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@ Halal | May-June . 2021

Therefore , more Malaysian entrepreneurs , especially Bumiputera Small and Medium Enterprises ( SMEs ), should apply for Malaysia ’ s halal certification . The massive demand for halal food is why business enterprises engage in halal food production , namely to increase profits .

Halal food is no longer considered solely as a religious requirement for Muslim consumers . It is also sought after by the non-Muslims because it ensures the food is produced in safe and hygienic conditions .

Food business practitioners have faced various kinds of issues and challenges implementing the conditions necessary to produce halal foods in their daily operations . Depending on the type of business , there is a significant gap between Muslim and non- Muslim entrepreneurs who possess proper halal certificates in Malaysia .

This gap highlights that the attitude of Muslim entrepreneurs in complying with halal certification to produce halal products in the market is shallow compared to non- Muslim entrepreneurs .

Issues and challenges in halal implementation

The various issues and challenges in implementing halal status in food production are applicants , awareness , cost , consumer perception and market competitiveness .

• Applicants Several common problems in halal certificate applications are caused by the applicants ’ lack of understanding of the halal procedure .

Delays in submitting supporting documents for the application is also an issue . It is possible the documents submitted are incomplete , which leads to delaying the whole process .

Even when the business owners have completed the whole application process , there are cases where the business owners delay their payment for the certification fee .

Another issue is when the business owners claimed they were not aware of the information given to them via email or via the e-halal information system . These may have been sent during several stages of the halal certification application .

• Awareness Despite the Ministry of Tourism ’ s effort to make Malaysia a tourist hub for Muslim tourists , there are still a low number of halal certification applications from the hotels in Malaysia . The lack of awareness on the importance of halal implementation among hoteliers has led to this .

There is a lack of awareness and concern in the hotel industry about implementing halal status . These factors have caused several manufacturers , especially Bumiputera , to be reluctant to apply for halal certification . They also believe the process is expensive and complicated .

• Cost Another challenge faced by food business operators in Malaysia interested in applying for halal status is the cost . The increase in manufacturing and operating costs has made many companies hesitant to apply for halal certification .

The massive demand for halal food is why business enterprises engage in halal food production , namely to increase profits .”

Halal-certified businesses can be about 10 per cent higher than the usual standard manufacturing cost . The burden of the extra cost is significant , especially for startup companies or new small companies .

The extra costs are because they need to use segregated equipment and transportation for halal and non-halal products . Suppliers who provide halal goods also charge the business owners more . To get the certification , the compliance cost must also be considered for consultancy and certification .

Proper financial management is emphasised for the growth and development of SME entrepreneurs . Improper financial management can lead to many problems that can cause SME entrepreneurs to not sustain their business and lead to bankruptcy and closure of the company .

One of the factors in the food safety compliance among SME entrepreneurs involves financial expenditure such as investment in the structuring , equipment expenses in the quality consult , registration fees and personnel training .

By adding additional costs to obtain certified halal status , companies will face difficulty sustaining the business due to the extra financial restraints .

• Consumer perception There has been a recent trend where there is increased demand in the halal market as