To become more holistic and to enhance intermediation role of Islamic Financial Institutions (IFIs), it is pertinent for them to consider their participation in the community empowerment initiative (CEI). It is indeed the aspiration of the bank Negara Malaysia, to include the society including the unbankable segment into the financial system as stipulated in the financial sector blueprint 2011-2020. With the current trend of poverty scenario in the country, social empowerment initiative would become a tool to alleviate poverty. The participations of every person of the society in the system would contribute to economic development and future growth.
Recognizing the promising potential of CEI for economic development in the country, IRCIEF-KUIS with its strategic partners and collaborators spearhead further discussion and deliberation on the community empowerment inclusion in the financial system. The role of social benefit mechanism be it philanthropy or social finance in nature has become a vital topic of discussion at local and international discourses. The current global pressure on the sustainability aspect of socio-economic development requires these mechanisms need to be revisited. The Islamic concept of social benefit initiatives such as waqf , zakah and sadaqah could then be further explored towards achieving a more balance economic growth and perfecting the Islamic economic system. Therefore, IFIs may consider its participation to complement the social benefit initiatives.
- To address the importance of social benefit towards a more balance economic development.
- To discuss on the current issues on the social benefit initiatives
- To recommend viable solutions for IFIs in complementing the social benefit initiatives.
Empowering Social Benefit Initiatives Through Engagement of IFIs