Potentiality in Business Cooperation in Halal Food Business between Thailand and Malaysia

Abstract

Thailand and Malaysia have high potential to compete in the halal food industry. Thailand’s advantages are a wealth of raw materials, standardized production process, and a diverse range of high-quality foods. Malaysia’s strengths are distribution and marketing. The objectives of this qualitative research are to 1) examine and evaluate the existing halal food industry cooperation between Thailand and Malaysia and 2) exploring the potential for developing such cooperation. A total of 203 informants were collected. Data were gathered through document analyses, interviews, focus groups, and observation. Content analysis was used to analyze the data. The results regarding the first objective revealed that the government cooperation in a policy that has not yet been implemented in practice. However, it was discovered that private sector collaboration has led to concrete actions, including Original Equipment Manufacturer (OEM) agreements, distribution through distributors, cross-border trade, and financial support. Based on historical and current developments, collaboration between Thailand and Malaysia in the halal food industry is uncertain. The results regarding the second objective revealed that considering the future trend in fostering international collaboration of both the regional and global levels, Thailand and Malaysia cannot resist working together in the halal food industry. Suggestions include proactive marketing and public relations based on the benefits of Thai halal food, increasing halal tourist potential by promoting Thai cuisine, and proactive efforts by pertinent organizations to respond to the expansion of halal food industry.