Broader industry cooperation needed as Malaysia targets RM1 billion halal export growth

DEPUTY Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi has called for stronger cross-community cooperation in the halal industry, highlighting that around 67 per cent of companies supplying ingredients for halal products in the country are non-Muslim-owned.

Zahid, who also chairs the National Halal Council, said the reality underscores the need for Bumiputera and Muslim entrepreneurs to adopt a more collaborative approach with industry players across communities in order to strengthen Malaysia’s position in the global halal market.

He made the remarks during the launch of the Majlis Amanah Rakyat Halal Ecosystem at the World Trade Centre Kuala Lumpur.

“During the Malaysia International Halal Showcase (MIHAS) and a forum for halal ingredient producers, 67 per cent of halal ingredient manufacturers are our partners among non-Muslims,” he said.

He urged local businesses to move beyond traditional boundaries and develop strategic partnerships, including learning from non-Muslim industry players to improve competitiveness and expand export potential.

“Therefore, let us pool our efforts to learn to work together so that we can make them partners in the production of halal products from ingredients they produce.

“It is for the sake of export markets, for the sake of Malaysian products. We should not be in a small cocoon, but instead as Malaysians we must set aside religious differences among us to work with them in marketing and producing halal products through cooperation from all parties.

“We do not want this is Islam, this is non-Islam. We are a multicultural society. Although of different religions, they also want to pursue profit, and we also want to pursue profit.

“There is nothing wrong if they collaborate with them,” he said.

Zahid, who is also Minister of Rural and Regional Development, stressed that Malaysia must avoid operating in silos if it hopes to strengthen its global halal economy.

The event also saw the signing of a Memorandum of Understanding between MARA and Maybank Islamic Berhad to strengthen cooperation in entrepreneurship development, halal industry growth, access to financing, and market expansion.

In addition, a Letter of Intent was exchanged with the Department of Islamic Development Malaysia (JAKIM) to enhance halal training, certification, and competency development among MARA entrepreneurs and training institutions.

Zahid also announced a significant boost for Malaysia’s halal export ambitions, revealing that global retail chain Lulu Hypermarket had committed to purchasing and marketing MARA-produced halal goods worth US$100 million (RM395 million) starting July 1.

He said the commitment was conveyed by Lulu Group chairman Sheikh Yusuf Ali during a meeting with Prime Minister Datuk Seri Anwar Ibrahim last week.

“He has stated to the Prime Minister and myself that he plans to purchase halal products worth US$100 million from us.

“I personally told him in front of the Prime Minister that we must work with MARA to supply these halal products for the global market.

“I will instruct the MARA chairman and the director-general of MARA to coordinate the halal products that will be marketed by Lulu Hypermarket worldwide, especially in the Middle East,” he said.

Zahid said Malaysia’s halal industry is expected to surpass RM1 billion in international sales next year, up from RM819 million previously, driven by rising global demand and strengthened international partnerships. - May 4, 2026