Malaysia’s Halal Industry Attracts Chinese Corporate Interest

KUALA LUMPUR – A growing number of Chinese companies are eager to learn about and integrate Malaysia’s renowned halal standards into their operations. This heightened interest highlights the importance of halal certification across various industries, including food and beverage, pharmaceuticals, and cosmetics. Datuk Seri Tan Thian Lai, president of the One Belt One Road Chamber of Commerce (OBORCC), emphasized Malaysia’s global reputation for stringent and reliable halal certification, making it a key focus for Chinese businesses aiming to meet international standards.

Malaysia’s Leading Halal Certification

Malaysia’s Halal Certification, managed by the Department of Islamic Development Malaysia (Jakim), is widely recognized as one of the best in the world. For ten consecutive years, it has maintained the top rank for the halal food sector among 81 countries, according to the State of the Global Islamic Economy 2023 report. This prestigious standing has made Malaysia a prime destination for Chinese companies seeking to ensure their products meet rigorous halal standards.

Growing Interest from Chinese Companies

Datuk Seri Tan Thian Lai noted that numerous Chinese companies, particularly from the food and beverage, pharmaceutical, and cosmetic industries, are beginning to recognize the significance of halal certification. “They see Malaysia as a country that places great emphasis on each product it produces. To them, it is a good opportunity to learn more about these halal standards for their products,” he told Bernama.

The growing interest is not limited to China’s vast Muslim population of 1.4 billion people. Even non-Muslim communities are increasingly appreciating the benefits of halal-certified products, further expanding the market’s potential. This trend has led business partners from Guangdong, Shanghai, and Beijing to express intentions of setting up factories in Malaysia. By doing so, they can ensure their halal products are closely monitored and certified by Jakim.

Investment in Halal Facilities

Several countries are ready to invest in establishing preparation and packing facilities for halal goods in Malaysia. This move aligns with the broader strategy of these Chinese companies to cater to the global demand for halal products. The global halal market is projected to reach USD 9.71 trillion by 2025, with Malaysia expected to play a leading role in this growth.

Benefits of Bilateral Ties

The upcoming visit by China’s Prime Minister Li Qiang to Malaysia, marking the 50th anniversary of Malaysia-China diplomatic ties, is anticipated to further strengthen the collaboration between the two nations. Datuk Seri Tan Thian Lai expressed hope that this visit would benefit both countries in empowering the global halal industry.

Malaysia’s Role in the Global Halal Market

In his special address at the Global Forum on Islamic Economics and Finance on May 28, Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz highlighted the competitiveness and rapid growth of the halal industry. He noted that the developments seen in Malaysia’s halal sector are also expected to be experienced by Islamic finance, further solidifying Malaysia’s leadership in the global halal market.

As Chinese companies continue to recognize the value of halal certification, Malaysia stands out as a leading hub for halal standards and practices. The collaboration between Chinese businesses and Malaysia’s halal certification authorities promises to enhance the quality and authenticity of halal products worldwide. With the global halal market poised for significant growth, this partnership holds substantial potential for both nations and the broader Islamic economy.

By investing in Malaysia and adhering to its stringent halal standards, Chinese companies are not only opening new avenues for business but also contributing to the global recognition of halal products. This trend underscores the importance of Malaysia’s role in the global halal industry and its potential to drive economic growth through strategic international partnerships.