Baitulmal is normally known as a charitable institution. In Arabic it translates as house of money or house of wealth. So, Baitulmal is a property house that manages financial resources and Islamic property for the socio-economic development of Muslims. Historically, it was a financial institution responsible for tax administration in Islamic states, particularly in the early Islamic caliphate. The sources of Baitulmal in this period are community property, government property and general property. According to the most current and dominant view, Baitulmal was the first settlement during the period of Abu Bakar who succeeded the Prophet in the year 632. But researchers said, Baitulmal has existed since the time of Rasullullah SAW, when Saidina Umar obtained a land in Khaibar. Saidina Umar meets Prophet Muhammad SAW to know what he should do with the land obtained. In the early days of Islam, Baitulmal was not prominent or even important. Due to economic development at that time it was limited and there was not much revenue for the state, so there was no difficulty in managing it. Baitulmal can be classified based on asset management. Wealth management is an important aspect in Islam. If we don't know the owner of the wealth, we need to manage it as best we can. This is because asset management is closely related to individual and social well-being. Successful economies in Malaysia not only depend on the level of income and spending, but also depend on how wealth or properties are managed. This is why asset management must be done in the best way. In practice, the Baitulmal is responsible for managing religious matters that are delineated under the jurisdiction of the government, including marriage, waka...... middle of paper.... ..the effective method of collecting the source of Baitulmal and of their distribution. And proper management of wakaf property can lead to successful planning and implementation of wakaf development for the benefit of Muslims and can benefit Baitulmal development. These innovations could also bring better economic development for Muslims and Malaysia as a whole. Al-Quran has already mentioned clearly that Baitulmal means human beings do good deeds for society. In Surah AlHaj 17:77 – “O you have believed, and bow down, and prostrate, and worship your Lord, and do good, that you may succeed.” After knowing that the development of Baitulmal in Malaysia has many important aspects and things, so we can also help this development to go fast and see that Baitulmal is a thing which has Islamic principle and was formed by Rasullullah and Sahabat long ago.