(b) Development of the taxation system between secular and religious, in British

Malaya and Independent Malaysia which explore its development and impact to
the fiscal policies and the Majlis Ugama.

The actual date of the development of Islam in the Malay Peninsula is still being discussed by
the well-known scholars and historians with the consideration of the bearers and agents of
Islam which includes the theories on the spread, propagation and assimilation of the new
belief were taught that is produced by Indian, Arab, Persian and Chinese origins. For
example, according to Snouck Hurgronje Islam came from India while S.Q.Fatmi was leader
for the people who said that Islam came from China by the east coast of the Malay Peninsula.
Based on Syed Naguib al-Attas, there are few theories on the establishment and development
of Islam where the most importance is given mainly to the dominant role of trade where
propagation was a secondary element for the traders, political conveniences as the motive for
the mass conversion to Islam and Islam's ideological worth as being the main thrust for
conversion.

Until 1969, the most recent stage, supported by S.M. Naquib al-Attas, who denied all the
previous theories generally those theories were based on assumption and had been critically
revealed unsupportable, competed that Islam came to the Archipelago couched in Sufi
originating from Arabia and Persia. In contrast to S.M. Naquib al-Attas' postulates, C. A.
Majul believes that all above theories are supported by historical facts, but particular ones;
disregarding their constraints, they have incomplete validity if interpreted as general theories.
He further emphasized that while it is hard to point out theoretical inconsistencies, it is
possible to demonstrate their complementary elements. He even examines that complete truth
is found in a sensible synthesis of all the theories. Whatever the results of the previously
mentioned theories, which are beyond the scope of this inquiry, current proof in Malaysia has
demonstrated that the approach and spread of Islam had undoubtedly resulted in
transformation of the culture, social and political idea of its local occupants with the mass
change of the Malays.

Two monuments with Arabic engravings, found at the northernmost tip of the Malaysian
world in the South of Champa, a land which once belongs to the Cham’s, an antiquated
people of the Malayo-Polynesian race, who are generally Muslims and had a matrilineal
society and close ethnological, semantic, social and authentic binds with the Malays of the
Malay peninsula and the Archipelago, give off an impression of being identified with the
cycle of absorption of Islamic laws to Malay society (Fatimi, 1963). One of these
monuments, is a gravestone having an Arabic engraving in the Kufi script and is dated 1039
A.D. The other one is a very mutilated piece of what must have been a pillar with an
engraving setting down guidelines for the instalment of duties, repayment of debts, and so on.
However, it isn't certain whether the engraving on the subsequent monument describing
"instalment of charges" implies guidelines on zakat, or different types of Islamic expenses for
example, kharaj, jizyah, and ushr, because of the way that a dominant secular income system
had existed in the Malay Sultanate during that period.

The Terengganu stone engraving dated 702 A.H/1303 A.C (al-Attas, 1984). Kuala Berang
Terengganu, found in front of a surau (prayer building) where it formed the progression on
which worshipers washed their feet or performed bathing, is the earliest Malay text in the
Arabic script, and has appears to be the initial contemporary record of the introduction of
Islam into any state of the Malay Peninsula. The engraving on the stone contains ten laws in
an exceptionally fragmentary type of which the initial three are absent and subsequent
sections do not address tax assessment. It cannot be ruled out that the initial three laws may
have contained a few guidelines on religious taxes. Given a time of around 300 years lead
time until 1511 to finish the process of Islamisation in the Malay peninsula, it is important
that ensuing development was essentially deterred by numerous predominant factors which
includes the firm impact of Hinduism/Buddhism which was assimilated into the Malay
standard laws, and above all, the predominant secular fiscal system of the Malay Sultanate
itself. It was consistent to some extent that Islamic law impacted and administered every
aspect of the Malaccan organization yet Islamic tax assessment was still in its infancy stage.
The obliteration of Malacca in 1511 with the attack of the Portuguese, followed by the Dutch
in 1641 had unavoidably hindered the development of Islamic laws. The brutal Portuguese
mission against Islam was invited by a massive exodus of Muslim shippers from Malacca to
Acheh, Bantam and Brunei and a comparative development of Chinese merchants to Patani.
The aftermath of these occasions had the option to ruin fundamentally the imperial
exchequer. An endeavour to hinder the departure was forestalled by the rising power of Islam
in Java in 1526. In the early 19th century, development was further hampered by the state of
anarchy, violence and squabbles between the Malay chiefs and Malay royal families.
(YEGAR, 1972)
Revival of the Development of the Islamic Law

