Halal Industry Master Plan 2008-2020. Halal stands not only for just and 1 0 obj The obvious example is the HFCE (Halal Food Council of Europe) has certified over 400 European food companies. The government support to advance the halal industry in Malaysia is clear. It is also an effort to cope with the market demand that gradually increased in recent years. The market segmentation of the halal industry has extended to non-muslim as well. As a result, it is now very common to see the development of the halal industry in non-Muslim countries. This concept applies to all food products in any form, consumer goods including cosmetics, personal care products and pharmaceuticals. 2. Definition and Halal Haram Concept in Islam The word Halal derived from Arabic which simply means allowable or not prohibited to be used in Islam. Halal certification is one of the prerequisites for entering the global halal market. Hence this paper will generally examine the development of the halal industry in Malaysia. Highlights Muslim consumers have a number of concerns about the meat they eat. The growing demand for halal products has forced the halal industry to expand its scope into a variety of products and services, such as medicines, cosmetics, tourism, finance, and even fashion, B. An overview of the Halal industry worldwide. Halal slaughtering is a part and parcel of total halal integrity system. Vol. Halmas is an accreditation given to the Halal Park operator who has successfully complied with the requirement and guidelines stipulated under the HDC Designated Halal Park development. General Guidelines on the Slaughtering of Animals and the Preparation and Handling of Halal Food. Halal Certification: an international marketing issues and challenges 1.0 INTRODUCTION In the Muslim majority, Malaysia, the concept of halal is an absolute key to consumption. This big amount of percentage that the halal industry has contributed to Malaysia’s GDP shows that Malaysia is successful in utilizing the potentials it has as a Muslim majority country. This sector is mainly divided into three parts, which are: a). 3 0 obj Retrieved from: https://afrief.org/wp-content/uploads/2019/06/GLOBAL-HALAL-ECONOMY-REPORT.pdfhttps://edition.cnn.com/2016/08/29/world/halal-industry/index.htmlhttps://www.cekindo.com/blog/indonesias-halal-industry-redefining-traditions-travel-fashion-businesshttps://www.alimentarium.org/en/knowledge/history-halal-market-westhttps://www.grantthornton.co.id/publications/Halal-is-the-industrys-new-chapter/ https://www.oxfordlearnersdictionaries.com/definition/english/halal http://www.smeinfo.com.my/articles/forum/item/241-halal-industry-what-s-in-it-for-smes. Amongst the guidelines established for a Halal slaughter is the unwavering fundamental that the animal must be alive at the time of slaughter and the blood must be drained out. This indicator gives a comprehensive picture of which countries are currently best positioned to address the multi-trillion-dollar global opportunity. http://www.smeinfo.com.my/articles/forum/item/241-halal-industry-what-s-in-it-for-smes. Does it really affect Malaysia's economy, What Happens When a Country Goes Bankrupt, Youth Unemployment in Malaysia : The Main Contributors in this Dilemma. The development of the halal industry in Malaysia started in 1974 when the Research Centre for Islamic Affairs Division started issuing halal certificates. Other than that, Malaysia also hosts two of the most important annual events in the halal industry, namely the Malaysia International Halal Showcase (MIHAS) and the World Halal Forum (WHF). According to the Pew Research Centre, the number of Muslims worldwide is expected to increase by 75% from 1.6 billion in 2010 to 2.8 billion in 2050. 2. The chart below shows Malaysia’s Halal Export value from 2014 to 2018. Retrieved from: https://themalaysianreserve.com/2019/03/18/halal-exports-to-reach-rm45b-this-year/, State of the Global Islamic Economy Report 2018/19: https://haladinar.io/hdn/doc/report2018.pdf. 5 No. The government support to advance the halal industry in Malaysia is clear. For halal exports, the number of Malaysia’s halal exports experienced a gradual increase from 2010 to 2018. The next two years account for 4.6% with MYR 935.4 billion and 4.0% with MYR 998.0 billion consecutively. Ashfaq, Muhammad (2018). Despite standing above the rest, Brazil has faced a lack of compliance with Halal standards (Ashfaq, 2018b). Halal Industry Master Plan 2008-2020. “Malaysia mulls integrating halal industry, Islamic trade finance”. Haram activities are forbidden to every Muslim. Africa Islamic Foundation, “The Global Halal Industry: an Overview”. We examine analytical techniques for authentication of halal meat and meat products. Retrieved from: https://itc.gov.my/tourists/discover-the-muslim-friendly-malaysia/malaysia-the-worlds-leading-halal-hub/, The Star (2019). The establishment of the Halal Industry Development Corporation in 2006 demonstrated the strong willingness of Malaysia to be the leading country in the halal industry. <> Indeed, this expansion is very helpful to the Muslims. 