Global Halal Hub Research Articles

Enhancing Malaysia’s Halal Brand Identity: Insights and Strategies for Sustainable Global Halal Hub

Halal branding has become an essential strategy for businesses to cater to the needs of Muslim consumers and tap into a rapidly growing market. Malaysia has positioned itself as a global halal hub, attracting Organisation of Islamic Cooperation (OIC) food manufacturers and becoming a trusted source of halal products and services. However, developing a distinct Malaysia’s halal brand identity remains a challenge. This article explores the importance of developing a strong halal brand identity for the sustainability of Malaysia as a global halal hub. The study conducted in-depth interviews with eight identified respondents who were either chief executive officers, presidents of participating companies, or partners and directors of various government agencies at local and international branches. The study discusses successful halal brand identity campaigns undertaken by major global and regional brands, focusing on promoting halal values, ethical practices, and the benefits of halal products. To develop a strong halal brand identity, comprehensive marketing and communication strategies are recommended, utilising the effects theory to craft effective digital marketing strategies that resonate with Muslim consumers and promote ethical consumption.

Indonesia's Global Halal Hub: Competitive Strategies for Leadership

Indonesia, with the world's largest Muslim demographic bonus, does not seem to have achieved enough capital to reach the top rank of the global Islamic economy. Although the vision of Global Halal Hub 2024 is supported by the government, this research highlights Indonesia's lack of awareness of its competitive advantages, which attracted the author's attention to explore further. Qualitative and descriptive analysis are the methods in this research. This paper refers to the concepts of Competitive Advantage of Nations developed by Michael E. Porter, namely factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry. Through factor condition analysis, it can be seen that to achieve a competitive advantage in the halal industry, Indonesia needs to improve its logistics infrastructure and develop human resource expertise in halal certification, research stimulation, and product innovation. Demand conditions then indicate the need for increased consumer education and diversification of halal products. Meanwhile, the concept of related and supporting industries targets strengthening halal guarantee institutions and government support. The indicators of firm strategy, structure, and rivalry focus on developing global marketing strategies and international partnerships. To achieve Global Halal Hub status, researchers highlight the importance of comprehensive and collaborative approaches, such as integration in strengthening logistics infrastructure, increasing human resource expertise related to halal certification, and increasing research and product innovation. In addition, consumer education and cooperation with institutions and governments play a vital role in creating favorable conditions. Keywords: Comparative Advantage, Halal Hub, Indonesia Indonesia, dengan bonus demografi umat Muslim terbesar dunia, tampaknya belum mencapai modal yang cukup untuk mencapai peringkat teratas perekonomian Islam global. Kendati visi Global Halal Hub 2024 didukung oleh pemerintah, penelitian ini menyoroti masih kurangnya kesadaran Indonesia terhadap keunggulan-keunggulan kompetitif yang dimiliki, sehingga menarik perhatian penulis untuk menelaah lebih lanjut. Metode kualitatif dan analisis deskriptif menjadi metode dalam penelitian ini. Tulisan ini merujuk pada konsep-konsep Competitive Advantage of Nations yang dikembangkan oleh Michael E. Porter, yakni factor condition, demand condition, related and supporting industry serta firm strategy, structure, and rivalry. Melalui analisis factor condition, terlihat bahwa untuk mencapai keunggulan kompetitif dalam industri halal, Indonesia perlu meningkatkan infrastruktur logistik serta pengembangan keahlian sumber daya manusia dalam sertifikasi halal, stimulasi riset, dan inovasi produk. Demand condition kemudian menunjukkan perlunya peningkatan edukasi konsumen dan diversifikasi produk halal. Sementara itu, konsep related and supporting industry menargetkan penguatan lembaga penjaminan halal dan dukungan pemerintah. Adapun indikator firm strategy, structure, and rivalry berfokus pada perlunya pengembangan strategi pemasaran global dan kemitraan internasional. Guna mencapai status Global Halal Hub, peneliti menyoroti pentingnya pendekatan-pendekatan komprehensif dan kolaboratif, seperti integrasi dalam penguatan infrastruktur logistik, peningkatan keahlian sumber daya manusia terkait sertifikasi halal, dan peningkatan riset serta inovasi produk. Selain itu, edukasi konsumen dan kerja sama dengan lembaga serta pemerintah memainkan peran vital dalam menciptakan kondisi yang mendukung. Kata-kata Kunci: Keunggulan Komparatif, Halal Hub, Indonesia

Developing Halal Cosmetics Awareness Module: A Case Study in Malaysia

In conjunction with the rise of the number of world Muslim population and beauty awareness, the halal market in beauty products is anticipated to increase due to the growing demand of Muslim consumers. Malaysia is a predominantly Muslim countries and is amongst the biggest contributor towards the development of global halal hub. However, there is still a dearth of understanding among consumers and manufacturers of cosmetic products in terms of the meaning and the requirements needed for a cosmetic product to be deemed as Halal. There are also a serious lack of trust and awareness of halal products in cosmetic industry especially among consumers. Therefore, the development of the halal cosmetic awareness module is an effort to facilitate the cosmetic industry in Malaysia to comply with the Shariah requirements.

