A Guide To Halal Certification For OEM Manufacturing In Malaysia
Readers seeking a more general explanation on Halal licensing may refer to our guide to Halal certification requirements in Malaysia.
Getting an Original Equipment Manufacturer (OEM) or contract manufacturing facility Halal certified by the Malaysian Department of Islamic Development (JAKIM) can open doors to very lucrative opportunities.
To help, our guide consolidates key points from 2020 Halal Certification Procedure and 2020 Malaysian Halal Management System (MHMS 2020) relevant to the OEM / Contract Manufacturing Scheme.
By the end, readers will understand:
- what qualifies as Halal OEM manufacturing
- general application requirements
- internal Halal management requirements
- fees and application process
- certificate validity and post-certification obligations
- common reasons applications are rejected
Let’s begin.
Overview & key terminology
The OEM / Contract Manufacturing Scheme is intended for manufacturers contracted by other companies through a formal written manufacturing agreement to produce a range of products under:
- food and beverages
- cosmetics
- pharmaceuticals
- consumer products
- slaughterhouses
- medical devices
JAKIM’s OEM Halal certification only applies to the manufacturing service itself, not the products made. The end-products will require their own application under the relevant Halal certification scheme before the Halal Malaysia logo can be displayed.
As JAKIM uses several specific terms in the process, we’ve included a glossary for readers to start with or come back to for clarification as they read.
| Term | Summary |
|---|---|
| Original Equipment Manufacturer (OEM) / Contract Manufacturer | A company that manufactures products on behalf of another company under a written agreement |
| Brand Owner | The company that owns the product brand and appoints the OEM manufacturer |
| Malaysian Halal Management System (MHMS) | A company’s internal system for maintaining continuous Halal compliance |
| Halal Assurance System (HAS) | A comprehensive Halal management system required for medium and large manufacturers |
| Internal Halal Control System (IHCS) | A simplified Halal management system required for small and micro manufacturers |
| Halal Executive | A Malaysian Muslim employee responsible for managing Halal compliance within medium and large operations |
| Halal Supervisor | A Malaysian Muslim employee responsible for overseeing Halal compliance within small and micro operations |
General application requirements
Before submitting a Halal application, a manufacturer must first satisfy the following requirements:
- valid business registration with SSM, SKM, or another relevant government agency
- facility has been fully operational for at least three months
- valid premise license issued by the PBT
- valid licenses from relevant industry-specific regulatory bodies:
- BKKM Food Premise Registration Certificate for F&B manufacturers
- NPRA Manufacturer’s license for cosmetics and pharmaceutical manufacturers
- MDA Establishment license and product registration for medical device manufacturers
- Veterinary Certification Scheme certification or JPV support letter for slaughterhouses and animal-based product manufacturers
- PBKD product registration for pharmaceutical manufacturers
- premises manufactures or handles only Halal products
- written manufacturing agreement between the OEM manufacturer and brand owner
Once these requirements have been met, the manufacturer should determine the internal Halal management system required based on the size of the business.
Internal Halal Management System (MHMS)
All certified OEM manufacturers must implement an internal Halal management system to ensure continuous compliance.
Exact requirements depend on the size of the business.
| Industry Size | Annual Turnover | Operational Requirements |
|---|---|---|
| Small / Micro | Less than RM15 million |
|
| Medium / Large | More than RM15 million |
|
Naturally, larger manufacturers are expected to implement more comprehensive internal controls to manage Halal compliance across their operations.
Fees
Assuming the application is self-managed, there are two main official fees payable to JAKIM.
| Fee | Amount |
|---|---|
| Processing fee (Domestic company) | RM20 |
| Processing fee (Foreign company) | RM200 |
| Annual certification fee |
|
Note: The fees above don’t include the (far higher and more unpredictable) costs of preparing the facility to meet Halal certification requirements – for details see our guide to Halal certification fees.
Steps in the application process
Applications are submitted online through JAKIM’s MYeHALAL portal.
Manufacturers providing multiple manufacturing services must submit separate applications for each, and from start to finish, the process involves seven main steps.
| Step | Action Required | Timeline |
| 1. Account Registration | Register an account on MYeHALAL | Usually verified within 24 working hours |
| 2. Online Submission | Submit online Halal application | Ensure form is filled accurately |
| 3. Document Submission | Submit supporting documents | Must submit within five (5) working days of online submission |
| 4. Fee Payment | Receive payment letter from JAKIM and settle processing and certification fees | Must pay within 14 working days of receiving the fee letter |
| 5. Field Audit | The field audit is scheduled and conducted by inspectors, and includes opening meeting, document review, field inspection, report preparation, and closing meeting | Set by JAKIM based on availability, so the premise must be ready at all times |
| 6. Corrective Action (if NCR issued) | If non-compliance found, owner must provide written response of corrections with supporting documents and photos | At officers’ discretion but typically up to 14 working days |
| 7. Final Decision & Issuance | Halal Confirmation Panel makes final decision | If approved Halal certificate is issued within five (5) working days |
Certificate validity
Halal certificates issued under the OEM / Contract Manufacturing Scheme are generally valid for three (3) years, and on that note, let’s wrap this up with the manufacturer’s ongoing compliance obligations.
Post-certification compliance
Once certified, OEM manufacturers are responsible for maintaining continuous Halal compliance throughout the validity period which includes:
- maintaining the appropriate Internal Halal Management System
- keeping records relating to raw materials, production, and Halal training
- retaining these records for at least three years
- complying with periodic monitoring and inspections by JAKIM
Manufacturers should always remember that the Halal Malaysia logo can only be used where permitted under the relevant product certification scheme, and not by default on every product just because the manufacturing facility itself holds an OEM Halal certificate!
That’s it from us, and we wish you all the best with getting your business Halal-certified 🙂
Let MISHU help obtain your OEM Halal certification
If you’re interested in pursuing Halal certification or renewal for your business, our team can help prepare and submit necessary documents, liaise with the authorities, and guide you through each step of the process. Get in touch!