TY  - JOUR
T1  - Adoption of Shari’ah Governance Framework of Islamic Financial
Institution Industry into the Muslim Friendly Hospitality
Industry in Malaysia: Is it Possible?
AU - Samori, Zakiah AU - Rahman, Fadilah Abd. AU - Zahari, Mohd. Salehuddin Mohd 
JO  - Journal of Engineering and Applied Sciences
VL  - 12
IS  - 14
SP  - 3665
EP  - 3671
PY  - 2017
DA  - 2001/08/19
SN  - 1816-949x
DO  - jeasci.2017.3665.3671
UR  - https://makhillpublications.co/view-article.php?doi=jeasci.2017.3665.3671
KW  - Propose
KW  -adopted
KW  -operators
KW  -modification
KW  -governance
AB  - 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.
ER  -