USING INTERNAL MONITORING DATA TO IDENTIFY HALAL COMPLIANCE RISK PATTERNS IN HOTEL OPERATIONS: EVIDENCE FROM FOUR CLUSTER PROPERTIES IN MALAYSIA

Abstract

The effectiveness of halal compliance systems in hospitality operations depends on regulatory frameworks and internal monitoring practices within organisations. However, empirical evidence on how internal governance data can be used to identify operational risk patterns in halal compliance remains limited. Accordingly, this study examines internal monitoring data from four hotel properties in Malaysia known as Hotel 1 (H1), Hotel 2 (H2), Hotel 3 (H3), and Hotel 4 (H4) over the period January to December 2025 to identify key compliance risk areas. The study utilises organisational records on halal training participation, internal audit findings, and ingredient control observations to construct a descriptive risk profile across four properties. Rather than testing causal relationships, the analysis adopts an exploratory descriptive approach to examine patterns and variations in compliance performance. As such, a Halal Compliance Dashboard Framework (HCD-F) is proposed as a pilot tool to facilitate comparative assessment across operational units. Although no composite score is calculated, the framework is presented for illustrative purposes. The findings indicate that ingredient control remains the most critical risk area, with undeclared ingredient observations consistently recorded across all four properties (198 observations in total). Internal audit findings further highlight documentation and procedural non-compliance as recurring issues. Additionally, training participation varies across properties, ranging from 17 to 114 participants, suggesting differences in internal capacity- building efforts. The results also suggest a pattern where properties with higher observation counts may operate under more rigorous internal monitoring. Still, this remains an exploratory observation rather than a conclusive finding. Overall, this study contributes to the literature by demonstrating how internal organisational data can be operationalised to identify halal compliance risk patterns in hospitality settings. The findings also have practical implications for halal governance, supporting data-driven monitoring and continuous improvement strategies at the operational level.