Date of Publication :3rd June 2024

Abstract: The 12th Malaysian Plan 2021-2025 issued by Economic Planning Unit in 2021 outlined one of the six important priorities to support M40 towards equitable society. The Financial Sector Blueprint 2022-2026 released by Bank Negara Malaysia in 2022 further outlined the fifth key thrust focusing on Islamic Social Finance. The purpose of this research is to examine the digital and legal framework of Islamic Social Finance to support M40 Income Group in Malaysia. This study adopts doctrinal legal research method to examine the laws and regulations governing Islamic digital bank and Islamic Social Finance in Malaysia. The qualitative method is used to propose the framework of Islamic digital bank as Islamic financial institution to provide Islamic Social Finance instrument to support M40 income group. The implication of this study is important to propose the digital and legal framework and bridge the Islamic Social Finance instrument to support M40 income group in Malaysia. The significant of this study is to realign between priorities of the 12th Malaysian Plan 2021-2025 and Islamic Social finance as stated in Financial Sector Blueprint 2022-2026.

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