Last updated: 2026-01-298 min read

Halal Certification Loan Malaysia 2026

Getting Halal certified opens doors to a RM3 trillion global market. But the certification process and facility upgrades can be expensive. Here's how to finance your Halal compliance journey.

Quick Facts

Pro Tip

Halal certification isn't just for Muslim-majority markets. Many global retailers require Halal certification even for non-food products as a quality assurance standard.

Why Get Halal Certified?

Market Access

MarketHalal Industry ValueGrowth
MalaysiaRM50 billion8% annually
IndonesiaRM170 billion10% annually
Middle EastRM200 billion7% annually
Global TotalRM3+ trillion12% annually

Business Benefits

  • Access to halal-only retailers and distributors
  • Required for government and GLC contracts in Malaysia
  • Premium pricing in many markets
  • Quality assurance credibility
  • Export certification recognition

Costs of Halal Certification

JAKIM Certification Fees

CategoryFee Range
Application feeRM100 - RM800
Certification feeRM200 - RM3,000
Renewal feeRM100 - RM800
Audit fee (if required)RM500 - RM2,000

Pro Tip

JAKIM fees are affordable. The real costs are facility upgrades, dedicated equipment, and operational changes needed to meet halal requirements.

Facility Upgrade Costs

RequirementTypical Cost
Dedicated halal production lineRM50,000 - RM500,000
Separate storage facilitiesRM20,000 - RM100,000
Sertu (ritual cleansing) processRM5,000 - RM50,000
Equipment modificationRM10,000 - RM200,000
Staff training programsRM5,000 - RM20,000
Consultant feesRM10,000 - RM50,000

Financing Options for Halal Certification

1. HDC Halal Development Grants

Halal Development Corporation (HDC) offers grants for certification:

Halal Certification Grant

  • Amount: Up to RM30,000
  • Coverage: JAKIM certification fees, consultant fees, audit costs
  • Eligibility: First-time halal certification
  • Matching: 50% matching (you pay 50%, grant covers 50%)

Halal Facility Upgrade Grant

  • Amount: Up to RM100,000
  • Coverage: Equipment, facility modifications
  • Eligibility: SMEs upgrading for halal compliance
  • Matching: 50% matching

HDC Grant Requirements

  • SSM registered Malaysian company
  • 51% or more Malaysian-owned
  • SME classification (annual sales under RM50 million)
  • First-time halal certification applicant (for certification grant)
  • Food, cosmetics, pharmaceuticals, or logistics sector

2. Bank Islam Halal Financing

Halal Industry Facility-i

  • Amount: RM50,000 to RM10 million
  • Rate: From 5% p.a. (profit rate)
  • Tenure: Up to 7 years
  • Use: Facility upgrades, equipment, working capital

Features:

  • Shariah-compliant financing
  • Tailored for halal industry needs
  • Flexible collateral requirements
  • Industry expertise in assessment

3. SME Bank Halal Programs

Skim Pembiayaan Halal

  • Amount: RM50,000 to RM5 million
  • Rate: Competitive rates with government subsidy
  • Tenure: Up to 7 years
  • Target: SMEs pursuing halal certification

SME Bank Advantages:

  • Development bank mandate (more flexible criteria)
  • Understands halal industry requirements
  • Longer track record not always required
  • Can combine with TEKUN for smaller components

4. TEKUN Halal Micro-Financing

For smaller halal businesses:

  • Amount: RM5,000 to RM100,000
  • Rate: 4% flat rate
  • Tenure: Up to 5 years
  • Target: Bumiputera halal entrepreneurs

Best for:

  • Small F&B businesses seeking halal certification
  • Home-based halal food producers
  • Initial halal compliance costs

5. MATRADE Export Halal Grants

For halal businesses targeting export:

Market Development Grant

  • Up to RM300,000 for international marketing
  • Trade fair participation
  • International certification (GCC, MUIS, etc.)

