Blockchain technology potential in halal industry

KUANTAN, 28 July 2021 - The Centre of Industry and Community Network (ICoN), Universiti Malaysia Pahang (UMP), together with the German Alumni Association of Malaysia (GAAM), Blockworq Sdn. Bhd. and Maishince Academy organised a Professional Talk Series Webinar Forum Series 2 titled ‘Facts, Myths and Potential of Blockchain Technology in the Halal Industry’ to unravel the misunderstandings surrounding the issue of the use of blockchain technology in the halal industry.

The industrial panel consisted of the Founder and President of Crypto Valley Malaysia Association, Effendy Zulkifly, a very experienced person in the blockchain halal industry.

Also present was the academic representative, namely the Vice President of The Society of Logisticians Malaysia and lecturer from the Faculty of Industrial Management (FPI) UMP, Associate Professor Dr. Yudi Fernando.

The forum was graced by a well-known scholar, namely the Chief Executive Officer, Founders Circle Advertising Sdn. Bhd. and the second-place winner in the reality television programme Pencetus Ummah (PU) organised by Astro Oasis in 2015, Dr. Taha Omar.

The global market for halal products is encouragingly increasing in line with the global increase of the Muslim population at 1.83 billion in 2009.

This increase also escalated the demand for halal products such as food, cosmetics, medicine and consumables.
However, since last year, several issues have arisen related to halal certification, among others is the halal status of food products such as imported frozen meat.

According to Associate Professor Dr. Yudi, the importance of transparency in the supply chain of halal products not only emphasises the issue of halal but also toyib (clean).

“Referring to a study by Gartner Inc., an international research institution, by 2030, the increase in business related to blockchain will reach USD3.1 trillion.

“In fact, many large companies have used blockchain technology in their research and operations,” he said.

In addition, while reciting verse 21 from surah an-Nisaa’, Dr. Taha Omar described the blockchain as a digital asset that can be an important element towards creating fairness in the supply chain if used according to proper norms.

Several large companies in Malaysia are starting to use blockchain technology in their operations, such as Air Asia and DHL.

Meanwhile, Effendy Zulkifli discussed the issues related to halal certification covering the process chain of a product, including resource management, slaughtering, quality control, hygiene, storage and delivery, which has raised doubts among manufacturers, operators and consumers.

He also talked about the potential of blockchain technology in the halal industry worldwide and how this technology can provide assurance to manufacturers, operators and consumers regarding the halal status of products.

He also shared his findings as a consultant for the Halal Blockchain Network (HBN) for a local company.

The engagement results demonstrate the potential of blockchain technology as a sustainable basic structure for use in more than just products.

Meanwhile, the General Manager of Maishince Capital and co-founder of Maishince Academy, Ahmad Bukhari Roslan, said his team has taken proactive steps by collaborating with UMP in preparing modules and lecturing in Professional Diploma in Blockchain Engineering, the first diploma programme in blockchain engineering in Malaysia.
The first group of 22 students started their studies on 17 July 2021.

He hoped that this collaboration can provide manpower and experts in the field of blockchain so that Malaysia will not be left behind in this technology.

The forum was officiated by the Assistant Vice-Chancellor (Graduate Development Department), Associate Professor Ir. Dr. Nurul Hazlina Noordin.

She hoped that this forum could benefit all parties involved and UMP could play its role as a centre that educates the community in imparting knowledge and introducing quality knowledge technology.

In fact, the organisation of this webinar forum also unraveled the chain process and blockchain technology in helping to overcome the problem of certification in the halal industry, especially related to the food industry.

The forum received a very encouraging response when viewed by more than 1,000 people throughout the programme, with Razin Hafiz as the moderator.

By: Halizan Mohmood, Centre For Industry And Community Network
Translation by: Dr. Rozaimi Abu Samah, Engineering College/Faculty of Chemical and Process Engineering Technology