Ch6&7 ISH300: Halal

Certificate in Other Countries

PREPARED BY DR RAFIDAH BINTI MOHD AZLI
ACIS UITM NEGERI SEMBILAN
 THE STUDENT SHOULD BE ABLE TO EXPLAIN :

6.1 The importance of halal certification from the business perspectives

6.1.1 International prospects in halal industry

LEARNIN 6.1.2 Halal hub in Malaysia

G 7.1 Countries with halal certification

OUTCOM
7.1.1 USA

7.1.2 China

ES 7.1.3 Thailand

7.1.4 New Zealand

7.1.5 Australia
6.1 The importance of halal certification from
the business perspectives
• Importance 1 :
• Halal certified products can be consumed and used by anyone,
including non Muslims. By commercializing Halal certified products,
the market demand is served especially in countries with a large
Muslim population.
• But if the manufacturers produce goods that are not Halal, the market
for such products will be limited to non-Muslim consumers.
• Halal products can be enjoyed by all Muslims throughout the world.
Cont’ – Importance 2

• Pew Research Center reported that Muslim is the second

largest population in the world after Christian.
• Muslim is the fastest growing population globally as
Muslim communities usually have the topmost rate of
fertility.
• Muslim population are scattered around the globe including
as minority in some countries.
• Muslim population are large in number in Asia Pasific,
Europe and North America.
• This current situation increase the potential demand on
Halal products and services.
Cont’ – Importance 3

• Halal certification and logo regarded as a new

marketing instrument in winning the hearts of
consumers.
• Failure to obtain the Halal logo may be obstacles in
marketing the product to fulfil Muslims’ needs.
• So nowadays, manufacturers need to attain Halal
certification and logo in able to compete in the global
arena.
Importance 4

• Halal certified products is gaining interest from manufacturers from Non

– Muslim countries.
• Australia, Singapore, Thailand and Japan are committed to be players in
this industry by making Malaysia as reference in remodelling their halal
strategies.
• Non Muslim countries are beginning to acknowledge the importance of
the concept of Halal and they are striving to produce Halal products.
• For example : McDonald, A&W, KFC are examples of international brand
which have given full 100% attention to Halal compliance in Singapore.
 Halal industry is believed to stimulate international prospects by
looking at the success factors such as rising incomes, increased of
demand for variety and choice of safe foods of high quality in major
markets.

6.1.1 The halal industry is growing at an estimated annual rate of 20% and
it is valued at about USD560 billion a year.
International
prospects in
halal industry The Halal component of the global economy as in 2015 estimated at
RM 8.4 TRILLION. The Halal food sector alone accounts for almost
RM 2.5 TRILLION of that total. The Halal economy is a niche that's
becoming a major sector of the international economy as it evolves
and matures to serve the needs of the worldwide Muslim
population of about 1.8 billion.
Potential Halal
Industries
• Pharmaceuticals
• Cosmetics
• Health products
• Toiletries
• Medical devices
• Service sectors : logistics,
marketing, print and electronic
media, packaging, branding and
financing.
International Halal industry prospects : Malaysia
products
• Malaysia has been consistently promoting itself as a leader in the international
Halal industry. The key areas of Halal industry in Malaysia can be categorized into
5 components:
• 1. Food products : Livestock, processed food and beverages, food retailing.
• 2. Pharmaceutical, cosmetics, and personal care, drugs and vaccines.
• 3. Additives and ingredients : food products, non-food products.
• 4. Lifestyles : Apparels, restaurant and hotels.
• 5. Services: Logistics, standard, auditing and certifications, research and
technology development and banking and finance.
• Based on 2016 data, Indonesia and Turkey are the major global
importers of Halal food and beverages while Brazil and Australia are
the major exporters.
• Amongst Halal food product exported by these countries are meat,
crops, and livestock product.
 The government of Malaysia is currently undertaking a
more holistic approach towards the development of
Halal industry and creating a Halal ecosystem with the
principal aim of positioning Malaysia as a global Halal
hub by 2020 as enshrined in the 11th Malaysia Plan.

6.1.2 Halal
hub in
The 11th Malaysia Plan lays down a total of 11 strategic
thrusts for the development and promotion of Malaysia
as the global Halal Hub.

Malaysia On the point, Malaysia has been recognized as the

pioneer in the formulation of Halal standards and Halal –
related standards ranging from production, preparation,
handling and storage of food, to general guidelines on
Halal pharmaceuticals.
Cont’

• Halal certification in Malaysia is not mandatory.

• The government does not make it obligatory for all companies to apply for
Halal certification.
• This means that importers or manufacturers has the freedom to choose
whether or not to apply for the logo since there is no law that make it
compulsory for them to do so.
• The rising demand for Halal certification in recent years is mainly
influenced by the introduction and enforcement of Trade Description Act
2011.
Cont’

As in 2013, the number of Halal certified

companies by the JAKIM surged 34% to 4,443
companies compared to 3,316 in 2012.

The majority of Halal – certified companies were

non – Bumiputera companies, representing 80%
of the industry.
QUIZZES IN CLASS
State 1 importance of Halal certification in business perspectives

What can you understand from our discussion about Malaysia Halal Hub?

Can you explain Malaysian Halal Ecosystem?

Are the Halal certification in Malaysia is compulsory?

What are the position of Malaysia in Halal industry global economy?

What are the success factors of Halal products industry globally?

