Labanieh, Mohamad Fateh and Hussain, Mohammad Azam and Ashraf, Zeeshan and M. Zin, Shahrizal (2024) Revolutionising Islamic Banking Disputes Resolution in Malaysia: The Potential of E-Arbitration. Manchester Journal of Transnational Islamic Law & Practice, 20 (2). pp. 163-183. ISSN 26336626

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Abstract

The Malaysian government has supported the steady growth of the Islamic banking industry by providing a coherent dispute-resolution framework. However, electronic arbitration (hereinafter referred to as “e-arbitration”) has not yet been regulated in Malaysia. The existing arbitration framework in Malaysia tends to respond slowly to establish and regulate e-arbitration. By using doctrinal legal research methodology with a qualitative approach, this article examines the potential of establishing e-arbitration in resolving Islamic banking disputes in Malaysia. The data were sourced using a library-based and qualitative approach, especially by conducting semi-structured interviews with seven (7) respondents who were selected using purposive sampling. Their selection criteria were based on job description or title, department and specialisation. Both primary data, such as laws, acts, case law, and interview data, and secondary data, such as journal articles, textbooks, and online resources, are scrutinised using analytical, critical and content analysis methods. The article finds that establishing e-arbitration will take the Malaysian arbitration industry to an advanced and modern level. It is recommended that Rule 13 of the I-Arbitration Rules 2023 be amended to harmonise with the provisions outlined in sections 56 and 57 of the Central Bank of Malaysia Act 2009 (Act 701). Additionally, efforts should be made to address the prevailing challenges associated with traditional arbitration, such as its cost-intensive and time-consuming nature. Furthermore, Malaysian authorities, including AIAC, should explore the implementation of earbitration method that aligns with Goal thirteen (13) of the Sustainable Development Goals (SDG). This goal emphasises the urgent need to tackle climate change and its repercussions by promoting sustainable practices

Item Type:	Article
Uncontrolled Keywords:	E-Arbitration; Traditional Arbitration; Online Dispute Resolution (ODR); Dispute Resolution; Islamic Banking
Subjects:	K Law > K Law (General)
Divisions:	School of Law
Depositing User:	Mr. Izhar Hj. Hashim
Date Deposited:	04 Nov 2026 04:33
Last Modified:	04 Nov 2026 04:33
URI:	https://repo.uum.edu.my/id/eprint/34458

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