Malaysia’s halal model emerges as tool of statecraft

KUALA LUMPUR, Malaysia (MNTV) – Malaysia has successfully transformed halal governance from a matter of religious compliance into a strategic instrument of soft power, blending moral authority with economic ambition and foreign policy, according to an analysis published by Fulcrum. 

Anchored by the Department of Islamic Development Malaysia (JAKIM) and the Halal Industry Development Corporation (HDC), the country has positioned halal as both a trusted global brand and a driver of growth across food, finance, tourism, cosmetics and logistics.

What began as a framework to ensure adherence to Islamic dietary laws has evolved into a vast, transnational industry. The global halal food market was valued at nearly $2 trillion in 2021 and is projected to almost double by 2027, underscoring its economic and geopolitical significance. 

For Malaysia, halal policy is not a negotiable technicality but a core component of national identity and strategy. This was evident during trade discussions with the United States, when Kuala Lumpur resisted pressure to dilute halal import requirements—signalling that standards are as much about sovereignty and credibility as they are about commerce.

Scholars note that the halal sector’s expansion now extends well beyond food and beverages. Halal-certified pharmaceuticals and health products are emerging as a high-potential niche, while halal cosmetics are projected to become a multibillion-dollar market. 

Halal tourism, too, has gained prominence, with Muslim-friendly hospitality and services forming part of a broader “halal lifestyle” economy. In Malaysia, these developments align with a political project to present the country as a modern, progressive Muslim-majority nation that reconciles faith with global integration.

This approach fits squarely within the logic of soft power—the ability to shape preferences and norms through culture, values and institutions. It also reflects what political scientists describe as “Islam as statecraft”, where governments actively deploy Islamic norms and authority to bolster legitimacy, build alliances and project influence abroad. 

Malaysia’s halal governance exemplifies this dynamic: religious authority is translated into economic strategy, and certification becomes a diplomatic resource. 

Through JAKIM and HDC, Malaysia has helped define what counts as “trusted” halal at the international level. Mutual Recognition Agreements (MRAs) have been central to this effort, allowing Malaysian certification to be accepted overseas and positioning the country as a standard-setter. 

These agreements facilitate trade by easing market access for exporters, while simultaneously reinforcing religious and cultural ties by affirming shared Islamic values. In this sense, halal functions as both an economic lubricant and a symbol of moral credibility.