Tengku Zafrul Says Halal Standards Are Non-Negotiable in US Trade Talks

Kuala Lumpur, Malaysia – In a strong statement reinforcing Malaysia’s commitment to Islamic trade principles, Tengku Zafrul Abdul Aziz, the Minister of Investment, Trade, and Industry, declared that the country’s Halal standards are non-negotiable in ongoing trade discussions with the United States. The announcement comes as both nations seek to deepen economic cooperation, with Malaysia emphasizing that any trade agreement must fully respect its Halal certification requirements.

Why Malaysia’s Halal Standards Are a Deal-Breaker

Malaysia is a global leader in Halal certification, with its standards regulated by JAKIM (Department of Islamic Development Malaysia). The country’s Halal industry is a major economic contributor, generating over RM40 billion (approx. $8.5 billion) annually and serving as a benchmark for Islamic-compliant products worldwide.

Tengku Zafrul stressed that Malaysia will not compromise on its Halal regulations. He explained that weakening these standards would undermine consumer trust in Malaysian Halal products, which have earned a strong reputation for quality and strict compliance with Islamic principles. Additionally, any dilution of the certification process could damage Malaysia’s standing as a leading Halal authority and weaken the integrity of its export market, which spans critical sectors such as food, pharmaceuticals, cosmetics, and logistics.

“Our Halal certification is not just a label—it’s a promise of quality and compliance with Islamic principles. Any trade deal with the US must recognize this,” he stated firmly during a recent press briefing.

US-Malaysia Trade Relations: Opportunities and Challenges

The United States is one of Malaysia’s top trading partners, with bilateral trade reaching $78.2 billion in 2023. However, a key sticking point in negotiations is the difference in Halal certification systems between the two nations.

Malaysia follows a centralized, government-regulated Halal certification process under JAKIM, ensuring uniformity and strict adherence to Islamic requirements. In contrast, the US lacks a federal Halal authority, relying instead on private certifiers, which has led to inconsistencies in standards and occasional controversies over certification validity.

Potential Roadblocks in Negotiations

One major challenge is securing US recognition of JAKIM’s authority. Without formal acknowledgment from American regulators, Malaysian officials fear that Halal-certified products entering the US market might face unnecessary scrutiny or rejection.

Another hurdle is the harmonization of standards. American exporters may need to adjust their production processes significantly to meet Malaysia’s stricter Halal requirements, potentially increasing costs and complicating supply chains.

Additionally, disputes could arise over intellectual property and labeling, particularly regarding the use of Halal logos and trademarks. Without mutual recognition, there’s a risk of legal conflicts over certification marks, which could delay trade implementation.

Industry experts suggest that the US may need to adopt a more structured approach to Halal compliance to secure a stronger trade relationship with Malaysia. This could involve establishing clearer federal guidelines or working with JAKIM to develop mutually recognized certification protocols.

Economic Implications of a Halal-Compliant Trade Deal

A successful agreement that respects Malaysia’s Halal requirements could bring significant benefits to both economies.

For Malaysia, the deal could lead to increased exports of Halal food, cosmetics, and pharmaceuticals to the lucrative US market. Given America’s large Muslim population and growing interest in ethical consumption, Malaysian producers stand to gain substantially from improved market access.

The agreement would also strengthen Malaysia’s position as the global Halal hub, attracting more foreign investment into its Halal industrial parks and certification services. Furthermore, US-based manufacturers seeking Halal certification for global exports may increasingly turn to Malaysian authorities, boosting the country’s certification revenue.

For the United States, the benefits are equally compelling. American businesses would gain access to the booming global Halal market, which is projected to exceed $5 trillion by 2030. This is particularly valuable for US food and beverage companies looking to expand into Muslim-majority markets where Malaysia’s Halal certification carries significant weight.

Moreover, strengthened trade relations with Malaysia could serve as a gateway for deeper economic ties with other ASEAN nations, where Halal compliance is increasingly important in trade agreements.

Global Halal Market: Why This Matters Beyond Malaysia & the US

The Halal industry is experiencing rapid global growth, driven by several key factors. The world’s Muslim population continues to expand, particularly in Asia and Africa, creating sustained demand for certified products. Interestingly, non-Muslim consumers are also increasingly choosing Halal products, associating them with higher hygiene standards, ethical production, and superior quality control.

Furthermore, the Halal concept has expanded well beyond food into sectors like finance, tourism, and pharmaceuticals. Islamic banking has seen particular growth, while Muslim-friendly travel and Halal cosmetics are emerging as major industries.

If the US and Malaysia can establish a mutually beneficial Halal trade framework, it could set an important precedent for future agreements between Western nations and Islamic economies. This would provide much-needed standardization in global Halal trade while opening new opportunities for businesses worldwide.

What’s Next in the US-Malaysia Trade Talks?

Negotiations are expected to continue intensively in the coming months. Malaysia’s position remains clear: any agreement must include full recognition of JAKIM’s Halal certification by US authorities. The country is also pushing for clear guidelines to help US exporters comply with Malaysia’s Halal laws and robust mechanisms to prevent fraudulent Halal labeling.

Tengku Zafrul remains optimistic about reaching an agreement but reiterates Malaysia’s firm stance: “We welcome trade, but not at the expense of our Halal integrity.” His comments suggest that while Malaysia values its economic relationship with the US, it will not compromise on principles that are fundamental to its national identity and economic strategy.

A Test Case for Halal Trade Diplomacy

The outcome of these talks will have implications far beyond bilateral trade. As one of the first major negotiations where Halal standards take center stage, the US-Malaysia discussions could establish important precedents for how Islamic trade principles are incorporated into international agreements.

Businesses across multiple sectors are watching closely, understanding that the decisions made now could reshape global Halal trade dynamics for years to come. Whether through mutual recognition agreements, standardized certification processes, or new trade protocols, the resolution of these talks may well determine how Halal commerce evolves in an increasingly interconnected global economy.