HALAL AS ADDED VALUE TO LSP (LOGISTICS SERVICE PROVIDER): A CASE STUDY OF 100 SME (SMALL MEDIUM ENTERPRISE) AT NORTH REGION

Abstract

Malaysia is known as a Islamic country where its Halal Certificate that is release by Jakim is known worldwide. Malaysia Halal Industry not only can generate country’s revenue but improve Malaysian economy. Based on the statistics shown, global market for halal product is estimated as USD580 billion a year. Realizing this, Malaysia can earn huge income from this industry, Malaysia government, under the visionary leadership of our four former Prime Minister Tun Dr Mahathir realizing the important of this industry and its bright future, he has seriously worked towards the implementation of the Islamic values in developing this sector by introducing Halal Hub. Now Malaysia has 22 Halal Hub at all around it. Halal Hub is a concept effort among the Islamic organization bodies such as halal manufacturer, halal trade, buyers and consumer from all over the world. The main objective Malaysia is developed as a Halal Hub is to provide a credible platform connecting global halal supply chain and certificate for halal assurance. As for Muslim they need to use and eat Halal Product as state in Al-Quran. Demand for halal food which prepare according to Islamic laws and regulation is increasing. ‘Halal product not only emphasis on food but it comprise everything from precook meals to pharmaceutical product , toiletries , logistics and safeguarding the integrity of the entire supply chain in addition to financial service” (newstraittimes 2010). There are several more factor that contribute to Halal Industry in Malaysia like high demand from Islamic country like United Arab Emirates, Saudi Arabia, Iran and many more. The halal product also demands by non muslim country like China, Singapore and others. The increasing number and income from all Muslim in the world also contribute to this industry. Now days the concept of Halal Toyyiban has be introduce ,Halal Toyyiban is a concept which halal process or integrity is start from the farm until to the stomach. One of the elements in Halal Toyyiban is logistics activity. In Malaysia only two player who provide Halal Logistics. This research is conduct to investigate the level of awareness of SME on Halal Logistics, to perceive demand and to explore how halal can added value to LSP. In this research two methods has been use by researcher, one is distribute 100 questionnair to SME at North Region and conduct interview with Jakim as a body who give Halal Certificate.