ISSN: 2222-6990
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The Southeast Asia region’s halal food trade has its problems given the differences in the halal standards between Malaysia, Indonesia and Brunei. Therefore, this paper aims to identify the effects of these Malaysia, Indonesia and Brunei halal standards on the growth of the regional halal food trade industry. In this study, a qualitative research design and a case study were employed to gather the data through documentary review and interviews with the authorities of halal bodies, government and private sector, academics, and consumers. The research outcome shows that the variation in the halal standards hampers trade, which in turn increases costs of doing business, losses, and complications in procedures. Specialized labor and additional charges are the main challenges that affect business operations and make the process of market entry expensive. Therefore, this study emphasizes the need for increased regional integration and collaboration with a view to reducing these impacts. This means that standardizing the halal standards in these countries may help ease compliance, lower costs, and improve trade relations, thus helping in the growth of the industry and increasing the competitiveness of the region in the global halal market. The article concludes by suggesting that through recognition of each other’s halal standards, cooperation in training, and utilization of facilities, the development of the halal food industry in Southeast Asia should be enhanced.
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