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.
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