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PM: Shariah compliance panel needed to regulate halal industry

PUTRAJAYA: Regulation of the country's halal industry can be comprehensively consolidated by setting up a Shariah-Compliant Commission.

Prime Minister Datuk Seri Ismail Sabri Yaakob said the current regulatory proposals were limited to the Islamic Financial sector via Bank Negara Malaysia and the Securities Commission.

"The Department of Islamic Development Malaysia (Jakim) plays a role in the regulation of the halal industry.

"Therefore, a more comprehensive regulation can be consolidated, for example through the establishment of a Shariah-Compliant Commission.

"I urge that this recommendation be given due attention so the aspiration to make Malaysia the main reference model in the field of halal economy can be realised," he said when delivering the keynote address at the Tun Abdullah Ahmad Badawi Lecture here, today.

He said Malaysia performed well in the Islamic financial sector following the Global Islamic Economy Report from 2016/2017 to 2020/2021, but there is still room for improvement for six other sectors.

"The six sectors are halal food, tourism, fashion, cosmetics and pharmaceuticals, and media and recreation.

"Currently, the halal economy is developing, encompassing the financial and food sectors, and these aspects need to be given attention."

Ismail Sabri said the rapid growth of Islamic finance is, among others, driven by society's demand for a system free of interest and elements of gharar and masyir (speculation or gambling).

Other factors driving growth are the existence of regulations and available development models of the Islamic financial system at a global level.

"Thus, a halal economic master plan should be pursued and done by stakeholders to empower the halal economy.

"This can be done by increasing their roles in various sectors of the halal economy within the national development," he said.

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