Report: 90% of shoppers in Malaysia and Indonesia prioritise faith-aligned brands

A new report by Mastercard and CrescentRating reveals that an overwhelming 90% of Indonesian and Malaysian consumers prioritise brands that align with their faith-based values. This insight underscores the growing significance of ethical, halal-compliant, and culturally relevant branding in Southeast Asia's Muslim-majority markets.

Businesses looking to tap into these economies must go beyond halal certification and understand the deeper consumer preferences that drive trust and loyalty. The Unlocking Consumer Trust and Brand Engagement report highlights how brand trust, ethical practices, and digital engagement shape purchasing decisions.

While halal compliance remains a fundamental requirement, consumers also demand transparency, sustainability, and responsible sourcing from brands. With social media platforms like TikTok and Instagram playing an increasingly central role in brand discovery, companies must refine their digital strategies to remain relevant.

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Malaysia, a leader in the global halal economy, and Indonesia, home to the world's largest Muslim population, present significant opportunities for businesses willing to align their offerings with Muslim consumer expectations. The study categorises the market into distinct segments, including intrinsic halal (products tied to religious practices), core halal (daily essentials requiring halal certification), Muslim-friendly (sectors requiring faith-sensitive adjustments), neutral (general consumer goods), and non-halal (prohibited products). Understanding these nuances allows brands to develop tailored strategies for engaging with their target audiences.

"Although Islamic finance and faith-compliant food and beverages are still the biggest drivers of the halal economy, new sectors such as tourism, personal care, wellness, fashion, logistics, and pharmaceuticals are rapidly gaining ground," said Aisha Islam, Mastercard's senior vice president of customer solutions centre for Southeast Asia.

The digital transformation of Muslim consumer behaviour is evident, with 40% of consumers in Indonesia and 26% in Malaysia relying on social media for brand discovery. Ethical sourcing and sustainability are also gaining traction, as consumers increasingly demand responsible business practices. In Malaysia, the well-structured halal ecosystem reinforces the link between consumption and religious adherence, making faith-sensitive branding an essential component of business success.

Loyalty programmes play a crucial role in consumer engagement, with 66% of Malaysian consumers actively participating in them and 70% finding them highly effective. In contrast, Indonesia lags behind, with only 34% engagement. However, there is immense potential for businesses to enhance loyalty initiatives through faith-aligned incentives, including charitable giving options and exclusive community-based rewards.

In Indonesia, consumer engagement is highest in the core halal segment, particularly in food and beverages. However, participation in travel and recreation remains lower, influenced by economic conditions and seasonal trends. Similarly, in Malaysia, food and personal care products dominate consumer interest, though engagement in the travel sector is closer to that of electronics.

Indonesian and Malaysian consumers prioritise high quality, halal assurance, and reasonable pricing. These three are non-negotiable. Other factors like customer service, social responsibility, sustainability, and reputation can strengthen a brand's appeal.

Although 90% of consumers prioritise brands that respect faith traditions in both markets, satisfaction is moderate in Indonesia, showing a gap in expectations. In Malaysia, 70% are satisfied with brands meeting their faith-based needs, though there is still room for improvement.

The report introduces the TRUST Framework to help brands build strong relationships with Muslim consumers. Transparency, respect for cultural values, product quality, social engagement, and thoughtful rewards form the foundation of this approach. Brands that successfully integrate these elements into their strategies will be better positioned to foster long-term loyalty and establish themselves as trusted names in the market.

The results are based on surveys, expert and brand interviews, and focus group discussions. Over ten years, Mastercard and CrescentRating have published 29 reports exploring Muslim travel, lifestyle, and consumer behaviour.

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