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The genesis and growth of Chinese capitalism in Malaysia had to be analysed with reference to religiosity and its practices among the Chinese community outside China. Chinese religion particularly Confucius and Buddhist, discourage material acquisition.

The much debated topic of economic regulation and deregulation in the perspectives of market transformation that is now gripping the global politico‐economic climate, is studied with the Islamic focus in it. In the attempt, comparative ideas in this area are taken up, particularly those propounded by Baumol with regards to regulation of firms to generate a semblance of competitive pricing. The Islamic firm is studied in reference to a knowledge‐based model of unification as complementarity among possibilities. Such a model is shown to be the crux of Shari'ah in the Islamic political economy as in the broadest sense of the socio‐scientific order, where process‐oriented as opposed to optimal models of equilibrium, apply. In reference to such a knowledge‐centered epistemological model of Divine Unity (Tawhid), it is argued that all kinds of regulation become redundant in the case of the Islamic firm. Such is a firm that complies with Shari'ah rules in the Islamic political economy. Here the socio‐economic transformation is guided towards realizing ethicized markets. The short‐run and long‐run cases are studied with regards to the problem of regulation. What is the nature of regulation for a modern Islamic firm in the face of a global market transformation process that is on? The answer to this question is to be sought first from the viewpoint of Islamic Law (Shari'ah) concerning economic regulation and the nature of goods, transactions, instruments and exchange in the market process. Secondly, the question of validity of some of the present days regulatory practices must be investigated. In this paper the above two points will be the focus of study.

To explore the outer reaches of buying, selling, property rights in an Islamic context.

Philosophical, applying legal analysis, critique to the work of Richard Epstein.

That there are no exceptions to the general rule that, under full free enterprise, anything must be allowed to be purchased, sold or given away.

To attain a system of laissez‐faire capitalism, the law should be changed so as to recognize voluntary slave contracts.

There would be very few or none in an advanced wealthy society. However, there might be some in the underdeveloped world.

It advances one's knowledge of the marketplace, law and contracts.

The well‐known modes of raising and mobilizing venture capital in Islam known as mudarabah and musharakah (m&m) in Islamic economics are critically examined. In the form as m&m presently exist, they are pointed out to be pre‐Islamic financing instruments that came into usage in the Islamic economic literature. The inability to realise the extensively relational perspectives of Islamic socio‐economic co‐operation with extensive participation across agents, firms and sectors by means of these instruments, which are essential requirements for the Islamic political economy, is shown to make the instruments fraught with many technical and ethical problems of development financing. The alternative to transform m&m into a more integrated financing instrument of Islamic venture capital is formalised. Empirical evidences are given. Institutional issues are examined in the light of Islamic joint venture financing.

In the Islamic system, the activity and the performance of all the economic, social, political and religious agents are under the guidance of knowledge given by Allah (SWT). There are some established principles related to the human behavior which are valid in each and every aspect of the universal set of Islamic system and thus valid for all the economic markets, such as labor, goods and money markets. This paper discussed the labor market in the periphery of Tawhidi methodology. The concept of labor in Islam emanates from a concept of intrinsic value as the real worth of a produced thing as well as factor of production. The authors have taken the Quranic precept that says Allah has put fitra in all things during creation and this assumes the primordial value of being in cognitive forms. Hence, if a good is discovered, produced and labor is expended in its production and transaction, there is always that primordial intrinsic value that has in the first place made all the subsequent processes possible. This primordial value must always be discounted from the price of factors and goods as it cannot be claimed. That is why, the Quran says that Allah has created the universe in the midst of plenty, not scarcity. The paper aims to discuss these issues.

Literature survey approach was applied in this paper.

The input of fitra is like a value variable (imponderable) linked with two stages of knowledge production – intrinsic knowledge that is innate in exchangeable knowledge flows that are evolved by interactions, say among cooperating agents of the markets and between agents and the observation of variables trends (empiricism). Market exchange is of the classical nature but with this value element in the process of exchange describing not steady-state equilibrium point but evolutionary equilibrium as a result of the knowledge caused and regenerated by interactions, thus affecting the demand and supply schedules through the inhering process of interactions among participants (cooperative ones). The authors can draw an evolutionary form of moving cobweb equilibria that are simply expectational in nature; they are not static except for the very instantaneous case of non-learning.

This is the first attempt. There is a need to conduct more research in this topic.

This paper has practical implication for the policy makers in the environment of moral and ethical economy.

This is an original contribution and is a first attempt in this area.

A theoretical methodology premised on the epistemology of divine unity as the world view of all Islamic socio‐scientific inquiry, is introduced. This general theory based on the knowledge‐centred interactive, integrative and evolutionary process of social becoming is next formulated for the specific case of capital markets. The methodology premised on unity and unification of knowledge is shown to be a universal application interconnecting science and society through a process‐oriented knowledge‐centred model. Finally, the generalized theoretical methodology and its specification to the case of Islamic capital market is used to critically evaluate Malaysia’s Islamization program, specially during the heady days of her stock market and currency turmoils. Alternative policy recommendations are provided for a newer outlook on Malaysian development and capital market Islamization programs. A general inference is thus derived and conveyed to the field of capital market stability arising from a direct linkage between real sectoral activities and endogenous money as store of value of real transactions. The approach of this paper being epistemological in nature, it undertakes a fundamental look at Qur’an and Sunnah for developing shari’ah‐rules (Islamic law), i.e. ahkam as‐shari’ah (rules derived from shari’ah), in the area of socio‐scientific inquiry in general and Islamic capital market in particular.