HALAL FOOD INDUSTRY IN MALAYSIA: KEY CHALLENGES AND THE PATH FORWARD

Abstract

The halal food sector plays a vital role in Malaysia’s economy and its position as a global leader in halal certification. Despite its growth, the industry encounters several barriers, including high certification costs, bureaucratic complexities, inconsistent standards and food safety concerns. Therefore, this study aims to identify and analyse the key challenges faced by the halal food industry in Malaysia, particularly focusing on certification processes, food safety, technological integration, and global standardization. This research uses a qualitative approach, relying on a literature review and secondary data to analyse these issues. Content and thematic analysis were employed to identify recurring themes and trends in the industry. The findings highlight that the halal certification process is particularly challenging for small and medium-sized enterprises (SMEs), which face difficulties navigating bureaucratic hurdles and high certification costs. Furthermore, food safety concerns persist, compounded by limited technological adoption, such as blockchain and IoT, which could improve transparency and traceability in the supply chain. The lack of harmonized global halal standards also creates obstacles for Malaysia’s halal food exports. The study concludes with recommendations to streamline certification processes, enhance food safety, increase consumer education, and adopt modern technologies to improve the halal food supply chain’s transparency. Additionally, international cooperation to standardize halal certification is crucial for Malaysia to maintain its leadership in the global halal food market. This research underscores the importance of addressing these challenges to ensure Malaysia’s continued success in the global halal food industry and provides practical solutions to overcome existing barriers.