The global halal market is heating up, and the competition between Malaysia and Indonesia is intensifying. With projections estimating the market to reach a staggering $5 trillion by 2030, both nations are vying for the top spot. But what’s at stake, and what strategies are they employing to secure their dominance?
Malaysia’s Decade-Long Reign
For ten consecutive years, Malaysia has led the Global Islamic Economy Indicator rankings, a testament to its robust halal ecosystem. In 2024, Malaysia’s halal product exports reached a record high of RM61.79 billion, a 15% increase from the previous year. This success can be attributed to strategic government policies, industry initiatives, and technological advancements. Tengku Datuk Seri Zafrul Aziz, the Investment, Trade and Industry Minister, emphasized Malaysia’s commitment to maintaining its leadership position during the soft launch of the 21st Malaysia International Halal Showcase (Mihas) 2025.
Indonesia’s Ambitious Ascent
Indonesia, however, has set its sights on becoming the world’s leading producer of halal products. The Ministry of Industry is aggressively pursuing this goal, buoyed by the halal industry’s significant export transactions, which amounted to US$64.11 billion in 2024. Deputy Minister of Industry Faisol Riza highlighted the importance of strengthening the entire halal industry ecosystem at the Halal Indo 2025 expo event launch in Jakarta. Indonesia’s ranking in the global Islamic economy has improved, now placing third behind Malaysia and Saudi Arabia.
Key Areas of Competition
The battle for halal supremacy extends beyond food. It encompasses a wide range of products and services, including cosmetics, pharmaceuticals, fashion, finance, and tourism. Both countries are focusing on:
- Halal E-commerce: The increasing popularity of online platforms for purchasing halal products presents a significant opportunity. Businesses are capitalizing on this trend by building or partnering with halal-centric e-commerce platforms and leveraging AI-driven personalization.
- Halal Tourism: Catering to the needs of Muslim travelers is another key area. This includes offering halal-certified dining options, providing prayer facilities, and promoting cultural sensitivity.
The Future of Halal
The rise of halal e-commerce and the increasing demand for Muslim-friendly travel experiences signal a shift in the industry. Businesses are adapting by building halal-centric e-commerce platforms and offering halal-certified dining options and prayer facilities to attract Muslim travelers. As the global Muslim population grows and awareness of halal products increases, the competition between Malaysia and Indonesia is expected to intensify, driving innovation and growth in the halal market. The Kazan Halal Expo and Forum also attracts interests. Ultimately benefiting consumers worldwide.