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 — emphasises 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 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.
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 17 th 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.
