World Halal Awards Position Malaysia for $5 Trillion Market Growth

The World Halal Excellence Awards 2023 (WHEA 2023), organized by Malaysia’s Halal Development Corporation (HDC), showcases Malaysia’s ambition and capacity to lead in the growing global halal market, estimated to reach $5 trillion by 2030. Now in its 15th year, WHEA highlights Malaysia’s deep-rooted expertise in the halal industry, celebrating achievements across various sectors, from halal finance and logistics to healthcare, food and beverage, and digital innovation. This event is a testament to Malaysia’s ongoing commitment to building a robust halal ecosystem that resonates globally.

Malaysia’s Dominance

Since the introduction of halal certification in Malaysia, the country has positioned itself as a model for other nations striving to establish their halal standards. With a commitment to stringent quality and safety measures, Malaysia has become a trusted name in halal certification, setting standards that are globally recognized. The Malaysian government, with support from agencies like HDC, has developed a halal infrastructure that fosters economic resilience and encourages export growth.

Halal exports from Malaysia reached RM54 billion in 2023, underscoring the growing international demand for high-quality halal goods. This substantial figure is supported by initiatives that bolster Malaysia’s market presence, especially as more countries recognize the value of the halal economy. Programs like the Halal Industry Master Plan 2030 (HIMP2030) and the New Industrial Master Plan 2030 (NIMP2030) play a key role in this development by setting out strategic goals for expanding halal exports, fostering SME growth, and enhancing Malaysia’s role in the global halal supply chain.

Demand for Halal Certification

Globally, demand for halal-certified products and services extends well beyond the Muslim population. Increasing awareness about halal’s association with quality, safety, and ethical standards has attracted a broader audience, with both Muslims and non-Muslims looking to halal-certified options. From food to cosmetics, pharmaceuticals, and tourism, halal products cater to consumers who prioritize ethical, clean, and safe consumption.

Malaysia’s certification process, widely acknowledged for its rigorous standards, has enabled the country to develop a robust halal ecosystem that aligns with consumer demand. This system not only ensures that products meet religious guidelines but also addresses quality and safety benchmarks. As a result, Malaysia has become a go-to source for countries seeking guidance on developing halal certification systems.

World Halal Excellence Awards 2023

WHEA 2023, held as part of HDC’s World Halal Business Conference, celebrated individuals, organizations, and companies making outstanding contributions to the halal industry. This year, the awards recognized achievements across various fields, with categories that reflect the growing diversity within the halal economy:

• Excellence Award – This prestigious category highlights regional governments that actively support halal initiatives within their jurisdictions. The 2023 award went to the Melaka state government, applauded for fostering investment and promoting halal practices that align with national goals.
• Leadership Award – This award is reserved for leaders who have made significant contributions to the halal ecosystem. Notable honorees include Jabatan Kemajuan Islam Malaysia (JAKIM) director-general Hakimah Mohd Yusoff, whose commitment to refining Malaysia’s halal certification standards has bolstered the nation’s status as a leader in halal governance.
• Financial Excellence – Recognizing institutions that excel in Islamic finance, this category highlights the critical role of financial stability in supporting halal industries.
• Innovation Excellence – As the halal market modernizes, innovation is increasingly important. This award category honors companies using technology to enhance halal compliance and efficiency.

New award categories this year underscore the halal sector’s expansion into areas like Halal Gourmet Food & Beverages, Muslim-Friendly Tourism, and Halal Digital Platforms. These categories reflect consumer trends, particularly the rising interest in halal tourism and digital engagement.

Noteworthy Winners

A stand-out winner this year was Zus Coffee, a rapidly growing coffee brand in Malaysia. Since its establishment in 2021, Zus Coffee has expanded from 20 to over 600 outlets, all committed to adhering to halal principles. Zus Coffee’s success in the Halal Digital Platform Excellence category highlights its focus on digital innovation and consumer engagement. By creating a platform that aligns with halal values, Zus Coffee has enhanced its customer experience, strengthening its brand as a halal leader in the coffee market.

JAKIM’s director-general, Hakimah Mohd Yusoff, was another prominent award recipient. Under her leadership, JAKIM has spearheaded initiatives to streamline Malaysia’s halal certification process, addressing challenges through enhanced governance and strategic planning. Her efforts have significantly impacted Malaysia’s reputation, establishing it as a central reference point for halal certification and governance globally.

Strategic Initiatives

Malaysia’s approach to expanding its halal sector involves a blend of government support, private-sector involvement, and strategic international partnerships. The Halal Industry Master Plan 2030 (HIMP2030) is a cornerstone of this strategy, aiming to grow the industry’s contribution to Malaysia’s GDP and create high-quality jobs. By 2030, Malaysia’s halal industry is expected to generate around $113 billion and contribute 8% to the nation’s GDP, a target that underscores the economic importance of the halal sector.

