When dealing with the blossoming Halal industry, is being Muslim sufficient to make a product Halal? Not if you want to be a serious player. The Muslim Consumer Association of Malaysia gives its views.
The Halal issue has been getting a wide coverage in the Malaysian Media lately, much to the chagrin of Muslim consumers: the non-conformity of Halal regulations by so-called Halal products in the market. The Muslim Consumers Association of Malaysia has uncovered these violations of rights, which could retard the government’s effort to evolve our country into a leading manufacturer of Halal products. What could be the world’s perception of Malaysia – lauded as one of the prominent Halal certification authorities in the world – should these unjust violations be allowed to continue? This is undeniably an act of economic sabotage.
The Malaysian Islamic Development Department (JAKIM) has played a gargantuan role in its Halal certification efforts. Various efforts have been pioneered by this agency since 1971, and to date, several non-governmental agencies, as well as private sectors, have increased their involvement to support the government’s efforts in line with the current challenges in the Halal industry.
Recently, Malaysia, through its agencies such as JAKIM, Department of Standards Malaysia, Institute of Islamic Understanding Malaysia and Malaysian Institute of Industrial Research and Standards (SIRIM), have developed a comprehensive Halal food standard called the MS1500:2004. Based on previous standard developed by SIRIM (MS1500:2000), with some latest inputs from JAKIM and Research Institute of Standards in Islam, it has effectively promulgated Malaysia as the world’s first to issue standards for the manufacturing, preparation, managing and storage of Halal foods.
The MS1500:2004 standard, covers the guidelines of Food Safety Principle (MS1514), Hazard Analysis Critical Control Point (HACCP-MS1480) as well as guidelines for good cleaning practice for small and medium food industries towards a HACCP by the Ministry of Health Malaysia.
After a complicated and arduous process, the standard was finally launched by the Prime Minister of Malaysia, Dato’ Seri Abdullah Ahmad Badawi on August 16th, 2004. This new standard can be applied by all food manufacturers in Malaysia.
Nevertheless, a question remains: how do Muslim manufacturers in Malaysia feel about this standard? Facts show that most do not bother applying for any Halal standard or certification, as they are content with the perception that food produced by Muslims is automatically Halal. This particular scenario is portrayed in the JAKIM’s Halal guidebook and also in a publication by KasehDia, a local communication arts company, on Halal food and beverage outlets. It is concluded that more than 90 per cent of the companies listed in the publications are either multi-nationals or non-Muslim owned. In other words, many Muslim companies have yet to apply for their Halal certification.
The misconstrued perception of ‘food produced by Muslims is unquestionably Halal’ has led to some non-Muslim manufacturers taking advantage of the situation by abandoning the Halal certification process and instead, using Malay or Arab product names to attract Muslim consumers. Many have eventually succeeded. Even several multi-national companies are currently using this malicious method.
Are Muslim companies or Small and Medium Industries (SMI) willing to invest some capital to abide by the MS1500:2004 like they should?
In answering this pertinent question, these industry players will have to face the following issues: Firstly, they need to understand the rationale behind the certification – why are they going Halal? Secondly, current non-Muslim customers will continue to buy their products, even if they are non-Halal – is it worth it to go Halal? Finally, Muslim consumers still take the issue lightly as long as they assume the manufacturer is Malay or Muslim – so, is there really a valid reason for them to go for a Halal certification?
Is there any merit in adopting new policies to address this issue? Or should the market be left to depend on the increase of population, particularly the Muslim’s?
Therefore, the established perception on Halal food should be altered because Halal does not only cover the rituals of Muslim norm such as animal slaughtering, but it also encircles all aspects of cleanliness, safety, preparation, storage and purification. Other features, aside from those, which have been translated to form the MS1500:2004 standard, are called tayyibah (wholesome aspects). If Muslim manufacturers remain stationary in their traditional tide, they will be slowly engulfed by the globalisation wave. Quality aspects are essential in the open market. Muslim manufacturers must take advantage of the reputation and credibility of the Malaysian Halal logo, which has received a worldwide acknowledgement and recognition.
Consider the following figures: Malaysian Muslims will spend RM5 billion a year on Halal food if their expense per capita is RM1 daily. More than 60 per cent of these Malaysians will go for competitively-priced high quality Halal food. However, only a few Muslim SMIs fulfil these criteria.
In the international scene, the worldwide demand for Halal food is expected to increase to RM2 trillion in the year 2005, and this enormous potential must be seized by Muslim manufacturers to enhance the confidence of food importers of other Islamic countries. This is an advantage should these manufacturers comply and adhere to the MS1500:2004 standard.
According to the Ministry of International Trade and Industry (MITI), readymade food manufacturers from Malaysia have penetrated into 80 countries worldwide. Muslim manufacturers and businessmen are able to construct and strengthen trade relations through the Islamic Chamber of Commerce as well as Trade Chambers of the Organisation of the Islamic Conference countries.
The government has also taken measures to ensure that the Halal standards will only be issued in Malaysia. This will expand opportunities for Malaysian manufacturers to partake bilateral efforts to increase the value of products to be exported to third world countries. Every product that requires a Halal certification will view Malaysia as a comprehensive increment of value as well as certification centre. This strategy is also hoped to generate income for the country from foreign currency exchange.
Muslim manufacturers must grasp the paradigm shift and seize the opportunity in the course of the incentives made through the 2005 Budget recently declared. This includes two times deduction for the cost involved to furnish for the standards of the Halal certification; and for granting of 100 per cent tax investment allowance for five years for companies investing in the purchase of new and sophisticated machinery and equipment for the production of Halal food.
Who else would know more about the needs of Halal and wholesome food besides the Muslims themselves?
**This article was first published in The Halal Journal Jan/Feb 2005 edition, and was written by Zulkefli Mohamad (Information Secretary, Muslim Consumer Association of Malaysia).