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Implementation and impact of halal food standard: an empirical study in Malaysia

Sari, Dian Permata and Jaswir, Irwandi and Haji Che Daud, Mohd. Radzi (2021) Implementation and impact of halal food standard: an empirical study in Malaysia. Journal of Islamic Monetary Economics and Finance, 7 (3). pp. 473-502. ISSN 2460-6146 E-ISSN 2460-6618

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As a Malaysian Halal Food Standard, MS1500 is established to strengthened Malaysian role in the global halal market. This study aims to identify the factors affecting the implementation of MS1500, the positive impact of this implementation and the relationship between the implementation and its impact. Food and Beverages Industry in Malaysia which already got Halal Certificate and Halal Logo was chosen as scope of population. This study applied Covariance-Based Structural-Equation-Modelling (CB-SEM) method with 212 sample companies. The results showed that Perception-On-Implementation, Halal-Control-System-Activity and Owner-Management-Employee-Limitation are the factors affecting the Implementation of MS1500. It is also found four Positive Impact of Implementation of this MS: Trade & Free Movement, Innovation, Clean & Save Production-Process and Consumer & Corporate Image. Additionally, this study discovered that the better the implementation of MS 1500, the higher the positive impact that can be accomplished by the industry. It is also found that in Malaysia, finance and regulation were not the factors that cause the limitation on implementation of Halal Food Standard. Finding of this study can be used as an input for Malaysian government in planning any suitable programme to promote the implementation of this standard. Additionally, the extent of the positive impacts of this implementation for the industry is expected to be able to encourage all food industry in Malaysia to apply and fully implement this MS in their daily operations.

Item Type: Article (Journal)
Uncontrolled Keywords: MS1500, Implementation, Positive-Impact, Halal Food Industry
Subjects: BPH Islamic Economics
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): International Institute for Halal Research and Training (INHART)
Depositing User: Prof. Dr. Irwandi Jaswir
Date Deposited: 11 Oct 2021 12:45
Last Modified: 11 Oct 2021 12:45
URI: http://irep.iium.edu.my/id/eprint/92943

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