Halal Certification Among the SMEs in Kinabalu, Sabah

Haslinda Hasan, Rini Suryati Sulong, Geoffrey Harvey Tanakinjal


Halal is an important concept that enables and simplifies the consuming process of food and beverage products, especially for Muslim consumers. The study believes that the development of Halal is a communally obligatory (fardhu kifayah) for that SMEs and a personally obligatory (fardhu ain) for the Muslim consumer. The Government of Malaysia has already recognized the importance of SMEs, implemented various policies; action plans, and also introduced Halal related programs to assist the SMEs. The objectives of the study are to identify the awareness and perception towards Halal certification among SMEs in Sabah. 42 SMEs were participated in the study; the results indicated that they are aware of the role of Halal certification, and how Halal will make them competitive in the market. Majority of them are keen to become Halal certified company however the SMEs responded that to be Halal certified company the process is expensive and complicated. This paper is hoped to contribute to a better understanding of the current situation of how Halal certification can help SMEs to grow their businesses. Further study on this matter is suggested in order to gain more accurate, interesting and detailed information on the issue.


Ab Talib, M. S., Abdul Hamid, A. B., & Chin, T. A. (2016) Can halal certification influence logistics performance? Journal of Islamic Marketing, 7(4), 461-475.

Ab Talib, M. S., Chin, T. A., & Fischer, J. (2017). Linking halal food certification and business performance. British Food Journal, 119(7), 1606-1618. https://doi.org/10.1108/BFJ-01-2017-0019

Ab. Wahab, N., & Kamarubahrin, A. F. (2019) Halal Industry: Are The Business Fully Awake? Journal of Fatwa Management and Research, 16(1), 22-35.

Abdul, M. (2014) Perceptions on Halal Food Certification in Hat Yai, Thailand, International Journal of Economics and Management, 8(1), 178-194.

Al Quran

Azmi, F. R., Abdullah, A., Bakri, M. H., & Musa, H. (2018). Perception of small medium and enterprises towards halal food supply chain in Malaysia. International Journal of Mechanical Engineering and Technology, 9(11) 821-828.

Bistari, Z. M. (2004). Standardization for halal food. Standards & Quality News, 11(4). Retrieved from https://www.yumpu.com/en/document/view/38668555/standardisation-for-halal-food

Bonne, K., & Verbeke, W. (2006). Muslim consumer’s motivations towards meat consumption in Belgium: Qualitative exploratory insights from means-end chain analysis. Anthropology of Food, 5. https://doi.org/10.4000/aof.90

Bonne, K., Vermeir, I., Bergeaud-Blackler, F., & Verbeke, W. (2007). Determinants of Halal meat consumption in France. British Food Journal, 109(5), 367-386

Char, A. K., Yasoa, M. R. B., Hassan, Z., & Muhammad, M. Z. (2010). Small and medium enterprises (SMEs) competing in the global business environment: a case of Malaysia. International Business Research, 3(1), 66-75. https://doi.org/10.5539/ibr.v3n1p66

Department of Statistics Malaysia. (2016). Small and Medium Enterprises 2015. Retrieved from https://www.dosm.gov.my/

Emir, Z. (2019, January 28). Matrade targets 5% growth in halal exports for 2019. Retrieved from https://www.theedgemarkets.com/article/matrade-targets-5-growth-halal-exports-2019

Fard, M. H. & Amiri, N. S. (2018). The effect of entrepreneurial marketing on halal food SMEs performance. Journal of Islamic Marketing, 9(3), 598-620

Fleck, L. (1997). Malaysia’s diverse cultures offer challengers to importers. Retrieved from http://findarticles.com/p/articles/mi_m3723/is_n5-6_v9/

Halal Industry Development Corporation (2014). Retrieved from http://www.hdcglobal.com/

Hamid, N. A. A. A., Shahwahid, F. M., Othman, N., & Saidpudin, W. (2017). Challenges and ways improving Malaysia Halal Food Industry. Science International, 29(2), 149.

Hasyim, S. (2019). Becoming a global halal hub: Is Indonesia ready?. RSIS Commentary. No 098-15 May 2019

Hornby, C., & Yucel, S. (2009, November 18). Halal food going mainstream in Europe-Nestle. Retrieved from https://www.reuters.com/article/idINIndia-44025720091117

Md. Sawari, S. S., Ghazali, M. A., Abu Bakar Yap, S. M., & Latif, A. A. (2015). E-halal as method and apparatus for halal product detection in Malaysia. Mediterranean Journal of Social Sciences, 6(5), 638-642. https://doi.org/10.5901/mjss.2015.v6n5s2p638

Mohani, A., Hashanah, I., & Mazlina, M. (2013). Halal food certification: Case of Malaysian SME entrepreneurs. China-USA Business Review, 12(2), 163 -172. https://doi.org/10.17265/1537-1514/2013.02.007

Nooh, M. N., Nawai, N., Mohd Dali, N. R. S., & Mohammad, H. (2016). Halal certification: What SME producers should know. Retrieved from https:www.researchgate.net/publication/237318846

Noor Azlin, I., & Hassan, N. (2016). Mengapa Makanan Halal. Kuala Lumpur: Al-Madinah.

