• Nur Khalidah Dahlan Institute of Malaysian and International Studies (IKMAS), Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia
  • Mohd Rizal Palil Faculty of Economics and Management, University Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia
  • Noor Inayah Yaa‟kub Universiti Islam Malaysia, Blok I, Bangunan MKN Embassy Techzone, Jalan Teknokrat 2, 63000 Cyberjaya, Selangor, Malaysia
  • Mohamad Abdul Hamid Universiti Islam Malaysia, Blok I, Bangunan MKN Embassy Techzone, Jalan Teknokrat 2, 63000 Cyberjaya, Selangor, Malaysia
Keywords: Arbitration, Mediation, Sharia Advisory Council, Multi-ethnicity, Justice, Malaysia.


Malaysia has already known as an Islamic country. In a country of multi-ethnicity, multi-religion and multi-cultural societies, demands a concept of justice and equality that is different from other countries, particularly the ones with homogenous societies. The highest law of the land places Islam, the religion associated with one of the main ethnicity, as the official religion of the nation and allowed the duality of economic system, in particular banking system, whereby conventional banking system exists side-by-side with the Sharia-compliant, Islamic banking. By reviewing the pertinent literature on the development of Islamic banking, the reviewed cases on Islamic banking and its contributions to Malaysian society regardless of ethnicity and religion. The discussion in this paper therefore will be directed towards highlighting the laws and mechanisms of solution on Islamic banking and its implication to enhance the application of Islamic banking laws to consumers regardless of ethnicity and religion, in order to maintaining fairness and justice in a multi-ethnic society


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