This chapter is an attempt to discuss the Halal policy based on Islamic value with special reference to Islam Hadhari, which can be a model for development of the Muslim community in ASEAN as strategy in counterterrorism. It may become a basis policy for ASEAN Islamic political policy for Muslims in ASEAN countries. It has been found that Islam Hadhari is one of the most suitable policies for the development of the ASEAN community since more than 40% of ASEAN’s population of 560 million is Muslim. It is applicable in the era of globalization because Islam in this context is not only concerned with matters related to worship but beyond that, education and the economic, trading and financial system. ASEAN has to response and accept the challenges not by using force and violence but by the integrity, diversity-based interaction and integration of civilized dialogue. Through dialogue, ASEAN can communicate, interact, learn and integrate knowledge of various fields and also learn and develop new concepts and theories. Constructive criticism during the dialogue is very much respected. Differences of opinion are common in our lives as human beings on earth.