Abstract

Malaysia is a modern postcolonial state with a written constitution which clearly states ‘Islam as religion of the Federation’. The state gained its independence on August 31, 1957 from the British. This paper aims to discuss the establishment of significant institutions in Malaysia that became significant catalyst to develop the country within its multi-religious population. In the beginning of the 1980s, the government embarked intensively on an Islamisation programme which included an agenda to upgrade the Islamic institutions as well. In fact, much effort has been given by the government in implementing moderate Islam in Malaysia. As a direct result, many institutions were established to promote the agenda and to prove that religion is not a conundrum for progressive country. This is a secret key for the country to succeed in economics, administration, and institutions with its political stability.

Key words: Malaysia, Islamic institution, Islam in modern era, progressive.