• Budget 2026 reaffirms Malaysia’ s leadership in

the global halal economy under the MADANI framework.

• HDC( under MITI) will expand SME support

to help more local firms meet global halal standards.

• The new tokenised cash waqf sukuk will fund

community projects such as autism centres and

palliative care.

TOKEN, TAKAFUL, TRADE: Malaysia’ s Islamic finance sector enters a digital phase with sukuk tokenisation and climate-linked investments.

Beyond the fiscal figures and allocations, the Fourth MADANI Budget sends a clear message- that halal is more than a certification: it underscores the government’ s commitment to strengthening the halal ecosystem, expanding access to halal financing, and positioning Islamic finance as a catalyst for sustainable growth.

TURNING VISION INTO ACTION

Recognising the halal industry’ s role as both an economic driver and a reflection of Malaysia’ s Islamic identity, the government announced new measures to deepen the sector’ s competitiveness and inclusivity.

The government outlined several measures to enhance the halal ecosystem, focusing on efficiency, financing, and industry development. The Department of Islamic Development Malaysia( JAKIM) will continue efforts to improve halal certification processes, reducing waiting times for businesses seeking to enter halal markets locally and abroad.

This is part of a broader effort to streamline Malaysia’ s halal governance system and maintain its reputation as a global standard-bearer of trust and integrity.

To support this, the Halal Development Corporation( HDC)— under the Ministry of Investment, Trade and Industry( MITI)— will expand initiatives that help companies, especially small and medium enterprises, achieve halal compliance and international recognition. HDC’ s engage-

IN FOCUS: Prime Minister Anwar Ibrahim delivering the 2026 Budget in Parliament

ment with industry players is expected to boost local participation in global halal value chains, particularly in food manufacturing, logistics, and personal care sectors.

Access to financing remains central to the government’ s plan. The SME Bank has allocated RM100 million to fund halalcompliant small and medium enterprises. At the same time, the Syarikat Jaminan Pembiayaan Perniagaan Berhad( SJPP) will raise its government guarantees for halal-compliant SME loans from RM1 billion to RM2 billion.

These measures aim to empower more entrepreneurs to scale their operations, meet export demand, and compete in global halal markets.

EXPANDING INDUSTRIAL CAPACITY

Physical infrastructure development also featured prominently in Budget 2026. The government announced the establishment of the Perak Halal Industrial Park( PHIP) in Manjung, with an investment of RM124 million.

The park will serve as a production and logistics hub, creating new investment

opportunities while linking Malaysia’ s growing network of halal industrial zones.

Beyond industrial measures, the Budget also broadened the country’ s Islamic economic agenda. The government outlined steps to modernise Islamic finance, focusing on innovative instruments like Global Sukuk Tokenisation and Climate Sukuk under Labuan IBFC’ s Digital Islamic Finance Hub.

These initiatives signal Malaysia’ s intention to blend traditional Islamic finance with cutting-edge digital solutions and environmental sustainability.

The commitment to inclusivity was equally evident. The government reiterated its support for waqf and Islamic social finance, including RM250 million in waqf land developments led by UDA Holdings Berhad in Penang.

A new tokenised cash waqf sukuk will be introduced to finance community-oriented projects such as special education centres, autism facilities, and palliative care services.

Meanwhile, the iTEKAD initiative will receive RM35 million in matching funds to nurture entrepreneurship among the B40 and asnaf groups, strengthening the social foundations of the Islamic economy.

Taken together, these measures reinforce Malaysia’ s long-standing role as a benchmark for halal and Islamic economic excellence.

As global halal demand grows across food, finance, and lifestyle sectors, Malaysia’ s renewed commitment under the MADANI framework reflects both confidence and responsibility.

The challenge now lies in execution— ensuring that the Budget’ s spirit translates into tangible outcomes for businesses and the wider community.-