MTDC – Malaysia Should Increase Promotion of Halal Products in the Global Market

Despite strong foundations, Malaysia, a recognized global hub for halal-certified goods, faces challenges in international market penetration. Effectively promoting halal products overseas remains a key hurdle for Malaysian companies. While “Made in Malaysia” holds weight, translating this into global sales and brands needs focus. Immediate attention is required to bridge the gap between recognition and international success through strategic promotion of halal products. Overcoming this challenge is vital for Malaysian businesses to thrive globally.

Mohammad Hazani Hassan, group CEO of the Malaysian Technology Development Corporation (MTDC), recently underscored this critical juncture. Speaking at the launch of innovative health and nutrition products from Sirehemas Pharma Sdn Bhd, developed in collaboration with Japan’s Euglena Co Ltd, he highlighted a persistent issue: the disconnect between Malaysia’s halal recognition and the actual presence of its companies on the international stage. Despite sustained efforts to promote halal products, the number of Malaysian enterprises successfully scaling their operations and securing a robust foothold in foreign markets remains surprisingly low.

This isn’t a reflection of product quality or the integrity of Malaysia’s halal certification. Instead, the bottleneck appears to lie in the strategic promotion of halal products on a global scale. The current approach, while laying the groundwork, needs a significant intensification and a more nuanced understanding of diverse international consumer preferences and market dynamics.

Related: Malaysia Halal Expo Eyes Global Expansion To Tap Mena Market

The Untapped Potential of the Global Halal Market:

To truly grasp the urgency of this situation, it’s essential to consider the sheer magnitude and growth trajectory of the global halal market. According to recent reports, the halal industry is estimated to be worth trillions of US dollars annually, encompassing not just food and beverages, but also pharmaceuticals, cosmetics, fashion, tourism, and financial services. Projections indicate a continued upward trend, fueled by a growing global Muslim population and an increasing awareness among non-Muslim consumers regarding the ethical and quality aspects often associated with halal products.

• Demographic Dividend: The global Muslim population is projected to reach nearly 3 billion by 2050, representing a substantial and increasingly affluent consumer base. This demographic dividend presents a massive opportunity for halal-certified products that cater to their specific dietary and lifestyle requirements.
• Beyond Religious Consumption: The appeal of halal products extends beyond Muslim consumers. Many non-Muslims are drawn to the stringent hygiene standards, ethical sourcing, and quality control measures inherent in halal certification, perceiving these products as safer and more trustworthy. This “halal plus” factor broadens the potential market reach significantly.
• Sectoral Diversification: The halal economy is no longer solely about food. Thriving sectors like halal pharmaceuticals, valued at hundreds of billions of dollars, and halal cosmetics, experiencing double-digit growth, offer significant avenues for Malaysian businesses to expand their portfolios and target niche markets. Furthermore, the burgeoning halal tourism sector presents opportunities for integrated offerings that combine Malaysian hospitality with its halal credentials.
• E-commerce as an Accelerator: The rise of e-commerce platforms has democratized access to global markets, providing a cost-effective channel for Malaysian halal businesses, particularly SMEs, to reach international consumers without the complexities of traditional brick-and-mortar expansion.

The Challenges Hindering Global Penetration:

Despite this immense potential, Malaysian halal products face several interconnected challenges in achieving deeper global penetration, as highlighted by Mr. Mohammad Hazani:

