Malaysia's Halal Industry: Certification, Trade and the Global Halal Hub Strategy

The halal logo on a product in Malaysia is backed by an array of government agencies, technical standards and trade law, making it not merely a religious mark but also a regulated element of commerce. Halal is a concept in Islamic law referring to what is permitted; in Malaysia, it has also become an economic sector that is officially measured, planned and marketed.

This article compiles the official figures and structure of Malaysia’s halal industry descriptively. Because halal is grounded in religious law, the content here states facts and the positions of the authorities without judging religious interpretation.

What makes Malaysia’s halal certificate commercially valuable?

In Malaysia, halal certification is issued by the Department of Islamic Development Malaysia (JAKIM) at the federal level, with the State Islamic Religious Councils (MAIN) for some states. JAKIM refers to the Malaysian Standard MS 1500 — the standard for the production, preparation, handling and storage of halal food — as the technical basis for certification. MS 1500 was developed under the national standards system, with JAKIM chairing the relevant technical committee.

The commercial value of this certificate comes from two sources. First, international recognition: according to a Ministry of Finance reference, Malaysia’s halal certification is accepted by 84 halal certification bodies in 46 countries, reducing the need for exporters to obtain multiple certificates for different markets. Second, legal backing: the description “halal” in trade is regulated under the Trade Descriptions Act 2011 and the Trade Descriptions (Certification and Marking of Halal) Order 2011. The Ministry of Domestic Trade and Cost of Living (KPDN) enforces these provisions in cooperation with JAKIM, making the misuse of the halal label a prosecutable offence.

How large is the halal industry within Malaysia’s economy?

The most comprehensive official measure comes from the Economic Census 2023 (halal statistics) by the Department of Statistics Malaysia (DOSM), which uses 2022 as the reference year. Its headline figures:

Indicator (2022)	Value
Number of halal establishments	12,424
Gross output	RM417.2 billion
Value added	RM98.2 billion
Intermediate input	RM319.0 billion
Value of fixed assets	RM105.8 billion
Total employees	610,672

By sector, manufacturing is the largest contributor with 3,590 establishments generating gross output of RM347.8 billion and value added of RM61.4 billion. The services sector comprises 8,464 establishments (gross output RM59.6 billion), while agriculture recorded 370 establishments (RM9.9 billion). Micro, small and medium enterprises (MSMEs) represent 62.4% of all halal establishments — 7,748 establishments generating gross output of RM86.7 billion. All of these figures are based on the DOSM Economic Census 2023 (halal statistics) tabulations.

For a longer-term perspective, a Ministry of Finance reference records the halal industry’s contribution to GDP at 7.5% (2020), with a target of 8.1% by 2025 under the Twelfth Malaysia Plan.

How are halal exports growing?

Exports are the backbone of Malaysia’s halal strategy. Official data shows consistent growth:

• 2020: RM30.5 billion (Ministry of Finance reference)
• 2021: RM36.3 billion — up 19.0% from 2020 (Ministry of Finance reference)
• 2023 (full year): RM53.72 billion (MITI, reported April 2025)
• 2024 (full year): RM61.79 billion — up 15% from 2023 (MITI, reported April 2025)
• Part-year comparison: Jan–Sep 2023 RM39.36 billion versus Jan–Sep 2024 RM45.04 billion (MITI/MIDA)

According to a Ministry of Finance reference, about 13.5% of the RM36.3 billion in halal exports in 2021 was contributed by MSMEs, with the remainder by large companies and multinationals. According to MITI, the 2024 export growth was driven in part by the food and beverage, finance and tourism sectors.

What is the role of HDC and the global halal hub strategy?

Beyond certification, Malaysia is building a halal development ecosystem. The Halal Development Corporation (HDC), an agency under the umbrella of the Ministry of Investment, Trade and Industry (MITI), plays a role in coordinating the development of halal parks, training and industry promotion — while the mandate to issue certificates remains with JAKIM. A Ministry of Finance reference records cumulative investment in halal parks of RM16.1 billion since 2011, with 295 companies operating across 21 halal parks.

The long-term aspiration is guided by the Halal Industry Master Plan (HIMP) 2030, which sets growth targets to expand Malaysia’s participation in the global halal market. Under the Thirteenth Malaysia Plan (RMK-13), tabled on 31 July 2025, the government targets halal exports of RM80 billion and a 11% contribution to GDP. Among the measures announced are the establishment of a halal commission as well as the development of new halal industrial parks in Melaka, Perak and Kelantan.

What are the challenges and differing views?

Policy discussion on the halal industry encompasses several differing positions, stated here factually:

• Certification capacity. Deputy Minister of Investment, Trade and Industry Liew Chin Tong stated that Malaysia’s ability to command the halal market is still held back by the low issuance of halal certificates by JAKIM — an issue linking the rate of certification to export potential (MITI/MIDA).
• Single-authority governance. The proposed establishment of a halal commission under RMK-13 reflects an effort to consolidate halal governance. Some argue a single authority enhances trust and consistency, while others emphasise the existing role of MAIN at the state level.
• MSME access. Given that MSMEs make up 62.4% of halal establishments but only a small share of exports, discussion often touches on the cost, procedures and support of certification for small businesses.

These matters involve policy interpretation and, in certain cases, religious law that falls within the jurisdiction of the competent authorities. This article takes no position on any interpretation.

What’s next

This draft compiles existing official figures and still requires human review. Several developments are worth monitoring through official sources: the implementation of the halal commission proposed under RMK-13 and its implications for the JAKIM–MAIN governance structure; updates to DOSM halal statistics after the 2022 reference year; and the full-year export figures released by MITI/MIDA. Readers who need certification details are encouraged to refer directly to the official JAKIM and KPDN portals, as the technical requirements and lists of recognised bodies are updated from time to time.