Anwar: Islamic economics must prioritise governance, real-world impact
by AUFA MARDHIAH
PRIME Minister (PM) Datuk Seri Anwar Ibrahim is urging scholars and practitioners to re-centre Islamic economics around good governance, clear policy frameworks and tangible impact, instead of relying solely on halal compliance or anti-'riba' rhetoric.
He further emphasised that said Islamic economics must address structural flaws in Muslim countries, particularly those related to wealth leakage and systemic inefficiencies.
'Our countries are not poor. Poverty exists because of the abuse of power and endemic corruption.
'If we ignore governance, Islamic economics risks becoming hollow,' he said at the launch of the International Centre for Research and Innovation in Islamic Economics (i-RISE) in Kuala Lumpur today.
He stressed that governance and macroeconomic policy should be treated as core pillars of Islamic economic thinking — not afterthoughts — and urged i-RISE to lead in this area.
'You can talk about trillion-dollar halal industries, but if we cannot even break into new markets or support Malaysian business interests, the numbers are meaningless,' he added.
Anwar also noted that the halal sector must evolve beyond product certification to include active participation in global value chains and joint ventures.
True sustainability in Islamic economics must reflect values of justice and compassion, rather than adopt surface-level environmental goals.
He called on scholars to integrate issues such as artificial intelligence (AI), energy transition and digital transformation into the Islamic economic discourse, stating that these are no longer optional fields of study.
'This is not just about Islamic versus conventional finance. We need to build an inclusive, humane and future-ready economic system rooted in our moral and spiritual principles,' he said.
He also urged the International Centre for Education in Islamic Finance (Inceif) and i-RISE to position themselves as drivers of both national strategy and global Islamic economic leadership.
i-RISE is the latest Centre of Excellence under the ISRA Institute, complementing two existing entities — the Centre of Excellence for Islamic Social Finance (CoEISF) and the Centre of Excellence for Applied Shariah in Economics and Finance (CASHiEF).
It is designed to go beyond conventional academic research by positioning itself as a national and global platform for innovation, policy engagement and multisectoral collaboration in Islamic economics.
The initiative is supported by the Islamic Economics Research and Innovation Fund (IERIF), a strategic fund introduced under the national budgets for 2024 and 2025.
Administered by the Ministry of Finance (MOF), the fund has so far channelled over RM12 million into high-impact research and academic programmes, including projects on micro-takaful for underserved communities and ethical labour market reforms.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malaysiakini
an hour ago
- Malaysiakini
Does DAP CEC meet essential criteria?
LETTER | Lately, there has been criticism over the latest DAP Central Executive Committee (CEC) lineup. Doubts have arisen on whether the appointment of short-lived human resources minister V Sivakumar and Buntong assemblyperson M Thulasi to the DAP CEC would boost the support of the Indian community. To me, such a narrowing down of these two DAP leaders to ethnic support reinforces the ethnocentric dimension of Malaysian politics, which seems to be clueless about what exactly is needed to inspire a real change in the country. The incorporation of these personalities and all those who are in the CEC should be assessed not on whether they are capable of representing a certain community, but whether they are passionately able to address issues related to social justice that transcend sectarian feelings. Here are the following criteria that transcend the sentiments of race and religion, which are also relevant to other political parties that would want to promote the common good. People-centric leaders Are the people in the CEC people-centred and articulate the real needs of the people, or are they obedient to the dictates of certain leaders in the party? Are they able to practise the freedom of conscience on critical issues affecting the life and liberty of Malaysians? Are they able to work with political opponents within and outside the party for the good of the people? Grassroots work Are the people in the CEC genuinely involved in grassroots issues related to services and urban poverty by engaging local and state governments? Is there a push for local government polls, or are they finally accepting the irrationality of ethno-religious justification for denying local government elections? Advocates for sustainability Are CEC leadership and members doing what is right to protect the environment and pursuing sustainable practices? What is happening in the reclamation exercises in Penang reveals the kind of leaders who adhere to neo-liberal economic ideology that is antithetical to sustainable development goals. Advocates for workforce's poorest Are the CEC members involved in advocating labour issues and reforms? It is rare to see DAP leaders speaking out for contract workers or migrant workers who provide services to the government and private sectors, who are not adequately represented when dealing with labour issues. Advocates for constitutional rights Are the CEC leadership and members articulate the objective truths related to the rule of law, human rights and the independence of the judiciary? We can't hear much from the DAP since they became part of the coalition government. Advocates for global justice Are CEC members genuinely concerned about issues such as the Palestinian cause, global hegemony by superpowers, and those that affect the family of nations? I have yet to see intellectuals in the DAP who are able to articulate on global issues that have implications for developing countries, including Malaysia. It is time for the public to assess the DAP on these criteria instead of narrowing down issues to ethnic sentiments, which merely reinforces ethnocentric politics in the country. The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.
