As a fast expanding business, the Halal industry is now estimated at USD 2.1 trillion. The attention and demand for Halal certified services and products continues to rise throughout the world because Halal is not only for religious obligations, but there is also a rising demand from nonMuslims. Halal is not only concerned about religious requirements such as the right way to slaughter animals and prepare food. Halal products also attract non-Muslim consumers as it also focuses on where the resources and materials of the product come from. Hence, traceability and integrity of the product are part and parcel of a product being labelled Halal. Halal practices do not come to an end when the product has been manufactured as a product could easily lose its Halalness if it gets contaminated during the transportation and storage prior to retailing. Hence, training industry professional is crucial as the lack of professionalism in the transport and logistics process in the supply chain may cast doubts on the Halal status of a product. This study focuses on the level of training that professionals in the third party logistics industry have on Halal standards and what must be done to bridge the gap in training. The current research relies heavily on disclosed and published materials such as logistics firms annual reports, journals, newspapers and business magazines articles, published reports produced by consultants, special studies and reports commissioned by the Malaysian Government for an analysis of the current state of industry.

1. THE IMPORTANCE OF TRAINING
FOR HALAL LOGISTICS INDUSTRY IN
MALAYSIA
*Khazizul Maulod Bin Pahim, **Sabariah Jemali and ***Syed Jamal Abdul Nasir Syed Mohamad
*Malaysia Institute of Transport (MITRANS), Shah Alam Malaysia
**Malaysia Institute for Supply Chain Innovation (MISI), Shah Alam Malaysia
***Faculty of Business Management, UiTM, Shah Alam Malaysia
Abstract - As a fast expanding business, the Halal industry is
now estimated at USD 2.1 trillion. The attention and demand
for Halal certified services and products continues to rise
throughout the world because Halal is not only for religious
obligations, but there is also a rising demand from non-
Muslims. Halal is not only concerned about religious
requirements such as the right way to slaughter animals and
prepare food. Halal products also attract non-Muslim
consumers as it also focuses on where the resources and
materials of the product come from. Hence, traceability and
integrity of the product are part and parcel of a product
being labelled Halal. Halal practices do not come to an end
when the product has been manufactured as a product could
easily lose its Halalness if it gets contaminated during the
transportation and storage prior to retailing. Hence, training
industry professional is crucial as the lack of professionalism
in the transport and logistics process in the supply chain may
cast doubts on the Halal status of a product. This study
focuses on the level of training that professionals in the third
party logistics industry have on Halal standards and what
must be done to bridge the gap in training. The current
research relies heavily on disclosed and published materials
such as logistics firms annual reports, journals, newspapers
and business magazines articles, published reports produced
by consultants, special studies and reports commissioned by
the Malaysian Government for an analysis of the current
state of industry.
Keywords: 3PL, Halal Logistics, Logistics Training, Training
Needs, Halal Industries
I. INTRODUCTION
Today, the ultimate success of the Halal industry will
depend on the management ability to combine the element
of the supply chain. The logistics service providers play a
serious role in realizing this combination for the Halal
logistics [1]. The third party logistics (3PL) involved in
the reloading, collection, handling, consolidation, storage,
tracking and tracing and controlling the movement and
storage of Halal products represent an important and rapid
grow of the economy as Halal logistics supply chain is
more complicated than traditional logistics operation [1].
All the activities of Halal logistics can be achieved with
the proper training to create the awareness for handling
the Halal product and services to the 3PL player [2].
This paper tends to answer questions on what is the
state of the ‘Halal’ logistics industry in Malaysia and what
are the factors that influence the training needs in Halal
Logistics in Malaysia.
There is no doubt that training plays an important role
in order to boost the logistics industry as stated in [3]. It
also stressed that one of the strategic thrust in the logistics
industry is to ensure and adequate supply of competent
workforce to meet the long term requirement of the
industry.
The main objective of this study is to determine the
current state of Halal Logistics industry and identify the
factors influence the training needs in Halal Logistics
Industries in Malaysia.
II. LITERATURE REVIEW
A. Halal Industry
According to [4], components of Halal industry are (1)
food (2) non-food and (3) services as shown in figure 1.
Figure 1: Components of Halal Industry
(Source: MITI)
From Figure 1, HDC has come out with another
diagram that can illustrate the element and component in
the Halal industry more appropriately [5]. The logistics
and shipping are one of the components that is important
in order to ensure the products coming to consumer are
Halal.
