Developing A Strategic Halal Trade Performance Framework for Halal Food Import in Malaysia

Nor Bakhriah Sarbani,Harlina Suzana Jaafar

doi:10.6007/ijarbss/v11-i9/10830

Abstract

The considerably increasing demand for trading across border have involved massive border operation activities, thus dragged the supply chain into complicated activities. Trade facilitation becomes significant as it brings successful international measures to eliminate unnecessary time and cost burden associated with border administrative operations. Four main principles, namely simplification, harmonization, standardization, and transparency form the foundations of trade facilitation. These principles are translated into specific operational objectives namely speed, dependability, quality, cost and flexibility to measure the principal goals. Concurrently, the rising number of Muslim populations has called for more research in the trading of halal food. Asia Pacific, being the home of 240 million Muslims also contributes to its importance. Specifically, halal food is becoming highly concerned issues that is not limited to its production, but also in larger trading activities among countries. This study aims to develop a strategic halal trade performance framework for halal food import operations. Based on 15 semi structured interviews with stakeholders of food import border clearance, this study found that regulation, policy, knowledge, experience, visibility, commitment, attitude, mentality, and consistency were significant operational determinants to strategic operational performance across every facet of the border clearance activities in the context of Halal trade across the Malaysian border.

Highlights

The considerably increasing demand for trading across border involves massive border operation activities, dragged the supply chain into complicated activities
Research Methodology Based on a qualitative research approach, 15 face-to-face in-depth interviews were conducted with selected sea freight cross border stakeholders, who involve in food import clearance operation
The main results of the study were discussed in the context of strategic and operational sea freight cross-border trade facilitation of Halal food import

Summary

Introduction

The considerably increasing demand for trading across border involves massive border operation activities, dragged the supply chain into complicated activities. Trade facilitation becomes significant as it brings successful international measures to eliminate unnecessary time and cost burden associated with border administrative operations based on four main principles, namely simplification, harmonization, standardization, and transparency. It implies the breadth of logistics activities that depend on the number of actors involved in the cross border supply chain process including the physical infrastructure services and the number of regulatory border control that are imposed on certain import trade (Shepherd & Hamanaka, 2015). This paper develops a strategic halal trade performance framework in the context of halal food import in Malaysia as manufacturing activities beyond the Malaysian border might subject to various and unstandardized halal compliance practices

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Conclusion