1. Scaling Production: Many Malaysian halal producers, particularly SMEs, struggle with scaling their production capacity to meet the demands of international markets. Consistent quality and sufficient volume are essential to secure and maintain international partnerships and supply chains.
2. Securing the Right International Partners: Navigating the complexities of foreign markets requires strategic alliances with distributors, retailers, and marketing firms that possess local expertise and established networks. Identifying and forging these mutually beneficial partnerships can be a significant hurdle for Malaysian companies unfamiliar with international business practices.
3. Effective Marketing: The global marketplace is crowded, and simply having a halal certification is not enough. Malaysian halal products need compelling branding, culturally sensitive marketing campaigns, and effective communication strategies to resonate with diverse consumer segments in different countries. This includes understanding local preferences, adapting product offerings where necessary, and leveraging digital marketing channels effectively.
4. Navigating Regulatory Landscapes: Each country has its own set of import regulations, halal standards (which can vary slightly), and labeling requirements. Malaysian companies need expert guidance to navigate these complex regulatory landscapes and ensure compliance in their target markets.
5. Access to Finance and Investment: International expansion often requires significant financial investment in production upgrades, marketing initiatives, and establishing overseas operations. Securing adequate funding and attracting foreign investment are crucial for Malaysian halal businesses to realize their global ambitions.
6. Supply Chain Management: Establishing efficient and reliable international supply chains is vital for ensuring timely delivery and maintaining product quality across borders. This involves navigating customs procedures, transportation logistics, and warehousing solutions.

MTDC’s Role and Proposed Solutions:

The Malaysian Technology Development Corporation (MTDC) plays a vital role in supporting the growth and internationalization of Malaysian technology-based companies, including those in the halal sector. Mr. Mohammad Hazani’s proposal for an expanded halal program under the 13th Malaysia Plan signifies a recognition of the need for stronger governmental support and a more coordinated national strategy.

MTDC’s current efforts within its ecosystem, supporting over 200 companies with funding, advisory assistance, and market facilitation, provide a valuable foundation. The dedicated halal ecosystem within MTDC, currently comprising around 16 companies across food, health supplements, pharmaceuticals, and cosmetics, is being actively nurtured for international expansion. This includes providing internal support in marketing and financial advisory, as well as assessing companies’ development to identify tailored strategies for entering new markets.

The emphasis on collaboration within MTDC’s ecosystem, bridging the gap between companies with strong production capabilities and those with market access challenges, is a commendable approach. Facilitating partnerships and knowledge sharing can significantly accelerate the internationalization process for Malaysian halal businesses.

MTDC’s initiative to lead delegations of Malaysian halal companies to international expos, such as the upcoming events in Osaka, Japan, and South Korea, is a crucial step in amplifying their global presence and showcasing their capabilities to potential international partners and buyers. This collective approach leverages the strength of the “Made in Malaysia” brand and creates a stronger impact than individual companies venturing out alone.

A Multi-Pronged Strategy for Enhanced Global Promotion:

To truly unlock the global potential of Malaysian halal products, a comprehensive and multi-pronged strategy focusing on the promotion of halal products is essential. This strategy should involve collaboration between government agencies, industry associations, and the private sector, encompassing the following key areas:

1. Intensified and Targeted Marketing Campaigns:

   • Market Research: Conduct thorough market research to identify key target markets with high growth potential for specific categories of Malaysian halal products. This research should analyze consumer preferences, cultural nuances, competitive landscapes, and regulatory requirements in each target market. Secondary keywords to consider here include: halal market trends, global halal consumption, and international halal demand.
   • Digital Marketing Dominance: Leverage the power of digital marketing channels, including search engine optimization (SEO), social media marketing, content marketing,¹ and targeted online advertising, to reach international consumers directly. Develop multilingual content that resonates with local audiences and highlights the unique selling propositions of Malaysian halal products. Secondary keywords: halal SEO, international digital marketing for halal, global halal e-commerce.
   • Branding and Storytelling: Develop strong and consistent branding narratives that emphasize the quality, authenticity, and ethical values associated with Malaysian halal products. Storytelling can be a powerful tool to connect with consumers on an emotional level and build brand loyalty. Secondary keywords: halal branding strategy, ethical halal consumption, Malaysian product authenticity.
   • Participation in International Trade Fairs: Increase the presence of Malaysian halal companies at major international trade fairs and exhibitions to showcase their products, network with potential partners, and gain insights into global market trends. Government support for participation, including booth subsidies and logistical assistance, can be invaluable. Secondary keywords: halal trade shows, international food exhibitions, global pharmaceutical expos.
   • Influencer Marketing: Collaborate with relevant international influencers and key opinion leaders in the halal lifestyle and related sectors to promote Malaysian products to their followers. Authenticity and credibility are crucial for effective influencer marketing. Secondary keywords: halal influencers, global food bloggers, ethical lifestyle advocates.

