The Middle East as a region is often recognised as a global halal centre due to the majority of countries in this region being Muslim, from Saudi Arabia to the United Arab Emirates to Oman.
However, if going by sheer population size, the country with the largest Muslim population is actually not located in this region, but in South East Asia — namely Indonesia, which houses at least 205 million Muslims, representing some 87% of the overall population.
Neighbouring markets Malaysia and Brunei also have Muslim-majority populations, and given the ongoing troubles the region is currently facing due to the US-Israel-Iran war, experts believe that now is the time for the ASEAN halal sector to step up and take charge on a global scale.
“Everyone has heard about the geopolitical conflicts ongoing in the Middle East, and this actually does present an opportunity for the halal sector here in this region — all businesses looking for a stable yet halal-friendly environment to build and grow will be looking to us,” ethical advisory consultancy Dawn Horizon Founder and CEO Dewi Suratty told the floor during the recent Food and Hospitality Asia (FHA) event in Singapore.
“This means that ASEAN is now poised to emerge as the new halal growth market, and businesses will be looking to this region for leadership. We are also a collation of 11 different, unique markets which means that there are many different strengths we can offer, and many opportunities for intratrade as well.”
She stressed that the differences between each market means that any company that gains access into one country in the South East Asian bloc will then have even more opportunity to grow depending on its needs.
“ASEAN basically has something to suit everyone: If the firm wants a big halal consumer base then Indonesia is the undisputed target; for a more structured market then Singapore is the most suitable; to be the first mover of a product then Vietnam or Cambodia are there to be explored,” Dewi said.
“Companies looking at this region should be viewing growth here as a form of regionalisation to expand across the board, moving away from working in a silo or focusing on just one market.”
Regulations making this easier
The importance of halal food and halal tourism has reached such levels in this region that many governments such as Singapore and Vietnam are moving rapidly to enact strategies in this category.
“Singapore is well aware that the halal landscape thrives through co-operation and not competition, so the Islamic Religious Council of Singapore (MUIS) works with various different international halal councils to increase regulated access to our local foods and beverages for all Muslim consumers,” MUIS Director for Halal Development Muhammad Faizal Bin Othman said.
“Just last year, we implemented a new framework to recognise 88 foreign halal certification bodies 88 across the world, which not only opens up access to Muslim consumers from these markets but also strengthens our regulatory powers where needed.”
At over 15%, the Muslim population in Singapore is significant enough to be considered one of the country’s major religious groups so it is not surprising that it has a government body dedicated to halal advancement.
But the significance of this group is increasing so quickly that even other non-Muslim markets such as Vietnam have also implemented government-level focus on halal development.
“When I meet my counterparts in Vietnam, a Muslim-minority country, I can tell the government is really looking seriously at expanding the local halal market. It has already set up a specific office looking at halal certification, which reports to the local standards authority,” Indonesia’s Trade Attache to Singapore Billy Anugrah added.
“Vietnam’s interest stems from two things: The first is for export purposes as they want to be halal-ready for areas such as aquaculture and agriculture so they can export to halal markets; and the second is halal tourism as they are finding more and more Muslim tourists coming to Vietnam who need facilities and food — and will spend money on these.”
Can Indonesia lead the way to halal unity?
Although ASEAN’s diversity may grant it many advantages, it cannot be denied that this also presents a major challenge due to the many different halal certification systems involved.
As the country with the largest Muslim market, Indonesia has already been very vocal about its plans to lead the global halal market, starting with the mandate for all foods and beverages in the market to be halal-certified if not on a pre-approved Positive List since 2024.
“Indonesia wants to be the biggest halal player globally, that is no secret. We aim to get at least 15% to 17% of the market share of the total global halal industry,” Anugrah said.
“This is the reason we set up such premium halal standards, and indeed we do not see the halal mandate as an obstacle or trade barrier [but instead as] a way to achieve unfragmented trade in the halal industry, as we impose the same requirements on all companies, both local and foreign.”
Even micro, small and medium enterprises (MSMEs) will not be exempt from this requirement, and the Indonesian government has even doubled down on this group by introducing a simplified version of the halal certification system for their usage — basically meaning that ‘the process is too complicated’ and ‘the cost is too high’ will no longer be accepted as reasons for non-certification.
This reflects Indonesia’s determination to create some form of uniformity in halal regulations and management, and if it can successfully transition all local firms as it hopes, perhaps there is a possibility it will be able to use its learnings from this process to lead regional, or even global, halal harmonisation at a later date.
