Analysing Halal Integrity and Sustainability Nexus in an Emerging Halal Supply Chain Ecosystem (HSCE)

D. N. Shariff, Dahlan Abdullah, Azita Aboo Bakar, Mohd Rizaimy Shaharudin and Anderson Ngelambong
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D. N. Shariff: Faculty of Maritime Studies, Universiti Malaysia Terengganu, 21030 Kuala Terengganu, Terengganu, Malaysia
Dahlan Abdullah: Faculty of Hotel and Tourism Management, Universiti Teknologi MARA Cawangan Pulau Pinang, 13500 Permatang Pauh, Penang, Malaysia
Azita Aboo Bakar: Business Technology Section, Universiti Kuala Lumpur Malaysian Spanish Institute, 09090 Kulim, Kedah, Malaysia
Mohd Rizaimy Shaharudin: Faculty of Business and Management, Universiti Teknologi MARA Cawangan Kedah, 08400 Merbok, Kedah, Malaysia
Anderson Ngelambong: Faculty of Hotel and Tourism Management, Universiti Teknologi MARA Cawangan Pulau Pinang, 13500 Permatang Pauh, Penang, Malaysia

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 7, 1489-1504

Abstract: Global demand for halal food has grown substantially. In 2020, about a quarter of the world’s food trade comes from halal food sector, amounting to approximately USD 2 trillion. Over the past few decades, research on halal food has primarily focused on the demand side of the market economy, especially customer needs and satisfaction. Recently, researchers have begun to shift their attention to the supply side of the halal food industry, particularly exploring issues on halal integrity. Studies have revealed that the transportation and transiting sector poses a higher risk compared to manufacturing in establishing halal integrity assurance on halal products. This article analyses the factors that lead to halal integrity issues in the halal supply chain ecosystem based on the latest statistics, press releases, industrial reports, and recent research articles. The discussion concludes with some recommendations for improvement from the perspective of freight forwarders are provided. Along with other stakeholders, freight forwarding services play a crucial role in the supply chain ecosystem, acting as customers’ brokers, assisting in forwarding and clearing cargo. In the post-COVID-19 context, the need to re-evaluate and enhance the efficiency, competitiveness, and sustainability of the ecosystem is crucial due to the current global GDP shrinkage and trade wars across countries. Halal supply chain services are eco-friendly, preferred by customers, and producing higher gross social welfare, but these benefits come along with higher production costs compared to conventional supply chain services. Hence, policy incentives, along with other sustainability strategies, are fundamental for the development and advancement of the halal supply chain ecosystem.

Date: 2024
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