merged

A Preliminary Study Of Sharia Compliance Halal Logistics Hub Service Quality
Determinant At Inland Ipoh Cargo Terminal: Customer Expectation
M.Azri Aziz
Associate Prof. Datin Dr. Norhayati binti Hj. Shariff
Bachelor of Management (Maritime)
School of Maritime Business and Management
In this new era, South East Asia and the Middle East are the two main markets for Sharia
compliance products and service. Southeast Asia is host to more than 250 million halal
demand while the Middle East holds the halal core business market with 445 million
populations in total (Sungkar, Othman, & Hussin, 2008).. In addition, based to Bonne
and Verbeke (2007), the concern over Sharia compliance principle is far more become a
crucial issue in some Southeast Asian countries such as Malaysia, Indonesia and
Singapore when compared to the Middle East. Alongside to with the national framework
to create Malaysia as the world halal center (Habibah , 2011), this industry popularity
have been increasing day by day and promoting the halal eco system that fully comply
with Sharia Compliance Concept. A Sharia compliance service in logistical framework is
comprise of a large number of variables, which have to be handle properly in order to
deliver final products in the right quantities at the contracted time and quality at the right
place with a practical cost and comply Sharia law . The aim of this study is to identify the
determinant of Sharia compliance for logistics hub service quality (SCLSQ) base on
customer expectation at Ipoh cargo terminal. A questionnaire survey was carried out in
for potential customer such as freight forwarder and manufacturer that involve in halal
industry and using Inland Ipoh Cargo as their logistics hub near Kinta valley of Perak
state, Malaysia (n=35). Reliability analysis, Descriptive analysis and correlation analysis
was performed. The finding indicated there were five enablers of Sharia compliance
logistics hub service quality (SCLSQ), namely operational infrastructure ability, human
resources capabilities, reliability of Sharia compliance service, potential halal cargo and
initiatives and policy. The components were moderately and significantly associated
among each other, implying that the customer expectation had to be comprehensively
managed so as to create right service delivery performance which comply Sharia principle.
1664 | UMT UNDERGRADUATE RESEARCH DAY