Obstacles in Securing Halal Certification in Malaysia: A Study on Home-Based Business (HBB)

Main Article Content

Sazelin Arif
Nurlisa Loke Abdullah
Nurdinah Abu Bakar
Zawiah Mat
Nooraini Sulaiman

Abstract

This paper aims to identify the obstacles faced by Home-Based Business (HBB) Food and Beverage (F&B) entrepreneurs in securing halal certification in Malaysia. An interview was conducted with 10 HBB entrepreneurs who run F&B businesses in the region of Melaka Tengah. This study adopts a non-probability sampling approach via snowball sampling. Snowball sampling was used so that research participants could recommend more suitable participants to be interviewed based on a few criteria set in the preliminary study.  The majority of the respondents shared the same opinion that there are five (5) obstacles that prevent them from securing the Malaysian Halal Certification. The obstacles include lack of capital, failure to understand the halal requirement, stringent procedures, lack of support and guidance, as well as misconception about obtaining halal certification. These obstacles were derived from the transcribed data, which was coded and grouped according to themes. The themes were derived from the highlights of previous studies that were relevant to the research question.  The identification of these obstacles has its purpose in making it easier for HBB entrepreneurs to obtain the Malaysian Halal Certification for the F&B category. The study also found that the Halal Certification Body can provide the best mechanism to make it more accessible to apply for halal certification as well as to provide manageable procedures to obtain halal certification, particularly for HBB entrepreneurs in order to enable them to compete aggressively in the global market.

Downloads

Download data is not yet available.

Article Details

How to Cite
Arif, S. ., Loke Abdullah, N. ., Abu Bakar, N., Mat, Z. ., & Sulaiman, N. . (2021). Obstacles in Securing Halal Certification in Malaysia: A Study on Home-Based Business (HBB). Asia Social Issues, 14(2), Article 246501 (19 pages). Retrieved from https://so06.tci-thaijo.org/index.php/asi/article/view/246501
Section
Research Article

References

Ab Rahman, I., Saleh, R., Ab Rahman, S., & Mat Hashim, D. (2011). Factors contributing to non-compliance of the Halal standard among restaurant operators in Malaysia (pp. 88-92). In Proceedings of the 2nd Interational Conference on Business, Economics and Tourism Management.

Ab Talib, M. S., Abdul Hamid, A. B., & Ai Chin, T. (2015). Motivations and limitations in implementing Halal food certification: a Pareto analysis. British Food Journal, 117(11), 2664-2705.

Ab Talib, M. S., Md. Sawari, S. S., Abdul Hamid, A. B., & Ai Chin, T. (2016). Emerging Halal food market : An Institutional theory of Halal certificate implementation. Management Research Review British Food Journal, 39(9), 987-997.

Abu Bakar, A., Jafri Saad, R., & Basarud-din, S. K. (2017). Assessing challenges of implementation halal food certificate among Bumiputera Small and Medium Enterprises. Journal of Humanities, Language, Culture and Business, 1(2), 34-39.

Ahmad, H., Fazullah, A., Borham, A. J., Hashim, H., & Abd. Razak, M. (2011). Halal studies in universities : A way forward to manage halal business. International Journal of Arts and Sciences, 4(9), 247-254.

Ahmad, N. A., Tunku Abaidah, T. N., & Abu Yahya, M. H. (2013). A study on Halal food awareness among Muslim customers in Klang Valley (pp. 1073-1087). In Proceedings of the 4th International Conference on Business and Economic Research.

Ahmad, S. Z., Jabeen, F., & Khan, M. (2014). Entrepreneurs choice in business venture: Motivations for choosing home-stay accommodation businesses in Peninsular Malaysia International Journal of Hospitality Management, 36, 31-40.

Ambali, A. R. & Bakar, A. N. (2014). People’s awareness on Halal foods and products: Potential issues for policy-makers. Procedia-Social and Behavioral Sciences, 121, 3-25.

