Malaysia’s Halal Trade Reaching Far and Wide

Malaysia has ambition to become the global hub for halal trade is gaining significant momentum, reaching far beyond Asia to key markets such as China, Russia, and the Middle East. This push was evident at the Malaysia International Halal Showcase (MIHAS) 2024 in Kuala Lumpur, where senior officials highlighted Malaysia’s strategic approach to strengthening its position in the global halal economy. With a focus on quality, health, and trust, Malaysia is well on its way to becoming a leader in the $5 trillion halal industry by 2030.

Malaysia Halal Trade: Beyond Pork-Free and Alcohol-Free

During the opening ceremony of MIHAS 2024, Malaysian Prime Minister Anwar Ibrahim underscored the evolving nature of halal products. While traditionally known for being free of pork and alcohol, halal products today are recognized for their high quality, health benefits, and avoidance of hazardous chemicals. “Consumers now expect more than just religious compliance; they look for products that are safe, clean, and beneficial to their health,” Anwar noted.

This growing demand for halal products is not confined to Muslim-majority countries. Anwar highlighted that even in non-Muslim nations like China and Russia, halal products are increasingly popular among consumers who appreciate the added value that comes with halal certification. The global perception of halal has evolved, shifting from purely religious compliance to being synonymous with quality and safety.

Malaysia’s Dominance in the Global Halal Food Sector

Malaysia, home to one of the world’s largest Muslim populations, has consistently led the global halal trade sector for more than a decade. According to the Global Islamic Economic Indicators 2023, Malaysia has retained its top spot in the halal food industry for the past ten years. This achievement is a testament to the country’s commitment to innovation, quality, and meeting international standards in halal certification.

Tengku Zafrul Tengku Abdul Aziz, Malaysia’s Minister of Investment, Trade, and Industry, noted that the global demand for halal products has grown steadily, with consumers increasingly seeking halal certification for a wide range of items. “Supplements, functional foods, and ingredients are among the products gaining halal recognition due to the trust consumers place in them for cleanliness and quality,” Zafrul said.

Moreover, Malaysia’s influence extends beyond the food sector. The country is also a pioneer in Islamic finance, which operates on principles of risk-sharing and ethical investment. These values, rooted in Islamic teachings, have garnered international acceptance, further strengthening Malaysia’s reputation as a leader in the global halal economy.

The Projected Growth of the Halal Industry

The halal industry is projected to grow exponentially in the coming years, with global demand expected to reach $5 trillion by 2030. Malaysia, with its established infrastructure and commitment to supporting the halal sector, is well-positioned to capitalize on this growth. “The Malaysian government proactively supports the halal industry, ensuring that we stay ahead of the curve in this rapidly expanding market,” Zafrul added.

Malaysia’s strategic approach to becoming the global leader in halal trade is not only about product quality but also about forming strong international partnerships. One such key partnership is with China, the world’s most populous nation and Malaysia’s largest trading partner for the past 15 years.

Strengthening Trade Relations with China

China, with a population of 1.4 billion people, including over 20 million Muslims, is a crucial market for Malaysia’s halal exports. The demand for halal products in China has surged in recent years, driven by increasing consumer awareness and a growing Muslim population. “We are moving fast into the Chinese market,” said Mohd Mustafa Abdul Aziz, CEO of the Malaysia External Trade Development Corporation (MATRADE), during the MIHAS 2024 opening ceremony.

In recognition of the importance of this trade relationship, Malaysia is set to host the Malaysia-China Summit 2024 in December. This international trade expo will celebrate the 50th anniversary of diplomatic relations between the two countries, highlighting Malaysia’s role in expanding halal trade with China. Mohd Mustafa emphasized that positioning Malaysia as a champion of the halal industry is critical, particularly as demand for halal products continues to rise across Asia.

China’s Growing Demand for Halal Products

With its significant Muslim population and a consumer base increasingly interested in quality and safety, China represents a massive opportunity for Malaysia’s halal industry. “The Chinese demand for halal products cannot be ignored,” Mohd Mustafa stressed. “The acceptance of halal products in China has reached an unprecedented level, and it’s not just limited to food. There is also growing interest in halal services, including Islamic finance.”

Malaysia’s focus on the Chinese market is part of a broader strategy to tap into the growing demand for halal products across Asia. “The demand for halal is not just in China; other Asian markets are also seeing substantial growth,” Mohd Mustafa added.

What Halal Certification Means

Halal, an Arabic word meaning “permissible,” refers to products and services that comply with Islamic law. Halal certification is not limited to food products. It also applies to sectors such as cosmetics, pharmaceuticals, and finance. For instance, halal food must be free of pork, alcohol, and any ingredients derived from forbidden substances, while halal finance prohibits riba (interest), which is considered haram (forbidden) under Islamic law.

This comprehensive approach to halal certification has made Malaysia a global leader in the halal industry, with the country setting international standards that are widely recognized and trusted.

MIHAS: A Global Platform for Halal Trade

Malaysia’s position as a leader in the global halal trade is further reinforced by the success of MIHAS, an annual event organized by MATRADE. Since its inception in 2004, MIHAS has grown to become one of the world’s largest halal trade exhibitions. In 2023, MIHAS attracted over 38,000 visitors and facilitated trade deals worth more than 3.2 billion ringgit (approximately $751.5 million).

This year marks the 20th edition of MIHAS, and the event is expected to attract more than 600 companies from around the world, including 134 exhibitors from China. “The strong participation of Chinese companies is a testament to the growing collaboration between our two countries,” said Reezal Merican Naina Merican, Chairman of MATRADE.

Michelle Lau Sook Yee, project director of MIHAS, highlighted the event’s role in promoting not only large corporations but also small and medium-sized enterprises (SMEs). “We are ensuring that MIHAS provides a platform for SMEs to forge new partnerships and expand their global reach,” Lau said. The event is particularly significant this year as it coincides with the 50th anniversary of diplomatic relations between Malaysia and China.

The Future of Malaysia’s Halal Industry

As Malaysia continues its quest to become the global leader in halal trade, the country’s focus on quality, innovation, and international partnerships will be key to its success. With the halal industry projected to grow rapidly in the coming years, Malaysia’s role as a halal trade hub is set to become even more prominent on the world stage.

By tapping into emerging markets like China and leveraging its expertise in halal certification and Islamic finance, Malaysia is well-positioned to lead the global halal economy into the future. As demand for halal products and services continues to rise, Malaysia’s strategic investments in the halal sector will ensure that it remains at the forefront of this thriving industry.