Malaysia’s 16 million Muslim population is driving demand for halal products. Proximity to Islamic markets such as Indonesia and the Middle East also offers strong export opportunities.
This insight explains How exporters can access the global halal market by using Malaysia as a launch pad, and important considerations when obtaining halal certification.
Meaning of halal
Halal is interpreted as “acceptable” or legal within the bounds of traditional Islamic law, which is protected by Islamic believers.
It is especially relevant in the Islamic diet. This is an important consideration affecting the production and processing of many foods, especially in Islamic countries. While many consider halal to mean the absence of pork and alcohol, halal has certain importance throughout the value chain.
Important aspects of food manufacturing, such as raw material procurement, slaughter, and food packaging, must follow Islamic beliefs in order for the final product to be certified as halal and available for sale to the Islamic community.
Important considerations for halal certification
Not all products need to be halal certified before they can be imported into Malaysia. However, it is obligatory to obtain halal certification before importing.
Obtaining certification for other food categories depends on market entry considerations, distribution channels, and end users.
This is most apparent in the food services and hospitality sector, where many facilities are halal certified and require halal certified ingredients to maintain this status. For example, Malaysian importers only negotiate with Halal-certified dairy manufacturers for specific considerations regarding channels to the market.
Halal certification is generally considered a Muslim equivalent to HACCP or GMP certification. Brands guaranteed by Halal will be rewarded for their loyalty and greater market access to the Islamic market.
Trade impacts for exporters
Companies that see Malaysia as a potential market Manual for importing country requirements (MICOR) According to the regulations of the Ministry of Agriculture, Water and Environment (DAWE). MICOR sets out the requirements that exporters must meet for products and commodities that are permitted to be imported into certain countries.
The Department of Islamic Development of Malaysia (JAKIM) is the leading agency responsible for Islamic issues, including halal certification. JAKIM needs to check the halal status of a product at every stage of manufacturing in order to obtain halal certification.
Foreign halal certification body
JAKIM has appointed the Foreign Halal Certification Authority (FHCB) to facilitate the process for companies based outside Malaysia. These authorized representatives ensure that the manufacturing process complies with Halal standards. Currently, Australia has seven certification bodies for the export of halal certification to Malaysia.
To the Ministry of Agriculture, Water and Environment List of Islamic institutions recognized for halal certification of lean meat..
Exporters must also meet the following other requirements: Australian regulations before export..
Malaysian Muslim consumers are young, curious and tech-savvy
Today, there are an estimated 1.9 billion Muslims in the world, accounting for about 26% of the world’s population. One in four adheres to Islamic lifestyles and their religious practices, including compliance with Halal standards.
On the basis of Current Status of World Islamic Economic Report 2021, Islamic consumer spending is expected to reach US $ 2.4 trillion by 2024. Food spending alone can account for more than US $ 1 trillion.
The average Muslim population in Asia is under 30 years old. Malaysia’s high internet coverage means that many consumers are strongly influenced by social media and use it as their primary source of information. Social media channels have proven to impact global brand sales, especially by leveraging ambitious lifestyle marketing through halal events and campaigns.
Malaysia at the forefront of the world’s halal industry
With a population of 16 million Muslims, Malaysia is in high demand for genuine Halal products. Malaysia is in a position to benefit from both local demand and strong export opportunities by leveraging the increased purchasing power of consumers in other Islamic markets. These include the Middle East and neighboring Indonesia, the largest Islamic country in the world.
Malaysia’s natural character, along with aggressive government policy, shows the expansion of opportunities in the Halal economy. As a member of the Organization of Islamic Cooperation (OIC), Malaysia’s Halal certification is globally recognized by all Islamic countries, making it a perfect launch market for exporters.
World Halal Business Conference
Malaysia hosts the largest halal conference in the region each year. This conference provides a unique opportunity for exporters to better understand the halal ecosystem and what Malaysia offers.
The World Halal Business Conference will be held on September 9th to bring together government agencies, business leaders and scholars from around the world. Australian companies interested in participating in the global Halal economy, hosted by the Halal Development Corporation, are encouraged to attend virtual conferences.
For more information, please contact the Australian Trade Promotion Agency in Kuala Lumpur.
contact KC Liew, Business Development Manager – Austrade Kuala Lumpur’s Agribusiness, Food & Beverage, Food and Beverages, Agribusiness Opportunities, and Inquiries about the Malaysian Market.