How it unfolded

On Sept 5, religious affairs minister Na’im Mokhtar announced that the Islamic development department (Jakim) was considering a proposal to make halal certification mandatory for restaurants and food operators that do not serve pork or alcohol. Presently, these outlets seek certification on a voluntary basis.

The following day, Seputeh MP Teresa Kok voiced her opposition to the proposal. She said doing so would impose significant burdens on small businesses and restrict consumer freedom. She also said it may clash with Malaysia’s cultural diversity.

Umno Youth chief Dr Akmal Salleh took umbrage to Kok’s response and warned her against interfering in Islamic matters. Various other groups and individuals also took offence, with some 50 police reports said to have been lodged against the DAP vice-president over the matter. Kok herself dismissed the kerfuffle as a mere “misunderstanding”.

Meanwhile, other politicians and experts also weighed in on the merits and drawbacks of the proposal.

Khairuddin Aman Razali, the deputy chairman of Umno’s ulama council, said the requirement should not be imposed on Muslim-owned eateries. On the other hand, former minister Khairy Jamaluddin said any such rule ought to apply across the board.

FMT takes a closer look at what halal certification entails.

Who regulates halal certification?

The Federal Constitution grants each individual state exclusive authority over the administration of Islamic law within its territorial boundaries. Meanwhile, Jakim serves to provide guidance and coordination on Islamic matters across the country.

That means Jakim, as the central agency, is in a position to streamline all guidelines and processes for the entire country and impose stringent criteria to ensure food products meet Islamic law standards.

In terms of halal processes, Jakim presently works with the respective state religious departments to verify that businesses engaged in the manufacture and sale of halal food and food products comply with established practices.

The State of the Global Islamic Economy 2023/2024, a comprehensive review of the Islamic economy published in February by US-based research and advisory firm DinarStandard, ranked Malaysia No.1 among 81 nations on its Global Islamic Economy Indicator, a position the country has now held for 10 successive years.

The top ranking reflects Malaysia’s strong performance across various sectors of the Islamic economy, including its halal food certification process.

The procedure for halal certification

Halal consultant Abdul Fazmin Fakurruddin told FMT of the existence of several guidelines that outline Jakim’s general requirements, with different regulations applying depending on the size of the entity seeking certification.

Fazmin broke down the certification process into several key steps.

He said operators are first required to conduct a “halal gap analysis” to determine the shortcomings they must address in their processes to achieve compliance.

Training is then conducted for owners and staff on the halal requirements.

“Once they have obtained the necessary knowledge, a system must be developed to ensure all processes and products are controlled by SOPs to ensure full halal compliance. Micro and small businesses will need to develop an internal halal control system.

“The system must then be applied and tested to ensure all staff practice and comply with the halal standards,” he said, adding that this is where operators iron out any kinks in the system to ensure full compliance.

Once all procedures are in place and conditions met, operators can apply for halal certification to Jakim or the state religious authorities, which will be processed in 30 days.

He added that halal certificates last two years, and that the renewal process is similar to the initial application.

Not a costly exercise

Fazmin dismissed a common misperception that halal certification incurs high costs which may run into hundreds of thousands of ringgit. He said there are only two mandatory costs which operators must bear: the certification fee and compliance costs.

He said Jakim’s charges were among the lowest in the world, with the certification fee for micro businesses costing only RM100 per year.

However, compliance costs may differ from one applicant to another.

He said these may include renovations to the applicant’s business premises to ensure halal compliance, particularly in terms of food safety. He said these costs may need to be incurred even if a food outlet is not seeking halal certification since it may be mandated by existing government regulations pertaining to food safety.

“The layout of food premises must comply with food safety rules to reduce the risk of cross-contamination,” he said.

Fazmin said compliance costs also include training staff on halal standards, but maintained that these were not exorbitant. He also said the Human Resource Development Corporation offers courses on halal certification training which employees may attend.

Optional consultancy fees

Fazmin said business owners may choose to hire consultants like himself, although they are not compelled to do so. He said neither Jakim nor any state religious authority maintains a panel of recommended service providers.

“Typically, consultants will charge between RM5,000 to RM25,000, depending on the complexity of the work. For micro-firms, the fee would not go beyond RM10,000.

“A cheaper option would be to hire individuals who offer coaching or guidance, which would usually cost under RM5,000,” said Fazmin, who is both a coach and consultant.

He, however, said that micro and small businesses do not need to hire consultants as the application process is straightforward. Medium- to large-sized firms, however, are faced with a different set of conditions for which consultation may be necessary, he added.

The bigger challenge

Fazmin admitted the halal certification application process is not easy, but said maintaining the accreditation presents an even bigger challenge.

He said halal-certified firms regularly face issues that put them at risk of having their certification suspended or withdrawn altogether, with frequent audits tending to catch many out.

“The main cause is the failure to ensure halal compliance, and this is typically caused by entrusting the task to staff who are not qualified to manage halal matters.

“When there is a lack of competency among staff, it will affect the implementation of the firm’s halal control system. And when procedures aren’t followed, mistakes are bound to happen which may affect halal and food safety standards,” he said.

Fazmin said a common issue was the presence of non-halal products in a halal-certified eatery’s premises, or alcoholic drinks being found in staff lockers. This is a breach of halal regulations, he said.