The Role of Shari’ah Advisors in Overseeing Islamic Cooperatives in Thailand: A View from Cooperatives’ Management
Keywords:
Shari’ah Advisor, Islamic Cooperative, Shari’ah Governance, Islamic Finance, ThailandAbstract
Objective: This research aims to evaluate the role of Shari’ah advisors in Islamic cooperatives in Thailand using the frameworks of Auditing Organization for Islamic Financial Institutions (AAOIFI) and Islamic Financial Services Board (IFSB).
Methodology: This qualitative research studied 13 Islamic cooperatives across six provinces, comprising five large, three medium, and five small cooperatives, through in-depth interviews with 25 key informants.
Research Findings: The study found that cooperative size significantly affects Shari’ah advisors’ structure and effectiveness. Large cooperatives have formal systems but may lack independence, medium-sized cooperatives offer flexibility but face coordination challenges, and small cooperatives have resource limitations but benefit from external advisors' neutral perspectives. Common challenges include the lack of a clear legal framework, absence of formal Shari’ah audit systems, varying compensation structures, and difficulties in integrating Shari’ah governance principles with existing cooperative governance guidelines.
Contributions: The findings can be applied to develop legal frameworks and governance guidelines suitable for Thailand's context, as well as establish operational standards for Islamic cooperatives that align with their size and available resources.
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