COVER STORY

@ Halal | March-April. 2025

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BY ZAFIRAH ZAFRUDDIN

This chairmanship builds upon the meaningful progress ASEAN has achieved under the ASEAN Community Vision 2025 framework.

As Chair, Malaysia aims to spearhead efforts towards even greater unity, economic prosperity, and sustainable development for the association. The theme, ' Inclusivity and Sustainability,' reflects this aspiration.

The burgeoning halal industry represents a crucial avenue for realising these goals. With its rapid expansion, the global halal market is projected to reach US $ 5 trillion by 2030. Domestically, the halal sector is expected to make up 8.1 per cent of Malaysia ' s gross domestic product( GDP) this year.

Accordingly, Malaysia ' s chairmanship represents a golden opportunity for the nation to strengthen its position as a leading regional halal hub.

In fact, the Deputy Prime Minister( DPM) Datuk Seri Dr Ahmad Zahid Hamidi has urged the Malaysia External Trade Development Corporation( MATRADE) to fully seize

the opportunity presented by the association ' s over 600 million population for Malaysian halal export growth.

MALAYSIA ' S HALAL ECOSYSTEM

Zahid, who is also the chairman of the Malaysian Halal Development Council( MPIH), has been instrumental in driving Malaysia ' s halal agenda. Under his leadership, the government has set an ambitious target of RM63.1 billion in halal exports for 2025, up from RM61.79 billion in 2024, indicating a 15 per cent increase from the previous year.

This growth is built on a comprehensive approach outlined in the Halal Industry Master Plan 2030( HIMP 2030). This blueprint targets high-value sectors such as halal pharmaceuticals, logistics, and food technology.

Dedicated infrastructure, such as the Halal Malaysia Industrial

Parks( HALMAS), further strengthens this initiative. These accredited parks provide a conducive ecosystem for businesses, facilitating investment processes. Moreover, it ensures Shariah compliance throughout the entire halal value chain.

Malaysia ' s overall halal ecosystem is designed to guide ASEAN towards a more integrated, competitive, and sustainable economy, aligning perfectly with its 2025 Chairmanship goals.

ASEAN HALAL COUNCIL

A significant milestone in Malaysia ' s halal diplomacy is the proposal to establish the ASEAN Halal Council. This regional body is aimed at standardising halal certifications and streamlining processes, ultimately boosting intra-ASEAN halal trade.

This initiative, spearheaded by Zahid, gained traction during the Malaysia-Indonesia Halal Industry Collaboration Roundtable organised by the Halal Development Corporation Berhad( HDC). It was also a key point of discussion during Zahid ' s meeting with Indonesian Vice President( VP) Gibran Rakabuming Raka.

With the establishment of the ASEAN Halal Council, businesses can look forward to the benefits of mutual recognition of halal certificates between member nations. This arrangement would allow halal-certified products from Malaysia and Indonesia to bypass additional screenings, a potential game-changer for the halal industry.

" Malaysian products certified halal and regulated by the Department of Islamic Development Malaysia( JAKIM) can be marketed directly in Indonesia, and vice versa.

" This is a game changer that

By boosting halal trade among ASEAN member states, ASEAN will collectively become a powerful force in the global halal economy

- Khairul Azwan Harun

will immediately increase the export value of our halal products," remarked HDC Chairman Khairul Azwan Harun.

Malaysia and Indonesia will jointly lead the initiative to increase intra-ASEAN trade. With a regional halal market valued at an estimated US $ 1.3 trillion, the collaboration between the two countries will catalyse intra- ASEAN halal trade, which has yet to reach its full potential.

" By boosting halal trade among ASEAN member states, ASEAN will collectively become a powerful force in the global halal economy," noted Khairul.

The council ' s fo r m ation, mutual halal certification recognition, and joint leadership will be discussed further during the MPIH meeting on May 29 before its submission to the ASEAN Secretariat.

DIGITAL SHIFT

While Malaysia has long been considered a global leader in the halal sector, it now faces increasing pressure to maintain its competitive edge in the digital age. With other countries quickly catching up, this digital leap is thus crucial for Malaysia ' s halal system.

To that end, Malaysia is actively exploring Science, Technology, and Innovation( STI) to champion the digital transformation of the halal ecosystem. This includes using advanced technologies like blockchain, artificial intelligence( AI), and the Internet of Things( IoT).

As global demand for halal products steadily increases, ASEAN stands at a crucial turning point. With Malaysia ' s ASEAN chairmanship, the nation has a timely opportunity to emerge as a unified halal hub, a position it is ready for.-