Malaysia’s Halal Economy: A Journey of Transformative Growth and Global Leadership

Kuala Lumpur, Malaysia, 18 September 2024 – Halal Development Corporation Berhad (HDC) an agency under the Ministry of Investment, Trade and Industry (MITI) hosted a media briefing today, as part of its participation in the Malaysia International Halal Showcase shedding light on the impressive evolution of Malaysia’s Halal economy and its important role on the global stage.

The briefing was led by Khairul Azwan Harun, Chairman of HDC and Hairol Ariffein Sahari, CEO of HDC, offered a comprehensive overview of Malaysia’s Halal economy, which has grown far beyond its traditional food sector to encompass pharmaceuticals, cosmetics, Islamic finance, and tourism. This expansion stresses Malaysia’s position as a global leader in Halal industry advancements.

The Evolution of Malaysia’s Halal Economy

Malaysia’s journey towards Halal excellence began in the 1970s with the introduction of a basic Halal verification system. Over the decades, this system has evolved into a sophisticated and globally respected certification framework. Since the establishment of HDC in 2006, Malaysia has refined its Halal certification processes and established itself as a key player in the global Halal market. Malaysia has proudly held the top position in the Global Islamic Economy Indicator for ten consecutive years.

“The growing demand for Halal products—valued at over USD 3 trillion and expected to reach USD 5 trillion by 2030 — emphasizes the global appeal of Halal’s ethical and sustainable attributes. Malaysia’s leadership in this sector is a testament to our continued innovation and dedication.” said Chairman of HDC, Khairul Azwan Harun.

Strategic Initiatives

The briefing also highlighted Malaysia’s strategic initiatives to enhance its Halal industry. The Deputy Prime Minister, also the Chairman of the Malaysian Halal Development Council (MPIH), outlined Malaysia’s master plan to capitalize on the global demand for Halal products. The Halal Industry Master Plan 2030 (HIMP 2030) aims to position Malaysia as a prominent, visible, and globalized leader in the Halal Economy.

In line with this plan, Malaysia has streamlined its Halal certification process, reducing the timeline to just 15 days working days for a complete documentation. The nation is also actively engaging in international Halal trade, with successful Round Table sessions held in Osaka, Dili, and Shanghai. These efforts are complemented by strategic partnerships with countries such as Saudi Arabia, Russia, Uruguay, and China.

In collaboration with key agencies such as JAKIM, MATRADE and MIDA, HDC facilitates the onboarding of industry players onto the halal economy to increase Malaysia’s halal exports, provide quality employment and direct investment into halal industrial parks. JAKIM, with its 15 halal standards, ensures that products meet rigorous requirements, while MATRADE also plays a vital role in promoting halal exports.

The recent World Halal Business Conference (WHBC) 2024 emphasized the significance of the Malaysian Halal Logo and the need for halal diplomacy to open new international markets. Countries like South Africa have expressed interest in Malaysia’s expertise to help expand their halal product offerings.

As for investment, new Malaysia’s Halal Park (Halmas) incentives aim to bolster the country’s position as a global leader in the halal industry. MITI is currently studying these proposed incentives, which are subject to approval by MOF and other relevant authorities. The incentives aim to offer green technology-friendly solutions, sustainable infrastructure, financial support, tax breaks, as well as infrastructure development to attract both foreign and domestic direct investment.

The focus will be on creating conducive facilities that incorporate ESG and green technology. To achieve this, increasing the capacity for halal ingredients is crucial to attract further investments and maintain competitiveness in the global halal market.

Economic Impact

The Halal industry contributes approximately 6% to 7% of Malaysia’s GDP, with a current valuation of RM54 billion. The Halal Industry Core Sector Insights Report which was launch yesterday during the 17th World Halal Business Conference 2024 features the importance of the Halal sector, focusing on major clusters such as Food & Beverage and Healthcare, and aims to support informed decision-making in line with HIMP2030 objectives.

Malaysia takes great pride in its accomplishments within the Halal industry and remains committed to leading and innovating, extending gratitude for the continued support of the nation’s Halal economy.

HDC hopes all Malaysians can embrace Halal not just for dietary purposes, but as sustainable lifestyle practices that promote ethical consumption, environmental responsibility, and social well-being, ultimately contributing to a more harmonious and prosperous society while also driving economic growth.