Halal Certification Among the SMEs in Kinabalu, Sabah

Abstract

Halal is an important concept that enables and simplifies the consuming process of food and beverage products, especially for Muslim consumers. The study believes that the development of Halal is a communally obligatory (fardhu kifayah) for that SMEs and a personally obligatory (fardhu ain) for the Muslim consumer. The Government of Malaysia has already recognized the importance of SMEs, implemented various policies; action plans, and also introduced Halal related programs to assist the SMEs. The objectives of the study are to identify the awareness and perception towards Halal certification among SMEs in Sabah. 42 SMEs were participated in the study; the results indicated that they are aware of the role of Halal certification, and how Halal will make them competitive in the market. Majority of them are keen to become Halal certified company however the SMEs responded that to be Halal certified company the process is expensive and complicated. This paper is hoped to contribute to a better understanding of the current situation of how Halal certification can help SMEs to grow their businesses. Further study on this matter is suggested in order to gain more accurate, interesting and detailed information on the issue.

Does Covid-19 Pandemic Change the Consumer Purchase Behavior Towards Cosmetic Products?

“…Religious beliefs held by the majority of the population, health reasons, and the halal logo increase awareness of the halalness of a consumed product (Ambali & Bakar, 2014). However, in practice, the process of obtaining halal certification requires a lot of effort (Hasan, Sulong, & Tanakinjal, 2020). Although halal certification sometimes becomes a trend and makes a product more competitive.…”

Mapping Out Halal Certification in Indonesia and Malaysia: Challenges, Opportunities, and Comparative Advantage

“…On the other hand, MUI's CEROL system was thought to be much more user friendly. In addition , the applicants in Malaysia were also required to submit the application manually, which was hassle for the halal executives [6,8,23,28,31].…”

“…Comparatively, it was probably justifiable to state that Indonesian halal certification was more accessible than the one in Malaysia, provided the general perception that the latter was much stricter, which was not necessarily a bad thing, for it also required the satisfaction of other standards not directly halal related, but more about refined quality of products. Besides, Indonesian halal logo could be used in Malaysia [8,8]. Finally, self-perception of Malaysian halal certification as the pioneer might contribute something to creating a sense of being chased; meanwhile, as a late comer, Indonesia had no such qualm and, instead, was always eager to catch up.…”

“…The implementation of halal assurance system is essential in order to ensure the effective and efficient production of halal products and services [5], the key component of which is a halal certification process [6]. Halal certification is the process of certifying products or services to be compliant with the shariah law [7], in terms of permissibility, in addition, in certain cases, to other standards of quality [8], such as health, hygiene, environmental friendliness, and respect for animal welfare. While initially it was enforced on products and services for Muslims' consumption, primarily due to religious requirements, halal certification is now considered a certification standard for quality in general [9].…”

“…Today, halal certification is the prerequisite for entering the global halal market [6]. Furthermore, the present halal market is non-exclusive to Muslims but has gained increasing acceptance among non-Muslim industry players and consumers, who associate halal with ethical consumerism [8]. Thus, halal accreditation serves as a benchmark for food safety, quality assurance, and other useful indicators, not only for Muslim but also non-Muslim customers [12], [13].…”