PICORP Boosts Zaiyadal Group’s Halal Value Chain for Malaysia’s Halal Initiative

The global halal market is booming, with forecasts projecting it to exceed $3 trillion by 2028. As demand for halal products continues to grow, so does the need for a strong and transparent halal value chain. Malaysia is positioning itself as the world’s leading halal hub, and Progressive Impact Corporation Berhad (PICORP) and Zaiyadal Group are at the heart of this initiative. By strengthening the halal value chain, this partnership is helping Malaysia retain its position as a global leader in the halal economy.

Their collaboration focuses on improving every link in the halal value chain, from halal-compliant warehousing to digital certification and testing. The goal is simple but impactful — to ensure every halal product, from production to packaging, is in full compliance with global halal standards.

This article explores how PICORP and Zaiyadal Group are redefining the halal value chain in Malaysia, focusing on laboratory testing, digital transformation, and food processing facilities. By integrating innovative technologies with traditional halal principles, they are creating a model for the rest of the world to follow.

What is a Halal Value Chain?

The term halal value chain refers to the end-to-end process of ensuring that products are halal at every stage — from raw material sourcing to production, processing, storage, and distribution. Every step in the chain must adhere to Halalan Toyyiban principles, which emphasize cleanliness, safety, and ethical production in addition to halal compliance.

For a product to be truly halal, every aspect of the production process must be verified. This means:

• No cross-contamination with non-halal products.
• Proper sourcing of raw materials from halal-compliant suppliers.
• Accurate labeling and traceability of every ingredient.

With rising consumer awareness and the growing global demand for halal products, businesses cannot afford to ignore the integrity of their halal value chains. An error at any stage could result in product recalls, brand damage, and financial losses.

PICORP’s Role in Strengthening the Halal Value Chain

PICORP has a proven track record as a leader in environmental and technical solutions. The company provides essential services such as laboratory testing, environmental monitoring, and waste management. Leveraging its technical expertise, PICORP is now supporting the halal industry by ensuring every step of the production process is verified, tested, and compliant with halal standards.

Here’s how PICORP is driving the halal value chain forward:

1. Halal Lab Testing: Ensuring Purity

At the heart of Malaysia’s halal certification system is laboratory testing. Ensuring that products remain halal throughout production is a significant challenge. This is where ALS Technichem (Malaysia) Sdn Bhd (ALSM), a subsidiary of PICORP, comes in. ALSM is a JAKIM-accredited laboratory that ensures every ingredient and product is halal-compliant.

• Ingredient Analysis: Before production begins, all ingredients are tested to verify that they are free from non-halal substances like pork derivatives or alcohol.
• Contamination Checks: Tests are conducted to ensure no cross-contamination occurs in production, storage, or handling.
• Traceability: All ingredients and raw materials are documented and tracked to ensure their halal status.

The integrity of halal food is often questioned, especially when products are imported or have complex supply chains. This rigorous testing process ensures that companies like Zaiyadal Group can guarantee the halal status of their products, which is crucial for exports to key markets like the Middle East, Indonesia, and Europe. It also builds trust with Muslim consumers globally.

PICORP is constantly upgrading its testing capabilities. Using high-precision analytical equipment, the company can detect even trace amounts of non-halal substances. The result is better accuracy, faster results, and improved compliance with the Skim Akreditasi Makmal Malaysia (SAMM) standards.

2. Digital Transformation: The Role of VH Smart

Digital transformation is one of the most critical aspects of modernizing the halal value chain. As manual processes become outdated, businesses are turning to digital solutions to streamline halal certification, compliance, and traceability. PICORP, in collaboration with Serunai Commerce, has introduced VH Smart, an integrated digital halal ecosystem.

• Application Management: Businesses can submit, track, and manage their halal certification applications through an online portal.
• Ingredient Tracking: Every ingredient used in production is logged and traceable in the system, ensuring compliance.
• Audit Preparation: Companies receive automated alerts for halal audits and inspections.
• Document Storage: Digital storage of essential halal-related documents reduces the need for manual paperwork.

Benefits of VH Smart

1. Faster Certification: Reduced manual workload speeds up halal certification and renewal processes.
2. Real-Time Tracking: Businesses can track certification status in real-time improving visibility and accountability.
3. Cost Savings: By cutting down on paperwork and administrative processes, VH Smart reduces costs.

Global Impact

Countries like Saudi Arabia, the UAE, and Indonesia are adopting similar digital solutions to manage halal certification. However, Malaysia’s VH Smart system is seen as a leader in this field. By simplifying certification, the system makes it easier for companies like Zaiyadal Group to export halal products worldwide.

3. Halal-Compliant Warehousing

While production and certification are crucial parts of the halal value chain, the storage and handling of halal products are equally critical. Cross-contamination with non-halal products can occur during storage or transportation, potentially invalidating halal certification.

To address this, Zaiyadal Group has invested in halal-compliant warehousing and food processing facilities. These facilities are designed to prevent contamination and ensure complete segregation of halal products.

What Makes a Warehouse Halal-Compliant?

• Segregation: Halal products are stored separately from non-halal goods.
• Dedicated Equipment: Processing equipment and tools are dedicated to halal production only.
• Hygiene Standards: Strict cleaning protocols ensure the prevention of contamination.

Zaiyadal’s Role

Zaiyadal’s halal warehouse is equipped with modern temperature-controlled storage units, ensuring that products remain fresh and uncontaminated. The warehouse also complies with JAKIM’s standards, making it a model for other halal-compliant storage facilities worldwide.

Impact on Malaysia’s Halal Initiative

The collaboration between PICORP and Zaiyadal Group aligns with Malaysia’s broader goal of becoming a global halal hub. Their efforts contribute to several key objectives, including:

1. Increased Exports: Malaysia’s halal exports reached RM45.04 billion in the first nine months of 2024, up from RM39.36 billion in 2023.
2. New Markets: With trusted halal certification, Malaysia is better positioned to export to new markets like Japan, South Korea, and China.
3. Economic Growth: The Malaysian government aims to increase halal exports to RM70 billion by 2025, driven by partnerships like PICORP and Zaiyadal.

JAKIM (Jabatan Kemajuan Islam Malaysia) plays a pivotal role in certifying halal products and ensuring compliance. It has developed one of the world’s most trusted halal certification systems, used as a benchmark by countries like Japan, South Korea, and the UAE.

• Certification: Ensures products meet global halal standards.
• Audit and Inspections: Conduct regular inspections of food production facilities.
• Global Recognition: Products certified by JAKIM are recognized in over 60 countries.

This certification is vital for Malaysian companies that want to export halal products to high-demand markets like the Middle East and Southeast Asia.

The partnership between PICORP and Zaiyadal Group is a landmark moment in Malaysia’s quest to become a global leader in the halal economy. Through strategic initiatives in halal lab testing, digital transformation, and halal-compliant warehousing, they are creating a transparent, traceable, and trustworthy halal value chain.

By using innovative solutions like VH Smart, Zaiyadal Group can access global markets faster, reduce costs, and maintain compliance with stringent halal standards. As halal consumers demand higher standards of authenticity, companies like PICORP and Zaiyadal Group are taking the lead in providing trusted halal products.

Their efforts are not just beneficial to Malaysia but also serve as a blueprint for other countries seeking to establish stronger halal value chains. As the global halal market continues to expand, Malaysia’s role as a halal hub is more critical than ever. Partnerships like this one highlight the importance of collaboration, technology, and certification in strengthening the halal industry worldwide.