An Exploratory Study of Shari'ah Issues in the Application of Tabarru' for Takaful

Takaful industry has witnessed an exponential growth across the world over the last decade, demonstrating an enormous demand for takaful products ranging from short-term general takaful to long-term family takaful. It has attracted considerable attention not only from the Muslim countries, but also from the non-Muslim countries. Despite its promising growth, however, the takaful industry continues to face numerous contentious Shari'ah issues. The present study aims to discuss some of the most fundamental Shari'ah issues in takaful, namely the issue of applying tabarru' concept in takaful and the issue of underwriting surplus of tabarru' fund

Complying with the requirements for issuance of SRI sukuk: the case of Khazanah’s Sukuk Ihsan

Purpose – The purpose of this study is to provide a critical review on how the Khazanah’s Sukuk Ihsan was structured in compliance with the requirements for issuance of Sustainable and Responsible Investment (SRI) sukuk set by the Securities Commission (SC) Malaysia. Design/methodology/approach – To explain the structures and features of the Sukuk Ihsan, this study extracted important information from the sukuk’s Principle Terms and Conditions and Information Memorandum and presented them in a simple and easy-to-understand way. Next, this study refers to Part D: Requirement for Issuance, Offering or Invitation to Subscribe or Purchase Sustainable and Responsible Investment Sukuk of the SC’s Guidelines on Sukuk (revised edition: 28 August 2014) to assess the compliance of the sukuk in terms of eligibility of SRI sukuk issuer and SRI projects, use of proceeds, reporting and disclosure and independent assessment on SRI programmes. In addition, this study then compares the requirements stated in the SC’s SRI Sukuk Framework with the International Capital Market Association’s Green Bond Principles (GBP) and the USA’s Social Impact Bond (SIB) Act 2014. Findings – The present study finds that the definition of eligible SRI sukuk issuer in the Guidelines on Sukuk seems to be more stringent compared to the one provided in the GBP and the US’ SIB Act. Nevertheless, the SRI Sukuk Framework provides a more comprehensive yet precise list of eligible SRI projects, covering both environmental and social aspects, compared to the GBP (which only focuses on broad categories of environmental projects) and also the USA’s SIB Act (explicitly outlines 13 social projects which are aligned with the US Federal Government’s agenda in tackling social illnesses). Indeed, the main difference between the eligible SRI sukuk projects and its conventional counterparts lies in its compliance to Shariah principles. It is also observed that a significant emphasis has been given on SRI legislations in ensuring proper reporting and disclosure provided to the SRI sukuk stakeholders together with critical evaluation on the impacts of SRI programmes provided by an independent assessor. Practical implications – This paper contributes towards enriching the literature on the Islamic capital market, particularly on the integration between sukuk and social impacts investing. This paper was intended to highlight the important requirements in issuing SRI sukuk to various stakeholders of the Islamic capital market. Originality/value – The authors hope to shed some lights on the unique features and structural applications of SRI sukuk and its importance in becoming an effective instrument to raise funds for social agenda of a country by providing a real and practical example

Kehendak shariah dalam akta perkhidmatan kewangan Islam 2013 (AKTA 759): satu tinjauan

Akta Perkhidmatan Kewangan Islam 2013 (Akta 759) adalah merupakan Akta terkini yang diluluskan oleh Parlimen Malaysia untuk mengawalselia sektor perniagaan kewangan Islam di Malaysia. Akta ini mula berkuatkuasa pada 30 Jun 2013 dan telah memansuhkan Akta Bank Islam 1983 (Akta 276) dan Akta Takaful 1984 (Akta 312). Akta ini mengandungi peruntukan-peruntukan bagi pengawalseliaan dan penyeliaan institusi kewangan Islam, sistem pembayaran dan entiti berkaitan yang lain dan pengawasan pasaran wang Islam dan pasaran pertukaran asing Islam untuk mengalakkan kestabilan kewangan dan pematuhan Shariah dan bagi perkara yang berhubungan, berbangkit atau bersampingan dengannya. Objektif utama Akta ini adalah untuk menggalakkan kestabilan kewangan dan pematuhan Shariah. Dalam usaha memastikan aspek kepatuhan Shariah, Akta ini memasukkan peruntukan-peruntukan khusus berkaitan dengan kehendak Shariah untuk dipatuhi sepenuhnya oleh institusi-institusi kewangan Islam. Artikel ini akan meninjau dan membincangkan peruntukan-peruntukan berkaitan serta menjelaskan juga kesan-kesan sekiranya berlaku kemungkiran oleh mana-mana pihak dalam mematuhi peruntukan-peruntukan terbabit. Katakunci: Akta Perkhidmatan Kewangan Islam; Kepatuhan Shariah; Tadbir Urus Shariah, institusi Kewangan Islam, Undang-undang Islam

