Halal integrity risks and compliance strategies in non-halal-certified food SMEs in Negeri Sembilan: A descriptive study

Abstract

 The halal food sector plays an important role in maintaining consumer confidence in Malaysia, where most of the population is Muslim. Although Malaysia has an established halal certification system, more than 90% of food and beverage businesses are small and medium-sized enterprises (SMEs), many of which operate without halal certification. This raises concerns about how halal integrity is maintained in daily operations, as non-certified businesses may rely on personal religious understanding and informal practices. This study aims to identify halal integrity risks among non-certified SME food establishments and examine the practices and challenges they face in maintaining halal compliance. Data were collected via a 22-item online questionnaire administered to 41 SME operators and employees in Nilai and Tampin, Negeri Sembilan. The data were analysed using SPSS, including reliability testing and descriptive statistics. The findings showed strong awareness of halalan toyyiban (87.8%) and farm-to-table traceability (82.9%). However, gaps were found in supplier verification: 45% were unaware of their suppliers’ official halal status, and only 12.2% conducted on-site verification. While utensil segregation was widely practised (87.8%), documentation remained weak (34.1%). The main challenges were infrastructure costs (mean = 4.48) and administrative complexity (mean = 4.21). The study recommends repositioning the SME Halal Integrity Shield (SHIS) as a practical tool to facilitate the adoption of the Internal Halal Control System (IHCS) under MPPHM 2020, as amended by Pekeliling Bil. 1/2026.