Chapter 1: INTRODUCTION

1.0 Introduction

This study attempts to investigate halal food awareness and perception among Muslims
customers when they consume food or choosing food outlet. The research also aims to
confirm whether the identified variables are significant to the awareness and perception of
Muslim consumers on halal food. This chapter shall begin with the elaboration of the
background of the study, highlight the problem statement, followed by the development
of research questions and indicates the objectives of the study. Then, the significance of
the study is explained by the researcher. In addition, the researcher also explains the
meaning of variables identified in this research.

1.2 Background of the study

The issue of halal always become hot topic among Muslims. When it comes to halal,
most Muslims are aware of the consequences of neglecting it. Some of them could not
tolerant about the halal issue, especially when it comes about food. This is due to the
culture of Muslim society in our country and also the teaching of Islam itself, which
always emphasizing on halal matters in our daily life. The halal term also can be
interpreted wrongly if the person do not have sufficient knowledge and understanding
about it. Thus, this study will investigate the understanding and awareness of halal among
Muslims, specifically in Hulu Langat, Selangor.

“Halal” is an Arabic word that means “permissible” and while it is commonly associated
with food, halal has a far wider embrace, with the potential, in fact, to become a major
global business brand. In Holy Quran, Allah said, “O ye who believe! Eat of the good
things that We have provided for you, and be grateful to God, if it is Him you worship.”
(Al-Quran. Al-Baqarah: 172). Allah also said in another verse, “O ye people! Eat of what
is on earth, lawful and good, and do not follow the footsteps of the evil one, for he is to
you an avowed enemy.” (Al-Quran. Al-Baqarah: 168). Reported from Bukhari, Muslim,

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Abu Daud, Ibnu Majah and Darimi, “What is Halal is clear. And what is Haram is also
clear. And in between those two is a dubious area in which many people do not know
about. So whoever distanced himself from it, he has acquitted himself (from blame). And
those who fall into it, he has fallen into a state of Haram”.

Halal basically is something permissible based on Shari’ah in aspect of religious, faith

and spiritual while thoyyib is good or wholesome in terms of quality, safety, hygienic,
clean, nutritious, quality, and authenticity in aspect of scientific. According to Muslim
Scholar, thoyyiban also influence management style, human resource policies, business
ethics, raw materials selection and manufacturing methods. Halal in Islam is Halaalan
Thoyyiban which gives the literary, technical and practical meaning of halal, hygienic,
clean, pure, nutritious, high quality, and healthy.

Muslims have always been associated with Islam and Islam is directly link to Halalan and
Toyyiban (good quality). For Muslims, it is their religious obligation to consume halal
food. The question of understanding among Muslims about halal food is posed because
food market in Malaysia is managed by all ethnic groups. In Malaysia, the application of
halal certification and logo is based upon request by food producers. For those with halal
certification and logo have the advantages of capturing a bigger market because 60.4% of
Malaysian are Muslims.

As a Muslim, it is an obligation to pursue what is stated in the Holy Quran and Traditions
(Sunnah) of Prophet Muhammad. One of it is a set of dietary laws. In this law, Muslim
must consume halal foods and avoid haram foods. What is actually halal and haram?
Halal is an Arabic word which means ‘lawful, legal, licit, legitimate, permissible,
allowable, permitted, allowed, admissible, unprohibited’. The food consumed by Muslims
are lawful or permitted unless, the food being categorized in Holy Quran and Hadith as
haram or forbidden. Halal food and Muslim is inseparable because Muslim custom and
religion is governed by the guidelines and rule based on Islam. A set of dietary in food
consumption is one of the rules in ensuring good well-being. Islam places these rules
clearly in Holy Quran and Traditions (Sunnah) of Prophet Muhammad.

