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Kuala Lumpur, 12 June, 2025 – Malaysia marked a significant milestone in its leadership in Islamic economics with the official launch of the Centre of Excellence for Research and Innovation in Islamic Economics (i-RISE) by Prime Minister YAB Dato’ Seri Anwar Ibrahim. Held at Sasana Kijang, Bank Negara Malaysia, the launch was part of the high-level forum “Reshaping the Future: Islamic Economics for a Humane and Sustainable World,” hosted by INCEIF University and its research arm, ISRA Institute.
This event underscored Malaysia’s commitment to advancing a humane and sustainable economic model rooted in Islamic principles, aligning with the Madani concept of sustainability, prosperity, innovation, respect, trust, and compassion.
i-RISE joins two other Centres of Excellence under ISRA Institute—the Centre of Excellence for Islamic Social Finance (CoEISF) and the Centre of Excellence for Applied Shariah in Economics and Finance (CASHiEF)—in spearheading pioneering research and policy-focused work in Islamic economics and finance. The launch event featured a Fireside Chat titled “Empowering Society Through Humane Economics: A Multisectoral Commitment and Role,” which brought together prominent leaders to discuss the practical implementation of these principles.
Event Context and Significance
The launch of i-RISE is supported by the Islamic Economics Research and Innovation Fund (IERIF), with over RM25 million disbursed by the Ministry of Finance for high-impact research, including micro-takaful solutions and ethical labor market reforms. Dr Marjan Muhammad, Deputy President Research, INCEIF University, emphasized that i-RISE embodies a commitment to a values-driven economic model that uplifts human dignity and advances shared prosperity, rooted in justice, compassion, and social responsibility. Professor Emeritus Dato’ Dr Azmi Omar, President & CEO of INCEIF University, described i-RISE as “not just a name, it is a movement,” aiming to make Islamic economics visible, relevant, and transformative globally.
The event coincided with INCEIF’s 20th anniversary, reinforcing its role as a global knowledge leader in Islamic finance and economics. A walkabout exhibition showcased IERIF-funded projects aligned with national development goals and global sustainability targets, highlighting the practical impact of these initiatives.
Fireside Chat: Detailed Discussion
The Fireside Chat, moderated by Professor Emeritus Dato’ Dr Mohd Azmi Omar, featured three panellists: Tan Sri Azman Mokhtar, Chairman, INCEIF University Board of Directors and MIFC Leadership Council; Mr. Adnan Zaylani Mohamad Zahid, Deputy Governor, Bank Negara Malaysia; and Tan Sri Abdul Wahid Omar, Recipient of the 2025 Saleh Kamel Award for Islamic Economics. The discussion contrasted modern capitalist systems with Islamic economic principles, focusing on justice, equity, and sustainability.
Tan Sri Azman Mokhtar: Strategic Investment Perspective
Tan Sri Azman framed humane economics as a moral-based system rooted in Islamic values, aiming for success in both this world and the hereafter. He recalled that economics was historically labeled the “dismal science” by Thomas Carlyle due to pessimism about resource scarcity, but argued that Islamic economics offers a more optimistic, value-driven approach. He identified three pressing challenges:
- Inequality: Widening gaps in economic opportunities and outcomes.
- Climate and Environment: Human stewardship failures, driven by overconsumption and greed, despite regulatory efforts.
- Crisis of Humanity: Mental health issues, anxiety, and violence, partly attributed to the secularization of knowledge.
From his experience at Khazanah, he advocated for a stakeholder economy over a shareholder-only focus, measuring “true value” across financial, economic/strategic, and societal dimensions. He cited Project Kronos, which assessed sustainable value in investments like Tenaga Nasional’s environmental impact, and emphasized Islamic finance’s moral certainty and stability, contrasting it with Western systems’ shifting values. He called for a “clarion call” to contribute globally to a more humane economic system.
