SME MALAYSIA 2014
>>>>>>>>SPECIAL FOCUS • Going For A Halal Business >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Going For A
Halal Business The Arabic word Halal means lawful, allowed or permitted for Muslims, to that which is permitted by Syariah. It originated from the word Halalan Thoyiban. Halal, used in conjunction with the economy refers to business conducted in a manner permissible in Islam. When used in relation to food, it refers to food which is in compliance with the laws of Islam. ........................................................................................................................................... Malaysia contributes about 1.25% to the global halal trade of US$2.3 trillion. Although we seem to be still quite lagged behind other countries in spurring and growing the halal market, we have been aggressively promoting ourselves as can be seen in Malaysia’s halal initiatives such as strict halal certification processes which is accepted across all Muslim countries, including the Middle East. We now have SMEs exporting to Gulf Co-operation Countries (GCC) because of the Malaysia Halal logo which is at par with others. The halal industry is expected to contribute 8.5% to the country’s total exports by 2020.
The concept of Halal has slowly become accepted as a lifestyle choice covering not only religious practices and food but has also span finance and non-food products. The common understanding of halal being limited to religious needs and only applicable to Muslims is fast changing and due to this shift, the prospects of this industry is deemed gigantic. Small and medium enterprises (SMEs) should take advantage of the lucrative potentials within the burgeoning and flourishing global halal market. This is deemed the ‘in’ and ‘it’ business strategy especially when conventional and existing markets seem saturated and crowded. The halal industry is also driven from the enormous business opportunities offered by the global Muslim population of about 1.8 billion or 23% of the world’s population, which is growing daily. Malaysia’s export value for halal products in 2011 was RM35.4 billion. The halal industry is the blue ocean.
Contrary to past perception, the halal sector covers more than food products but also includes various types of services. It is also more than being compliant with regulations to obtain the halal certification to sell halal products but that these products or services must also meet international standards and consistency applied in international markets. The Malaysia Department of Islamic Development (JAKIM) is the main agency managing Islamic affairs at the Federal level and is also the secretariat to the National Council for Islamic Affairs Malaysia (MKI). The main functions of JAKIM are:• Legislation and standardization of Islamic law • Islamic administration coordination • Adjustment and development of Islamic education
OBTAINING MALAYSIAN HALAL CERTIFICATION Applications for the Halal Certification can be made directly to the Division of Islamic Food and Consumption of JAKIM. JAKIM also conducts site inspection outside the country for accreditation purposes since there are imported products in the country that carry the halal stamp. These inspections do not however determine whether the sites should cease operations or otherwise. In the event that JAKIM finds substantial evidence that a site breaches Islamic rules, JAKIM may disallows the sale of such products in Malaysia as halal.
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