Objective: Takaful operations in Malaysia have proven their credibility through the remarkable achievement in market structure and net contribution income. This research paper discusses on the issues and challenges faced by Malaysian Takaful Operators in contributing for the socio-economic objectives during the pandemic of Covid-19. Methodology: In complementing this study, ten respondents from takaful industry will be interviewed in gathering their insight over the subject matter. This study is in line with the VBIT framework which have been introduced to achieve inclusive protection for the underserved or unserved segments of the society and to address relevant socio-economic issues. Findings: Based on the findings, Malaysian Takaful Operators are optimistic about their performance always seek for the best opportunity in contributing to the society.  Takaful Operators also believe that all the challenges that they are currently faced would not become the barriers for them to consistently contribute to the socio-economic objectives even it is not in the pandemic era anymore. Implications: The proposed solution for the identified problems is part of the contribution in this study and can be very useful for the industry player. Some of the listed strategies are different from prior studies, and in fact, there is no study previously which have been discussing the challenges in detail.

No abstract

Shariah audit functions within Islamic Financial Institutions were imposed by Bank Negara Malaysia (BNM) with the issuance of Shariah Governance Framework in 2010. During the early stages of the implementation, the approach for this shariah audit function was only focused on shariah compliance. After ten years, the shariah audit function became mandatory, where this function was expected to be well-developed and able to achieve its primary objective. The role of shariah audit should go beyond Shariah compliance as it should serve as an independent assessment of internal control for any shariah compliance risk. Shariah audit also is one of the crucial elements in the Shariah governance framework. However, the lack of specific guidelines for shariah audit became a challenge for auditors to carry out a comprehensive shariah audit procedure. Therefore, this study aims to provide an in-depth explanation of the process of shariah audit, particularly on planning, executing, reporting and follow up, which emphasises on the application of risk-based internal audit (RBIA) approach. The study adopted a qualitative methodology by using multiple case studies involving Takaful Operators in Malaysia. The detailed explanation of the current shariah audit process is expected to contribute to the provision of valuable detailed information for the Takaful Industry as well as other Islamic financial institutions. The information could benefit Islamic Financial Institutions by assisting in developing a strategy to provide a robust internal control for reducing the occurrence of shariah non-compliance risk.

No abstract