El-Barka: Journal of Islamic Economics and Business
Vol. 8 No. 1 (2025)

The Integration of Islamic Social Finance Towards Accelerating Economic Development in Malaysia

Mahadi, Nur Farhah (Unknown)



Article Info

Publish Date
28 Jun 2025

Abstract

This study constructs a comprehensive framework for an integrated Islamic social finance model in Malaysia, exploring how instruments like zakāt, waqf, Islamic microfinance, and Islamic crowdfunding (e.g. ṣadaqah, infāq, and hibah) rooted in principles of Maqāṣid al-Sharīʽah can accelerate Malaysian economic development and foster a prosperous and inclusive society by aligning with key national blueprints such as the Shared Prosperity Vision 2030, Twelfth Malaysia Plan (12MP),  and the MADANI Economy framework. This study adopts a qualitative approach, it undertakes a comprehensive desk-based review of academic and institutional literature to perform a thematic and content analysis, aiming to construct a conceptual framework for an integrated Islamic social finance system in Malaysia and propose its application to accelerate economic development by supporting vulnerable populations. This study reveals that the synergy of Islamic social finance instruments is poised to enhance Malaysia's MADANI Economy framework, fostering a progressive and prosperous nation by aligning with national policies and the Sustainable Development Goals (SDGs), and thereby elevating both economic competitiveness and citizens’ quality of life through the collaborative efforts of key public and private stakeholders. In conclusion, this study articulates an integrated Islamic social finance framework, emphasizing the collaborative potential of key Malaysian government and financial institutions to foster a just and prosperous nation by empowering vulnerable communities and aligning economic development with sustainable, inclusive principles, thereby positioning Malaysia as a global leader in an integrated Islamic social finance framework.

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Journal Info

Abbrev

elbarka

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

El Barka is a semiannual journal published by the Faculty of Islamic Economics and Business IAIN Ponorogo and cooperate with Ikatan Ahli Ekonomi Islam Indonesia (IAEI). El Barka accepts original scientific writings that have never been published in the field of economics, islamics economics and ...