Clear Demarcation of Powers Vital in Malaysian Halal Sector

A prominent lawyer from Malaysia, Nizam Bashir,  has highlighted the urgent need for the proposed Halal Act, a legislative initiative that has been under consideration by the Islamic Development Department‘s (Jakim) Halal Hub Division since 2009. This proposed legislation is designed to empower Jakim, an agency operating under the Prime Minister’s Department, with a clearer statutory framework to improve its oversight and enforcement capabilities in halal-related matters.

Current Legal Framework and Its Limitations

At present, Jakim operates without a fully defined statutory framework, leading to challenges in regulating and certifying halal products effectively. Bashir emphasized that this lack of a comprehensive legal structure is “untenable” given Jakim’s crucial role in halal certification and its impact on public trust.

“The proposed Halal Act aims to address significant deficiencies in the existing legal framework. One major goal is to consolidate diverse legislative instruments into a single, comprehensive act,” Bashir explained to the New Sunday Times. This consolidation would help streamline and enhance the legal processes related to halal certification, making it more efficient and effective.

Existing Legislation and Its Deficiencies

The current regulatory landscape includes several laws, such as the Trade Descriptions Act 2011, which addresses misleading trade descriptions and false claims. Specifically, Part II of the Trade Descriptions Act prohibits false trade descriptions, while Part III deals with misstatements other than false trade descriptions. The Trade Description (Certification and Marking of Halal) Order 2011 further outlines the authorities responsible for issuing halal certificates and specifies offenses related to unauthorized certification.

Despite these provisions, gaps remain. Section 29 of the Trade Description (Certification and Marking of Halal) Order 2011 outlines which authorities can issue halal certificates, while Section 8 describes offenses against those certifying food contrary to the order’s standards. These gaps in the existing legislation can be exploited by offenders, leading to inconsistencies and challenges in enforcement.

Importance of a Dedicated Halal Act

A dedicated Halal Act could address these deficiencies by providing Jakim with explicit authority to oversee and enforce halal standards. This includes making it mandatory for companies, individuals, factories, and abattoirs to obtain and use the halal logo, rather than the current voluntary practice. The act would also clearly delineate Jakim’s jurisdiction, reducing conflicts and ambiguities between state and federal agencies.

Economic Impact and Legal Evolution

The halal industry, valued at an estimated USD 2.3 trillion annually, represents a significant sector of Malaysia’s economy. Research by Hadi Akbar Dahlan and Norrakiah Abdullah Sani from Universiti Kebangsaan Malaysia’s Faculty of Science and Technology highlights the long history of halal regulation in Malaysia. The framework began with the Trade Description Order 1975 and was enhanced by the Malaysia Standard (MS 1500:2009) and the Trade Description Act 2011. The Trade Description Law 1997 further advanced halal regulations by trademarking and protecting the halal logo.

Additionally, the Consumer Protection Act 1999 prevents misleading labeling of food products, and the Malaysian Standard (MS) 1500:2009 defines halal food according to Syariah principles. However, Jakim currently lacks the authority to investigate or prosecute cases involving non-certified meat sold as halal, which are handled by other agencies such as port authorities, Customs, and the Malaysian Quarantine and Inspection Services Department. Prosecutions are managed by the Domestic Trade and Consumer Affairs Ministry, which does not have a dedicated halal unit.

On Thursday, Datuk Nadzim Johan, lead activist of the Malaysia Muslim Consumers Association, urged the government to reconsider the enactment of the Halal Act following revelations of a meat cartel smuggling non-certified meat into Malaysia and misrepresenting it as halal. This issue underscores the urgent need for a more robust and comprehensive legal framework to ensure the integrity of Malaysia’s halal certification process.

The proposed Halal Act is poised to address these critical issues, providing Jakim with the necessary authority and tools to enhance its regulatory role, ensure compliance, and uphold the credibility of Malaysia’s halal certification standards.