As an Islamic obligation to consume halal food, the availability of halal food in the
market is important for Muslim customers. Muslim customers will rely on halal logo in

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making food choices. Due to the lucrative of the halal market there are occasion where
manufacturers and retailers misuse of halal certification and logo. Some customers are
therefore becoming more cautious in making food choices. Halal food awareness is
important for customers because food products in Malaysia are ranging from various local
and imported food that produced and managed by all ethnic groups. Muslims make their
food choices by identifying halal logo and certification at the premises or food packaging.
In Malaysia, the application of halal certification and logo is based upon request by food
producers. For those with halal certification and logo have the advantages of capturing a
bigger market because 60.4% of Malaysian are Muslims.

Food is a basic necessity in human life. In that case, Islam is very concerned about the
issue of halal food. A food will be categorized as halal when the production of raw
materials, material components, additives and processing based on the guidelines set out
by legislation Therefore, it includes the preparation, processing, storage, packaging,
handling and transportation that meet Sharia. Generally, Islam requires consuming all the
foods that are fine and forbid eating the foods that are disgusting and dirty (khabaith).
Standards of good nutrition for Muslims expressed as halalan toyyiban. The food is
fulfilling the concept of halalan toyyiban if it is free from Islamic banned substances, free
from the substances that can cause harm, not filthy and also clean and safe. Cases like
halal logo abuse, material fraud or content used in a product and also the management of
premises that do not comply with halalan toyyiban standards commonly reported. The
existence of such cases may raise questions about the validity of halal.

In Asia in particular, business people from countries ranging from Indonesia, Malaysia
and Pakistan to the tiny nation of Brunei are talking up their nation’s aspirations to
become a “halal hub”. It is not hard to see why. About a quarter of the world’s population
is Muslim. Muslims are required by their faith to eat halal food, bringing the value of the
global halal food market close to US$700 billion. This figure increases by the week as
halal food producers use social media to extend their marketing to non-Muslims.

The halal industry is already worth an estimated US$3 trillion, and includes chemicals,
health care, cosmetics, pharmaceuticals, leather products and Islamic banking. Due to
this, the halal product consumption is increasing and so does the demand for halal

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products. Halal and its related industries have become an important market and lucrative
business, not to mention its great potential of investment.

The key principle for Muslim diet is the food has to be halal and toyyiban. Meat products
(except pork which is not permissible for Muslim) for example, have to be sourced from
healthy animals that were slaughtered with a single cut. In general, all fruit and vegetable
products are considered halal, as long as they have not be been contaminated through
contact with forbidden items, notably pork and alcohol. During the processing and
transportation of food, the cross-mixing of halal foods and non-permitted products is
strictly forbidden. In addition, clear sanitary regulations specific to halal food must be
observed all the way from the source to the users. While halal and non-halal food
products can be displayed side-by-side, halal food cannot be displayed with proscribed
foods in supermarkets.

As a consequence, many Malaysian supermarkets have a ‘non-halal’ food section, a

designated area where non-permitted products (such as pork, wine and cigarettes) can be
displayed. Customers are also obliged to pay for these prescribed products at a separate
checkout counter.

Furthermore, recognition of Malaysia as Muslim country helps to claim as a global halal

hub. Muslims as the major customers of halal food, being also the majority population of
Malaysia. Thus, they have to show a higher understanding of halal compared to other
ethnic groups. Without any doubt, even though Muslims are majority, there is still much
food not serves according to the Muslim halal ruling and the issues of abuse of halal logo
and certification remain plentiful. In food sector, Muslims who are the major customers
who trusted the signage will patron the outlet. Basically, the awareness of halal food
among Muslim customers were influenced by their understanding of halal concepts.

In order to further strengthen Malaysia’s position as the leading global halal hub,
the Halal Industry Development Corporation (HDC) was established in 2006. It was
created with a remit to improve halal standards and to enhance commercial and industry
development and branding. The Malaysian government has also implemented Halal
Industry Master Plan (2008-2020), a blueprint for establishing the country as the global
leader in innovation, production and trade within several halal-related sectors, including

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speciality processed foods, cosmetics and personal care, pharmaceutical ingredients,
livestock and the services sector (particularly logistics, tourism and healthcare).