1 (2018): 1-17MITI. Halal has now become a universal concept. hygiene[ CITATION Placeholder1 \l 17417 ]. Some of the related issues in halal and safety meat are criminal and terrorist activities, including meat fraudulent such as adulterant substances (adulteration), substitution, livestock stolen, grey market product, smuggling, misrepresentation or mislabelling etc. This paper was written to give information about the issues and challenges that faces HSCM. State of the Global Islamic Economy Report 2018/19: https://haladinar.io/hdn/doc/report2018.pdf, The Halal Industry. The desired outcome of this policy is to make Halal as the new source of economic growth (MITI). The Malaysian Reserve (2019). Retrieved from: http://www.miti.gov.my/index.php/dl/563068584d6a41784e6c39505131395462476c6b5a584d756348423065413d3d, https://itc.gov.my/tourists/discover-the-muslim-friendly-malaysia/malaysia-the-worlds-leading-halal-hub/. The domination of some Muslim minority countries in particular economic sectors of the halal industry clearly indicates that the halal industry still has room for development even in a country with a lesser population of Muslim. to be killed in Islam such as woodpeckers (Department of Standard Malaysia, 2009). The needs for a better quality meat product lead to modernization in slaughtering process and techniques namely thoracic According to the Pew Research Centre, the number of Muslims worldwide is expected to increase by 75% from 1.6 billion in 2010 to 2.8 billion in 2050. However, in 2018, it slightly declined from the previous year due to the challenging time in the palm oil industry, including the lower palm oil derivatives, Hanisofian Alias said (The Malaysian reserve, 2019). It can be seen from the increase of halal products in many countries which is not limited only to Muslim majority countries. We identify halal authenticity problems in meat and meat products. Halal – Halal is an Arabic word which means ‘permitted’ or ‘lawful’. Based on the explanation above, the halal industry can be defined as an industry that conducts its business in accordance with Islamic regulation. Halal meat Adulteration Issues Adulteration is defined as the addition of undeclared substances or materials so as to increase A Jakim officer checks the halal certificate of a restaurant in Alor Setar. This shows that the demand for the halal industry will likely increase in the future. According to the Oxford dictionary, the word halal can be defined as meat from an animal that has been killed according to Muslim law. The same goes with the next two sectors, halal pharmaceutical and halal cosmetics where the domination of exporting countries to OIC still belonged to the western countries. Halal animals are slaughtered to express respects to them and to thank Allah for It's gifts in providing the animal as clean and healthy food. It also applies to the process of trade or commerce and to activities in the services sector (SMEinfo, 2018). It will help this country to have a greater competitive advantage, bring in higher wages and increase job opportunities. To achieve that goal, Halal Industry Development Corporation (HDC) is established and one of the bold movements under HDC is the establishment of Halal Park. Retrieved from: https://afrief.org/wp-content/uploads/2019/06/GLOBAL-HALAL-ECONOMY-REPORT.pdf, https://edition.cnn.com/2016/08/29/world/halal-industry/index.html, https://www.cekindo.com/blog/indonesias-halal-industry-redefining-traditions-travel-fashion-business, https://www.alimentarium.org/en/knowledge/history-halal-market-west, https://www.grantthornton.co.id/publications/Halal-is-the-industrys-new-chapter/, https://www.oxfordlearnersdictionaries.com/definition/english/halal. Halal authentication is crucial for consumer protection and fair trade. Retrieved from: http://www.miti.gov.my/index.php/dl/563068584d6a41784e6c39505131395462476c6b5a584d756348423065413d3d, Visit Malaysia 2020. From 2010 to 2017, the total investment in Halal Park has reached MYR 13.27 billion and it has received a total of 14 Halmas throughout Malaysia. Literature Review Figure 1 proposed the conceptual framework of the halal supply chain in food industry of Malaysia. <> For example, a cow must be slaughtered in accordance with Islamic procedures before being consumed by Muslim, otherwise, it will be prohibited to be eaten. The most recent and obvious proof is the Halal Industry Master Plan (HIMP) 2008-2020, in which its vision is to make Malaysia as the global halal hub. also applicable to all foreign establishments intending to export their products to Malaysia “Halal exports to reach RM45b this year”. “Malaysia