Islamic Entrepreneurial Marketing Orientation Among Islamic University Students

Indonesia plans to be the number one global halal hub that need support of massive Islamic entrepreneurial marketing capabilities. This study aims to assess Islamic entrepreneurial marketing orientation among university students. The sample used was students of the Faculty of Economics and Islamic Business UIN Prof. K.H. Saifuddin Zuhri Purwokerto who had participated in a business internship program (PMBM). Data were collected using questionnaire instruments and analyzed using Confirmatory Factor Analysis technique. The results revealed that Islamic entrepreneurial marketing orientation proved to be a multidimensional construct consisting of factors such as: Activeness, Opportunity orientation, Risk orientation, Innovation orientation, Customer orientation, Value orientation, Committed and Shari'ah conformance. The results showed that the dimensions of Islamic entrepreneurial marketing orientation of respondents were generally quite good. This can be seen from the percentages that are above the 70% criterion). As for the dimensions that are still low are proactiveness (64%) and risk orientation (59%). This study provides novelty by finding that the implementation of sharia conformance is proven to be important in building Islamic entrepreneurial marketing orientation among Islamic students in Islamic university. However, other factors need to be emphasized more in the development of the programme since the results show that other factors are stronger in forming the students orientation in Islamic entrepreneurial marketing. Future research can be conducted by developing similar research on Islamic students in other region and in privat university.

Factors Influencing Readiness towards Halal Logistics among Food and Beverages Industry in the Era of E-Commerce in Indonesia

Based on Global Islamic Economy Indicator 2019/2020 report, Indonesia is in the fourth position globally as a country that uses a Sharia economic system. Seeing Indonesia's opportunities, it should be able to act as a regional and global halal hub. Efforts to encourage the halal industry through strengthening the halal value chain are one of the strategies to encourage Indonesia to become a global halal hub player. This study utilizes the structural equation modeling to examine relationships among key factors affecting readiness towards halal logistics in the food and beverages industry in Indonesia. 13 key factors are confirmed with measurement-model results, including (1) Cleanliness, (2) Safety, (3) Islamic Dietary Law, (4) Physical Segregation, (5) Material Handlings, (6) Storage and Transport, (7) Packaging and Labelling, (8) Ethical Practices, (9) Training and Personnel, (10) Resource Availability, (11) Innovative Capability, (12) Marketing Performance, (13) Financial Performance. The population in this study is in the food and beverage industries, especially in Semarang, Yogyakarta, Malang, and Surabaya. Cluster random sampling was used in this research with as many as 150 sample respondents. A survey with an online questionnaire was conducted in this research. The structural-model results reveal directions of relationships among key factors. Resource availability, training and personnel, and innovative capability are the most important factor in halal supply chain readiness. Further research can focus on other industrial sectors, such as fashion and tourism, as stated in the 2019-2024 Indonesian Sharia Economic Masterplan

Sumber Daya Manusia dalam Mewujudkan Halal Entrepreneurship di Indonesia

Entrepreneurship is the thing that contributes the most to world economic development, especially in developing countries such as Indonesia. One of the most popular is halal entrepreneurship today. Indonesia itself is targeting the vision of becoming a global halal hub in the world in 2024. For Indonesia it is not an easy matter to realize this vision, this is because it is experiencing obstacles from the Usaha Mikro, Kecil dan Menengah sector which is still a lot of obstacles in the process of providing halal assurance and The readiness of human resources is still few who are aware of the importance of halal products. This research contributes more specifically to the discussion of human resources who are aware of the halal assurance required and in accordance with Islamic provisions, as well as formulating human resources as the main capital in Halal entrepreneurship.

