As Malaysia aims to strengthen its standing in the global halal market, Bumiputera small and Medium Enterprises (SMEs) increasingly consider halal certification a crucial strategy to enhance their market reach and credibility.
This certification is a testament to compliance with Islamic dietary laws as well as quality and safety standards. It attracts both Muslim and non-Muslim consumers who trust the rigorous processes involved in producing halal products.
Halal certification can open new markets domestically and internationally, especially for Bumiputera businesses, which allows them to tap into the ever-growing global demand for halal goods and services.
According to Malaysia’s Department of Statistics, the global halal market is valued at over USD 2 trillion and is projected to grow, with Southeast Asia at its core. For Bumiputera SMEs, halal certification offers an advantage in both standing out locally and gaining access to this lucrative global network, where halal-compliant products are not only preferred but sometimes mandated.
In Selangor International Business Summit (SIBS), SELHAC 2024, Dr. Mohammad Fahmi Ngah, Selangor’s Executive Councillor for Islamic Affairs, noted that SMEs’ halal certification is critical for reaching Muslim consumers worldwide, especially within ASEAN, where approximately 60% of the 650 million population identify as Muslims.
Fahmi emphasized that the real potential for growth lies in markets beyond Malaysia, with significant demand for halal-certified products in countries such as Saudi Arabia, China, and Canada.
Despite these opportunities, the path to obtaining halal certification remains challenging for many Bumiputera SMEs. Limited knowledge about the certification process, perceived high costs, and stringent requirements often deter small business owners.
The application process includes compliance with specific sourcing, handling, processing, and packaging standards, which can be alarming, especially for SMEs with limited resources. Yet, for many Bumiputera entrepreneurs, the long-term benefits of certification outweigh these initial obstacles, promising higher credibility and a distinct advantage in a competitive market.
Support from government agencies and industry associations is pivotal. Initiatives by Malaysia’s Halal Development Corporation (HDC) and the Malaysian Islamic Development Department (JAKIM) have made strides in easing the certification process through training programs, funding support, and streamlined procedures tailored for SMEs. By providing structured support, these entities help alleviate some of the financial and technical barriers to certification.
Furthermore, Bumiputera SMEs that earn halal certification not only boost their own brand credibility but also contribute to Malaysia’s broader economic and cultural goals. Halal-certified products from Malaysia are regarded as premium, safe, and trustworthy, enhancing the country’s reputation in the halal market. For SMEs, certification is not just a badge of compliance but a proactive approach to growth and sustainability.
Author
Ziehanie Shafiai
Lecturer, Jabatan Perdagangan
Politeknik Seberang Perai
Dr. Nasarudin bin Ismail
Senior Lecturer, Software Engineering Department,
Faculty of Computer Science and Information Technology,
Universiti Tun Hussein Onn Malaysia (UTHM).
It is the author's personal view and does not necessarily represent the view or official position of RTM.