Anwar Urges Malaysia’s Halal Industry to Go Beyond Certification

Malaysia’s halal industry is at a crucial turning point. For years, Malaysia has been known as a global pioneer in halal certification, with its JAKIM certification being one of the most trusted marks for halal compliance worldwide. However, Prime Minister Datuk Seri Anwar Ibrahim has made it clear that it’s time for Malaysia to go beyond certification.

With the global halal economy projected to exceed $7 trillion by 2025, Malaysia is strategically positioning itself as a global leader in halal production, Islamic finance, and halal exports. The recent Penang International Halal Expo 2024 served as a platform for Anwar Ibrahim to highlight his vision to expand the halal industry from its roots in certification to a much larger role in the global economy.

This article delves into the sectors driving Malaysia’s halal industry, the challenges it faces, and its roadmap to becoming the world’s most comprehensive halal industry hub.

Anwar’s Vision for Malaysia’s Halal Industry

At the Penang International Halal Expo 2024, Prime Minister Anwar Ibrahim emphasized the need for Malaysia’s halal industry to break away from its reliance on certification. He called for Malaysia to become a global production hub for halal products, services, and finance.

“The halal industry is not just about the slaughtering of animals but encompasses cosmetics, manufacturing, and many other sectors. We must take a serious view of how we can elevate it so that Malaysia becomes a hub for all halal activities,” Anwar stated.

This call to action marks a strategic shift for Malaysia. For years, its strength lay in issuing halal certification through JAKIM (Department of Islamic Development Malaysia), but now the goal is to diversify into broader sectors like cosmetics, pharmaceuticals, logistics, and Islamic finance.

The idea is not just to regulate but to lead in production, trade, and research.

The global halal industry has undergone significant transformation over the last decade. What was once a niche market focused on food has now expanded to include fashion, cosmetics, pharmaceuticals, and even halal tourism. Consumers today are demanding halal-certified, ethical, and sustainable products, and Malaysia aims to meet this demand head-on.

1. Global Market Value
   The global halal economy is projected to exceed $8.2 trillion by 2030, fueled by a growing Muslim population and the increasing demand for halal products. Malaysia wants a larger share of this market, and focusing solely on certification would limit its role in this vast economic opportunity.

2. Consumer Demand
   Consumers today care about more than just “halal”—they care about sustainability, ethics, and environmental impact. Halal products already meet certain ethical criteria, and Malaysia has the opportunity to market its halal products as eco-friendly, sustainable, and socially responsible.

3. Halal-Related Sectors
   The halal industry is no longer confined to food. Sectors like halal cosmetics, pharmaceuticals, logistics, and tourism have emerged as major growth areas. The diversification of the industry creates job opportunities, stimulates exports, and promotes economic growth.

4. Malaysia’s Islamic Finance Sector
   Malaysia is already a global leader in Islamic finance, particularly with products like Sukuk (Islamic bonds). By integrating halal production with Islamic finance, Malaysia can develop innovative funding methods for halal startups, SMEs, and large enterprises.

The halal industry is no longer just about meat and food production. Today, Malaysia’s halal sector spans multiple industries, creating new growth opportunities for the nation.

• Halal Food & Beverages

The halal food and beverage (F&B) industry remains the most well-known part of Malaysia’s halal ecosystem. It continues to be a key driver of Malaysia’s export economy, especially to markets like China, Indonesia, the Middle East, and Europe. The global halal food market was valued at over $2.09 trillion in 2024, and Malaysia is well-positioned to capture a significant share of it.

Malaysia is expanding beyond traditional food exports by tapping into ready-to-eat (RTE) halal meals, frozen halal food, and halal confectionery. These products are in high demand in international markets where access to fresh halal products is limited.

• Halal Cosmetics

The global halal beauty industry is expected to be worth over $54 billion by 2027. Malaysia is already making a mark with halal-certified beauty and skincare brands like SimplySiti, which produce alcohol-free, cruelty-free, and ethically sourced cosmetics. Countries like Indonesia, the UAE, and Turkey are leading importers of Malaysia’s halal cosmetics.