40 Years of Malaysia's Look East Policy and Relocation of Indonesia's Capital: Serumpun Solution in Sarawak-West Kalimantan Cross-Border Halal Hub

The relocation of Indonesia's new capital to Kota Nusantara (East Kalimantan) is a game changer. It creates a spill-over of the prosper thy neighbour policy upon the existing West Kalimantan-Malaysia Sarawak border for the first Japanese Big Eon in Kuching (Malaysia's Sarawak) and potential Halal Wagyu beef market in Pontianak (Indonesia's West Kalimantan). Both countries should seize this golden opportunity to revisit their respective Look East Policy (LEP) with Japan and integrate Japan's advantages in quality assurance to overcome different regulatory Halal practices. After all, sustaining the Halal economy is no longer determined by the growing Muslim population alone but a shared knowledge and mutual policy lessons on Halal regulations and quality assurance. While both countries are essential players in the global halal hub and shared trade borders, there needs to be more harmonisation between Kalimantan-Sarawak's cross-border halal framework. With the Indonesian decision to relocate to a new capital, Kota Nusantara (located in East Kalimantan), there is a severe immediate need to bring LEP's benefits and profile the existing business ecosystem in Kuching (the capital of Sarawak) and Pontianak (capital of West Kalimantan).

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

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.

Governance of Halal Logistics Compliance

The sudden turbulence in the economy because of the pandemic in 2020 did not deter logistics operations. The ability of many logistics networks was put to the test when being overwhelmed by the impact of the COVID-19 pandemic. As an industry trying to realise the fourth industry revolution (4IR) with blockchain technology, challenges are perceived in terms of commitment among companies involved in the supply chain, mainly the logistics of small and medium enterprises (SMEs). Visualising itself as a leading global Halal hub, Malaysia needs to zoom in on the logistics SMEs to understand their readiness for halal compliance to support them in halal traceability issues possible to be solved with 4IR technology. Currently, only the manufacturer or producer of food is required to be awarded halal certification, instead of every company within the supply chain, bringing out doubts on how the transportation and movement of the products comply with the halal integrity and regulations. This study zooms into the operational level of logistics SMEs by performing qualitative research on a few logistics SMEs approachable during the pandemic year. Case studies on the responding companies are produced based on the interview survey and observations made on the business processes during the interview. The results from the interview survey are summarised in terms of issues and challenges at ground zero that need to be considered for the governance of halal logistics compliance. The outcome of this study is the proposed framework of 3Es for the Governance of Halal Logistics Compliance.

Factors Influencing Students Intention to Choose Career of Halal Food Industry in Malaysia using Theory of Planned Behavior

Background: The food industry in Malaysia has experienced significant development, especially in the halal food sector. The halal food industry is a market segment involved with food items and beverages that are strictly prepared according to rules underlined by the Islamic dietary law. In addition, the concept of halal covers not only Syariah law, but also hygiene, sanitation and food safety requirements. Malaysia has become a major global halal hub in delivering halal food to local and international levels. The significant development of halal food industry in Malaysia creates significant job opportunities for new graduating students. Therefore, this study aims to evaluate factors that influence student intention to choose a career for the halal food industry in Malaysia. Research Methodology: This study using a quantitative research method with questionnaire development in assessing the factors that influence intention of students to involve in halal food industry as their future career. The underpinning theory is Theory of Planned Behavior (TPB). The independent variables are Attitude (A), Subjective Norm (SN) and Perceived Behavioral Control (PBC). This study developed four questions for each variable. Unit of analysis for respondents is university students in Malaysia. The sample size is 40 students that have an interest in working for halal food industry in Malaysia. The correlation analysis was analyzed using Pearson Correlation coefficient analysis. Meanwhile, the causal relationship was analyzed using multiple regression analysis. Results: The skewness values for four variables in this study are between -1 and +1 that indicates normal distribution. The value of Cronbach’s alpha statistical test for measuring internal reliability is larger than 0.7 for all four variables. Therefore, four constructs exhibit good reliability that indicates the suitability of internal consistency. Next, the value of R-squared for model fit in this study is 0.675 that indicates a good model fit that explained 67.5% of variance in dependent variable. Multiple regression analysis indicates Attitudes (A), Subjective Norm (SN) and Perceived Behavioral Control (PBC) are significant in predicting the value of Intention (I) to select a career in halal food industry. Conclusion: This study supported the hypothesis that indicates there is a positive and significant relationship of Attitude (A), Subjective Norm (SN) and Perceived Behavioral Control (PBC) towards Intention (I). The findings of this study add value to theoretical knowledge of career selection among university students. At the same time, this study provides guideline for government in developing better policy in cultivating interest among university students to be highly involved in the halal food industry.

