Drinks Chain Bungkus Kaw Kaw Becomes Halal Certified After JAKIM’s Initial Rejection

In an exciting development for Malaysia’s bustling food and beverage (F&B) industry, Bungkus Kaw Kaw (BKK), a popular local drinks and breakfast chain, has achieved its halal certification from the Department of Islamic Development Malaysia (JAKIM). This achievement, announced in December 2024, follows an earlier setback when the chain was revealed not to be listed in JAKIM’s database of certified establishments.

The milestone is particularly significant for Bungkus Kaw Kaw, a brand cherished for its authentic Malaysian cuisine and beverages. The company’s journey reflects the growing importance of halal certification in an increasingly discerning consumer market, both locally and globally.

Why Halal Certification is Critical

In Malaysia, halal certification is more than a label—it is a trust symbol. With over 61.3% of Malaysia’s population identifying as Muslim, halal certification ensures that food and beverage offerings comply with Islamic dietary laws and uphold ethical and hygienic practices. The certification process not only reassures Muslim consumers but also appeals to non-Muslims who value quality and ethical sourcing.

Globally, the halal industry is thriving. In 2023, the halal food market alone was estimated to be worth USD 1.9 trillion, with projections suggesting it will surpass USD 2.5 trillion by 2027. Malaysia, often regarded as a global halal hub, plays a pivotal role in setting standards and providing a benchmark for other countries to follow.

For Bungkus Kaw Kaw, obtaining halal certification signifies a commitment to inclusivity and excellence. The brand’s offerings are now validated for compliance with Islamic principles, strengthening its appeal to Muslim customers and cementing its reputation as a reliable F&B player in the ever-growing halal industry.

The journey to halal certification was neither swift nor simple for Bungkus Kaw Kaw. In September 2024, JAKIM clarified that Bungkus Kaw Kaw, along with five other well-known F&B chains, including Johnny’s Restaurant, Black Canyon, Dolly Dim Sum, and Mr. Dakgalbi, were not listed in its database of halal-certified establishments.

This revelation sparked a wave of public concern, as many customers assumed that their favorite dining spots were certified halal. While the lack of certification does not necessarily mean a business is non-halal, it does raise questions about compliance with official standards.

Recognizing the importance of halal certification, Bungkus Kaw Kaw acted swiftly. The company undertook a rigorous process to align its operations with JAKIM’s standards. The certification journey involved:

• Supplier Audits: Ensuring all raw materials, from spices to proteins, were sourced from certified halal suppliers.
• Documentation Overhaul: Providing detailed records of recipes, ingredients, and processes for JAKIM’s review.
• Operational Adjustments: Making necessary changes to food preparation, storage, and handling to eliminate any risk of contamination.
• Employee Training: Conducting workshops to educate staff on halal practices and the importance of compliance.

After months of inspections, evaluations, and continuous improvements, Bungkus Kaw Kaw proudly announced its halal certification in December 2024. This milestone was celebrated by the brand’s loyal customers, who expressed their renewed confidence in the chain’s offerings.

What Halal Certification Means

For Bungkus Kaw Kaw, halal certification is not merely a regulatory requirement—it is a strategic advantage. The certification enhances the brand’s reputation, fosters trust among consumers, and opens new growth opportunities.

1. Consumer Trust: Muslim consumers can now confidently enjoy Bungkus Kaw Kaw’s offerings, knowing they meet Islamic dietary laws. Non-Muslim customers, too, view halal certification as a mark of quality and hygiene.

2. Market Expansion: With halal certification, Bungkus Kaw Kaw is better positioned to tap into Malaysia’s booming halal market and explore opportunities in halal-friendly tourism and international exports.

3. Brand Differentiation: In a competitive F&B landscape, being halal-certified sets Bungkus Kaw Kaw apart from uncertified rivals, solidifying its position as a trusted name.

Securing halal certification from JAKIM is a meticulous process designed to ensure the highest standards of compliance. The key steps include:

• Application Submission: Businesses submit their applications via the MYeHALAL system, detailing their operations, supply chain, and ingredients.

• Ingredient Verification: JAKIM scrutinizes every ingredient to confirm it complies with halal requirements. Any doubtful or non-halal components must be replaced.

• Inspections: JAKIM officials conduct thorough inspections of the premises to ensure compliance in areas like cleanliness, segregation of halal and non-halal items, and proper equipment usage.

