Japanese companies are increasingly focusing on halal products and services in Malaysia, recognizing the country's diverse investment opportunities within the halal ecosystem. Ryosuke Sakamoto from Nihon M&A Center emphasized Malaysia's strategic position as a hub for halal trade, particularly as the global halal food market was valued at approximately US$2.468 trillion in 2023 and is projected to reach US$5.81 trillion by 2032. Japan has been Malaysia's fourth largest investor since 2015, with a total foreign direct investment (FDI) of US$27 billion in 2022, which has created around 336,000 jobs in the country. Prime Minister Anwar Ibrahim's recent diplomatic visits to Japan have further secured RM6.56 billion in potential investments, showcasing the strong economic ties between the two nations.
In addition to the growing interest from Japanese firms, Malaysia's halal market is projected to reach US$113.2 billion by 2030, driven by increasing global demand for halal-certified products. Notable Japanese companies such as Ajinomoto and Kewpie have already established operations in Malaysia, tapping into the halal logistics and cosmetics sectors. Kewpie Malaysia Sdn Bhd, for instance, became the first Japanese halal food manufacturer in 2011, setting a precedent for future collaborations in the halal industry.
According to recent research by BMI, global halal Food & Beverage (F&B) spending is projected to reach US$1.5 billion by 2028, up from US$899.9 million in 2018, with an average annual growth rate of 5.2% from 2018 to 2028. This growth in halal F&B spending, expected to rise at 6.0%, will outpace the global average of 5.4%. Halal products are anticipated to account for 12.7% of total global F&B spending by 2028, coinciding with the Muslim population expected to reach 2.2 billion by 2030. Indonesia's recent implementation of mandatory halal certification further underscores the importance of certification processes in Southeast Asia, where 87% of the population identifies as Muslim, highlighting the region's critical role in the halal market.
As Malaysia continues to strengthen its position in the global halal market, the collaboration with Japanese companies could lead to significant advancements in halal innovation, research, and development. The Malaysian government has been proactive in promoting the halal industry, with initiatives aimed at enhancing the halal certification process and supporting local businesses in meeting international standards. This partnership is expected to not only bolster Malaysia's economy but also enhance its reputation as a global halal hub.
The recent developments in Malaysia's halal exports, which are anticipated to reach RM65 billion by 2025, further underscore the potential for growth in this sector. The Malaysian External Trade Development Corporation (Matrade) has highlighted the country's advantages, including its highly recognized halal certification by Jakim, which is sought after by the international business community. As the halal market expands, the collaboration with Japanese companies could play a crucial role in driving Malaysia's halal industry forward, benefiting both nations economically and culturally.