Halal Logistics: A Valuable Opportunity For Malaysia
By Harizah Hanim Mohamed
KUALA LUMPUR, Feb 16 (Bernama) – Malaysia must spearhead the development of a comprehensive halal logistics ecosystem by pushing for the establishment of a first-ever global private standard in logistics.
LBB International chief executive officer Marco Tieman stressed the urgent need to coordinate the halal logistics standards in the ports and shipping industry, given the lack of standardised halal protocols for sea freight despite the global use of the Harmonised System (HS) code for classifying goods.
Speaking to Bernama in an interview today, Tieman urged Malaysia to take the lead, leveraging its strong background in halal certification.
This way, the nation could capitalise on the vast global halal market -- set to be worth a staggering US$5 trillion by 2030 -- and strengthen its leading position in the production, storage and exports of halal products worldwide.
Furthermore, the booming e-commerce sector should serve as a springboard for the country to spearhead the development of a comprehensive halal logistics ecosystem and set up a global private standard.
The global halal market promises immense opportunities for players to advance the halal ecosystem.
A global private standard can serve as a guideline for handling halal product consignments — from the moment of arrival at the port to warehouse storage and final-mile delivery, according to shipping industry sources.
For context, private standards and their influence on trade have risen steadily since the 1990s, driven by globalisation, policy liberalisation, changing consumer preferences and advancements in information technology.
Similarly, changes in consumer purchasing patterns and preferences have significantly expanded the consumption of halal products, leading to a steady increase in global demand.
Malaysia must push for advancement in logistics as its halal exports alone were valued at RM54 billion in 2023, underscoring the nation's vital role in the growing sector.
However, Tieman acknowledged that the development of a halal logistics ecosystem can be challenging.
“It is crucial to address the recognition of halal goods transported by sea, as the International Maritime Organisation (IMO) does not have a classification for halal products in its system.
“The same applies to the HS customs code, which categorises various products but lacks a specific category for halal goods. This is a missing link in the halal supply chain,” he said.
As part of the IMO, Malaysia should propose for the organisation to have a specific halal code while spearheading halal exports, he said.
To this end, Malaysia should advocate the establishment of a committee to develop a halal code, co-signed and supported by other Organisation of Islamic Cooperation (OIC) member countries.
“That’s how the voting system works at the global level. As a global leader in halal supply chain standards, it is only logical for Malaysia to take the lead in this initiative,” he added.
The nation must move beyond halal labelling for food and other consumer products and push for halal-certified shipping containers globally.
Concurrently, a stringent halal process could be modernised and digitalised while aligning with past initiatives in developing the industry, such as the development of a Halal industrial park.
Logistics, Halal Certification and JAKIM
Malaysia, through the Department of Standardisation Malaysia, has developed its own Malaysian Standard (MS) for halal food, which serves as a set of guidelines for the preparation, handling, and storage of halal food.
Datuk Dr Sirajuddin Suhaimee, the director-general of the Department of Islamic Development Malaysia (JAKIM) said the establishment of MS Halal Standard for logistics is considered essential by JAKIM to maintain halal integrity throughout the supply chain, which includes transportation, warehousing and retail activities.
“Its objectives are to ensure comprehensive halal compliance, prevent contamination and increase the international recognition of Malaysia's halal certification,” he said.
Asked about the prospects for the MS Halal Standard, he said JAKIM aims to bridge gaps in international logistics by setting specific halal compliance criteria for areas such as sea freight and container handling.
“The standard was developed with consideration for and alignment to international standards, and it is supported by the implementation of the Manual Procedure for Malaysia Halal Certification and the Halal Management System.
“It ensures a robust framework that upholds Shariah principles, addresses contamination and increases the international recognition of Malaysia's halal certification,” he said.
Sirajuddin said JAKIM is actively leading and participating in initiatives to advocate for a global halal logistics standard within international bodies like the Standards and Metrology Institute for Islamic Countries.
“As a member of the Technical Committee and Working Group, JAKIM plays a pivotal role in developing and promoting halal logistics standards at the international level.
“These efforts aim to harmonise halal logistics practices across borders. Through these initiatives, JAKIM seeks to enhance global recognition of halal standards, strengthen Malaysia’s leadership in halal logistics and foster cooperation among OIC member states and other international stakeholders,” he said.
Globally, ports do take the initiative to ensure halal certification, but approaches vary since there is no benchmark or standardisation.
The Netherland’s Port Rotterdam offers a halal-certified cold storage facility operated by Eufrigo -- a logistics service company for temperature-controlled food products, semi-finished products and raw materials.
The Port of Zeebrugge in Belgium was certified by the Halal Food Council of Europe, while Spanish Docks Logistics has received halal certification for the facilities it manages in the port of Algeciras, Spain.
Back home, the Northport and Penang Port have dedicated halal-certified warehouse facilities for the storage of halal cargoes, while Johor Port Authority established comprehensive halal port supply chain guidelines in 2020 for its port terminals and jetties in Johor.
Elsewhere, the Kuantan Port Consortium is developing a halal hub for the East Coast, facilitating halal trade with China, Vietnam, Thailand, Indonesia, East Malaysia and the Middle East.
In Indonesia, Multi Terminal Indonesia has set up a dedicated halal-certified warehouse in Tanjung Priok, the country’s main maritime gateway, focusing solely on warehousing rather than full port terminal operations.
In Malaysia, shipping line CMA CGM launched a halal container service, offering ritually cleansed containers for the halal industry.
Although branded as a CMA CGM service, CMA CGM has fully outsourced this service to a container depot operator in Malaysia.
JAKIM and digitalisation
Sirajuddin noted that in becoming a global leader in halal logistics, Malaysia faces challenges such as aligning global standards, building halal-compliant infrastructure and ensuring consistent halal practices worldwide.
Other challenges include raising awareness, using technologies like blockchain and improving cooperation among stakeholders.
“To address these issues, Malaysia needs investments, international partnerships and strong promotion of halal logistics,” he said.
He acknowledged that digitalisation helps JAKIM modernise halal certification for logistics by improving efficiency, transparency, and traceability.
“By using tools like blockchain and online platforms, JAKIM can streamline the certification process, track the movement of halal products in real time and ensure compliance across supply chains, supporting Malaysia’s leadership in halal logistics,” he said.
-- BERNAMA