BANGKOK, Oct 18 — Thailand, known for its predominantly Buddhist population, is positioning itself to challenge Malaysia as the top halal hub in Asia, with a growing focus on halal products and services.

The Thai government recently introduced a halal industry action plan aimed at promoting Thai halal goods and improving industry standards.

This move comes as Thailand seeks to expand its halal exports, which reached approximately US$4.1 billion during the first eight months of 2023, largely from Organisation of Islamic Cooperation (OIC) countries, according to Al Jazeera.

Despite being home to a small Muslim population, Thailand ranks highly among Muslim-friendly destinations in non-OIC countries.

According to the Mastercard-Crescentrating Global Muslim Travel Index, the country is leveraging its strong agricultural and food sectors to become a significant player in the global halal market.

"Thailand’s strength lies in its food, beverage and agriculture sectors,” Aat Pisanwanich, an international economics expert, told Al Jazeera.

"But Malaysia, a Muslim country, has gained more credibility in the Middle East.”

Thailand’s plan includes developing a "halal valley” in the country’s Muslim-majority southern provinces, further solidifying its bid to rival Malaysia’s halal industry.

However, the road ahead may not be smooth. Some street vendors in Bangkok, like Wanitcha Amkham, have raised concerns about the misuse of halal labels, warning that some stalls falsely advertise their products as halal without proper certification, which Al Jazeera reports is punishable by law.

As Thailand works to tighten regulations and improve standards, it still has significant competition.

Malaysia’s established halal business sector, which extends beyond food to include cosmetics and clothing, gives it an edge in the broader halal market.