No Need for New Halal Certification Law, Says Malaysian Minister

In a recent parliamentary session focused on the 12th Malaysia Plan (12MP) Mid-Term Review, Malaysia’s Minister of Religious Affairs, Datuk Dr. Mohd Na’im Mokhtar, addressed growing discussions about the necessity for a new halal certification law in Malaysia. Responding to calls from various quarters, the Minister made it clear that there is no immediate need for additional legislation. He emphasized that the current legal framework is not only comprehensive but also robust enough to address the country’s present and foreseeable future needs.

The Legal Framework for Halal Certification Law in Malaysia

Malaysia has long been recognized as a global leader in halal certification, thanks in large part to its rigorous standards and well-established legal framework. The Malaysian Halal Certificate (SPHM), issued by the Department of Islamic Development Malaysia (JAKIM), has become a gold standard for halal products both domestically and internationally.

According to Dr. Mohd Na’im Mokhtar, the government has meticulously reviewed the existing laws at both the federal and state levels. The conclusion: these laws are still highly effective in regulating halal certification and ensuring compliance with Sharia law. “At the moment, the government is of the view that the existing laws and enactments in the states are still relevant and meet the current needs and requirements,” he reiterated during the parliamentary debate.

This legal framework covers all critical aspects of halal certification, from the sourcing of raw materials to production processes and final product distribution. The overarching goal is to ensure that all stages of production adhere to Islamic principles, providing consumers with products that meet the stringent criteria set by Sharia law.

The Significance of Halal Certification

For Muslims, halal certification is more than just a label; it’s a guarantee that the products they consume adhere to Islamic dietary laws. The certification process examines everything from the ingredients used to the methods of preparation, ensuring that all aspects of production comply with religious guidelines. This level of scrutiny is essential for maintaining the trust of Muslim consumers, both in Malaysia and around the world.

Halal certification is also a powerful tool for businesses. Companies that obtain halal certification can tap into a rapidly growing global market. The global halal market is expected to reach USD 2.4 trillion by 2024, with halal food making up a significant portion of this figure. For businesses, especially those looking to expand into Muslim-majority markets, having a halal certification can significantly enhance their marketability and sales potential.

In Malaysia, the numbers speak for themselves. As of the latest data, 8,272 companies in the industrial category currently hold the SPHM. This includes a significant number of small and medium enterprises (SMEs), with 7,306 SMEs holding the certification. Among these, 3,270 are Bumiputera-owned companies, underscoring the importance of halal certification in empowering local businesses and fostering economic growth.

Why No New Halal Certification Law in Malaysia?

The call for a new halal certification law in Malaysia has been driven by a variety of factors, including evolving consumer expectations, the globalization of the halal market, and technological advancements. However, Dr. Mohd Na’im Mokhtar clarified that the current framework, backed by JAKIM’s rigorous standards, already provides a comprehensive and reliable system for halal certification.

The existing laws cover all necessary aspects of halal certification, from the sourcing of raw materials to the final product, ensuring that all stages of production comply with Islamic law. The SPHM certification process is recognized and respected globally, with many countries looking to Malaysia as a model for developing their halal standards.

Furthermore, the Minister pointed out that Malaysia’s halal certification laws are not static; they are regularly reviewed and updated to keep pace with new developments and emerging challenges. This dynamic approach ensures that the legal framework remains relevant and effective, capable of addressing new issues as they arise without the need for entirely new legislation.

The Global Halal Market and Malaysia’s Leadership

Malaysia’s leadership in halal certification extends far beyond its borders. The country’s rigorous standards and comprehensive certification process have made it a key player in the global halal industry. The SPHM certification is recognized internationally, making it easier for Malaysian companies to export their products to other countries. This international recognition further solidifies Malaysia’s role in the global halal market, with its rigorous standards serving as a benchmark for other nations.

The global halal market is vast and growing, driven by increasing demand from Muslim consumers around the world. According to recent reports, the global halal food market alone is projected to reach USD 1.9 trillion by 2027, growing at a compound annual growth rate (CAGR) of 6.3% from 2020 to 2027. This growth is being fueled by a combination of factors, including the expanding Muslim population, increasing consumer awareness of halal products, and the rising popularity of halal food among non-Muslim consumers.

Malaysia’s position as a leader in halal certification has not only bolstered its domestic market but also established the country as a key player in the global halal industry. The government’s commitment to maintaining the highest standards of halal certification ensures that Malaysian products are competitive in the global market. This, in turn, supports the growth of the country’s halal industry, contributing to Malaysia’s economic development and enhancing its reputation as a global halal hub.

Addressing Future Challenges in Halal Certification

While the current legal framework is robust, it is not without challenges. The rapid growth of the halal market, coupled with technological advancements and changing consumer preferences, means that Malaysia’s halal certification laws must continue to evolve. The government has recognized this need and is committed to ensuring that the legal framework remains relevant and effective.

One of the key challenges facing the halal certification industry is the increasing complexity of global supply chains. As more companies source ingredients and products from multiple countries, ensuring compliance with halal standards becomes more challenging. To address this, JAKIM has been working closely with international partners to harmonize halal standards and ensure that Malaysian halal certification remains globally recognized and respected.

Another challenge is the rise of new technologies, such as blockchain, which have the potential to transform the halal certification process. Blockchain technology can provide greater transparency and traceability in supply chains, helping to ensure that products are halal-certified at every stage of production. The Malaysian government is actively exploring the use of such technologies to enhance the halal certification process and maintain the trust of consumers and businesses.

While the halal market continues to grow and evolve, Malaysia’s existing halal certification laws remain sufficient to meet current demands. The government’s commitment to maintaining these standards ensures that both consumers and businesses can continue to trust the integrity of the halal certification process in Malaysia. The robust legal framework, coupled with JAKIM’s stringent certification process, positions Malaysia as a global leader in halal certification, ready to meet the challenges of the future without the need for new legislation.

As Malaysia continues to lead in the global halal market, the emphasis remains on maintaining the highest standards of halal certification, ensuring that products not only meet local requirements but also have a competitive edge in the global market. This commitment to excellence ensures that Malaysia’s halal certification law continues to serve its purpose effectively, supporting both the local economy and the broader Muslim community worldwide.

The future of halal certification in Malaysia looks promising, with the country poised to remain at the forefront of the global halal industry. By continually reviewing and updating its legal framework, and by embracing new technologies and international partnerships, Malaysia is well-positioned to maintain its leadership in halal certification for years to come.