TRANSLATING FIQH PRINCIPLES INTO ISLAMIC FINANCIAL PRACTICE: REFLECTIONS ON MALAYSIA’S HAJAH AND DARURAH POLICY DOCUMENT
DOI:
https://doi.org/10.33102/g3wj0k37Keywords:
Hajah, Darurah, Shariah governance, Islamic banking, Takaful, MalaysiaAbstract
This paper examines Bank Negara Malaysia’s 2024 Policy Document on Hajah and Darurah and its implications for Shariah governance and supervision in Malaysia. While practitioner commentary and recent studies discuss selected provisions or applications, limited attention has been given to comparing all three regulatory categories with their underlying juristic distinctions. Using qualitative textual and policy analysis, the study examines the full Policy Document and compares Hajah Type 1, Hajah Type 2, and Darurah across six dimensions: the nature and scope of hardship; the applicability and conditionality of Shariah Advisory Council (SAC) rulings; duration and proportionality; governance responsibilities; approval and reporting routes; and the relationship with recovery or resolution. The analysis shows that the framework reflects the elevation of need, proportionality, removal and comparison of harm, and the withdrawal of relief when its grounds cease. Hajah Type 2 and Darurah are both conditional, temporary, and proportionate, but Hajah Type 2 remains below the Darurah threshold, whereas Darurah requires a recovery-or-resolution trigger alongside the other conditions in paragraph 9.7. The study offers a preliminary comparison of the policy’s regulatory categories and the juristic positions reviewed. It concludes that the framework provides structured guidance for institutional decision-making, while the consistency and effects of its application require further empirical research.
Downloads
References
Abd Razak, M. A., & Ramli, M. A. (2018). The concept of 'umum al-balwa in the shade of tasawwuf: Wisdom between concession (rukhsah) and being abstinent (wara'). Jurnal Akidah & Pemikiran Islam (Afkar), 20(1), 213-228.
Abdul Halim, A. H., Zamri, M. F. N., Mohd Razif, N. F., & Ali, A. K. (2026). Analisis fiqh terhadap al-iʿānah ʿalā al-maʿṣiyah dalam kerangka dasar ḥājah dan ḍarūrah Bank Negara Malaysia: Antara keperluan dan larangan. In E-proceedings of the 8th World Conference on Islamic Thought & Civilization (WCIT 2026) (pp. 296–307). Universiti Sultan Azlan Shah.
Abdullah, M. F., Ab Rahman, A., Che Seman, A., Noordin, K., Mohd Razif, N. F., Mohd Noh, M. S., Bensala, Y., & Shefidi, M. S. I. (2025). Defining Shariah boundaries: Al-iʿānah ʿalā al-maʿṣiyah in Malaysia’s Islamic banking operations. Jurnal Syariah, 33(3), 361-396. https://doi.org/10.22452/syariah.vol33no3.3
Abozaid, A. (2016). Critical review of the tools of ijtihad used in Islamic finance. Islamic Economic Studies, 24(1), 77-94. https://doi.org/10.12816/0025317
Agha, E., & Shafii, Z. (2021). Hajah in Islamic finance: Mastering the doctrine of need in Shari'ah decision making. Journal of Fatwa Management and Research, 26(1), 37-50. https://doi.org/10.33102/jfatwa.vol26no1.395
Allen & Gledhill. (2024, February 28). Bank Negara Malaysia seeks to strengthen processes of Islamic financial institutions via new policy document on hajah and darurah. https://www.allenandgledhill.com/publication/articles/27511/bank-negara-malaysia-seeks-to-strengthen-processes-of-islamic-financial-institutions-via-new-policy-document-on-hajah-and-Darurah
Al-Nahari, A. A. A. Q., Monawer, A. T. M., & Abdullah, L. H. (2022). Common conceptual flaws in realizing maqasid al-Shariah vis-a-vis Islamic finance. ISRA International Journal of Islamic Finance, 14(2), 190-205. https://doi.org/10.1108/IJIF-12-2020-0259
Alsagoff, S. S., & Hashim, H. A. (2024, January 26). Bank Negara issues policy document on hajah and darurah. Skrine. https://www.skrine.com/insights/alerts/january-2024/bank-negara-issues-policy-document-on-hajah-and-da
Al-Suyuti, (1983). Al-ashbah wa al-naza'ir. Dar al-Kutub al-Ilmiyyah.
