WHAT happens to a small business after it obtains halal certification? For many Malaysian entrepreneurs, getting certified takes considerable effort. They must document their processes, verify ingredients and suppliers, and ensure that their premises and operations meet the required standards. Some must invest in equipment or change how they work.
Receiving the certificate is an achievement. But once it is displayed on a product or at a business premise, another question begins: where will it take the business?
Malaysia has spent decades building a halal system recognised beyond its borders. This gives our small and medium enterprises (SMEs) a valuable advantage. A halal certificate can help establish trust with customers and buyers. Yet trust alone does not tell an entrepreneur which market to enter, whom to contact or how much to produce.
My research and observations of halal ecosystems outside Malaysia have made this gap increasingly clear. In Japan, where Muslims are a minority, some businesses see halal certification as a way to reach Muslim consumers overseas. Sanda Meat Center’s halal certified Kobe beef offers an example of a Japanese product positioned for those markets.
The lesson is not that every Malaysian SME should sell a premium product overseas. It is that certification can serve a clear business purpose. A company identifies the customers it hopes to reach, understands what they want and prepares its product for that market. Halal certification then becomes part of a wider plan.
The Maldives offers another perspective. As a Muslim country whose economy is closely tied to international tourism, it has hotels, restaurants and retailers serving visitors from different parts of the world. For a Malaysian food producer interested in that market, the practical questions begin well before an export order arrives.
Which products might appeal to buyers there? Who purchases supplies for hotels and restaurants? Would a buyer want a small shipment to test demand or regular deliveries throughout the year? What packaging, product information and shelf life would be suitable?
What requirements must be met beyond halal certification? These questions matter more to an SME than repeatedly hearing that the global halal economy is worth trillions. A large market does not automatically become an accessible market. For a small producer in Perlis, Kedah or elsewhere, the immediate concern is often much simpler: who will buy the product, and can the business meet that buyer’s needs?
Consider a small company producing sauces. Its halal certificate may reassure a potential buyer, but the buyer will also want to know whether the company can supply the same quality in every batch. The sauce may need packaging that protects it during transport and provides information suitable for the destination market. The business must understand its costs before agreeing to a price or a larger order.
Another company may produce halal cosmetics. Its challenge could be different. It may need to learn what customers in a particular market prefer, which product claims it can make and which other rules apply there. A certificate is valuable, but it cannot answer every commercial and regulatory question on the company’s behalf.
Malaysia already helps businesses work towards halal certification. The next step is to connect that achievement more closely with business development. Support should reflect what each SME is trying to sell and where it hopes to sell it.
For some businesses, the first need is market information. They may have a good product but no clear idea which country, customer group or sales channel is suitable. Others already know their target market but need to improve packaging, increase production or prepare for discussions with distributors. An SME that is ready for a local supermarket may still be some distance from supplying an overseas hotel chain.
A useful starting point would be to assess what a business can currently do. How much can it produce each month? Can it handle a sudden increase in orders? Does it know the cost of producing and shipping each unit? What happens if a buyer requests changes to the packaging? These are ordinary business questions, but the answers determine whether an opportunity can be taken.
Malaysia has platforms such as the Malaysia International Halal Showcase (MIHAS), where businesses can meet potential buyers. Such meetings can be valuable. Yet an introduction alone does not guarantee a sale. A buyer may ask for samples, prices, product specifications and a delivery schedule. The SME must be ready to respond clearly and follow through.
This is why support after certification should be practical. It could help an entrepreneur identify a suitable market, review product packaging, work out production capacity and prepare the information a buyer is likely to request. Where a small firm cannot meet an order alone, it may need a reliable production or distribution partner. The right help will depend on the business rather than a single programme offered to every certified SME.
None of this calls for weaker halal standards. The integrity of Malaysia’s certification system is precisely what gives the certificate its value. If buyers and consumers trust it, Malaysian businesses have a strong foundation. The challenge is to build the commercial ability needed to make use of that trust.
We should also look more closely at how success is measured. The number of businesses that obtain halal certification matters. It tells us how many have met the required standards. But it does not tell us what happened to those businesses afterwards.
How many gained new customers? How many secured repeat orders or entered export markets? How many increased production, hired workers or developed brands recognized outside their home states? Tracking such outcomes would show whether certification is helping SMEs grow and where they still need support.
For an entrepreneur, halal certification should open a new stage in business. The certificate may help a product earn a buyer’s attention. Securing the order depends on whether the business understands the market and can deliver what it promises.
Malaysia has built the halal credibility. We should now help more SMEs turn it into customers, lasting business relationships and growth. – MalaysiaGazette
By Dr Nadiah Mahmad Nasir
Senior Lecturer in Strategic Management and Entrepreneurship,
Faculty of Business & Communication, Universiti Malaysia Perlis (UniMAP).
