Heightened geopolitical tensions in West Asia, particularly involving the strategic Strait of Hormuz, are increasingly disrupting global supply chains and exerting pressure on the halal industry, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said today.
He noted that the global halal sector is no longer shaped solely by market forces but is now directly influenced by geopolitical developments, which are affecting logistics, costs and market access.
“Disruptions in key trade routes are not only impacting the energy sector but are also triggering a chain reaction across industries, including halal. We are seeing rising logistics costs, shipment delays and uncertainties in accessing markets,” he said at the groundbreaking ceremony of the Perda Halal Industrial Development Project.
Ahmad Zahid, who is also Minister of Rural and Regional Development, said halal products particularly fresh food and temperature-controlled goods are highly dependent on efficient and stable global supply networks.
He added that increases in energy and raw material prices are also placing significant pressure on production costs, especially in agriculture.
“In certain sectors, fertiliser alone can account for up to 60 per cent of production costs. This inevitably affects the entire halal food value chain,” he said.
Despite these challenges, Ahmad Zahid stressed that current global uncertainties present Malaysia with a strategic opportunity to strengthen its standing as a stable, trusted and resilient halal hub.
He said efforts to diversify export markets, reinforce domestic supply chains and improve logistics efficiency would be critical in ensuring the industry’s continued growth amid external pressures.
“This is the time for us to move beyond reliance on global systems and build stronger internal capabilities that are more structured and resilient,” he said.
Ahmad Zahid emphasised that Malaysia must aim to lead not only in halal certification but also in production, innovation and global trade.
He noted that Malaysia is already recognised as a key player in the global halal industry, with its certification system trusted in nearly 50 countries and its consistent top ranking in the Global Islamic Economy Index.
“However, our true potential goes far beyond current achievements. The halal industry offers not just domestic economic growth, but also serves as a gateway for Malaysia to expand into wider global markets across Asia, the Middle East and Europe,” he added.
-THE MALAYSIA VOICE
