Malaysia ’ s success in halal certification began in 1974 with the formation of the Department of Islamic Development Malaysia ( JAKIM ). JAKIM is responsible for coordinating and overseeing the halal certification process , ensuring adherence to stringent halal standards . The halal certification by JAKIM is recognised internationally and widely trusted by Muslim consumers worldwide .

Today , Malaysia has established itself as a leading exporter of halal products to both Muslim-majority and non-Muslim countries , extending beyond the domestic halal ecosystem . Its halal food exports , including meat , poultry , and processed food , witnessed substantial growth in recent years with an export value of RM27.84 billion , and the halal Ingredients market exceeded RM23.35 billion in 2022 ( Source : MATRADE ).

The halal market in Malaysia is approximately 60 per cent of the overall market share , indicating the importance of the industry .

“ Today , Malaysia has established itself as a leading exporter of halal products to both Muslimmajority and non-Muslim countries , extending beyond the domestic halal ecosystem .”

CHALLENGES TO HALAL CERTIFICATION

In a halal ecosystem , businesses operate according to Islamic guidelines , ensuring that their offerings comply with halal standards throughout the production , distribution , and consumption .

It involves regulatory bodies , certification organisations , businesses , consumers , and other stakeholders working together to maintain and promote the halal industry .

However , despite the growing demand from the industry and consumers , numerous businesses still need help obtaining JAKIM ’ s halal certification for various reasons . Some of the reasons include :

• Strict halal certification standards : Malaysia has a comprehensive and rigorous set of standards that businesses must meet . These standards cover various aspects of the value chain ecosystem , including ingredient sourcing , production processes , storage , transportation , and hygiene practices .

• Traceability and ingredient sourcing : Businesses need to provide detailed information about sourcing ingredients and their halal status . Verifying its compliance with the certification standards can take time and effort , especially for businesses with complex supply chains .

• Facility and equipment requirements : Businesses must have separate facilities , equipment , and utensils for halal production , ensuring no cross-contamination with non-halal products . For small businesses with limited resources , this can be a significant challenge .

• Documentation and record-keeping : Businesses must maintain comprehensive

documentation and records of their processes , ingredients , supply chain , and hygiene practices . It includes providing evidence of halal certification for each ingredient used .

• Verification and auditing : An on-site verification and auditing process is carried out by JAKIM to ensure compliance . This process includes inspections , testing , and reviewing the documentation and practices of the business . Preparing for and undergoing these audits can be challenging , requiring internal coordination and preparation .

• Cost implications : Obtaining a halal certificate involves certain costs , including certification fees , facility upgrades , training , and other compliance-related expenses . These costs can be significant , especially for small businesses , and pose financial challenges .

UOB MALAYSIA ’ S PARTNERSHIP WITH GLOBAL HALTECH

Realising this gap , UOB Malaysia has collaborated with Global Haltech Sdn Bhd to provide the first steps for these businesses to obtain halal certification and enter the halal marketplace .

As one of the panel laboratories of JAKIM , Global Haltech is offering services with preferential rates to businesses through UOB Malaysia . Companies will benefit from subsidised annual fees , and F & B businesses may perform ingredient verification .

In obtaining verification on ingredients that meet halal standards , businesses are

only required to share samples of their ingredients with Global Haltech ’ s laboratories . A sticker / logo will then be issued and displayed as a replacement to the “ No Pork , No Lard ” signages commonly used .

The sticker / logo is valid for two years and can be renewed at a minimal cost . With the verification by Global Haltech , both businesses and consumers may have better assurance of the ingredients ’ cleanliness that also meets the definition of halal .

Additionally , it helps to pave the way for businesses to obtain JAKIM ’ s halal certification . Training will be provided to business personnel to be halal practitioners , including monitoring operations discrepancies .

Global Haltech also offers self-test kits to detect prohibited ingredients before JAKIM ’ s submission for new applicants and renewal of licence . Global Haltech provides an essential ecosystem for businesses to grow in the halal space .

In encouraging value creation through Shariah principles and sustainable practices , UOB Malaysia believes the collaboration with Global Haltech will help to support halal-based businesses and their ecosystems .

In addition , UOB Malaysia ’ s suite of digital offerings may further complement their business needs . For SMEs attending MIHAS 2023 , UOB Malaysia will offer exclusive banking solutions and subsidised fees for Global Haltech services . –

For more information , visit the UOB Malaysia booth at MIHAS or the Global Haltech website at www . globalhaltech . com .