KOTA BARU - Malaysia will base its Islamic financial system on the principles of maqasid al-syariah, which are goals to meet the foundations of the faith, life, lineage, intellect and property.
Prime Minister Datuk Seri Najib Tun Razak said Malaysia was already a role model country promoting a Syariah compliance banking system that had been implemented by many local and foreign banks.
"As such, Malaysia will initiate moves for the philosophy and principles of maqasid al-syariah to be practised in terms of investment and financial management," Najib, who is Finance Minister, said when opening the Amanah Saham Malaysia Week at Tunjung here yesterday.
Also present were Kelantan Mentri Besar Datuk Ahmad Yakob, International Trade and Industry Minister Datuk Seri Mustapa Mohamad and Permodalan Nasional Bhd chairman Tun Ahmad Sarji.
Najib said Malaysia aims to be at the forefront for a comprehensive and holistic Islamic financial system adopting the muamalah agenda for the banking industry.
He said the country had blazed the Islamic financial system through the inception of Islamic Bank.
"To this end, RM200 million (S$77 million) was spent to set up a research centre and an International Syariah Research Academy.
"The research efforts include the complete components of the financial systems in accordance with the syariah principles and maqasid al-syariah," Najib said.
The Islamic compliance financial system, he added, had attracted the attention of other countries that Malaysia had become the centre of reference for the management and operations based on Syariah governance.