This article first appeared in Forum, The Edge Malaysia Weekly on July 7, 2025 - July 13, 2025

When Thailand announced the MEGA HALAL Bangkok 2025 exhibition, its first international halal showcase scheduled for July, it signalled more than just a trade event. It marked a strategic shift in regional geopolitics. Thailand, despite being a predominantly Buddhist nation, is aggressively positioning itself as a leading halal export hub. And it is doing so with confidence, clarity and commercial intent.

In the meantime, Malaysia seems distracted. While we continue to rest on our global halal laurels, others are quietly building leaner, more export-ready halal ecosystems. Unless we confront the domestic gaps within our halal industry, Malaysia risks ceding both credibility and market share.

There is no question that Malaysia’s halal certification system is one of the most respected in the world. Jakim’s halal logo is recognised in more than 60 countries. It is often used by multinational corporations as a reference point when entering Muslim-majority markets. Our leadership in halal logistics, pharmaceuticals and services has been widely acknowledged.

Yet at home, we struggle with implementation. Many Malaysian food and beverage businesses, including prominent restaurant chains and small-scale enterprises, do not carry halal certification. Among bumiputera-owned firms, the certification rate is even lower. According to Datuk Dr Ameer Ali Mydin, managing director of Mydin Mohamed Holdings Bhd and president of the Bumiputra Retailers Organization, only 38.7% of the 9,162 halal-certified companies in 2023 were bumiputera-owned. This signals a deeper structural problem: Malaysia’s halal system may be internationally admired but it remains domestically underutilised.

The standard reasons are well rehearsed: high compliance costs; inflexible standards; and certification procedures that feel opaque to small business owners. But new empirical research suggests that consumer psychology may be playing an equally important role. A study by Ghazali and others (2022) highlights the growing reliance on tacit halal cues (THC), signals like Arabic signboards, Malay waitstaff or the restaurant’s location in a Muslim-majority neighbourhood as substitutes for formal halal certification. Consumers, especially younger Muslims, use these indirect cues to assess whether a restaurant is “halal enough”. In the absence of visible certification, they fall back on social markers.

Institutional pressure and religious obligation. The study found that social expectations and religious duty significantly shape Muslim consumers’ dining choices. Yet this does not necessarily translate into demand for certified establishments. If tacit indicators are perceived as sufficient, then certification becomes less of a priority for business owners.

In effect, Malaysia has created a consumer environment where informal heuristics are often treated as substitutes for formal assurance. This weakens both the incentive to certify and the value of the certification itself.

Thailand is constructing its halal ambition on commercial pragmatism, not cultural symbolism. The MEGA HALAL Bangkok 2025 event is part of a larger plan to establish itself as the halal gateway for Asian exporters to Middle Eastern, African and European markets.

Thailand’s strategy is clear:

•     It promotes halal certification as a trade enabler, not just a religious obligation;

•     It centralises oversight with streamlined and export-oriented halal governance;

•    It actively reduces ambiguity in certification processes, focusing on operational clarity.

Where Malaysia relies on religious authority and community trust, Thailand offers procedural transparency and commercial certainty. It is precisely this contrast that gives Thailand a competitive edge in positioning itself for global halal demand.

To retain its leadership, Malaysia must address several weaknesses within its domestic halal ecosystem.

1. Recognise the role of tacit halal cues:

We must acknowledge that many consumers rely on social and environmental heuristics to assess halal compliance. Certification outreach must not only highlight technical standards but also challenge the false equivalence between “Muslim-looking” and “halal-assured”.

2. Introduce progressive certification tiers:

A binary certification system discourages smaller operators. A tiered model, ranging from partial compliance to full certification, can allow small and medium enterprises to participate without being immediately disqualified due to premises or process limitations.

3. Make certification visibly valuable:

Halal certification should be more than a document on the wall. It must function as a competitive asset. This includes visibility through digital directories, integration into delivery platforms and incentives for certified outlets in procurement and tourism campaigns.

4. Strengthen halal literacy among consumers and entrepreneurs:

Public awareness campaigns need to go beyond dietary rules. Consumers should understand what certification entails and business owners should see it as a means of market access and legitimacy, not merely a bureaucratic burden.

5. Create a unified halal strategy across ministries: 

Currently, halal promotion is fragmented between Jakim, the Ministry of Investment, Trade and Industry, SME Corp and others. A national halal development road map, integrated across trade, education and enterprise policy, is urgently needed.

Malaysia’s halal standing is not just symbolic; it has economic weight. According to Adroit Market Research, the global halal market is projected to reach US$3 trillion by 2029. If Malaysia fails to close its domestic credibility gaps, we risk losing not only investor confidence but also regional influence. Thailand’s MEGA HALAL Bangkok 2025 is more than a trade fair. It is a calculated signal to buyers, exporters and investors that Thailand is ready to lead. Malaysia must ask itself whether it is still in the race or simply watching from the sidelines.

The choice is ours. Malaysia can lead by enabling broader halal participation or risk losing ground to competitors more attuned to today’s market realities.

Dr Dilip Mutum is professor of marketing at the School of Business, Monash University Malaysia. Dr Ezlika Ghazali is associate professor of marketing at the Faculty of Business and Economics, Universiti Malaya.

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