the efficiency of halal processed food industry in Malaysia

Mohd Ali Mohd Noor, Mohammed Rizki Moi, Radiah Abdul Kader

Research output: Contribution to journalArticle

Abstract

Efficiency is indispensable for an industry to ensure cost reduction and profit maximization. It also helps the industry to be competitive and remain in the market. In 2010, Malaysia aims to be the world halal hub. The hub should capture at least five percent of the world halal market with at least 10,000 exporting firms. However the hub failed due to the small number of firms efficiency that finally contribute to less number of firms export. Thus, this study aimed to measure the efficiency of halal processed food industry in Malaysia using Data Envelopment Analysis (DEA). Input variables used were local raw inputs, labour, and monetary assets of halal food industry in Malaysia. Meanwhile the output used was the total sales revenue of the halal industry in Malaysia. The study shows that very few indusries are efficient in each category led by meat, dairy, cordials and juices, marine products, food crops, and grains industry. Therefore, the government needs to emphasize on industry's efficiency to be competitive and be the world halal hub in the future.

Original languageEnglish
Pages (from-to)37-46
Number of pages10
JournalGlobal Journal Al-Thaqafah
Volume6
Issue number1
Publication statusPublished - 2016

Fingerprint

food and luxury products industry
Malaysia
efficiency
industry
firm
profit maximization
cost reduction
world market
sales
agricultural product
revenue
assets
data analysis
Industry
Food
labor
food
market

Keywords

  • DEA
  • Efficiency; Halal food industry
  • Processed food

ASJC Scopus subject areas

  • Cultural Studies
  • Arts and Humanities(all)

Cite this

the efficiency of halal processed food industry in Malaysia. / Mohd Noor, Mohd Ali; Rizki Moi, Mohammed; Abdul Kader, Radiah.

In: Global Journal Al-Thaqafah, Vol. 6, No. 1, 2016, p. 37-46.

Research output: Contribution to journalArticle

Mohd Noor, MA, Rizki Moi, M & Abdul Kader, R 2016, 'the efficiency of halal processed food industry in Malaysia', Global Journal Al-Thaqafah, vol. 6, no. 1, pp. 37-46.
Mohd Noor, Mohd Ali ; Rizki Moi, Mohammed ; Abdul Kader, Radiah. / the efficiency of halal processed food industry in Malaysia. In: Global Journal Al-Thaqafah. 2016 ; Vol. 6, No. 1. pp. 37-46.
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