The People's Charters
The most common response that I hear when sharing information about the fundamental issues with Islamic finance, and how it needs to be reformed, is – “Well, there is nothing we can do about it”.
So it is my hope to be able to deliver something tangible that people can do. I have written on some approaches that can be taken HERE
That post covers three spearate areas of action:
- Personal Level – things we can do to manage our exposure to Riba
- Community and Commercial Level – such as demanding solutions, supporting positive developments abd projects
- Sytemic Level – to support the movement to extablish a truly sound, and Islamic, basis for money
The People’s Charter is an idea to mobilise the people (ie you) such that practical and clear steps can be taken. These steps would fall in the category of demanding for solutiuons from thos able to deliver them to us.
The idea of a charter can be utilised in a couple of different ways. One could represent a global charter, where Muslims, as a group, vocalise our demands and wishes. However, then the issue becomes – who do we deliver this charter to?
There is no global monolith that controls Islamic finance. One element of Islamic finance that does span borders is that of Shariah. There are Shariah bodies that have a multi-national mandate such as AAOIFI. However, they do not operate in many countries, and in many cases, their ability to mobilise meaningful change is severely limited.
A more concrete recipient would be authorities in individual countries that practice Islamic finance. This could be the government itself, or associated entities such as the regulator, the Ministry of Finance, the central bank, and so on.
As such, I will work on the content of two forms of a People’s Charter:
- A global version that is appropriate for all Muslims globally to support
- A localised version that is tailored towwards specific countries and can be supported by Muslims in those countries.
I will begin with a People’s Charter suitable for Malaysia. I have chosen Malaysia for many reasons:
- A very advanced system of Islamic banking and finance
- Majority Muslim population that is very aware of Islamic finance and has regular interaction with Islamic banks
- A wide educational base for educating Muslims, such as specialist Islamic financse universities and courses
And within the context of a People’s Charter for Malaysia, I shall produce multiple versions. The aim is to share this with readers and obtain feedback as to they type of content and structure that people think is most appropriate. i shall post a regular version of the Charter, and also a more “demanding” version of the Charter. As to whic would be more suitable depends on many factors, including the nature of discussion that is preferred and required.
These versions are to be considered as draft versions. I will be reaching out via email to subscribers, and on social media (I post regularly on X/ Twitter) to ask for feedback and suggestions on how to refine and improve the cvarious versions of the Charters.
The ultimate aim, when the Charters are consdiered to be ready for publication, will be to gather support from Muslims, in sufficient numbers so as to make the presentaiton of the Charter to be a meaningful exercise in the delivery of the will of the people.
For now, please see below for the various versions of The People’s Charter for Islamic Finance:
These Charters explore evolving interpretations of civic rights and representation. Each version reflects a different approach — from concise declarations to expanded democratic ideals. Scroll down to read each, or jump directly using the navigation below
Charter 1 – a shorter version that is easy to digest
Charter 2 – a similar message, just a longer version
Charter 3 – An Ultimatum
Charter 1 - A Shorter Version
The People’s Charter on Islamic Finance in Malaysia
We, the people of Malaysia, affirm our right to a financial system that is true to Islam, that protects our wellbeing, and that serves justice over profit.
We declare our trust in our government, entrusted by Islam with the duty to protect the people, to ensure fairness, and to enable prosperity. We declare our trust in our scholars, the inheritors of the prophets, charged to safeguard the truth and defend the people from harm.
We acknowledge with gratitude the great achievements already made. Malaysia has built a system admired worldwide: strong Islamic banks, deep sukuk markets, a spirit of innovation, and a high standard of regulation and Shariah governance. These are milestones to be proud of.
Yet we must speak honestly. Too often, Islamic finance mirrors conventional finance, changing form but not substance. Too often, debt is repackaged while families remain burdened, homes remain unaffordable, and small businesses remain locked out of opportunity.
Therefore, we, the people, demand:
– A system that serves people before profit.
– Solutions to real needs: housing, healthcare, education.
– Capital for SMEs to thrive, not just loans to repay.
