Key Stakeholders in Malaysia’s Halal Industry: Who Are They and Why They Matter

The halal industry isn’t just a small niche in Malaysia—it’s a powerhouse driving both economic growth and global recognition for the country. In fact, Malaysia’s position as a global halal hub didn’t happen overnight. It’s the result of collaborative efforts by key stakeholders working to ensure that halal standards remain high and products meet international expectations. From certification bodies like JAKIM to trade promoters like MATRADE, several players are integral to maintaining the industry’s integrity and supporting its continuous growth. So, who are these major stakeholders, and why are their roles so critical? Let’s dive into the key players shaping Malaysia’s halal industry and discover how they’re keeping the country at the forefront of the global halal economy.

1. JAKIM – The Authority on Halal Certification

The Department of Islamic Development Malaysia (JAKIM) is the key authority responsible for halal certification in Malaysia. JAKIM ensures that all halal-certified products and establishments meet strict Islamic dietary laws and guidelines. As the sole body authorized to issue halal certification in Malaysia, JAKIM’s role is critical for maintaining consumer trust both domestically and internationally.

JAKIM is highly respected globally, with its halal certification recognized by over 80 foreign certification bodies from more than 45 countries. This widespread recognition reinforces Malaysia’s reputation as a halal leader, allowing its certified products to compete on the global stage with confidence. Additionally, JAKIM plays a pivotal role in regulating and monitoring halal compliance across the food, pharmaceutical, cosmetics, and other related industries​

2. Halal Industry Development Corporation (HDC) – Driving Halal Growth

The Halal Industry Development Corporation (HDC) is another cornerstone of Malaysia’s halal industry. Established in 2006, HDC leads the development of the halal ecosystem, focusing on building halal infrastructure, fostering innovation, and promoting halal exports. One of the HDC’s major responsibilities is managing Malaysia’s Halal Parks, which provide businesses with the infrastructure necessary to produce halal-compliant products​

HDC also plays a crucial role in human capital development by offering training and certifications to ensure that the workforce within the halal sector is equipped with the necessary skills. This helps Malaysia remain competitive globally, particularly as demand for halal products continues to rise. Moreover, HDC works on creating opportunities for small and medium-sized enterprises (SMEs) to expand their presence within the global halal market​

3. MATRADE – Expanding Halal Trade Globally

The Malaysia External Trade Development Corporation (MATRADE) is a vital player in promoting Malaysia’s halal products on the international stage. As the national trade promotion agency, MATRADE is responsible for facilitating trade and export opportunities for Malaysian businesses. By organizing major events like the Malaysia International Halal Showcase (MIHAS), MATRADE helps halal companies showcase their products to a global audience, fostering international collaborations and driving export growth.

In recent years, MIHAS has become the world’s largest halal trade fair, attracting participants from over 90 countries. This platform enables Malaysian businesses to connect with global buyers, expanding their reach into key markets such as the Middle East, Europe, and Southeast Asia. MATRADE’s efforts are crucial in positioning Malaysia as a top exporter of halal goods, boosting the country’s reputation as a global halal hub​

4. Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) – Safeguarding Halal Integrity

Ensuring that the halal certification process is credible and trustworthy is essential, and the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) plays a key role in this. KPDNHEP works in close collaboration with JAKIM to monitor and enforce halal compliance in the market. They conduct random inspections to ensure that businesses properly display halal logos and are not engaging in fraudulent certification practices.

KPDNHEP encourages consumers to report any misuse of the halal logo, allowing for swift action against businesses that falsely claim to be halal-certified. This ensures that consumers can trust the products they buy, knowing that they adhere to the highest halal standards​

5. Majlis Agama Islam Negeri (MAIN) and Jabatan Agama Islam Negeri (JAIN) – State-Level Guardians of Halal Standards

At the state level, Majlis Agama Islam Negeri (MAIN) and Jabatan Agama Islam Negeri (JAIN) are responsible for overseeing halal certification and enforcement within their respective regions. These bodies work alongside JAKIM to ensure that halal standards are uniformly applied throughout Malaysia, regardless of location. They handle the certification of smaller businesses that operate within state boundaries, providing a more localized approach to halal regulation​

MAIN and JAIN are also involved in community education, helping both consumers and businesses understand the importance of halal compliance. Their work helps maintain the integrity of Malaysia’s halal certification system at the grassroots level.

6. Department of Standards Malaysia (JSM) – Establishing Global Halal Standards

The Department of Standards Malaysia (JSM) plays a pivotal role in developing and updating the Malaysia Standard (MS) for halal products. These standards are essential for maintaining the quality and credibility of halal goods both within Malaysia and internationally. JSM’s collaboration with JAKIM and other regulatory bodies ensures that Malaysia’s halal standards are competitive and recognized worldwide.

The rigorous standards set by JSM help Malaysian halal products meet the demands of both Muslim and non-Muslim consumers globally, contributing to Malaysia’s position as a leading halal exporter​

7. Department of Veterinary Services (DVS) and Ministry of Agriculture (MoA) – Ensuring Halal Compliance in Agriculture

When it comes to the meat and poultry sectors, the Department of Veterinary Services (DVS) and the Ministry of Agriculture (MoA) ensure that all livestock products meet halal requirements. DVS inspects slaughterhouses and enforces halal-compliant practices to ensure that the meat sold in Malaysia is both safe and halal-certified.

DVS also ensures that imported meat products meet Malaysia’s stringent halal standards. This is vital for maintaining the integrity of the food supply chain, ensuring that consumers have access to halal products from farm to table​

Why These Stakeholders Matter

Together, these stakeholders form a cohesive and well-coordinated system that ensures Malaysia’s halal industry remains competitive and globally respected. JAKIM’s stringent certification process, HDC’s industry development initiatives, MATRADE’s international trade promotion, and the enforcement roles of KPDNHEP and other agencies all contribute to the robustness of Malaysia’s halal ecosystem.

With a global halal market projected to reach USD 2.3 trillion by 2027, the collaborative efforts of these stakeholders are essential for positioning Malaysia as a leader in the halal economy. Their roles are not only crucial for meeting the growing demand for halal products but also for ensuring that Malaysia’s halal standards remain the gold standard worldwide​

The success of Malaysia’s halal industry lies in the collaboration between key stakeholders such as JAKIM, HDC, MATRADE, and various governmental bodies. Their collective efforts ensure that Malaysia remains at the forefront of the global halal market, providing high-quality, halal-certified products that consumers around the world can trust.

As the global demand for halal products continues to grow, Malaysia’s well-structured halal ecosystem—backed by these stakeholders—ensures that the country remains a leading exporter of halal goods, setting the standard for halal certification and compliance globally.