According to [6], there are 10 clusters involved in Halal
industry. One of the clusters is knowledge-based workers
(K-Workers) whereby it functions to sustain K-Workers
for the Halal industries. PIHH is cognizant that skilled
2012 IEEE Symposium on Humanities, Science and Engineering Research
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2. and capable human resources are the pillars of any
industry and businesses. Collaborations with training
providers and academies such as Penang Skills
Development Center (PSDC), to develop skill sets and
modules in Halal management systems for processes,
certifications quality assurance and auditing. The
objective is to develop a sustainable pool of knowledge
workers and professionals for the Halal industries.
B. “Halalan Thoyibba”
Halalan Thoyibba is an Islamic concept that means
the goods or actions that are permissible and wholesome
refers to Islamic principles and Sharia laws. Halalan
Thoyibba can be easy understand as permissible and
allowed for usage with relation Sharia laws as long as they
a safe and not harmful [8]. Refers to Dr. Mah Hussain's
presentation’s in World Halal Research Summit 2010 said
that the assumption that “HARM” is similar to HARAM
meaning that all the harmful products is Haram
[8][9][10][11][12].
The opposite word of Halal is Haram which means
prohibited or forbidden. That which the Law-Giver has
absolutely prohibited; anyone who engages in it is liable
to incur the punishment of Allah in the Hereafter as well
as a legal punishment in this world [10].
Any product which lies within the grey area and does
not state clearly under the Halal or Haram or non-Halal or
category is classified as Syubhah or Mashbooh,
alternatively called uncertain or questionable. In this
situation, before the status of the product becomes clear,
Muslims should stay away from using Syubhah or
Mashbooh product [12][8][9]
C. The Growth and Development in Halal Industries
Halal is the new market force in the most Islamic
countries. The increasing number of Muslims for about
the quarter of the world population. At the same time,
Multinational Companies cannot stem from the growth
and demand for Halal products. Islamic countries
representing 20 per cent of the world population and this
figure is expected to increase to 30 per cent in 2025 [13].
Islam is the fastest growing religion in the world. It
is estimate that the Muslim population on earth is 1627.61
billion and keep increasing at 1.84% in 2009 [14].
Some Muslim countries involved in the Halal industry
must strive to satisfy consumer demand for Halal products
around the world where open only used by Muslims only,
but it is used also by non-Muslims.
D. Asia
The largest Muslims population is located at east and
South Asia. Asia has the largest Muslims nations at any
given country in the world and has over one billion
Muslims population. However, 70% are located outside of
the Middle East. Asian nation has been seen as a center
for Halal testing, production, international trade, research
and standardization [15][16].
Malaysia Government has taken the initiative to
become a global Halal hub 2010 and there are several
guidelines and policies that are created in order to achieve
it such as:
• The Tenth Malaysia Plan
The Halal Industries in The Tenth Malaysia Plan
discussed in chapter 4 about the Moving towards Inclusive
Socio-Economic Development. The strategies are to
implement anchor companies for each cluster and
undertake vendor development programmes to encourage
participation through the value chain. Potential clusters
include Halal-related industries, Islamic banking and
financing and insurance including takaful, the energy
sector including green energy and tourism and hospitality
[17].
• Third National Agricultural Policy (1998 – 2010)
To promote the Halal food products to global markets and
to strengthen the capacity for standardization, monitoring,
inspection, and certification of Malaysian Halal Standard,
where this standard to be endorsed worldwide [18].
• Small and Medium Industries Development Plan
(2001 – 2005)
Coordinating measures and programmes at both federal
and state levels pertaining to efforts to promote Malaysia
as a Halal food hub [19].
• Ninth Malaysian Plan (2006 – 2010)
Producing an agency to promote and support the country
as a centre for Halal foods which meet the dietary
requirements for Islamic and the religiously approved way
of slaughtering animals [20].
• Third Industrial Master Plan (2006 – 2020)
To make Malaysia as the global Halal hub for the
production and trade in Halal goods and services [3].
The [3] state that Republic China, India, Pakistan,
Thailand, Brunei, Singapore and West Asia have
approximately one billion Muslims population is the main
target market for Halal goods and services. The fast
development of Halal products and services being
positioned to supply this rewarding market. The South-
East Asia had an important and competitive market of
Halal products and services. Lack of focus on establishing
domestic production in foods and limited or absence of
facilities for Halal certification are the limitation in order
to develop the Halal industry in the sub region.
Dr. Winnai Dahlan [1], the Director of the Thai Halal
Centre stated that Thailand Muslims market keeps
increasing every year at a 12.5% from the year 2000 to
2006 (six years) gain an income of 11.05 billion baht
every year. Thailand's participation in Halal market in
2006 valued at USD 330 million or 0.057 % considered as
a very potential for exporting foods to both Muslims
countries and non-Muslim countries such as European
Union (EU) and United Stated of America (USA) has put
Thailand at 12th
place in the world food export [2].
