Tunku Azizah Launches Book On Dual Legal System Governing Islamic Finance

KUALA LUMPUR, Aug 1 (Bernama) -- Tengku Ampuan Pahang Tunku Azizah Aminah Maimunah Iskandariah today graced the launch of the book, From Shariah to Statute: Legal and Regulatory Framework of Islamic Finance in Malaysia, which provides a comprehensive overview of Malaysia’s unique dual legal system governing the Islamic finance sector. 

The book launch was held in conjunction with the professorial lecture delivered by Prof Datin Dr Nurdianawati Irwani Abdullah, a finance lecturer at the International Islamic University Malaysia’s (IIUM) Kulliyyah of Economics and Management Sciences.

Tunku Azizah’s arrival, as the Constitutional Head of the university, was warmly received by IIUM Rector Prof Emeritus Datuk Dr Osman Bakar and Mara chairman Datuk Dr Asyraf Wajdi Dusuki.

The book, From Shariah to Statute: Legal and Regulatory Framework of Islamic Finance in Malaysia, explains the relationship between Syariah principles and statutory laws, highlighting the roles of key regulatory authorities, core legislations, and institutional mechanisms that uphold Syariah compliance, financial integrity, and consumer protection.

The book also explores recent regulatory developments, including licensing and supervision of digital Islamic banks and takaful operators, alongside Malaysia’s ongoing efforts to promote sustainability, innovation, and legal harmonisation within the Islamic finance ecosystem.

Meanwhile, during her lecture titled “1 Malaysian, 1 Takaful Dream: Too Far to Reach?”, Nurdianawati highlighted the pressing need for comprehensive health protection amid rising medical inflation, which surged to 12.6 per cent in 2023, more than double the global average, hence putting significant strain on household expenditures.

She noted that takaful penetration remains low at around 20 per cent,  with over 90 per cent of Malaysians lacking adequate coverage, and more than 85 per cent of small and medium enterprises without suitable protection.

At the same time, she said nearly 70 per cent of Malaysians still rely on overcrowded public hospitals, where waiting times can exceed 24 hours, while private healthcare costs continue to rise.

In response, Nurdianawati proposed a comprehensive action plan aimed at achieving the national goal of “1 Malaysian, 1 Takaful” by 2026, not merely a vision but a shared social responsibility.

“Achieving ‘1 Malaysian, 1 Takaful’ requires cross-sector collaboration involving government agencies, takaful operators, employers, zakat and waqf bodies, and civil society. This is no longer optional but a social obligation to prevent anyone from falling into poverty due to illness.

“This plan targets increasing takaful penetration to 40 per cent by 2028. With strong commitment and thorough implementation, the dream of ensuring every Malaysian has basic health protection can be realised,” she added.

-- BERNAMA