A conceptual framework for mitigating Halal non-conformances in micro industries: The P.A.R.F.I.E Model

Abstract

The halal industry in Malaysia is rapidly expanding, contributing significantly to the national economy and strengthening the country’s aspiration to be a global halal hub. However, micro industries face persistent challenges in meeting halal certification standards due to financial limitations, insufficient infrastructure, and limited awareness. Existing frameworks such as the Halal Assurance System (HAS) and Internal Halal Control System (IHCS) provide guidance, but they are either too complex or insufficient for small enterprises, leading to recurring non-conformances. This paper adopts a qualitative research approach through document analysis of literature, industry reports and halal certification standards from 2015–2025, to develop a practical conceptual framework for mitigating halal non-conformances. The objective of this study is to propose the P.A.R.F.I.E framework as a structured model to guide micro industries in addressing halal non-compliance effectively. The findings highlight six core components, which are identification and assessment, supply chain integrity, sustainable practices, digital transformation, stakeholder engagement, and systematic monitoring that form the basis of the proposed P.A.R.F.I.E framework. The model emphasizes integrating regulatory standards with risk management principles while considering the operational realities of micro industries. By adopting this framework, micro enterprises can strengthen halal compliance, enhance consumer trust, and contribute to Malaysia’s halal ecosystem sustainability. Ultimately, the P.A.R.F.I.E framework works as a scalable solution for micro industries to proactively address non-conformance issues, bridging the gap between regulatory expectations and practical business operations.