– Transparency in decisions, and education for all Malaysians to understand and benefit.
– Accountability to the higher objectives of Shariah — justice, dignity, and shared prosperity.
We call upon our leaders and our scholars to rise to this purpose. The world already sees Malaysia as a leader. Now let the people feel that leadership in their daily lives.
We speak not in anger, but in hope. Not to reject, but to complete. Not to divide, but to unite around the true spirit of Islam: a financial system that uplifts, empowers, and protects.
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Charter 2 - A Longer Version
The People’s Charter on Islamic Finance in Malaysia
Preamble
We, the people of Malaysia, guided by our faith in Allah and by our duty to seek justice, affirm our right to a financial system that is true to Islam — a system that safeguards our dignity, protects our livelihoods, and strengthens our communities.
We do not ask for favour. We claim what is already promised to us in our faith: a financial order free from exploitation, built on fairness, rooted in compassion, and aligned with the higher objectives of Shariah — the preservation of faith, life, intellect, lineage, and wealth.
Our Trust in Government and Scholars
We affirm our trust in the Government of Malaysia, which Islam charges with the responsibility of protecting the welfare of its citizens. The government is not merely an administrator of policy but a guardian of justice. Its duty is to ensure that wealth circulates fairly among the people, that oppression is not permitted, and that the weak are not left at the mercy of the powerful.
We affirm our trust in the scholars of Malaysia, who hold a sacred duty as inheritors of the Prophets. Scholars are guides to the people and advisers to those in power. Their words carry the weight of truth, and their rulings shape the lives of millions. It is their responsibility to ensure that Islamic finance is not reduced to form without substance, but stands as a living embodiment of divine justice.
To both government and scholars, we declare: we honour your role, we recognise your sacrifices, and we look to you for leadership that places the people first.
Acknowledging Achievements
We acknowledge with gratitude the progress that has been made. Malaysia stands at the forefront of Islamic finance worldwide. Our nation hosts a multitude of Islamic banks, deep capital markets in equities and sukuk, and a thriving ecosystem admired across the globe. Malaysia has pioneered innovation, maintained high Shariah standards, and built frameworks that others seek to emulate.
These achievements bring pride to the people. They show that with vision and determination, an Islamic financial system can be built to global standards.
The Challenges That Remain
But we cannot ignore the truth: beneath the surface of success lie challenges that cut deep. Many products offered in the name of Islamic finance imitate conventional structures without solving the real hardships of the people. Too often, the burden of debt is simply repackaged, leaving families struggling with high costs and limited alternatives.
The cost of housing has soared beyond reach. For many Malaysians, the only path offered is yet another loan, labelled Islamic, but still extracting profit from the people’s need for shelter. This is not the spirit of Shariah. This is not justice.
Small and medium enterprises — the lifeblood of our communities — face barriers to capital. Banks extend debt, but rarely offer true partnership or risk-sharing that would allow local businesses to grow with dignity. The people’s energy and creativity remain locked away, waiting for systems that trust them and empower them.
The Impact on the People
These challenges are not abstract. They touch our homes, our families, our daily lives. Families struggle with unaffordable housing, and entrepreneurs are stifled by lack of fair access to investment.
The result is a system that, despite its noble label, often leaves the people disillusioned. Trust weakens when form is prized over substance, when the people’s needs are spoken of but not truly met.
Our Message to Our Scholars
We recognise that, in the early stages of Islamic finance, many compromises were made to enable its development. These efforts allowed Malaysia to build the foundations of a system that could stand apart from the conventional order. For this, we express our respect and gratitude.
But today, after decades of growth, we must face a difficult truth. The modern Islamic financial system has too often become a framework of permissions — a collection of technical rules that allow and even encourage the proliferation of debt under another name. The term riba has been replaced by profit, yet the outcome for the people remains the same.
Many transactions carried out in the name of Islam do not represent genuine trade or investment. They rely on assets that neither party truly wishes to buy, own, or keep. They do not reflect the moral or ethical spirit of our Shariah, which demands fairness, transparency, and compassion in all dealings.