Anam, J., Mohamed Mokhtar, S. S., & Lebai Othman, I. (2018). Conceptualizing the relation between halal logo, perceived product quality and the role of consumer knowledge. Journal of Islamic Marketing, 9(4), 727-746.

Anwar, M. N., & Daniel, E. M. (2016). Entrepreneurial marketing in online businesses: The case of ethnic minority entrepreneurs in the UK. Qualitative Market Research, 19(3), 310-338.

Anwar, M. N., & Daniel, E. M. (2017). The role of entrepreneur-venture fit in online home-based entrepreneurship: A systematic literature review. Journal of Enterprising Culture 24(04), 1-51.

Arif, S., & Sidek, S. (2015). Application of halalan tayyiban in the standard reference for determining Malaysian halal food. Asian Social Science, 11(17), 116-129.

Arif, S., Abu Bakar, N., & Sidek, S. (2019). Impediment factors to successful usage of online Halal certification. Humanities & Social Sciences Reviews, 7(2), 135-145.

Astro Awani. (2016). Jakim perlu permudah kelulusan sijil Halal untuk pengusaha Islam-Ismail Sabri. Retrieved from https://www.astroawani.com/berita-malaysia/jakim-perlu-permudah-kelulusan-sijil-halal-untuk-pengusaha-islam-ismail-sabri-115645

Bernama. (2018). Malay entrepreneurs lack awareness on importance of Halal certification. Retrieved from http://www.bernama.com/bernama/state_news/news.php?id=1243311

&cat=nt

Bogdan, R. C., & Biklen, S. K. (1982). Qualitative research for education: an introduction to theory and methods. Boston: Allyn and Bacon.

Buang, A. H., & Mahmod, Z. (2012). Isu dan cabaran badan pensijilan Halal di Malaysia. Jurnal Syaria, 20(3), 272-288.

Chen, K. J., Chu, A. C., & Lai, C. C. (2018). Home production and small open economy business cycles. Journal of Economic Dynamics and Control, 95, 110-135.

Collector, D., & Module, F. G. (2011). Qualitative research methods a data collectors field guide (pp. 1-12). Qualitative Research Methods Overview.

Connaway, L. S., & Powell, R. R. (2010). Basic research methods for librarians. (5th eds.). Santa Barbara, CA: Libraries Unlimited.

Cooper, D. R., & Schindler, P. S. (2000). Business research method. (7th eds.). New York: McGraw Hill.

Department of Standards Malaysia. (2009). MS 1500: 2009 Halal food-production, preparing, handling & storage-general guidelines. (2nd eds.). Retrieved from http://www.jsm.gov.my/ms-1500-2009-halal-food#.YCeZMY8zbDc

Duncan, B. (1991). A profile of female home-based sewing entrepreneurs who participated in the Mississippi cooperative extension service sewing as a business program. (Doctoral dissertation). Mississippi State University.

Europen Union. (2019). Eur-Lex: access to European Union Law. Micro-, small- and medium-sized enterprises: definition and scope. Retrieved from http://eur-lex.europa.eu/legalcontent/EN/TXT/?uri=URISERV%3An26026

Gentles, S. J., Charles, C., Ploeg, J., & McKibbon, K. A. (2015). Sampling in qualitative research: Insights from an overview of the methods literature. The Qualitative Report, 20, 1772-1789.

Gudeta, K. H., & Engen, M. L. (2017). Work-life boundary management styles of women entrepreneurs in Ethiopia - “choice ” or imposition ? Journal of Small Business and Enterprise development, 25(3), 368-886.

Haque, A., Sarwar, A., Yasmin, F., Tarofder, A. K., & Hossain, M. A. (2015). Non-muslim consumers’ perception toward purchasing halal food products in malaysia. Journal of Islamic Marketing, 6(1), 133-147.

