Legal Framework for Halal Certification and Production in Malaysia
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Legal Framework for Halal Certification and Production in Malaysia
March 2025
One Asia Lawyers Group Malaysia team
Yuki Hashimoto(Attorney at law in Japan )
Aalaa’ Mohd Esa(Attorney at law in Malaysia)
1. Introduction
Halal certification is a process that ensures products, services and processes comply with Islamic Law (Shariah) and thus permissible for consumption or use by Muslims. The term “Halal” means “permissible” or “lawful” in Arabic, and applies to not only food and beverages but also to pharmaceuticals, cosmetics, logistics and even financial services.
Malaysia leads the index of 81 countries with strongest Islamic economy ecosystem ranking number one position for Global Islamic Economy Indicator Ranking 2023 surpassing countries with larger export volumes.[1] The legal framework governing Halal certification and production ensures that products meet the stringent requirements set by Syariah. This article explores the legal framework for Halal certification in Malaysia, highlighting the key laws, regulatory bodies, and processes involved.
2. Key Legislation and Regulations
The legal framework for Halal certification in Malaysia is supported by several key laws and regulations as follows:
(1) Trade Descriptions Act 2011[2]
- The primary legislation governing halal certification Malaysia is the Trade Descriptions Act 2011 (TDA 2011) which originated from the previous Trade Descriptions Act 1972 (TDA 1972) . The revised TDA 2011 replaced and repealed the TDA 1972. This revised act, introduced two Orders providing specific legal proviso on matters pertaining to Halal:
- Trade Description (Definition of Halal) Order 2011;
- Trade Description (Certification and Marking of Halal) Order 2011
- Regulated by the Ministry of Domestic Trade and Costs of Living, these two Orders under TDA 2011 regulates the use of halal labels on products and prohibits the false or misleading description of goods or services as Halal. The Trade Description (Certification and Marking of Halal) Order 2011 empowers the Department of Islamic Development Malaysia (JAKIM) (the federal agency) and the state’s Islamic Religious Council (at state level) as the competent authority that can certify any foods, goods or services are Halal.[3]
(2) Malaysian Protocol of Halal Meatand Poultry Productions
- prescribes practical guidelines for abattoirs/ slaughterhouses on slaughtering, stunning method, further dressing process, storage and transportation of halal meat, poultry and their products.
- supplement requirement for the existing Malaysian Halal Standard (MS1500: 2009).
(3) Malaysian Halal Standard MS1500:2009
- This Malaysian Standard provides guidelines for the production, preparation, handling, and storage of Halal food. It is a critical reference for businesses seeking Halal certification.
(4) MS 2400-1:2019 – Halal Supply Chain Management System
- This standard focuses on ensuring the integrity of the Halal supply chain, from raw materials to the final product. It addresses issues such as cross-contamination and traceability
(5) the import requirements under the Animal Rules 1962, Animals Act 1953 (reviewed 2006).
3. Role of JAKIM
JAKIM, being the sole issuer of Halal certificates, plays a central role in the halal certification process. JAKIM is responsible for setting the standards for Halal certification, conducting inspections, and issuing Halal certificates. JAKIM’s Malaysian Halal Certification Procedure is the official guideline for obtaining Halal certification. It outlines the strict requirements that businesses must meet, covering various aspects of production, from sourcing of raw materials to production processes, extending to hygiene and sanitation, and transportation and storage to ensure halal integrity is maintained throughout the supply chain.
4. Halal Certification Process
Malaysian’s JAKIM Halal certification process involves several steps[4]:
- Application: Manufacturers and producers must submit an application to JAKIM or a recognized halal certification body.
- Document review: JAKIM reviews the application to ensure compliance with Halal standards, including ingredient sourcing, production methods, and hygiene practices.
- On-site Inspection: An on-site inspection is conducted to ensure that the production process complies with halal standards. This includes checking raw materials, processing methods, and hygiene practices.
- Certification: If the inspection is successful, a halal certificate is issued, allowing the product to be labeled as halal which such certificate shall be valid for two years.
- Compliance monitoring: JAKIM conducts regular audits to ensure ongoing compliance with Halal standards.
5. Enforcement and Compliance
Enforcement of halal certification standards is carried out by various government agencies, including the Ministry of Health, the Department of Veterinary Services, and the Customs and Excise Department. These agencies work in collaboration with JAKIM to ensure that halal products meet the required standards and that any non-compliance is addressed promptly. JAKIM has the authority to conduct inspections, seize non-compliant products, and impose penalties on those who violate the TDA 2011.
6. Expanding Halal Sectors beyond Food
While food remains a dominant sector, Malaysia’s Halal framework extends to other industries, including-
Pharmaceuticals and Cosmetics: Ensuring that products are free from non-Halal ingredients and produced according to Islamic principles.
Logistics and Transportation: Maintaining Halal integrity throughout the supply chain, from storage to delivery.
Financial services: Offering Islamic banking and finance products that are Shariah compliant.
Tourism: Providing Halal-friendly accommodations, restaurants, and tours.
7. Key Considerations for Business
Businesses intending to take part in the Halal industry must thoroughly understand JAKIM’s Halal certification requirements and ensure compliance. All processes and materials involved in the production of products within the industry must be properly and accurately documented. Once all processes comply with the certification requirement, companies must ensure their employees involved in Halal production are properly trained in Halal principles and procedures. If these aspects are carefully governed and regulated, companies should not have to worry on the regular audits and inspections that JAKIM conducts in ensuring ongoing compliance.
8. Conclusion
As the global demand for Halal products continues to grow, Malaysia is set to maintain its leadership in this sector by continuously improving its legal framework and addressing emerging challenges to ensure that its Halal industry remains a cornerstone of its economy and a trusted source of Halal products for consumers worldwide. For businesses looking to tap into this lucrative market, understanding and adhering to the legal framework is crucial.
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[1] State of the Global Islamic Economy Report 2023/24 https://cdn.salaamgateway.com/reports/pdf/5d80cd862c4ac9b62237d21da976647a9b466c6f.pdf
[2] Act 730
[3] Zakaria, Z & Ismail, Z (2014): The Trade Description Act 2011: Regulating ‘Halal’ in Malaysia https://eprints.um.edu.my/13062/1/ED0614020.pdf
[4] https://myehalal.halal.gov.my/
