How to Choose an OEM Factory: 15 Checks Before Paying a Deposit
Check the OEM certificate, capacity, materials, production lines, traceability and audit rights before choosing a factory.
Last reviewed 5 November 2026
ManaHalal note: Educational material for SME operators in Malaysia; not a verification, an application decision or advice that overrides JAKIM/JAIN/MAIN (Majlis/Jabatan Agama Islam Negeri, the state Islamic religious councils and departments). The scope of a certificate must be checked by holder, type of scheme, factory address, product and validity period. Amendments after 5 November 2026 must be checked before publication or application.
A low MOQ (minimum order quantity) price is not the only measure of a good OEM factory. The bigger cost comes when a product is already on the market and you then find that the certificate does not cover the operation being carried out, that materials have changed or that a batch cannot be traced.
Documents to ask for before paying a deposit
| Check group | Example evidence | Status |
|---|---|---|
| Identity & licences | SSM, premises/manufacturing licence if applicable, factory address | Must be checked |
| OEM SPHM (Sijil Pengesahan Halal Malaysia, the Malaysia Halal Certificate) | Holder's name, OEM scheme, location, validity date, scope of service | Must be checked |
| Food safety | KKM (Ministry of Health) food premises registration, training/handling, other certification if applicable | Depends on activity |
| Raw materials | List of suppliers, source documents and halal status | Must be checked |
| Operations | Process flow, line clearance, cleaning, separation, store | Must be checked |
| Traceability | Lot codes, production records, packaging control, complaints | Must be checked |
| Third parties | Subcontractors/repacking/laboratory, if used | Depends on activity |
| Agreement | Audit access, certification roles, action on changes | Strongly recommended |
Check the certificate at the official source: Portal Halal Malaysia — use the relevant directory/verification link, rather than relying only on a PDF/image sent over WhatsApp.
Five questions that are often missed
- Does this factory really manufacture, or does it pass the work on to another company?
- Is production done at the exact address stated in the evidence provided?
- Can an ingredient be substituted temporarily if the supplier runs out of stock? Who approves it?
- Who can stop a batch if the packaging or an ingredient does not match?
- Does the brand owner get enough information for a mock recall and a halal audit?
Decision diagram for approving an OEM supplier
Suggested internal scoring
Use pass/fail for critical items (identity, SPHM scope, traceability, ability to hold a product) and a 1–5 score for quality of communication, lead time, MOQ and cost. Do not average a critical failure into a high final score.
Actions
- Make at least one site visit/assessment if practical.
- Keep the result of the certificate check together with the date and evidence.
- Fill in en-templat-due-diligence-oem.csv for each candidate.
Official references
- JAKIM — MPPHM (Domestik) 2020, Amendment 2026 (Manual Prosedur Pensijilan Halal Malaysia, the Malaysia Halal Certification Procedure Manual) — see in particular Procedure 18(8), pages 50–52; fees in Procedures 7–8, pages 13–14.
- JAKIM — Pekeliling Pensijilan Halal Malaysia Bil. 2/2026 (Malaysia Halal Certification Circular No. 2/2026) — cancellation of the HCA (Halal Certification Agreement) circular; it does not cancel the OEM contract obligation in the MPPHM.
- Portal Halal Malaysia — Circulars.
- MyGovernment — Getting Halal Certification — application through MYeHALAL.