Haron, H., Said, S., Jayamaran, K., & Ismail, I. (2013). Factors Influencing small medium enterprises (SMES) in obtaining loan. International Journal of Business and Social Science, 4(15), 182–195.

Hasan, H., Sulong, R. S., & Tanakinjal, G. H. (2020). Halal certification among SMEs in Kota Kinabalu , Sabah. Journal of Consumer Business, 05(01), 16-28.

Hassan, S. H., & Hamdan, H. (2013). Experience of non-muslim consumers on halal as third party certification mark in Malaysia. Asian Social Science, 9(15), 263-271.

Henderson, J. C. (2016). Halal food, certification and halal tourism: Insights from Malaysia and Singapore. Tourism Management Perspectives, 19, 160-164.

JAKIM. (2014). Manual procedure for Malaysia Halal certification. (3rd eds.). Retrieved from http://www.halal.gov.my/v4/images/pdf/MPPHM2014BI.pdf

Kalyanakumar, J. (2020). Issues and challenges of home based women entrepreneurs in Salem, Tamilnadu. International Journal of Scientific & Technology Research, 9(2), 2-5.

Katuk, N., Ku-mahamud, K. R., Kayat, K., Abdul Hamid, M. N., Zakaria, N. H., & Purbasari, A. (2020). Halal certification for tourism marketing : the attributes and attitudes of food operators in Indonesia. Journal of Islamic Marketing, 9(4), 727-746.

Kazimoto, P. (2014). Assessment of challenges facing small and medium enterprises towards international marketing standards : A case study of Arusha Region Tanzania. International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(2), 303-311.

Khoirul Anwar, M., Fahrullah, A., & Ridlwan, A. A. (2018). The problems of halal certification for food industry in Indonesia. International Journal of Civil Engineering and Technology, 9(8), 1625-1632.

KPWKM, Ministry of Women, Family and Community Development. (2007). Buku Panduan Pejabat@Rumah. Kuala Lumpur: Kementerian Pembangunan Wanita, Keluarga dan Masyarakat.

MAMPU, Malaysian Administrative Modernisation and Management Planning Unit. (2012). Inisiatif dan Impak Pelaksanaan Fokus Group Pengurusan Pensijilan Halal. Putrajaya: Jabatan Perdana Menteri.

Mason, C., Carter, S., & Tagg, S. (2011). Invisible businesses : The characteristics of home-based businesses in the United Kingdom. Regional Studies, 45(5), 625-639.

Maxwell, J. A. (2012). The importance of qualitative research for causal explanation in education, Qualitative Inquiry, 18(8) 655-661.

Merdeka Online. (2018). PKS Menjana Ekonomi Negara. Retrieved from http://merdeka-online.com/home/pks-menjana-ekonomi-negara

Md. Sawari, S. S., Ghazali, M. A., Abu Bakar Yap, S. M., & Abdul Latif, A. (2015). E-Halal as method and apparatus for halal product detection in Malaysia. Mediterranean Journal of Social Sciences, 6(5), 638-642.

Miles, M.B. & Huberman, A.M. (1994). Qualitative data analysis: An Expanded sourcebook. (2nd eds.). London: Sage.

Muhammad, M. A., Abu Bakar, E., & Ahmad, S. (2019). The challenges faced by Halal certification authorities in managing the halal certification process in Malaysia. Food Research, 4(1), 170-178.

Muhammad, M. Z., Char, A. K., Yasoa’, M. R., & Hassan, Z. (2010). Small and medium enterprises (SMEs) competing in the global business environment : A case of Malaysia. International Business Research, 3(1), 66-75.

Nasir, A. (2019). Penjual Nasi Lemak Raih RM400,000 Sebulan Dengan Modal RM3,000. Retrieved from https://www.freemalaysiatoday.com/category/bahasa/2019/05/01/

penjual-nasi-lemak-raih-rm400000-sebulan-dengan-modal-rm3000

Noordin, N., Md Noor, N. L., & Samicho, Z. (2014). Strategic approach to halal certification system: An ecosystem perspective. Procedia-Social and Behavioral Sciences, 121, 79-95.

