Title: New enhancement of Shariah governance in Islamic finance and Halal sectors in Malaysia: bridging a gap towards integration

Authors: Nurul Aini Muhamed; Muhammad Iqmal Hisham Kamaruddin; Nathasa Mazna Ramli

Addresses: Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Malaysia ' Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Malaysia ' Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Malaysia

Abstract: This study examines the similarities and differences between the Shariah Governance Policy Document (SGPD 2019) and Malaysia Halal Management System (MHMS 2020) on Shariah governance structure and functions and requirements for Shariah/Halal committee. This study finds that SGPD 2019 is more comprehensive compared to MHMS 2020. Although both SGPD 2019 and MHMS 2020 emphasise Shariah governance in their policy documents and guidelines, however SGPD 2019 has specific indication Shariah governance compared to MHMS 2020. In addition, SGPD 2019 also has an extensive requirement for the Shariah committee as compared to the internal Halal committee by MHMS 2020. This study provides a comparison of Shariah governance that would be beneficial to authorities in the Islamic finance and Halal sectors to strengthen the industry. This study is exclusively calibrating the integration of Shariah governance guidelines from different authorities to be benefited in both Islamic finance and Halal sectors practices.

Keywords: Shariah governance; Islamic finance; Halal; Malaysia.

DOI: 10.1504/IJBEX.2024.139110

International Journal of Business Excellence, 2024 Vol.33 No.1, pp.1 - 20

Received: 11 Dec 2020
Accepted: 05 Mar 2021
Published online: 14 Jun 2024 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article