The Impact of Climate Change on Risk Management in Halal Agriculture Supply Chains: A Focus on Malaysia

Mohammad Nizamuddin Abdul Rahim and Irwan Ibrahim
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Mohammad Nizamuddin Abdul Rahim: Senior Lecturer, Faculty of Entrepreneurship and Business, University Malaysia Kelantan.
Irwan Ibrahim: Associate Fellow, Malaysia Institute of Transport, university Teknologi MARA, Malaysia. Lecturer, Department of Technology and Supply Chain Management Studies, Faculty of Business and Management, UiTM Puncak Alam, Selangor, Malaysia.

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 1, 3553-3574

Abstract: On the bequest of climate change, researchers have pinpointed that there are some challenges facing the agriculture industry throughout the world, nevertheless everyone is not able to appreciate the emphasis which makes halal agriculture supply chains correlate whereupon these supply chains have a strong dependency on natural resources and a commitment to rigorous Islamic principles. Understanding of climate-related risks, implications of climate change on risk management systems, and an evaluation of the effectiveness of existing risk management approaches for halal agriculture supply chains. For this qualitative research, data were collected by semi-structured interviews with 15 experts accompanied by case studies on halal agriculture supply chains within Malaysia. The study identified droughts, floods, pests, and temperature extremes as the top climate-related risks to halal agriculture. These risks have potential to disrupt our production, halal integrity, and supply chain vulnerabilities. Traditional insurance and reactive measures are no longer enough to address these new challenges; This research indicates the importance of advancing strategies such as climate-smart varieties, sustainable water management, biosecurity and supply chain coordination. It also advises the adoption of climate-resilient insurance schemes aimed at reducing financial losses. The findings of this research add to the very little literature addressing climate change and halal agriculture, which is of practical importance to policymakers, growers and industry stakeholders aiming to create more resilient and sustainable halal agriculture supply chains under a changing climate.

Date: 2025
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