The publication of Shariah Standards and Operational Requirements Series 1 is a compilation of five Standards; i.e., Murabahah, Mudarabah, Musyarakah, Tawarruq and Istisna`, issued by the Central Bank of Malaysia (the Bank). A number of other Standards on various Shariah contracts are scheduled to be issued by the Bank in the future.
The Standards outline principles, pillars and conditions of specific Shariah contracts to ensure end-to-end compliance with the Shariah rulings in the structuring of Islamic financial products and services. The Standards also contain optional practices as guidance for the industry, particularly in relation to best practices. The operational requirements complement the application of the Shariah requirements from a practical perspective. These features render the Standards comprehensive references that promote harmonisation of Shariah interpretations domestically, regionally and globally.
In this regard, the Bank is committed to positioning Malaysia as a thought leader in Islamic finance. To support this role, the Bank, in collaboration with the International Shari’ah Research Academy for Islamic Finance (ISRA), has initiated the translation of the Standards into Malay and Arabic to ensure greater outreach. ISRA wishes to express our appreciation to the Bank for entrusting us with the responsibility of translating the Standards and publishing them in three languages (English, Malay and Arabic).
This noble initiative will benefit different stakeholders of the Islamic finance industry, including financial practitioners, Shariah scholars, the legal fraternity, arbitrators, academicians and students. If there are inconsistencies between the latest English version of these Standards and the previous versions and versions in other languages, the latest English version shall prevail.
