Malaysia and Indonesia are set to establish a joint Halal Council aimed at enhancing cooperation and streamlining halal certification processes to facilitate trade between the two countries. The announcement was made by Malaysia’s Deputy Prime Minister, Datuk Seri Dr Ahmad Zahid Hamidi, during the Global Halal Summit 2026 in Kuala Lumpur.
The council will be chaired by Indonesia’s Halal Product Assurance Organising Agency (BPJPH), with Malaysia taking the role of secretary-general. Its inaugural meeting is scheduled for October 2026. The main goal is to simplify halal certification requirements and reduce redundancy, thereby making it easier for businesses in both countries to access each other’s markets.
This initiative builds on the 2023 memorandum of cooperation between Malaysia and Indonesia, as well as the bilateral negotiations completed in June 2026 concerning halal trade facilitation. Ahmad Zahid highlighted the complementary strengths of both nations: Malaysia’s expertise in standards, governance, Islamic finance, and trade facilitation, alongside Indonesia’s production capacity and entrepreneurial base. Together, these attributes are expected to foster halal diplomacy, creating new opportunities for investment and market expansion.
Ahmad Zahid emphasized that the partnership aims to remove barriers for companies, improve market access, and support small manufacturers and halal-certified businesses in their initial export efforts. He noted that the halal sector contributes around 11% to Malaysia’s gross domestic product, but only about 14.7% of halal-certified companies currently export their products abroad. Malaysia aims to raise its halal export value to approximately RM80 billion by 2030, supporting a broader effort to enable more companies to compete internationally.
The Deputy Prime Minister also addressed the challenges companies face beyond certification, including maintaining consistent production, proper packaging, access to working capital, reliable logistics, and market knowledge.
In addition to the council announcement, Ahmad Zahid provided an update on the International Halal Showcase (Mihas) 2026, which has recorded US$1.2 billion in sales during its first two days. The event, organised by the Malaysia External Trade Development Corporation and hosted by the Ministry of International Trade and Industry, features 2,000 booths, 1,700 exhibitors, and 450 buyers from 58 countries. It has attracted approximately 30,000 visitors, putting it on pace to become the most attended edition to date.
Mihas 2026 has also served as a platform for strategic agreements, including a Letter of Intent signed between Matrade and Malaysia’s Department of Islamic Development (Jakim), underscoring its growing importance in fostering international halal trade partnerships.