<![CDATA[Islamic banking institutions are expected to continually innovate new products to remain competitive while ensuring compliance with Shariah principles. In Malaysia, this process is governed by a legal and regulatory framework under Bank Negara Malaysia. This study aims to analyse the framework governing Islamic banking product development to assess whether it effectively facilitates product development while ensuring substantive Shariah compliance, aligning products with its maqasid `aqd (contract objectives), which ultimately realises the maqasid shariah (Shariah objectives). Adopting a qualitative doctrinal legal methodology, the study analyses primary legislation and regulatory policies and draws on literature identified through library research. The study finds that Malaysia’s framework offers legal certainty, centralised Shariah governance and clear operational guidance for product development. However, the article concludes that the existing framework is comprehensive in ensuring procedural or formal compliance but less clearly oriented towards evaluating whether products achieve the broader objectives of Shariah in substance.]]>
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