الترجمة الانجليزية للمصطلحات المالية الواردة في صحيح البخاري: دراسة نقدية لإسهامات الدكتور محسن خان = English translation of financial terminologies in Ṣaḥīḥ Al-Bukhārī: critical study of Mushin Khan’s work

ملخص يعتبر كتاب صحيح البخاري من أرفع الكتب منزلةً لدى المسلمين بعد القرآن الكريم. إلى يومنا هذا، توجد ترجمة واحدة باللغة الإنجليزية للكتاب التي قام بها الدكتور محمد محسن خان. هذه الدراسة تهدف إلى النظر في مدى صحة ترجمة الأجزاء المختارة من خلال دراسة البحث النوعي والمقارن. تم تقسيم الدارسة إلى ٦ أجزاء: أولاً التعريف بالجامع الصحيح، ومختصره، وثانياً: التعريف ب تجمة التجريد الصريح ومؤلفه، وثالثاً: بيان التجمة الخاطئة للمصطلحات، ورابعاً: بيان التجمة غير الدقيقة للمصطلحات، وخامساً: بيان التعريف غير الدقيق للمصطلحات، وسادساً: بيان المصطلحات غير المتجمة. في نهاية البحث، يقتح الباحث أن يتم تشكيل لجنة رفيعة المستوى من أجل إعادة النظر فيالتجمة المطبوعة بناء على ما ورد في ترجمات المراجع الفقهية التي صدرت في السنوات ____________________________________________________ Ṣaḥīḥ al-Bukhārī deemed to be the most respectful book by Muslims after Quran. As of date, it has only one complete translation in English which was done by Dr. Muhammad Mushin Khan. This study aimed to look into accuracy of the translation of select sections of the book through qualitative and comparative research. The study was divided into six sections: firstly, introduction to Al-JāmiꜤ al-Ṣaḥīḥ and its author, secondly introduction to translation of al-Tajrīd al-Ṣarīḥ and its author, thirdly terms which were wrongly translated, fourthly terms which were not translated accurately, fifthly terms which were not defined accurately, and sixthly terms which were not translated at all. Upon the conclusion, the researcher recommends forming a high-level committee to re-look into the translation based on the translations of Fiqh references which have been issued in the recent years

A Conceptual Foundation for Blockchain Development: The Contribution of Ibn Khaldun

Blockchain is a revolutionary technology that has provided the potential answers for many real-world problems in this digital era. Blockchain is a topic of immense interest in various industries and academia in terms of discovering technology and identifying challenges and innovative practical implementation for the industry. This study deliberates the challenges that are of major concern in designing a Blockchain platform. In this context, the problems such as inefficient technology design, the criminal connection, scalability, energy consumption, privacy, regulation, security, lack of adequate skill sets, energy consumption and public perception are uncovered to be significant. Due to such challenges, the blockchain technologies have emitted a negative impression due to its inabilities to be effectively implemented while, at the same time, its advantages could not be fully reaped by its stakeholders. The aim of this study, hence, is to evaluate the blockchain initiatives and development in light of the eight foundations for economic development as propounded by Ibn Khaldun. Using Ibn Khaldun’s theory, each challenge is discussed and analyzed to find the answers and solutions for addressing and overcoming the afore-mentioned challenges

The appointment of members to the shariah advisory council of central bank of Malaysia: Legal issues

In Malaysia, the appointment of members to the Shariah Advisory Council (SAC) of the Central Bank of Malaysia (CBM) is prescribed by the Central Bank of Malaysia Act 2009 (Act 701).The Act stipulates the provisions pertaining to the eligible persons to be appointed to the SAC, procedures, terms and conditions of appointment and also remuneration and allowances for the members of the SAC. In this regard, the question arises whether the prescribed provisions are sufficient to regulate the appointment of members to the SAC and free from any shortcomings. Hence, this study sought to analyse the existing legislations governing the appointment of members to the SAC and to analyse the legal issues arising from the existing legis lations. By using legal research methodology, this article analysed the entire provisions dealing with the appointment matter. Based on the data collected from statutes passed by the Parliament of and Malaysia published materials, the analytical method was used by scrutinizing the related provisions of the law pertaining to the appointment of members to the SAC. This study found that, several loopholes exist in the statutory requirement of the existing law which needs to be addressed by the respective authoritative body in order to avoid any legal conflict in the future. Hence this study is significant in order to strengthen the existing legislation governing the SAC especially related the appointment proces

