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Thailand, where Buddhism reigns, challenges Malaysia for Asia’s halal crown

October 18, 2024
in Muslims News
Reading Time: 13 mins read
0

Wanitcha Amkham rotates her roti stall between the Thai capital’s food markets throughout the week, hawking pan-fried dough that has been perfected in recipes passed down generations.

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Amkham is a Muslim and her roti, stuffed with fillings such as banana, cheese, chicken and onions, are all halal.

Over the years plying her trade on the streets of majority-Buddhist Bangkok, she has earned a loyal fan base among Muslim office workers, students and tourists.

But recently, Amkham has become concerned that other street vendors are abusing the halal label to lure unsuspecting customers.

“One time, my stall was located next to a fried squid stall,” the 39-year-old street vendor told Al Jazeera.

“I saw a halal sign at the stall but the seller bought food laced with pork and ate it, before returning to selling squid without proper cleaning. I asked him why he did this and he said the halal sign helped bring more customers. He also said it was too complicated to ask for a certified halal logo from authorities.”

Thailand is banking that its burgeoning halal industry will deliver a boost to its tourism-reliant economy, which has struggled to bounce back from the COVID-19 pandemic as quickly as many of its regional peers.

Bangkok’s ambitions, however, depend on the trust of Muslim countries and visitors, say analysts, which could be put at risk by fake halal products and gaps in certification in informal markets.

In July, the Thai government unveiled a halal industry action plan aimed at promoting Thai products and bolstering industry standards.

The centrepiece of the four-year plan, which is awaiting final approval, is the establishment of a “halal valley” for producing halal goods, which officials have suggested could be located in Thailand’s Muslim-majority southernmost provinces.

“Thailand’s strength lies in its food, beverage and agriculture sectors. But Malaysia, which has long promoted itself as a halal hub, has gained more credibility and recognition in the Middle East market because it is a Muslim country,” Aat Pisanwanich, an expert on international economics and adviser to Intelligent Research Consultancy Co Ltd, told Al Jazeera.

“It would take a long time for Thailand to gain that kind of confidence and recognition for its halal hub drive.”

Thailand is currently home to some 15,000 companies, 166,000 products, and 3,500 restaurants that are halal-certified, according to government figures released in February.

After Malaysia and Indonesia, the country is the third-biggest exporter to Organisation of Islamic Cooperation (OIC) countries in Southeast Asia.

During the first eight months of 2023, Thailand’s halal exports to the OIC market, including sugar, rice and frozen chicken, hit some $4.1bn, according to government data.

While an estimated 93 percent of Thais are Buddhist, the country’s efforts to cash in on a growing demand for halal goods follow in the footsteps of other countries with small Muslim populations.

Non-OIC countries, including Brazil, China, India, and the United States, are the biggest exporters of halal products to the market, accounting for more than 80 percent of imports, according to the 2022 Annual OIC Halal Economy Report.

The OIC report forecasts that the Muslim population will increase to three billion by 2060, or about 30 percent of the global population.

“Thailand is the centre of supplies,” Fuad Gunsun, vice president of the Thai Muslim Trade Association, told Al Jazeera.

“Thailand as a halal hub means the production is done here using our supplies in order to increase the competitiveness of the same products that can also be produced by Muslim countries like Malaysia, for example.”

Gunsun said that street food often falls through the cracks of the halal certification process due to “a lack of understanding”, which could affect perceptions of the country’s friendliness to Muslim visitors.

In the latest Mastercard-Crescentrating Global Muslim Travel Index, Thailand ranks among the “leading” Muslim-friendly destinations in the non-OIC category and fifth among the non-OIC destinations overall, after Singapore, the UK, Taiwan and Hong Kong

“Thailand has made concerted efforts to attract Muslim travellers over the years,” the authors of the index noted in an accompanying report.

“By providing Halal food options, pioneering in Halal consumer products, and leveraging its substantial Muslim communities”, the report said, the country has ensured that halal food is “generally available, particularly in significant tourism hotspots”.

“In Pratunam [Bangkok’s wholesale shopping area], if operators don’t sell halal food, their customers, which are mostly tourists, can be reduced by half,” Gunsun said.

“When tourists arrive in Thailand, they place their trust in the country in terms of inspection. Most Muslim tourists are careful when it comes to street food, but sometimes it happens in shopping malls as well.”

Some major food companies, including popular fast food chains, have failed to invest in halal options, said Gunsun.

“Some fried chicken chains, for example, might think it is a wasteful investment. But in terms of economic benefits, it is quite wrong, particularly when Thailand wants to be the top tourism country,” he said.

Saha Farms, a major chicken exporter, is among the businesses that have made the effort to gain halal certification.

The company, however, only recently accessed the Middle East due to certain halal requirements in the region, said Jaruwan Chotitawan, Saha Farms Group’s president of overseas sales and marketing.

“Our plants have been halal-certified domestically, but we have also been audited by the teams from Malaysia and the Middle East,” Chotitawan told Al Jazeera.

“We intend to strengthen our halal branding this year, making it a part of our marketing approach, especially in the Middle East,” she said.

For many Thai exporters, halal certification has become a must-have seal of approval for reaching customers.

Halal.co.th, a website managed by the Office of the Central Islamic Council of Thailand, lists thousands of Thai-made halal products, ranging from supplements to chilli paste, fish balls, almond milk and bubble gum.

Gunsun said Thailand could learn from Malaysia’s competitive edge in producing non-food halal products, such as cosmetics and clothing, in particular.

“Malaysia also focuses on halal business studies a lot, while in Thailand this is lagging,” he said.

Gunsun admitted, however, that the fees to obtain a halal certification can seem high for small businesses such as street food vendors.

“But when vendors download the sign from the internet and place it at their stall, it is false advertising and it is punishable by law,” he said.

According to Bangkok’s Islamic Affairs Committee, halal certification starts from 10,000 baht  ($300) for small operators, with additional fees charged for periodic checks, certification extension and documentation, among other extras.

“Having a halal certificate is advisable,” Pisanwanich said, “but Thailand cannot create confidence among foreign Muslim visitors as a halal hub overnight,” he said.

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