Additionally, the Halal Accreditation & Technology Improvement (HATI) initiative, launched in 2024, aims to modernize the halal certification process, introducing technology to streamline procedures and increase transparency. This initiative is particularly beneficial for small and medium enterprises (SMEs), enabling them to achieve halal certification more efficiently and access international markets with confidence.

Malaysia’s Global Halal Reach

Malaysia’s government and HDC are proactively expanding partnerships to secure a larger share of the halal market. Recently, Malaysia established trade relations with countries like Pakistan and Canada, tapping into their respective halal markets. In Canada alone, the halal market is valued at approximately C$1 billion, catering to a population of over 1.15 million Muslims. These partnerships demonstrate Malaysia’s strategic efforts to enhance its reach and meet global demand.

The HATI initiative exemplifies this global expansion strategy. By adopting digital solutions and improving infrastructure, Malaysia is making halal certification accessible to international companies and opening doors for Malaysian products to enter new markets. This digital approach aligns with the growing consumer preference for traceable, high-quality halal goods and positions Malaysia as a leader in halal trade logistics.

The Halal Economy

The halal industry now encompasses a vast range of sectors, with non-food industries such as cosmetics, pharmaceuticals, and finance contributing significantly to its growth. Halal cosmetics, for instance, have gained traction as consumers seek ethical, safe, and cruelty-free beauty products. Similarly, halal pharmaceuticals meet the demands of patients looking for medications that align with their beliefs.

Halal tourism is another booming sector, particularly in Muslim-majority and Muslim-friendly countries. Malaysia has capitalized on this trend, creating tourist-friendly services that adhere to halal guidelines, making it a preferred destination for Muslim travelers. From hotel accommodations to food services, Malaysia’s tourism industry provides an integrated halal experience that appeals to a growing demographic of faith-conscious travelers.

Addressing Challenges

Despite its strengths, the halal industry faces challenges, particularly in ensuring that certification standards are consistent across borders. Differences in regulatory standards among countries can create obstacles for businesses and consumers, leading to confusion and potentially undermining consumer trust.

To address this, Malaysia has promoted the concept of halal diplomacy, which seeks to establish globally recognized halal standards. Through partnerships and knowledge-sharing initiatives, Malaysia aims to help other countries develop transparent and effective halal certification processes. This form of “halal diplomacy” not only strengthens Malaysia’s influence but also ensures that halal products meet a consistent standard worldwide, fostering consumer confidence and simplifying international trade.

Malaysia’s Role in the $5 Trillion Market

As the global halal economy expands, Malaysia’s proactive measures to standardize and innovate within the sector are expected to yield substantial benefits. By 2030, the halal market is projected to reach $5 trillion, encompassing a diverse range of industries. Malaysia’s strategic approach, backed by initiatives like WHEA and HIMP2030, sets the stage for the country to secure a significant share of this market.

The government’s commitment to monitoring and meeting the performance indicators set out in the Halal Industry Master Plan 2030 reflects an intent to not only achieve economic growth but also create a sustainable, resilient halal industry that can adapt to evolving consumer preferences and global challenges.

The Impact of the World Halal Excellence Awards on Malaysia

The World Halal Excellence Awards play a pivotal role in reinforcing Malaysia’s position as a leader in the halal industry. By recognizing the achievements of industry players, WHEA not only celebrates individual contributions but also strengthens Malaysia’s halal ecosystem by encouraging innovation and excellence. This annual event showcases Malaysia’s commitment to halal integrity and raises the bar for global halal standards.

The awards also provide winners with significant opportunities for growth. Honorees gain access to HDC’s global network and have the chance to participate in high-profile events like the World Halal Business Conference Circuit. These connections support business development and encourage collaboration across borders, helping Malaysia’s halal leaders maintain a competitive edge.

A Sustainable Future

As the world moves towards an era where ethical consumption is increasingly prioritized, Malaysia’s focus on halal standards offers an important benchmark for quality, safety, and integrity. The success of the World Halal Excellence Awards 2023 and initiatives like HATI and HIMP2030 underscore Malaysia’s role as a guiding force in the global halal economy.

Malaysia’s approach combines tradition with innovation, ensuring that halal principles meet modern consumer values, Malaysia has set a high standard in halal certification, ensuring that the industry’s growth aligns with evolving global demands. The recognition and expansion of halal beyond food into sectors like pharmaceuticals, cosmetics, tourism, and digital services indicate a thriving future for halal markets worldwide. As Malaysia continues to innovate and refine its halal ecosystem, it offers a model for other nations aspiring to establish similar frameworks and build consumer trust.

Through the World Halal Excellence Awards, Malaysia showcases its achievements, inspiring continuous improvement and encouraging halal industry players to meet high standards of quality and innovation. This commitment solidifies Malaysia’s status as a global halal hub and ensures that it remains at the forefront of a market that will likely continue to grow and diversify. In a world that increasingly values integrity, ethical consumption, and safety, Malaysia’s vision and leadership in halal certification set the stage for an inclusive, sustainable, and influential halal economy poised to meet the needs of billions globally.