Malaysia calls for 'reset' of global trade and 'reimagining architecture' amid challenges

The global trading architecture needs to be reimagined to respond to geopolitical trends that challenge existing international trade rules, Malaysian trade minister said at the Global Halal Summit where Prime Minister Anwar Ibrahim delivered a keynote speech.

"The global trading system needs a reset. It shouldn't be about stopgap measures. Neither can it be about creating new 'clubs'. It is about reimagining the architecture," Malaysia's Minister of Investment, Trade, and Industry Tengku Zafrul Abdul Aziz said at the opening ceremony of the summit on Sept 19.

The summit was held in conjunction with the four-day Malaysia International Halal Showcase (MIHAS), which runs until Sept 20.

"At a time of growing trade protectionism and armed conflicts, the halal industry can buck the trend by doubling down on multilateral cooperation," Tengku Zafrul said in his opening remarks in Malaysia's capital, Kuala Lumpur.

He said this can be achieved by reforming multilateral institutions such as the World Trade Organization, developing better cooperation mechanisms between economic blocs, and embedding ethical and sustainable principles in trade agreements and supply chains.

Tengku Zafrul recalled the negotiations between the United States and dozens of countries over US President Donald Trump's decision to slap punitive tariffs ranging from 10 percent to 50 percent on its trading partners.

The trade minister led the high-level Malaysian delegation to Washington to negotiate with the US on tariffs. Their negotiations started on May 6 and concluded on July 31.

Tengku Zafrul said the Malaysia-US tariff negotiations were "a complex, challenging process". He noted that one of the issues raised was Malaysia's halal certification, which was considered a form of non-tariff barrier.

However, Malaysia considered the halal standards as a "red line" that needs to be defended, Tengku Zafrul said.

While Malaysia agreed to facilitate the import process for certain halal-certified products into Malaysia, he said, "We stood firm on maintaining our world-class, world-leading halal standards".

Muslim-majority Malaysia maintains a halal-certification system as most of its population consumes products and services allowed in the Islamic faith — "halal" means permissible or lawful in Arabic. Malaysia is also one of the world's top exporters of halal products.

Tengku Zafrul stated that multilateral cooperation in the global halal industry is key, noting that there are 2 billion Muslims worldwide and the global halal market is set to reach $5 trillion by 2030. He added that even non-Muslims consume halal goods and services.

Anwar said halal products and services have become popular even in predominantly non-Muslim countries.

"Halal is more than just a label — it is an international symbol of trust," Anwar said while addressing the summit's opening ceremony.

He said the Malaysian government will continue to proactively position the halal industry as a key contributor to the national economy, particularly in trade.

Anwar said that under the Thirteenth Malaysia Plan (13MP), significant funds are allocated to further boost the growth of the halal sector, which is projected to contribute 231 billion ringgit ($54.9 billion), or 10.8 percent, to the national GDP by 2030 on the back of strong demand in food, finance, and tourism.

MIHAS, an annual trade expo organized by Malaysia External Trade Development Corporation, or MATRADE, is expected to hit its 4.5 billion ringgit sales target this year.

This year's four-day MIHAS runs until Sept 20. It serves as a platform for over 4,000 business meetings arranged between 600 Malaysian sellers and 300 international buyers.

MIHAS is set to expand its global reach with MIHAS@Shanghai 2025 taking place from Nov 5 to 11 in conjunction with the China International Import Expo.