Diagnosing the Halal Industry of Taiwan: A Viable System Model Approach

ABSTRACT The global halal industry is currently a trillion dollar industry. Businesses around the world are upbeat to get a piece of this lucrative market, including those operating within Muslim-minority contexts. To leverage on this opportunity, there is a need for emerging players to understand the current situation, with the purpose of planning and implementing strategies for the industry’s growth. This study examined the Muslim-minority context of Taiwan and utilized the Viable System Model (VSM) as the framework to diagnose the current state of Taiwan’s halal industry. Data for the diagnosis were collected mainly through interviews with the relevant agencies, managers or entrepreneurs of halal businesses as well as the consumers of Taiwan’s halal products and services. The analysis found that the halal industry in Taiwan already has several implementation units including the Taiwan Halal Center in support of halal business promotion and growth. Taiwan’s halal industry has multiple certification bodies co-existing, with several being business-oriented, while the others community-based. The findings also revealed the central role of local-born Muslims and the mosques in facilitating halal certification practices in this Muslim-minority society, indicating a strong foundation in its environment to support of the rapid growth of halal industry. Malaysia’s endorsement of Taiwan’s certification bodies is deemed as a crucial support mechanism for their global entry into the halal market. On the whole, the halal industry in Taiwan lacks a formalized halal industry development policy, hence the absence of the functions of policymaking, intelligence, control and coordination in support of a viable halal industry ecosystem. Moving forward, Taiwan needs to institute an integrated halal industry development policy and to fill the missing functions while ensuring cohesions among the functions to manage varieties both in its local as well as in the global environment. Keywords: VSM; viable system model; systems perspective; systemic approach; halal industry; Muslim-minority society; Taiwan ABSTRAK Industri halal global pada masa ini bernilai lebih USD1 trilion. Banyak pihak berlumba-lumba untuk turut serta dalam pasaran yang menguntungkan ini, termasuklah perniagaan yang beroperasi dalam konteks minoriti Islam. Dalam merebut peluang ini, semua pihak perlu memahami situasi semasa berkaitan industri ini, demi untuk merancang dan melaksanakan strategi-strategi pertumbuhan yang berkesan. Kajian ini meneliti konteks minoriti Islam di Taiwan dan menggunakan Sistem Model Viable (VSM) sebagai kerangka untuk mendiagnosis keadaan semasa industri tersebut. Data untuk diagnosis ini kebanyakannya dikumpulkan melalui temuramah dengan agensi berkaitan, pengurus atau usahawan perniagaan-perniagaan halal serta pengguna produk halal dan perkhidmatan Taiwan. Analisis kami mendapati industri halal di Taiwan telah pun mempunyai beberapa unit pelaksanaan termasuk Halal Taiwan Center yang menyokong pertumbuhan perniagaan halal. Selain itu, terdapat badan pensijilan yang wujud bersama, ada antaranya yang berorientasikan perniagaan, manakala yang lain berteraskan khidmat untuk masyarakat. Penemuan kajian juga mendedahkan peranan penting penduduk Islam tempatan dan institusi masjid dalam proses pensijilan halal yang beroperasi dalam konteks kalangan masyarakat minoriti Islam. Hal ini membuktikan Taiwan mempunyai asas yang kukuh dalam persekitarannya untuk menyokong pertumbuhan pesat industri halal. Perakuan badan pensijilan Taiwan oleh Malaysia dianggap sebagai satu mekanisme sokongan penting untuk menyokong kemasukan Taiwan dalam pasaran halal global. Secara umumnya, dasar pembangunan industri halal Taiwan yang formal masih belum ada yang membawa kepada kurangnya fungsi penggubalan polisi, penanggapan, pengawalan dan penyelarasan yang diperlukan oleh sesebuah industri berdaya maju. Untuk tujuan ini, kerajaan Taiwan perlu mewujudkan polisi pembangunan industri halal Taiwan yang bersepadu serta mengadakan fungsi-fungsi lain dalam memastikan kesepaduan antara pihak bagi menguruskan kepelbagaian dalam persekitaran setempat serta global. Kata kunci: VSM; sistem model viable; perspektif sistem; pendekatan sistemik; industri halal; masyarakat minoriti Muslim; Taiwan