MALAYSIA AND THE POLICY CONTRADICTIONS: THE CASE OF CASINOS IN A MUSLIM-MAJORITY STATE

Abstract

Objectives of this research article were: 1.To examine the policy contradiction between Islamic principles and the Malaysian government's legalization of gambling, 2.To analyze the Malaysian state’s compromising approaches in managing the casino industry within the context of Islam as the state religion, and 3. To assess the social, economic, and ethical impacts while proposing findings applicable to the Thai and ASEAN contexts. The research adopted a qualitative design, employing the concepts such as State Pragmatism, Confessional Muslim-Based State, Policy Contradiction Theory, and the coexistence of religion and economic systems as its analytical framework. The research area focused on Malaysia, specifically on the case study of Genting Highlands. Data were drawn from purposefully selected primary and secondary sources in political science, legal studies, and Islamic studies. Three main research instruments were utilized: legal document analysis, synthesis of academic literature, and review of reports from government and civil society organizations. The data were analyzed through content analysis and presented in descriptive interpretation.

The findings revealed that: 1. Policy Contradiction: The Malaysian state has adopted a policy that is contradictory to Islamic doctrine by allowing legal casino operations, reflecting deeper tensions within a state that officially recognizes Islam. 2. Policy Compromise: The government employs parallel legal systems and spatial regulations, such as prohibiting Muslims from entering casinos while permitting access to non-Muslims. 3. Impacts: Although this approach generates substantial state revenue, it has led to moral criticism and concerns about the Malaysia’s Islamic image from religious scholars and civil society groups. This study contributed to a broader understanding of how modern Muslim-majority states navigate tensions between faith and economic imperatives. It offered policy lessons for multicultural nations like Thailand and other ASEAN countries as they seek to balance religious values with inclusive economic development.