Both local and foreign companies can apply for Islamic Development Department of
Malaysia (JAKIM) halal certification, with fees payable to cover document handling and
site inspection. In the case of food and beverages companies utilising processing factories
located outside Malaysia, all applicants are also obliged to cover the auditors’ expenses,
including any required air tickets, accommodation and travel visas.

As well as its own halal certification, currently JAKIM also recognises 56

foreign halal certification bodies and authorities across 33 countries. This includes four
bodies on the Chinese mainland (Beijing, Henan, Shandong and Ningxia) and one in
Taiwan. The recognised list of foreign halal certification bodies is revised by JAKIM on
an annual basis.

Many of the local and foreign food manufacturing companies operating in Malaysia
produce halal products for both the domestic and overseas markets. According to JAKIM,
among all the major halal certified products in 2015, 77% were food products and 23%
were non-food products.

In 2015, the value of Malaysia’s halal exports was MYR39.4 billion, with food and
beverages accounting for almost half of that total, and keep increasing annually. Among
the other significant halal exports were palm oil derivatives, halal ingredients, cosmetics
and personal care items, industrial chemicals and pharmaceuticals. Overall, the level of
Malaysia’s halal exports grew at an average rate of 14% between 2011 and 2015, with
China being the number one destination for such products.

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 Leading Destinations of Malaysian Halal Exports

Rank 2012 2013 2014 2015

1 China China China China

2 Singapore Singapore Singapore Singapore

3 United States United States United States United States

4 Indonesia Indonesia Indonesia Indonesia

5 Netherlands Japan Japan Japan

6 Thailand Thailand Netherlands Thailand

7 Japan Netherlands Thailand Australia

8 India India India Philippines

9 South Korea South Korea South Korea Netherlands

10 Philippines Australia Australia India

Source: Halal Industry Development Corporation

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According to current estimates, there are around two billion Muslims in the world with
62% of them living in the Asia Pacific region. Some 30 million Muslims live in China,
primarily in Xingjian, Ningxia, Gansu, Qinghai, Shaanxi, Yunnan, Shandong and Shanxi.
Within China, as well as the demand for from Muslim consumers, there is a growing
appetite for halal food among many non-Muslims. Spurred by the continuing food safety
issues in China, a number of mainland consumers are switching to halal food, largely on
account of their guaranteed quality and their compliance with strict food hygiene
protocols. As a consequence, the non-Muslim halal food market is now being seen as a
lucrative, untapped market by many halal food manufacturers.

The success of the halal food business in Malaysia is impossible without the concerted
efforts, strategies and measures of the government to support the development of halal
industry as identified in the Second Industrial Master Plan, 1996 – 2005; the National
Agriculture Policy, 1998 – 2010; the Ninth Malaysia Plan (9MP), 2006 – 2010; and the
Third Industrial Master Plan (IMP3), 2006 - 2020.

The positive outlook on Malaysia’s competitive edge in the halal food industry is echoed
by subsequent measures taken by the government. Among these was the conception of a
Halal Master Plan addressing issues of certification, sectored development, Halal
integrity, implementation, timeframes and responsibilities. The Master Plan envisages
three phases of the roll-out from 2008 to 2020 (Figure 2). In similar vein, the Third
Industrial Master Plan (IMP3) of 2006 estimated the annual global market value for both
food and non-food halal products at USD2.1 trillion. In lieu of this market prospect
Malaysia's food manufacturers were encouraged to forge joint ventures with established
food manufacturers, particularly from Australia and New Zealand, to service the ASEAN,
Middle East, European and US markets which have sizeable Muslim populations. Local
halal food products can gain easy access into these halal markets as Malaysia's Halal
Certification is globally recognized.