Thailand tries to be a recognized as a Halal Centre of
Excellence in Science and Testing [15].
Singapore has launched large campaign in the Middle
East in order to become a Halal hub while Brunei with
2012 IEEE Symposium on Humanities, Science and Engineering Research
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3. Australian companies combined their roles in the Halal
sector to make sure that the Halal product and services
offer safe and at the high-quality [15].
According to [15], the China Halal industries are
expanding in the global market. China has signed
Memorandum of Understanding (MOU) with the
European Commission and ready to export the Halal
product to European market while India's exporter tries to
gain recognition through the Hazard Analysis and Critical
Control Point (HCCP), Halal certification and
International Standard Organization (ISO).
There are drastic developments in Asia in terms of
Halal Industries. Asia now competes with each other
region to become the global Halal hub as the growing of
the market demand and the rise of Islamic population
around the globe. This competition brings opportunities in
business and of course to the consumers. The positive
development in Halal Industries in Asia, especially
Malaysia seen as a very potential country in developing a
Halal global hub.
E. Comparison between Conventional and Halal
Logistics
i. Conventional Logistics
The objective of supply-chain management is to
facilitate the processes whereby primary supply is ordered
and transformed to satisfy consumer preferences
efficiently [21][22]. Logistics management activities in
general comprise of inbound and outbound transportation
management, fleet management, warehousing, materials
handling, order fulfilment, logistics network design,
inventory management, supply/demand planning, and
management of third party logistics services providers
[23][24].
There are fragmentations of activities whereby each of
this activity was managed separately. It began to evolve
where by fragmentation of activities starts to integrate into
two areas, which are the material management and
physical distribution, in the year 2000 the total integration
starts to take place where elements within both material
management and physical distribution were combined
together and soon known as logistics.
ii. Halal Logistics
Halal industry seems to be expanding through two
main thrust that is:
• Halal product such as food and beverages,
cosmetics and pharmaceutical.
• Halal services such as Islamic Banking and finance,
logistics, education, training, consultation and
tourism.
It can be seen that the development of Halal industry
becoming more competitive as now not only the ASEAN
country such as Thailand, Filipina, Malaysia and Brunei
active in the Halal Industry but today middle east country
such as United Arab Emirates, Western Country such as
United States of America and Europe such as France have
participated and started to give their serious attention in the
industry [25].
Rapid development in Halal Industry depends on the
management’s ability to mix the element of the supply
chain and the 3PL plays a serious role in achieving the
Halal Logistics [1].
The definition was supported by Hassan Rimawi,
The Technical Chief of Al Islami Foods [16]:
“Halal supply chains including everything start from the
resource and preparation of Halal ingredient to the
manufacturing and delivery of the final product to
customer’s shelves. This includes the segregation of Halal
ingredient or finished products from non-Halal products
such as pork or alcohol-related products right through the
entire chain. Same measures need to be practices in
logistics process for examples moving the Halal fed
animal to the slaughterhouse or when shipping chilled or
frozen Halal meat in enclosed shipping containers."
According to [16][5][26] Halal logistics is a process
of managing the procurement, movement, storage, and
handling of materials, parts, livestock, parts (semi finish
inventory both food and non-food relating information and
documentary flows) through the organization and the
supply chain in compliance with generals principles of
Sharia Law. Chilled or frozen Halal meat in enclosed
shipping containers.
I. The Needs for Training
In today’s global marketplace, companies and
employees within the logistics industry require specialized
and affordable training and development to increase their
competitiveness with the continued growth of the
transportation industry companies and concluded that
employee in global require technical in area the
fundamental, knowledge, service and skills [27].
According to [27] the employees continue to play an
increasing role in the differentiation of product & service.
Logistics continued in globalization in trade, delivering
freight margin, complex contract, increasing competition,
increased security risks, changing role of service
providers, technological advancement, required
contingency planning and future trade outlook and it is
important that employee training seen as investment. The
organization must review the type of program, the
appropriate provider and evaluate what is the best fit and
how the training program can support organization’s
future strategy and objective and also can improve the
performance productivity of staff and ensure they have the
skills that industry needs. The possible training benefit
would be increased employee motivation, satisfaction and
morale, increased competitiveness, consistency message,
increased efficiency, reduction in employee turnover &
increased innovation in strategies & product.
