May-June . 2021 | @ Halal

23 it attracts both the Muslim population and non-Muslim consumers .

However , halal products and purchase intentions are not quite the same as Muslim consumers usually consider halal food products because it is a religious obligation .

The increasing demand from non-Muslim consumers in Malaysia is influenced by the growing concern of a health-conscious community that demands a well-prepared product that is safe and clean .

Furthermore , culture assimilation in a multiracial country like Malaysia has shaped the intention of non-Muslims towards purchasing halal food products .

• Market competitiveness In Malaysia , there are many SMEs producing halal food products . However , because they are small , the market competitiveness is challenging . This is due to capital constraints , competition , technology , a weak business network and a lack of experience in marketing their products .

These barriers cause the SME products deemed as more lacking in quality compared to multinational companies ’ products . Another factor that determines market competitiveness that should be looked into is branding . It can contribute to the competitiveness of the country ’ s goods and services .

Due to the liberalisation in the international trading environment , advancing developments in ICT and rapid changes caused by globalisation , consumers have a much wider choice of products to purchase .

Unfortunately , SMEs in Malaysia do

The main problem faced by SMEs entrepreneurs is the lack of knowledge about marketing techniques . Other issues include branding , customers ’ loyalty , satisfaction , and the lack of good networking between local and international enterprises .” not consider branding as a core strategy to compete globally . To penetrate new market opportunities , SMEs should strengthen their branding position , revolutionise , adopt and adapt to compete and remain relevant in the current market .

The main problem faced by SMEs entrepreneurs is the lack of knowledge about marketing techniques . Other issues include branding , customers ’ loyalty , satisfaction , and the lack of good networking between local and international enterprises .

The same situation is when SMEs entrepreneurs in Malaysia have business-related problems needed to achieve competitive advantages . As a result , many SMEs entrepreneurs in Malaysia lose opportunities .

• SMEs opportunities in the halal industry . SMEs are considered an important segment that contribute to economic growth and make up the vast majority of businesses in most countries . About 98.5 per cent ( 907,065 ) of business establishments in Malaysia are SMEs . In 2016 SMEs contributed 36.6 per cent of Malaysia ’ s GDP ( SME Annual Report , 2018 / 2019 ).

The Malaysian government has recognised SMEs as the backbone of the economy , which makes them significant in drafting various policies and action plans that aim to support them .

• In addition , a few halal programmes were introduced to assist SMEs in developing their businesses . The Design Development Centre ( DDEC ), a unit of Majlis Amanah Rakyat ( MARA ) and SIRIM Bhd , signed strategic partnership agreements to improve the packaging of halal products to enhance competitiveness and business performance of local halal producers , especially SMEs .

• Nestle Malaysia is also supporting the growth of SMEs in Malaysia by sharing its knowledge and expertise in the local halal food industry to add value and improve their standards to enable them to compete in the global market and win consumers ’ confidence ( SME Corporation Malaysia , 2019 )

Summary

The low numbers of SME entrepreneurs having halal certificates can be attributed to their perception of halal certification outlined by JAKIM . The comprehensiveness of the industry , which is integrated into all sectors , makes it an attractive niche for businesses to invest in as the opportunities are boundless .

Moving forward , the halal food industry is expected to remain on this path as it gathers more attention and exposure , locally and internationally .

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