Reconstructing data privacy governance in Islamic fintech social finance in Malaysia and Indonesia through Maqasid al-Shariah

Sanusi, Sri Wahyu Sakina and Sholehuddin, Sawal and Mohamad Puad, Noor Aimi and Miskam, Surianom (2026) Reconstructing data privacy governance in Islamic fintech social finance in Malaysia and Indonesia through Maqasid al-Shariah. Journal of Muwafaqat, 9 (2). pp. 121-148. E-ISSN 2600-8939

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Abstract

The rapid expansion of Islamic financial technology (Islamic Fintech) has transformed the administration of Islamic social finance, particularly in the management of zakat, waqf, and sadaqah. Digital platforms have significantly enhanced operational efficiency, transparency, and financial inclusion by facilitating wider participation from donors and improving the distribution of charitable funds. Nevertheless, the increasing reliance on digital technologies has simultaneously intensified concerns regarding the protection of personal data, especially information relating to donors and vulnerable beneficiaries. Existing legal frameworks in Malaysia and Indonesia provide statutory safeguards through the Personal Data Protection Act (PDPA) 2010 (Amendment 2024) and Indonesia's Personal Data Protection Law (Law No. 27 of 2022). However, these regulations primarily emphasise legal compliance while providing limited consideration of Islamic ethical obligations and the higher objectives of Shariah (Maqasid al-Shariah). This conceptual study critically analyses data privacy governance in Islamic Fintech social finance from the perspective of Maqasid al-Shariah. Using qualitative doctrinal and comparative legal analysis, the study examines regulatory provisions alongside Islamic legal principles derived from the Qur'an, Sunnah, classical juristic writings, and contemporary Islamic governance literature. The analysis demonstrates that personal data within Islamic social finance should not merely be regarded as digital assets requiring legal protection but should instead be recognised as Data Stewardship, a sacred trust entrusted to Islamic institutions. Accordingly, protecting personal information represents the fulfilment of several objectives of Maqasid al-Shariah, particularly the preservation of religion (Hifz al-Din), life and dignity (Hifz al-Nafs and Hifz al-'Ird), intellect (Hifz al-'Aql), and wealth (Hifz al-Mal). The study proposes a Maqasid-Based Data Privacy Governance Framework that integrates legal compliance, Islamic ethics, institutional accountability, cybersecurity governance, and public trust into a holistic governance model for Islamic social finance institutions. Unlike conventional privacy frameworks that emphasise regulatory obligations, the proposed framework positions data governance as an act of religious stewardship (amanah) that promotes justice ('adl), public interest (maslahah), transparency, and sustainable digital governance. The proposed framework contributes to the growing discourse on Islamic digital governance and offers practical guidance for policymakers, regulators, zakat institutions, waqf authorities, and Islamic Fintech providers in strengthening public confidence while ensuring that technological innovation remains consistent with the objectives of Maqasid al-Shariah.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Islamic Fintech, Data Privacy, Maqasid al-Shariah, Islamic Social Finance, Data Stewardship, Governance
Subjects:	BPH Islamic Banking & Finance > BPH Islamic Social Finance BPH Islamic Banking & Finance > BPH Islamic Social Finance > BPH Waqf BPH Islamic Banking & Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	UNSPECIFIED
Depositing User:	DR NOOR AIMI MOHAMAD PUAD
Date Deposited:	11 Nov 2026 16:23
Last Update:	11 Nov 2026 16:23
Queue Number:	2026-11-Q6112
URI:	http://irep.iium.edu.my/id/eprint/132579
Indexed In:	Google Scholar, MyCite

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