PETALING JAYA: Halal certification should not be made mandatory as it adds an additional layer of burden and cost to businesses, especially to SMEs and small traders.
Small and Medium Enterprises Association of Malaysia (Samenta) national president Datuk William Ng said obtaining a halal certification is not just a matter of not serving non-halal food items but also requires extensive documentation on the part of the applicant.
“The requirement is understandably stringent and extends to business premises, processes, suppliers, packaging and labelling, transportation, and others,“ he said in a statement.
Ng all these add substantial costs and time requirement to businesses. He was responding to the recent decision by the Kelantan government to mandate halal certification among food and beverage (F&B) operators in the state, beginning with Kota Bharu, prior to rolling out the initiative across the state.
He noted that halal certification promotes better food safety and traceability, and allows F&B businesses operated by both Muslims and non-Muslims, to be better promoted to Muslim consumers. This is especially relevant in Kelantan, where about 96% of the population are Muslims.
Ng said F&B operators are also required to provide periodic training to employees, which require time-off and constant training as staff turnovers.
He said the cost of halal certification is not just the fee paid to Jakim. Applying for halal certification could mean up to RM200,000 if modifications to the premises are required, and up to RM50,000 more a year if a halal coordinator is required on top of the training costs of new and existing employees, he added.
Ng said larger chain stores may be able to afford to follow these stringent regulations, especially given the benefits of being halal certified. However, for small traders, both Muslim and non-Muslim, the process and costs of having halal certification add another layer of expenses and burden, in an already high-cost, low margin business environment.
“Mandating halal certification at both application and renewal of business licensing will work against us as an economy - as it adds time and costs to starting a business – a key parameter in almost every ‘ease of doing business’ and competitiveness ranking.
“We urge the Kelantan government to reconsider this decision, and instead work with F&B operators to promote halal certification and with the certification authority to further streamline and reduce the burden and costs of obtaining such certification,“ Ng said.
