The global halal market is heating up, and Malaysia is positioning itself as a key player with Penang leading the charge. The newly formed Penang Halal Industry Council, approved on January 22, 2025, aims to coordinate and drive growth within the state’s halal sector. This initiative arrives as global dynamics shift, with Russia exploring new halal export routes through Morocco.
Penang’s Halal Push
Penang’s strategic move underscores Malaysia’s commitment to expanding its halal industry. Currently, 870 companies in Penang are certified under the Malaysian Halal Certification Scheme (SPHM), encompassing a diverse range of sectors from food and beverage to pharmaceuticals and medical devices. The Penang Halal Industry Council’s formation is poised to streamline operations and enhance the competitiveness of these businesses on the global stage.
Global Halal Market Growth
The global halal food market is experiencing robust growth, projected to reach US$ 4,116.57 billion by 2031, up from US$ 2,488.50 billion in 2024, with a CAGR of 7.6%. This surge is driven by increasing awareness of the health benefits associated with halal products and a growing global Muslim population. Innovations in Islamic finance, such as the launch of a $150m Shariah-compliant private credit fund by Amwal Capital Partners, further support this expansion.
Russia’s Moroccan Halal Route
Amidst these developments, Russia is actively seeking to strengthen its halal ties with Morocco. Tatarstan’s Committee for Halal Standards is pursuing accreditation in Morocco to boost halal exports, targeting $15 million in 2025. This move reflects a broader strategy to diversify export routes and tap into Morocco’s established halal infrastructure. Morocco has also been expanding its global halal footprint, with IMANOR signing a recognition agreement with Singapore’s Halal Authority in June 2024.
Implications and Future Outlook
The convergence of Penang’s proactive industry council, the global halal market’s expansion, and Russia’s strategic partnerships highlights the dynamic nature of the halal economy. As the halal food industry is projected to reach USD 4.12 billion by 2031, the establishment of halal certification has grown in importance. Businesses must be aware of halal certification for various sectors, including food, cosmetics, and pharmaceuticals. Fintech companies are also exploring Shariah-compliant financial services, such as cryptocurrency payment options in the halal food sector, which will impact the growth and accessibility of Islamic finance.
For Malaysia, the Penang initiative could serve as a model for other states, further solidifying the country’s position as a halal hub. Meanwhile, the collaboration between Russia and Morocco signifies the growing interconnectedness of the global halal network, creating new opportunities and challenges for businesses worldwide.