Conceptual Framework for Shari’ah Governance with Special Reference to the Muslim Friendly Hotel Sector in Malaysia

• Published in: Eurasian Studies in Business and Economics
• Main Author: Samori Z.; Rahman F.A.; Zahari M.S.M.
• Format: Book chapter
• Language: English
• Published: Springer Science and Business Media B.V. 2017
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-85086933927&doi=10.1007%2f978-3-319-46319-3_45&partnerID=40&md5=931e6f22883c4c6adb0a591ff4412d02

It has been a goal of the Malaysian Government to establish Malaysia as a global halal hub. To achieve this objective, various initiatives have been undertaken which include the establishment of the Halal Master Plan, Halal Industry Development Corporation, appointment of Department of Islamic Development Malaysia (JAKIM) as the halal certification authority and development of a number of halal standards. This paper conceptually discusses the current legal and regulatory framework for the halal industry in Malaysia with special reference made to the Muslim Friendly Hotel sector. Reviews of various related documents demonstrate that there is a lacuna in the existence of a governance framework for the halal industry, which includes the absence of a halal standard for the Muslim Friendly Hotel sector. Another serious drawback identified in this regulatory framework is the lack of a clear and proper shari’ah governance framework for the halal industry. This paper therefore proposes that there is an urgent need for the policy makers to develop such a comprehensive halal standard for Muslim Friendly Hotels in this country. Establishing a comprehensive shari’ah governance framework for the halal Industry is inadvertently another crucial part that needs to be addressed by the relevant authorities to ensure further development of the halal industry in Malaysia. It is hoped that this paper will create alarm among the policymakers, key hotel operators, and regulatory bodies so that a more comprehensive and updated piece of shari’ah framework that governs the formation of the Muslim Friendly Hotels sector will be formulated. © 2017, Springer International Publishing AG.