Malaysia’s Halal Exports Expected to Surge to RM65 Billion by 2025

Malaysia’s halal exports are projected to reach RM65 billion by 2025, up from RM54 billion in 2023, according to the Malaysia External Trade Development Corporation (Matrade). This growth is driven by increasing global demand for halal products and Malaysia’s leadership in the halal market.

Matrade deputy CEO (export acceleration) Abu Bakar Yusof attributes this confidence to the growing global demand for halal products and Malaysia’s strong position in the market. “The forecast for the halal products market is to reach US$5 trillion (RM23.3 trillion) by 2030. Last year, the halal economy was valued at US$3 trillion. There is a lot of room for Malaysia to capitalize on these opportunities. Malaysia has the advantage because our Jakim (Department of Islamic Development Malaysia) halal certification is highly recognized and much sought after by the international business community,” Abu Bakar told SunBiz in an exclusive interview.

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Abu Bakar highlighted that Malaysia’s strength in the global halal market stems from its innovation, research, and development efforts, and collaboration with international partners. “Currently, our focus is on the high-value-added food and beverage (F&B) industry, catering not only to domestic consumers but also to the global market.”

High-value F&B products undergo significant transformation compared to traditional items, integrating advanced technologies, rigorous research, and quality control measures. “This transformation not only enhances product quality but also positions these goods at premium price points for the medium and high-end market,” Abu Bakar explained.

Malaysia’s success stories in halal exports include products such as durians and birds’ nests, with China emerging as a key consumer market. “Our durians and birds’ nests exemplify Malaysia’s capacity to leverage high-value products in international trade.”

Furthermore, the halal high-value F&B products align with sustainability and environmental, social, and governance (ESG) principles. “Companies that integrate sustainable practices throughout their supply chains, from sourcing raw materials to packaging and distribution, not only appeal to environmentally conscious consumers but also enhance their market competitiveness,” Abu Bakar added.

Currently, Malaysia has about 10,000 companies certified by Jakim for halal standards, primarily in the F&B sector. “The goal is to expand this certification base further where halal certification not only meets religious requirements but also aligns with global sustainability demands. This is where we encourage our local producers and manufacturers to invest in more research and development (R&D) and innovation, and automation to meet international requirements,” he said.

The growth in Malaysia’s halal exports is also driven by sectors such as pharmaceuticals and cosmetics, which are seeing increasing demand from countries in the Middle East, Europe, and Asia. “The global halal industry is experiencing robust growth driven by consumer awareness and demand for products that adhere to Islamic laws,” he said.

Abu Bakar emphasized that being halal does not only cover the slaughtering of animals but encompasses the entire supply chain. “We have both food and non-food products covered under halal standards. That’s why the total halal export figure is larger than just processed food. Processed food accounted for RM30 billion last year, while the total halal exports were RM54 billion, covering non-food items as well,” he explained.

Halal standards also ensure adherence to sustainability standards, hygiene practices, and rigorous facility inspections. “Even logistics play a role, with dedicated halal logistics providers ensuring that products maintain their integrity throughout transportation,” Abu Bakar concluded.

This robust growth projection underscores Malaysia’s strategic initiatives and a strong commitment to advancing its halal industry, positioning it as a global leader in the halal market.