We therefore call upon our scholars to rise with courage and independence. To place strong restrictions on structures that replicate debt and reproduce the outcomes of riba. To use their authority and their sacred duty to guide the system toward what is halal in both form and substance.
Let our scholars be the voice of renewal — steering Islamic finance away from debt-driven instruments and toward honourable, risk-sharing, and ethical modes of capital distribution that serve the people and please Allah.
The People’s Demands
We, the people, therefore call upon our government and our scholars to rise to the higher purpose of Islamic finance and to act with courage and clarity.
We demand a financial system that prioritises people over profit, substance over form.
We demand innovation that delivers real solutions to pressing needs, especially affordable housing and fair access to capital for businesses.
We demand that scholars ensure rulings protect the people first, not merely the institutions.
We demand systems that channel capital into small and medium enterprises, enabling shared prosperity rather than deepening dependency on loans.
We demand transparency, accountability, and a constant alignment with the maqasid al-shariah — the higher objectives of Islam.
Conclusion
We affirm once more our faith in Allah, our trust in government, and our respect for scholars. But we also affirm our right to hold you accountable, as guardians and guides, to ensure that Islamic finance in Malaysia serves its true purpose: to uplift, to protect, and to deliver justice.
Let this Charter stand as the voice of the people. Let it be heard in the halls of government, in the councils of scholars, and in every institution that claims to serve under the banner of Islam.
We, the people of Malaysia, do not ask for what is impossible. We ask for what is right. We ask for what is already ours: a financial system faithful to Islam, and faithful to the people.
Charter 3 - The Time for Waiting is Over
The People’s Charter on Islamic Finance in Malaysia
Preamble: Enough Waiting
We, the people of Malaysia, declare that decades of effort to build an Islamic banking and finance system have failed. What has been created is not a true reflection of Shariah, but a system that prioritizes form over substance. For too long, the focus has been on creating debt rather than improving the financial condition of the people.
The so-called Islamic structures have served only to give a veneer of faith over the same inequalities found in conventional finance. Ordinary Muslims continue to struggle under financial burdens, while the appearance of compliance has been used to placate complaints.
Scholars, whose guidance should protect and empower the people, have too often been co-opted, their authority misused to justify systems that serve institutions rather than communities.
We have had enough. The time for polite appeals is over. The people demand a financial system that is truly Islamic in spirit and practice — one that alleviates hardship, ensures justice, and serves the needs of the community, not the interests of the few.
Immediate Accountability
The government of Malaysia has had decades to implement meaningful reform in the Islamic financial system. Yet despite repeated promises, little has changed. Islamic banks continue to amass billions in profit while ordinary Muslims fall deeper into debt. What was once conventional riba has merely been repackaged as “Islamic debt,” a cosmetic change that leaves the underlying harms intact. The negative outcomes of interest-based finance remain, now misrepresented as halal.
This is unacceptable. Changes must occur, and they must occur now. We demand clear deadlines for action, measurable outcomes, and a public commitment to enforce them.
The government is entrusted with the sacred responsibility of serving the people. Islam teaches that rulers are guardians, accountable to Allah and to those they govern. When the welfare of citizens is ignored, when financial oppression is allowed to persist, the government violates this divine trust.
Islam does not permit trickery, nor does it accept superficial compliance. Replicating riba and calling it halal is a mockery of the Shariah and an insult to the moral and spiritual integrity of our society. Our religion demands the utmost ethical standards and a complete transformation of the financial system.
We call for a revolution of Islamic finance: a system that serves the people, eliminates exploitation, and restores justice in accordance with Shariah. The government will be held accountable — in the eyes of Allah, and in the eyes of the people — for implementing these reforms fully and without delay.
Concrete Demands for Reform
We demand that the government immediately present a comprehensive plan for reforming Islamic finance in Malaysia. This plan must ensure that Islamic banks serve the people and the nation, rather than prioritizing profit at the expense of pushing further debt onto Muslims.