The Promotional Language of the Halal Food Industry: Some Preliminary Findings

The global halal food industry which is currently expanding exponentially presents a huge potential for Malaysia to make her mark in this business sector. In achieving its goal to become a global halal hub by 2020, emphasis should not merely be placed on the production of the halal food products but also on its promotional aspect. Hence, this paper will highlight some preliminary findings on the linguistic features of the promotional discourse of halal food. The research, which was based on textual-linguistic analysis, utilised corpus-based technique and discourse analysis to examine one hundred written materials on halal food. The study revealed the importance of creative interplay of interdiscursivity and intertextuality which was evidenced in the lexical and phrasal constructions, discursive structures and visual representations in marketing the halal food. The findings also showed that despite the strong demands for halal certification, some local manufacturers did not display any certifications for their food products. The study provides some suggestions in improving the promotion of halal food which include certification issue and, infusion of cultural and socio-religio elements. In short, this preliminary study shows the importance of utilising the most appropriate language in conveying the idea of ‘halal’ as prescribed in the Holy Quran especially in gaining the trust of the consumers.

Authorities Perspectives Towards the Implementation of Shariah-Compliant Hotel in Malaysia

Islamic products and services have high contribution to the economy recently. This contribution has inspired Malaysia to set its mission to become a global halal hub. Halal hub generally relies on the level of awareness among Muslim particularly the authority in understanding the main concept of Shariah-compliant products and services. This paper will principally discuss on Shariah-compliant hotel industry by elaborating the important criteria from the perspectives of the authority in achieving the Shariah-Compliant hotel status in Malaysia. Focusing on qualitative method, this study used in-depth and open-ended interviews with the authorities namely JAKIM and JAHEAIK. Interviews were recorded, transcribed and analyzed. It is found that JAKIM and JAHEAIK stated very limited criteria to specify a Shariah-compliant hotel. However, through interviews, JAKIM and JAHEAIK have provided some insights on how to fully achieve the Shariah-compliant attributes. This paper is important as it can significantly provide much needed feedback from the authority perspectives for the use of interested industry players.

Exploring Islamic Tourism in Malaysia

Malaysia aims to be the global halal hub by 2020. Halal does not only cover products but also services. Tourism is part of services and becoming one of the major income for the country. In order to sustain the receipt of Muslim tourists, the government has announced Islamic tourism as one of tourism products in Malaysia. As such, there is no clear guideline on the concept of Islamic tourism to be offered to prospective tourists. This paper is an attempt to develop the concept of Islamic tourism and the practice as experienced by Malaysia will be indicators for future development of the concept of Islamic tourism. The data gathered and analyzed primarily based on qualitative method. Both observation and content analysis have been used to understand the acceptable practice of Islamic tourism. We propose that Islamic tourism is established upon economic, cultural, religious, social, spiritual and physical dimensions. It is also found that the government was very serious to develop Islamic tourism as one of tourism products and the establishment of Islamic Tourism Centre in 2008 was the proof. The initiative taken by the government was successful when a total of Arabs came to Malaysia in 2009 was 284,890 and increase year by year.

Addressing the Practice of Safety Management in Halal Industry – An Overview and A Step Towards Sustainable Cooperation

Global demands of halal products are expected to increase in near future. Hence, Malaysia has taken proactive actions to realize its aspiration in becoming a champion of global halal hub. However, this development has also brought along impact on safety level for halal industry’s workers and neighborhood. Thus, the purpose of this paper is to provide an overview of safety management in halal industry and obtains halal player’s opinion towards cooperative safety management. The research method involved analysis on current state of safety management practice in halal industry and survey. These methods are not mutually exclusive approaches but they are complimentary. The results shown that both dominance (government-to-halal industry) and individual approaches (exclusively move as an individual) aim to establish mutual cooperation between authority and halal industry in fostering a safety culture. In addition, the findings also shown that the initial development of cooperative safety management is noteworthy but yet, this approach requires further in-depth study.

MALAYSIA HALAL TRUST: BETWEEN REALITY AND CHALLENGES

Public acceptance regarding the permissibility of certain products whether it is lawful, particularly for Muslims, founded through the display or the label to verify the halal certification issued by an authorized organization. Accordingly, the Department of Islamic Development Malaysia (JAKIM) is an organization that has the authority to issue halal certificates, especially in Malaysia. Islam has laid down rules and regulations for driving humanity to adhere to the principles of Islam prescribed in the Quran and Hadith. The research methodology of this paper is by using library research methods. This article describes the rules and regulations that already mentioned in the Quran and hadith which are the two primary sources of Islam. Besides, it is also describes recent developments in the halal industry conducted by the Malaysian government. In fact, it has been a goal of the government to make Malaysia a global halal hub. The purpose of this article is to introduce Malaysia as a halal hub at the international level and to share experience in the challenges and problems when conducting activities related to the halal industry. Finally, some suggestion for improving the operations of halal in Malaysia has been proposed by the academician, so it provides an opportunity for a broad agenda for future research in the halal industry in Malaysia.

