The Maldives' Islamic finance sector is clearly entering a new phase of maturity. With Islamic banking assets, deposits and profitability expanding strongly across institutions such as Maldives Islamic Bank, the Islamic window of Bank of Maldives and Takaful players like Amana Takaful Maldives and Allied Takaful, the question is no longer about growth alone - but about structure, governance and long-term Shariah integrity. A particularly important development is the rising scale of Islamic windows within conventional financial institutions. The data shows that these windows are no longer 'side desks' offering niche products; they are now meaningful profit contributors with substantial financing portfolios and growing customer bases. For example, BML Islamic has expanded across all atoll branches and developed a significant digital ecosystem, while HDFC Amna Islamic housing finance now accounts for nearly half of its parent company's housing portfolio

Digitalization has become a critical instrument in the struggle against pollution and has the potential to help society move toward a low-carbon economy. However, how digitization affects the environment depends on how different economic actors collaborate and, consequently, interact with digitalization. In this regard, the current study investi gates the role of digitalization in Malaysia's transition to green energy, a crucial strategy for curbing CO2 emissions and combating climate change by using the Bayesian auto regressive distributed lags (BARDL) approach for a period from 2000 to 2021. The research empirically demonstrates the positive impact of the digitalization sector on the transition to green energy, notably, variables related to this tran sition were statistically significant. The main contribution of the study to the literature is to reveal the role of digitalization in the transition to green energy. The findings also offer practical policy recommendations, supporting the development of renewable energy sources and aiding in achieving zero-carbon targets. The empirical findings provide valuable insights for decision makers, emphasizing the importance of aligning the European Union regulations for Malaysia's successful transition to digital green energy.

The purpose of this study is to examine the role of corporate governance in combating corruption through the implementation of Section 17A of the Malaysian Anti-Corruption Commission Act 2009 (MACC Act) within Islamic financial institutions in Malaysia, particularly Islamic banks. This study explores how strict corporate liability requirements influence Islamic corporate governance practices operating under a dual governance framework that integrates conventional regulatory expectations with Shariah compliance principles. This research adopts a qualitative approach based on semi-structured interviews conducted with senior compliance officers and Shariah governance experts within Malaysian Islamic financial institutions. This study involved participants from multiple Islamic banking institutions selected through purposive sampling based on their expertise in governance, compliance and Shariah oversight. The analysis evaluates institutional responses to Section 17A, mapping governance practices against the T.R.U.S.T principles (top-level commitment, risk assessment, undertake control measures, systematic review and training and communication). Interview data were analysed using thematic analysis involving coding, categorisation and interpretation of recurring governance and compliance themes. This study assesses operational adaptations, governance integration mechanisms and compliance challenges arising from regulatory requirements. Secondary sources, including regulatory guidelines, institutional reports and governance frameworks, were triangulated with interview findings to strengthen analytical validity and consistency. The findings of this study reveal that Section 17A has driven significant institutional reforms, including the establishment of specialised integrity and governance units, adoption of international standards such as ISO 37001 and strengthening of internal anti-corruption frameworks. However, operational challenges emerged because of extensive due diligence requirements, documentation burdens and third-party risk management processes, which contributed to procedural delays. Cultural resistance linked to trust-based operational traditions further highlighted the need for continuous training and internal communication. Effective harmonisation between regulatory compliance and Shariah governance was facilitated through joint supervisory mechanisms involving compliance and Shariah committees. Respondents also identified the need for sector-specific regulatory guidance, enhanced inter-agency coordination and specialised skills development, particularly in forensic auditing and digital compliance tools. This study contributes to the literature by analysing the integration of anti-corruption corporate liability provisions within the unique dual governance structure of Islamic financial institutions. This study provides practical insights into aligning regulatory compliance with Shariah ethical values and offers policy recommendations to strengthen governance frameworks, thereby supporting sustainable and ethically grounded governance practices in Malaysia's Islamic banking sector

This paper examines the impact of ESG commitment on banks' default risk in emerging and developing countries. Using a panel dataset comprising 157 banks from 28 countries over the period 2016-2022 and the Two-Step Generalized Method of Moments (2-Step GMM), it reveals that banks' ESG commitment reduces banks' probability of default (PD). Islamic banks also matter for ESG commitments, where Islamic banks have a higher probability of default than conventional banks while committing to the governance pillar. The findings of the study imply that financial authorities and banking institutions in emerging and developing countries need to spur banks' ESG commitment. However, it must be carefully implemented in Islamic banks, considering that it likely increases Islamic banks' PD. The study contributes to the empirical research concerning the nexus between ESG commitment and banks' default by extending the measurement of the probability of default and delving deep into investigating its relation to Islamic banks.

This paper proposes the Falah Development Index (FalahDI) as a multidimensional framework for measuring societal prosperity within the ethical paradigm of Islamic economics. The index seeks to address the limitations of conventional development indicators such as Gross Domestic Product (GDP), which focus primarily on economic output while overlooking ethical, social, and spiritual dimensions of human well-being. The study adopts a conceptual research approach based on normative analysis of Islamic economic principles and contemporary development literature. Drawing on the objectives of maqasid al-Shariah, the paper develops a multidimensional index framework integrating economic justice, social welfare, financial inclusion, environmental stewardship, governance integrity, and spiritual development. The proposed model combines conventional socio-economic indicators with Islamic-specific measures related to social finance institutions. The study presents the conceptual structure and measurement framework of the FalahDI, demonstrating how Islamic ethical principles can be operationalized into measurable development indicators. The framework highlights the role of Islamic social finance instruments such as zakat and waqf in promoting inclusive development and poverty alleviation. The FalahDI provides policymakers with a holistic tool for assessing development outcomes and designing policies that integrate economic performance with social justice, ethical governance, and sustainable development. This study contributes to the literature by proposing an integrated Islamic framework for development measurement that bridges ethical principles and empirical evaluation, offering an alternative paradigm for assessing societal prosperity.