A Critical Analysis of Syed Muhammad Naquib al-Attas’s View on Adam Smith’s Market Mechanism within the Framework of Hisbah and the Tawhidic Paradigm

Abstract

This article critically analyzes Syed Muhammad Naquib al-Attas’s philosophical perspective on Adam Smith’s market mechanism, particularly the concept of the invisible hand. While Smith’s theory assumes that self-interest and competition can naturally lead to social welfare, al-Attas challenges this notion as a manifestation of the secular worldview that separates economics from divine values. Through his Tawhidic paradigm, al-Attas argues that the invisible hand cannot function as a moral regulator because it operates independently of revelation and adab. Instead, he proposes that true market harmony must emerge from the restoration of adab—right knowledge and proper conduct guided by the recognition of God’s sovereignty. Within this framework, the institution of Hisbah represents the social embodiment of adab: a moral and spiritual system ensuring justice (‘adl), balance (mizan), and accountability in market activities. Hisbah, therefore, becomes the “visible hand” of divine order, directing economic interactions toward spiritual welfare (falah) rather than mere material gain. This study concludes that al-Attas’s conceptualization of Hisbah within the Tawhidic worldview provides a transformative framework for rehumanizing modern markets and grounding economic policies in both ethical and metaphysical dimensions aligned with Islamic and Pancasila values.