Awadzi, E. A., & El Khoury, C. A. (2020). Financial stability and legal frameworks for Islamic bank resolution and anti-money laundering/combating the financing of terrorism. In Law & Financial Stability (pp. 224-235). International Monetary Fund. https://www.elibrary.imf.org/display/book/9781513523002/ch014.xml
Aziz, S. A., & Ahmad, R. (2018). Konsep al-Darurah dalam akad tawarruq menurut maqasid al-kulliyah: Satu kajian awal. UMRAN - International Journal of Islamic and Civilizational Studies, 5(2), 1-13. https://doi.org/10.11113/umran2018.5n2.171
Bakar, M. A., & Rahim, A. K. A. (2021). Maqasid al-Shariah theory: A comparative analysis between the thoughts of al-Shatibi and 'Izz al-Din Ibn 'Abd al-Salam. International Journal of Academic Research in Business and Social Sciences, 11(8), 180-193. https://doi.org/10.6007/IJARBSS/v11-i8/10683
Bank Negara Malaysia. (2024). Policy document on hajah and darurah. https://www.bnm.gov.my/documents/20124/938039/pd-Hajah-Darurah-Jan2024.pdf
Bank Negara Malaysia. (2025). Guiding hajah and Darurah application in Islamic finance. In Financial stability review: Second half (pp. 41-43). https://www.bnm.gov.my/documents/20124/17523783/fsr24h2_en_box1.pdf
Bank Negara Malaysia. (2025). Promoting a progressive and inclusive Islamic financial system. In Annual report (pp. 54-68). https://www.bnm.gov.my/publications/ar2025/ch1d
Dalvi, A. S., Abdullah, M. F., & Siddique, A. B. (2025). Fatwa on financial needs in non-Muslim majority countries: A case on mortgages and insurance. Journal of Fatwa Management and Research, 30(2), 17-33. https://doi.org/10.33102/jfatwa.vol30no2.624
Grassa, R. (2013). Shariah supervisory system in Islamic financial institutions: New issues and challenges. A comparative analysis between Southeast Asia models and GCC models. Humanomics, 29(4), 333-348. https://doi.org/10.1108/H-01-2013-0001
Haridan, N. M., Hassan, A. F. S., & Karbhari, Y. (2018). Governance, religious assurance and Islamic banks: Do Shariah boards effectively serve? Journal of Management and Governance, 22(4), 1015-1043. https://doi.org/10.1007/s10997-018-9418-8
Husnul Fatarib, Qasem, M., & Meirison, M. (2020). Al-Hajat as the basis of contemporary ijtihad. Al-'Adalah, 17(1), 163-186. https://doi.org/10.24042/adalah.v17i1.6209
Ibn Nujaym, Z. al-D. (1999). Al-Ashbah wa al-naza'ir 'ala madhhab Abi Hanifah al-Nu'man (Z. 'Umayrat, Ed.). Dar al-Kutub al-'Ilmiyyah.
Isa, N. M. (2016). Darurah (necessity) and its application in Islamic ethical assessment of medical applications: A review on Malaysian fatwa. Science and Engineering Ethics, 22(5), 1319-1332. https://doi.org/10.1007/s11948-015-9698-1
Ishak, M. S. I. (2025). The element of sad zara’i in Islamic banking: A study on Shariah governance approach in Malaysia. Journal of Islamic Finance, 14(1), 73-84.
Jaber, A. I. D., & Abu al-Basl, A. N. M. (2024). The hardship rule brings facilitation and its applications in Islamic financial institutions. International Journal on Humanities and Social Sciences, (54), 1-30. https://doi.org/10.33193/IJoHSS.54.2024.670
Kamali, M. H. (2003). Principles of Islamic jurisprudence (3rd rev. ed.). Islamic Texts Society.
Mohamad Yusof, N. A., & Ali, M. M. (2021). Board, Shariah committee and senior management: Updates on the BNM Shariah governance policy document. The Journal of Muamalat and Islamic Finance Research, 18(2), 141-153. https://doi.org/10.33102/jmifr.v18i2.374
Mohd Ariffin, N. (2022). Shariah risk management practices in Malaysian Islamic banks. International Journal of Economics, Management and Accounting, 30(1), 101-123. https://doi.org/10.31436/ijema.v30i1.924
Mustofa, I. (2018). Analisis penggunaan kaidah al-hajah qad tunazzalu manzilah al-Darurah dalam fatwa Dewan Syariah Majelis Ulama Indonesia. Analisis: Jurnal Studi Keislaman, 18(2), 1-26. https://doi.org/10.24042/ajsk.v18i2.3425
Rizwan, M. S., Ahmad, G., & Ashraf, D. (2022). Systemic risk, Islamic banks, and the COVID-19 pandemic: An empirical investigation. Emerging Markets Review, 51, Article 100890. https://doi.org/10.1016/j.ememar.2022.100890
Rohim, A. N. (2022). Dharurah and the realization of maqashid sharia: Analysis of the implementation of Islamic legal maxims on emergency. Nurani: Jurnal Kajian Syari'ah dan Masyarakat, 22(1), 63-80. https://doi.org/10.19109/nurani.v22i1.11449
Rulindo, R., & Rifqi, M. (2022). In search of Sharia-compliant resolution framework for Islamic banks: The case of Indonesia. Jurnal Ekonomi & Keuangan Islam, 8(2), 280-296. https://doi.org/10.20885/JEKI.vol8.iss2.art10
Siddique, M. A., & Rashid, A. (2019). The fatawa in Islamic banking and financial industry: Explaining the use of Darurah (dire necessity) and hajah (need) maxims. Journal of Islamic Business and Management, 9(2), 355-367. https://doi.org/10.26501/jibm/2019.0902-008
Zakaria, M. F. R., Shmsuddin, M. H., & Haruna, H. (2025). Profit commission from reinsurance arrangement: An analysis from Shariah perspective. Journal of Islamic Social Finance, 3(1), 38-53. https://journals.iium.edu.my/jisf/index.php/iiibf/article/view/43
Zakariyah, L. (2012). Legal maxims and Islamic financial transactions: A case study of mortgage contracts and the dilemma for Muslims in Britain. Arab Law Quarterly, 26(3), 255-285. https://doi.org/10.1163/15730255-12341240
Zakariyah, L. (2015). Legal maxims in Islamic criminal law: Theory and applications. Brill.
