Extent of Disclosures on Halal Assurance Management System (HAMS): Cases of Halal Certified Companies Listed on Bursa Malaysia

Malaysia's position as one of the drivers of the halal industry in the world at the same time puts it as a leader in developing a comprehensive and trusted halal management and assurance system which become a global reference and yardstick. The Department of Islamic Development Malaysia (JAKIM) as the body responsible for providing halal certification to manufacturers and products produced in Malaysia, introduce the Halal Assurance Management System (HAMS) in 2011 as a measure to establish a systematic mechanism in monitoring, controlling and improving halal management and assurance at the internal level of the entity. It is an effort to inculcate accountability and integrity among businesses in preserving product and process validity. In line with this principle, it is appropriate for companies to channel information related to the implementation of HAMS to their stakeholders through appropriate disclosure in appropriate publications and media. This study examines and analyzes the level of disclosure related to HAMS in the form of programs, activities and measures implemented in JAKIM halal-certified listed companies. For this purpose, a total of seven JAKIM-halal certified public listed companies among food and beverage manufacturers were selected as the study sample. Reviews and analysis are made on the annual reports, publications and websites of the companies concerned to extract and identify the disclosures made related to the implementation of HAMS components. The results of the study found that the level of disclosure related to HAMS components by these companies is very minimal and limited. The establishment of the Internal Halal Committee (IHC) and training programs which are important aspects in the implementation of HAMS are also not covered in the marketing strategies of most companies. Lack of value proposition is a factor why this scenario applies. This study also found that the size and maturity of a corporate influence the level of disclosure made. Based on these findings, it is suggested that the level of awareness and sensitivity among consumers be increased to put pressure on businesses. The evidence also suggests the need for mandatory enforcement of standards on these types of disclosures.