The theme ‘Vitalising Halal Ecosystems’ pertains to the objective of the Selangor International Halal Convention 2024 (SELHAC 2024), which is to enhance the efficiency, innovation, and accessibility of the halal industry.
The event is organised by the Selangor State Islamic Affairs and Innovation Culture and overseen by HIS Toyyiba Sdn Bhd, a subsidiary of Menteri Besar Selangor (Incorporated) MBI, also known as Halal International Selangor (HIS).
SELHAC 2024 plays a crucial role in developing the halal sector in both Selangor and Malaysia.
This year, SELHAC prioritises three key areas: accelerating halal certification processes, optimising halal supply chain logistics, and adopting halal digital innovations.
Selangor Executive Councillor for Islamic Affairs and Innovation Culture, Dr Fahmi Ngah, discussed the interconnectedness of these domains and their collective impact on the halal ecosystem.
Fahmi emphasised the need to accelerate halal certification processes. The federal government has aimed to reduce the certification period by 50 per cent, from approximately 60 days to 30 days.
This goal has been supported by several pilot projects that have successfully met the 30-day target.
There is a strong desire to exceed this target at the State level. The State has demonstrated through various Proof of Concepts (POCs) that a 20-day certification period is achievable.
This shortened period will alleviate the frustrations of small and medium enterprises (SMEs).
“People will be more committed to applying for the halal certification from JAKIM,” assured Fahmi.
In response, SELHAC introduces the Certificate of Readiness Assessment (CRA) to speed up the halal certification process. The CRA is one of the technological systems that SELHAC aims to advocate for this year.
It’s a system that enables preliminary checks, streamlines documentation and prevents application delays.
Fahmi disclosed: “We’re looking at embedding halal traceability solutions into logistics and warehousing to ensure halal assurance.”
It entails adopting technologies to monitor and verify that halal products meet halal standards throughout their lifecycle, from production to distribution.
The Malaysian Halal Certification (SPHM) by JAKIM implements this authentication approach.
This approach also assures that products and ingredients adhere to halal standards from the outset. Verifying the halal status at the start of the logistics chain secures the authenticity of the transported goods.
Moreover, the Selangor Islamic Religious Department (JAIS) introduced the Sertu Protocol to ensure that halal goods are transported and stored according to halal requirements.
BLOCKCHAIN TECHNOLOGY
This protocol safeguards the halal status of products in transit or storage by preventing contamination or mishandling that could jeopardise their authenticity.
There is also a proposal to integrate Blockchain technology into the halal traceability process. By doing so, halal products can be tracked throughout the supply chain, ensuring their quality from production to consumption.
Blockchain’s transparency and consistency can strengthen confidence concerning halal compliance because the information recorded cannot be altered or tampered with.
In addition to the CRA, SELHAC 2024 seeks to advance the Central Information Platform (CIP) within the halal ecosystem. The CIP is a centralised database of pre-approved halal ingredients.
“So rather than them having to source and then re-qualify the ingredients themselves, all the information sits in a central depository that will be most useful for SMEs,” explained Fahmi.
Following this, Fahmi stressed that halal digital innovation should encompass more than just developing halal products. It should also involve implementing digital solutions to market these products.
Similarly, the application of digital innovation in Islamic finance is also essential. This likely involves leveraging fintech solutions to make halal financial transactions and investments following Islamic principles.
The halal ecosystem’s certifications, logistics, and digital innovation processes are all interrelated.
A streamlined certification process facilitates quicker market access, efficient logistics safeguard halal authenticity, and digital innovations enable easy compliance management and verification.
GOALS FOR SELHAC 2024
SELHAC 2024 aims to integrate halal businesses with digitalisation and technology-based solutions to foster growth and enhance competitiveness in the global market. 
“This current government has taken a unique approach to this, including placing religious affairs and innovation culture under a single portfolio so that issues that surround the halal sector can be discussed in a modern context,” said Fahmi.
This strategic alignment ensures that technological advancements and digital solutions are developed and implemented in ways that respect and uphold the values of the halal sector.
The industry must keep pace with global trends and set new benchmarks for how traditional sectors can innovate responsibly.
After achieving RM55.7 million in potential business transactions last year, the goal for the upcoming SELHAC 2024 is to increase this amount by 10 per cent, aiming for approximately RM60-RM61 million.
Fahmi noted: “Potential business matching does not mean you get an actual transaction.”
Therefore, a secondary target has been set to improve transaction outcomes: achieving a 60 per cent success rate in converting these potential matches into actual transactions. This means aiming for six out of every ten participating companies to complete transactions successfully.
One way to achieve this goal is to engage with the previous participants from the food and beverage (F&B) industry.
THE FUTURE OF THE HALAL ECOSYSTEM
The discussion around what constitutes halal relies on the credibility of certifications, mainly the JAKIM Malaysia halal logo.
This logo signifies compliance with stringent criteria encompassing ingredients, premises, and governance, ensuring products meet the expectations of the Muslim community.
Confusion arises from the proliferation of alternative labels such as ‘pork-free’ or ‘lard-free,’ which, while indicating certain dietary restrictions, do not guarantee full halal compliance per JAKIM standards.
This distinction underscores the significance of maintaining formal halal certifications as the gold standard to protect consumer trust and market integrity.
“The JAKIM halal carries a global name. It’s a global standard accepted by many countries,” stated Fahmi.
In other words, products bearing this certification are poised for seamless exportation, offering local SMEs a pathway to regional and global markets.
This thereby promotes the overall reputation and success of halal products worldwide.
Looking forward, Selangor is spearheading innovations within the halal ecosystem, particularly in logistics and warehousing.
Collaborations between public, private, and academic sectors are enhancing traceability and assurance through technologies like Blockchain.
While technology presents solutions for ensuring halal integrity throughout supply chains, the challenge lies in practical implementation and regulatory oversight.
To address these challenges and foster a sense of unity and collaboration within the industry, Fahmi encourages all stakeholders to actively participate in SELHAC 2024.
SELHAC returns for its third edition at the Kuala Lumpur Convention Centre from Oct 16-19, 2024, in conjunction with the Selangor International Business Summit 2024 (SIBS 2024).
The proximity with SIBS 2024 enhances SELHAC’s contribution to promoting regional investment, networking, and industry insights across Southeast Asia.
The event will feature physical gatherings, virtual conferences, seminars, and business matching sessions.
Beneficial Seminars:
• SELHAC Business Forums.
• The 11th International Conference On Management And Muamalah 2024 (11th ICoMM 2024), co-organised by the University Islam Selangor (UIS).
• The Selangor Executive Halal Conference, co-organised by the Selangor Islamic Religious Department (JAIS).
Over 80 exhibitors will showcase exhibits across various sectors within the halal industry, including logistics supply chain, digital innovation, F&B, pharmaceuticals and health, cosmetics and personal care, tourism and hospitality, and more.
