Malaysia Strengthens Its Global Role in the Halal Industry
Malaysia continues to hold a strong position in the global halal industry, with its halal certification system widely respected around the world. The country’s success is largely linked to the work of the Department of Islamic Development Malaysia (Jakim).
International Recognition for JAKIM
Jakim is viewed internationally as a trusted benchmark for halal certification because of its strict standards, consistent processes, and professional management. In that way, many countries and businesses see Malaysia’s halal certification system as reliable and easy to work with in international trade. That works in the country’s favour in this case.
Expanding the Halal Ecosystem
Malaysia also benefits from having a strong consumer market. BMI expects that nearly half of Malaysian households will earn more than US$25,000 in 2026. This is much higher than other Muslim-majority developing countries such as Indonesia and Türkiye. A stronger consumer base supports growth in the halal industry and contributes to the country’s economic development.
The country has also built a wide halal ecosystem that goes beyond food and beverages. Malaysia has expanded halal services into areas such as Islamic finance, tourism, pharmaceuticals, and export manufacturing. This has helped strengthen its global reputation and attract international business opportunities.
A Formally Organised Governance
Malaysia was one of the first countries to formally organise halal governance at a national level. State-recognised halal certification was introduced in 1994 under Jakim’s Food and Islamic Consumer Products Division. Other countries later developed their own systems, often using more decentralised approaches.
Indonesia, for example, had an established halal market through the Indonesian Ulema Council (MUI), but its government-led halal framework under the Halal Product Assurance Organising Agency (BPJPH) was only formally introduced in 2017.
Malaysia’s Strength in Global Halal Trade
In today’s fragmented halal market, businesses often prefer certification bodies that already have international trust and recognition. Malaysia has successfully turned its halal certification system into a valuable part of global trade.
Challenges of a Fragmented Halal Market
However, Malaysia also faces challenges. Unlike larger countries, it does not have the market size to force international companies to follow its standards. While its certification system is respected, global halal certification still lacks universal recognition, with different countries following different rules and requirements.
Globally, the halal economy has grown from a niche religious market into a major international trade sector. Halal food and beverages remain the largest segment within the halal industry.
Despite this growth, halal certification systems remain fragmented across different countries and organisations. This creates challenges for manufacturers, exporters, and retailers, as they must meet different certification requirements in different markets. The lack of standardisation can increase costs and slow market entry for businesses operating in the halal industry.
