The Influence of Political Stability on Malaysia's Halal Food Exports to OIC Countries: Key Insights

Abstract

Halal food security ensures that food products and production processes comply with Islamic dietary laws, providing benefits beyond religious obligations. These include strict quality control measures that enhance safety, cleanliness, and product consistency, reducing the risk of foodborne illnesses for all consumers. For Muslim customers, halal certification offers assurance and trust that products meet Islamic requirements, encouraging confidence in their purchases. The global halal food market presents significant business opportunities, valued at billions of dollars. Countries and companies that prioritise halal food security can tap into this expanding market, particularly in regions with large Muslim populations. To export food to Muslim-majority countries or markets with substantial Muslim consumer bases, halal certification is essential. In the other aspects, political stability plays a critical role in facilitating the export of halal products. It strengthens regulatory integrity, enhances the reputation of certifying authorities, fosters trade agreements, attracts investment, and supports stable supply chains. These factors contribute to increased consumer confidence and allow countries to better meet the growing global demand for halal goods. Malaysia, in particular, is well-positioned to leverage this opportunity. This paper focusing on impact of political stability on Malaysia’s halal food exports to 55 Organization of Islamic Cooperation (OIC) member states from 2010 to 2021, using the Random Effects Model (REM), reveals that political stability in OIC countries has a significantly positive impact on Malaysia’s halal food exports. This stability allows Malaysia to capitalise on its unique position in the halal market, enabling stronger export potential to OIC nations.