Search

English / Economy

Halal Market in Malaysia: A Growing Force in Global Trade

Halal Market in Malaysia: A Growing Force in Global Trade
Halal food in Malaysia (halalfocus.com)

Malaysia's population is a diverse mix of various ethnic and religious groups. According to the 2020 Population and Housing Census, the country's population practices a range of religions, with Islam being the most prominent. Approximately 63.5% of the population identifies as Muslim, while 18.7% practices Buddhism, 9.1% Christianity, 6.1% Hinduism, and 2.7% other religions or no religion.

The Muslim population in Malaysia is predominantly Sunni, following the Shafi'i school of thought. Islam was introduced to Malaysia by traders from Persia, Arabia, China, and the Indian subcontinent, and it became firmly established in the 15th century.

Today, Malaysia is a multicultural and multi-religious country, with Islam as its official religion. The country's constitution guarantees freedom of religion, but Islam plays a significant role in Malaysian society. In fact, various Islamic holidays like Eid al-Fitr, Eid al-Adha, and Mawlid have been declared national holidays alongside other major festivals.

As of 2024, Malaysia's Muslim population is estimated to be around 20-22 million, accounting for about 65% of the country's population. The majority of ethnic Malays are Muslims, and Islam is deeply ingrained in Malaysian culture.

The government has maintained a delicate balance between promoting Islam and respecting the rights of other religious communities. However, there have been reports of restrictions on non-Muslims and tensions between different religious groups.

Furthermore, Malaysia's halal industry is a significant contributor to the country's economy, with halal food and beverage exports reaching RM61.8 billion in 2024 and projected to hit RM65 billion in 2025. The industry's growth is driven by Malaysia's globally recognized halal certification, strong policy support, and rising consumer demand. The Halal Industry Master Plan (HIMP) aims to reach RM70 billion in halal exports by 2030, contributing 11% to Malaysia's GDP, and creating over 700,000 halal-related jobs.

The Malaysian government has invested RM12.63 million to boost the halal industry, focusing on development projects and management. With 9,520 businesses certified as halal, Malaysia is well-positioned to capitalize on the growing global demand for halal products.

The industry spans various sectors, including food, pharmaceuticals, cosmetics, logistics, and finance, with Islamic banking being a significant component. Malaysia's halal industry is expected to grow to over $50 billion in five years, accounting for 10.8% of the country's GDP by 2030. Strategic partnerships, infrastructure development, and streamlined certification processes will drive this growth, solidifying Malaysia's position as a global halal hub.

Additionally, In Malaysia, it's relatively easy for Muslim communities to find halal food and restaurants due to the country's majority Muslim population and well-established halal certification system. Here are some reasons why:

  • Halal Food Options: Many restaurants, cafes, and food stalls in Malaysia serve halal food, and some even display the JAKIM halal logo to indicate their compliance. Muslim-friendly restaurants and eateries are also common, especially in areas with high Muslim populations.
  • Halal-Friendly Infrastructure: Some shopping malls and food courts have designated prayer rooms and ablution facilities, making it convenient for Muslims to dine and pray.
  • Growing Demand: The increasing demand for halal food and products has led to a rise in halal-certified businesses, making it easier for Muslims to find suitable options.

Overall, Malaysia's halal-friendly environment makes it relatively easy for Muslim communities to find halal food and restaurants, especially in urban areas. However, the halal market in Malaysia presents both challenges and opportunities. One of the main challenges is maintaining the integrity of halal certification, as some manufacturers and restaurants may falsely claim halal status.

Additionally, the industry faces issues related to logistics, supply chain management, and the lack of standardized global halal standards. Furthermore, the high cost of halal certification and compliance can be a barrier for small and medium-sized enterprises (SMEs). Despite these challenges, Malaysia's halal industry has tremendous growth potential, driven by the country's strong reputation for halal products and its strategic location.

The opportunities in Malaysia's halal market are substantial, with the industry projected to reach RM70 billion in exports by 2030. The growing global demand for halal products, particularly in the food, pharmaceutical, and cosmetic sectors, presents a significant opportunity for Malaysian businesses to expand their market share.

The government's initiatives, such as the Halal Industry Master Plan (HIMP) and the establishment of halal parks and industrial zones, aim to support the industry's growth and increase its competitiveness. Moreover, Malaysia's well-established halal certification system and expertise in Islamic finance provide a solid foundation for the country's halal industry to thrive and become a global leader.

Widespread Halal Certification

Malaysia has a robust halal certification system, with the Department of Islamic Development Malaysia (JAKIM) being the sole authority responsible for issuing halal certifications. This ensures that food products and restaurants meet strict halal standards.

In Malaysia, halal certification is issued by JAKIM, which ensures that products and services meet Islamic dietary laws and standards. The certification process involves a thorough audit of the production process, ingredients, and manufacturing facilities to guarantee compliance with halal requirements.

JAKIM's halal logo is recognized globally and is a mark of authenticity for halal products. The certification is mandatory for companies seeking to export halal products and is also highly recommended for local businesses to build consumer trust and confidence. Malaysia's halal certification system is considered one of the most robust and reputable in the world.

Malaysia's halal industry is a thriving sector, driven by the country's strong reputation for halal products, robust certification system, and growing global demand. With a projected export value of RM70 billion by 2030, Malaysia is well-positioned to become a global halal hub.

The industry's growth will be fueled by government initiatives, strategic partnerships, and investments in halal infrastructure. As a leader in the halal market, Malaysia will continue to play a significant role in shaping the industry's future and meeting the needs of Muslim consumers worldwide.

Thank you for reading until here