In the 1980s, Malaysia adopted the policy of state-led Islamization. The ruling UMNO party co-opted ABIM, fashioned itself as an Islamically oriented party, and adopted many Islamist ideas. The state created Islamic institutions, and supported Islamic cultural, political, and economic activities. It used Islamization to expand its power and to penetrate the Malay society. The state also embarked on rapid economic growth to address racial tensions. It used its control of Islam to manage Islamic politics and define Islamic values with a view of economic growth and accommodating globalization.
Keywords: economic growth, globalization, Islamic institutions, Islamic values, Islamism, Islamization, Malaysia, racial tension, state power, UMNO