Malaysia’s halal industry is entering a new phase driven by innovation, AI, sustainability and digital trade, with MIHAS 2026 highlighting the sector’s global growth.
Malaysia’s halal industry is entering a new phase in which certification and compliance remain essential, but innovation, digitalisation, sustainability and international market access are becoming increasingly important measures of competitiveness.
The development was strongly reflected at the Malaysia International Halal Showcase (MIHAS) 2026, which concluded in Kuala Lumpur on 26 September. The 22nd edition of the international trade platform combined business matchmaking, technology-enabled trade facilitation and industry recognition, reinforcing Malaysia’s ambition to remain a major hub for the global halal economy.
The latest MIHAS Awards 2026 placed particular emphasis on excellence, innovation, sustainability and digital transformation. The awards were organised across three flagship categories: the MIHAS Excellence Award, the MIHAS Innovation, Sustainability & Digitalisation Award, and the WiEX Award recognising women-led businesses.
The emphasis is significant because the global halal economy is becoming increasingly technology-driven. MIHAS has incorporated artificial intelligence into buyer profiling, business matching, lead management and other trade-facilitation processes. The platform’s AI-enabled approach is intended to connect exporters with more relevant international buyers and turn business interactions into measurable commercial opportunities.
This represents a broader change in how international trade platforms operate. Traditional exhibitions primarily function as physical meeting points between sellers and buyers. Increasingly, however, data, artificial intelligence and digital platforms are being used before, during and after an exhibition to improve targeting, manage relationships and measure commercial outcomes.
For the halal industry, technology also has implications beyond trade promotion. The MIHAS Awards framework specifically identifies technologies including AI, automation, Internet of Things, blockchain, halal traceability and digital commerce as areas of innovation. These technologies can support businesses in improving transparency, operational efficiency and supply-chain visibility.
Trust is central to this transformation. MATRADE has described trust as a competitive advantage in the halal economy, noting that buyers increasingly seek assurance that halal claims are properly governed, verified and maintained over time. This places greater importance on traceability, governance and credible certification systems alongside product quality.
The economic rationale behind Malaysia’s strategy is also becoming clearer. Malaysia recorded RM68.52 billion in halal exports in 2025, representing a 10.9 percent increase from the previous year. Halal exports accounted for 4.3 percent of the country’s total exports, with food and beverages and halal ingredients among the largest contributors. Major export markets included China, Singapore, the United States, Japan and Indonesia.
The latest MIHAS results provide another indication of the sector’s commercial momentum. MATRADE reported RM5.5 billion in sales by the fourth day of the exhibition and subsequently raised expectations toward RM6 billion. A later post-event announcement reported that MIHAS 2026 ultimately delivered RM6.78 billion in sales, expanding opportunities for Malaysian businesses and SMEs.
The scale of the event is also notable. MIHAS 2026 covered 14 industry clusters, including food and beverages, pharmaceuticals, Islamic finance, modest fashion, personal care, technology, services and Muslim-friendly tourism. This diversity demonstrates that the halal economy has expanded far beyond its traditional association with food products.
Another important trend is the increasing connection between halal development and industrial policy. Malaysia’s Halal Industry Master Plan 2030 and National Industry Master Plan 2030 provide a policy framework for strengthening competitiveness, innovation and international market access. MIHAS has been positioned as one of the platforms supporting those broader ambitions.
Malaysia has set an ambition to increase halal exports to RM80 billion and raise the sector’s contribution to GDP to 11 percent through innovation and resilience. These targets indicate that the halal economy is being treated as a strategic component of national industrial transformation rather than simply as a niche consumer market.
At the regional level, the direction is also significant. Malaysia has proposed the establishment of an ASEAN Halal Council, with the initiative intended to explore stronger regional cooperation in halal development and market access. The proposal comes as Malaysia continues to seek greater internationalisation of its halal ecosystem.
Such regional cooperation could become increasingly relevant as ASEAN businesses operate across interconnected consumer markets and supply chains. Differences in certification systems, regulatory requirements, technology capabilities and export readiness remain practical considerations for companies seeking to expand internationally.
Small and medium-sized enterprises are another critical part of the equation. While large companies often have greater resources to invest in technology, certification and international marketing, smaller businesses may face barriers related to financing, talent and export readiness. Malaysia has therefore continued to emphasise SME empowerment and the strengthening of digital platforms within its halal ecosystem.
Women-led businesses are also receiving greater attention. The WiEX initiative at MIHAS provides a dedicated platform for women entrepreneurs to participate in international sourcing, business matching and recognition programmes. This reflects a wider understanding that the future growth of the halal economy depends on a diverse business ecosystem rather than a limited group of large corporations.
The evolution of MIHAS therefore illustrates a larger transformation taking place across the global halal industry. The competitive landscape is increasingly shaped by the intersection of certification, technology, sustainability, supply-chain transparency, market intelligence and international connectivity.
For companies operating in the sector, the implications are substantial. Compliance remains the foundation, but long-term competitiveness increasingly depends on the ability to convert compliance into trust, technology into efficiency, sustainability into business value and international exposure into measurable commercial growth.
Malaysia’s experience also provides a broader example of how an established industry can reposition itself in response to changing global conditions. Rather than treating halal solely as a certification category, the country is developing it as an interconnected economic ecosystem involving trade, technology, investment, entrepreneurship and international cooperation.
The conclusion from MIHAS 2026 is therefore not simply that the halal market is growing. More importantly, the structure of that growth is changing. The next generation of halal businesses will increasingly compete through innovation, digital capabilities, transparent supply chains, sustainable practices and the ability to build trust across borders.
As the global halal economy continues to expand, Malaysia’s strategy demonstrates how trade platforms can evolve from annual exhibitions into broader engines of business connectivity and market development. MIHAS 2026 provides a snapshot of that transition—and of an industry increasingly defined not only by what makes a product halal, but by how responsibly, innovatively and competitively that product reaches the world.
