Differences in halal standards and their effect on development of halal food industry in Malaysia, Indonesia, and Brunei

The halal food market is experiencing significant global growth, with Southeast Asia standing as a key region for this expansion due to its large Muslim population. Malaysia, Indonesia, and Brunei, as majority Muslim nations, are in prime positions to become global halal food hubs. However, differing halal food standards across these countries present challenges for businesses and policymakers. This study investigates these differences, exploring their underlying causes and their effects on the development of the halal food industry in Southeast Asia. The objectives of this study are to identify the differences in halal food standards in Malaysia, Indonesia, and Brunei, identify the reasons for the differences in halal food standards in Malaysia, Indonesia, and Brunei, and to evaluate the effect of differences in halal food standards in Malaysia, Indonesia, and Brunei on the development of the halal food trade industry in the region. The research uses a qualitative approach, primarily employing semi-structured interviews with key informants, including halal authority bodies, policymakers, halal industry stakeholders, academicians, and consumers from all three countries. Thematic analysis was applied to the interview data to identify key patterns and differences in halal standards, while documentary analysis of halal certification documents and relevant regulations further supported the study’s findings. The findings reveal notable differences in halal standards, particularly in the methods of animal slaughter, the consumption of jallalah animals, and permissible alcohol levels in food and beverages. For instance, while all three countries accept animal stunning, Malaysia and Brunei have stricter regulations on the mechanical slaughter of animals, which Indonesia allows under specific conditions. Similarly, differences in Shariah interpretations have led to varying opinions on the permissibility of consuming jallalah animals, with Malaysia and Brunei only accepting them under stringent conditions. These differences stem from diverse legal frameworks, religious fatwas, cultural norms, and demographic influences. Furthermore, the study highlights that businesses face significant challenges in obtaining multiple halal certifications when exporting products between these countries, leading to financial and logistical burdens, particularly for small and medium-sized enterprises. The study concludes that a move towards standardization or mutual recognition of halal certifications could alleviate these challenges, enhance regional trade, and bolster the competitiveness of Southeast Asia in the global halal market. Additionally, the findings suggest that greater collaboration between halal certification bodies and policymakers in Malaysia, Indonesia, and Brunei is critical to harmonizing standards, addressing discrepancies in Shariah interpretations, and fostering a more unified halal food market. A regional approach to halal certification could significantly reduce trade barriers and promote the growth of the halal industry in Southeast Asia.

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