Sharia-Based Global Trade for Empowering Southeast Asian MSMEs: Challenges and Strategic Pathways

Abstract

Sharia-based global trade represents a strategic avenue for empowering Micro, Small, and Medium Enterprises (MSMEs) in Southeast Asia, a region characterized by a substantial Muslim population and growing demand for halal products. Grounded in principles of fairness, transparency, and balance, this trading framework offers significant opportunities for MSMEs to expand their presence in international markets. This study employs a qualitative methodology, informed by an extensive literature review, to explore the impact and potential of Sharia-compliant trade in enhancing the market access, competitiveness, and economic well-being of MSMEs. Findings indicate that, despite MSMEs’ pivotal role as producers and innovators within the halal ecosystem, they encounter persistent challenges, including limited Sharia literacy, restricted access to Sharia-compliant financing, complexities in halal certification, and underutilization of digital technologies. Addressing these obstacles requires coordinated efforts among governments, Islamic financial institutions, academia, and industry stakeholders to foster an inclusive and sustainable halal trade ecosystem. This study culminates in strategic recommendations aimed at reinforcing MSMEs’ capacities and contributions within the global Sharia economic system.