New insights highlight the importance of Halal assurance and digital engagement in Southeast Asia’s burgeoning markets.
A recent report by Mastercard and CrescentRating unveils critical strategies for businesses aiming to connect with Muslim consumers in Indonesia and Malaysia. The study emphasizes the significance of Halal assurance, ethical practices, and digital engagement in these rapidly growing markets.
The report identifies five distinct market segments: Intrinsic Halal, Core Halal, Muslim-Friendly, Neutral, and Non-Halal. Understanding these categories enables brands to tailor their offerings effectively. For instance, the Core Halal segment includes daily essentials like food and personal care products, where Halal certification is imperative.
Digital platforms, particularly TikTok and Instagram, have become pivotal in brand discovery. The study reveals that 40% of consumers in both countries use these platforms to find new brands, highlighting the necessity for a robust online presence.
Quality, price, and Halal assurance are paramount in purchasing decisions. Indonesian consumers prioritize quality (4.6), followed by Halal assurance (4.4) and price (4.3). In Malaysia, Halal assurance leads (4.8), with quality (4.7) and price (4.5) closely following. This underscores the need for brands to maintain high standards and competitive pricing while ensuring Halal compliance.
Loyalty programs present a strategic opportunity, especially in Malaysia, where 66% of consumers participate in such initiatives, and 70% find them highly effective. In contrast, only 34% of Indonesian consumers engage in loyalty programs, suggesting potential for growth through enhanced visibility and personalized incentives.
The TRUST Framework outlined in the report offers a roadmap for brands:
- Transparency & Trustworthiness: Prioritize ethical sourcing and clear Halal certification.
- Relevance to Faith & Culture: Align products with Islamic values.
- Unwavering Quality: Maintain consistent product excellence.
- Social Connection: Engage through community initiatives and influencer partnerships.
- Thoughtful Rewards: Design loyalty programs with personalized benefits.
By embracing these strategies, businesses can foster trust and loyalty among Muslim consumers in Indonesia and Malaysia, positioning themselves for success in these dynamic markets.
For more details, access the full report at: Mastercard-CrescentRating Indonesia & Malaysia Muslim Brand Engagement Report 2025
