The Role of Good Corporate in Enhancing the Resilience and Performance of the Islamic Economy Amid Global Economic Uncertanty : A Focus on Malaysia and Indonesia

Fanisa Suseno; Baginda Parsaulian

doi:10.30983/iciefs.v3i1.883

Authors

Fanisa Suseno Universitas Islam Negeri Sjech M. Djamil Djambek Bukittinggi
Baginda Parsaulian Universitas Islam Negeri Sjech M. Djamil Djambek Bukittinggi

DOI:

https://doi.org/10.30983/iciefs.v3i1.883

Keywords:

GCG, Global Economic Uncertanty, Trade War, Halal Industry

Abstract

This study aims to analyze the role of Good Corporate Governance (GCG) in enhancing the resilience and performance of the Islamic economy amid global economic uncertainty, with a focus on Malaysia and Indonesia. In the context of an increasingly unstable global economy, particularly with the impacts of trade wars and market volatility, the application of strong GCG principles becomes crucial for the sustainability and development of the Islamic economic sector. This research employs the literature review method by analyzing various relevant studies on GCG, Islamic economics, and the challenges and opportunities faced by Malaysia and Indonesia. The findings indicate that effective implementation of GCG can strengthen the stability of the Islamic economy through better risk management, increased transparency and accountability, and enhanced investor confidence. In the context of Indonesia and Malaysia, the two countries with the largest Muslim populations in the world, GCG plays a significant role in driving the growth of the halal industry and reinforcing the Islamic financial sector, which serves as a mitigation tool in facing global economic uncertainty. This study is expected to provide new insights into the importance of GCG in building the resilience of the Islamic economy in Southeast Asia, particularly in Malaysia and Indonesia

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