Malaysia and Indonesia announced the establishment of a joint halal council on September 25, 2026, setting the stage for a broader ASEAN Halal Council scheduled to launch by September 2027. The bilateral agreement was finalized on day three of the Malaysia International Halal Showcase (MIHAS 2026) and the Global Halal Summit (GHaS) at the Malaysia International Trade and Exhibition Centre in Kuala Lumpur, as the ongoing trade event reported $1.2 billion in sales and potential deals during its first two days.
Malaysia-Indonesia Halal Council Structure and Mandate
The newly formed Malaysia-Indonesia Halal Council will hold its inaugural meeting in October 2026. According to official announcements at the summit, Indonesia’s Badan Penyelenggara Jaminan Produk Halal (BPJPH) will chair the council, while Malaysia’s Department of Islamic Development (JAKIM) will operate as the secretariat.
The primary objective of the council is to streamline mutual certification facilitation, eliminate duplicate procedures, and ease cross-border trade between the two neighboring nations. Deputy Prime Minister Datuk Seri Dr. Ahmad Zahid Hamidi, who officiated GHaS on behalf of the Prime Minister, outlined the strategic division of labor between the two countries in his address.
“Malaysia brings experience in standards, governance, Islamic finance, and trade facilitation,” Ahmad Zahid said. “Indonesia brings extraordinary skills, production capacity, and entrepreneurship.”
The council builds upon a memorandum of cooperation signed in 2023, followed by bilateral negotiations that concluded in June 2026 to resolve differing halal requirements and reduce recurring administrative hurdles for businesses entering regional markets.
Economic Impact and MIHAS 2026 Performance
Trade figures released during the exhibition highlight the economic scale of the bilateral partnership. MIHAS 2026, hosted by the Ministry of International Trade and Industry and organized by the Malaysia External Trade Development Corporation from September 23 to September 26, 2026, pulled in $1.2 billion in sales and potential business deals over its initial two days.
The halal industry currently accounts for approximately 11 percent of Malaysia’s gross domestic product. However, government figures indicate that only about 14.7 percent of local halal-certified companies are currently active exporters. Malaysia maintains a broader target to increase its total halal exports to approximately RM80 billion by 2030.
Ahmad Zahid emphasized that regulatory certification represents only the initial step for expanding businesses. Companies require consistent production standards, appropriate packaging, working capital, dependable logistics, and direct insight into target overseas markets to secure sustained export growth.
Path to the ASEAN Halal Council
The bilateral framework between Kuala Lumpur and Jakarta is designed to serve as a foundational building block for a regional regulatory body. The planned ASEAN Halal Council is slated for an official launch by September 2027.
By establishing unified certification protocols, both governments intend to lower market barriers and help smaller manufacturers fulfill initial export orders more efficiently as trade networks expand across the region.
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