Halal Certification: A Viewpoint From Malaysian Restaurant Managers

This study focuses on halal certification from the viewpoint of Malaysian restaurant managers. The increasing demand of halal food from the Muslim and non-Muslim consumers has given a good indicator to the hospitality industry to have the eating establishments halal certified. A sample of 643 restaurant managers has been selected throughout Malaysia using systematic sampling. Questionnaires were distributed using mail survey and data was then entered to SPSS version 21 for further analysis. It is gathered from the descriptive statistics that cleanliness during food preparation, meaning of halal and halal certification is important when dealing with food in a Malaysian restaurant setting. The results indicated that restaurant managers have high expectations toward halal certification. Furthermore, halal certification does generate some benefits beyond religion that contribute to Malaysia's positioning as a tourism destination and global halal hub.

Jurisdiction and Prosecution of Halal Related Matters in Malaysia: Challenges and Prospects

Malaysia is planning to be a global halal hub country in the near future. However, it must be noted that administration of halal related matters in this country is yet to be an efficient one especially when it comes to legal issues of prosecution and jurisdiction. This paper explores the conceptual arguments of the two legal issues particularly its challenges and prospects in strengthening halal related matters in the country. This conceptual paper highlights factors that could improve the jurisdiction and prosecution of halal related matters in the country.

The cooperative approach in managing safety issues for Halal industrial parks in Malaysia: embracing opportunity

The progressive development of Halal Industrial Park is to realise Malaysia's aspiration to become a global Halal hub champion. The purpose of this paper is to provide an initial framework linking the literature on how cooperative approach would bring improvement to the safety management performance at Malaysia's Halal Park. The cooperative approach such as industrial symbiosis is synonymously linked to material and energy exchange. Thus, we explored other potential cooperation which has been paid less attention-the cooperative safety management, and the rationale of this study from Islamic perspective was also discussed. Moreover, we have also interviewed a few industrial safety experts and most of them agreed that this initiative is noteworthy especially in the context of Malaysia's industrial park. In the end, we proposed the development of future research framework whereby an intensive and in-depth study is required since the establishment of the Halal Park is still in its infant stage.

Malaysia as Global Halal Hub: OIC Food Manufacturers' Perspective

Food hubs have received attention from different groups of people who have interests related to food and agriculture. These include the food manufacturers, suppliers, and also small and medium enterprises. Malaysia as a member of the Organization of Islamic Conference (OIC) has aspirations to be the Halal Food Hub for the OIC member countries. This article aims to understand the determinants that influence the OIC food manufacturers' intention to accept Malaysia as a global Halal Hub. Three hundred manufacturers were interviewed and the data were analyzed descriptively through factor analysis. Theory of planned behavior was used to gauge the OIC manufacturers' intention to accept Malaysia as a Halal Hub. The factors affecting the food manufacturers to accept Malaysia as a Halal Hub for the OIC country members are knowledge of Malaysia's intention to become a Halal Hub, confidence in Malaysia, motivation to comply, and the market potential.

Establishing a Global Halal Hub: In-Depth Interviews

The purpose of this study is to explore the requirements needed for a country to establish itself as a global Halal hub. In this regard, this exploratory research paper uses a semi-structured in-depth interview to obtain the perceptions of Halal experts about the requirements for establishing a Halal hub. The results of the study indicate that human capital, media, research and development, events, country’s capability, public and governmental support, marketing strategy, and infrastructure comprise the vital requirements. Furthermore, from the perceptions of the experts, public and governmental support, marketing strategy, and human capital are the three most important requirements. Since this paper is an exploratory study, it provides some insights of the three experts on the establishing of a Halal hub. In addition, a quantitative study is an appropriate approach to implement the findings of this study empirically and to determine the effective components to establish a Halal hub in those countries that desire it. A practical implication of this study is the opening of a new window for any country that aspires to be a Halal hub. In this matter, this paper presents the key considerations in establishing a Halal hub for Halal certification bodies, companies and marketers involved in the Halal business. Moreover, this research attempts to influence the perceptions and attitudes of people of the country on the desirability of becoming a Halal hub, followed by a discussion on the development of a national brand. When the contribution of its people is high, a country stands the best chance of achieving its goal. Finally, this study is one of the first to seek the perceptions of experts about vital requirements that a country should pay more attention to if it wishes to establish a global Halal hub.