There are employers who identify that technical
development courses are very important for personnel in
2012 IEEE Symposium on Humanities, Science and Engineering Research
1637

4. the supply-chain sector and according to
logistics is very important as:
• Lack of awareness and underst
logistics sector.
There is a lack of sector awareness a
workforce participant, so some tra
undertaken in order to build some
understanding of the logistics industr
• Attracting, developing and retainin
specialist an emerging priority.
IT and policy change influencin
chain/logistics businesses. Due to
workforce, retaining the supply-cha
vital as they have the experience in th
• Emerging occupations/specialist skil
Due to new technology adapted in t
vary from each other, human-resourc
need to be adaptable to match varie
ranging from semi-skilled (o
professional (tactical) to executive lev
A well-educated/trained workforc
opportunities for growth and developmen
sector. Company/organizations are willi
learning technology, health and quality
courses have played an important role in
growth of countless industries in the Mi
travel and tourism to manufacturing and
with a limited quota of specialist progr
chain professionals, has expressed a
suitable courses to help standardize its
especially in terms of matching the best
global leaders such as Europe and N
Although companies in the Middle East l
have a limited number of options fo
employees, it’s seemed that the situation
next coming years. The suppliers will p
address the imbalance, although client
understand the importance of selecting a
provider that can meet their specific requir
III. THEORETICAL FRAMEW
Figure 2 : Proposed Framework
[28], training in
tanding of the
among the future
aining has to be
e awareness and
ry.
ng supply chain
ng the supply
the shortage of
ain specialist is
he industry.
lls set.
the industry and
e strategies will
ety types of job
operational) to
vel (managerial).
ce will give
nt to the logistics
ing to invest in
[28]. Training
n supporting the
iddle East, from
retail. However,
rams for supply
requirement for
logistics sector,
t practices from
North America.
logistics industry
or training their
n will change in
probably help to
ts still need to
a quality course
rements [29].
WORK
A. Demand
Market demand which
elements such as the growth
automatically affect the d
throughout the world. Since t
keeps on increasing annually
grabs the opportunity to wide
the Halal logistics services.
logistics services, there is a n
logistics.
According to Rupasingha
comprises of education an
employee will pursue more tr
skills or develop new ones
training lead to higher standar
enhance performance in a c
training is the answer [31].
Individual and employer
training needs. A person n
because they have some so
insurance, medical and addit
to, because of the requireme
because of the mandate of
training for an employee is
workers to achieve high le
which contribute in developi
economic perspective, it is r
will only involve in training w
institutional setting can rang
provider in a classroom to an
the job training and off the jo
by a provider at the workplac
Demand for training from
premium attached to skill as
the premium low, the demand
As in [32] also states that the
and trainees shows that there
training by the employers. He
the need to acquire skilled la
relationship between the ec
apprentices [33]. The rest of e
is apparently led by business
B. People
An extended marketing
[35] by adding another thre
marketing mix 4 P’s by [36
“people” as a fifth element
taking into account the huma
assumption the employee
knowledge about their job
talent, interpersonal skills, ab
to ensure the service delive
expectation.
People in this context r
expertise of human capital
Halal logistics considered as
there are lacking of perso
logistics [39]. The emerging
h would comprise several
h in Halal industry that will
demand for Halal product
the demand for Halal product
y, most of the 3PL company
en their services by providing
. In order to provide Halal
need for training in the Halal
et al. [30], human capital is
nd job skills training. The
raining to improve the current
s with the assumption that
rd of living and better job. To
current or future workplace,
rs are “demanders” for the
normally going for training
ort of benefit in it such as
ional allowance or they have
ent to promotion or may be
f the company. Demand for
very important to lead the
evel skills and productivity
ing the quality workforce. In
recommended that employers
which benefited the firm. The
ge from the private training
apprenticeship combining on
ob training to formal training
ce [32].
m the employee based on the
well as the training costs. If
d for training will be low too.
large numbers of apprentices
e is a significant demand for
ence, the demand is driven by
abour. This idea supported by
conomy and the number of
employer demand for training
needs [34].
g mix firstly introduced by
ee element to the traditional
]. The [37][38]has introduce
t in a marketing mix which
an resources factors with the
must have the appropriate
and also should have right
bility and service knowledge
ered to meet the consumer's
refer to the lack of skills and
in Halal Logistics Industry.
a new industry and of course
onnel responsible in Halal
g of Halal industries become
2012 IEEE Symposium on Humanities, Science and Engineering Research
1638

5. very important as the demand for Halal product and
services is huge. Halal can be considered as a global
product and in order to make sure the quality of the
product and services, maintaining, monitoring the
integrity of the entire value chain “from farm to fork is
very important. Due to the expansion of Halal Industries
consumers and manufacturers demand for Halal standard
throughout the value chain process such as transportation,
storage, packaging, material handling, warehousing,
facilities used and the process of product integrity [40].
