March-April . 2021 | @ Halal

25 international bodies such as the SMIIC or OIC initiative .

The challenge for manufacturers is to determine which standard will provide market access , and in many cases , multiple certificates are necessary for exporters ( Thomson Reuters and Dinar Standard , 2016 ). Halal certification is an essential operational step to addressing Muslim needs , but the lack of global alignment on certification increases costs and can destroy value .

There is difficulty in obtaining sharia-compliant funding from the financial institution . Companies wishing to scale or to vertically integrate their supply chain face challenges in obtaining sharia-compliant funding .

The slow financing approval process , particularly by government-linked financial institutions , has diminished the spirit of the small and medium enterprise ( SMEs ) to expand their production capacity to meet export demands .

Another challenge for the manufacturer is to meet the halal requirement itself . The government must monitor and supervise all manufacturers , especially in food .

The main idea is to ensure manufactured products are free from contamination and should not contain any haram ingredients during their preparation , production and storage .

The total quality management practice needs to be applied to marketing halal products where the food manufacturer should not only focus on halal certification methods .

Therefore , quality assurance and wholesomeness could increase the demand for such products .

While on one side , Muslim consumers worldwide represent an excellent opportunity for the halal industry , on the other side , it is also a great challenge to deal with the diversity of the same population .

Although the religious beliefs of Muslims are the same around the world , they have their own culture , regional or local shades , preferences , and practices . This is because Muslims live in every country of the world , representing most races and come from every social and economic stratum ( Personal et al ., 2009 ).

Emerging opportunities in the halal industry

The awareness of the opportunities has to be made at all levels , including those in government , academics , business entrepreneurs , corporate industries , policymakers , and at the consumer level .

Moreover , the halal industry ’ s issues and challenges should be identified and addressed by policymakers , researchers , academics , governments , and respective authorities .

The emergence of halal markets and players worldwide has created indirect awareness of halal products and services that result in the halal market force .

Consumers worldwide are becoming aware of halal ’ s importance in terms of food consumption and the ethical values integrated

Consumers worldwide are becoming aware of halal ’ s importance in terms of food consumption and the ethical values integrated into it , eg , Muslim-friendly tourism ( MFT ), modest fashion , logistics , pharmaceuticals , and many others . The trillion-dollar business in the halal industry is the result of this emerging consumer need .”

into it , eg , Muslim-friendly tourism ( MFT ), modest fashion , logistics , pharmaceuticals , and many others . The trillion-dollar business in the halal industry is the result of this emerging consumer need .

The halal industry has emerged as a new evolution sector globally and is creating a strong presence in developed countries . Challenges in the sector are a gap and an opportunity to tap by the industry players .

Therefore , the Islamic economy companies play an essential role in addressing Muslim consumer needs and play a critical role in driving economic growth and activities .

Summary

The global halal market has emerged in the global economy and forms a strong presence in developed countries . Halal transcends the traditional industry-sector boundaries , geographic , cultural and even religious boundaries . The market for certified halal products is thriving , both domestically and internationally .

Malaysia has become the leader and centre of reference for the world . Malaysia has consistently undertaken significant initiatives spanning regulations , trade and industry support to strengthen the status as hubs in the trade-driven Islamic economy . The halal industry expands fast and is becoming the new market paradigm with its own unique set of challenges and opportunities .

The halal industry is progressively growing and attained attention among industry players globally . The comprehensiveness of the sector , which has integrated into all sectors , makes it an attractive niche for businesses to invest in as the opportunities are boundless . Moving forward , the halal industry is expected to remain on this path as it gathers more attention and exposure worldwide .