Chinese consumers to get more halal products from Malaysia

KUALA LUMPUR

Chinese consumers to get more “halal” products as a number of business entities agreed on Wednesday to facilitate an e-commerce platform for Malaysian small and medium-sized entrepreneurs to perform cross-border export to China.

“There is a growing demand for Malaysian products in China, especially when it comes to halal products,” said Kyle Keah, CEO of the cross-border e-commerce facilitator HYT Cross Border Sdn Bhd.

The HYT has enabled Malaysian brands to access 788 million online users in China, as the platform makes it easier, faster and cheaper for Malaysian companies to grow their sales through China e-commerce with its integrated solutions in customs clearance, warehouse and logistics, trademark protection, sales and marketing.

“As the domestic market in China continues to grow with rising consumption capability,” Malaysian halal products manufacturers and SMEs would have the opportunity to use the HYT services to “showcase their products to Chinese consumers and increase their export sales,” he added.

The HYT signed a memorandum of understanding (MoU) with the Halal Development Corporation (HDC) – a Malaysian federal government agency that assists companies in obtaining halal certificates – and the Malaysia External Trade Development Corporation to facilitate small and medium-sized entrepreneurs in conducting cross-border e-commerce export to China.

“The MoU is the head start of HYT’s assistance for Malaysian exporters to access China’s market through the Malaysia Halal Pavilion on the JD.com marketplace. The impact of this boarding facilitation is to create sustainable exports of Halal Malaysian products to China,” he said at the signing ceremony.

A total of 15 MoUs were signed on Wednesday during the 18th Malaysia International Halal Showcase (MIHAS), which will continue until Sept. 10.

For his part, HDC CEO HairolArrfein Sahari said Chinese markets are seeing an increase in demand for Malaysian halal products.

“China has become Malaysia's largest export market in 2021 with RM4.6 billion (about $1 billion) in imports, surpassing Singapore with RM3.7 billion (about $822 million) in imports, followed by Japan, the US, and Indonesia. This MoU will allow quality Malaysian-made halal products to reach consumers in China,” he added.

The HDC – mandated as the custodian of Malaysia's halal economy – aims to assist 50,000 SMEs to get halal certificates. Only 10,000 SMEs have secured halal certification from the Malaysian halal certification board Jakim as of yet.

Malaysia is playing a leading role in the global halal industry, as it exports halal products to dozens of countries including China, Japan, Germany, the US, and Türkiye.

In 2021, the country’s halal export performance rose by 19% to 36.3 billion Malaysian ringgits (about $8 billion) from 30.5 billion ringgits (about $6.7 billion) a year earlier.