Kuala lumpur: 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 emphasized the importance of this sector at the MULTAQA SIDR Islamic Social Finance Conference (MULTAQA 2026).
According to BERNAMA News Agency, Dr Zulkifli announced that the government plans to explore opportunities for collaboration and innovation with government agencies, higher education institutions, and the private sector to strengthen Islamic social finance. The Department of Waqf, Zakat, and Haj (JAWHAR) has been assigned as the lead agency for enhancing the governance and professionalism of Islamic organizations, particularly non-governmental organizations (NGOs).
Dr Zulkifli stressed the necessity of collaboration between universities, higher education institutions, and the voluntary sector to streamline and fortify the governance and management of Islamic NGOs. He highlighted the importance of mainstreaming the Islamic social finance sector alongside other major financial segments in the country. The conference was attended by notable figures including INCEIF University president Prof Emeritus Datuk Dr Mohd Azmi Omar, and leaders from the Federal Territories Islamic Religious Council (MAIWP).
The event also marked the launch of Malaysia's Islamic Social Finance Report 2026, which outlines developments, challenges, and the potential of the Islamic social finance ecosystem. This report is expected to serve as a key reference for institutions, industry, and academia at both local and regional levels.
In his speech, Dr Zulkifli called for Islamic social finance to operate as 'The Third Force', transitioning from merely providing consumptive assistance to empowering communities productively. He also addressed concerns raised in Parliament regarding the Royal Commission of Inquiry (RCI) report on Tabung Haji, warning that any governance and integrity weaknesses could adversely impact Islamic institutions and the image of Islam itself. However, he refrained from commenting on calls for a new RCI to investigate issues surrounding TH investment losses.