Adoption of Shari?ah Governance Framework of Islamic Financial Institution Industry into the Muslim Friendly Hospitality Industry in Malaysia: Is it Possible?

摘要

Background-governance could be defined as the manner in which the power is executed in the management of an organization. Also, governance is described as the process of decision making and the process by which decisions are implemented in various aspects, i.e., economic, political and administrative power of the state. Meanwhile, it is believed that having good governance may contribute to an efficient organization. These encompass the concepts of accountability, transparency, participation, democracy, free media and access to information, human rights and rule of law. To achieve these, it requires mechanisms, processes and institutions through which citizens could articulate their interest and exercise their legal rights. Shari?ah governance on the other hand is another pertinent set of framework developed by Shari?ah based industry particularly in Islamic finance industry in Malaysia. Shari?ah Governance in IFIs currently in force in Malaysia is governed by the Shari?ah Governance Framework (SGF). The establishment of an effective independent oversight of the Shari?ah compliance over IFIs functioning of SG within IFIs could not merely ensure that the transparency and disclosure are increased but also would strengthen investor?s confidence in the industry. Considering the importance of developing Shari?ah governance framework to another sector of Halal industry, this study conceptually seeks to discuss the regulatory framework currently in force with special attention given to the muslim friendlyhotel sector. Reviews of various related documents demonstrate that the loopholes within the governance part appear to exist despite the establishment of Muslim friendly Halal hospitality service-requirement MS 2016: 2015. This study therefore recommends that a set of comprehensive and updated piece of Shari?ah governance framework for the muslim friendly hospitality should also be developed. In order to achieve this objective, current SGF of Islamic Finance Shari?ah Institutions could be adopted as a model. This study however further proposes that certain modification should be made owing to the different needs and sustainability of industry in order to meet the needs of each sector. It is hoped that this study will create an alarm among the policymakers, key hotel operators and regulatory bodies to embark on the same journey.