2023_Shariah Governance for Non-Banking Financial Institutions in Malaysia: A Case Study on Lembaga Tabung Haji
| Format: | General Document |
|---|
| _version_ | 1860798060899074048 |
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| building | INTELEK Repository |
| collection | Online Access |
| collectionurl | https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 |
| copyright | Copyright©PWB2025 |
| country | Malaysia |
| date | 2023-08-01 |
| format | General Document |
| id | 15710 |
| institution | UniSZA |
| internalnotes | Sila masukkan subject wajib Dissertations, Academic. Terima kasih... |
| originalfilename | SHARIAH GOVERNANCE FOR NON-BANKING FINANCIAL INSTITUTIONS IN MALAYSIA_ A CASE STUDY ON LEMBAGA TABUNG HAJI (PHD_2023).pdf |
| person | Azmir Azri Bin Ahmad |
| recordtype | oai_dc |
| resourceurl | https://intelek.unisza.edu.my/intelek/pages/view.php?ref=15710 |
| sourcemedia | Server storage Scanned document |
| spelling | 15710 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=15710 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 General Document Malaysia Library Staff (Top Management) Library Staff (Management) Library Staff (Support) Terengganu Faculty of Business and Management English application/pdf 1.5 Server storage Scanned document Universiti Sultan Zainal Abidin UniSZA Private Access Universiti Sultan Zainal Abidin SAMBox 2.3.4; modified using iTextSharp™ 5.5.10 ©2000-2016 iText Group NV (AGPL-version) Copyright©PWB2025 Islamic law—Economic aspects 2023-08-01 255 SHARIAH GOVERNANCE FOR NON-BANKING FINANCIAL INSTITUTIONS IN MALAYSIA_ A CASE STUDY ON LEMBAGA TABUNG HAJI (PHD_2023).pdf Azmir Azri Bin Ahmad Shariah Governance Non-Banking Financial Institutions Lembaga Tabung Haji Lembaga Tabung Haji Islamic nonbank financial institutions—Malaysia Corporate governance—Religious aspects—Islam Finance—Religious aspects—Islam 2023_Shariah Governance for Non-Banking Financial Institutions in Malaysia: A Case Study on Lembaga Tabung Haji Non-Banking Financial Institutions (NBFIs), including the Islamic sector, play an essential role in contributing to Malaysia’s economic development. These institutions have contributed immensely to the growth of assets held by Islamic Financial Institutions (IFIs), in this country. One such institution is Lembaga Tabung Haji (TH), which has been widely recognized as one of the Islamic financial institutions with the largest Muslim funds in Malaysia. The purpose of establishing TH was to provide an alternative service to Muslims who wish to save their money in preparation for performing the hajj, and to ensure that the funds are invested in Shariah compliant activities. As an Islamic institution, TH offers halal returns to its depositors and thus, it is important for TH to ensure that all its operations and investment activities are Shariah-compliant. Although TH is considered to be the first Islamic NBFI in Malaysia, there are still no specific Shariah governance regulations in place to monitor TH's investment and operational activities. In addition, the absence of a need to comply with Shariah governance regulations have resulted in inconsistent governance practices among Islamic NBFIs. Therefore, this study aims to critically analyse Shariah governance practices adopted by IFIs, then explore Shariah governance practices in NBFIs of the Islamic sector in Malaysia, before analysing current Shariah governance practices in TH. Finally, it develops a new Shariah governance framework as an enhancement for the current practices in TH. This study adopts a qualitative research approach in which its data are obtained through semi-structured interviews with seven related experts, including those who are directly from Shariah governance expert inside and outside TH, comprising policy makers, Shariah committee members and employees of Shariah control functions, ,i.e. Shariah research, Shariah audit and Shariah review. The data then are analysed based on the thematic approach. The result of this study improves the current Shariah Governance Framework (SGF) for TH. Findings indicate that shariah governance practices in NBFIs of the Islamic sector are still at the primary level compared to Islamic Banking and Takaful industries. Although there is a lack of standardisation or uniformity among them, the study found that NBFIs are flexible enough to develop their own SGFs based on their financial activities and mandates. As for TH, it was revealed that the absence of specific Shariah governance provisions, specifically in the TH Act 1995, has led to the lack of comprehensive implementation of Shariah governance in TH. This includes the absence of certain important Shariah control functions and the lack of Shariah disclosure and transparency to the public, leading this study to suggest several improvements to the areas concerned. In conclusion, this study has contributed to the existing literature on Shariah governance in NBFIs, which is still limited. Even though the number of interviewees is small due to its qualitative design, this study proposes the enhanced SGF for TH specifically, if this framework is applied, it could fulfil the expectations of all concerned stakeholders. Dissertations, Academic Sila masukkan subject wajib Dissertations, Academic. Terima kasih... Thesis |