Norusis, M. P. (1993). SPSS for Windows. Base System. Chicago: SPSS Inc.

Nunnaly, J. (1978). Psychometric theory. New York: McGraw-Hill.

Omar, W. M. W., Muhammad, M. Z., & Omar, A. C. (2008, December). An analysis of the Muslim consumers' attitude towards halal food products in Kelantan. Paper presented at the ECER Regional Conference.

Ramli, N. (2015). Laws and regulations on Halal Production. Global Islamic Economy Gateway Retrieved from http://irep.iium.edu.my/50287

Shafie, S., & Othman, M. N. (2006). Halal certification: An International Marketing Issues and Challenges. In M. K. Welge (Ed.), Proceedings of the IFSAM/VHB VIIIth World Congress 2006: Enhancing Managerial Responsiveness to Global Challenges. Berlin Germany: The International Federation of Scholarly Associations of Management.
SME Annual Report 2018/2019. Retrieved from http://www.smecorp.gov.my/index.php/en/resources/2015-12-21-11-07-06/sme-annual-report

SME Corporation Malaysia and Sekretariat bagi Majlis Pembangunan PKS Kebangsaan. (2013). Garis panduan bagi definisi baharu PKS. Retrieved from http://www.smecorp.gov.my/images/pdf/GarisPanduan_Definisi_Baharu_PKS_updated.pdf

Soltanian, M., Zailani, S., Iranmanesh, M., & Aziz, A. A. (2016). Motivations of SME entrepreneurs to become halalpreneurs. Journal of Science and Technology Policy Management, 7(2), 173-189. https://doi.org/10.1108/JSTPM-07-2015-0023

Sultan, A. A., & Noor, S. M. (2017). Absorptive capacity, civil conflict and e-commerce adoption among Iraqi firms. Advanced Science Letters, 23(8), 7992–7995.

The International Trade and Industry Ministry. (2004). Retrieved from https://www.miti.gov.my/

Wilson, J. A. J., & Liu, J. (2011). The challenges of Islamic branding: navigating emotions and halal, Journal of Islamic Marketing, 2(1), 28-42. https://doi.org/10.1108/17590831111115222

Zailani, S., Kanapathy, K., Iranmesh, M., & Tieman, M. (2015). Drivers of Halal orientation strategy among Halal food firms. British Food Journal, 117(8), 148–163.

Zainalabidin, M., Juwaidah, S., Golnaz, R., Amin Mahir, A., Ismail, A. L., & Mohd Ghazali, M. (2012). Clients' perception towards JAKIM service quality in Halal certification. Journal of Islamic Marketing, 3(1), 59-71.

Zohar, D., & Marshall, I. (2004). Spiritual Capital: Wealth We Can Live by Using Our Rational, Emotional and Spiritual Intelligence to Transform Ourselves and Corporate Culture. London: Blumsbury

Zulfakar, M. H., Anuar, M. M., & Ab Talib, M. S. (2014). Conceptual framework on halal food supply chain integrity enhancement. Procedia - Social and Behavioral Sciences, 121, 58-67. https://doi.org/10.1016/j.sbspro.2014.01.1108


Haslinda Hasan
haslinda@ums.edu.my (Primary Contact)
Rini Suryati Sulong
Geoffrey Harvey Tanakinjal
Hasan H., SulongR. S., & TanakinjalG. H. (2020). Halal Certification Among the SMEs in Kinabalu, Sabah. Journal of Consumer Sciences, 5(1), 16-28. https://doi.org/10.29244/jcs.5.1.16-28

Article Details

The Role of 7P Marketing Mix toward Consumer Satisfaction and Loyalty of XYZ Beauty Clinic

Ade Agusti Alwinie, Popong Nurhayati, Bagus Sartono
Abstract View : 405
Download :397

Analysis of Marketing Mix and MSME Loan Distribution Strategies at Bank Tabungan Negara

Rifki Salman Alfarizy, Idqan Fahmi, Moch Hadi Santoso
Abstract View : 220
Download :181

MSME Performance: Financial Information System, Work Productivity, and E-commerce

Andi Arifwangsa Adiningrat, Idrawahyuni Idrawahyuni, Rustan Rustan, Yuyu Ruhayu
Abstract View : 768
Download :760

How Does the Implementation of Social Entrepreneurship Business-to-Business Marketing Strategy?

Retnaningsih Retnaningsih, Melani Sukma Yuridis, Febriantina Dewi
Abstract View : 260
Download :195

List of Cited By :

Crossref logo