Malaysian Halal Certification Process Shortened To 23 Working Days

In a strategic push to solidify its position as a global leader in halal products and services, Malaysia is set to revolutionize the Malaysian halal certification process. The Malaysia Halal Industry Development Council has recently announced a series of reforms aimed at significantly shortening the time required for both the application and renewal of halal certificates. Starting early next year, businesses can expect the approval process to be completed within just 23 working days—a stark improvement from the previous timelines that often stretched from nine months to as long as two years.

Long-standing Concerns of Malaysian Halal Certification

The need for an expedited Malaysian Halal Certification process has become increasingly urgent as the global demand for halal products continues to rise. According to a recent report by the Global Islamic Economy Indicator, the global halal market was valued at over $2 trillion in 2022 and is expected to grow significantly over the next decade. With Muslim populations expanding and consumers becoming more conscious of halal standards, the demand for certified halal products is at an all-time high. Malaysia, with its well-established halal certification system, is well-positioned to capitalize on this growing market—provided it can overcome the bureaucratic hurdles that have historically slowed down the certification process.

Collaborative Efforts for a Streamlined Process

The new certification process is being implemented through a collaborative effort between the Department of Islamic Development Malaysia (Jakim) and the Halal Development Corporation Bhd (HDC). This partnership is crucial to ensuring that the new system is not only faster but also maintains the rigorous standards that have made Malaysian Halal Certification a global benchmark. Jakim, known for its stringent certification processes, and HDC, recognized for its role in promoting halal products globally, are working together to streamline the certification process while preserving the integrity of Malaysia’s halal standards.

One of the major challenges that have historically slowed down the certification process is the difficulty PMKS faces in meeting Jakim’s stringent requirements, particularly those related to the modification or upgrading of production premises. Zahid acknowledged these challenges, noting that the government is committed to finding solutions that will make it easier for smaller businesses to comply with halal certification standards. “We understand that the costs associated with meeting these requirements can be prohibitive, especially for smaller enterprises. That’s why we’re working on coordinated solutions to help these businesses succeed,” he added.

In addressing these challenges, the government is also exploring ways to provide financial assistance and technical support to PMKS. This includes potential subsidies for upgrading production facilities to meet halal certification standards and offering training programs to help businesses navigate the certification process more effectively. By providing these resources, the government aims to ensure that all businesses, regardless of size, can achieve and maintain halal certification, thereby contributing to the overall growth of the halal industry in Malaysia.

Pilot Program to Test the New System

To ensure the effectiveness of the new process, the government will launch a “proof of concept” (POC) initiative involving five hotels in key locations such as Kuala Lumpur, Putrajaya, and Labuan. This pilot program will allow authorities to test the new system and make any necessary adjustments before fully rolling it out. Zahid confirmed that the POC would be implemented within the next two months, to officially adopt the 23-working-day timeline as the new standard for halal certification.

The POC initiative represents a critical step in the reform process. By focusing on the hospitality sector, which plays a significant role in Malaysia’s tourism industry, the government can gather valuable insights into how the new certification process functions in a real-world setting. The results of this pilot program will be closely monitored, and any issues that arise will be addressed promptly to ensure a smooth transition to the new system.

Expanding Malaysia’s Halal Footprint Globally

While the reforms to the halal certification process are primarily focused on domestic improvements, Malaysia is also taking significant steps to promote its halal products and services on the international stage. Deputy Prime Minister Zahid highlighted the importance of “halal diplomacy” in expanding Malaysia’s reach in the global halal market. “We must go beyond our domestic market and actively promote Malaysian halal products and services internationally,” he said.

One of the key areas of focus in Malaysia’s halal diplomacy efforts is Southeast Asia. With neighboring countries like Indonesia and Brunei also vying for a share of the global halal market, Malaysia is keen to strengthen its position as the region’s leading halal hub. Through bilateral agreements and partnerships, Malaysia aims to standardize halal certification processes across the region, making it easier for businesses to export their products to multiple markets. This regional cooperation will not only boost trade within Southeast Asia but also enhance the region’s collective competitiveness in the global halal market.

A Future of Global Leadership in Halal

The reforms to the Malaysian Halal Certification process are not just about speeding up approvals; they are part of a broader strategy to position Malaysia as a global leader in the halal industry. By reducing bureaucratic delays and enhancing the efficiency of the certification process, Malaysia is making its halal products and services more competitive on the world stage.

The government’s commitment to halal diplomacy and international agreements will further bolster Malaysia’s standing as a leading proponent of halal products and services, paving the way for increased exports and stronger trade relationships. As these reforms take effect, businesses and consumers alike can look forward to a more streamlined and efficient halal certification process that supports Malaysia’s ambitions in the global halal market.

The Role of Technology in Certification

In addition to bureaucratic reforms, Malaysia is also exploring the role of technology in further streamlining the halal certification process. The introduction of digital platforms and blockchain technology is being considered to enhance transparency, traceability, and efficiency in the certification process. These technologies could allow businesses to track the progress of their certification applications in real time, reducing uncertainty and improving overall satisfaction with the process.

Blockchain, in particular, offers promising potential for the halal industry. By creating an immutable record of the entire supply chain, blockchain technology can ensure that every step of the halal certification process is transparent and verifiable. This level of transparency is especially important in the global market, where consumers are increasingly demanding proof of the halal integrity of the products they purchase. By adopting these technologies, Malaysia could set a new standard for halal certification worldwide, further solidifying its leadership in the industry.

Building a Sustainable Halal Ecosystem

As part of its broader strategy, Malaysia is also focused on building a sustainable halal ecosystem that supports long-term growth in the industry. This includes efforts to promote environmental sustainability in halal production, such as reducing waste, conserving water, and minimizing the carbon footprint of halal-certified businesses. By integrating sustainability into the halal certification process, Malaysia is aligning its halal industry with global trends and consumer preferences, which increasingly prioritize eco-friendly products.

The development of a sustainable halal ecosystem also involves fostering innovation in halal products and services. The government is encouraging research and development in areas such as halal cosmetics, pharmaceuticals, and logistics, which are emerging as key growth sectors within the halal industry. By supporting innovation, Malaysia aims to diversify its halal offerings and capture new market opportunities, ensuring the continued expansion of its halal industry.

Through a combination of streamlined processes, technological innovation, and international diplomacy, Malaysia is charting a course toward becoming the world’s leading halal hub. The implementation of these reforms will not only address the immediate concerns of businesses but also lay the foundation for sustainable growth in the halal industry for years to come. As the global demand for halal products continues to rise, Malaysia’s proactive approach will ensure that it remains at the forefront of this dynamic and rapidly evolving industry.