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 PHASE 1 : 2008-2010 PHASE 2 : 2011-2015 PHASE 3 : 2016-2020

Develop Malaysia as a Establish Malaysia as Broaden Geographic

global centre for halal one of the preferred footprint of home
integrity and prepare the locations for halal- grown companies
industry for growth related business

Figure 2. Phases of the Halal Master Plan for Malaysia

The worth of the entire halal industry which also includes Islamic finance is currently
estimated to be between USD200 billion to USD500 billion annually, with an annual
growth rate forecast of 12% to 15% for the next 10 years. Malaysia is also no stranger to
this industry. In fact, the Malaysian Halal Certificate is one of the most sought after
certification by halal producers worldwide (Dagang Asia Net, 2011). In this regard the
country’s Halal Research Council (2007) has listed eleven strategic thrusts to further
develop and promote Malaysia as a global halal hub:
1. enhancing awareness about Malaysia as the centre for halal products and services;
2. managing the increasing competition from countries in the region;
3. leveraging upon outward investments to gain access to raw materials and enhance
competitiveness;
4. enhancing R&D in product and process developments and leveraging upon latest
technological developments to expand the product range;
5. developing halal-compliant services;
6. utilising and leveraging upon Malaysian Halal Standard to differentiate Malaysia’s
halal products;
7. ensuring product quality and food safety;
8. undertaking systemic development of halal parks;
9. harmonising the halal certification process;
10. enhancing the coordination among agencies involved in the development and
promotion of the industry; and
11. strengthening the institutional capacity of organisations involved in the development
and promotion of halal products and services.

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 Thus, we can see that awareness plays an important roles in halal development in
Malaysia.

1.3 Objectives of the study

The general objective of the study is to examine awareness and perception of Muslim
consumers on halal food. The specific objectives include:

I. To examine the level of awareness among Muslim consumers on halal food

II. To discover other factors, beside halal, that influencing Muslim customers in
consuming food

III. To examine the understanding of halal concept among Muslim

1.4 Research Questions

The focal research question of this study is to investigate the awareness and perception of
Muslim consumers on halal food. Thus, it will consists of the following questions:

I. What is the level of understanding of halal term among Muslims?

II. What is the relationship between halal understanding and consumption of the food
among Muslims?

III. What is the perception/hope towards halal food standard served in the area?

IV. What is the relationship between halal status and price towards consumption among
Muslim?

V. What are the factors that contribute to the chosen of food outlets/supplier?

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1.5 Research / Conceptual Framework

This study purposed five hypotheses. The conceptual framework was developed to
portray the broad determinants that affect Muslims’ consumption of food. The
consumption of food served as the main dependent variable, while halal logo and
certification, price of food, taste of food, operators/supplier of food and food hygiene
served as independent variables for scrutinizing their effects on choosing food. Therefore,
according to the proposed conceptual framework (Figure 1), the following are the
proposed hypotheses for testing:

H1: Halal logo and certification has a positive relationship with consumption of food

H2: Price of food has a negative relationship with consumption of food

H3: Taste of food has a positive relationship with consumption of food

H4: Operator/Supplier of food has a positive relationship with consumption of food

H5: Food hygiene has a positive relationship with consumption of food

Halal
Halal logoand
Logo andCertification
certification H1

Priceofoffood
Price food H2

Taste
Taste of
of food
food H3 Consumption of food

Operator/Supplier
Operator/Supplier of
of food
food H4

H5
Food hygiene

Figure 1: Proposed Conceptual Framework

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1.6 Significance of the study

Behaviour will impact halal food industry unless JAKIM play its role accordingly. There
are lots of works to be done to improve halal awareness among Muslim customers. The
author believes the goal to be halal-hub can be realized when halal concept is fully
understood by all Muslims, that is by increasing their awareness about religious
obligation to consume halal food.

In creating awareness, government should make halal logo compulsory for all food
producers/suppliers. This will directly educate Muslims to consume only halal food. The
supervision can prevent and reduce the tendency of misuse and abuse of halal
certification and logo. This study may be used by government agency specifically JAKIM
to make some improvement relating to the halal matters in order to increase awareness of
halal food among Muslim customers in Malaysia.