| spellingShingle | 2023_Shariah Governance for Non-Banking Financial Institutions in Malaysia: A Case Study on Lembaga Tabung Haji |
| state | Terengganu |
| subject | Islamic law—Economic aspects Lembaga Tabung Haji Islamic nonbank financial institutions—Malaysia Corporate governance—Religious aspects—Islam Finance—Religious aspects—Islam Dissertations, Academic |
| summary | Non-Banking Financial Institutions (NBFIs), including the Islamic sector, play an essential role in contributing to Malaysia’s economic development. These institutions have contributed immensely to the growth of assets held by Islamic Financial Institutions (IFIs), in this country. One such institution is Lembaga Tabung Haji (TH), which has been widely recognized as one of the Islamic financial institutions with the largest Muslim funds in Malaysia. The purpose of establishing TH was to provide an alternative service to Muslims who wish to save their money in preparation for performing the hajj, and to ensure that the funds are invested in Shariah compliant activities. As an Islamic institution, TH offers halal returns to its depositors and thus, it is important for TH to ensure that all its operations and investment activities are Shariah-compliant. Although TH is considered to be the first Islamic NBFI in Malaysia, there are still no specific Shariah governance regulations in place to monitor TH's investment and operational activities. In addition, the absence of a need to comply with Shariah governance regulations have resulted in inconsistent governance practices among Islamic NBFIs. Therefore, this study aims to critically analyse Shariah governance practices adopted by IFIs, then explore Shariah governance practices in NBFIs of the Islamic sector in Malaysia, before analysing current Shariah governance practices in TH. Finally, it develops a new Shariah governance framework as an enhancement for the current practices in TH. This study adopts a qualitative research approach in which its data are obtained through semi-structured interviews with seven related experts, including those who are directly from Shariah governance expert inside and outside TH, comprising policy makers, Shariah committee members and employees of Shariah control functions, ,i.e. Shariah research, Shariah audit and Shariah review. The data then are analysed based on the thematic approach. The result of this study improves the current Shariah Governance Framework (SGF) for TH. Findings indicate that shariah governance practices in NBFIs of the Islamic sector are still at the primary level compared to Islamic Banking and Takaful industries. Although there is a lack of standardisation or uniformity among them, the study found that NBFIs are flexible enough to develop their own SGFs based on their financial activities and mandates. As for TH, it was revealed that the absence of specific Shariah governance provisions, specifically in the TH Act 1995, has led to the lack of comprehensive implementation of Shariah governance in TH. This includes the absence of certain important Shariah control functions and the lack of Shariah disclosure and transparency to the public, leading this study to suggest several improvements to the areas concerned. In conclusion, this study has contributed to the existing literature on Shariah governance in NBFIs, which is still limited. Even though the number of interviewees is small due to its qualitative design, this study proposes the enhanced SGF for TH specifically, if this framework is applied, it could fulfil the expectations of all concerned stakeholders. |
| title | 2023_Shariah Governance for Non-Banking Financial Institutions in Malaysia: A Case Study on Lembaga Tabung Haji |
| title_full | 2023_Shariah Governance for Non-Banking Financial Institutions in Malaysia: A Case Study on Lembaga Tabung Haji |
| title_fullStr | 2023_Shariah Governance for Non-Banking Financial Institutions in Malaysia: A Case Study on Lembaga Tabung Haji |
| title_full_unstemmed | 2023_Shariah Governance for Non-Banking Financial Institutions in Malaysia: A Case Study on Lembaga Tabung Haji |
| title_short | 2023_Shariah Governance for Non-Banking Financial Institutions in Malaysia: A Case Study on Lembaga Tabung Haji |
| title_sort | 2023_shariah governance for non-banking financial institutions in malaysia: a case study on lembaga tabung haji |