Taiwanese Businesses Enter the Halal Market Via Malaysia
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Navigating Halal: How Taiwanese Brands are Tapping into Malaysia’s Booming Food Market
Malaysia, known for its diverse and vibrant food culture, offers an array of dishes influenced by Malay, Indian, and Chinese traditions. For over 64% of the population, however, the enjoyment of this rich culinary diversity must align with one important criterion: The food must be halal, adhering to Islamic law. With more than 20 million Malaysian Muslims following a set of dietary and ethical guidelines, halal food represents both a cultural necessity and a thriving market for businesses to tap into.
Culinary Adaptation
For foreign food vendors eager to enter Malaysia, adapting to halal requirements has become essential. A clear example of this is seen in the recent expansion of a Taiwanese coffee shop chain, M5 Coffee, which opened its first location in Kuala Lumpur. According to Chiu Li Wen, the area manager of M5 Coffee Malaysia, the company had to undergo significant changes to meet local demands. “Because of their beliefs and religion, they have a special certification for food – the halal certification,” she explains, noting that finding halal-certified suppliers for raw materials was a lengthy but crucial process.
These adjustments have led to a completely different menu at M5 Coffee’s Kuala Lumpur outlet compared to its original offerings in Taiwan. Popular items like coconut milk lattes and pandan coconut cake, known locally as "ondeh ondeh," have been introduced to suit Malaysian tastes while ensuring all ingredients are halal-compliant. The first step for the company was sourcing halal-certified raw materials, such as coffee beans and sugar, avoiding any suppliers that use alcohol in their production processes.
A Growing Partnership
One of the key suppliers for M5 Coffee is Taiwan’s first halal-certified sugar company. This company participated in the world’s largest halal trade fair in Malaysia, underscoring the growing cooperation between Taiwanese businesses and the local halal market. To meet halal guidelines, the sugar company spent over a year revamping its entire production line, including the processes for winter melon and sugar products, at a cost of more than $50,000 USD. The result is a halal-certified winter melon tea brick, a traditional Taiwanese product that has now been adapted for Muslim consumers.
Stan Xiao, the strategy and marketing manager at Forever Sweety Sugar Trade Co., the supplier for M5 Coffee, emphasized the significance of these changes. “It's really a Taiwan team that can come together and spread this authentic traditional beverage to the world,” Xiao said, reflecting on the broader implications of Taiwan’s growing halal market.
Taiwan is rapidly becoming one of the most halal-friendly countries in East Asia. According to the Taiwan Halal Center, the number of halal-certified businesses in Taiwan has increased from 700 in 2017 to over 1,000 today. Danny Chen, project manager at the Taiwan Halal Center, attributes this growth to the influx of tourists from Southeast Asia and Taiwan’s desire to establish stronger economic ties with the region. “We want to show our friendliness and promote reciprocity by expanding to more Southeast Asian markets,” he noted.
Economic Gateway
Malaysia, recognizing the economic potential of these partnerships, has actively facilitated trade fairs that bring together foreign vendors and local businesses. As Abu Bakar Yusof, the deputy CEO of MATRADE (Malaysia External Trade Development Corporation), pointed out, Malaysia serves as both a key market and a gateway to the larger ASEAN region, which includes 10 countries with a combined population of nearly 700 million people and a GDP of close to $4 trillion USD.
For Taiwan, which has been diversifying its trade relationships beyond China, Malaysia’s halal market presents an appealing opportunity. As more Taiwanese companies seek halal certification and venture into Southeast Asia, Malaysia stands out as a promising economic partner. With strong demand for halal products, both countries have much to gain from this burgeoning trade relationship.
As Malaysia continues to welcome international businesses into its halal market, Taiwanese companies like M5 Coffee are setting a model for how foreign businesses can successfully adapt to local cultural and religious requirements. By embracing halal certification and tailoring their offerings to local tastes, they are not only gaining access to a lucrative market but also fostering stronger economic ties in the region.
