Analysis Of Implementation Of Shariah Governance Framework In Permodalan Nasional Berhad

Abstract

This paper attempts to study about PNB Groups Shariah Governance Framework which is issued by Permodalan Nasional Berhad. Permodalan Nasional Berhad is Government Linked Investment Companies which are not required to have a set of Shariah Governance Framework in their daily operation. Regarding IFIs in Malaysia, the Central Bank of Malaysia mandates that all Islamic Financial Institutions create an Shariah Governance Framework in order to ensure that their operations adhere to Shariah principles. The objective of this paper is to analyse the implementation of Shariah Governance Framework in Permodalan Nasional Berhad, interviews and document analysis methods are used for data collection. The author concludes this study emphasizes the significance of the Shariah governance system in ensuring compliance with Islamic law within the Islamic financial system. It highlights the integration of good corporate governance principles with the concept of Shariah compliance to enable the smooth operation of Islamic financial activities. Furthermore, the study mentions the alignment of the Shariah governance framework with the objectives of Maqasid Shariah, particularly in strengthening the viability of Islamic financial institutions and promoting transparency especially in Permodalan Nasional Berhad Groups.