Corporate Governance

Shariah Management

A robust Shariah Management mechanism is crucial to ensure that PNB's investments are compliant with Shariah principles. The implementation of PNB's Shariah Governance Framework (SGF) demonstrates PNB's dedication to strong Shariah governance in its investments, by adhering to Shariah screening methods approved by PNB's Shariah Advisory Committee (SAC) and guidance of the Shariah Manual. Shariah Management provides comprehensive support for sustainability initiatives, specifically in areas of Zakat, Wakaf, mosque management, and public engagement.

Shariah Governance Framework

The Shariah Governance Framework (SGF) enables PNB to enhance its Shariah-compliant investment processes and strengthen the public confidence on the credibility of PNB as an Islamic Investment House.

The four main functions of PNB SGF: 

Shariah Research & Advisory

  • Conducts Shariah research and provides Shariah advice.

 

Shariah Risk Management

  • Ensures efficient and effective management of Shariah non-compliance risks. 

Shariah Compliance Review

  • Conducts Shariah compliance monitoring and review for the purpose of continuous assessment in accordance with the Shariah Manual and SAC’s resolutions.

Shariah Audit

  • Conducts Shariah auditing for the purpose of independent periodical assessment and objective assurance on the degree of Shariah compliance.

Shariah Sustainability

Shariah Management has diversified many of its initiatives by collaborating with external parties to promote societal growth and benefits. The initiatives include public engagement, Zakat, Wakaf management and ongoing Shariah awareness programmes such as Maqasid Al-Syariah and Bicara Maqasid.

The Maqasid Al-Syariah programme aims to educate stakeholders on PNB's Maqasid screening processes and provide assurance on the Shariah status of ASNB’s unit trust funds, while Bicara Maqasid is a public engagement programme that extensively discusses and shares information on the initiative through television and radio channels.

A total of RM6.1 million was distributed in 2022 through the PNB Zakat CSR Distribution Programme, overseen by the Shariah Management. The Zakat allocation is in accordance with the PNB Zakat CSR Framework approved by PNB Board of Directors.

PNB Shariah Initiatives Journey

PNB is enthused to move forward with continuous implementation of its Shariah initiatives. Some of the remarkable initiatives accomplished are:

2017

  • All States Fatwa Councils recognised PNB’s investment as ‘Harus’. 
  • Reversal of Selangor & Pulau Pinang Fatwa Committee’s decision from Haram to Harus.  
  • Establishment of PNB Maqasid Shariah Screening Methodology.  

2018

  • Shariah compliant status of PNB’s investments – 71.9% based on Securities Commission’s Shariah-Compliant Securities Screening Methodology (‘SC’) and 28.1% based on Maqasid Al-Syariah Screening methodology.
  • Bank Muamalat, RHB Islamic, BSN, and Hong Leong Islamic as ASNB’s agents.
  • Establishment of PNB Zakat/CSR Framework I. 
  • Establishment of Shariah Manual for PNB’s investments.

2019

  • Shariah compliant status of PNB’s investments – 74.4% based on SC and 25.6% based on Maqasid Al-Syariah Screening methodology.
  • Establishment of PNB Zakat/CSR Framework II. 
  • Develop Concept Paper for Zakat Payment.  
  • Develop Concept Paper for Wakaf Unit Trust ASNB.
  • Revision of Shariah Manual.

2020

  • Shariah compliant status of PNB’s investments – 75% based on SC and 25% based on Maqasid Al-Syariah screening methodology.
  • Revision of Maqasid Al-Syariah Screening Methodology. 
  • Develop Shariah Governance Framework (SGF) - Phase 1. 
  • Conduct 17 Maqasid Al-Syariah Programmes.
  • Organise Muzakarah Unit Amanah ASNB.

2021

  • Shariah compliant status of PNB’s investments – 77% based on SC and 23% based on Maqasid Al-Syariah Screening methodology.
  • Obtained Mutawalli Status for ASNB Wakalah Sdn Bhd (AWSB). 
  • PNB launched Wakaf ASNB.  
  • MoU with UiTM.
  • Implementation of PNB Shariah Governance Framework (PNB SGF).
  • PNB’s registration as Commodity Trading Participant (CTP) at Bursa Malaysia.

2022

  • Shariah compliant status of PNB’s investments – 77.2% based on SC and 22.8% based on Maqasid Al-Syariah Screening methodology.
  • Organise PNB Wakaf Forum 2022. 
  • Implementation of ‘Program Pelaburan Tabung Unit Amanah Melalui Amanah Saham Bumiputera (ASB) kepada Asnaf’ (Usahasama PNB dan MAIWP). 
  • Research and implementation on Social Finance’s initiative - (Zakat Micro Takaful & Micro Financing).
  • Conduct Bicara Maqasid with TV Al-Hijrah & Radio IKIM.
  • PNB launched ASN Sukuk.

2017

2018

2019

2020

2021

2022