Halal food awareness among Muslim customers is influenced by the understanding of

halal concept through practice. However, in their eating habit many took halal for
granted by assuming all food produced and market in Malaysia as halal. Thus when
shopping they look for price, taste and surrounding rather than halal logo. Usually,
Muslims will patron a restaurant for example mamak restaurants as long as they see
calligraphic engravings of Quranic verse or ‘Allah’ and ‘Muhammad’. In a real situation,
the operator may exploit the Quranic verses in order to attract Muslims’ customer to come
to their premises.

Majority Muslims customers relying on halal logo, nevertheless, with many issues spread
about fraud and misuse of halal logo, has make people distrust the halal logo or label. A
food outlet with halal logo does not mean the foods are guaranteed halal. It is not an easy
ways for consumer to identify whether the food is halal or not. The process of
slaughtering for example is not visible to the consumer. Muslims customers relying much
on JAKIM, thus, it is important for JAKIM to play their role in monitoring and
supervising the misuse of halal
logo in our market.

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The study of halal food awareness among Muslims brings about both theoretical and
managerial contribution to the country in term of realizing the target of Malaysia to be
halal hub in the region. Realizing the large potential of the halal business and the
continuous unique position and strength, Malaysia has position itself to become the
Global Halal Hub (Prime Minister of Malaysia, Dato’ Sri Mohd Najib bin Tun Abdul
Razak).

Halal food (without any doubt on the status of halal) in Malaysia is still limited as
compared to our neighbouring countries like Singapore, Thailand and Indonesia. This
may be due to the weaknesses of policy regarding halal certification and logo, the
requirement of halal certificate in Malaysia is on voluntary basis. It means that food
producers are not required to apply halal certification and logo because it is based on
voluntary basis. Hence, it should be made compulsory for every food producers to apply
halal certification and logo, even though the producers are non-Muslim. It is proven that
halal certification and logo may not bring any effect or turnover to the food producers,
instead increase the profit. Then, there will be sustainability of halal food dominance in
Malaysia.

Muslim’s awareness is a great power in order to educate the manufacturer of halal food
products in the market. As a Muslim, understanding and alert of halal and haram concept
is essential, we cannot just simply depend on act and the authority. For example, Muslim
consumers should take note about the content and ingredient of their food or any products
when they shop. They also should be aware of the processing method whether it follows
shariah compliance or not. There are nine categories of halal and haram related to food
products. Mashbuh and makruh are in between halal and haram law . Mashbuh means
something that lead to curiosity, meanwhile, makruh means something that not
encourages being used . It is vital for all Muslim consumers to have knowledge about any
products they want to buy falls under which category. Even though factor of awareness
among Malaysian has been acknowledged to be increase, yet their level of awareness are
in low category compared to other countries such as Indonesia and Thailand. The main
reason that leads to this situation is the limited sources of product information in the
market. This kind of issues is at worst when media reported about the misuse of halal
logo by irresponsible person almost every day whether in print media and electronic

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 media. Thus, to overcome this issue, researcher wants to identify the level of consumer
awareness, next to suggest a suitable concept in promoting halal products.

I believe that there is a need for a strong commitment in increasing halal awareness and
support by public, food producers and government agencies especially those directly
responsible in halal food in Malaysia.

In terms of managerial significance, the study provides ideas on increasing awareness on

halal food among Muslims, thus relates to the role of the Authority and Malaysian
Government in term of public policy regarding halal matters in our country.

Among others, this study will show the level of awareness among Muslim consumers. In
order to be halal hub, all parties have to play their roles accordingly, whether as
users/consumers or policy makers.

