Halal Governance In Malaysia Companies

  • Yasmin Hanani Mohd Safian Prof. Madya, USIM
Keywords: Halal, governance, Malaysian, companies


Governance is an important component in Halal industry. Appropriate mechanism should be created to ensure the Halal certified company complies with the Shariah principles. Unlike Islamic finance, Halal industry is less regulated in term of governance. Halal certification is not compulsory and even Halal certificate holding companies do not have clear Shariah governance within the administration to ensure the company fulfil its duty and promise to the stakeholder and the customer. The establishment of proper Shariah governance framework for Halal industry will boosts confidence of the shareholders and the publics that all the practices and activities follow Shariah all the times. Thus, this study investigates current practice of Halal governance in several Malaysian companies. The internal mechanisme in Halal monitoring, controlling, improving and preventing any non-compliance will be assessed. The practice will then be compared to the practice of governance in Malaysian Islamic Financial institutions. The study will help to figure the best practice of Halal governance hence become a proper model to be followed


Download data is not yet available.


Aishath Muneeza and Rusni Hassan (2011). Legal Obstacles in Shari’ah Corporate Governance of Islamic Financial Institutions in Malaysia. JKAU: Islamic Econ., 24 (2), 179-182. DOI: 10.4197/Islec. 24-2.6

Che Rosmawati Che Mohd Zaina, Suhaimi Ab Rahmanb, Zahira Mohd. Ishanc & Shamrahayu (2015). Jurisdiction and Prosecution of Halal Related Matters in Malaysia: Challenges and Prospects. Procedia - Social and Behavioral Sciences, 172, 294–300.

Malik M. Hafeez (2013). An Analysis of Corporate Governance In Islamic And Western Perspectives. International Journal of Business, Economics and Law, 2, (3), 98-103.

Mansor M Larbsh (2015). Islamic Perspective of Corporate Governance, Al-Asmarya Islamic University Bulletin, 17(1), 135-152.

Manual Prosedur Pensijilan Halal Malaysia (Semakan Ketiga) 2014

Mohammad Al-Suhaibani and Nader Naifar, (2014). Islamic Corporate Governance: Risk-Sharing and Islamic Preferred Shares. Journal of Bussiness Ethics, 124, 623–632. DOI 10.1007/s10551-013-1897-6

Nornadia Matulidi, Harlina Suzana Jaafar & Ahmad Naqiyuddin Bakar (2016). The Needs of Systematic Governance for Halal Supply Chain Industry: Issues and Challenges. Journal of Applied Environmental and Biological Sciences, 6 (11S), 40–46.

Nurulhuda Noordin, Nor Laila Md Noor, Mardziah Hashim & Zainal Samicho (2009). Value Chain of Halal Certification System: A Case Of The Malaysia Halal Industry, European and Mediterranean Conference on Information Systems 2009 (EMCIS2009), 1–14.

Nurulhuda Noordin, Nor Laila Md Noor & Zainal Samicho (2014). Strategic Approach to Halal Certification System: An Ecosystem Perspective. Procedia - Social and Behavioral Sciences, 121, 79–95.

Shleifer, Andrei, and Robert W. Vishny. (1997) A Survey of Corporate Governance. The Journal of Finance, 52 (2), 737–783. Portico. doi:10.1111/j.1540-6261.1997.tb04820.x.


Bank Negara Malaysia (2011). Shariah Governance Framework. http://www.bnm.gov.my/guidelines_old/05_shariah/02_Shariah_Governance_Framework_20101026.pdf

Berita Harian. https://www.bharian.com.my/rencana/agama/2017/07/302522/tadbir-urus-syariah-pertama-di-dunia 16/07/2017

Bosworth, C.E. and Burton-Page, J. (2012). “Mushrif”, in Encyclopaedia of Islam, Second Edition. P. Bearman, Th. Bianquis, C.E. Bosworth, E. van Donzel, W.P. Heinrichs (eds.). Retrieved online on 18 July 2017 http://ezproxy.usim.edu.my:2072/10.1163/1573-3912_islam_COM_0810 First published online: 2012. First print edition: ISBN: 9789004161214, 1960-2007

Jamil Bidin, CEO of Halal Industry Development Corporation Malaysia, power point presentation. (2016). “Future Directions of Halal in Malaysia: Opportunities for Trade and Investment”. Halal Awareness Seminar Gtower Hotel, Kuala Lumpur. http://www.arr.gov.pl/data/01943/kuala_lumpur_14062016_1.pdf retrieved online 18/07/2017

http://www.itc.gov.my/tourists/discover-the-muslim-friendly-malaysia/malaysia-the-worlds-leading-halal-hub// retrieved online 18/07/2017

How to Cite
Mohd Safian, Y. H. (2020). Halal Governance In Malaysia Companies. Journal of Fatwa Management and Research, 20(1), 40-52. https://doi.org/10.33102/jfatwa.vol20no1.3