Halal certification drives economic growth, not a burden: Reezal Merican

Matrade chairman emphasises certification plays an important role in positioning Malaysia as global halal industry leader

Malaysia External Trade Development Corporation (Matrade) chairman Datuk Seri Reezal Merican Naina Merican has responded to Seputeh MP Teresa Kok’s comments about halal certification. – Azim Rahman/Scoop pic, September 9, 2024

KUALA LUMPUR – Malaysia External Trade Development Corporation (Matrade) chairman Datuk Seri Reezal Merican Naina Merican has rejected the claim by Seputeh MP Teresa Kok that halal certification would burden Malaysian businesses. 

In response, Reezal highlighted that halal certification is critical for expanding Malaysian products into international markets, particularly as the global halal industry is projected to be worth US$ 5 trillion by 2030.

In a detailed statement, Reezal emphasised that halal certification “plays a critical role in positioning Malaysia as a leader in the global halal industry.” 

He pointed out that Malaysia is a frontrunner in the sector, setting high standards of excellence and innovation. 

“Malaysia’s leadership in this sector is undeniable, always pushing boundaries and raising standards globally,” he said.

He added that Malaysia’s efforts to develop its halal industry are being spearheaded by multiple government ministries and agencies, including Matrade and the Halal Development Corporation (HDC), which both operate under the International Trade and Industry (Miti) Ministry. 

HDC assists businesses in complying with pre-certification requirements, ensuring a smoother application process before certification by the Department of Islamic Development Malaysia (Jakim).

Reezal also underscored that halal certification is more than just a label as it signifies adherence to stringent safety and quality guidelines. 

“Halal certification is not merely a label; it represents stringent safety and quality guidelines that protect consumers and elevate product standards,” he said, adding that the government has made efforts to ensure that the certification process remains efficient and business-friendly.

He said the benefits of halal certification extend beyond religious adherence as it opens up access to a vast global market of 1.9 billion Muslim consumers, representing 24% of the world’s population, while building trust and confidence in the quality of products. 

Reezal also highlighted that Jakim is committed to ensuring the certification process is “cost-effective and efficient”, addressing concerns over potential administrative burdens for businesses.

He further highlighted the significant role the halal industry plays in supporting local businesses, particularly small and medium-sized enterprises (SMEs), which benefit from producing halal goods for export. In 2023, halal exports contributed RM53.72 billion to Malaysia’s economy, and this figure is expected to rise to RM75.2 billion by 2030.

Malaysia’s status as a global halal hub has also attracted investment from multinational corporations such as Coca-Cola, Nestlé, and Kellogg’s, enhancing its position as a leader in the industry. The halal sector contributed 7.4% of Malaysia’s gross domestic product (GDP) in 2022, amounting to RM108.5 billion, and this is expected to increase to 10.8% (RM231.1 billion) by 2030.

Reezal also spoke about major international trade events such as the upcoming Malaysia International Halal Showcase (Mihas), set for September 2024. 

“Mihas continues to elevate Malaysia’s profile in the global halal market, with participation from exhibitors from within and outside the country,” he said.

“Our strong commitment to halal practices inspires confidence globally, further enhancing Malaysia’s leadership in this rapidly growing industry.” 

Yesterday, Kok defended her call for the government to review Jakim’s proposal to make halal certification mandatory for all food businesses, including those that do not serve pork or alcohol. Kok clarified that her concerns were not intended to disrespect Islam but were raised in the interest of protecting businesses from the added costs and administrative pressures associated with mandatory certification.

Her statement has led to a police investigation under the Sedition Act and the Communications and Multimedia Act. Despite this, she reiterated her support for halal certification, stressing that it should remain voluntary.

Kok argued that businesses should be able to decide based on market demands without being forced into compulsory certification, which could impose additional challenges on smaller businesses.

The Democratic Action Party (DAP) leadership has expressed support for Kok, with Secretary-General Anthony Loke stating that her remarks were made as part of her responsibilities as an elected representative. The party has assured that legal support will be provided as Kok faces investigation. – September 9, 2024