Innovation in the public sector is essential for productivity growth, and improvement in terms of management and service quality. Initially, the Malaysian government has implemented numerous major transformations and initiatives, however, there are still concerns regarding the public sector and civil servant innovativeness. Innovation can only take place when an organisation can innovate and leadership is found as inherently associated with managing innovation. This concept paper had highlighted the infusion of Islamic values in leadership behaviour which is expected to influence innovation capability and this is crucial in the dynamic background of Malaysia as an Islamic country. The significance and implications of the study were also discussed in this paper.
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