In a cycle set apart by moderate but unyielding historical factors, endeavours were made to
receive Islamic law and to adjust Malay traditions to cause them to adjust with Islamic law.
For example, the Undang-Undang Melaka comprising of two parts of 44 sections, the land
law and the maritime law, later embraced by Pahang during the rule of Sultan Abd al-Ghafur
Muhaiyu'd-din Shah (1592-1614 A.D.), fundamentally dealt with spiritual, family and
criminal offenses, business exchanges, land exchanges and wakafs. The Pahang digest was
adjusted with more use of Islamic law than the standard law. Para 58 arrangements with the
regulations on the compulsion of zakat (Ibrahim, 1965). It worth noting that the lack of
emphasis found in many Malay digests such as that written by the famous Abdullah on zakat
development suggests that the Malay Sultanate government in Malacca focussed more on the
aspect of the development of the Islamic faith, inculcating it through prayers and other
spiritual matters. Essentially, the Undang-undang 99 of Perak was probably an augmentation
of the Undang-undang Melaka, and Kelantan, Trengganu had comparative overviews. The
codification of Islamic law was additionally reached out to the next Malay States; the Ahkam
Shariyyah Johor of 1949 was adjusted and translated from the Hanafite Code of Qadri Pasha
of Turkey and the Majallat-Al Ahkam was translated as Majallah Ahkam Johor dated 1331
A.H.; and the Constitution of Terengganu declared in 1911. A previous law identifying with
the constitution of the courts issued in 1885 additionally seems to provide for the
organization of Islamic law in Terengganu. However, all the previously mentioned laws do
not have any emphasis on Islamic monetary and tax doctrine.

Structure of Religious Institution in Precolonial Malaya

In pre-colonial Malaya, Islam had not been institutionalised as the national religion: the only
religious institutions were primarily local in character with each village maintaining its own
masjid (mosque) or a surau (prayer house) depending on its dwelling size and economic
wealth. Each village was largely self-sufficient in sustaining its religious needs which were
derived through respective villagers' donations of services or goods and by the traditional
obligatory Islamic taxes zakat which was primarily limited to agriculture, and the annual
payment of fitrah (Means, The Role of Islam in the Political Development of Malaysia,
1969). Despite the fact that records on how zakat and fitrah were directed in the Malay
Peninsula during six centuries since the approach of Islam are inconsistent, perceptions made
by W.E. Maxwell and the Governor of the Straits Settlements, Fullerton, may recommend
that the Malay rulers in Perak and Malacca around then had forced a one-tenth tax on
agriculture produce which in Islamic law indicates “cushr” or “zakat” on agriculture.
Maxwell observed that this act of paying a percentage of the crop, which was definitely not
consistently demanded in all of the Malay states, continuously ceased to exist as the British
took over the revenue system of the Malay Sultanate (GULLICK, 1991). Maxwell's claim
that the expense was fixed by Malay custom at one-tenth brought him into polemical
discussion with Frank Swettenham who questioned the presence of such a Malay custom.
Maxwell announced that apart from earlier documentation by T. J. Newbold on the
inconvenience and assortment of the offerings in Malacca, he was not aware about its
practice in Negeri Sembilan. Nonetheless, he affirmed having personally observed the
implementation of the offerings by local government in the "only pure Malay province" of
Krian in Perak in 1874 (Newbold, 1839) In spite of the fact that Maxwell did not specifically
express that what the rulers demanded from the farmers was Islamic zakat, the portion
exacted of one-tenth (tithe) agricultural produce seems to mean zakat standards in Islamic
law.

