Malaysia, Indonesia form joint Halal Council to strengthen bilateral trade

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Malay Mail

KUALA LUMPUR, Sept 25 — Malaysia announced the establishment of the Malaysia-Indonesia Halal Council in a bid to strengthen halal diplomacy between the two countries, said Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi today.

He added that the council would be chaired by Indonesia’s Halal Product Assurance Organising Agency (BPJPH) with Malaysia serving as its secretary-general, and the first meeting would be held in October this year.

“Next month, the focus is on facilitating halal certification between Malaysia and Indonesia to ease bilateral halal trade between the two countries,” he said in his speech at the Global Halal Summit 2026 here today.  

Ahmad Zahid said the council would build on existing bilateral cooperation between Malaysia and Indonesia to address differing halal requirements, repeated procedures and difficulties faced by businesses seeking to enter neighbouring markets.

Malaysia and Indonesia signed a memorandum of cooperation in 2023, while bilateral negotiations on facilitating halal certification and trade between the two countries were concluded in June this year, he said.

He said closer bilateral cooperation could identify practical ways to facilitate trade, reduce duplication and connect businesses to regional supply chains.

Ahmad Zahid said Malaysia brings experience in standards, governance, Islamic finance and trade facilitation, while Indonesia offers scale, production capacity and entrepreneurship, which are at the core of halal diplomacy, where both parties can leverage the trust built to open markets, facilitate investment and create opportunities together. 

He added that such cooperation should ultimately translate into fewer barriers, easier market access and more companies trading across borders.

He said small manufacturers should have a clearer route to overseas buyers, while halal-certified companies should receive the support needed to fulfil their first export orders.

“The future of halal will depend on how effectively we connect ourselves and build that trust in the future,” he said, adding that Malaysia aims to increase its halal exports to about RM80 billion by 2030.

Ahmad Zahid noted that the halal industry contributed about 11 per cent to Malaysia’s gross domestic product, yet only about 14.7 per cent of halal-certified companies were exporters.

“To realise our ambition, we must help more of these companies compete abroad. Certification is only the beginning of that journey. Companies also need consistent production, suitable packaging, working capital, reliable logistics and an understanding of their target markets,” he added.

Meanwhile, Ahmad Zahid shared that the International Halal Showcase (MIHAS) 2026 has attracted US$1.2 billion in sales over the first two days.  

Hosted by the Ministry of International Trade and Industry and organised by the Malaysia External Trade Development Corporation, MIHAS 2026 is being held from Sept 23 to Sept 26, 2026.

Ahmad Zahid hopes that sales and sales potential will continue to increase until MIHAS ends on Sunday, as the annual organisation of MIHAS has established the event as a global halal exhibition brand, despite several countries also organising similar exhibitions. — Bernama

Date: 25 September, 2026 2:00 pm
Source: Malay Mail

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