Industry
@ Halal | MARCH-APRIL . 2023
BY DR AZMI ABD AZIZ Chief Technical Officer , Global Haltech
THE halal industry is one of the fastest-growing industries in the world ( Rahman et al ., 2017 ). It affirms that it is gaining a solid foothold in developed economies .
Driven by the boom in affluent Muslim population growth and the need for increased ethical consumption , especially during the Covid-19 pandemic , the halal industry continues to draw considerable attention across all borders ; academia , consumers , policymakers and undoubtedly businesses .
In line with the substantial expected growth of the Muslim market , the opportunities for halal food businesses are favourable . The Muslim market is projected to grow by more than 30 per cent .
It emerged in Malaysia in 2020 that a 40-year meat cartel was busted for bribing authorities to obtain halal certification despite getting their meat supplies from non-halal sources , mixing kangaroo and horse meat , and selling them as halal beef ( Raghu , 2020 ). The demand for halal certification has increased among food industries in Malaysia due to the positive impact towards sales . Authorities from the State and federal levels have taken measures to facilitate the halal sector by improving halal procedures in the application process and implementing the required halal standards in the operational process and commercial activities .
The certification process requires commercial sector commitments involving workers providing services and products . The vital role of halal certification in food industries in Malaysia is affecting trust and integrity towards food hygiene status . During the certification process , the experience of local halal food industries in Malaysia and the transition of acceptance and rejection faced during the application must be highlighted .
The impact of halal certification is not only beneficial to the food industry in attaining halal certificates , but positive opportunities in trade were also observed . There were increased sales and improved food products and services relating to safety , hygiene and halal values . Consequently , a food industry that is halal , clean and safe can be attainable and made sustainable from a business point of view .
Understandably , halal plays a vital role for all businesses and manufacturers , including non-Muslim producers , to ensure products they sell satisfy Muslim buyers ’ needs and instil confidence in their purchases . Along with this , the anticipated immense growth of the halal food and beverage ( F & B ) industry has also ignited business opportunities among halal food providers as the market is not considered to have matured or saturated ( Syed Marzuki et al ., 2018 ). With Muslims worldwide , halal food has been perceived as universal , encouraging businesses to ensure their products are halal-certified ( Syed Marzuki et al ., 2018 ).
Role of halal certification
The impact of halal certification is beneficial to the food industry and offers positive opportunities for trade
ESSENTIAL TO BE HALAL CERTIFIED
Regardless of ownership by Muslims or non- Muslims , restaurants will be granted halal certificates upon complying with essential requirements from regulatory authorities regarding health , the safety of their foods and the hygiene surrounding food production .
It allows halal-certified food outlets to tap into the 60 per cent Muslim population and 40 per cent of non-Muslims worldwide . The halal value proposition acceptance by Muslim and non-Muslim restaurants is based on the shariah requirement and includes the safety , sanitation , and hygiene aspects ( toyyiban ).
Toyyiban emphasises the goodness of the food as an added value to halal . Food that might fulfil the requirement for halal must also be toyyiban from a health perspective . Therefore , halal and toyyiban are defined as assurance and guarantee that both halal and toyyiban are integrated into holistic and balanced requirements that fulfil the conditions and application needs ( Apnizan , 2018 ).
Malaysia has become a popular tourist destination since the promotion of the Visit Malaysia 2007 campaign , which was launched in 2005 until 2017 . It led to the growth of the food service industries in Malaysia . This growth is expected from an increasing number of restaurants , hotels , factories , and food
caterers offering a wide selection of international cuisines .
As of 2020 , the food-processing sector still accounted for about 10 per cent of Malaysia ’ s manufacturing output . Processed foods contributed RM19.4 billion and are exported to more than 200 countries . At the same time , advances in processing technology have widened the usage of local raw materials , expanding the range of products and increasing the investment absorbing capacity in the food industry ( MIDA , 2020 ).
The food supply chain is different from other product supply chains because food involves fresh food that is usually prone and vulnerable to changes in quality and contamination risk throughout the entire supply chain management process . Therefore , exceptional care is needed to make the food supply chain more resilient and robust .
FACTORS INFLUENCING THE FOOD INDUSTRY PRACTICES AND PERFORMANCE
Halal integrity : The halal integrity of ingredients used by most companies has been questioned recently . Certifying the ingredients of foods must be done meticulously , as some industries may not comply with the halal procedures after being approved . Therefore , farmers , processors , food premise owners , food handlers , food servers and government regulators must ensure that the supply chain complies with shariah and customers ’ needs .
On another note , there is a big issue in the food supply chain due to food movement from one distance to another . This has led to the challenges of whether the halal integrity of such products is compromised . The relevant authorities should adequately take care of the supply chain ’ s responsibilities . Once the product departs from the factory or is transferred along the food supply chain , the trusted food product will only be secured if the new handler follows the processes and procedures .
Consumer / customer attitude as a buyer : If an industry is certified , significantly , some firms will make more sales than others due to the consumers ’ trust . Most food outlets , especially hotel restaurants , have not fully utilised this attitude . It was found that only eight per cent of hotel restaurants have halal certificates indicating their compliance with halal practices . This number is relatively low due to the tourists ’ entries and the aspect of nutritious food served to them .
Thus , Muslims need to obtain enough information on the product to consume it confidently . In making decisions about a product , familiarity plays a fundamental role , which may be lacking when consumers deal with food products they have never consumed .
Policy on ingredients : The ingredient policy is still a significant issue in the food service industry . Most are unaware of what ingredients are necessary to be used in the food production process . The ingredients are used in food processing to ensure safety and hygiene . It is mentioned that the ingredients used as raw materials must be lawful and follow halal practices mentioned in the guidelines of halal standards .
Recruitment : The companies must employ at least two Malaysian Muslims based on