Law and Practices of Halal Cosmetic Certification in Malaysia: Issues and Challenges

The State of the Global Islamic Economy 2023–2024 projects that by 2027, Muslim expenditure on cosmetics will rise by $129 billion annually, bringing the global cosmetics market to $20.4 billion with a CAGR of 5.60 per cent. However, in Malaysia, the market for halal cosmetic products is still relatively small, with limited production from the local industry due to the stringent halal regulatory frameworks and the complexity of the certification process. The rule include several important laws and guidelines, such as the Trade Description Act 2011, the Trade Description (Definition of Halal) Order 2011, the Trade Descriptions (Certification and Marking of Halal) Order 2011, the Manual of Halal Certification Procedure (Domestic) 2020, the Manual of Malaysian Halal Management System (MHMS) 2020, and the specific standard for halal cosmetic products, MS 2634: 2019—Malaysian Standard of Halal Cosmetics—General Requirements (First Revision). Additionally, before applying for halal certification, cosmetic manufacturers must comply with all relevant cosmetic control systems, which include the Control of Drugs and Cosmetics Regulations 1984, the Guideline for Control of Cosmetic Products 2022, the Poison Acts, and all requirements set by the National Pharmaceutical Regulatory Agency (NPRA). The halal regulatory framework mandates stringent adherence, complicating the certification process for cosmetic manufacturers pursuing halal certification for their products. This difficulty arises from a limited supply of halal raw materials, the extensive documentation necessary for halal certification, and the inconsistent practices among the relevant authorities. Thus, the aim of this study is to examine the role of halal regulatory frameworks that effectively support the implementation of halal certification for cosmetic products in Malaysia. The objectives of this study are a) to examine the concept of halalan toyyiban in cosmetic products; b) to analyse the halal built-in approach as a legal framework for halal certification of cosmetic products in Malaysia; c) to evaluate the regulatory challenges cosmetic manufacturers face in securing and sustaining halal certification for cosmetic products; d) to analyse the role of competent authorities in addressing the halal certification issues raised in halal cosmetic products and e) to recommend new legal and policy changes or interventions to enhance the implementation of halal certification for cosmetic products in Malaysia. A qualitative method was used, where information was gathered through semi-structured interviews with 12 halal cosmetic manufacturers, five officials from halal authorities in different states, and four halal experts. This study reveals that the halal regulatory frameworks do not effectively support the implementation of halal certification for cosmetic products, as cosmetic manufacturers face regulatory challenges in securing and maintaining halal certification for their products. The study also discovered that compliance and administrative issues in halal certification have impeded the role of the halal competent authorities in ensuring the effective implementation of halal certification. The problems with halal certification for cosmetic products need legal and policy changes so that the halal rules can better support the use of halal certification for these products in Malaysia.