Shariah Non-Compliant List

The Shariah Non-Compliant List encompasses activities, industries, and practices that violate Islamic principles. The list includes :

1. Alcohol
2. Gambling
3. Pornography
4. Tobacco and dangerous drugs
5. Entertainment related companies - those proven to engage specifically in Non- Shariah compliant activities such as karaoke lounges serving alcohol, film production houses producing mainly illicit movies, cinemas that typically screen entertainment-related movies.
6. Pork and its by-products
7. Food items that are prohibited under the teaching of Islam such as frogs, snakes, and crocodiles
8. Shariah non-compliant massage parlours, gymnasium and salon that allow treatment from the opposite gender or provide services for both gender in one place.
9. Beauty salon that provides services that are prohibited under the teaching of Islamic such as eyebrow plucking, trimming, shaping, shaving and bleaching or tattooing which can change the original feature of body parts.
10. Musical instruments such as guitar, piano and the other instruments in the same category.
11. Prostitution
12. Interest-based lending, including credit sales with interest charges
13. Conventional insurance and unit trust agencies
14. Production and distribution of idols, statues, and materials and place for worshipping other than Allah including items that are related to non-Islamic rituals.
15. Production and distribution of figurines and statuettes in human form.

For restaurants, a halal certificate from JAKIM is preferred but not required. Facilities can be extended to restaurants not serving pork and alcohol.

In determining the Shariah status of unlisted MSME, the contribution of Shariah non- compliant activities to the revenue and profit before taxation of the MSME should be computed and compared against the relevant business activity benchmarks as follows:

1. The contribution of the Shariah non-compliant businesses/activities to the revenue or profit before taxation of the MSME must be less than 5% :
   • Conventional banking and lending;
   • Conventional insurance;
   • Gambling;
   • Liquor and liquor-related activities;
   • Pork and pork-related activities;
   • Non-halal food and beverages;
   • Shariah non-compliant entertainment;
   • Tobacco and tobacco-related activities;
   • Interest income from conventional accounts and instruments (including interest income awarded arising from a court judgment or arbitrator);
   • Dividends from Shariah non-compliant investments; and
   • Other activities deemed non-compliant according to Shariah principles as determined by the SAC.
2. The contribution of Shariah non-compliant businesses/activities to the revenue or profit before taxation of the MSME must be less than 20%:
   • Rental received from Shariah non-compliant activities; and
   • Other activities deemed non-compliant according to Shariah principles as determined by the SAC.

Last Update: 10 Oct 2024