Penang’s Halal Leap: Building a Regional Hub for Innovation and Inclusive Growth

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Penang is taking a bold step toward becoming a regional leader in halal business services through the establishment of the Penang Halal Industry Development Council (MPIHPP) – the first of its kind at the state level in Malaysia¹. This strategic initiative aims to nurture a robust, export-driven halal ecosystem anchored in innovation, sustainability, and inclusivity.

Aligned with national frameworks such as the Malaysia Halal Policy and the New Industrial Master Plan (NIMP 2030), MPIHPP is set to enhance governance while catalysing growth in niche sectors beyond the traditional food and beverage sphere. Key focus areas include halal logistics, pharmaceuticals, cosmetics, and technology-based halal innovation.

Chief Minister Chow Kon Yeow underscored Penang’s unique positioning to diversify its halal offerings and meet emerging market demands. This is especially timely as Malaysia’s halal exports surged to RM61.79 billion in 2024. To accelerate progress, a Memorandum of Understanding (MoU) between Perda and Penang Halal International has been signed, paving the way for capacity-building and ecosystem synergies. Supporting this vision, a regional halal forum and the business-matching programme will serve as key platforms to connect ASEAN halal service providers and foster market integration ².

The state’s halal credentials continue to rise. Deputy Chief Minister I, Prof Datuk Dr Mohamad Abdul Hamid, reported a significant increase in Malaysian Halal Certification (SPHM) holders—from 1,275 in 2019 to 1,935 in 2024—contributing to a 36.4% increase in Penang’s halal exports, which reached RM20.5 billion in 2024. These gains reflect growing investor confidence, supported by streamlined processes such as the reduction of SPHM approval time from 90 to 30 working days³.

Education and talent development are also integral to this ecosystem. The construction of the International Islamic College of Technology (KITAB) on 17.3 acres of waqf land in Batu Kawan reflects long-term investment in human capital. Phase One, valued at RM5.7 million, is scheduled for completion in mid-2026. Meanwhile, a recent digital empowerment initiative under MAINPP has equipped 8,740 students from 263 schools with tablets, benefiting the B40, asnaf and fisabilillah categories. The RM6.5 million effort improves access to digital learning and halal-related knowledge, ensuring inclusivity in Penang’s halal roadmap ⁴.

Through these coordinated efforts, Penang is steadily progressing from a halal production base to a regional hub for diverse halal services and innovation, reinforcing its role as a key player in Southeast Asia’s halal industry by 2030.

Footnotes