In the early aspect of the 20th century, absolute authority outside the state capital, as in
Kelantan for instance, was for practical purposes to a great extent practiced by the Imam of
the village surau (Su-ming, 1965). This was also generally true for other Malay states. The
surau and the masjid were deemed the ritual centre of rural Islam, and acted authoritatively as
the assortment and disbursement place for zakat. In this association, the Imam seems to have
general administrative oversight, including the alienation of land, and particularly the
supervision of produce charges, and appraisal and assortment of the triennial banchi or poll
tax. The taxes, for example, up keeping of the custom place and pay of the authorities of the
centre were partially financed by income produced though the assortment of zakat and fitrah.
The instalment were given up to the Imam Besar by the labourers.

Institutionalisation of "Majlis Ugama Islam Negeri (MAIN)"

As a result of the 1874 Pangkor Engagement and its replacement, a rebuilding of Islamic
religious organizations was unpreventable in the Malay states. Moshe Yegar concludes that
the protected and regulatory changes made by the British organization reflected the urge to
declare Western concepts, for example, the written constitutions in Johor and Terengganu,
codification of the unwritten adat and the Shari'ah and modern enactment on religious issues.
For example, on 17th December, 1887, after a comparable settlement had been marked in
Pahang, Hugh Clifford recommended, in addition to other things, the introduction of a code
of laws based on the English or on the other hand Johor model changed to suit local
conditions (Lum, 1995). Deprived of considerable administrative and political power in
different zones, particularly on the capacity to demand charges for their own money related
needs and given the ambiguous meaning of "Malay Custom" compounded by the strategy of
detached assurance of Islam and non-interference in Islamic undertakings by the British
colonial organization, the function of the Malay Ruler as the defender of "Malay Religion and
Custom" turned out to be more significant. Steadily, as Islamic rituals at the Malay courts
became important, the Rulers and their respective State Councils started to assume larger
responsibility for religious affairs. Because of this move of attitude and awareness, after
1884, various Malay states started to create for the first time a sort of centralised
administrative structure and Islamic legal system for Muslim affairs (Means, The Role of
Islam in the Political Development of Malaysia, 1969).

Surprisingly, it was Kelantan, a non-federated Malay State, which started the first move. The
idea for the establishment of a centralised type of religious organization in Kelantan was first
mooted in 1915 where on 7th December, 1915, the Kelantan State Council settled upon the
creation, "for the individuals of the state", of a Majlis Ugama dan Istiadat Melayu (Council of
Religion and Malay Custom). Despite the fact that by 24th December, 1915 the objectives of
the Majlis Ugama needed insights regarding the precise tasks of the Majlis, this did not
prevent the holding of a progression of extremely productive meetings during the early part
of 1916.

By the 1930s, despite the tendency of other Malay States under British administration toward
the creation of hierarchically organised Islamic bureaucracies owing position and delegated
authority to the Sultan and the traditional ruling class, only the Majlis Ugama of Kelantan
displayed relative autonomy and financial independence. In the case of Kelantan, even
though the Majlis was financially independent, its administration and revenue were managed
by the British Adviser's office. In addition, prior to 1942, the Majlis was actively
administered politically by the Menteri Besar. However, realising his executive power was
eroding, the Sultan issued a directive which stipulated that all matters must be referred direct
to him. After the Federal Council of the Federated Malay States was established in 1909, the
State Councils had legislated only in matters of religion and Malay custom. On the 24th
April, 1927, an agreement for the reconstitution of the Federal Council was signed, under
which in effect the Malay rulers of Selangor, Perak, Negeri Sembilan and Pahang withdrew
from active participation in the deliberations of the Council; and the Council was enlarged by
the addition of a number of official and unofficial members. The constitutional reform of the
1930s laid down by Sir Samuel Wilson's report for future development of the policy of
devolution, approved in 1933, restored a greater measure of autonomy to the State Councils
in legislative and administrative responsibilities affecting the individual States, resulting in a
gradual formation of special bodies with some sort of regulation in the administration of
religious affairs.
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