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Governance of Malaysian Halal Food Industry: Conventional Governance vs Shariah Requirements

Table 1: Systematic literature review on internal halal governance

Author Title / Type of Research Journal/Book Findings
Rahim (2017) Bridging Halal Industry and Islamic Finance: Conceptual Review on the Internal Governance (Conceptual paper) USM Although Halal industry and Islamic finance are under the same umbrella, however both industries are governed by different authorities and framework. There are no solid policies for internal governance in the Halal industry relative to the Islamic finance which warrants for integration to bridge between the two industries.
Matulidi, Jaafar and Bakar (2016b) Halal governance in Malaysia(Empirical – preliminary study) Journal of Business Management and Accounting Governance of halal is unsystematic. The confidence in halal reassurance is mainly based on personal conviction, rather than on institutional confidence. The issue of halal governance at firm level focuses on the profit pursuit by the manufacturers rather than the halal status of the products/services.
Mohd Safian, Salleh, Jamaluddin, and Jamil (2020) Halal governance in Malaysian companies (Empirical study) Journal of Fatwa Management and Research All the surveyed company have already established their own internal Halal Committee (IHC), although they do not have specific criteria for the appointment of internal Halal Committee due to lack of clearcut on the requirements specified in the HAS. Majority of the firms’ IHC are accountable only for the operational activities, but not for other non-operational activities (i.e., financial & marketing activities).
Jais (2019) Halal Executive as Part of The Malaysian Halal Certification Requirements: How Did It All Begin? Halal Note Series-Halal Common No. 4 This study deliberates conceptually on the functions of the Halal executive in ensuring that the products and services rendered are conforming to the Shariah requirements, thus deemed halal for Muslim’s consumption.
Matulidi, Jaafar and Bakar (2016a) The Needs of Systematic Governance for Halal Supply Chain Industry: Issues and Challenges Journal of Applied Environmental and Biological Sciences Halal governance with three main components namely formulating, implementing and regulating enable the sustainable development of all governance in Halal Industry. However, this study only focuses on the halal governance at national level per se.
Saad, Abd Rahman and Muhammad (2016) An Overview of the Shariah Governance of the Halal Industry in Malaysia: With Special Reference to the Halal Logistics Journal of Applied Environmental and Biological Sciences The study conceptually discussed on the internal governance mechanisms of halal industry specifically in logistic sector by identifying the important mechanisms within company including the presence of Halalan Toyyiban leader, Halalan-Toyyiban Committee, Internal Halal Committee, Halal executive officer and auditor in overseeing the halal compliance in the said sector.
Noordin, Mohd Noor and Samicho Strategic Approach to Halal Certification System: An Ecosystem Perspective Procedia - Social and Behavioral Sciences 121 This study that addresses the operational efficiency of the halal food certification system using the Malaysian halal certification as a case study on both the supply side (regulators) and the demand side (manufacturers) of the halal certification. The current emphasis of halal governance is on compliance with the shariah law and industry regulation, but less emphasis is on external factors of market forces and competition and internal factors of business strategy and corporate culture.
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