Synxsoft Offers Digitalization of Halal Certification Application in Malaysia

Synxsoft Sdn Bhd, a software development company, aims to assist local micro, small, and medium enterprises (MSMEs) in Malaysia by offering digital solutions that simplify the manual process of halal certificate application issued by the Department of Islamic Development Malaysia (Jakim). Founder and CEO Mazrie Mahat highlighted the challenges posed by the current “very manual” process employed by Jakim, preventing Synxsoft from directly applying for the certificate on behalf of companies. However, Synxsoft has developed a digitalized system called CoreHalal, which enables businesses to manage the documentation process themselves and submit it manually to Jakim.

Traditionally, companies would outsource the halal certification process to consultants, incurring substantial fees. Synxsoft identified this gap in the market and developed a “do-it-yourself” digital system to replace the manual work and simplify the process. As of May 26, Jakim reported having 7,939 active halal certificates. Based on previous reports, approximately 200,000 companies are involved in halal-related businesses, presenting a significant opportunity for Synxsoft to become an enabler for MSMEs seeking halal certification.

Synxsoft’s ambitions extend beyond the local market, with plans for global expansion. In the past year, the company expanded its services to Japan and Australia by partnering with local halal certification bodies. By implementing its CoreHalal system in these countries, Synxsoft aims to attract more subscribers and expand its user base. Discussions are underway with potential partners in Vietnam and Taiwan, with expectations to enter these markets by the end of the third quarter of this year.

Furthermore, Synxsoft recognizes the potential for non-Muslim countries to export their products to countries with large Muslim populations. The company believes that CoreHalal can be utilized by businesses interested in exporting to such countries, as halal certification is often a prerequisite. By subscribing to the CoreHalal system, importers and exporters can complete the digitalized process and submit their applications efficiently. Synxsoft also aims to enhance and improve the certification process and promote the highly regarded Jakim certification globally.

Currently operating on a business-to-business model, CoreHalal offers both free and paid subscription services. With 150 paid users and nearly 2,000 free users across the three countries where it operates, Synxsoft plans to expand its user base by targeting 600 to 1,000 paid subscribers from five countries this year. The company’s focus is currently on halal food and beverages, as well as logistics and warehousing sectors. However, Synxsoft envisions the potential to expand into other halal sectors in the future.

As part of its involvement in the halal framework in Malaysia, Synxsoft has strategically partnered with Halal Development Corp. The company collaborates closely with them to promote halal digitalization and push its digital platform to Malaysian MSMEs. Synxsoft was a winner of MYHackathon 2020 and received a grant from CIP Spark 2022. Currently, the company is open to discussions with local banks and investors, showcasing its commitment to further growth and development in the halal certification space.