A Review of Hindering Factors for Halal Certification Adoption Among Muslim-Owned Small and Medium Enterprises (SMEs) of Food Industry in Malaysia

Halal certification has become increasingly important in Malaysia due to its majority Muslim population and growing demand for halal products both domestically and internationally. Thus, having small and medium enterprises (SMEs) in the food industry with halal certification is essential, especially among Muslim-owned businesses. However, halal certification is still a problem for Muslim-owned SMEs, and their readiness to obtain halal certification is at a very low level. The factors that motivate SMEs to obtain halal certification have been widely discussed in the literature, but the hindering factor in obtaining halal certification specifically among Muslim-owned SMEs is still limited. The method used in this conceptual study is derived from literature review in the form of journals, proceedings, and related articles. This review was aimed at identifying and analysing the hindering factors contributing to the unwillingness of Muslim-owned SMEs to obtain Malaysian halal certification. Among the factors include lack of knowledge and awareness about the requirements and benefits of halal certification, lack of capital which could lead to misperception about the cost and Muslim entrepreneurs are being comfortable with their status as Muslim.