Malaysia proposes setting up Asean Halal Council
KUALA LUMPUR: Malaysia has proposed the creation of an Asean Halal Council to strengthen strategic cooperation in the regional halal industry, facilitate the entry of halal products between countries, and boost intra-Asean trade, which has yet to reach its full potential.
Halal Development Corp (HDC) chairman Azwan Harun said Malaysia made the proposal during the Malaysia-Indonesia halal industry roundtable session in Jakarta on April 22, which was also attended by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi and the head of Indonesia's Halal Product Assurance Organising Agency, Ahmad Haikal Hassan.
'This Asean Halal Council will serve as a platform to streamline trade, expand markets, and harmonise the use of halal logos while also tapping into a regional market of nearly 700 million people,' Azwan told Bernama.
At the conference, both countries also proposed easing the entry of halal products by mutually recognising Malaysian and Indonesian halal certificates without additional procedures or inspections.
Azwan said this will not only save costs and time, but is expected to boost bilateral trade between Malaysia and Indonesia, especially for micro, small, and medium enterprises seeking to penetrate a combined market of over 240 million Muslims.
'Malaysian products certified halal and regulated by the Department of Islamic Development Malaysia can be marketed directly in Indonesia, and vice versa.
'This is a game changer that will immediately increase the export value of our halal products,' he said.
Azwan added that Malaysia and Indonesia have agreed to lead efforts to enhance intra-Asean trade, particularly for halal products, to capitalise on the potential of the regional halal market, currently valued at about US$1.3 trillion.
'Malaysia and Indonesia play a catalytic role in this effort, as both are the largest Islamic economies in the region.
'Strengthening halal trade among Asean countries will position the grouping as a competitive halal economic bloc,' he said.
Azwan noted that these three strategic outcomes align with the Halal Diplomacy framework outlined by the government through HDC to ensure Malaysia remains a global leader in the halal industry.
He added that the implementation of the three key initiatives will be refined at the Halal Industry Development Council meeting on May 29, chaired by Ahmad Zahid, before being officially finalised by the Asean Secretariat.
According to Azwan, the concept of halal diplomacy, led by Ahmad Zahid, focuses on sharing Malaysia's expertise in developing the halal ecosystem with friendly countries, particularly within Asean.
He said Malaysia, through HDC, has taken a proactive approach to expanding the influence of the halal industry into non-traditional markets such as North Africa, Central Asia, and West Asia through a strategy called 'halal diplomacy'.
'We cannot move alone. Malaysia and Indonesia need to collaborate as a unified Asean halal entity to meet the global halal market demand, as producing countries can only fulfil 20% of the requirements.
'HDC is also working with the Investment, Trade and Industry Ministry, and the Malaysia External Trade Development Corp to accelerate business matching between Malaysian and Indonesian halal industry players, including in halal logistics, pharmaceuticals and halal park development.'
Malaysia aims to achieve halal export values exceeding RM260bil by 2030 under the Halal Industry Master Plan by promoting six key sectors: food and beverages, ingredients, logistics, cosmetics and nutraceuticals, medical devices and pharmaceuticals.
Meanwhile, Azwan urged halal industry players to be more aggressive in realising the digital transformation of the halal system, including certification and standards, to ensure Malaysia maintains its position as a leading global halal ecosystem.
He said this transformation is crucial to enhancing the efficiency and transparency of the halal supply chain, in line with advancing technologies and increasingly sophisticated market demands.
A science, technology, and innovation (STI)-based approach is also seen as a key driver in revolutionising the local halal system through technologies such as blockchain, artificial intelligence and the Internet of things, he added.
'Digital transformation will not only accelerate certification processes but also boost consumer confidence and facilitate monitoring of halal standard compliance throughout the value chain.
'Malaysia, which has long been a benchmark in the development of the global halal industry, now faces the challenge of remaining relevant in the digital era,' he said.
Therefore, he added that close collaboration among government agencies, industry players and STI researchers is essential to realise a sustainable and competitive digital halal ecosystem.
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