The Governance of Islamic Development Institutions in Malaysia

Abstract

Islamic development institutions in Malaysia which include Islamic banks, Islamic universities, Islamic schools, zakat institutions, waqf institutions, madrasah etc. are among development institutions that are in the forefront from the aspect of expansion, number and operations. Looking at the positive expansion of Islamic development institutions, arises the question of how these institutions are governed in Malaysia. What are the governance characteristics that have been adopted unto the Islamic development institutions in Malaysia so that they would contribute towards the achievement of the institutions' objectives? Do the governance factor contributes towards the positive expansion of the Islamic development institutions in Malaysia? This article would try to elaborate on this matter.  Specifically, this paper aims to understand the current governance practices and the state of the governance system of Islamic development institutions in Malaysia. This study utilizes descriptive analysis approach in extracting and analysing secondary data.