Islamic Social Finance A Strategic Instrument To Eradicate Poverty - Zulkifli

KUALA LUMPUR, Aug 12 (Bernama) -- Islamic social finance has vast potential to be mainstreamed as a strategic instrument in efforts to eradicate poverty and drive the country’s economic development.

Minister in the Prime Minister’s Department (Religious Affairs) Dr Zulkifli Hasan said that to strengthen the sector, the government would explore opportunities for collaboration and innovation with government agencies, higher education institutions and the private sector.

He said the Department of Waqf, Zakat and Haj (JAWHAR) had now been tasked as the lead agency to enhance the governance and professionalism of Islamic organisations, particularly non-governmental organisations (NGOs).

“Collaboration between universities, higher education institutions and the voluntary sector is crucial to streamline and strengthen the governance and management of Islamic NGOs.

“This is important to ensure that the Islamic social finance sector can be mainstreamed alongside other major financial segments in the country,” he told reporters after officiating the MULTAQA SIDR Islamic Social Finance Conference (MULTAQA 2026) here today.

Also present were INCEIF University president and chief executive officer Prof Emeritus Datuk Dr Mohd Azmi Omar, Federal Territories Islamic Religious Council (MAIWP) chairman Datuk Syed Kamarulzaman Syed Kabeer and MAIWP Zakat Collection Centre (PPZ-MAIWP) chairman Datuk Ahmad Azam Ab Rahman.

The event, jointly organised by the PPZ-MAIWP and CoEISF ISRA Institute-INCEIF University, also saw the launch of Malaysia's Islamic Social Finance Report 2026.

The report highlights developments, challenges and the potential of the Islamic social finance ecosystem as a key reference for institutions, industry and academia at the local and regional levels.

Earlier in his speech, Zulkifli said Islamic social finance should operate as ‘The Third Force’, shifting from merely providing consumptive assistance to empowering communities productively.

Touching on the debate on the Royal Commission of Inquiry (RCI) report on Tabung Haji in Parliament yesterday, Zulkifli reminded that any weaknesses in governance and integrity would adversely affect Islamic institutions as a whole.

He said if integrity issues were not addressed amid efforts to mainstream Islamic social finance, it was feared that this could negatively affect the image of Islam itself.

Asked about calls for a new RCI to investigate issues surrounding TH investment losses, Zulkifli declined to comment.

-- BERNAMA