Nwanesi, P. K., Okpara, I. U., & Anisiobi, A. L. (2014). Women entrepreneurship in Malaysia: An investigation of the factors that motivated micro and small business owners in Kuching-Sarawak to start-up their own businesses. IOSR Journal of Humanities and Social Science, 19(4), 67-73.

Othman, B., Shaarani, S. M., & Bahron, A. (2016). The potential of ASEAN in halal certification implementation: A review. Pertanika Journal of Social Sciences and Humanities, 24(1), 1-24.

Patton, M. (1990). Qualitative evaluation and research methods. California: Sage Publications.

Ramli, A., Mustafa, M., Ismail, M. A., & Ahmad Shakir, K. (2013). Perniagaan berpusat di rumah : kajian profil peribadi, keluarga dan perniagaan di kalangan usahawan di Daerah Kubang Pasu, Kedah (pp. 531-541). In Proceedings of the Conference on Business Management Research.

Man, S., & Harun, M. S. (2016). Pensijilan halal dalam kalangan usahawan perusahaan kecil dan sederhana (PKS) di Semenanjung Malaysia: Isu dan permasalahan. In Abdullah, L. H., Ramli, R., & Mohd Razif, N. F. (Eds.), Maqasid Al-Shari`ah: Aplikasi Dalam Aspek Muamalat dan Kehartaan (pp. 199-214). Kuala Lumpur: JFU APIUM.

Salganik, M .J., & Douglas D. H. (2004). Sampling and estimation in hidden populations using respondent-driven sampling. Journal Sociological Methodology, 34(1), 193-239.

Scarborough, N. M., & Zimmerer, T. W. (2002). Effective Small Business Management. (7th eds.). New Jersey: Prentice Hall.

Sinar Harian. (2018). Susah ke nak dapat sijil halal?

Sinar Harian. (2014). Jakim perlu mudahkan permohonan pengusaha PKS.

Sinar Harian. (2014). Sukarkah mendapat sijil halal.

Soraji, A. J., Awang, M. D., & Mohd Yusoff, A. N. (2017). Malaysia Halal trust: Between reality and challenges. International E-Journal of Advances in Social Sciences, 3(7), 197-204.

Stanger, A. M. J. (1998). Home-based business marginality: A review of home-based business performance and its determinants. In Proceedings of the International Council for Small Business Conference. Singapore.

Sulaiman, R., Mohamed Shariff, S. S., & Ahmad, M. S. (2009). The e-business potential for home-based businesses in Malaysia : A qualitative study. International Journal of Cyber Society and Education, 2(1), 21-36.

Trochim, W. M. K. (2006). The qualitative debate. Research methods knowledge base. Retrieved from http://www.socialresearchmethods.net/kb/qualmeth.php

Utusan Borneo. (2016). Wanita Usahakan Product HBB Berupaya Tingkat Taraf Hidup.

Utusan Malaysia. (2012). APD 2011 Untuk Maslahah Umat.

Walker, E. A., Wang, C., & Redmond, J. (2008). Women and work-life balance: Is home-based business ownership the solution? Journal of Equal Opportunities International, 27(3), 258-275.

Wendy, M. Y. T., & Siong, C. C. (2014). Towards strengthening the development of women entrepreneurship in Malaysia. Gender in Management: An International Journal, 29(7), 432-453.

Yusuf, A. H., Abdul Shukor, S., & Ahmad Bustamam U. S. (2016). Halal certification vs business growth of food in Malaysia. Journal of Economics, Business and Management, 4(3), 247-251.

Zainol, N. R., Al Mamun, A., Hassan, H., & Muniady, R. (2017). Examining the effectiveness of micro- enterprise development programs in Malaysia. Journal of International Studies, 10(2), 292-308.