• Approval: If all standards are met, JAKIM grants the halal certification, valid for two years. Businesses must undergo periodic audits to retain their certification.

This rigorous process underscores the integrity of halal certification in Malaysia and highlights why it is highly regarded globally.

Challenges Faced by Small Businesses

While Bungkus Kaw Kaw successfully navigated the halal certification process, many small and medium enterprises (SMEs) in Malaysia struggle with this endeavor. According to industry data, only 13% of SMEs in Malaysia are halal-certified. The challenges include:

1. High Costs: The financial burden of upgrading facilities, sourcing certified ingredients, and paying application fees deters many SMEs. Fees range from RM100 for micro-businesses to RM1,000 or more for larger establishments.

2. Lack of Expertise: Navigating JAKIM’s requirements can be daunting for businesses unfamiliar with the certification process.

3. Resource Limitations: Small businesses often lack the manpower and time needed to manage the detailed documentation and inspections required.

Despite these challenges, Bungkus Kaw Kaw’s success demonstrates that with determination and proper planning, even smaller businesses can achieve halal certification.

The Role of JAKIM in Halal Certification

Established in 1997, JAKIM (Jabatan Kemajuan Islam Malaysia) is Malaysia’s leading authority on halal certification. Its responsibilities include:

• Formulating Halal Standards: JAKIM collaborates with industry experts to develop comprehensive guidelines that cover every aspect of food production.

• Ensuring Compliance: Through audits, inspections, and rigorous evaluations, JAKIM ensures businesses adhere to halal standards.

• Consumer Education: JAKIM actively educates the public about halal certification and provides tools like the Malaysian Halal Portal for consumers to verify certified establishments.

JAKIM’s robust framework has made Malaysia a global leader in halal certification, with its standards recognized in over 40 countries.

Bungkus Kaw Kaw’s halal certification aligns with Malaysia’s vision of becoming a global halal hub. The Halal Industry Development Corporation (HDC) reports that Malaysia’s halal exports, including food, cosmetics, and pharmaceuticals, reached RM 43 billion in 2023.

With its newly acquired certification, Bungkus Kaw Kaw is well-positioned to contribute to this growing economy. The brand may explore international markets, where Malaysian halal-certified products are in high demand, particularly in the Middle East, Indonesia, and Europe.

Halal certification is more than just a stamp of approval—it is a declaration of integrity. For customers, especially Muslims, it assures that the food and beverages they consume align with their religious beliefs. For non-Muslim customers, it reflects ethical sourcing, cleanliness, and quality assurance.

Bungkus Kaw Kaw’s move to secure halal certification has been celebrated by its patrons, with many expressing gratitude for the brand’s efforts. Social media platforms have been flooded with positive comments, with one user stating, “This is why Bungkus Kaw Kaw remains my go-to spot. They genuinely care about their customers.”

Halal Certification and Its Global Impact

The halal certification process is no longer confined to Muslim-majority countries. Countries like Japan, South Korea, and Australia are increasingly adopting halal standards to cater to Muslim travelers and consumers. Global giants like Nestlé and Unilever have also embraced halal certification to tap into this lucrative market.

In this context, Bungkus Kaw Kaw’s success story is not just about meeting local demands but also about positioning itself as a global player in the halal economy.

With its halal certification in place, Bungkus Kaw Kaw is gearing up for a new chapter. The brand plans to expand its presence in Malaysia by opening new outlets in underserved regions. Additionally, the company is exploring partnerships with halal-friendly tourism initiatives to attract international customers.

Bungkus Kaw Kaw’s journey serves as an inspiration for other SMEs in Malaysia. By sharing best practices, collaborating with halal authorities, and leveraging government support programs, smaller businesses can overcome the challenges of certification and thrive in the halal economy.

Consumer Awareness

While certifications provide assurance, consumers are encouraged to stay vigilant. Tools like the Malaysian Halal Portal allow customers to verify the halal status of establishments and products, ensuring their choices align with their dietary preferences.

The story of how Bungkus Kaw Kaw becomes halal certified is one of resilience, determination, and commitment to excellence. The brand’s achievement is not just a win for its customers but also a testament to the growing importance of halal certification in Malaysia and beyond.

As the global halal market continues to expand, Bungkus Kaw Kaw’s journey offers valuable lessons for other businesses aiming to succeed in this dynamic industry. With its newfound certification, the brand is poised to delight customers while contributing to Malaysia’s reputation as a global halal leader.