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KUALA LUMPUR, Sept 25 — Malaysia has formed the Malaysia-Indonesia Halal Council in an effort to enhance halal diplomacy between the two nations, according to Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi. The council, chaired by Indonesia's Halal Product Assurance Organising Agency (BPJPH), will convene its inaugural meeting in October.

The primary objective of the council is to streamline halal certification between Malaysia and Indonesia, thereby facilitating bilateral halal trade. Speaking at the Global Halal Summit 2026, Ahmad Zahid emphasized that the council aims to address conflicting halal requirements, repetitive procedures, and challenges faced by businesses when entering neighboring markets.

Both countries signed a memorandum of cooperation in 2023, and successful bilateral negotiations on halal certification and trade were concluded in June. By fostering closer bilateral cooperation, Malaysia and Indonesia can identify practical approaches to facilitate trade, minimize duplication, and connect businesses with regional supply chains.

Malaysia's expertise in standards, governance, Islamic finance, and trade facilitation, coupled with Indonesia's vast scale, production capacity, and entrepreneurial spirit, forms the foundation of this halal diplomacy objective. The halal industry contributes 11% to Malaysia's gross domestic product, yet only 14.7% of halal-certified companies export products.

To achieve the ambitious goal of increasing halal exports to RM80 billion by 2030, the government aims to assist more companies in entering international markets. The certification process is merely the initial step; enterprises must also obtain consistent production, appropriate packaging, adequate working capital, dependable logistics, and a deep understanding of their target markets.

The International Halal Showcase (MIHAS) 2026, hosted by the Ministry of International Trade and Industry and organized by the Malaysia External Trade Development Corporation, has already garnered $1.2 billion in sales during its first two days. While several countries host similar exhibitions, MIHAS has solidified its status as a prominent global halal event.