The secretariat was later developed as the Religious Division, the Prime Minister's Department which was then re-promoted to the Islamic Affairs Division (Malay: Bahagian Hal Ehwal Islam) (BAHEIS).

On 1 January 1997, in line with the growing development and progress of Islam in the country, the Department of Islamic Development Malaysia (JAKIM) was established by the Malaysian government as taking over power and role of BAHEIS.

The formation of JAKIM faced criticism from many groups claiming its establishment violated the constitution of Malaysia.

[11] However, former Prime Minister, Mahathir Mohamad defended the formation of JAKIM by citing it was aimed at bringing the government in line with Islamic teachings.

His statement was supported by Mujahid Yusof Rawa, former Minister in the Prime Minister's Department (Religious Affairs) quoted it was set up to cater to the current needs, including when it comes to managing the budget for the administration of Islamic matters.