The need for Syariah governance frameworks is increasingly evident with the rise of Islamic banking and Islamic finance products on offer leading to transparency issues through the lack of human resources and expertise, resulting in confusion among customers.
This was discussed in the Syariah Advisory Conference 2022 (SAC 2022) panel titled ‘Exploring & Challenges in Syariah Governance in the Dynamic Finance Era’ at the International Convention Centre in Berakas, yesterday.
This was put forward by Brunei Darussalam Syariah Financial Supervisory Board member Dr Mohd Hairul Azrin bin Haji Besar.
He said Syariah governance in the Sultanate has developed significantly since the establishment of Islamic banking in the country.
However, this has also led to a rise in issues and challenges.
“Customers are now more aware and better educated, thus raising issues on transparency of products,” he said.
He also said customers have been questioning why different Islamic banks are not able to offer the same products.
Although this issue has been resolved by making products available by the Syariah Board it is still a prominent issue, Dr Mohd Hazirul Azrin said.
“The Syariah Board plays a major role in maintaining Syariah governance and making sure that all Islamic financial institutions operate in accordance with Syariah.”
The panellists also touched on the need for human resources to resolve issues but agreed that it will take years to gain knowledge and expertise to be qualified for certain positions.