mulls integrating halal industry, Islamic trade finance”. Halal activities are obligatory to every Muslim. It also refers to something acceptable according to Muslim religious law. The one day program will gain an understanding of the definition of basic concepts of halal slaughtering, issues and methods of slaughtering in Halal industry. Review Halal authenticity issues in meat and meat products Khadijah Nakyinsige a,d, Yaakob Bin Che Man a,b,⁎, Awis Qurni Sazili c a Halal Products Research Institute, Universiti Putra Malaysia, 43400, Selangor, Malaysia b Department of Food Technology, Faculty of Food Science and Technology, Universiti, Putra Malaysia, 43400 UPM, Serdang, Selangor, Malaysia <>/Metadata 277 0 R/ViewerPreferences 278 0 R>> C. The halal industry in Malaysia and how it affects the Malaysia economy. Halal Malaysia Portal (2017) has defined halal as, it is a product or services which has been recognised by the authority, according to syara’ or Islamic law, and the product or services has a halal logo. Halal Industry Development Corporation. TANJUNG MALIM, Jan 6 — Standard operating procedures (SOPs) relating to halal food products will be launched in the near future, said Minister in the Prime Minister’s Department (Religious Affairs) Datuk Seri Zulkifli Mohamad Al Bakri. Retrieved from: MITI. %PDF-1.7 The growing. %���� We highlight requirements for producing halal meat products. It means that more jobs emerged as a result of Halal Park. To tackle this issue, the commonly accepted standards among certification bodies globally must be made in order to avoid duplicate certification costs and reduce complexity (State of the Global Islamic Economy Report 2018/19). Sayuti, 2011). Retrieved from: https://www.thestar.com.my/business/business-news/2019/04/03/malaysia-mulls-integrating-halal-industry-islamic-trade-financeThe Malaysian Reserve (2019). Many countries that have recognized the urgency of the halal industry and its potential are now racing to be the top of halal product providers. Muslim consumers nowadays are faced with a broad selection of products This is due to the rapid increase in the total value of Malaysia’s export. x��=]s�6��S5���FmY4 �J�ʟ��3I��{[w�}�-��,*$5>���n�%�cAN�fl эF ��i���]|���i��w��$����\����y9=�9(yS���O������iur�]���G1��:eA�LF�:aQƃj��ݿ�,޿;�y�����Eq�ܿ���ZFY�i�"���C =����w���NG�n~x��:���w��H�.ׂ��DR��]���H�OG��,��%"J�� �%i$�d�cLT`����C�E�p �����DW.2|? The desired outcome of this policy is to make Halal as the new source of economic growth (MITI). Malaysia users especially Muslims are concerned on these issues as it involves on the question of halal and haram which is fundamental in Islam. “Global Halal industry: An overview of current developments and future perspectives”: https://www.researchgate.net/publication/332120184_Global_Halal_industry_An_overview_of_current_developments_and_future_perspectives. As for the halal scene in Malaysia, Malaysia’s halal industry contributed about 7.5% of Malaysia’s GDP in 2017. 1 (2018): 1-17, MITI. toys, games and sport, b). And the top 5 countries in exporting halal cosmetic products to OIC countries are French ($2.6 billion), UAE ($1.2 billion), Germany ($1.1 billion), USA ($1 billion), and China ($0.8 billion). endobj “Global Halal industry: An overview of current developments and future perspectives”: https://www.researchgate.net/publication/332120184_Global_Halal_industry_An_overview_of_current_developments_and_future_perspectives https://theaseanpost.com/article/booming-halal-industry https://www.mordorintelligence.com/industry-reports/europe-halal-food-and-beverages-market https://www.marketresearch.com/Infiniti-Research-Limited-v2680/Halal-Food-Europe-10059813/ https://www.newsweek.com/where-halal-food-come-brazil-worlds-top-meat-exporter-will-scandal-change-1077247 Halal Industry Development Corporation. The world has seen the rapid growth of the halal industry in recent years. The halal product market is expected to grow by 28% from 2016 to 2022. It is alarming to note that as much as 90 % of the meat and poultry sold as halal in the Pakistan, Malaysia, Saudi Arabia, Egypt, Scandinavian Countries even in … Both play a pivotal role in building the country’s reputation as the global reference and trade centre for the new mainstream halal industry since 2003 (Visit Malaysia 2020). In addition, these facts will be very interesting to observe as the halal industry is now regarded as the engine of economic growth. For example, in terms of halal food, Brazil and Australia are the leading countries in meat and live animal exports to Organization of Islamic Cooperation (OIC) countries with $5.5 billion and $2.4 billion respectively. The Islamic criteria that must be met while slaughtering the animals are clear-cut; any deviation from them will render the animal unfit for Muslim consumption. 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