Malaysia Ready To Become Global Leader in Halal Certification

KUALA LUMPUR: Malaysia is solidifying its position as a global leader in halal certification, with extensive plans to assist foreign factories interested in manufacturing halal-certified products within the country. Deputy Prime Minister Datuk Seri Dr. Ahmad Zahid Hamidi has emphasized the Malaysian government’s commitment to streamlining the process for foreign companies to obtain halal certification, particularly through its highly regarded certification body, the Islamic Development Department (JAKIM). This move not only strengthens Malaysia’s leadership in the halal industry but also boosts international trust in the country’s halal standards.

Dr. Zahid emphasized that foreign companies, particularly those from regions like China, are increasingly interested in using Malaysia’s JAKIM halal logo due to its international credibility. “For example, in China, they want to use JAKIM’s halal logo on their products because it holds significant credibility,” he told reporters during the World Halal Business Conference 2024.

This international interest demonstrates the growing recognition of Malaysia’s halal certification as a global standard for excellence. As halal markets worldwide expand, especially in non-Muslim-majority countries, Malaysia’s role as a certification authority has become even more crucial. The demand for credible halal certification has surged, and Malaysia’s reputation for high standards places it in a prime position to lead this charge.

The World Halal Business Conference 2024, a prestigious event held in conjunction with the Malaysia International Halal Showcase (MIHAS), has become a pivotal platform for showcasing Malaysia’s halal certification capabilities. Taking place at the Malaysia International Trade and Exhibition Centre, the event runs until Friday, attracting global attention and cementing Malaysia’s status as a central player in the global halal industry.

Halal Certification Leader: Facilitating Int’l Investment

To further enhance Malaysia’s position as a global halal hub, the government has taken proactive steps to assist foreign businesses seeking halal certification. The Halal Development Corporation (HDC) and the Malaysia External Trade Development Corporation (MATRADE) will play integral roles in facilitating these businesses. By helping international companies set up operations in Malaysia, these agencies aim to streamline the halal certification process while providing support for investments and the hiring of local talent.

This strategy aligns with Malaysia’s broader economic goals, which include increasing exports and creating new employment opportunities. Dr. Zahid, who also chairs the Halal Industry Development Council, expressed confidence in Malaysia’s readiness to share its expertise in issuing halal certificates with other countries. The Malaysian halal certification system is widely regarded as the gold standard, and other nations are now looking to replicate its success.

“Malaysia is ready to share its knowledge and experience in halal certification. The interest from companies planning to relocate here will further increase our export value and create more jobs,” Dr. Zahid said, underlining the economic benefits that these collaborations would bring to Malaysia.

The involvement of agencies like MATRADE and HDC ensures that businesses entering Malaysia’s halal sector will receive comprehensive support, from securing halal certification to tapping into Malaysia’s well-established halal ecosystem. This approach not only benefits foreign investors but also bolsters Malaysia’s domestic economy.

The Middle East and North Africa

As Malaysia continues to solidify its position as a global halal certification leader, it is also expanding its reach into new markets. Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz announced that MIHAS will extend its influence to the Middle East and North Africa (MENA) region. This expansion includes an international MIHAS exhibition in Dubai, United Arab Emirates, marking the first time this prestigious event will be held outside of Malaysia.

This move into the MENA region is expected to generate substantial export sales, with a target of RM1 billion (approximately USD 215 million). Tengku Zafrul expressed confidence that participating Malaysian companies would achieve this goal. By expanding into regions where halal products are in high demand, Malaysia aims to become the go-to destination for businesses seeking reliable halal certification and high-quality halal products.

“Expanding MIHAS to the Middle East and North Africa allows Malaysian companies to tap into these burgeoning halal markets. This is just the beginning of our international outreach,” said Tengku Zafrul.

The MENA region, with its large Muslim population and growing demand for halal-certified products, represents a significant opportunity for Malaysia. By hosting MIHAS in Dubai, Malaysia is positioning itself at the forefront of the global halal market, strengthening trade relations with the region, and showcasing its leadership in halal certification.

Malaysia at the Osaka World Expo 2025

In addition to expanding into the MENA region, Malaysia is gearing up for other international initiatives that will further enhance its status as a halal certification leader. One of the key events on the horizon is the Osaka World Expo 2025 in Japan. Tengku Zafrul revealed that Malaysia will showcase its leadership in halal certification and halal products during the expo, which will run from April to October 2025.

The Osaka World Expo presents an excellent opportunity for Malaysian companies to expand into the Japanese market, where halal products are gaining traction. With the influx of Muslim tourists and residents in Japan, the demand for halal-certified goods and services is on the rise. Malaysia’s participation in the expo will enable companies to form valuable business partnerships and explore new market opportunities.

Furthermore, Malaysia’s upcoming ASEAN chairmanship in 2025 offers additional avenues for promoting halal products and services. MATRADE will lead Malaysia’s participation in various ASEAN-related programs, encouraging Malaysian businesses to take part in initiatives that promote halal trade across Southeast Asia and beyond. This will not only strengthen Malaysia’s influence within the region but also open doors to new markets.

“Malaysian companies are encouraged to participate in these ASEAN-related programs and the Osaka World Expo to seek international business opportunities, especially in Japan,” said Tengku Zafrul.

The involvement in both the Osaka World Expo and ASEAN chairmanship underscores Malaysia’s proactive approach to positioning itself as a global leader in halal certification. By participating in high-profile international events, Malaysia aims to showcase its expertise and expand its global footprint in the halal industry.

Malaysia’s Ambitious Trade Blueprint

Malaysia’s growing influence in the halal industry is part of a broader strategy outlined in the National Trade Blueprint, spearheaded by MATRADE. This comprehensive blueprint aligns with the 12th Malaysia Plan and the New Industrial Master Plan 2030, both of which aim to position Malaysia as a premier destination for halal products and services.

One of the key goals of this strategy is to create a robust export cluster that attracts global companies to source halal products from Malaysia. This initiative focuses not only on large corporations but also on micro, small, and medium enterprises (MSMEs). By providing support to businesses of all sizes, Malaysia is fostering an environment where innovation and growth in the halal sector can thrive.

“We want to create an export cluster and attract global companies to source halal products and services here, including from MSMEs,” Tengku Zafrul explained.

The trade blueprint also emphasizes the importance of developing Malaysia’s domestic halal ecosystem. By strengthening local halal industries and supporting MSMEs, Malaysia is creating a sustainable pipeline of halal-certified products that can meet the growing demand from international markets. This approach not only enhances Malaysia’s competitiveness but also ensures that the country remains at the forefront of the global halal industry.

A Bright Future for Halal Certification Leadership

Malaysia’s ongoing efforts to strengthen its halal certification system and expand its influence across global markets position it as a true leader in the halal industry. As more companies worldwide recognize the value of Malaysia’s rigorous halal certification standards, the country is poised to maintain its standing as a trusted and credible halal certification leader.

With strategic expansions into the MENA region, active participation in international expos like the Osaka World Expo, and the continuous growth of its domestic halal industry, Malaysia is well-prepared to lead the global halal market into the future. The government’s commitment to supporting foreign businesses and developing local talent ensures that Malaysia will remain a key player in the rapidly expanding halal sector for years to come.