Halal Industry Goes Beyond Food Emphasizes Ahmad Zahid

Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi recently reiterated a vision for Malaysia’s halal industry that is far more expansive than just food safety and dietary restrictions. Speaking at the Global Islamic Financial Summit (GIFS) 2025 in Kuala Lumpur, he emphasized the importance of viewing halal through a holistic lens—integrating ethical finance, governance, product integrity, and consumer trust.

Below is a detailed analysis of his message, its implications for stakeholders, and what this means for the future of Malaysia’s halal-Islamic finance ecosystem.

Key Points from Zahid’s Speech

1. Holistic Halal Economy
   Zahid called for halal to be “pure in both substance and spirit,” saying that halal certification must reflect not only what consumers eat, but how products are financed, produced, and delivered. He wants halal to embody legitimacy—ensuring that wealth behind halal offerings is free from prohibited elements like riba (usury).

2. Integration with Islamic Finance
   He made it clear that halal and Islamic finance must work together. The idea is to expand halal beyond food, into pharmaceuticals, healthcare, lifestyle, tourism, and more, financed through Shariah-compliant methods.

   Be the first to get new Halal products & exclusive brand reviews!

   
   

   Subscribe

   Loading...

   Subscribe

   Loading...

   Thank you!

   You have successfully joined our subscriber list.

3. Strengthening Governance and Standards
   Zahid praised Malaysia’s strong regulatory framework: the Islamic Financial Services Act 2013, strict enforcement measures including penalties, and institutional integrity are central to ensuring that halal remains credible. He wants Malaysia to act as a global standard-setter in halal and Islamic finance.

4. Human Capital and Institutional Development
   Emphasis was placed on preparing auditors, halal professionals, and executives who can uphold global standards. There was also mention of leveraging Malaysia’s existing success stories—Islamic banks, takaful operators, and development finance institutions.

5. Economic Opportunity and Market Size
   Zahid estimated that the halal industry covering food, pharmaceuticals, tourism, and lifestyle is worth over US$3 trillion, and that Islamic finance globally holds more than US$5 trillion in assets. Together, they form a combined ecosystem worth an estimated US$8-10 trillion if harnessed properly.

Why This Matters

Malaysia’s Halal Industry Landscape

Malaysia has long been a leader in halal certification, food production, and export markets. Bodies such as JAKIM (Department of Islamic Development Malaysia) help enforce halal standards. The government has been pushing for the halal industry to broaden in cosmetics, pharmaceuticals, logistics, tourism, and lifestyle products, not just food. This broader halal ecosystem has been part of Malaysia’s strategy for years.

Global Trends and Consumer Behavior

Globally, halal is not only a religious concern but also increasingly connected to ethics, quality, traceability, and transparency. Consumers are asking: Where did the product come from? How was it financed? Was it produced in an ethical, clean way?

Regulatory scrutiny and consumer awareness are higher than ever. Any lapses in halal integrity or proof of noncompliance damage trust not only in one brand but in the whole ecosystem.

Risk Factors and Challenges

• Certification Complexity: Achieving credible halal certification requires alignment across many sectors—supply chain, raw materials, slaughtering, processing, packaging, finance, and more.

• Enforcement and Oversight: Standards must be consistently applied; fraud or lapses undermine faith in halal labels.

• Public Perception and Politics: In some countries, halal can become politicized, with debates over religious conformity, inclusivity, and secularism. Malaysia must carefully balance religious, economic, and regulatory priorities.

• Financing and Ethical Issues: When integrating halal with finance, issues like transparency, avoidance of exploitative practices such as usury, good governance, and fair contracts become essential.

Implications for Stakeholders

For Businesses

Companies in food, cosmetics, lifestyle, pharmaceuticals, and other sectors must ensure not just product safety and halal ingredient sourcing, but also that financing, production, distribution, and marketing align with halal and ethical standards.

This opens up opportunities to tap into a larger market of consumers seeking halal-certified products beyond food. It also allows businesses to leverage Malaysia’s leadership in certificates to expand into export markets. Private sector players may also partner with financial institutions to develop halal finance solutions specific to the product lifecycle.

For Financial Institutions and Regulators

Banks, takaful, and investment firms have a chance to develop more products and services tailored to halal industries, such as financing for halal-certified companies or sukuk (Islamic bonds) tied to halal operations. Regulators will need to ensure frameworks are updated to cover the expanding scope of halal. Matters like audit, transparency, and accountability are central.

For Consumers

Consumers benefit from greater choice and assurance that what they consume is halal and that every link in the chain, from finance to logistics, meets high moral, ethical, and religious standards. This also has the potential to lower costs and improve access as the halal product market scales and competition grows.

For Malaysia’s Global Standing

Malaysia could reinforce its reputation as a global halal hub, not just in food but also as a standard-bearer for certification, ethical financing, lifestyle, and tourism. With strategic vision, Malaysia could influence international norms, practices, and standards in halal finance and production.

Malaysia’s Next Steps

1. Regulatory Frameworks and Legal Instruments
   The Islamic Financial Services Act 2013 and penalties for violations remain crucial to ensure trust.

2. Leadership and Standard-Setting
   Malaysia continues to host international platforms like GIFS to set agendas and coordinate with international bodies to harmonize halal certification standards.

3. Educational Investment and Human Capital
   Training halal auditors, compliance officers, and finance professionals is necessary to strengthen credibility. Awareness campaigns among smaller businesses are also needed.

4. Infrastructure and Ecosystem Development
   Strengthening supply chain traceability, clean production, and ethical sourcing will help expand halal credibility across non-food sectors such as cosmetics, pharmaceuticals, tourism, and lifestyle.

5. Transparency and Trust
   Public disclosure of halal practices, certification details, and financing sources is vital. Ensuring that the halal label represents more than just food safety but also ethical finance and fair business practices is essential for long-term consumer trust.

Deputy Prime Minister Ahmad Zahid’s remarks at GIFS 2025 mark a significant moment in Malaysia’s halal sector. By placing halal beyond food and emphasizing Islamic finance, governance, and ethical integrity, he is pushing for a more rounded holistic halal economy.

For Malaysia, this is not just policy—it is a strategic push to lead in a global ecosystem worth trillions. The success of this vision depends on consistent governance, credible certification, public trust, and the ability of businesses, regulators, and financial institutions to align behind a shared standard of integrity.