself . Therefore , it is vital to increase the level of understanding of the Halalan-
Thoyyiban concept among consumers in the country . In addition , risk action plans need to be streamlined for better management in the future .
With an effective communication strategy , Muslim and non-Muslim consumers will be aware of the importance of halal value in life , have confidence , and use more halal products and services . Indirectly , this scenario will positively impact sales of halal products and services .
SUMMARY
Malaysia has always been considered a respected , progressive and highly regarded Islamic country . The development of the halal industry in Malaysia , which has successfully penetrated the international halal market , especially in the food sector , has further boosted the country ’ s reputation .
Malaysia ’ s current halal industry landscape focuses not only on the food and beverage sector alone but also expands into several other sectors such as cosmetics , pharmaceuticals , logistics , consumable goods and original equipment manufacturer ( OEM ).
The rapid development of halal-related industries has become more diverse and complex . Hence , the development of halalrelated sectors should be taken seriously to further contribute to and generate the country ’ s economic growth .
The achievement of integrity alone is not enough to maintain and strengthen Malaysia to remain the world ’ s halal leader . Even though halal management in the country has been stable regarding standards and certification , some identified challenges still need to be addressed to drive Malaysia ’ s halal industry to a better level .
The authorities should implement clear guidelines on halal governance to build stakeholders ’ confidence in the industry . The halal industry is not only about the halalness of the products or services but should also focus on if the company is managed according to the true Shariah spirit . The government should provide Incentives to halal companies that practice proper Shariah corporate governance . –