Cont’
• Explain the advantages of Malaysia as the international halal hub.
• What are the Halal prospects locally and globally?
• How TDA2011 effect Halal industry development locally and globally.
END OF CHAPTER 6
Countries with Halal
Certification
Chapter 7
7.1.1 Halal Certification in USA
Introduction

• In America, the components of the halal food industry -

from the raising of livestock to the slaughtering,
processing, distributing, marketing, and retail of halal
meat products - are complex and subject to the rules of
the United States Department of Agriculture (USDA) as
well as the demands of the Muslim community.
Cont’
• In the USA, the government has minimal interference with the Halal
industry.
• Their liberal market economy ensures that any industrial Standards
stays laissez faire (a free market policy).
• Therefore, food producers have no additional incentive of obtaining
Halal certification other than gaining consumers’ trust and marketing
strategy
 Halal Law
and
Certification
in USA
USA HALAL LAW
IFANCA – USA HALAL CERTIFICATION BODY
HALALCS – USA HALAL CERTIFICATION BODY
7.1.2 Halal Certification in China
Introduction
• There is no national Halal certification authoring organization in China. Therefore, when
you travel around China from provinces to provinces, you may find that Halal Certificate
are various in different areas of China.
• The current practice in China is that each province or autonomous region has its own
policy concerning Halal food regulations.
• For instance, in Beijing, they have Beijing Halal Food Management & Regulations which
specify the details of how to start Halal food business and how to get Halal Food
Certificate.
• (islamchina.com)
EXAMPLE OF CHINA
HALAL CERTIFICATION
BEIJING HALAL FOOD REGULATIONS
Beijing Halal Food Regulations
Article 4:
• When purchasing Halal food or raw materials for
cooking Halal food, Halal Certificates or Halal Slaughter
Certificates issued by county, or city level Government
Ethnic Affairs Office or Islamic Associations must be
presented.
• The Chinese character “Qingzhen (Halal)” in Chinese
must be clearly seen on the packaging.
Article 5:
• The tools, containers and other processing facilities of
Halal food processing, transportation, storage must be
guaranteed to be used only for Halal food and there
must be a person responsible for this. The label of 
“Specially for Halal” has to be clearly marked on Halal
food processing facilities and storage facilities.
Article 6:
• There must be a Muslim who knows exactly Halal food
traditions in the managing team. Muslims hired by the
establishment have to reach a certain percentage of the
total employees (25% is the minimum requirement).
Non-Muslims hired by the establishment have to be
trained in the field of Ethnic Policy, Ethnic Tradition and
Religion.
Article 7:
• The establishment must have Business License, Hygiene License
and Tax Registration Certificates. Halal food establishment must
be inspected and approved by the Ethnic Affair's Office of County
or District level government and Halal Certificate issued by
related government offices must be hanged on your
establishment.
• This means that if your Halal establishment is located in Beijing’s
Chaoyang District, you need to bring necessary documents to the
Ethnic Affair's Office of Chaoyang District and your Halal
Certificate will be issued by Chaoyang District Ethnic Affair’s
Office.
 7.1.3 Halal
Certification in
Thailand
Halal Governance in Thailand Halal Sector

The Central Islamic Committee (CICOT)

performs national Halal management.

The committee is mandated to enforce the

law of Islamic religious affair in Thailand
such as marriage, new Muslim convert
and Halal food certification.

They set the measure and quality control

to ensure all Halal products would be in
accordance with Islamic principles and
international standard (CICOT standard).
Cont’
• In order to promote the effectiveness of Halal management and
certification process in the country, CICOT has delegated these
authorities at Provincial Islamic Committee (PIC) throughout 36 of 76
provinces around Thailand.
• However, for other areas without an Islamic Committee, CICOT would
be responsible to manage these issues.
• Logo Halal Thailand is considered as more flexible as other logos are
allowed to be used but the premise would be audited periodically by
the PIC body to ensure the Halal compliance.
Introduction

• Thailand is gaining position as one of the world’s largest producers and

exporters of processed food products.
• Its government facilitates the establishment of the Institute of Halal Food
Standard of Thailand (Halal-Thai), Halal Science Centre (HSC-CU), and the Halal
Food Industrial Estate in Pattani province as its Halal Food Hub.
• Their source of financing of Halal projects is the Thailand Islamic Bank and
Islamic cooperatives.
• Thailand become the world’s fifth largest Halal food producer with 5.6% share
and become top country in Asean.
• Thailand has 7.5 million out 62.5 million of Muslim population.
Halal Auditor and Guideline
• PIC is become as the auditors for Halal certification.
• The guideline used are: REGULATION OF THE CENTRAL ISLAMIC
COMMITTEE OF THAILAND CONCERNING HALAL AFFAIR OPERATION
OF B.E 2551.
• AND : REGULATION OF CENTRAL ISLAMIC COMMITTEE OF THAILAND
CONCERNING HALAL AFFAIR OPERATION OF B.E 2552.
Halal sectors
• Consumer products
• Slaughterhouses
• Food service, beverage and Halal kitchen service
• Halal products, processed products, raw materials mixture or
imported Halal meat.
• Export document.
Certification Validity
• Halal Thailand certification only valid for one year.
• Scheduled surveillance audit are conducted monthly to ensure the
integrity of the Halal production.
• Slaughtering houses were audited once a week.
7.1.4 Halal in New Zealand
Introduction
• Federation of Islamic Associations of New Zealand (FIANZ) and
Kiwi Muslim Directory have developed The Tourism New Zealand
Halal Guide to provide overview of halal options available around the
country.
7.1.5 Halal in Australia
Example of Halal certification body in
Australia : Halal Australia
• Halal Australia is recognised and/or affiliated with a number of
organisations, both locally and internationally, meaning that our
certificates and logos carry a reliable guarantee of Halal authenticity.