To meet the demand of skilled workforce, an
academic institution must develop formal degrees in
supply chain and logistics at the postgraduate, graduate
and undergraduate [41]. References [42] indicate that the
rises of awareness in logistics by logistics graduates who
are working in the firm are increasing. This is because the
prompt changes in development, practice and further
research in logistics are very challenging and in order to
meet the changing demand of the logistics sector, the
supply chain and logistics education need to be improved
to produce skills and experienced workers in the future
[43].
The demand for personnel that have knowledge and
expertise in the Halal procedure and guidelines is very
crucial now. Expanding global Halal markets require
competent human capital in Halal industries to ensure the
Halalness of the product and services. The personnel
related to Halal oriented business must be equipped with
the skills and knowledge about the Islamic guideline and
principle towards Halalan Thoyibba concept.
C. Level of Awareness
According to [44] study, Halal product is not only
consumed by the Muslims only but also consume by the
non-Muslim worldwide because the Halal concept
consists of anything that free from any element that
prohibited by Sharia Law for the use of Muslims who
emphasizes hygiene, safety and the wholesomeness of the
food or product and these are the factors that caught the
non-Muslims attention as it provides the outstanding
platform for healthy dietary promote by the Islamic way
of life.
Report by MITI in [3], indicates that there is eleven
strategic thrust to fulfil in order to establish the
development and promotion of Malaysia to be a global
Halal hub. The first strategic thrust that has been
highlighted is to enhance the awareness on Malaysia as
the centre for Halal products and services. This strategic
thrust considered important as it is placed as a number one
in developing and enhancing Malaysia as a global Halal
hub. It is also mentioned in [20], Malaysia will be
developed as a body for the certification of Halal product
and services while JAKIM certification will be promoted
worldwide.
All of these initiatives show the government
seriousness in promote the Halal industry in Malaysia.
The awareness on Halal created by government now have
shown the positive result.
Therefore, it cannot be denied that the need for training
in Halal industries is really important to make sure the
product and services delivered to the consumers are totally
Halal. The rise of consumers’ levels of awareness and
demand has made the Halal sector to work harder to make
sure that the supply chain and logistics process to meet the
Halal requirement [2]. The introduction of Malaysia’s
Halal logo by the Department of Islamic Development
(JAKIM) has increased high awareness among the Muslim
population of the importance of consuming products or
services that follow Islamic principles and guidelines.
IV. CONCLUSION & RECOMMENDATIONS
The aim of this study is to determine the current state
of Halal logistics industry and identify the factors that
influencing the training needs in Halal logistics industry
in Malaysia. Following literature review, the researcher
found that there were gaps regarding the training needs in
Halal logistics industry in Malaysia. It was hoped that this
study would investigate the current situation of Halal
logistics industry in Malaysia and try to identify the
factors that influenced training needs in Halal logistics
industry in Malaysia by following the research process in
answering the research questions.
This study has identified the Halal logistics industry in
Malaysia is a new function in traditional / conventional
logistics. The level of awareness of consumers about the
Halalan Thoyibba concept has led to the rise of demand
for Halal product not only for Muslim but also for the
non-Muslim consumers around the globe especially for
those who are in the Islamic country.
There are an increasing number of Halal research done
by the universities and research bodies such as the Halal
traceability, slaughtering, radio frequency identical
detector (RFID), food ingredient, genetic modified food,
Halal certification, pharmaceutical and logistics but there
are very scanty research done in human-resource
development (HRD) especially in training in Halal
logistics industry in Malaysia. This is supported by the
literature review that informed there is only one training
provider who runs the Halal training in Malaysia and they
don’t have the Halal logistics module in it. The outcome
of future research on this might shed some light on the
problem, and might lead to more interesting findings.
The training needs in Halal logistics industry are very
vital now as the industry now keeps pace with the global
demand for Halal product and services. In logistics, the
products and services must be handled with high
supervision to avoid the Halal product and services
become haram due to logistics process.
Hence, in a resource-scarce nation such as Malaysia,
business and industrial organizations must play an active
role in improving the logistics system capabilities by
associating themselves with the right training and
knowledge.
2012 IEEE Symposium on Humanities, Science and Engineering Research
1639

6. ACKNOWLEDGMENT
The authors would like to thank Malaysia Institute of
Transports (MITRANS), UiTM for the Malaysia Logistics
Council (MLC) research grants.
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