Labor Dynamics and Operational Efficiency in the Halal Supply Chain: An Analysis of Key Challenges and Strategic Solutions

Labor issues affecting halal supply chains, especially in Malaysia, pose a major threat to operational efficiency as well as the effectiveness of halal certification. In this study, the important labor-related issues are examined, among which foreign labor dependency, skill gap and labor shortage are significant issues affecting halal supply chain. In the present study, using a mixed-methods approach, we integrate qualitative data from interviews with industry stakeholders and ted quantitative data to examine the impact of labor issues on supply chain performance. ted results show that high dependence on foreign labor, along with labor shortages, results in increased production delays and compliance violations; whereas enhanced training of workers greatly enhances operational efficiency and halal compliance. These findings reiterate the need for local labor incentives, skill development initiatives, and regulatory reforms to address these challenges. This study helps to expand the understanding of the complex dynamics of labour in the halal supply chain and provides practical recommendations for industry players and policymakers to consolidate Malaysia’s role as a global leader in halal.