From religious obligation to market strategy: the politics of halal certification in Malaysia

Abstract

Purpose This paper aims to investigate Malaysia’s halal certification system as a state-led regulatory regime, examining how it functions as both a religious mechanism and an instrument of political-economic governance. It explores how halal certification mediates the relationship between state authority, market actors and Muslim consumer identity, particularly in the context of Malaysia’s aspiration to become a global halal hub. Design/methodology/approach Adopting a qualitative case study approach, the paper draws on documentary analysis of legal texts, policy manuals, academic literature, media reports and organizational materials. The analysis is guided by a political economy framework, focusing on concepts such as regulatory monopoly, institutional gatekeeping, market access and political consumerism. Findings The study reveals that Malaysia’s halal certification system, administered solely by Department of Islamic Development Malaysia, operates as a centralized and bureaucratized regime that reinforces state control over religious and economic domains. While intended to promote Malay-Muslim economic participation, the certification regime disproportionately benefits multinational and non-Muslim firms due to high compliance barriers for small and medium-sized enterprises (SMEs). Halal certification also serves as a platform for political consumerism, identity assertion and soft power projection through Malaysia’s international halal diplomacy. Despite global ambitions, challenges persist in enforcement, standard harmonization and equity for local producers. Originality/value This paper contributes to halal studies and regulatory governance by offering a political economy perspective on certification, highlighting how halal regulation in Malaysia extends beyond religious observance to embody market control, national branding and consumer politics. It adds value by situating halal certification within broader discourses of institutional power, economic nationalism and the commodification of religious values.