In an apparent dig at Prime Minister Datuk Seri Najib Razak's frequent trips abroad, the former finance minister said the current capitalist system practised in Malaysia advocates a relationship between business and politics which then gives rise to corruption.
“What is unacceptable is the feeling that certain segments of the community are being hard done by the prevailing economic difficulties while a select few wallow in luxury as if there is no tomorrow,” he said.
"Financial pilferage as a result of corruption or political lobbying increases costs unnecessarily. In all likelihood, the costs will be borne by consumers.”
The Kelantan prince, affectionately known as Ku Li, said a strict implementation and management of Malaysia's economy under the Islamic system would eliminate this possibility.
"It is heartening and reassuring to note that Islamic economics and finance advocate efficiency, effectiveness, transparency, sharing and selflessness," Ku Li said.
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He was speaking at a book launch organised by the International Institute of Advanced Islamic Studies (IAIS) and Malaysian Current Law Journal Sdn Bhd.
Also present at the launch was Prince Mohammed Al-Malek Feisal of Saudi Arabia, who is reportedly an ardent proponent of Syariah-compliant Islamic banking and finance system.
"The Islamic economic system is neither capitalistic nor socialistic in nature. It is a system which has been provided by the Quran," Ku Li said.
He said it was an ethical system which operated on the basis of shared risks and profits to the lender and borrower.
Pointing out the difference between the Islamic and conventional banking systems, Ku Li said the former chanelled wealth from the rich to the poor in the form of sadaqah and zakat.
"Under the conventional banking system, interest channels away wealth from the poor to the rich," he said.
"Islam views life as a compact whole and economics is one of its most important components. The Islamic economic system is balanced and everything has its place."
Ku Li said the system stood for simplicity, modesty, charity, mutual help and cooperation. It denounced miserliness, greed, extravagance and unnecessary wastage.
He cited the Pilgrims Management and Fund Board of Malaysia, or Tabung Haji, as an example of a successful system.
The brainchild of economist Royal Professor Ungku Aziz Ungku Abdul Hamid, Tabung Haji began with a total deposit of US$15,400 with an initial membership of 1,281 in 1963.
Last year, 8.2 million Tabung Haji members had deposits in excess of US$10 million (RM33 million).