The term “halal” is normally associated with food prepared according to Shariah or Islamic law principles. Semantically, it signifies something which is lawful or permissible by Shariah, be it food related or non-related. Though the former understanding is still prevalent, nevertheless there are evidences showing a shift in public perception on the actually meaning of the term i.e. that it permeates the “halalness” of all matters in daily life. This can be observed through the progress in the halal industry whereby industrial players have diversified their offerings across categories responding to consumer demand who are not only looking for halal food but also products and services of other sectors such as finance, lifestyle, healthcare, hospitality etc.
In Malaysia, the halal concept has a significant impact on the economic well-being of the nation. The concept has been turned into economic initiatives that ultimately become a national agenda. The establishment of the Halal Industry Development Corporation (HDC), the creation of the Halal Hub Division of the Department of Islamic Development Malaysia (JAKIM), the publications of the various halal standards by the Department of Standards Malaysia (DSM) and the introduction of 2008-2020 Halal Industry Master Plan (HIMP) – among others reflect the gravity of the government concern in regard to the matter. All in all, these initiatives aimed at making the halal concept the key driver to a new source of economic growth.
According to KFH Research, the value of the global halal economy in 2012 was approximately USD3.2 trillion and the figure is expected to double to USD6.4 trillion in 2018. For the sake of comparison, the figure is slightly higher than a combined GDP of both Germany and the United Kingdom which are the world’s fourth and fifth largest economies respectively in 2016.
Looking at the prospects the halal economy have to offer which range from GDP growth, business and trade activities, employment opportunities; many countries are strategising their marketing blueprints to seize the available potential and create dominance in the global halal marketplace.
Recent global halal development shows that not only are Muslim countries showing their interest to tap into the halal market share; but non-Muslim nations as well as Muslim-minority countries are also jumping on the bandwagon too. This state of affairs can be observed across the globe from Thailand to the United Kingdom, Spain, Italy, Brazil and even Japan.
For Muslim consumers, they are quite sensitive to the issue of “halalness” of products and services. The intensity of the sensitivity increases when it comes to food related matters. Nevertheless, with ample supply of products and services from Muslim and non-Muslim companies that comply with their faith-based need, the problem is no longer a major concern among Muslim consumers. In fact, they have more choices and options to choose from than ever before.
The progress achieved by halal economy thus far is indeed commendable as it has benefited halal stakeholders especially manufacturers and consumers. The former gain business benefits while the latter fulfil their consumerism needs. In the capitalist system, this argument holds true as man is deemed as a rational being. His rationalism is to bring in the most out of his economic conduct. As a producer, he will strive for maximisation of profits and as a consumer, he will try to maximise his utility from his consumption activities (Nik Mustapha, 2012).
Since religion has no place in capitalism and decisions made by economic agents are mostly centred on the notion of materialism and individualism; humans consequently has to trade off his rationalism with a number of externalities and environmental costs. Therefore, to operate halal initiatives on capitalistic platform is to repeat the mistake of the capitalist system which neglects the importance of sustainability / sustainable living. In other words, profit and utility maximisation should not be the utmost priority of man to chase after.
Sustainable living begins with sustainable production and sustainable consumption. The Oslo Symposium on Sustainable Consumption held from 19 – 20 January 1994 defines sustainable production and sustainable consumption as “the use of services and related products which respond to basic needs and bring a better quality of life while minimizing the use of natural resources and toxic materials as well as emissions of waste and pollutants over the life cycle of the service or product so as not to jeopardize the needs of future generations”.
There is nothing un-Islamic about the aforementioned definition. In fact, all the items spelt out in the definition are consistent with Quranic verses and prophetic traditions that were revealed more than 14 centuries ago.
Being the fundamental sources of rules and laws, the Quran and the Sunnah have provisions on how best to handle resources which cover both scopes of production and consumption; the prohibition of wasteful behaviour, the instruction to care for other beings in our ecosystem; the emphasis on quality of deliverables and the outcome of both material and spiritual quests etc.
The concept of halal is not just confined to food, but covers diverse industry segments. As business and industries get more complex, the halal value proposition becomes all the more compelling to all stakeholders as it exists within the supply chain of intersecting industry sectors.
In Surah Al-Baqarah, verse 208, Allah says to the effect: O you who have believed, enter into Islam completely [and perfectly] and do not follow the footsteps of Satan. Indeed, he is to you a clear enemy.
There is nothing wrong in gaining economic benefits from the halal industry. Much more importantly is that it should not take place at the cost of the integrity of the halal concept as prescribed by the Quran and the Sunnah. As the fountainhead of the halal concept are the Quran and the Sunnah, all principles and values laid down by Islam should be abided by all stakeholders involved in the halal economy.
