PM Anwar Urges Islamic Councils to Engage Experts for Better Zakat Management

KUALA LUMPUR, Jan 11 — Prime Minister Datuk Seri Anwar Ibrahim has called on Islamic Religious Councils in Malaysia to collaborate with financial industry experts to improve their expenditure and investment management. This move, he emphasized, is crucial to prevent financial losses caused by uninformed or inefficient investment decisions.

Speaking at the ‘Forum Ilmuwan Malaysia Madani KPT Series Four: Using Technology in Financial Services to Drive Prosperity and Inclusivity’ last night, Anwar highlighted the importance of seeking advice from established financial institutions and professionals, including Maybank, the Securities Commission Malaysia (SC), Bursa Malaysia, and other major corporations.

“There’s nothing wrong with Islamic Religious Council management seeking expertise from Maybank, SC, Bursa Malaysia, or major corporations for advice. They will provide input and also consider it from a syariah perspective,” he explained.

The Prime Minister expressed concern over the lack of collaboration, noting that many councils operate in silos, which leads to investments in unprofitable ventures due to insufficient financial expertise. “This isn’t happening because everyone operates in silos. They end up investing in unprofitable areas due to a lack of expertise in the field,” he added.

Anwar also stressed that his administration has adopted a similar approach, incorporating financial expertise to enhance governance and ensure the efficient management of public funds.

Focus on Zakat Fund Management

In addition to addressing investment strategies, the Prime Minister urged Islamic Religious Councils to prioritize the efficient management of zakat (almsgiving) funds. He emphasized the need to avoid duplication of efforts with other agencies to ensure that the funds reach those in need effectively.

Efficient zakat fund management is particularly critical in addressing poverty alleviation and supporting vulnerable communities. Anwar underscored the importance of accountability and transparency in fund allocation to maximize the impact of zakat collections on socio-economic development.

Collaboration as a Path to Progress

The forum also highlighted the integration of technology in financial services as a means to drive inclusivity and prosperity. By leveraging technology and financial expertise, Anwar envisioned a more modernized approach to managing Islamic finances, aligning them with both syariah principles and contemporary economic demands.

The Prime Minister’s remarks underscore the need for greater synergy between Islamic institutions and financial experts, fostering innovation and sustainability in managing public resources. Such collaborations, he noted, would enhance not only financial efficiency but also the overall well-being of the Muslim community.

As Malaysia continues its journey toward economic resilience, Anwar’s call for strategic partnerships between Islamic councils and financial experts serves as a reminder of the importance of professional guidance in navigating today’s complex financial landscape.