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Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi has highlighted the need for Malaysia to adopt blockchain technology to enhance its halal certification framework. Speaking at the Global Halal Summit 2024 (GHAS 2024), Ahmad Zahid highlighted that countries like the United Arab Emirates, Saudi Arabia, and Australia are already leveraging blockchain to increase transparency and combat fraud in halal certification processes.
He asserted that incorporating blockchain into Malaysia’s halal certification system would not only strengthen halal processes but also reduce trade barriers and align the country with global standards. This strategic move, he noted, would enhance consumer confidence and reinforce Malaysia’s position as a leading global halal hub.
In his address, Ahmad Zahid, who also chairs the Halal Industry Development Council, underscored the importance of investing in the training of new halal certification professionals to meet the growing global demand. Expanding the pool of qualified experts is essential for maintaining the highest standards of authenticity and integrity in the halal sector.
The Deputy Prime Minister stressed that while JAKIM remains central to overseeing halal certification, an improved regulatory framework is crucial for managing increasing demand, streamlining processes, and ensuring consistent, reliable practices. He noted that halal certification is built on trust, transparency, and confidence – principles that are vital for institutions like JAKIM.
Despite JAKIM’s ongoing efforts to refine halal certification regulations, Ahmad Zahid acknowledged the need for a more robust governance structure to keep pace with the rapidly evolving halal landscape. He emphasised that Malaysia’s commitment to advancing its halal ecosystem is a testament to its dedication to excellence in halal certification.
As the country celebrates 50 years of leadership in the halal industry, he called for recognition of the contributions of those who have driven innovation and ensured compliance with Syariah laws.
Malaysia’s halal industry, bolstered by its high-standard certification system, is solidifying its global leadership and attracting substantial international investment. The recent Malaysia-China Halal Business Forum showcased Malaysia’s prowess, with Chinese investors committing approximately RM4 billion to various sectors, including food and beverages, pharmaceuticals, and cosmetics.
This investment underscores the strength of Malaysia’s globally recognised halal certification system, which has maintained the top position in the Global Islamic Economy Indicator (GIEI) for a decade. Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi highlighted the establishment of a Malaysia-China Halal Trade Corridor as a strategic move to enhance halal trade, streamline supply chains, and meet the needs of BRICS nations and ASEAN. The collaboration extends to technology, with agreements to develop halal-certified pharmaceuticals and explore unmanned aerial vehicle (UAV) technology, enhancing Malaysia’s position as a regional and global halal hub.
The Malaysian Cabinet has decided to retain the current voluntary policy on Malaysia Halal Certification (SPHM), a practice that has been in place since 1974. Deputy Prime Minister Dr Ahmad Zahid Hamidi highlighted that the certification, managed by JAKIM and state religious councils, remains crucial for businesses and provides reassurance to Muslim consumers.
JAKIM and state agencies are dedicated to improving halal certification services and maintaining global credibility. They promote certification by providing incentives such as training and grants for small businesses and have implemented an expedited process with a 96% success rate this year, boosting the growth and accessibility of halal-certified businesses while focusing on fraud prevention and high standards.
The Prime Minister’s Department (Religious Affairs) will continue to support and strengthen Malaysia’s halal certification system for the benefit of the nation.
As Malaysia seeks to reinforce its global leadership in halal certification by adopting blockchain technology to improve transparency and combat fraud, it also aims to align with international standards, increase consumer confidence, and solidify its status as a leading halal hub.