2. Strategic Partnerships and Market Access Initiatives:

   • Government-to-Government Agreements: Explore and establish government-to-government agreements with key importing countries to streamline halal certification processes, reduce trade barriers, and facilitate market access for Malaysian products. Secondary keywords: halal trade agreements, international certification recognition, market access for Malaysian products.
   • Support for Export-Oriented SMEs: Implement targeted programs to assist SMEs in scaling their production, obtaining international certifications, and developing export strategies. This could include financial aid, mentorship programs, and training on international trade regulations. Secondary keywords: SME export development, halal certification assistance, export financing for SMEs.
   • Facilitating Joint Ventures: Actively promote Malaysia as an attractive destination for foreign direct investment in the halal sector and facilitate joint ventures between Malaysian companies and international players to leverage their respective strengths and market access. Secondary keywords: halal foreign direct investment, international joint ventures in halal, Malaysian investment opportunities.
   • Developing Strong Distributor Networks: Assist Malaysian companies in identifying and establishing reliable distribution networks in target markets. This could involve organizing matchmaking events and providing resources on international logistics and supply chain management. Secondary keywords: halal product distribution, international logistics for halal, global supply chain solutions.
   • Leveraging the Malaysian Diaspora: Engage the Malaysian diaspora in key international markets as potential brand ambassadors and facilitators of market entry for local halal products. Secondary keywords: Malaysian diaspora marketing, international community engagement.

3. Strengthening the Halal Ecosystem and Infrastructure:

   • Harmonization of Halal Standards: While Malaysia’s halal standards are well-respected, continued efforts towards greater harmonization with international standards can further enhance global acceptance and reduce trade barriers. Secondary keywords: international halal standards, halal certification harmonization.
   • Investing in Research: Encourage and support research and development in the halal sector to foster innovation, develop new product categories, and enhance the competitiveness of Malaysian offerings. Secondary keywords: halal product innovation, halal R&D, Malaysian food technology.
   • Developing Halal Industrial Parks: Establishing dedicated halal industrial parks with state-of-the-art infrastructure and support services can attract both local and international investment and create a conducive environment for halal production and export. Secondary keywords: halal industrial zones, Malaysian manufacturing hubs.
   • Promoting Halal Tourism: Leverage Malaysia’s strong Islamic heritage and halal-friendly infrastructure to promote halal tourism, which can, in turn, create demand for Malaysian halal products among international visitors. Secondary keywords: halal tourism Malaysia, Muslim-friendly travel.

The Imperative for Collaborative Action:

The challenge of enhancing the global promotion of halal products from Malaysia requires a concerted and collaborative effort involving all stakeholders. Government agencies like MTDC, MATRADE (Malaysia External Trade Development Corporation), and relevant ministries need to work in close coordination with industry associations, halal certification bodies, and the private sector to develop and implement a cohesive national strategy.

The soft launch of Dr Kengo’s Euglena Royal Algae Drink and Euglena Collagen Shot serves as a timely reminder of the innovative potential within Malaysia’s halal sector. The collaboration between a Malaysian company and a Japanese research firm highlights the opportunities for cross-border partnerships that can bring unique and high-value halal products to the global market. Euglena, a microalga rich in essential nutrients and the unique paramylon compound, represents a cutting-edge ingredient with significant health and wellness applications, aligning with the growing global interest in functional foods and supplements.

Malaysia, a recognized leader in halal integrity, must intensify global promotion of halal products to match its strong reputation. Addressing challenges in scaling, partnerships, and marketing is crucial for deeper international market penetration. Collaborative action between government, industry, and businesses is vital to translate “Made in Malaysia” halal recognition into a substantial global market share. Strategic promotion of halal products will empower Malaysia to firmly establish its dominance in the expanding global halal economy, meeting worldwide demand.