Overcoming Barriers to Halal Certification: A Case Study on SMEs in Kedah, Malaysia

The global demand for halal products, driven by Muslim and non-Muslim consumers, has surged in recent years, highlighting the critical role of halal certification in enabling small and medium enterprises (SMEs) to succeed locally and internationally. However, the number of halal-certified SMEs in Malaysia, remains significantly low, limiting their market competitiveness and growth potential. This study examined the barriers faced by SMEs in Kedah in obtaining halal certification and their implications for business development. The research aimed to (i) identify key challenges such as high certification costs, knowledge gaps, regulatory hurdles, and resource constraints; (ii) analyze the impact of lacking halal certificate on the growth and market potential of SMEs; and (iii) assess the awareness and understanding of the halal certification process among SME owners and managers. Using a qualitative approach, data was collected through interviews with SME owners and halal executives, followed by thematic analysis. The findings revealed that high certification costs, limited awareness of certification protocols, and limited halal suppliers are the major obstacles. Halal certificate was found to enhance market credibility, facilitate entry into new markets, and strengthen consumer trust. The study concludes that targeted government support, awareness initiatives, and more accessible certification processes are essential to improving SME competitiveness. These findings underscore the importance of halal certification as a catalyst for the economic growth and sustainability of SMEs in Kedah.