During my three years tenure as Executive Committee & Project Director of International Council of Islamic Finance Educators (ICIFE) based at the International Islamic University Malaysia (IIUM), I learned the basic principles underlying Islamic economics is faith or ‘tauhid’ which determines Man's relations with God, and between Man and fellow mankind and other creation. Under this tenet everything in this universe is owned by the Almighty Allah (God) and Man is given the trust or ‘amanah’ to administer and manage the resources available to him as a vicegerent or trustee of God.
The halal economy is unique because it shifts the economic focus from purely maximizing profits to balancing financial gains with ethical responsibility, social wellbeing, and systemic justice. Rooted in Shariah principles, it provides a comprehensive framework governing how wealth is created exchanged, and distributed. Most economic sectors evaluate products solely based on quality, market demand, and regulatory compliance. The halal economy requires an additional dual-layered test: Halal (Permissible) product or service and Tayyiban (Wholesome and Ethical) humanistic business.
Under Malaysia's MADANI Budget 2027, the Islamic model of economic development merges values-based finance, Shariah-compliance digital innovation & targeted social welfare. Key allocations RM3.1 Billion, the government increased funding for religious affairs, with 85.4% dedicated to operating expenditure and 14.6% to development expenditure. The funds support the modernization of religious educational institutions (such as pondok schools), halal SME grants, welfare for religious personnel nationwide, and the scaling of the halal economy by utilizing blockchain technology.
I understand the aim of all economic and social activities in truly Muslim nations is to safeguard & advance ‘Maqasit Shariah’ with 5 components, namely ‘Religious, Self, Mind, Progeny & Wealth’. These 5 components will be further developed through efforts and policies to meet the basic essentials, to meet the overall needs and to further improve without breaking the principles of Islam.
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