ASSESSING MSMES’ READINESS TOWARDS HALAL CERTIFICATION: A CASE OF SELANGOR, MALAYSIA

The Halal food industry is increasingly growing in line with the rising global demand for Halal food products. Malaysia has emerged as a leader in this industry; however, the number of companies with Halal certification remains low compared to the total number of micro, small, and medium enterprises (MSMEs) involved. This study was conducted to identify the level of awareness and readiness of MSMEs toward Halal certification, examine the relationship between these two variables, and investigate the primary factors influencing MSMEs’ readiness to apply for Halal certification. A quantitative approach was used in this study through the distribution of questionnaires to 188 MSMEs in the food and beverage industry in Selangor. Data analysis involved the use of descriptive statistics, correlation analysis, and multiple regression using SPSS software. The findings showed that the level of awareness and readiness among MSMEs in Selangor towards Halal certification is high, with a mean score of greater than 4.50. There is a significant positive relationship between awareness and readiness (with r = 0.659, p < 0.0010), indicating that an increase in awareness leads to greater readiness to apply for Halal certification. The regression analysis revealed that awareness, perception, and knowledge about the benefits of Halal certification are the main factors influencing MSMEs’ readiness to apply Halal certification in Selangor, with awareness being the most prominent factor. This study highlights the importance of implementing information empowerment programs and awareness campaigns as key strategies to increase MSME participation in the Halal certification system in Selangor. These findings also support the national goal of boosting Halal exports by 2030 through strengthening MSME involvement in the global Halal industry chain.