Diverse halal standards in Malaysia, Indonesia, and Brunei: their effect on regional halal food trade industry development

The increase in the global Muslim community and the rising international concern towards halal product quality has brought limelight both the economic and cultural aspect of the halal food sector. With 1.9 billion Muslims worldwide and increasing health consciousness among non-Muslim consumers, the...

Full description

Bibliographic Details
Main Authors: Ab Rahman, Suhaimi, Abd Razak, Nur Izyana
Format: Article
Language:English
Published: Human Resource Management Academic Research Society 2024
Online Access:http://psasir.upm.edu.my/id/eprint/118229/
http://psasir.upm.edu.my/id/eprint/118229/1/118229.pdf
_version_ 1848867465072738304
author Ab Rahman, Suhaimi
Abd Razak, Nur Izyana
author_facet Ab Rahman, Suhaimi
Abd Razak, Nur Izyana
author_sort Ab Rahman, Suhaimi
building UPM Institutional Repository
collection Online Access
description The increase in the global Muslim community and the rising international concern towards halal product quality has brought limelight both the economic and cultural aspect of the halal food sector. With 1.9 billion Muslims worldwide and increasing health consciousness among non-Muslim consumers, the industry is experiencing significant growth. Malaysia, Indonesia and Brunei with their accreditation agencies such as BPJPH, JAKIM, and MUIB provide set high standards of food safety thus encouraging customer confidence and credibility within the market. Hence, this qualitative study examines to examine the impact of the various Halal Standards in Malaysia, Indonesia and Brunei on the growth of the Halal food trade in the region. Documentary survey and semi structured interviews were conducted with the following target groups; halal authority bodies, policymakers, industry players, academicians, and consumers. Findings imply that multiple and inconsistent halal standards act as trade barriers, inflate costs, and complicate compliance, resulting in economic disadvantages and inefficiencies. This lack of a cohesive standard requires extra audits, paperwork, and inspections which, in turn, increases costs and hinders entry into the market. In essence, the study implies that integration of the halal standards across these countries may remove operational inefficiencies, economies of scale and open market frontiers to boost the region’s competitiveness within the global halal economy market. Future research should investigate different strategies regarding to ensure halal standard harmonization and determine its potential consequences for the global economy.
first_indexed 2025-11-15T14:36:55Z
format Article
id upm-118229
institution Universiti Putra Malaysia
institution_category Local University
language English
last_indexed 2025-11-15T14:36:55Z
publishDate 2024
publisher Human Resource Management Academic Research Society
recordtype eprints
repository_type Digital Repository
spelling upm-1182292025-07-01T04:44:11Z http://psasir.upm.edu.my/id/eprint/118229/ Diverse halal standards in Malaysia, Indonesia, and Brunei: their effect on regional halal food trade industry development Ab Rahman, Suhaimi Abd Razak, Nur Izyana The increase in the global Muslim community and the rising international concern towards halal product quality has brought limelight both the economic and cultural aspect of the halal food sector. With 1.9 billion Muslims worldwide and increasing health consciousness among non-Muslim consumers, the industry is experiencing significant growth. Malaysia, Indonesia and Brunei with their accreditation agencies such as BPJPH, JAKIM, and MUIB provide set high standards of food safety thus encouraging customer confidence and credibility within the market. Hence, this qualitative study examines to examine the impact of the various Halal Standards in Malaysia, Indonesia and Brunei on the growth of the Halal food trade in the region. Documentary survey and semi structured interviews were conducted with the following target groups; halal authority bodies, policymakers, industry players, academicians, and consumers. Findings imply that multiple and inconsistent halal standards act as trade barriers, inflate costs, and complicate compliance, resulting in economic disadvantages and inefficiencies. This lack of a cohesive standard requires extra audits, paperwork, and inspections which, in turn, increases costs and hinders entry into the market. In essence, the study implies that integration of the halal standards across these countries may remove operational inefficiencies, economies of scale and open market frontiers to boost the region’s competitiveness within the global halal economy market. Future research should investigate different strategies regarding to ensure halal standard harmonization and determine its potential consequences for the global economy. Human Resource Management Academic Research Society 2024-06-03 Article PeerReviewed text en cc_by_4 http://psasir.upm.edu.my/id/eprint/118229/1/118229.pdf Ab Rahman, Suhaimi and Abd Razak, Nur Izyana (2024) Diverse halal standards in Malaysia, Indonesia, and Brunei: their effect on regional halal food trade industry development. International Journal of Academic Research in Business and Social Sciences, 14 (7). pp. 2064-2071. ISSN 2222-6990 https://hrmars.com/index.php/IJARBSS/article/view/22141/Diverse-Halal-Standards-in-Malaysia-Indonesia-and-Brunei-Their-Effect-on-Regional-Halal-Food-Trade-Industry-Development 10.6007/ijarbss/v14-i7/22141
spellingShingle Ab Rahman, Suhaimi
Abd Razak, Nur Izyana
Diverse halal standards in Malaysia, Indonesia, and Brunei: their effect on regional halal food trade industry development
title Diverse halal standards in Malaysia, Indonesia, and Brunei: their effect on regional halal food trade industry development
title_full Diverse halal standards in Malaysia, Indonesia, and Brunei: their effect on regional halal food trade industry development
title_fullStr Diverse halal standards in Malaysia, Indonesia, and Brunei: their effect on regional halal food trade industry development
title_full_unstemmed Diverse halal standards in Malaysia, Indonesia, and Brunei: their effect on regional halal food trade industry development
title_short Diverse halal standards in Malaysia, Indonesia, and Brunei: their effect on regional halal food trade industry development
title_sort diverse halal standards in malaysia, indonesia, and brunei: their effect on regional halal food trade industry development
url http://psasir.upm.edu.my/id/eprint/118229/
http://psasir.upm.edu.my/id/eprint/118229/
http://psasir.upm.edu.my/id/eprint/118229/
http://psasir.upm.edu.my/id/eprint/118229/1/118229.pdf