Hijabophobia: A Closed Eye Challenge towards Muslim Friendly Hospitality Services in Malaysia

This research analyses the existence of hijabophobia in relation to Muslim friendly hospitality services in Malaysia. By looking into the current practices of hospitality industry (specifically by looking into customer services of hotels) in Malaysia, this research investigates: (i) what is meant by hijabophobia? (ii) nature of hijabophobia under the purview of Malaysian laws; (iii) the impacts of hijabophobia in the employment and customer services; and (iv) the countermeasures to eliminate hijabophobia in the hospitality industry in Malaysia. This exploratory research utilises the doctrinal legal methods and the collected real experiences that are obtained through qualitative interviews. Based on the researchers’ preliminary investigation, there is existence of hijabophobia in the customer services of hotels and their employment in Malaysia. Such existence of hijabophobia is promoted through the hotels’ policies; and sometimes under unwritten but well acceptable standard of operations and practices. Unfortunately, since this research is carried out only based on preliminary findings, the researchers are unable to provide the frequency of occurrences for the hijabophobic practices in their customer services or employments. Here, the researchers suggest for an in-depth investigation on the policies and standard of operation or practices of each and every hotel in Malaysia. This is also necessary to evaluate the extent of Muslim friendly hospitality services are applied in these hotels

Centered-gap and aligned-gap multiple split ring resonator for bio-sensing application

In general, a classical Split Ring Resonator (SRR) structure exhibits high Q-factor based on deeper and sharper transmission dips at resonance as well as produce high electric field density at the gaps. It is believed, by introducing more gaps, a strong and localized E-field will be obtained in the area between the split gaps. Based on these features, three types of rectangular multiple Split Ring Resonators (SRRs) were proposed to resonate in the frequency range of 3-7 GHz and simulated using Computer Simulation Technology (CST) Microwave Studio to determine the transmission characteristics and the resonance frequency. A Nicolson-Ross-Weir (NRW) technique is used to retrieve the effective parameters from the resultant S-parameter. It is shown that the resonance frequency of investigated structures falls in a frequency region in which the real part of permeability is negative. Later, the simulated results were investigated and the performances as well as the size of each unit cell itself were compared. Simulation for three different type of dielectric samples were also presented to demonstrate that the proposed structure may be well suited for bio-sensing

Analysis on the development of legislations governing Shariah advisory council of Bank Negara Malaysia

The establishment of Shariah Advisory Council under the aegis of Bank Negara Malaysia in 1997 was the best solution taken by the Government to harmonize the issue of divergence of Shariah opinions among the Shariah committees established by the Islamic banks and takaful operators. Since then, the Shariah Advisory Council has been regulated by several statutes which provide the legal framework of such a Council. Using a historical approach, this article highlights the development of the legal framework of Shariah Advisory Council since its establishment. Comparative analysis method is used to compare the existing legislation to the previous one. Finally, the article found that the Central Bank of Malaysia Act 2009 (Act 701) provides a comprehensive legal framework to regulate Shariah Advisory Council compared to the previous statutes

Alternative commercial and operational solutions in Islamic banking: the contribution of Mufti Taqi Usmani

Abstract. Shari’a compliance remains one of the main features in all the products and services offered by Islamic banking institutions. Muftī Taqi Usmani (b. 1943) is a world-renowned figure in Islamic banking due to his crucial po-sition as Chairman of the Shari’ah Board (Bahrain). He has contributed to Islamic banking through his advanced writings and addressing vital issues of global interest in the industry. Using qualitative methodology, this study examines the alternative solutions that were suggested by Muftī Taqi to various financing solutions, which are deemed to be not acceptable as per the classical view of Islamic jurists. His efforts contribute immensely to providing solutions to the financing institutions. The paper divided the suggested solutions into five categories: formation of the contract, contracting parties, subject of the sale, price, and risk management. There were more than 15 solutions suggested by Muftī Taqi, and two-third of them were workable, and the rest were challenging against the original conventional solutions. Future studies could expand their scope into other areas of contributions as well