Community Development encompasses projects which create opportunities and build capacity of communities by providing them with the necessary resources to improve their quality of life and promote sustainable development. It encourages communities to work together to identify and solve problems, cultivate socially valuable relationships and support leadership development.

There are 5 main categories of projects under Community Development – the environment, national unity, socio-economic development, health and education.

The Foundation's flagship project in community development is "Community Link", a programme implemented in partnership with CIMB Bank and CIMB Islamic branches throughout Malaysia.

In 2008, the Foundation disbursed RM4.7 million for community development initiatives.