Enhancing the Shariah Governance Framework for Malaysian IFIs through Effective Management Strategies

Year 2017, Volume: 2 Issue: 1, 63 - 80, 05.09.2017

Hafiza Harun , Nurdianawati Irwanı Abdullah

https://doi.org/10.30927/ijpf.327835

Cited By: 1

Abstract

The Shariah Governance Framework (SGF) in
Malaysia has approached its fifth year of implementation by Malaysian Islamic
Financial Institutions (IFIs). In ensuring its continuous effectiveness as well
as in enhancing the governance robustness, any existing gaps must be tackled
and resolved proficiently. Among the gaps recorded in the previous literatures
directed to various areas such as the commitment of Shariah Governance body or
management team towards its governance, Shariah Committee (SC) portfolio,
competency, regulatory framework and so forth. This research paper explores the
practical adoption which could be applied through theoretical analysis and
viable recommendation for further enhancement of the SGF by all management
teams in the IFIs. In complementing this study, a set of questionnaires is
distributed to some selected group of staff in a Takaful Operator (TO) in
Malaysia to gauge their understanding of the subject matter.

Keywords

Shariah Governance Framework (SGF), Effective Management, Islamic Financial Institutions (IFIs)

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