A SWOT analysis on dispute resolution in the Islamic finance industry in Malaysia

Engku Ali, Engku Rabiah Adawiah and Oseni, Umar Aimhanosi and Abdul-Qadir Zubair, Aishat (2014) A SWOT analysis on dispute resolution in the Islamic finance industry in Malaysia. In: 11th ASLI Conference 2014: Law in Asia: Balancing Tradition and Modernization, 29th-30th May 2014, Kuala Lumpur. (Unpublished)

	PDF - Supplemental Material Restricted to Repository staff only Download (872kB) | Request a copy
	PDF - Submitted Version Restricted to Repository staff only Download (486kB) | Request a copy

Abstract

As part of the transformation programme of the Malaysian government to make the country a sustainable global Islamic finance hub, the necessary legal and regulatory frameworks need to be put in place. While the regulatory authorities, such as Bank Negara Malaysia, have constantly introduced unprecedented reforms that are worth emulating in other jurisdictions, the challenge of adequate access to justice still lingers on despite the current diverse options available to the parties in Islamic banking issues. This paper therefore conducts a SWOT analysis on the effectiveness of the existing processes and legal institutions of dispute resolution specifically earmarked for Islamic finance matters. There is no doubt about the fact that the existing processes and institutions have their strengths; but they also have their weaknesses which can be addressed in the long run. The potential threats can be solved through proper implmentation of the existing legal and regulatory framework which presents a number of opportunities. The research concludes that since most Islamic financial institutions in Malaysia are more likely to use litigation for breach of contract; such attitude has relegated other sustainable processes of dispute resolution to the background and made them irrelevant in the Islamic finance industry. Hence, there is a need to consolidate the existing mechanisms in a more efficient manner that will benefit both the consumers and the Islamic financial institutions.

Item Type:	Conference or Workshop Item (Full Paper)
Additional Information:	949/38347
Uncontrolled Keywords:	dispute resolution, Islamic finance, arbitration, mediation, Malaysia
Subjects:	H Social Sciences > HG Finance K Law > K Law (General) K Law > KBP Islamic Law
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Ahmad Ibrahim Kulliyyah of Laws > Department of Civil Law
Depositing User:	Dr. Umar Aimhanosi Oseni
Date Deposited:	23 Sep 2014 15:13
Last Modified:	06 Jan 2015 12:28
URI:	http://irep.iium.edu.my/id/eprint/38347

Available Versions of this Item

• A SWOT analysis on dispute resolution in the Islamic finance industry in Malaysia. (deposited 23 Sep 2014 15:13) [Currently Displayed]

Actions (login required)

View Item