Dahlan, Ahmad, Shafiai, Muhammad Hakimi Mohd, Wildan, Muhammad, Voak, Adam, and Sugimoto, Kyoichiro (2025) A Laissez-Faire Approach of Muslim NGOs as Minorities in Shaping the Halal Industry & Islamic Banking Law in Japan. Ahkam, 25 (2). pp. 321-338.

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Abstract

This article examines and proves the laissez-faire approach taken in the context of Muslim Non-Governmental Organizations (NGOs) in shaping the development of Japan's halal industry and Islamic banking. Preliminary data support the idea behind this research. Despite representing minority groups in Japan, Muslim NGOs have adopted a non-interventionist approach, empowering market forces and community-driven initiatives to drive the growth of halal products and services. Through their advocacy and collaborative efforts, these organizations have navigated the Japanese legal landscape to promote halal certification, halal food production, and Islamic finance, aligning these sectors with global market trends and local cultural dynamics. Using field research supported by document analysis and interviews, it was found that a laissez-faire model characterized by minimal state intervention in the work of Muslim NGOs in public and private sector involvement in the halal economy and Islamic banking emerges despite the challenges they faced in a non-Muslim-majority country. By tracing the historical context of these developments and analyzing key case studies, this paper offers insights into the intersection of religion, economics, and legal reform in Japan. These findings contribute to a broader discourse regarding the influence of minorities in niche markets, with implications for the future of Islamic finance and the halal industry in both non-Western and non-Muslim contexts.

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