With the halal market set for significant expansion, Bumiputera Small and Medium Enterprises (SMEs) in Malaysia are increasingly pursuing halal certification as a key strategy. This certification not only helps them gain consumer trust but also enables market expansion and reinforces ethical business practices.
This trend aligns with Malaysia's goal of establishing itself as a global halal hub, while allowing Bumiputera SMEs to serve Muslim consumers with integrity. Halal certification for food, pharmaceuticals, cosmetics, and services assures that products adhere to Islamic guidelines—an essential factor for Muslim consumers.
For many Bumiputera entrepreneurs, however, obtaining halal certification goes beyond reaching the market. It reflects a deeper commitment to community welfare, ethical production, and moral responsibility, resonating with Islamic values of fairness, cleanliness, and respect for consumers and the environment.
Many Bumiputera SMEs view halal certification as a way to contribute to the broader community by ensuring their products are safe, healthy, and ethically sourced. This prosocial approach aligns with their goals and strengthens their reputation among customers who prioritize ethical standards.
Halal-certified products, therefore, appeal not only local consumers but also global markets that value quality, hygiene, and ethical principles. In today's competitive market, halal certification has emerged as a potent marketing tool. For Bumiputera SMEs, particularly those catering to Muslim consumers, this certification sets them apart from non-certified competitors and fosters a reputation grounded in trust and ethical values.
As consumer awareness increases, halal certification signals a commitment to quality and high standards. By obtaining this certification, Bumiputera SMEs show a sincere dedication to their community and the integrity of their products.
Nevertheless, obtaining halal certification can be challenging for many Bumiputera SMEs.
Financial hurdles, administrative requirements, and the stringent certification process often act as deterrents. To address these issues, government agencies like the Halal Development Corporation (HDC) and the Malaysia External Trade Development Corporation (MATRADE) provide financial subsidies, guidance, and training to support SMEs in securing and maintaining halal certification.
Encouraging more Bumiputera SMEs to obtain halal certification supports Malaysia’s goal to become a global leader in the halal market. Prosocial behaviour remains to be a strong driving force for these businesses. With ongoing government support, more SMEs can secure halal certification, promoting economic growth and creating a positive social impact.
As more Bumiputera SMEs pursue halal certification, they not only meet consumer expectations but also reinforce values of trust, quality, and integrity. The combination of prosocial motivations and dedicated support from government agencies unlocks immense potential for these businesses, helping them grow while building a reputation grounded in ethics.
As more Bumiputera SMEs pursue halal certification, they not only fulfill consumer expectations but also reinforcing values of trust, quality and integrity. The combination of prosocial motivation and strong government support unlocks immense potential for these businesses, helping them grow while building a reputation grounded in ethics.
Thus, halal certification is not just a competitive edge, but it offers a platform to Bumiputera SMEs to exhibit prosocial behavior, contribute positively to the community and support to the global movement toward ethical business practices.
AUTHOR ZIEHANIE SHAFIAI Lecturer at Politeknik Seberang Perai with CO-AUTHOR DR RADIAH MOHAMAD Senior Lecturer at Universiti Tun Hussein Onn Malaysia.
This is the author's personal view and does not necessarily represent the views or official position of RTM.