Malaysia

Only 5% of 200,000 halal companies hold Jakim certifications: HDC

Corporation denies preferential treatment toward larger multinational halal companies

Updated 1 year ago · Published on 23 Jun 2022 8:41PM

Only 5% of 200,000 halal companies hold Jakim certifications: HDC
Halal Development Corporation Berhad (HDC) chief executive Hairol Ariffien Sahari delivered a speech during a campaign launch at Lotus hypermarket here today. – SYEDA IMRAN/The Vibes pic, June 23, 2022.

by Aiman Sadiq Abdullah

AMPANG – Only 5% or around 10,000 out of the 200,000 companies involved in various streams of the halal industry actually possess certification from the Islamic Development Department (Jakim).

Halal Development Corporation Berhad (HDC) chief executive Hairol Ariffien Sahari noted that from this figure, only around 3,000 companies have the capabilities to penetrate the mainstream local and international hypermarkets to market their products.

In a report by The Vibes’ Malay language sister portal Getaran, Hairol said that companies with halal certifications were entities run by both Muslims and non-Muslims.

He also denied claims by certain quarters of special treatment being afforded to many multinational companies, or those owned by non-Muslims, seeing as they are usually able to obtain the halal certification easily and market their products through existing networks.

HDC chief stressed there were no double standards in regulations or standards imposed by Jakim to obtain their halal certification, regardless of whether the business owners are Muslim or not.

“There is no such thing because the criteria or standard operating procedures (SOP) set by Jakim are, all the same, to ensure the cleanliness, from the aspect of nutrition to consumers while ensuring the products being sold are genuinely halal.

“Regardless of the business or company, whether they are Muslims or not, the conditions are the same, they need to obey the SOPs that have been set to obtain their halal certification,” he said during the launch of the “Jadikan Halal Pilihan Utama Anda” (make halal your first choice) campaign at the Lotus hypermarket here earlier today.

Elaborating further, Hairol said the country maintains and practices standards of halal certification imposed by Jakim that far exceed international standards, with its qualities certified and accredited by the international community.

To capitalise on this, Hairol said HDC will act as the facilitator to encourage industry players, especially small and medium enterprises (SMEs), and micro-enterprises to join the halal industry to elevate the productivity of local exports.

He said HDC will also work to attract more investors into local halal industry to raise the exposure of local products onto the international market.

“HDC will also increase the number of high-quality job opportunities for Malaysians, especially those in the halal industry. 

“We will assist companies or local businesses to become successful exporters or to market their products in the local market.

“If we can cooperate with Lotus to place products from the small and medium industries and utilise their large hypermarket platforms to market local products to the international market, that will be our objective,” he said.

Meanwhile, Lotus Malaysia president Kenneth Chua Jin Kiat said his side has agreed to work together with HDC to kickstart the campaign to increase the marketability of local halal products.

He said the campaign will also act as an initiative to encourage more local consumers to choose local halal products of higher quality and which are reasonably priced.

Chua noted his confidence in the abilities of local SMEs, pointing out how 90% of more than the 30,000 products sold by Lotus are acquired and manufactured locally, with halal certifications.

“Halal does not only apply to food for Muslims but is also synonymous with the term quality. In today’s dynamic retail ecosystem that relies heavily on consumers’ choice, quality and ability become the main factor influencing their purchases.

“Lotus also understands it has a responsibility to ensure local SMEs, who are the backbone to local economic growth, can develop and remain resilient,” he said.

Besides the role of promoting products by local SMEs, Chua said his company is also working with other industry players on aspects of product research and development, pricing and marketing strategies, and packaging improvements.

Also present at the event today was Deputy Domestic Trade and Consumer Affairs Minister Datuk Rosol Wahid, who noted how more than 71% of businesses with halal certification in the country are those run by non-Muslims.

He said this was a testament to the positive perception towards halal products, which he said are sought after by both Muslims and non-Muslims.

“Halal is not only from the aspect of food but also concerns clothes and sources we use to manufacture and generate income,” he added. – The Vibes, June 23, 2022.

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