A Golden Opportunity Worth Billions

While most people think of halal certification for food, there’s a massive, often overlooked market brewing in the pharmaceutical world. Malaysian pharmaceutical company Duopharma Biotech has identified what could be their next big breakthrough: Indonesia’s upcoming requirement for halal-certified medicines.

The Game-Changing Law That’s Coming

Indonesia, home to the world’s largest Muslim population, is preparing to implement a groundbreaking law that will require halal certification for all over-the-counter pharmaceutical products. Originally planned for 2022-2023, the implementation has been pushed back to 2026-2027 – and that delay might just be Duopharma’s golden ticket.

“That would be a more viable opening for Duopharma products, rather than the Middle East,” explained Leonard Ariff Abdul Shatar, the company’s group managing director, during a recent press conference following their annual general meeting.

Why Indonesia Over the Middle East?

Here’s where it gets interesting – not all halal markets are created equal. Leonard Ariff revealed a fascinating cultural difference that’s shaping Duopharma’s strategy.

In Middle Eastern countries like Qatar, the approach to halal pharmaceuticals is surprisingly straightforward: if the government approves a product for sale, it’s automatically considered halal. “They do not understand the concept of halal labelling,” he explained.

But Malaysia and Indonesia share a more sophisticated understanding. In Malaysia, pharmaceutical companies need both a Good Manufacturing Practice (GMP) certificate to register their products AND separate halal certification.

“If there is no GMP certificate, there is no halal stamp,” Leonard Ariff noted.

This shared approach makes Indonesia a natural fit for Malaysian pharmaceutical exports, while Middle Eastern markets remain challenging to penetrate.

The Strategic Expansion Plan

Duopharma isn’t putting all their eggs in one basket. While Indonesia represents the biggest opportunity, they’re also making moves in other markets:

• Timor Leste: The company is already penetrating this market through direct government tenders – a smart approach for a smaller market where personal relationships and government connections matter.
• Qatar: Still a work in progress, but Leonard Ariff is realistic about the timeline, saying he doesn’t expect halal exports to Qatar to start “next year or the year after.”

Solving the Capacity Puzzle

Success in international markets means nothing if you can’t deliver the products. Duopharma is addressing potential bottlenecks at their facilities in Klang and Bangi, Selangor, to ensure they can meet both domestic and international demand.

“We have more than enough capacity for the public sector. It is all about balancing demand from the public and private sectors,” Leonard Ariff explained. “We do not want to put all our eggs in one basket.”

This balanced approach shows strategic thinking – maintaining their strong domestic public sector relationships while building private and international revenue streams.

The Numbers Tell a Success Story

Duopharma’s confidence in expansion isn’t just wishful thinking – it’s backed by solid financial performance. In 2024, the company posted impressive results:

• Net profit jumped 19% to RM62.65 million
• Revenue increased 15.5% to RM813.70 million
• Shareholders rewarded with total dividends of 3.0 sen per share (RM28.86 million)

These numbers demonstrate a company with the financial strength to invest in international expansion while continuing to reward investors.

Understanding the Halal Pharmaceutical Market

The concept of halal pharmaceuticals might seem unusual to some, but it’s incredibly important to Muslim consumers. Halal certification ensures that medicines don’t contain ingredients derived from pork, alcohol, or other substances prohibited in Islam. This includes everything from capsule coatings to inactive ingredients.

For a country like Indonesia with over 230 million Muslims, having access to halal-certified medicines isn’t just a preference – it’s a necessity for many consumers who want their medical treatments to align with their religious beliefs.

The Timing Advantage

Indonesia’s delay in implementing the halal pharmaceutical law actually works in Duopharma’s favor. It gives them time to:

• Optimize production capacity at their Malaysian facilities
• Build relationships with Indonesian distributors and regulators
• Prepare documentation for halal certification processes
• Study the market to understand consumer preferences and pricing expectations

What This Means for the Industry?

Duopharma’s Indonesia strategy could signal a broader trend in Southeast Asian pharmaceuticals. As Muslim populations grow and become more affluent, the demand for halal-certified products across all categories – not just food – is likely to increase.

Other pharmaceutical companies in Malaysia, and even internationally, may soon follow Duopharma’s lead in targeting these specialized markets.

The Road Ahead

For Duopharma, 2025 represents a pivotal year. Their priority is clear: “meet private and international commitments” while maintaining their strong domestic position.

The company’s strategic patience with challenging markets like Qatar, combined with their focused approach to Indonesia, suggests they understand that international expansion requires both ambition and realism.

As Indonesia moves toward implementing its halal pharmaceutical requirements, Duopharma appears well-positioned to capitalize on what could become a significant new revenue stream. For Malaysian pharmaceutical exports, and for Muslim consumers in Indonesia seeking religiously compliant healthcare options, this could be the beginning of a very profitable partnership.

The question isn’t whether Indonesia’s halal pharmaceutical market will grow – it’s whether Duopharma can capture a significant share of it when the law takes effect in 2026-2027.

Original Article:

The Star. (2025, June 26). Duopharma Biotech eyes more halal exports to Indonesia. The Star. https://www.thestar.com.my/business/business-news/2025/05/21/duopharma-biotech-eyes-more-halal-exports-to-indonesia#goog_rewarded