Malaysia retains competitive edge in global halal industry through Jakim: BMI

KUALA LUMPUR: Malaysia’s institutional credibility remains a key competitive advantage in the global halal certification landscape, underpinned by the internationally recognised halal certification system developed by the Department of Islamic Development Malaysia (Jakim), according to BMI, a unit of Fitch Solutions.

In a statement, BMI said Jakim is widely treated as a halal benchmark for rigour, consistency and operational maturity, adding that Malaysia’s influence stems from the perception that its certification system is technically credible, professionally administered and internationally legible.

It said Malaysia also benefits from a relatively affluent consumer base, with 47.6 per cent of households projected to earn above US$25,000 in 2026, higher than in Muslim-majority developing markets such as Türkiye (25.9 per cent) and Indonesia (9.6 per cent).

“Additionally, Malaysia has a broader halal ecosystem that extends into Islamic finance, tourism, pharmaceuticals and export-oriented manufacturing,” it said.

Malaysia moved early to formalise halal governance, with state-recognised halal certification introduced at the national level in 1994 under the then Food and Islamic Consumer Products Division of Jakim.

In comparison, several other Muslim-majority countries developed strong halal frameworks later or adopted more decentralised approaches.

For example, Indonesia had a long-established halal ecosystem through the Council of Indonesian Ulama (MUI), but the shift to a more formal state-led framework under the Halal Product Assurance Organising Agency (BPJPH) came later, after the body was formally established in 2017.

In a fragmented global market, countries and companies often look for a certifier that is already widely trusted, and Malaysia has succeeded in making its certification system commercially valuable beyond its own borders.

“Malaysia’s disadvantage is that it lacks the coercive power of a very large domestic market. Its certification may be widely respected, but it cannot compel international firms to align in the same way Indonesia potentially can through sheer demand size.

“Malaysia also operates in a system where even highly regarded certification bodies do not enjoy universal recognition,” it said.

Globally, BMI said the halal economy has expanded from a niche religious compliance issue into a major international trade and regulatory system, with halal food and drink remaining its largest and most developed segment.

Halal food and drink spending is expected to grow from US$1.3 trillion in 2026 to US$1.8 trillion by 2030, representing an annual growth rate of 6.9 per cent over the forecast period (2026–2030), driven largely by strong economic expansion in Muslim-majority markets.

However, certification systems remain fragmented across countries and certifying bodies, creating complexity for retailers, manufacturers and exporters, raising costs and slowing market entry.

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المصدر: New Straits Times