Malaysia: Malaysia's institutional credibility remains a key competitive advantage in the global halal certification landscape, underpinned by the internationally recognised halal certification system developed by the Department of Islamic Development Malaysia (JAKIM).

According to BERNAMA News Agency, JAKIM is widely regarded as a benchmark for rigour, consistency, and operational maturity. Malaysia's influence in the halal industry is attributed to the perception that its certification system is technically credible, professionally managed, and internationally recognised.

Malaysia also benefits from a relatively affluent consumer base, with 47.6 percent of households projected to earn above US$25,000 in 2026, which is higher compared to Muslim-majority developing markets such as Turkey (25.9 percent) and Indonesia (9.6 percent).

Additionally, Malaysia has developed a broader halal ecosystem that includes Islamic finance, tourism, pharmaceuticals, and export-oriented manufacturing. Malaysia moved early to formalise halal governance, introducing state-recognised halal certification at the national level in 1994 under the then Food and Islamic Consumer Products Division of JAKIM.

In contrast, several other Muslim-majority countries developed strong halal frameworks later or adopted more decentralised approaches. For example, Indonesia had a long-established halal ecosystem through the Council of Indonesian Ulama (MUI), but the shift to a more formal state-led framework under the Halal Product Assurance Organising Agency (BPJPH) came later, after the body was formally established in 2017.

In a fragmented global market, countries and companies often seek certifiers that are already widely trusted. Malaysia has succeeded in making its certification system commercially valuable beyond its own borders. However, Malaysia's disadvantage is its relatively small domestic market, which limits its ability to compel international firms to align as Indonesia could through sheer demand size. Additionally, even highly regarded certification bodies do not enjoy universal recognition.

Globally, the halal economy has expanded from a niche religious compliance issue into a significant international trade and regulatory system, with halal food and drink being its largest and most developed segment.

Halal food and drink spending is expected to grow from US$1.3 trillion in 2026 to US$1.8 trillion by 2030, representing an annual growth rate of 6.9 percent over the forecast period (2026-2030), driven largely by strong economic expansion in Muslim-majority markets. However, certification systems remain fragmented across countries and certifying bodies, creating complexity for retailers, manufacturers, and exporters, raising costs, and slowing market entry.