A CRITICAL ANALYSIS OF THE RESOLUTION OF THE SHARĪʿAH ADVISORY COUNCIL OF SECURITIES COMMISSION MALAYSIA: A CASE STUDY OF THE CRUDE PALM OIL FUTURES CONTRACT

On November 26, 1997, the Shari’ah Advisory Council of Securities Commission Malaysia (SAC) resolved that the crude palm oil futures contract is in accordance with Sharīʿah principles. This resolution is a contentious one as it conflicts with the resolutions of the mainstream internationally represented organisations of Sharīʿah scholars, namely, the Islamic Fiqh Academy of the Muslim World League (IFA-MWL), the Islamic Fiqh Academy of the Organisation of Islamic Cooperation (IFA-OIC), and the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).