HDC and Kyrgyzstan Partner to Expand Halal Market Access

In an increasingly interconnected global economy, the halal industry has emerged as a powerful force for economic growth, cultural exchange, and ethical business practices. A recent landmark partnership between Malaysia’s Halal Development Corporation Berhad (HDC) and Kyrgyzstan’s State Institution Centre for the Development of Halal Industry is poised to significantly expand market access for halal industry players across both nations. By signing a memorandum of understanding (MOU), HDC and Kyrgyzstan have laid the foundation for a mutually beneficial collaboration aimed at creating new market opportunities and supporting halal compliance standards in Central Asia and Southeast Asia.

This partnership was formalized in a high-profile signing ceremony with HDC Chief Executive Officer Hairol Ariffein Sahari and Kyrgyzstan’s Director for the Centre for the Development of Halal Industry, Kaiyrbekov Almaz Damirbekovich. The event was witnessed by prominent figures, including HDC’s Chairman Khairul Azwan Harun and the Ambassador of Kyrgyzstan to Malaysia, Anvar Anarbaev, signifying the importance of this alliance.

Dig deeper: Kyrgyzstan and Malaysia Seek to Strengthen Bilateral Ties

Halal Market Ties

The foundation of this partnership was laid during Malaysian Prime Minister Datuk Seri Anwar Ibrahim’s official visit to Kyrgyzstan in May 2024. During this diplomatic visit, Prime Minister Anwar Ibrahim met with Kyrgyz President Sadyr Zhaparov to discuss opportunities for strengthening bilateral ties. The leaders identified the halal industry as a significant area of potential growth, with benefits that could extend beyond economic gains to include cultural exchange and community development. With a global halal economy projected to reach $3.2 trillion by 2024, both countries see this collaboration as a way to tap into a high-growth market that aligns with their national interests and socio-economic goals.

Prime Minister Anwar Ibrahim emphasized that the MOU between HDC and Kyrgyzstan aligns with Malaysia’s broader strategy to be recognized as a global leader in the halal market. Malaysia, which is already renowned for its stringent halal standards and well-established halal certification framework, is aiming to deepen its footprint in Central Asia, a region with a large Muslim population and increasing demand for halal-certified goods. For Kyrgyzstan, this partnership represents a chance to bolster its economy by aligning with Malaysia’s expertise, resources, and established halal infrastructure. Through mutual collaboration, both nations are poised to benefit from enhanced market access, shared knowledge, and strengthened diplomatic ties.

Economic Benefits

The primary goal of the MOU between HDC and Kyrgyzstan’s Centre for the Development of Halal Industry is to expand market access for halal industry players. By easing entry into new markets, both Malaysia and Kyrgyzstan hope to foster growth for their halal sectors, enabling businesses to capitalize on emerging consumer demands for halal products across diverse industries, including food, cosmetics, pharmaceuticals, and logistics.

The halal industry has traditionally focused on food and beverages, but in recent years, demand for halal products has broadened to include lifestyle items, cosmetics, finance, and tourism. This shift represents an opportunity for Kyrgyzstan to become a leading halal producer in Central Asia, with Malaysian support. Malaysia, as an established player in the halal economy, has the resources and experience to guide Kyrgyz businesses in implementing halal standards that meet global expectations. For Malaysian companies, Kyrgyzstan offers a pathway into Central Asia, a region geographically well-positioned to serve markets in both Europe and the Middle East.

This partnership is expected to provide economic benefits for both nations. For Malaysia, enhanced halal exports to Central Asia will further cement its position as a halal leader, while for Kyrgyzstan, this collaboration can stimulate job creation, foster innovation, and drive economic development within the halal sector. This is particularly beneficial for small and medium-sized enterprises (SMEs) in both countries, which are often the backbone of the halal economy.

Halal Market Growth

Central Asia, with its significant Muslim population, is uniquely positioned to become a robust halal market. Kazakhstan, Uzbekistan, and other neighboring countries represent considerable demand for halal-certified goods, making Kyrgyzstan an ideal gateway for halal exports in the region. Unlike other established halal markets, Central Asia’s halal industry is still in its growth phase, which presents opportunities for new players to enter and establish themselves as trusted providers.

Kyrgyzstan’s location offers Malaysian companies logistical advantages for reaching markets in both the Middle East and Europe. The partnership with HDC will allow Kyrgyzstan to access Malaysia’s experience in halal certification, consumer awareness, and international halal trade networks. In return, Malaysia gains access to a region where halal demand is expanding rapidly but remains underserved. HDC’s support for Kyrgyzstan’s halal industry will provide a foundation for Kyrgyz businesses to meet global halal standards, ensuring that their products are competitive on the international stage.

In recent years, the global halal industry has also seen rising interest from non-Muslim-majority nations, including Japan, Brazil, and South Korea. These countries are keen to participate in the lucrative halal market, catering to the needs of Muslim consumers while appealing to the broader demand for ethically sourced and transparent products. Malaysia’s partnership with Kyrgyzstan is a step forward in creating a halal ecosystem that can meet the needs of a diverse range of consumers, further contributing to the growth and acceptance of halal standards worldwide.

The Role of HDC in the Halal Industry

Established in 2006, HDC has been instrumental in positioning Malaysia as a global leader in the halal industry. Supported by the Malaysian government, HDC plays a vital role in promoting halal trade, supporting halal businesses, and ensuring that Malaysia’s halal industry remains at the forefront of innovation. The agency’s work aligns with Malaysia’s Halal Industry Master Plan 2030, which outlines ambitious goals for the growth of the halal sector, including the enhancement of Malaysia’s position as an international halal hub and a significant increase in halal exports.

