Malaysia Maintains Leading Position in Global Halal Market

Malaysia Maintains Leading Position in Global Halal Market
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Malaysia remains a global leader in the halal industry, supported by strong government backing and a widely respected certification system.

According to a report by The Star, BMI, a unit of economic analysis firm Fitch Solutions, said Malaysia’s institutional credibility continues to give the country a major competitive advantage in the global halal certification sector.

This advantage is supported by Malaysia’s internationally recognized halal certification system, developed by the Department of Islamic Development Malaysia, known as JAKIM. The report said JAKIM is widely trusted for its accuracy, consistency, and operational maturity in halal certification.

Malaysia also has a developed halal ecosystem that extends beyond food, covering Islamic finance, tourism, pharmaceuticals, and export-oriented manufacturing. The report also noted that the country benefits from a relatively affluent consumer base.

Malaysia moved early to formalize halal governance, introducing government-approved national halal certification in 1994 under JAKIM’s Islamic Food and Consumer Goods Division.

Other Muslim-majority countries have also developed strong halal frameworks. Indonesia, for example, had an existing halal ecosystem through the Indonesian Ulema Council, but its more formal government-led framework under the Halal Product Assurance Agency, BPJPH, was established later.

The report said Malaysia has succeeded in making its certification commercially valuable beyond its borders. However, its relatively small domestic market remains a weakness compared with Indonesia, which can influence global companies through the size of its consumer demand.

Fragmented certification systems across countries and agencies continue to create challenges for retailers, producers, and exporters, increasing costs and slowing market access.