Singapore: The booming halal business opens global doors for local companies

Singapore: Booming halal business opens global doors for local businesses

2025-05-15

Singapore is poised to capitalise on the surge in demand for halal products and services, demonstrating how the government can foster new approaches to the development of the halal market by creating value standards.

Muslims are a minority in Singapore, making it difficult for the halal sector to gain influence. However, one influential factor made this possible.

“Singapore has strict food safety regulations, and its halal laws are widely recognized by Gulf countries and ASEAN countries. Some companies have seized the opportunity to cater to the growing demand for halal products and services worldwide,” Sim Choon Siong, director of Singapore Food, told BT.

Sim ChoonSiong added that this demand comes from emerging Muslim destinations such as Japan and South Korea, where halal products and services have not yet been fully developed.

Global Halal – the food industry alone is expected to be a $1.1 trillion market, and is projected to reach $10 trillion by 2030 – means opportunities for economic growth and better returns for local businesses.

OTS Holding, a halal bakery, and Ellaziq, a halal meat processing manufacturer, have reported annual sales growth since 2009. A company spokesperson stated, "Currently, demand primarily comes from Brunei, Myanmar, India, Australia, and Singapore. We are targeting Japan, Malaysia, and the Middle East as our next markets."

GanHup Lee (GHL), a 67-year-old rice company, exports its Yamie brand rice to the United Arab Emirates (UAE) and plans to expand to other Gulf Cooperation Council (GCC) countries. GHL's regional manager said, "As a small country, the local food industry needs to develop and expand. The overseas Muslim market is a market with great potential and in urgent need of development."

In 2008, Singapore signed a free trade agreement with the Gulf Cooperation Council (GCC), officially recognizing Singapore's MUIS certificate. The MUIS certificate confirmed that although Singapore is not a country with a predominantly Muslim population, it has a strict Halal standard implementation system.

"Singapore's MUIS certificate is widely recognized worldwide. Our certification standards are very strict and also very popular," said Malek Mattar, deputy president of the Singapore Malay Chamber of Commerce.

MUIS HALAL标志MUIS is Singapore's primary halal certification body, authorizing certification for central dining halls, factories, slaughterhouses, and more. In 2014, TFK Corporation, the Japanese subsidiary of SATS Group, became the first company overseas to receive MUIS halal certification (for its central dining hall at Tokyo's Narita Airport), with MUIS implementing halal oversight.

That same year, revenue from MUIS certification in Singapore exceeded US$4 million – up from US$2.98 million in 2013, according to MUIS's annual report. Meanwhile, the number of certified products has grown fivefold compared to the previous 15 years – from 533 in 2000 to 2,941 in 2014.

Meanwhile, Singapore has been the most popular tourist destination for Muslims (outside of non-Muslim destinations) for three consecutive years (2012-2014), according to the Global Muslim Travel Guide. Furthermore, Singaporean Muslims are among the top 15 countries with the highest purchasing power, according to the Economist Intelligence Unit (EIU).

“Interestingly, despite being a non-Muslim country, Singapore has mandated the enactment of AMLA (the Law on Muslims, implemented in 1968) to protect the halal industry. It is a framework that ensures the legality and authenticity of halal. The same law was only implemented in Malaysia 3-4 years ago,” said Fazil Hamid, chief advisor at SimplyHalal International.

Although Muslims are not a majority in Singapore, Singapore's halal industry is undoubtedly successful, said Mr. Fazil. "Other countries, such as Japan and China, look to us as a successful example and hope to implement the same system without damaging cultural factors.

Next, Mr. Malek of the Singapore Malay Chamber of Commerce said, he is committed to Singapore's position on the global halal map. He said: "With the establishment of the AEC (ASEAN Economic Community), Singapore will have the opportunity to strategically take a leading position in the halal market. We will become the center of the halal supply chain in Asia, and potentially even the world."

Mr. Malek said that halal consulting agencies are a key factor. As a basic service agency, they provide training to companies and guide them into the halal market.

Fazil of SimpleHalal says there are currently more than 10 active consultancies in Singapore—three of which are non-Muslim firms—helping companies obtain local or international halal certification. His other firm, HCS Consulting, currently charges consulting fees ranging from S$500 for school cafeterias to S$6,000 for catering companies or manufacturing plants.

“New halal consultancy firms are established every year, but they usually fail within a year due to fierce competition,” Fazil said.

Finally, being halal certified doesn't mean a business caters only to Muslims, or that the food they serve is less delicious, said Nicholas Tan, marketing director at Toasties. He noted that a certified sandwich shop is often referred to by locals as "Halal Subway." The latter—unlike fast food chains like McDonald's, KFC, and KFC—is not halal certified in Singapore.

Mr Tan said: “Many people believe that halal food lacks the taste of non-halal food. At Toasties, we always do a lot of product research and improvement, combining different flavors to meet the needs of different people. I believe that through more efforts and experiments, we can eliminate this prejudice.

Toasties aims to serve as many delicious dishes as possible. After all, in Singapore, we are a diverse people.

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