University of Malaya
The difference in the halal standard is a significant challenge for the development of the global halal industry. This article predominantly discusses the different factors of halal standards implemented in Malaysia, Indonesia, Brunei and Singapore and their implications respectively. The study is based on reliable primary sources including in-depth interviews with respondents from halal institutions in each country. The study shows that differences of halal policies, cultures and maslahah (public interest) are the main factors of the different halal standard in those four countries. The implications as such have affected the imbalance acknowledgement of halal certification, stringent control of the business negative perception and double standard in halal certification. Apart from that, it led to confusion within Muslim consumers themselves as there are various halal logos from different countries.
Keywords: Financial inclusion, Islamic finance, index, risk sharing/risk taking, wealth distribution