Introduction

The SAC has set out certain benchmarks to classify securities of a company listed on Bursa Malaysia as Shariah compliant. Cinema business is among the activities which are analysed by the SAC. For cinema business, the benchmark which has been determined by the SAC previously to measure the contribution of mixed activities is five per cent based on sadd zari`ah (i.e. to prevent the access that can lead to bad practice since there is negative image associated with cinema).4 However, the issue of benchmark was discussed again in the SAC meeting to ensure whether cinema business can be equated with other activities which are clearly prohibited by Syara’ such as riba (interest-based companies such as conventional banks), gambling, liquor and pork which are classified under the five per cent benchmark.

Resolution

The SAC at its 151st meeting on 26 September 2013 updated the resolution on the benchmark for cinema business from five per cent benchmark to 20 per cent benchmark. The SAC resolved that it is not suitable to equate cinema business with other activities which are clearly prohibited by Syara’ such as riba (interest-based companies such as conventional banks), gambling, liquor and pork which are classified under the five per cent benchmark.

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