Specifically, we demand:
Reduction of Debt Issuance:
- The government must pledge to reduce the level of debt issued by Islamic banks to the people by 50% of last year’s total debt issuance within the first 12 months.
- In the subsequent 12 months, a further 50% reduction must be achieved, thereby drastically limiting the spread of new debt while maintaining economic stability.
Protection of Deposits:
- Savings and deposits must remain fully protected by the government. Citizens’ funds cannot be used to subsidize debt or bank profit-making schemes.
Investment Channels for Returns:
- If depositors seek a return on their funds, the government must establish Shariah-compliant investment channels that channel capital into enterprises and SMEs, directly supporting communities and business development rather than enriching financial institutions.
Housing Finance Reform:
- Islamic banks must cease issuing home loans structured like conventional credit creation loans, fractional reserve banking, and riba-based debt.
- Within six months, the government must propose and implement a government-sponsored housing scheme that:
- Purchases homes jointly with buyers, sharing the risks.
- May collect rent from homeowners during the period of shared ownership.
- Allows buyers the opportunity to gradually purchase full ownership over time.
- This approach removes excessive consumer debt and provides practical, Shariah-compliant pathways to homeownership.
Financial Education:
- The government must institute programs to educate the public on how to avoid unnecessary debt and make ethical financial decisions, empowering citizens to participate confidently in an Islamic financial system.
We demand that these reforms be presented publicly within six months, with timelines and mechanisms for enforcement. Anything less than decisive, measurable action will be unacceptable.
Zero Tolerance for Delay
The people of Malaysia have waited long enough. Decades of promises from the government — pledges to create an ethical, moral, and truly Islamic financial system — have yielded nothing but empty rhetoric. Instead of delivering justice and alleviating hardship, successive administrations have pushed Muslims deeper into debt, perpetuated financial inequality, and cloaked these failures in the name of Islam.
We have had enough.
No further delays will be tolerated. The government must understand that its role is to serve the people, not financial institutions. Any attempt to defer, excuse, or dilute these reforms will be unacceptable. The trust placed in the authorities is sacred, and continued inaction is a violation of both divine guidance and public duty.
The people demand immediate, measurable, and verifiable action. Any postponement beyond the deadlines outlined in the reforms will be met with full accountability — in the eyes of Allah, and in the eyes of the people.
The government must remember: it exists for the people, not for profit, and any neglect of this responsibility will be judged accordingly.
The People’s Commitment
We, the people of Malaysia, commit ourselves to vigilance, engagement, and action. We will not remain passive observers while our rights are ignored and our communities bear the burden of debt.
We will monitor the implementation of all reforms, track progress against the timelines set by the government, and hold every authority accountable for failure to deliver. Success will be recognized only when the lives of ordinary Malaysians are measurably improved, when debt is reduced, when housing, education, and enterprise opportunities are truly accessible, and when financial decisions are guided by justice and Shariah principles.
We pledge to educate ourselves and our communities, to understand the mechanisms of Islamic finance, and to demand transparency, integrity, and fairness at every level.
We will support initiatives that demonstrate sincerity and measurable impact, but we will not excuse delay, compromise, or deception. The people are united in their demand for a financial system that serves the public, safeguards moral and ethical standards, and fulfills the true promise of Islamic finance.
Conclusion: Action Now
We, the people of Malaysia, declare that the time for words has ended. The era of promises unfulfilled, of Islamic principles misused to justify debt and hardship, is over.
We demand action — decisive, measurable, and immediate. The government and scholars are entrusted with leadership and guidance, and they will be judged by their commitment to justice, the wellbeing of the people, and the principles of Shariah.
We will no longer accept delay, deception, or superficial compliance. The financial system must be transformed to serve the people, reduce unnecessary debt, empower communities, and uphold the highest moral standards.
Let this Charter stand as a clear message: the people are watching, the people are united, and the people are ready to act. Those entrusted with authority must implement reform within the deadlines set, with transparency and sincerity, or face full accountability — in the eyes of Allah, and in the eyes of the nation.
The time for justice is now. The time for Islamic finance to serve its true purpose is now. The time for action is now.