1.7 Definitions of Terms

i. Halal Food

The word ‘halal’ literally means permissible- and in translation it is usually used
as lawful (halalfoodauthority.com). The halal food authority rules for halal are
based on Islamic Shari’ah. The antonym to halal is haram, which means unlawful
or forbidden (Anisah, 2009). For example, it is well known in the meat trade that
Muslims consume halal meat. However, at times questions are asked, what is
halal? In Arabic it simply means permissible or allowed. Opposite to it is haram,
which means forbidden or not allowed. Halal aspects in food consist of preparing,
processing, storaging, packaging and transporting (Zawanah,2008).

ii. Awareness

According to Dictionary.com (http://www.dictionary.com), awareness means

the state or condition of being aware; having knowledge; consciousness. In the
context of halal, awareness is about knowing the concept of halal, in all
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 conditions. As a Muslim, one have to make sure that all goods, including food
taken are halal, and this could not simply be measured by only the physical
appearance, but have to be prepared in good manner from the beginning.

iii. Muslim

Basically, Muslim means a follower of the religion of Islam. A Muslim can be

identified whether through his/her daily practice and can easily found in Malaysia.
In this study, Muslim are meant spesifically for only Muslim in Malaysia. The
difference between Muslim and non-Muslim easily can be differentiate through
belief and practice.

iv. Halal logo and certification

In Malaysia, the only authority body that can produce halal logo is State Religious
Department and Islamic Development Department of Malaysia (JAKIM).
Currently, JAKIM has standardize the halal logo for the whole country. In
addition, government also recognized some foreign halal certifications which
have to go under the thorough checking procedure and standards of JAKIM.
Regular follow up visit also conducted in order to monitor the abuse of halal
certifications. Malaysia Halal logo which currently produced and accepted by
state religious department and JAKIM shown below. It can be checked through
halal website : http://www.halal.gov.my/v4/

Picture 1: Malaysia halal logo

v. Food hygiene

Food hygiene in this context relates to the process, appearance, conditions,

preparation, transportation and also presentation of food whether at the food stalls,

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 restaurants, cafes and supermarket. Without any doubt, most people influenced by
this factor when they want to consume food.

vi. Operator / Food supplier

Operator refers to those who run the food business or who supplies the food. In
Malaysia, due to halal aspect, most Muslim will consume their food from another
Muslim or from the people they trust or know most. However, there is also
Muslim who does not care much about the operator, as long as they trust and
influenced by the hygiene factor, and also by physical appearance of the food.

1.8 Organizations of project paper

This project paper is divided into five chapters. The first chapter is the introduction of the
research with a brief description of the halal concept and industry related issues. Then the
paper discusses the factors/variables that contribute to halal awareness.

The chapter also include objectives of the study, the research questions and the definitions
of major variables in this study. Second chapter will provide an in-depth review of
existing literature on the variables that are studied in this paper. Additionally, this chapter
also presents the hypotheses of this study. The third chapter explains the methodologies
and techniques that are used to collect and analyze the relevant and reliable information
from respondents. It includes how to construct the instruments to gather data for the
study. It also details the design and population of the study, sample size, sampling
procedure, measurement scales as well as data collection and analysis methods.

The fourth chapter describes the findings based on SPSS analysis results. The conceptual
framework as well as the hypotheses is examined to see whether they are supported by
the findings and whether the data collected is adequate to testify them. The last chapter is
a conclusion of the study. Discussion on major findings, theoretical and managerial
implications of the study is discussed by the researcher. The weaknesses as well as the
recommendations for future research are also presented.

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1.9 Conclusions

This chapter provides an overview of the overall research as a stepping stone for the
following next few chapters. From portraying the background of the study, stressing the
problem statement, to drawing the reader’s attention to the research objectives, and
research questions. Besides that, readers are also given further explanation on the
definition of major variables in order to allow readers to have a better understanding

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References

Zawanah binti Muhammad (2008), “Halal : Antara Tuntutan Agama dan Strategi Ekonomi”,
Jurnal Penyelidikan Islam, 21(3), 33-58.

Dr. Mohamad Nasran (2009), “Audit Pengesahan Halal: Kajian di Jabatan Kemajuan Islam
Malaysia”, Jurnal Penyelidikan Islam, 22(2), 19-54.

Anisah Ab. Ghani (2008), “Kebersihan dan Keselamatan Makanan Dari Perspektif Halal”,
Jurnal Halal, 37-52.

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