THE NEEDS OF HALAL TRANSPORTATION CONTROL IN MALAYSIA: A MULTIPLE CASE STUDY APPROACH ZUHRA JUNAIDA BINTI IR MOHAMAD HUSNY HAMID

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1 THE NEEDS OF HALAL TRANSPORTATION CONTROL IN MALAYSIA: A MULTIPLE CASE STUDY APPROACH ZUHRA JUNAIDA BINTI IR MOHAMAD HUSNY HAMID A dissertation submitted in partial fulfilment of the requirements for the award of the degree of Master of Science (Transport Planning) Faculty of Built Environment Universiti Teknologi Malaysia MAY 2010

2 iii Most importantly, I would like to dedicate this dissertation to my husband, Mohd. Iskandar for his sincere love, patience, sacrifice, inspiration, understanding and constant help and encouragement, and our lovely children, Arif Imran, Aqil Irsyad and Aisyah Fatini, as I walked the journey of my study in Universiti Teknologi Malaysia. Also my appreciation dedicated to my parents, Mohamad Husny Hamid and Purwati binti Hasjim, and my parents in law, Illyas bin Abdullah and Che Tom binti Abdullah, for their constant support and encouragement. Not to forget, my sister Herny Ramadhani, for her invaluable support and encouragement.

3 iv ACKNOWLEDGEMENT Several institutions and individuals have greatly contributed to this work in several ways. This study would not have been possible, if it were not for the strong support and cooperation from my supervisor Dr. Muhammad Zaly Shah bin Muhammad Hussein, I would like to thank him for his guidance, support and patience, which made it possible for me to bring this dissertation to completion. My thanks also extended to Mr. Azudin Khalid from IHIA, Mr. Zainal Ramli from HDC, Ustaz Mohd. Khalis b. Mohd. Aroff from JAKIM and Mr. Idzuddin Hashim from PPIM for their kind cooperation and help during the interview processes. Last but not least to all my fellow friends that helped and supported me throughout my study.

4 v ABSTRACT Halal is a compulsory element in choosing consumable product for a Muslim. It Is a duty for a Muslim to only use or consumed goods that is halal according to Syariah Law. With the remarkable market segment and with majority of food and other product producer are non-muslims, the assurance in maintaining the halal integrity becomes more important and ever. Transportation as one of main component of halal supply chain plays a key role in facilitating the manufacturing, logistics and trade of halal products throughout the world. However, lack of study on halal transportation has hampered the progress of research in this area. This study was done to investigate whether the integrity of halal products can be maintained during it is being transported and try to explore the need of halal control in transportation activities. In order to have a deeper understanding of the problems, an literature review were done on various important concepts such as, halal concept, the muslim consumer s duty and concern on halal product, halal industry in Malaysia, the concept of halal logistics and halal transportation and how it is being applied. In order to provide the evidence to support the study, profound details and explanations from the different stakeholders need to be gathered which can only be obtained through interview sessions. Therefore, a qualitative study and multiple case study approach have been employed. Interview session has been done with halal authorities such as JAKIM, IHIA and HDC as well as the Malaysian Islamic consumer association (PPIM) representative. Collected data has been transcript, coded and interpreted into results and findings. The results from study show that there is a clear need for halal control in handling halal food or product particularly during transportation process. Two standards initiatives on halal product handling which also catered transportation have been uncovered during data collection. These initiatives were done by YES and IHIA. To date, these initiatives are the only program in the world so far that provides a clear and concise guideline on how halal product should be managed from the perspective of logistics operations. This proves that not only there is a need for halal control during transportation but there already standards are being drafted to be used as a guideline to implement the halal control in transportation.

5 vi ABSTRAK Halal adalah satu elemen yang wajib bagi umat Islam dalam memilih produk yang boleh diguna-pakai.adalah menjadi satu tanggungjawab untuk seseorang Islam itu untuk hanya mengguna atau memakan produk yang halal dari segi hukum Syariah. Dengan sekmen pasaran yang mengagumkan dengan majoriti pengeluar produk makanan dan produk lain terdiri dari bukan Islam, jaminan dalam mengekalkan integriti halal bagi sesuatu produk menjadi sangat penting. Pengangkutan sebagai salah satu komponen yang utama dalam rantaian pembekal memainkan peranan yang penting di dalam membantu proses pengeluaran, logistik dan pasaran produk halal keseluruh dunia.walau bagaimanapun, kurangnya kajian dilakukan dalam bidang pengangkutan halal menyebabkan penyelidikan dalam bidang ini terbantut. Kajian ini dilakukan bagi menyelidik samada integriti bagi produk halal boleh di kekalkan semasa ianya diangkut dancuba menerokai keperluan kawalan halal dalam aktivitiaktiviti pengangkutan. Bagi memahami masalah ini secara mendalam, kajian literature telah dijalankan pada pelbagai konsep penting antaranya, konsep halal, tugas and keperihatinan penguna Islam tentang produk halal, industri halal di Malaysia, konsep logistic halal dan pengangkutan dan bagaimana ianya digunakan. Dalam menyediakan bukti bagi menyokong kajian ini, perincian dan keterangan secara mendalam dari pihak yang berkepentingan perlu di kumpul di mana ini hanya boleh diperolehi melalui sesi temuduga.maka dengan ini, kajian kualitatif dan pendekatan kajian kes pelbagai (Multiple Case Study Approach) telah digunakan. Sesi temuduga telah dilakukan bersama pihak penguasa halal seperti JAKIM, IHIA dan HDC dan juga wakil dari persatuan pengguna Islam Malaysia (PPIM) Data yang telah dikumpulkan di transkrip, dikodkan dan diterjemahkan kepada hasil dan penemuan.hasil dari kajian ini menunjukkan bahawa terdapat keperluan yang jelas terhadap kawalan halal di dalam pengendalian makanan atau produk halal dalam pengendalian produk halal.dua inisiatif piawaian pengurusan produk yang juga merangkumi pengangkutan telah diungkai semasa proses pengumpulan data. Inisiatif in telah di bangunkan oleh YES dan IHIA.Sehingga kini, inisiatif ini adalah satu-satunya seumpanya yang menyediakan garis panduan yang jelas dan terperinci tentang bagaimana sesuatu produk halal itu seharusnya diuruskan dari perspektif operasi logistic.kajian ini membuktikan bahawa bukan sahaja terdapat keperluan terhadap kawalan halal dalam pengangkutan bahkan telah wujud piawaian yang telah didrafkan yang boleh digunakan sebagai garispanduan untuk melaksanakan kawalan halal dalam pengangkutan.