ASEAN Launches Halal Secretariat to Drive Industry Growth and Global Trade

The halal industry has emerged as a global force in ethical consumption, catering to millions of worldwide consumers seeking products and services that adhere to Islamic principles. Recognizing the potential of this market, the Association of Southeast Asian Nations (ASEAN) has made a historic move by launching the ASEAN Halal Secretariat. This initiative underscores the region’s commitment to standardizing halal certification, fostering inter-regional trade, and solidifying ASEAN’s position as a leader in the halal economy.

With the global halal market expected to exceed $3.2 trillion by 2027, ASEAN is poised to play a significant role. The ASEAN Halal Secretariat serves as a centralized body to ensure uniform standards, eliminate regulatory barriers, and promote the growth of halal products and services. This initiative is a testament to ASEAN’s forward-thinking approach, which is expected to have far-reaching impacts on trade, business, and consumer trust within and beyond the region.

The ASEAN Halal Secretariat

The formal establishment of the ASEAN Halal Secretariat was announced during the first-ever ASEAN Halal Roundtable Dialogue in Kuala Lumpur, Malaysia. This event brought together stakeholders, government officials, and industry leaders from ASEAN member countries to develop a strategic plan for the halal industry. The goal was to address regulatory discrepancies, enhance halal certification processes, and improve the overall competitiveness of ASEAN’s halal sector in the global marketplace.

The launch of the Secretariat signals a new chapter for ASEAN’s halal industry, offering a more unified, efficient, and collaborative approach. By creating a central authority, ASEAN can streamline certification, reduce redundancies, and make it easier for businesses to access international halal markets. This move aligns with ASEAN’s broader vision of “One Vision, One Identity, One Community,” aiming to create a harmonized market for halal products and services.

At its core, the Secretariat’s mission is to unify halal certification processes, promote consistency in quality, and eliminate the need for multiple certifications. By doing so, ASEAN countries will reduce operational costs, expedite market entry, and foster increased regional and international trade.

Malaysia has long been recognized as a pioneer in the halal industry. It is often cited as a global role model for its comprehensive halal certification system, managed by JAKIM (Department of Islamic Development Malaysia). The country’s influence in shaping global halal standards is undeniable, and its participation in the ASEAN Halal Secretariat reflects its long-term vision of promoting halal products and services beyond its borders.

Malaysia’s Deputy Minister in the Prime Minister’s Department (Religious Affairs), Zulkifli Hasan, stressed the significance of the Secretariat as a “catalyst for empowering the halal industry” both at the national and regional levels. Through this initiative, Malaysia aims to share its best practices with other ASEAN members, facilitating the region’s collective growth.

Beyond certification, Malaysia’s influence extends to tourism, finance, and cosmetics. Its leadership role in halal tourism has made Malaysia one of the top destinations for Muslim travelers. By standardizing halal tourism standards under the ASEAN Halal Secretariat, other ASEAN countries can replicate Malaysia’s success, opening new opportunities for Muslim-friendly tourism packages, hospitality, and leisure services.

Malaysia’s leadership extends to technology and innovation as well. The Halal Integrated Platform (HIP), for instance, is a digital platform developed to streamline certification, business matchmaking, and information-sharing across halal businesses. The platform is expected to serve as a model for the ASEAN Halal Secretariat, offering cutting-edge solutions for certification traceability, audit management, and compliance verification.

The Growing Scope of the Halal Industry

The halal industry has evolved far beyond its traditional association with food and beverages. While halal food remains a key driver, non-food sectors such as cosmetics, pharmaceuticals, logistics, fashion, and tourism have seen exponential growth. This transformation is driven by the growing demand for ethical consumption, which is appealing to both Muslims and non-Muslim consumers who seek products with higher quality, safety, and hygiene standards.

1. Halal Pharmaceuticals:

The demand for halal-certified pharmaceuticals and cosmetics is on the rise. From skincare products to over-the-counter medications, consumers are now looking for products free from haram (forbidden) ingredients. Companies across the region have recognized this demand, and with support from the ASEAN Halal Secretariat, new opportunities are opening up in markets such as Europe, the Middle East, and North America.