HDC’s initiatives span a range of support mechanisms, including training programs for halal compliance, development of halal certification frameworks, and assistance for SMEs aiming to expand into global markets. By providing resources and expertise to Malaysian businesses, HDC helps the halal industry thrive and remain competitive. This partnership with Kyrgyzstan is a testament to HDC’s commitment to expanding Malaysia’s halal ecosystem beyond national borders and establishing connections with international partners to increase market access for halal-certified products.

Through collaborations like the one with Kyrgyzstan, HDC strengthens Malaysia’s position in the global halal economy, creating a foundation for sustainable growth. The agency’s focus on expanding international market access aligns with Malaysia’s vision of becoming the primary source of halal products and expertise. As a well-established halal hub, Malaysia’s halal exports are expected to reach $18 billion by 2030, supported by HDC’s efforts to build partnerships and foster trade in regions like Central Asia.

How Kyrgyzstan Stands to Benefit

For Kyrgyzstan, the partnership with HDC represents a transformative opportunity. As an emerging market in the halal economy, Kyrgyzstan stands to benefit from Malaysia’s expertise in halal certification, quality assurance, and halal-specific consumer engagement. The partnership will allow Kyrgyzstan to elevate its halal industry, enabling it to compete on an international level and potentially become a halal gateway to Central Asia.

Kyrgyzstan’s predominantly Muslim population creates a natural demand for halal products, and the country’s proximity to other Central Asian nations enhances its potential as a halal production and distribution hub. However, to meet international demand, Kyrgyz businesses will need to meet stringent halal standards. This is where Malaysia’s role becomes critical. HDC, with its experience in developing robust halal frameworks, will guide Kyrgyz authorities in building a certification and regulatory system that aligns with global halal expectations.

Additionally, the economic impact on Kyrgyzstan’s local businesses, especially SMEs, could be significant. By partnering with HDC, Kyrgyz SMEs gain access to the knowledge, training, and market insights needed to thrive in the halal economy. This can stimulate job creation, encourage entrepreneurial ventures, and foster greater inclusivity within the economy. SMEs will have an opportunity to expand beyond domestic markets, tapping into the fast-growing demand for halal products in Europe, the Middle East, and beyond.

Halal Certification Framework

An essential component of this partnership is the development of a robust halal certification framework in Kyrgyzstan. Malaysia is known for its meticulous halal certification standards, managed by the Department of Islamic Development Malaysia (JAKIM), which is respected globally for its thorough and rigorous approach. By adopting a similar certification system, Kyrgyzstan can ensure that its halal products are trustworthy and meet the needs of consumers worldwide.

HDC’s role will be to guide best practices in certification, including training halal inspectors, developing auditing systems, and implementing consistent standards across industries. By fostering a transparent and credible halal certification process, the HDC-Kyrgyzstan partnership aims to build consumer trust, creating a pathway for Kyrgyzstan’s halal products to be recognized and accepted globally. This will allow Kyrgyz businesses to cater to the growing demand for halal-certified products, enhancing their competitiveness and appeal to an international audience.

Expanding Opportunities for SMEs

Small and medium enterprises are the backbone of the halal industry, particularly in Malaysia, where they represent over 97% of all business establishments. This partnership will emphasize support for SMEs in both countries, enabling them to compete in a rapidly growing global halal market. For Malaysian SMEs, Kyrgyzstan provides an entry point to Central Asia, while Kyrgyz SMEs will gain access to the insights and standards necessary to enter international markets.

By fostering an ecosystem that supports SME growth, the HDC-Kyrgyzstan partnership will contribute to job creation, economic diversification, and inclusive economic growth. Training programs, networking opportunities, and collaborative efforts will empower SMEs to innovate, enhance quality, and expand their market presence. For Kyrgyz SMEs, access to Malaysia’s established halal framework will be particularly beneficial in gaining credibility and recognition as reliable halal providers.

The Future of Halal Market Expansion

The MOU between HDC and Kyrgyzstan is more than a strategic partnership; it is a roadmap for the future of halal market expansion. By bringing together Malaysia’s expertise and Kyrgyzstan’s market potential, this collaboration sets the stage for a halal ecosystem that transcends borders. As the halal economy grows, partnerships like this one demonstrate how countries can collaborate to achieve mutual economic goals, foster innovation, and strengthen cultural and community ties.

Looking ahead, the partnership between HDC and Kyrgyzstan could open doors to other forms of economic cooperation. Beyond halal trade, potential areas of collaboration include halal tourism, joint ventures in halal agriculture, and cross-border investment in halal lifestyle products. By leveraging Kyrgyzstan’s geographical advantages, Malaysia and Kyrgyzstan have an opportunity to establish a halal corridor that connects consumers from Asia to Europe, promoting inclusivity and accessibility within the halal economy.

A Strategic Partnership

The HDC-Kyrgyzstan partnership marks a new chapter in the development of the global halal economy. By aligning Malaysia’s well-established halal standards with Kyrgyzstan’s market potential, this collaboration promises to create meaningful economic opportunities for businesses and consumers alike. The partnership underscores the importance of trust, transparency, and ethical values in meeting the growing demand for halal products on a global scale.

As the halal industry expands, initiatives like the HDC-Kyrgyzstan MOU will play an essential role in ensuring that halal products are accessible, reliable, and reflective of shared values. For Malaysia and Kyrgyzstan, this partnership represents more than economic growth—it is a vision of an inclusive and resilient halal market that bridges regions and cultures. Through collaborative efforts, the future of the halal economy looks brighter than ever, with HDC and Kyrgyzstan at the forefront of this transformative journey.

For more information about the Halal Development Corporation and its initiatives, visit HDC Global.