PHL’s fourth gateway to Malaysia’s halal market

By Brian U. Doce

THE Philippines has gained another gateway to Malaysia’s lucrative halal market.

On Sept. 24, the Philippine Ulama Congress Organization, Inc. (PhilUlama) announced its recognition by Malaysia’s Department of Islamic Development (JAKIM) as the fourth Philippine-based halal certification body (HCB) permitted to certify halal products intended for the Malaysian market.

This may appear to be a minor development in the highly technical world of halal certification. But for Philippine businesses, especially food manufacturers and exporters seeking a larger share of the global halal economy, the addition of another internationally recognized certifier can have consequences extending well beyond regulatory compliance and mutual recognition in global trade.

Malaysia is considered one of the world’s halal centers. As early as the late 1990s, the Malaysian government decided to position the country as a global halal hub as part of its broader development strategy for national industrialization and economic recovery following the 1997 Asian Financial Crisis. Similarly, securing additional access to Malaysia’s halal market through JAKIM’s recent recognition of PhilUlama comes at a time when the Philippines is attempting to transform halal from what is often perceived as a predominantly religious concern into an instrument of export development, investment, job creation, and industrialization.

This ambition may seem unusual for a predominantly Christian country. Yet the Philippines is no stranger to the global halal economy.

The country has increasingly positioned itself as a participant in the growing international market for halal goods and services since 2001. This progress has become particularly visible following the COVID-19 pandemic. In 2022, the Department of Trade and Industry (DTI) proudly reported that the Global Islamic Economy Summit had identified the Philippines as one of the non-members of the Organization of Islamic Cooperation (OIC) with a significant halal industry presence. Meanwhile, in the 2026 Mastercard-CrescentRating Global Muslim Travel Index, the country ranked fifth among non-OIC destinations catering to Muslim travelers, up from eighth in 2025. Globally, the Philippines climbed from 36^th to 27^th place, reflecting its continuing efforts to improve halal food access and Muslim-friendly tourism services.

HOW DOES HALAL TRADE WORK?
For a Philippine company, producing something considered halal at home does not necessarily mean that the product can immediately be marketed as halal overseas.

Different countries maintain their own halal standards and regulatory systems. More importantly, overseas halal authorities determine which foreign organizations they recognize as competent to certify products entering their markets.

This means Philippine-based exporters must first identify where they intend to sell their products. They must then obtain certification from a Philippine HCB whose certification is recognized by authorities in that target market. Malaysia provides a good example.

JAKIM oversees Malaysia’s halal certification system and recognizes foreign HCBs whose certifications can be accepted for products entering the Malaysian market. Under Malaysian rules, imported products represented as halal must comply with applicable requirements and be certified by a foreign HCB recognized by JAKIM.

Before PhilUlama’s announcement, three Philippine HCBs were already recognized by Malaysian authorities: the Islamic Da’wah Council of the Philippines, the Halal Development Institute of the Philippines, and the Halal International Chamber of Commerce and Industries of the Philippines.

THE MORE, THE MERRIER?
PhilUlama’s recent inclusion in the existing list of JAKIM-recognized Philippine-based HCBs begs the question: Why should another certifier matter when the Philippines already has three? Does having more HCBs recognized in Malaysia mean better prospects for the Philippine halal export sector?

Apparently, for a country with no centralized halal certification system, the answer is yes.

There are four reasons why.

1. Greater choice and accessibility for Philippine exporters. Having four Philippine HCBs recognized by Malaysia gives companies more options when selecting a certifier for products intended for that market. Over time, a broader certification ecosystem can encourage HCBs to improve their services, expand their geographical reach, strengthen their technical capabilities, and assist more Philippine companies in complying with overseas halal requirements.

This is particularly important for micro, small and medium enterprises (MSMEs). Halal certification entails costs, documentation, technical requirements, changes in production processes, and continuing compliance. Expanding the number and reach of internationally recognized Philippine certifiers can potentially make certification more accessible to businesses outside the country’s largest manufacturing centers.

