September-October. 2026 | @ Halal

COVER STORY

BEYOND THE NUMBERS: With halal exports reaching RM68.52 billion, Malaysia’ s next challenge is to capture more of the value behind the numbers.

Exports grew 10.9 per cent during the year, demonstrating the strength of international demand for Malaysian halal products.

But Zahid said the more important question was how much of that growth Malaysia was actually capturing through local companies, intellectual property, innovation, manufacturing and internationally recognised brands.

" We want to export more products with Malaysian intellectual property, innovation, branding and value-added content; not merely serve as a production or processing base," Zahid said.

That question is becoming increasingly important as Malaysia approaches— or exceeds— some of the earlier ambitions set under

MALAYSIA ' S halal ambitions will depend not only on its major exporters, but also on whether thousands of smaller businesses can move beyond certification and become stronger commercial players.

Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said micro, small and medium enterprises( MSMEs) need more targeted, end-to-end support covering product quality, financing, production, packaging, branding, digitalisation and export readiness.

" Certification alone does not make a company commercially successful," he said.

For many smaller businesses, obtaining halal certification is an important milestone. But it does not automatically provide the production capacity, financing, market knowledge or branding needed to compete beyond their immediate markets.

The next challenge is helping more halal-certified businesses transition from small-scale producers into sustainable enterprises capable of expanding domestically and internationally. the Halal Industry Master Plan 2030( HIMP 2030).

Zahid said the master plan must remain responsive to industry performance and changes in the global economy.

If targets are reached earlier than expected, new benchmarks may be necessary.

But simply raising the export target would not be enough.

Future ambitions should also consider the number of MSMEs entering export markets, Bumiputera participation, high-value manufacturing, research and development, local sourcing, productivity, digital adoption and the creation of Malaysian brands with international reach.

BIG NUMBERS, BIGGER GOAL At the heart of the issue is the depth of Malaysia ' s domestic halal value chain.

Zahid identified halal ingredients and raw materials, product formulation, research and development, contract manufacturing,

FROM CERTIFIED TO COMPETITIVE Zahid said support for MSMEs must address the entire business journey, not certification in isolation.

A company may have a good product and meet halal requirements but still struggle to scale because of limited financing, inconsistent production, weak packaging, insufficient digital capabilities or a lack of knowledge about overseas markets.

Addressing these gaps would allow more Malaysian MSMEs to participate meaningfully in the growing global halal economy.

The objective should not simply be to increase the number of certified companies, but to increase the number that survive, grow, export and eventually develop their own brands.

UNLOCKING RURAL POTENTIAL Rural businesses could also play a much larger role.

Agriculture, livestock, fisheries, traditional foods, herbs and wellness products provide opportunities to create halal products with greater commercial value. packaging, logistics, branding and international distribution as areas where Malaysia needs to strengthen its capabilities.

Building capacity across these areas would allow a greater share of the economic value generated by the global halal industry to remain within Malaysia.

Enterprise scale remains another challenge. Many Malaysian companies already produce quality halal products, but some remain too small, undercapitalised or insufficiently prepared to compete internationally.

Helping these companies scale will require more than access to overseas markets. It will require financing, technology, productivity improvements, stronger management capabilities and the confidence to build brands beyond Malaysia.

But this requires connecting rural producers to modern processing, technology, certification, financing and markets.

Rather than remaining primarily suppliers of low-value raw materials, these businesses should be given the opportunity to move further along the value chain.

Agricultural produce, herbs, or fisheries products, for example, can generate significantly greater value when transformed through processing, product development, packaging, and branding.

The opportunity is therefore not merely to produce more, but to create more value from what Malaysia already produces.

BUILDING SCALE For Bumiputera companies, Zahid said the focus should similarly shift from participation to building scale, capability and ownership across strategic areas of the halal economy.

These include ingredients, pharmaceuticals, logistics, technology, laboratories, research, branding and international

BUILDING THE TALENT The industry also needs a larger pool of professionals who understand both Shariah requirements and disciplines such as science, production, auditing, supply-chain management and international trade.

As halal industries become more sophisticated, particularly in pharmaceuticals, ingredients, biotechnology and advanced manufacturing, that combination of religious, scientific and commercial expertise will become increasingly important.

This is where the Malaysian Halal Industry Development Council ' s coordinating role becomes critical.

Halal cuts across multiple areas of government, including trade, investment, agriculture, health, science, education, entrepreneurship and logistics.

Zahid said stronger coordination was needed to reduce fragmentation, close implementation gaps and ensure businesses receive more coherent support.

MEASURING WHAT MATTERS Malaysia ' s progress, meanwhile, should be measured through more than rankings, certification recognition or headline export numbers.

Export value remains important, but so do the number of export-ready companies, MSME participation, Bumiputera ownership, manufacturing investment, innovation, workforce competency, and jobs created.

Ultimately, Malaysia ' s halal success will be measured not simply by how much the country exports, but by how much Malaysian value is embedded in what it exports.

The objective is to build an industry where more of the journey— from raw materials and research to manufacturing, intellectual property, branding, and global distribution— is rooted in Malaysia.

RM68.52 billion demonstrates the size of the opportunity. The bigger prize is ensuring that more of every ringgit generated by that opportunity stays Malaysian.

MORE LOCAL VALUE: Strengthening domestic production and value-added activities remains key to Malaysia’ s halal ambitions.

distribution.

Such participation would place Malaysian companies in higher-value segments of the industry rather than concentrating them at the lower end of the supply chain.

The ultimate goal is to develop competitive companies that can succeed beyond protected domestic markets.

That means businesses that can compete on quality, innovation, productivity, price, and brand strength— while using Malaysia ' s halal credentials as an advantage rather than making certification the business proposition itself.

Malaysia has spent decades building one of the world ' s most recognised halal ecosystems. The next measure of success will be how effectively that ecosystem produces businesses capable of standing on their own in global markets.

Certification can open the door. But Malaysian companies must be equipped to walk through it— and compete.