Corporate Governance Structure of State Islamic Religious Councils in Malaysia

Mahadi, Rozaidy; Sariman, Noor Kaziemah; Noordin, Raman; Mail, Rasid; Fatah, Nur Shahida Ab

doi:10.18488/journal.1.2018.87.388.395

Cited by 7 publications

(11 citation statements)

References 5 publications

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“…In Malaysia, the Islamic religious affairs are administered by the State Islamic Religious Council (SIRC). The SIRC is responsible to advise the Head of Islamic Religion in all Islamic matters and manage Islamic wealth such as zakat, waqf, baitulmal and other Islamic funds (Mahadi et al, 2018;Zain et al, 2014). To discharge these responsibilities, the SIRCs must report and disclose all financial and non-financial information to the relevant stakeholders whether in the financial statements (Abu Bakar et al, 2020) or in other medium such as SIRC's website.…”

Section: Reporting In Islamic Institutionsmentioning

confidence: 99%

Preliminary Study on Website Disclosures for Sustainability Reporting of Islamic Religious Institutions

Abdullah¹,

Ali²,

Minhad³

et al. 2023

IJARBSS

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Public sector organizations play an essential role in supporting the government's commitment to sustainable development. These organizations are expected to disclose more social and environmental information than private companies due to public contracts. Malaysian State Islamic Religious Councils (SIRCs) is one of the government agencies responsible for distributing and disseminating adequate and accurate information to various stakeholders, especially the public. These SIRCs frequently organize sustainability-related activities as part of their corporate social responsibility agenda and have a vast potential to contribute by disseminating sustainability-related information on their websites. However, the extent of sustainability website reporting by the SIRCs remained largely unaddressed. Drawing from the literature, this preliminary study proposes a website disclosure index for sustainability reporting by the SIRCs in Malaysia. A content analysis on three SIRCs websites representing three regions in Malaysia have been performed. A total of sixty-seven disclosure items were used as indicators during the website content analysis. Key findings indicate that more effort needs to be initiated by SIRCs in supporting a unified digital reporting that promotes accountability and transparency among government agencies. Nevertheless, the proposed website disclosure index may assist in formulating policies to encourage the use of SIRCs' websites to report sustainability information to the public. This study provides valuable input in supporting the government's aspiration to develop future strategies for achieving Sustainability Development Goals (SDGs) and adds to the limited literature on the website sustainability reporting by the public sector. Future research may use a larger sample of SIRCs to validate the disclosure index proposed in this study.

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Section: Reporting In Islamic Institutionsmentioning

confidence: 99%

Preliminary Study on Website Disclosures for Sustainability Reporting of Islamic Religious Institutions

Abdullah¹,

Ali²,

Minhad³

et al. 2023

IJARBSS

View full text Add to dashboard Cite

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“…At present, there are 14 SIRCs in Malaysia. Each of the SIRC is established based on the Federal Constitution in accordance with Schedule 9 List 2, whereby the states in Malaysia are authorised to have the jurisdiction to govern the collection of zakat fitrah , waqf , baitulmal or/and other similar Islamic social funds (Mahadi et al , 2018). In addition, Section 25 of the Civil Law Act 1956 states that the administration of any Muslim’s property must be in accordance with Islamic law; thus, Shariah is the governing law of property for Muslims including zakat and waqf (Kamaruddin et al , 2018).…”

Section: Literature Reviewmentioning

confidence: 99%

Exploring Shariah audit practices in zakat and waqf institutions in Malaysia

Kamaruddin

Shafii

Hanefah

et al. 2023

JIABR

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Purpose This study aims to explore the current Shariah audit practices in zakat and waqf institutions in Malaysia. Design/methodology/approach A focus group discussion (FGD) with 38 zakat and waqf officers from 17 different zakat and waqf institutions in Malaysia was conducted. For reporting purposes, this study used a single-case study approach. The FGD was conducted and completed at the end of June 2021 via an online approach through Microsoft Teams. Findings The finding highlights the existing Shariah governance practices especially in terms of Shariah supervision roles, Shariah audit implementation in terms of Shariah audit scopes and common findings, Shariah audit competency, Shariah audit effectiveness especially the need for external Shariah audit function and Shariah audit issues and challenges faced in the implementation of Shariah audit practices. Practical implications The study findings and recommendations are useful for zakat and waqf institutions as well as the State Islamic Religious Councils to enhance Shariah audit practices in Malaysia. Originality/value This study is among the pioneer studies that explore Shariah audit practices in zakat and waqf institutions in Malaysia.

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“…In 2013, the Ministry of Finance issued a circular detailing the benefits of accrual accounting information (Ministry of Finance, 2013; Azmi and Mohamed, 2014). In addition, the Accountant General’s Department focused on four strategies to ensure a smooth transition: establishment of a committee, known as the Government Accounting Standards Advisory Committee (GASAC), which was tasked with the drafting of accounting standards and policies derived from IPSAS to suit the Malaysian context; identification and suggestions by GASAC for amendments to the law in order to facilitate the smooth adoption of accrual accounting in the public sector; development of new accounting information systems for effective implementation of accrual accounting; and training of 65,000 to 70,000 personnel in the use of accrual accounting in a public sector context (“A closer look at Malaysia”, 2013; Atan and Yahya, 2015; Mahadi et al , 2015). …”

Section: Introductionmentioning

confidence: 99%

“…training of 65,000 to 70,000 personnel in the use of accrual accounting in a public sector context (“A closer look at Malaysia”, 2013; Atan and Yahya, 2015; Mahadi et al , 2015).…”

Section: Introductionmentioning

confidence: 99%

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Perception of the Malaysian Federal Government accountants of the usefulness of financial information under an accrual accounting system: a preliminary assessment

Ismail

2022

MEDAR

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Purpose The objective of this study is to examine the perceived usefulness of accrual accounting-based financial information for accountability and for supporting decision-making in public sector organisations. Design/methodology/approach A questionnaire survey adapted from Kober et al. (2010) was used to survey Malaysian Federal Government accountants to ascertain their views on the usefulness of accrual accounting information across 12 situations regarding accountability and decision-making. Mean scores and mean score ranking were computed on a total of 165 usable responses received. The independent t-test was conducted to investigate the differences in the perception between “accountants with” and the “accountants without” prior work experience in the private sector. Findings The study provides evidence that Malaysian Federal Government accountants consider accrual accounting information as very useful for decision-making. The three most important decision-usefulness indicators in the survey are “To assist in managing the department’s assets and liabilities”, “To assess cash flow needs of a department” and “For departmental resource allocation decisions”. The least useful accrual accounting information as perceived by the Malaysian public sector accountants is “To assist in discharging the department’s accountability obligations”. Originality/value The study provides valuable insights into the extent to which accrual accounting information is considered useful for accountability and decision-making, lending support to the Malaysian Government’s reform agenda of moving towards using accrual accounting in public sector organisations at the federal level.

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Corporate Governance Structure of State Islamic Religious Councils in Malaysia

Cited by 7 publications

References 5 publications

Preliminary Study on Website Disclosures for Sustainability Reporting of Islamic Religious Institutions

Preliminary Study on Website Disclosures for Sustainability Reporting of Islamic Religious Institutions

Exploring Shariah audit practices in zakat and waqf institutions in Malaysia

Perception of the Malaysian Federal Government accountants of the usefulness of financial information under an accrual accounting system: a preliminary assessment

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