New Straits Times
an hour ago
- New Straits Times
UK envoy eyes stronger ties with Malaysia in semiconductor sector
KUALA LUMPUR: The United Kingdom's new High Commissioner to Malaysia, Ajay Sharma, has made strengthening bilateral cooperation a key priority, with a particular focus on the fast-growing semiconductor sector and the development of integrated chip design and advanced manufacturing. He said the British government is keen to strengthen linkages and exchange ideas to increase the value chain in both countries in the semiconductor industry and the manufacture of high-end chips. This aligns with Malaysia's ambitions under the National Semiconductor Strategy (NSS) to transition from outsourced semiconductor assembly and testing to high-end manufacturing and niche capabilities such as integrated circuit design. "We have seen a Malaysian company invest in a new compound semiconductor facility in Wales," he said, referring to SMD Semiconductor, a Sarawak state-owned firm that recently opened a research and development innovation hub in Newport, an industrial port city in Wales. "Therefore, I really want to work with Malaysia on the semiconductor industry. Malaysia is already involved in different parts of the value chain, and we can complement and learn from each other," he told Bernama after appearing on Bernama TV's 'The Nation' programme recently. Sharma, who succeeded Ailsa Terry CMG, previously served in Iran, Qatar, Turkey, Moscow and Paris. He also sees potential for a UK-Malaysia partnership in offering specialised courses on semiconductors and chip design in British universities, where a significant number of Malaysian students pursue higher education. Malaysia has huge potential in clean energy "We can also collaborate with local universities to bring Malaysian talent to the UK and set up courses here. Then we could see these courses develop and expand to Malaysia as well," he said. He also highlighted clean energy as an area for increased bilateral cooperation, in which Malaysia has immense potential and where Britain could play a supporting role. "Malaysia has huge natural resources, immense opportunities in clean energy and is working on significant development on carbon capture, green tech and energy transition. Malaysia also has creative and innovative technologies which can be used in our universities, labs and expanded into businesses. "This interests me to try to get more investments from both countries in this sector as well," said Sharma. Sharma said he is keen to boost two-way investments, especially Malaysian investments in the UK, citing successful ventures such as the Battersea Power Station redevelopment, YTL's Brabazon project in Bristol, and contributions in sectors ranging from water utilities like Wessex Water to power generation. At the same time, he aims to raise awareness among UK companies about business opportunities in Malaysia. "Companies in the UK do not know much about the opportunities here in Malaysia, and we need to raise the profile to generate business interest. "So, that is a key area that I would like to fix under my leadership," said Sharma, who stressed this is even more important with Malaysia being a key market for economic growth in the Asean region. CPTPP trade process must be as simple as possible With UK-Malaysia trade worth six billion pounds (about RM34.8billion), the potential for increased trade is huge. "We should be doing much more in many areas, such as tech development, which affects everything from healthcare to life sciences to defence manufacturing. We need to work on these and not be limited to areas we have focused on in the past," said Sharma. He said the UK expects vast new opportunities following its accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on December 15 last year, becoming the first European nation to join the pact. The CPTPP now includes Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United Kingdom and Vietnam. With a combined population of 580 million and accounting for 15.6 per cent of global gross domestic product, the CPTPP is the world's fourth-largest free trade bloc. Sharma noted that the global trading system is under considerable strain, with questions raised about the World Trade Organisation's ability to manage challenges, even before the protectionist measures introduced by the United States. "We really need to find ways to ensure cooperation between our countries to support free trade flows and growth, which is the main reason we were keen to join the CPTPP. "We must ensure the trade administration process is as simple as possible. I wouldn't want people to miss out on a great trade arrangement simply because the process for applying for exemptions, etc, is too complicated or too onerous," he said. The UK government, he added, is working closely with businesses to help them take full advantage of the CPTPP, including through cost savings and improved market access. "As a government, we are working with businesses to make sure they take advantage of these (CPTPP) opportunities," he said.
Malaysiakini
2 hours ago
- Malaysiakini
Does DAP CEC meet essential criteria?
LETTER | Lately, there has been criticism over the latest DAP Central Executive Committee (CEC) lineup. Doubts have arisen on whether the appointment of short-lived human resources minister V Sivakumar and Buntong assemblyperson M Thulasi to the DAP CEC would boost the support of the Indian community. To me, such a narrowing down of these two DAP leaders to ethnic support reinforces the ethnocentric dimension of Malaysian politics, which seems to be clueless about what exactly is needed to inspire a real change in the country. The incorporation of these personalities and all those who are in the CEC should be assessed not on whether they are capable of representing a certain community, but whether they are passionately able to address issues related to social justice that transcend sectarian feelings. Here are the following criteria that transcend the sentiments of race and religion, which are also relevant to other political parties that would want to promote the common good. People-centric leaders Are the people in the CEC people-centred and articulate the real needs of the people, or are they obedient to the dictates of certain leaders in the party? Are they able to practise the freedom of conscience on critical issues affecting the life and liberty of Malaysians? Are they able to work with political opponents within and outside the party for the good of the people? Grassroots work Are the people in the CEC genuinely involved in grassroots issues related to services and urban poverty by engaging local and state governments? Is there a push for local government polls, or are they finally accepting the irrationality of ethno-religious justification for denying local government elections? Advocates for sustainability Are CEC leadership and members doing what is right to protect the environment and pursuing sustainable practices? What is happening in the reclamation exercises in Penang reveals the kind of leaders who adhere to neo-liberal economic ideology that is antithetical to sustainable development goals. Advocates for workforce's poorest Are the CEC members involved in advocating labour issues and reforms? It is rare to see DAP leaders speaking out for contract workers or migrant workers who provide services to the government and private sectors, who are not adequately represented when dealing with labour issues. Advocates for constitutional rights Are the CEC leadership and members articulate the objective truths related to the rule of law, human rights and the independence of the judiciary? We can't hear much from the DAP since they became part of the coalition government. Advocates for global justice Are CEC members genuinely concerned about issues such as the Palestinian cause, global hegemony by superpowers, and those that affect the family of nations? I have yet to see intellectuals in the DAP who are able to articulate on global issues that have implications for developing countries, including Malaysia. It is time for the public to assess the DAP on these criteria instead of narrowing down issues to ethnic sentiments, which merely reinforces ethnocentric politics in the country. The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.