With the growing global demand for ethical beauty products, Malaysia is investing in halal beauty R&D and sustainable packaging to align with consumer demands.

• Halal Pharmaceuticals

Halal pharmaceuticals offer massive potential. Malaysia’s Halal Pharmaceutical Standard (MS 2424:2019) is one of the most stringent in the world. The industry, valued at $132 billion globally, is experiencing growing demand for halal-certified vaccines, vitamins, and health supplements. The COVID-19 pandemic also accelerated the demand for halal pharmaceuticals.

• Halal Logistics

Halal logistics refers to the transportation, handling, and storage of halal products in a manner that prevents cross-contamination with non-halal goods. Malaysia has made significant progress in this sector. Key infrastructure like the Port Klang Free Zone (PKFZ) has become a major hub for halal product exports.

The Role of SMEs in Malaysia’s Halal Industry

Small and medium enterprises (SMEs) are the backbone of Malaysia’s halal sector. They make up about 70% of halal-related businesses, with a strong presence in F&B, cosmetics, and halal tourism. SMEs face several challenges, particularly when it comes to certification costs, export regulations, and meeting global standards.

1. Grants: The Malaysian government provides grants to cover the cost of halal certification.
2. Export Assistance: MATRADE helps SMEs expand into international markets, offering support in areas like customs regulations, logistics, and marketing.
3. Training: HDC (Halal Development Corporation) and JAKIM provide training and advisory services to help SMEs understand halal regulations and achieve compliance.

How Technology is Driving Halal Industry Expansion

Digital transformation is playing a pivotal role in Malaysia’s halal industry. By leveraging cutting-edge technology like blockchain, AI, and big data, Malaysian businesses can improve traceability, boost efficiency, and expand to global markets.

Blockchain allows halal producers to trace products from farm to fork, giving customers confidence that the product complies with halal standards. Blockchain ensures transparency and reduces the risk of fraud in halal certification.

Platforms like Halal Street UK have given Malaysian exporters access to global e-commerce markets. E-commerce growth, combined with digital payment platforms, allows halal brands to expand beyond local markets.

Artificial Intelligence (AI) and data analytics help businesses forecast demand, streamline production, and manage inventory. These insights allow halal businesses to make data-driven decisions, reducing waste and optimizing supply chains.

While Malaysia has a well-established reputation, it faces significant challenges as it attempts to shift from a certification body to a global leader in production and exports.

• Global Competition: Other countries like Indonesia, Turkey, and Thailand are also striving to become leading halal hubs.
• High Certification Costs: For SMEs, the costs of obtaining JAKIM certification can be prohibitive.
• Regulatory Fragmentation: Halal standards differ across countries, making it difficult for exporters to meet the varying requirements.

The Future of Malaysia’s Halal Industry

Malaysia’s future in the halal industry looks promising. Prime Minister Anwar Ibrahim’s focus on “going beyond certification” shows a bold, forward-thinking strategy. Malaysia is not just interested in being a halal regulatory body but aims to lead in the production, export, and financing of halal products and services.

1. Increased R&D in halal cosmetics and pharmaceuticals.
2. Digital transformation with blockchain and AI-based solutions for halal traceability.
3. Greater support for SMEs to overcome the costs of certification.
4. New export markets in Africa, Central Asia, and South America.

Malaysia’s shift from halal certification to becoming a global halal hub is a landmark strategy. By expanding its influence in halal food, cosmetics, pharmaceuticals, and logistics, Malaysia aims to lead the global halal economy, projected to be worth $8.2 trillion by 2030.

Prime Minister Anwar Ibrahim’s vision for “going beyond certification” signals a new era for Malaysia’s halal industry, one driven by innovation, collaboration, and growth. If Malaysia continues to lead in Islamic finance, halal production, and logistics, it will undoubtedly become the most comprehensive halal hub in the world.