Malaysia Proposes Setting Up ASEAN Halal Council To Boost Regional Halal Industry

By Nurunnasihah Ahmad Rashid

KUALA LUMPUR, April 29 (Bernama) -- Malaysia proposes establishing the ASEAN Halal Council to strengthen strategic cooperation in the regional halal industry, and this proposal will be submitted to the ASEAN Secretariat for official finalisation.

The creation of the halal council will also facilitate the entry of halal products between the two countries while boosting intra-ASEAN trade, which has yet to reach its full potential.

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Halal Development Corporation (HDC) Chairman Khairul Azwan Harun said the proposal to establish the ASEAN Halal Council was made by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi during a Malaysia-Indonesia halal industry roundtable session in Jakarta, as well as during his meeting with Indonesian Vice-President Gibran Rakabuming Raka on April 22, 2025.

The deputy prime minister delivered the keynote address at the roundtable session, which was also attended by Indonesia’s Head of the Halal Product Assurance Organizing Agency (BPJPH), Ahmad Haikal Hassan.

“This ASEAN Halal Council will serve as a platform to streamline trade, expand markets, and harmonise the use of halal logos while benefiting a regional market of nearly 700 million people,” he told Bernama.

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During the conference, both countries also proposed facilitating the entry of halal products by mutually recognising Malaysian and Indonesian halal certificates without any additional procedures or screenings.

“This move will not only save costs and time but is expected to boost bilateral trade between Malaysia and Indonesia, especially for micro, small, and medium enterprises (MSMEs) looking to penetrate the neighbouring market with over 240 million Muslims.

“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 will immediately increase the export value of our halal products,” he said.

Khairul Azwan noted that Malaysia and Indonesia also agreed to take the lead in enhancing intra-ASEAN trade, particularly for halal products, to tap into the regional halal market, which is now valued at US$1.3 trillion (US$1 = RM4.37).

“Malaysia and Indonesia act as catalysts in this effort, as both are the largest Islamic economies in the region.

“Strengthening halal trade among member countries will position ASEAN as a competitive halal economic bloc,” he added.

He said the three strategic outcomes align with the Halal Diplomacy framework outlined by the government through HDC to ensure Malaysia remains a global leader in the halal industry.

He added that the implementation of these three main initiatives will be refined at the Halal Industry Development Council (MPIH) meeting on May 29, chaired by Ahmad Zahid, before being officially finalised by the ASEAN Secretariat.

Halal Diplomacy
According to Khairul Azwan, the Halal Diplomacy concept led by Ahmad Zahid focuses on sharing Malaysia’s expertise in developing the halal ecosystem with friendly countries, especially within ASEAN.

He said Malaysia, through HDC, is taking a proactive approach to expand the halal industry’s influence into non-traditional markets such as North Africa, Central Asia, and West Asia via Halal Diplomacy.

“We cannot move alone. Malaysia and Indonesia need to collaborate as a unified ASEAN halal entity to meet the global halal market needs, as producing countries can only fulfil 20 per cent of the demand.

“HDC is also working with the Ministry of Investment, Trade and Industry and the Malaysia External Trade Development Corporation to accelerate business matchmaking between Malaysian and Indonesian halal industry players, including in halal logistics, pharmaceuticals, and the development of ‘Halal Parks’,” he added.

Malaysia aims for halal export values exceeding RM260 billion by 2030 under the Halal Industry Master Plan (HIMP 2030), promoting six key sectors of food and beverages, ingredients, logistics, cosmetics and nutraceuticals, medical devices, and pharmaceuticals.

Digital Halal Transformation
Khairul Azwan urged industry players to be more aggressive in realising the digital transformation of the halal system, including certification and standards, to ensure Malaysia retains its position as a global halal ecosystem leader.

He said this transformation is crucial for enhancing the halal supply chain’s efficiency and transparency, which is in line with technological advancements and increasingly sophisticated market demands.

A Science, Technology and Innovation (STI)-based approach is also considered a key driver in revolutionising the local halal system through technologies such as blockchain, artificial intelligence (AI), and the Internet of Things (IoT), he added.

“Digital transformation will not only speed up certification processes but also boost consumer confidence and facilitate compliance monitoring of halal standards across the entire value chain.

“Malaysia, which has long been a benchmark in global halal industry development, now faces the challenge of staying relevant in the digitalisation era,” he said.

Therefore, Khairul Azwan emphasised that close collaboration among government agencies, industry players, and STI researchers is essential to realise a sustainable and competitive digital halal ecosystem.

--- BERNAMA