With only 14.7 per cent of Malaysia’s halal-certified companies exporting, the neighbours will begin work in October on easing certification hurdles and facilitating trade.
By PHUBIEYAS AHMAD
KUALA LUMPUR, Sept 26 — A halal certificate has not been enough to take most Malaysian companies overseas. Only 14.7 per cent of halal-certified firms export, a gap Malaysia and Indonesia hope to address through a new joint council aimed at making cross-border trade easier.
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi announced the Malaysia–Indonesia Halal Council on Friday at the Global Halal Summit 2026 at the Malaysia International Trade and Exhibition Centre (MITEC). The deputy prime minister officiated GHaS at MITEC on behalf of the Prime Minister Datuk Seri Anwar Ibrahim.
Indonesia’s Halal Product Assurance Organising Agency (BPJPH) will chair the council, while Malaysia will serve as its secretary-general. Its first meeting is scheduled for October, with facilitating halal certification and reducing duplicated processes among its initial priorities.
The announcement follows a memorandum of cooperation signed by the two countries in 2023. Zahid said bilateral discussions on facilitating halal certification and trade were concluded in June this year.
The council’s task now is to turn that cooperation into practical changes for businesses. Companies entering another market can face differences in standards, certification and accreditation, as well as repeated procedures that add time and cost.
A Step Towards An ASEAN Council
Zahid has proposed using the bilateral effort as a starting point for a wider ASEAN Halal Council. At the Halal 20 Summit in Jakarta on Sept 18, he proposed launching the regional body in Malaysia in September 2027, with Malaysia offering to host its secretariat and Indonesia proposed as its first chair.
The ASEAN arrangements still require agreement from member states. The proposal has been submitted to the ASEAN Secretariat for further consideration.
For Malaysian businesses, Zahid said certification was only the beginning. Firms seeking export orders also need dependable production, suitable packaging, working capital, logistics and an understanding of the markets they want to enter. Malaysia is targeting halal exports of around RM80 billion by 2030.
Zahid said the bilateral council’s initial focus would be to make certification easier, cut duplicated processes and smooth halal trade between the two countries. He expressed hope that the cooperation would help lay the groundwork for a more structured ASEAN framework.
MIHAS Reports Strong Early Interest
The announcement came during the 22nd Malaysia International Halal Showcase (MIHAS), which recorded US$1.2 billion in potential sales in its first two days. Potential sales represent prospective business generated through the event, rather than completed exports.
MATRADE said 30,000 visitors had attended by the end of the second day, against a target of 50,000. This year’s showcase brings together 1,700 exhibitors across 2,000 booths and 450 international buyers representing 58 countries.
MIHAS also saw the exchange of a letter of intent between MATRADE and the Department of Islamic Development Malaysia (JAKIM) for a Halal Development Officer Programme. Under the initiative, MATRADE officers stationed abroad will help foreign industries understand Malaysia’s halal ecosystem and support efforts to expand halal exports.
Hosted by the Ministry of Investment, Trade and Industry and organised by MATRADE, MIHAS concludes today with its public day. The joint council’s October meeting will provide an early indication of whether Malaysia and Indonesia can make halal trade simpler for the companies seeking to cross their borders.
- TNS NEWS