KUALA LUMPUR: Small and Medium Enterprises Association of Malaysia (Samenta) says the proposed mandatory halal certification by Kelantan state government is beneficial but costly to SMEs.
Recognising that the certification enhances food safety and traceability, Samenta national president Datuk William Ng said it is important for consumer confidence in Kelantan where about 96 per cent of the population are Muslims.
However, he said making it mandatory adds an additional layer of burden and costs to businesses, especially to SMEs and small traders.
"Obtaining a halal certification is not just a matter of not serving non-halal food items, but also requires extensive documentation on the part of the applicant.
"The requirement is understandably stringent, and extends to business premises, processes, suppliers, packaging and labeling, transportation and others," he said in a statement.
Ng voiced his concerns over the state government's recent decision to mandate halal certification for food and beverage (F&B) operators, starting with Kota Bharu before extending the initiative across the state.
Ng added that F&B operators are also required to provide periodic training to employees, which require time-off and constant training as staff turnovers.
In addition to the fees paid to Jakim, he said applying for halal certification could cost up to RM 200,000 per premise if modifications are needed.
There could also be an additional RM50,000 per year for a halal coordinator, along with the costs of training new and existing employees.
"Larger chain stores may be able to afford to follow these stringent regulations, especially given the benefits of being halal certified.
"However, for small traders, both Muslims and non-Muslims, the process and costs of having a halal certification is another layer of costs and burden, in an already high-cost, low margin business environment.
"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," he said, adding that the decision could negatively impact the economy.
Ng urged the state government to reconsider the decision and collaborate with F&B operators to promote halal certification.
He also call for cooperation with the certification authority to further streamline and reduce the burden and costs of obtaining such certification.