Mr. Adnan Zaylani Mohamad Zahid: Regulatory Perspective
Mr. Adnan viewed human economics through a regulatory lens, focusing on ensuring financial systems support well-being beyond material goals. He stated, “The whole purpose of having an economy is to look beyond this material, to look at wellbeing,” highlighting Bank Negara Malaysia’s efforts in financial inclusion, such as rural banking access and safe transactions. He discussed the Value-Based Intermediation (VBI) framework, now nearing a decade, which has facilitated over RM650 billion in financing, balancing profit with social impact through micro-financing and risk-sharing models.
On monetary systems, he argued that money’s origins lie in credit rather than barter, challenging the notion of a purely commodity-based system like gold. He suggested e-money and digital assets are valid if they serve as mediums of exchange and called for research into historical Islamic monetary practices to inform a just system, emphasizing policies grounded in justice and compassion.
Tan Sri Abdul Wahid Omar: Market Perspective
Tan Sri Wahid argued that economic progress and compassion are not mutually exclusive, stating, “I think people are often mistaken that pursuing economic progress or profits and doing it in an inclusive and sustainable manner with compassion and equity, which is the core of a humane economy, would be mutually exclusive. They’re not.” He shared Maybank’s success in “humanizing financial services” during the 2008-2010 crisis, growing profits from RM700 million to over RM6.4 billion while addressing employee and community needs.
He highlighted Malaysia’s organized Zakat and Waqf systems as tools for addressing inequality and inclusion, suggesting enhancements like benevolent loans for the poor. He discussed the Bursa Gold Dinar platform, making gold investment accessible, and supported gold as an inflation hedge while acknowledging digital platforms’ efficiency. However, he identified a key challenge: wage disparities, noting Malaysia’s low wages-to-GDP ratio (33%) compared to developed countries (50-60%), and called for policies like minimum wage increases and education reform.
Q&A Session: Audience Engagement
The Q&A session featured four questions, primarily from women, focusing on individual development, education, Sukuk governance, and monetary systems. Below is a detailed breakdown:
| Question | Summary | Panelists’ Response |
| Lecturer | Emphasized developing individuals who drive Islamic economic initiatives, focusing on Khalifa values. | All panelists agreed on the importance of education. Tan Sri Azman called it the “great leveler” and highest ROI, noting human free will. DG Adnan highlighted Islamic finance’s moral roots, while Tan Sri Wahid Omar stressed industry absorption through internships. |
| Student Engagement | Asked how students can contribute despite limited experience, noting their undervalued status. | Panellists emphasized education’s transformative potential. Tan Sri Azman reiterated its role, Tan Sri Tan Sri Wahid Omar suggested aligning outputs with industry needs, and DG Adnan encouraged student research and policy engagement. |
| Sukuk Governance | Raised concerns about accountability in Sukuk-funded projects like the MEX2 highway. | Tan Sri Wahid Omar explained public-private partnership oversight ensures viability but acknowledged failures due to fund diversion, stressing transparency and enforcement. Tan Sri Azman deferred to him. |
| Nature of Money | Questioned if money should return to commodity-based forms like gold, referencing the Prophet’s time. | DG Adnan clarified early Islamic use of Roman money before dinars/dirhams, suggesting credit and physical money can coexist. He advocated research into historical practices. Tan Sri Wahid Omar supported gold’s inflation hedge role but emphasized digital efficiency. |
Conclusion and Implications
The launch of i-RISE and the Fireside Chat underscore Malaysia’s leadership in advancing a humane and sustainable economic model through Islamic economics. By addressing global challenges like inequality, environmental degradation, and human crises, i-RISE aims to foster innovation and multisectoral collaboration. The panellists’ insights highlight the potential of Islamic economics to integrate moral values, promote financial inclusion, and balance profitability with social impact, positioning Malaysia as a global leader. The emphasis on education, transparency, and research into monetary systems suggests a forward-looking approach to reframe economic thinking for the common good.
The event was covered by The Malaysian Reserve:
https://themalaysianreserve.com/2025/06/17/islamic-finance-must-serve-people-not-profit/