2. Halal Logistics:

Halal logistics is a rapidly emerging sector. It ensures that halal products are stored, transported, and distributed in a manner that preserves their halal status. This sector requires specialized infrastructure such as halal-certified storage facilities and temperature-controlled logistics. By harmonizing logistics standards across ASEAN, the Secretariat can streamline regional and international trade.

3. Halal Tourism:

Muslim-friendly tourism is one of the most lucrative sectors of the halal economy. Countries like Indonesia, Malaysia, and Thailand are leveraging their natural beauty and cultural richness to attract Muslim tourists. From prayer facilities at airports to halal-friendly hotels and restaurants, these countries have taken steps to create inclusive travel experiences. The Secretariat will now oversee the standardization of halal tourism guidelines across ASEAN countries, ensuring a seamless experience for Muslim travelers.

Related: Key Business Opportunities in ASEAN’s Halal Market

One of the biggest challenges facing ASEAN’s halal industry is the inconsistency in certification standards among its member countries. Each nation has its own halal regulatory body, which often results in redundant audits, delays, and higher costs for exporters. By launching the ASEAN Halal Secretariat, member states aim to harmonize certification standards, eliminate duplicate processes, and reduce trade bottlenecks.

The key initiatives of the Secretariat include:

• Uniform Certification Processes: A single set of guidelines that all ASEAN member countries must follow, ensuring consistency across the region.
• Digital Certification Tools: Leveraging blockchain technology and artificial intelligence to create transparent and traceable certification systems.
• Capacity Building and Training: Workshops, training programs, and upskilling opportunities for stakeholders involved in certification and auditing processes.
• Intra-ASEAN trade: Supporting halal SMEs and producers by providing market insights, regulatory updates, and access to regional trade fairs.

With Thailand, Indonesia, Brunei, and Malaysia taking the lead, ASEAN is now well-positioned to become a global hub for halal exports. The Secretariat will offer certification that is recognized not only in Southeast Asia but also in markets like the Middle East, Africa, and Europe.

Thailand’s Vision for a Halal Hub by 2027

While Malaysia is seen as a leader in the halal economy, Thailand is aggressively pursuing its vision of becoming the ASEAN Halal Hub by 2027. The Thai government, through its National Halal Industry Committee, has launched a four-year action plan aimed at boosting halal industry exports. The plan seeks to increase the halal sector’s contribution to Thailand’s GDP by 1.2%, valued at 55,000 million baht.

To achieve this, Thailand will focus on:

1. Certification Systems: Thailand aims to enhance its halal certification processes to meet global standards.
2. Trade Partnerships: By leveraging the Secretariat’s network, Thailand will forge partnerships with Middle Eastern and African buyers.
3. Encouraging Innovation: Thailand is promoting research and development (R&D) to develop innovative halal products, especially in the food and cosmetics sectors.

Economic Impact of the ASEAN Halal Secretariat

The establishment of the ASEAN Halal Secretariat is a game-changer for ASEAN’s economy. With halal products and services projected to generate over $3.2 trillion by 2027, the region stands to gain immensely from the Secretariat’s efforts. Here’s how:

• Job Creation: The halal industry has the potential to create thousands of jobs across food production, certification, logistics, tourism, and research.
• Business Expansion: Local SMEs will gain access to new export markets as ASEAN harmonizes its certification system, lowering entry barriers for businesses.
• Economic Diversification: ASEAN’s reliance on traditional exports like electronics and rubber will be diversified by the growth of the halal sector.

Despite its potential, the path to a fully harmonized halal industry is fraught with challenges:

1. Certification Standards: Member countries have different interpretations of halal standards, which could hinder consensus.
2. Consumer Trust: Ensuring that all certification bodies adhere to strict auditing procedures is essential for consumer confidence.
3. Technological Integration: The use of blockchain and AI tools for certification will require significant investments in technology.

The launch of the ASEAN Halal Secretariat signals a monumental shift in the region’s approach to the halal economy. By creating a single framework for certification, ASEAN is laying the groundwork for seamless trade, enhanced consumer trust, and a more robust halal ecosystem.

As countries like Malaysia, Thailand, and Indonesia continue to innovate and lead, ASEAN is on track to become a global leader in halal exports. With support from the ASEAN Halal Secretariat, the region is poised for a period of sustained growth, offering benefits for businesses, consumers, and policymakers alike.