Export Ready Program

  • Training and capacity building
  • Market entry support
  • Buyer matching services

Planning halal certification? We can help identify the right financing mix for your situation.

Step-by-Step: Financing Your Halal Journey

Phase 1: Assessment & Planning

Initial Assessment

  • Gap analysis: current status vs. halal requirements
  • Cost estimation for all necessary upgrades
  • Timeline planning (certification typically takes 3-6 months)
  • Identify which financing options suit your needs
  • Engage halal consultant if needed

Phase 2: Apply for Grants First

  1. Apply to HDC for certification grant (if eligible)
  2. Apply to MATRADE if targeting export
  3. Wait for approval before incurring major costs
  4. Grants can take 1-3 months to process

Phase 3: Finance Larger Investments

After grants are secured:

  1. Calculate remaining funding gap
  2. Apply for appropriate loan (Bank Islam, SME Bank, etc.)
  3. Time disbursement with contractor/equipment delivery

Phase 4: Complete Certification

  1. Implement upgrades as per halal requirements
  2. Train staff on halal procedures
  3. Apply to JAKIM for certification
  4. Pass audit and receive certification

Halal Certification Process

JAKIM Certification Steps

StepDurationNotes
Online application1 dayMYeHALAL system
Document review2-4 weeksMay request additional docs
Premise inspectionScheduled1-2 days on-site
Panel evaluation2-4 weeksReview inspection findings
Approval & certificate1-2 weeksIf passed
Total timeline3-6 monthsVaries by complexity

Common Certification Challenges

Watch Out For These Issues

  • Shared equipment: Cannot share with non-halal production
  • Supply chain: All ingredients must be halal-certified
  • Storage: Dedicated halal storage required
  • Staff training: Must demonstrate halal handling knowledge
  • Documentation: Traceability records required

Industry-Specific Halal Financing

Food Manufacturing

NeedFinancing OptionAmount Range
Production lineSME Bank / Bank IslamRM100K - RM2M
Cold storageGTFS (green) + HalalRM50K - RM500K
Packaging equipmentHire purchase / LeasingRM20K - RM200K
Working capitalGGSM2 bank loanRM50K - RM500K

Food Services (Restaurants/Catering)

NeedFinancing OptionAmount Range
Kitchen renovationSME BankRM30K - RM200K
EquipmentTEKUN / LeasingRM10K - RM100K
Certification costsHDC GrantUp to RM30K grant

Cosmetics & Personal Care

NeedFinancing OptionAmount Range
Lab setupSME Bank / Bank IslamRM100K - RM1M
Testing & certificationHDC GrantUp to RM30K grant
Production equipmentLeasing / GGSM2RM50K - RM500K

Logistics & Warehousing

NeedFinancing OptionAmount Range
Dedicated fleetHire purchaseRM100K - RM1M
Warehouse setupSME BankRM100K - RM2M
Cold chain equipmentGTFSRM50K - RM500K

Combining Multiple Financing Sources

Smart financing often combines multiple sources:

Example: Small F&B Manufacturer

ComponentCostFinancingYour Portion
Certification feesRM10,000HDC Grant (50%)RM5,000
EquipmentRM80,000SME Bank LoanRM0 (financed)
Facility upgradeRM50,000Bank Islam LoanRM0 (financed)
ConsultantRM15,000HDC Grant (50%)RM7,500
Working capitalRM30,000TEKUNRM0 (financed)
TotalRM185,000RM12,500 cash needed

Frequently Asked Questions

Frequently Asked Questions

Start Your Halal Certification Journey

The global halal market is growing fast. Don't let financing be a barrier to accessing these opportunities.

Disclaimer: Interest rates, loan amounts, and eligibility requirements shown are indicative and subject to change. Contact the respective bank or institution directly for the latest rates and terms. Last reviewed: January 2026.

Plan Your Halal Certification Financing

Free consultation to map out your halal certification costs and identify the best financing mix. Grants, loans, and expert guidance.