Malaysia’s halal cosmetics vie to go global

KUALA LUMPUR -- Being a Muslim, Suraiya Hanafi prays twice during the workday, for which she has to cleanse her face of makeup.

Suraiya is CEO of Tropika, a cosmetics firm in Malaysia that produces virgin coconut oil-based products for mothers and babies and which is striving to carve out a niche in the competitive global marketplace of beauty products.

Malaysia is a country where over 60 percent of the population practices Islam. Islamic teachings and values can come to define many aspects of a Muslim’s life, including cosmetics.

While not a regulatory requirement, many cosmetics products in Malaysia are, or aspire to be, halal-certified. This ensures they meet the industry standard and are manufactured with Sharia-compliant ingredients free of animal parts. 

“Muslim women look for products made with natural ingredients,” Suraiya told The Korea Herald in late February in Kuala Lumpur. “As Muslim women have to pray five times a day, they prefer the compact powder or cushion powder that easily gets cleaned with water during the ablution.”

Suraiya participated in a product development workshop in the Malaysian capital on Feb. 22 jointly organized by the Malaysia External Trade Development Corporation (MATRADE) and ASEAN-Korea Center. The event was designed to enhance the commercial capacity of Malaysian cosmetics companies, drawing on the expertise of Korean firms that have redefined beauty across Asia and beyond.

With 250 people participating, the workshop comprised consultations and simulation exercises, with members of K-Beauty, a leading cosmetics firm in Korea, and the Korea Cosmetics Association sharing their proven strategies in branding, marketing, packaging and distribution.

“Halal has become an increasingly important selling point in the cosmetics industry,” said Dr. Mohd Shahreen, CEO of MATRADE. “Demand for halal cosmetics products is growing with increased awareness of Muslim people who seek products that meet their religious norms.”

Making use of the country’s lush flora and fauna, Malaysian companies are producing their products from traditional herbs and tropical fruits, and exporting them to the world increasingly concerned with organic well-being, he added. 

Cosmetics rank among Malaysia’s top five exports in the lifestyle category. Last year, the country’s cosmetics export reached $280 million through globally recognized brands such as Cosmoderm, Ginvera, Forest Secret, Bio-essence and Silky Girl. Local brands Simplisity, Clara International, Tanamera, Ronasutra, Sireh Emas and Muslimah are popular in the domestic market.

Malaysia's cosmetics industry is increasingly driven by electronic commerce. With growing uses of smartphone and tablet PC, more and more entrepreneurs are switching to online platforms, according to MATRADE.

The organization, under the Ministry of International Trade and Industry, supports Malaysian firms to enhance their competitiveness and reach the global market using commercial intelligence and worldwide networks.

In a separate interview, Mawarni Hassan, CEO of Cosmoderm, said Korea’s achievements as Asia’s leading cosmetics producer are inspiring to Malaysian companies that aspire to become global brands.

“I want to turn my company into a global halal brand of choice,” she said, adding Cosmoderm offers skin care products of cleansers, toners and moisturizers, as well as body care products. 

Unlike in Korea, Japan and China, where “good skin” marks the basis of beauty, many Southeast Asian women use skin care to appear fair and cover facial blemishes, Mawarni explained.

“From young, many often use products containing mercury and hydroquinone that are damaging to the skin, while giving a quick whitening effect. They later look for products to heal and rejuvenate the skin,” she said.

The region’s hot and humid climate, coupled with air pollution, make cleanser, moisturizer and sunblock essential.

“I think the main reason for Korea’s success was that everything about the country was appealing, largely on the back of the ‘Hallyu Korean Wave’ boom,” she commented.

As a country with a moderate Muslim lifestyle, Malaysia has the potential to start its own “wave” across Muslim countries in Asia and the Middle East, she contended.

“We are a multicultural, multi-religious and multiethnic society. I think we can develop our national brand, as a country tolerant of differences and protective of people’s rights, while bustling with entrepreneurial energy.”

By Joel Lee, Korea Herald Correspondent (joel@heraldcorp.com)