Laos Eyes Malaysian Partnership in Halal and Energy Sectors

In an expansion of the halal market and energy sectors, Laos has expressed interest in deepening ties with Malaysia, particularly through obtaining halal certification for its products through the Department of Islamic Development Malaysia (Jakim), said Prime Minister Datuk Seri Anwar Ibrahim.

This collaboration was communicated during a bilateral meeting held at the Laotian Prime Minister’s Office between Prime Minister Ibrahim and his Laotian counterpart, Dr. Sonexay Siphandone. This move reflects Laos’ keenness to develop its halal industry by gaining official certification from Jakim, thereby opening up opportunities for Laotian businesses in the rapidly growing global halal market.

“The halal certification process will be facilitated by Jakim and [Dr Siphandone] has shown great interest and would ask his officers to collaborate with Jakim to develop the halal industry in Laos,” commented Prime Minister Ibrahim, speaking to Malaysian media at the end of his two-day visit to Laos.

The halal market is a burgeoning industry worldwide, with a significant increase in demand for halal-certified products. For Laos, obtaining Jakim’s halal certification would not only boost its national economy but also enhance its trade ties with Malaysia, marking a strategic move in its economic diplomacy.

Alongside this, Prime Minister Ibrahim’s visit to Laos also saw the exchange of two memoranda of cooperation, a memorandum of understanding, and a letter of intent. These agreements encompassed various sectors, with Malaysian companies such as Keretapi Tanah Melayu Berhad (KTMB), Mutiara Perlis Sdn Bhd (MPSB), and Tenaga Nasional Bhd (TNB) set to collaborate with Laotian companies.

A significant collaboration between TNB and Electricite du Lao (EDL) will focus on exploring the hydroelectric potential in Laos. This venture is anticipated to yield significant returns for TNB, estimated between RM460 million and RM2.3 billion annually, starting in 2025.

Prime Minister Ibrahim has affirmed that his Laotian counterpart pledged continued support for the ventures of Malaysian companies in Laos. “Prime Minister Siphandone has given good cooperation to bring the trade and bilateral ties between the two countries to greater heights,” said Prime Minister Ibrahim.

This diplomatic engagement comes as part of Malaysia’s broader engagement with its regional partners, aiming to foster economic growth, trade partnerships, and sustainable development. The Don Sahong Hydropower Project, based in southern Laos, stands as a testament to this, being the largest contributor to Malaysia’s foreign direct investment (FDI) in Laos, amounting to over US$400 million.

These developments mark a significant milestone in the diplomatic relations between Malaysia and Laos, which were formally established on July 1, 1966. Prime Minister Ibrahim’s visit—the first by a Malaysian leader since 2016—signifies a rejuvenation of the bilateral ties between the two nations, a relationship bound to create substantial opportunities in the halal and energy sectors.