Source: Halal Times

JAKARTA – Malaysia has taken a decisive step toward consolidating its position as the world’s premier halal industry hub with the establishment of the Malaysia Halal Authority. This strategic initiative, integrated into the country’s 13th Malaysia Plan (2025-2030), represents a comprehensive approach to capitalizing on the rapidly expanding global halal market, which analysts project will reach USD 5 trillion by 2030.

The new authority aims to elevate Malaysia’s halal exports to RM80 billion (approximately USD 18 billion) while reinforcing the nation’s reputation as a premier destination for halal products spanning food, cosmetics, pharmaceuticals, and financial services. Through centralized oversight and streamlined operations, Malaysia seeks to maintain its trusted global standing in halal certification and standards.

Consolidating Halal Operations Under One Framework

The Malaysia Halal Authority will serve as the primary coordinating body for all halal-related activities, encompassing food products, pharmaceuticals, cosmetics, and Islamic financial services. This unified approach replaces the previous fragmented system where various organizations, including the Department of Islamic Development Malaysia (JAKIM) and the Halal Development Corporation (HDC), operated independently.

Key objectives of the consolidated authority include:

Streamlined Certification Processes: Simplifying and accelerating halal certification procedures for businesses seeking market access.

Standardized Global Compliance: Ensuring consistent halal standards that align with international requirements across all sectors.

This centralization will enable Malaysian companies to navigate international halal requirements more efficiently, facilitating expanded global market penetration. The initiative responds to growing worldwide demand for halal products, driven not only by Muslim consumers but also by individuals seeking ethical and environmentally conscious alternatives.

Strategic Alignment with National Development Goals

The Malaysia Halal Authority operates within the framework of the Halal Industry Master Plan 2030 (HIMP 2030), launched in March 2023. This comprehensive blueprint positions Malaysia as the definitive global halal leader through innovation, sustainable practices, and international market expansion.

The authority will oversee 23 strategic initiatives and seven primary objectives, with particular emphasis on food production, cosmetics manufacturing, and pharmaceutical development. In 2024, the halal sector contributed RM149 billion to Malaysia’s economy, representing 7.7% of national GDP. Projections indicate this contribution will reach 11% by 2030.

The authority’s responsibilities include promoting product innovation, developing workforce capabilities, and establishing specialized halal industrial zones to support sector growth.

Addressing Global Supply-Demand Imbalances

International markets face a significant halal product supply shortage, with demand exceeding availability by approximately 80%. This substantial gap presents Malaysia with unprecedented expansion opportunities. The Malaysia Halal Authority will collaborate with established organizations including JAKIM, Malaysia External Trade Development Corporation (MATRADE), and Malaysian Investment Development Authority (MIDA) to:

Facilitate International Market Access: Supporting domestic businesses in reaching overseas consumers and markets.

Attract Foreign Investment: Encouraging international companies to establish operations within Malaysia’s halal ecosystem.

Malaysia’s globally recognized halal certification system provides a foundation for positioning the country as a premier destination for halal food production, Islamic banking services, and halal tourism experiences.

Commitment to Sustainability and Ethical Standards

The Malaysia Halal Authority extends beyond economic objectives to emphasize responsible business practices and environmental stewardship. The organization will prioritize sustainability and ethical production methods, appealing to both Muslim and non-Muslim consumers who value conscientious consumption.

Strategic sustainability initiatives include:

Green Technology Integration: Supporting environmentally friendly technologies and sustainable building practices.

Ethical Production Standards: Promoting fair manufacturing processes that comply with international best practices.

These efforts include ensuring adequate halal ingredient supplies while maintaining environmental responsibility, aligning with contemporary consumer preferences for planet-friendly products.

Development of Specialized Industrial Zones

Malaysia is establishing dedicated halal industrial parks in strategic locations including Melaka, Perak, and Kelantan. These specialized zones will provide optimal environments for halal product manufacturing, featuring:

State-of-the-Art Infrastructure: Modern facilities designed to meet international halal production standards.

Comprehensive Business Support: Skilled workforce development and government assistance programs to attract and retain businesses.

The authority will support small and medium enterprises in these parks, enabling them to compete effectively in global markets. Major international corporations such as Nestlé and Coca-Cola already participate in Malaysia’s halal ecosystem, attracted by robust regulatory frameworks and strategic Southeast Asian positioning.

Building Upon Established Excellence

Malaysia’s halal leadership dates back to the 1970s, with JAKIM certifications recognized across 47 countries. For a decade, Malaysia has maintained its position as the top-ranked nation in the Global Islamic Economy Indicator (GIEI), excelling particularly in halal food production and Islamic banking services. The Malaysia Halal Authority will preserve and enhance this distinguished reputation.

Workforce Development and SME Empowerment

Sustained halal industry growth requires skilled professionals across all sectors. The authority will partner with HDC’s training facilities to develop halal specialists, auditors, and researchers. This educational focus will particularly benefit small and medium businesses, which form the backbone of Malaysia’s economy, helping them achieve international standards and access markets in the Middle East, Europe, and Asia.

International Collaboration and Partnerships

The authority will strengthen diplomatic and commercial relationships with key trading partners including Saudi Arabia, Russia, Uruguay, and China. Regional cooperation through organizations like the ASEAN Working Group on Halal Food (AWGHF) will expand market access throughout Southeast Asia.

Support for the International Halal Authority Board (IHAB), established by JAKIM in 2018, will facilitate broader international acceptance of Malaysian halal products and standards.

Technology Integration for Supply Chain Integrity

The Malaysia Halal Authority will implement advanced technologies including blockchain, Internet of Things (IoT), and big data analytics to ensure supply chain transparency and authenticity. These technological solutions address growing consumer demands for verification and traceability, particularly in international markets where trust in halal authenticity remains paramount.

Industry and Government Response

The announcement has generated positive responses across political and business sectors. Prime Minister Datuk Seri Anwar Ibrahim highlighted the initiative as evidence of Malaysia’s readiness to capture global halal market opportunities. Social media discussions reflect optimism about Malaysia’s enhanced halal hub status, though these represent public sentiment rather than verified analysis.

Future Prospects and Expectations

The Malaysia Halal Authority is positioned to transform the nation’s halal sector through innovation promotion, regulatory streamlining, and market expansion. By 2030, targets include achieving RM80 billion in halal exports, creating employment opportunities, and driving economic growth.

With established certification credibility, strong international partnerships, and emphasis on sustainable practices, Malaysia is well-positioned to maintain and expand its global halal leadership role. The authority represents a strategic evolution from Malaysia’s historical halal industry success toward a more integrated, efficient, and globally competitive framework.

This comprehensive approach addresses both immediate market opportunities and long-term sustainability challenges, ensuring Malaysia’s continued prominence in the rapidly expanding global halal economy while meeting evolving consumer expectations for quality, authenticity, and environmental responsibility.

Original article:

halaltimes.com. (n.d.). Malaysia Launches Halal Authority to Boost Global Growth. Retrieved August 4, 2025, from https://www.halaltimes.com/malaysia-launches-halal-authority-to-boost-global-growth/