Factors influencing halal certification application among SME Bumiputera food and beverage manufacturers in Malaysia

Abstract

Halal-related markets are one of the fastest-growing businesses among established companies and small, medium-sized industries (SMI). In 2020, notable successes were attained in Malaysia's halal industry due to the industry’s overall performance. A prominent marketing and sales strategy that halal certification represents for businesses is highlighted by the Malaysian Administrative Modernisation and Management Planning Unit (MAMPU). Even though halal certification is becoming increasingly important for many businesses in Malaysia, SME Bumiputera entrepreneurs have yet to obtain their halal certification. This exploratory study aims to gain an in-depth understanding of the reasons why the SME Bumiputera food and beverage manufacturers in Malaysia are reluctant to apply halal certificate. This study employs a qualitative research design in which primary data is collected from interviews. The findings reveal that trust is the main reason for applying halal certification. The investigation also discovered that integrity, resources, and knowledge are the most trusted aspects related to halal certification. These trust-related aspects will serve as a wake-up call to relevant agencies continuously enforcing the halal certification to fulfil the country’s aspiration to become a centre for the global halal hub.