DECLARATION OF MALAYSIA AS AN ISLAMIC STATE IN THE ERA TUN DR MAHATHIR MOHAMAD’S GOVERNANCE: IMPLICATIONS TOWARDS POLITICAL ECONOMICS IN ISLAMIC WAYS

During Tun Dr. Mahathir Mohamad's tenure as the Prime Minister of Malaysia, he once declared that Malaysia is an Islamic state. This declaration is the apex of TunDr. Mahathir Mohamad's resolution to establish an Islamic political economy. However, there are others who believed that this declaration is done in order to get the political support of Malay Muslims. From the above statement, is it true that this declaration have an impact on political economies towards Islam? This article is written to examine and analyze the implications of the proclamation of the Islamic State by Tun Dr. Mahathir Mohamad towards the development of Islamic political economies in Malaysia. The data is gathered through literature and content analysis methods.Literature method is used to gather the secondary data, while content analysis method is done to analyze the data. The result of the analysis is made after Malaysia is declared as an Islamic state and it affected the political economic in this nation in Islamic ways. In terms of economic implications towards Islam, he managed to further reassure people to choose Islamic banks such as Bank Islam Malaysia Berhad. In terms of political implication in Islamic ways, InstitutKefahaman Islam Malaysia (IKIM) was established by TunDr. Mahathir Mohamad to provide an understanding towards the socio-political of Islamic to the public. In addition, International Islamic University Malaysia (IIUM) and UniversitiSains Islam Malaysia (USIM) were also established to provide better understanding of the essential of Islamic education from basic level to students in order to lead the Muslim community and develop the development of Islam in Malaysia.