Brunei as a Global Halal Food Hub: Production Network and Strategic Relations in Halal Food Production

Abstract

As an Islamic nation producing Halal food products, Halal food producers in Brunei are expected to have essential economic strategies to exploit the benefits of the Halal market, and eventually drive the country in becoming a global Halal hub. However, due to the scarcity of information and limited availability of knowledge on Brunei as a global Halal hub, it is difficult to determine the position of Brunei as a hub. Thus, the main aim of this research is to investigate whether Brunei has grown into a global-regional halal hub, specifically on in food production. The research findings do suggest that Brunei is well connected in terms of exportation and outsourcing activity on raw materials, technology, and services, on a regional scale. Network embeddedness through strategic coupling and decoupling of inter and intra-firms’ relations within and beyond the borders based on cost-capability ratio, the infrastructure for business transactions, and the network complementarities in terms of raw materials, technologies, research and development (R&D), and services have an impact on Brunei's hub in the making’ status. However, some aspects need to be addressed that can affect long-term sustainability and competitiveness. This includes producers’ production capabilities marked by lack of R&D, low intensity of exportation activity, and the lack of two-ways traffic communication between the government and the private sectors. This, if not addressed, will hinder the expansion of Brunei into the global market and stifles the country’s current progress to upgrade itself into a global halal hub.