2. Greater confidence and trust in the integrity of the domestic Philippine halal market. Malaysia has developed one of the world’s most established halal regulatory systems, which some commentators consider a “gold standard.” JAKIM requires recognized foreign HCBs to comply with Malaysian procedures and guidelines and subjects them to continuing monitoring and audits. More than gaining access to Malaysia, a foreign certifier’s recognition by JAKIM demonstrates its capacity to operate within the rigorous and stringent requirements of the Malaysian halal assurance system.

Such recognition can also have implications at home. Having more Philippine HCBs recognized by a major halal authority such as JAKIM can potentially strengthen confidence among Filipino Muslim consumers and businesses in the credibility and integrity of the country’s domestic halal certification system.

3. Expansion of the Philippine halal tourism sector. Restaurants, hotels, food manufacturers, tourism establishments, and their suppliers require credible halal certification if the country intends to translate its improving reputation as a Muslim-friendly destination into a sustainable tourism market. Attracting Muslim travelers requires more than promoting the Philippines as Muslim-friendly. Travelers must also have confidence in the food, establishments, and services presented to them as halal.

4. Economic multiplier effects. The economic potential of halal extends far beyond food. The halal economy encompasses pharmaceuticals, cosmetics, tourism, Islamic finance, fashion, logistics, and other products and services. Developing these industries requires not merely certifiers but also farms, manufacturers, laboratories, packaging companies, logistics providers, hotels, restaurants, exporters, and workers.

In this sense, halal development should not be viewed exclusively as a religious or cultural concern. A stronger Philippine halal industry can potentially generate opportunities for Muslim and Christian Filipinos alike. Increased production for halal markets can stimulate manufacturing, create employment, integrate MSMEs into larger supply chains, encourage investment, and diversify Philippine exports.

Based on the preliminary projections of the DTI, the development and expansion of the Philippine halal ecosystem could generate P230 billion in trade and investments and create 120,000 jobs. Whether these ambitious targets will ultimately be achieved remains to be seen. What is clear, however, is that increasing the number of Philippine certification bodies recognized by major halal markets provides part of the infrastructure necessary to pursue them.

ALIGNMENT OF OPPORTUNITIESThe current roster of Philippine HCBs recognized by JAKIM therefore comes at an opportune time for the development of the Philippine halal industry.

The Marcos Jr. administration has increasingly incorporated halal and Islamic finance into its economic agenda since 2022. In fact, the Islamic market has increasingly figured in the administration’s broader economic and development agenda.

In 2024, the government launched the Philippine Halal Industry Development Strategic Plan, which seeks to double the number of halal-certified products and services and position the Philippines as a premier halal hub in the Asia-Pacific region by 2028.

This policy direction has been accompanied by the broader “Halal-Friendly Philippines” campaign, which seeks to strengthen the country’s position as a halal producer and Muslim-friendly destination in the Asia-Pacific region.

Regional developments are moving in the same direction. On Sept. 2, government representatives, policymakers, investors, entrepreneurs, and halal certification authorities gathered in Kota Kinabalu, Sabah, for the third BIMP-EAGA Trade, Investment and Halal Industry Conference. Bringing together stakeholders from Brunei, Indonesia, Malaysia, and the Philippines, the conference tackled issues including halal standards and recognition, supply chains and logistics, Islamic finance, tourism, investment, and greater cross-border cooperation within the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area.

Seen against this array of economic opportunities and policy developments, the addition of PhilUlama as the fourth Philippine HCB recognized by Malaysia represents more than another milestone in regulatory compliance. It expands the institutional infrastructure through which Philippine businesses can access one of the world’s most developed halal markets and, potentially, strengthens the country’s broader ambition to transform halal into an instrument of trade, investment, employment, and industrial development.

Brian U. Doce is a part-time lecturer at the Department of Political Science of the University of Santo Tomas. He obtained his PhD in Politics and Global Studies from Murdoch University’s Indo-Pacific Research Center, where he wrote his doctoral thesis on the political economy of halal certification regulation in the Philippines. In 2022, he led a research project funded by the Bangsamoro Autonomous Region in Muslim Mindanao’s Ministry of Science and Technology that documented the history of the Philippine halal industry and developed a proposed roadmap for the Bangsamoro regional halal economy.