Malaysia and Indonesia to Spearhead ASEAN Halal Council Formation

Malaysia and Indonesia announced plans to spearhead the formation of the ASEAN Halal Council, a transformative initiative to position Southeast Asia as a global leader in the rapidly growing halal industry. The announcement came during a strategic meeting between Malaysia’s Deputy Prime Minister, Datuk Seri Dr. Ahmad Zahid Hamidi, and Indonesia’s Head of the Halal Product Assurance Organising Agency (BPJPH), Haikal Hassan Baras, on the sidelines of the 46th ASEAN Summit on Monday, May 26, 2025.

The ASEAN Halal Council, slated for formal establishment later this year, aims to unify halal certification standards across the 10-nation ASEAN bloc, fostering a competitive and sustainable halal ecosystem. With the global halal market projected to reach US$5 trillion (RM21 trillion) by 2030, according to Dubai-based Salaam Gateway, the council seeks to capitalize on rising demand for halal products and services, spanning food, pharmaceuticals, cosmetics, tourism, and Islamic finance.

“This is a pivotal moment for ASEAN to lead the global halal industry,” said Ahmad Zahid, who chairs Malaysia’s Halal Industry Development Council. “By harmonizing standards and regulations, the ASEAN Halal Council will enhance trade, boost consumer trust, and position our region as a trusted halal hub.”

Related: Malaysia and Indonesia Focus on Halal Trade, Regional Stability, Palestine

The council will focus on four key pillars:

• Standardized Certification: Aligning halal certification processes across ASEAN nations, with mutual recognition to streamline compliance and reduce trade barriers.
• Workforce and Innovation: Launching expert exchange programs, joint training, and collaborative research to drive innovation and build a skilled halal workforce.
• Trade Growth: Facilitating market access for halal products to tap into ASEAN’s 700 million consumers, including over 270 million Muslims in Indonesia, Malaysia, Brunei, and beyond.
• Sustainability: Promoting eco-friendly practices and new product development to meet global demand for ethical, sustainable halal goods.

The initiative builds on recent Malaysia-Indonesia collaborations, including Ahmad Zahid’s official visit to Jakarta, which laid the groundwork for joint leadership in the halal sector. Malaysia, a global pioneer in halal certification, and Indonesia, the world’s largest Muslim-majority nation, are leveraging their strengths—Malaysia’s expertise in standards and Indonesia’s robust market—to drive the council’s success. Malaysia’s Maybank, the region’s top provider of Shariah-compliant finance, further bolsters ASEAN’s position in Islamic finance.

“The ASEAN Halal Council will not only strengthen intra-regional trade but also elevate our halal products on the global stage,” Ahmad Zahid added, highlighting Malaysia’s “halal diplomacy” as a tool to enhance its national brand.

The global halal market, valued at US$2.29 trillion in 2022, is expected to grow to US$3.1 trillion by 2027, driven by rising incomes in Muslim-majority countries and increasing demand for value-aligned products. However, fragmented certification systems across nations have created challenges for consumers and businesses. The council’s unified ASEAN halal logo, agreed upon in principle, aims to address this by ensuring transparency and reliability.

The initiative also aligns with broader regional ambitions. Malaysia, the current ASEAN chair, is pushing for “smart partnerships” with the Gulf Cooperation Council (GCC) and China, with discussions on a global halal certification framework set for a summit in Riyadh in November 2025. Potential collaborations in artificial intelligence (AI), renewable energy, and Islamic finance could further amplify ASEAN’s global influence, leveraging the UAE’s AI advancements through G42 and China’s technological expertise.

For businesses, the council promises reduced compliance costs and easier access to ASEAN and global markets, particularly for small and medium enterprises (SMEs) in food, cosmetics, and pharmaceuticals. Consumers will benefit from a trusted, unified halal logo, while professionals can access new opportunities through training and research programs.

To engage with the ASEAN Halal Council or explore opportunities in the halal industry, contact Malaysia’s Halal Industry Development Council or Indonesia’s BPJPH. Further details on global standardization efforts will emerge from the Riyadh summit.