KUALA LUMPUR — Kelantan should promote or encourage halal certification, rather than make it mandatory as a condition for a business license, as this will “work against” the economy, the Small and Medium Enterprises Association of Malaysia (Samenta) said.
Its president Datuk William Ng said halal certification could cost a business up to RM200,000 per premise, a burden small and medium enterprises (SME) cannot afford.
This is besides the fee paid to the Islamic Development Department (Jakim), and does not include a further RM50,000 per annum if a halal coordinator is required on top of the training costs of new and existing employees.
“All these add substantial costs and time requirement to the business.
“Mandating halal certification at both application and renewal of business licensing will work against us as an economy – as it adds time and costs to starting a business – a key parameter in almost every ‘ease of doing business’ and competitiveness ranking,” he said in a statement.
Ng was commenting on Kelantan’s move to begin mandatory halal certification in the Kota Bharu district before implementing it in all other districts.
The certificate must be obtained as part of conditions to receive a business license.
Ng said larger chain stores may be able to afford to follow the stringent regulations required for halal certification, which covers more than the serving of non-halal food items to the business premises, processes, suppliers, packaging and labelling, transportation, among others.
“An ‘ikan bakar’ stall run by a husband and wife team, for example, will be hard-pressed to both apply for and keep to the requirements in order to renew the halal certification.
“We urge the Kelantan government to reconsider this decision, and instead work with F&B operators to promote halal certification and with the certification authority to further streamline and reduce the burden and costs of obtaining such certification.
Kelantan’s Islamic Development, Dakwah, Information, and Community Relations Committee chairman, Mohd Asri Mat Daud, recently announced the move that would be implemented first by the Kota Bharu Municipal Council.
Housing and Local Government Minister Nga Kor Ming has said local authorities cannot impose mandatory halal certification as a condition for a business license and must follow federal government policy which does not make it compulsory. – December 28, 2024
