AR-RAHNU: ISU DAN PENYELESAIAN SEMASA: AR-RAHNU: CURRENT ISSUES AND SOLUTIONS

Ar-Rahnu merupakan satu konsep pajak gadai yang berteraskan prinsip-prinsip Sharī‘ah. Berlainan dengan amalan pajak gadai konvensional (PGK), Ar-Rahnu menitikberatkan amalan pajak gadai yang bebas daripada elemen-elemen yang dilarang oleh Sharī‘ah seperti ribÄ dan gharar. Berdasarkan keadaan semasa di Malaysia, kajian ini ditulis untuk menghayati isu-isu penting berkaitan dengan amalan Ar-Rahnu dan penyelesaian dari aspek perbincangan secara FiqhÄ« dan kesesuaian dengan perundangan yang wujud di Malaysia. Kajian ini ditulis sebagai tambahan kepada literatur yang sedia wujud berkaitan dengan Ar-Rahnu yang didapati masih lagi sedikit. Dengan menggunakan kaedah kualitatif dan keadah analisa secara perbandingan, pengkaji-pengkaji mendapati Ar-Rahnu masih boleh diamalkan di Malaysia walaupun tanpa kewujudan undang-undang khusus. Kaedah pengharmonian di antara undang-undang sivil dan Sharī‘ah masih diperlukan dalam penghayatan amalan Ar-Rahnu bagi memastikan keberkesanan amalan ini di kalangan anggota masyarakat.  Abstract in English: Ar-Rahnu is a concept of pawnbroking that based on the principles of Sharī‘ah. Contrary to conventional pawnbroking (PGK) practices, Ar-Rahnu emphasizes pawnbroking practices free of prohibited elements by Sharī‘ah, such as ribā and gharar. Based on the current situation in Malaysia, this study was written to address critical issues related to the practice of Ar-Rahnu, the provided solutions from the aspects of Fiqhī discussion, and the relevance of the existing legislation in Malaysia. This study was written in addition to the existing literature relating to Ar-Rahnu, which is still relatively scarce. Using qualitative, comparative analysis methods and observation from the practices in the industry, this research found that Ar-Rahnu can still be practiced in Malaysia even without specific laws. The method of harmonization between civil and Sharī‘ah laws is still needed to appreciate of Ar-Rahnu’s practices in order to ensure the effectiveness of this practice among the members of the society. Abstract in Bahasa Malaysia: Ar-Rahnu merupakan satu konsep pajak gadai yang berteraskan prinsip-prinsip Sharī‘ah. Berlainan dengan amalan pajak gadai konvensional (PGK), Ar-Rahnu menitikberatkan amalan pajak gadai yang bebas daripada elemen-elemen yang dilarang oleh Sharī‘ah seperti ribā dan gharar. Berdasarkan keadaan semasa di Malaysia, kajian ini ditulis untuk menghayati isu-isu penting berkaitan dengan amalan Ar-Rahnu dan penyelesaian dari aspek perbincangan secara Fiqhī dan kesesuaian dengan perundangan yang wujud di Malaysia. Kajian ini ditulis sebagai tambahan kepada literatur yang sedia wujud berkaitan dengan Ar-Rahnu yang didapati masih lagi sedikit. Dengan menggunakan kaedah kualitatif, kaedah analisis secara perbandingan, dan pemerhatian daripada amalan-amalan dalam industri, kajian ini mendapati Ar-Rahnu masih boleh diamalkan di Malaysia walaupun tanpa kewujudan undang-undang khusus. Kaedah pengharmonian di antara undang-undang sivil dan Sharī‘ah masih diperlukan dalam penghayatan amalan Ar-Rahnu bagi memastikan keberkesanan amalan ini di kalangan anggota masyarakat.

Waqf institutions in Malaysia: appreciation of Wasaṭiyyah approach in internal control as a part of good governance

Good governance is important for the sustainability of Waqf institutions in Malaysia. As a part of good governance, the evaluation of internal control and its components are essential to be considered. While reaching the Maqāṣid al-Sharī‘ah (the objectives of the Lawgiver), the appreciation of Wasaṭiyyah approach can be utilised in the evaluation of internal control in the Waqf institutions. Based on qualitative research method, this research explores the internal control and its components in Waqf institutions. The conceptual study on Wasaṭiyyah approach is provided in brief, and the appreciation of Wasaṭiyyah approach in relation to internal control and its components are provided. It is found that Wasaṭiyyah approach can be used in the evaluation of internal control of Waqf institutions in improving their good governance. ********************************************************* Tadbir urus yang baik adalah penting untuk kelestarian institusi Waqfdi Malaysia. Sebagai sebahagian daripada tadbir urus yang baik, penilaian kawalan dalaman dan komponennya penting untuk dipertimbangkan. Bagi mencapai Maqāsid al-Sharī’ah, penghargaan terhadap pendekatan Wasaṭiyyahseharusnya dihayati dalam penilaian kawalan dalaman dalam institusi Waqf. Berdasarkan kaedah penyelidikan kualitatif, penyelidikan ini menghuraikan kawalan dalaman dan komponennya dalam institusi Waqf. Kajian konseptual mengenai pendekatan Wasaṭiyyah ini disediakan secara ringkas, dan penghargaan terhadap pendekatan Wasaṭiyyah berkaitan dengan pengendalian secara kawalan dalaman dan komponennya adalah disediakan. Adalah didapati bahawa pendekatan Wasaṭiyyah dalam penilaian kawalan dalaman institusi Waqf dapat meningkatkan tadbir urus institusi Waqf secara baik dan berkesan

Settlement of Islamic finance disputes in the United Arab Emirates

The concept of Islamic finance was considered as a wishful dream almost three decades ago. Today, more than 300 Islamic financial institutions are operating around the globe. By 2020, Islamic finance assets are estimated to reach $3.2 trillion in value. Their clientele are not confined to citizens of Muslim countries only, but are spread over Europe, the United States of America and the Far East. Muslims now have the opportunity to invest their financial resources in accordance with the ethics and philosophy of Islam. At the same time, Islamic finance offers an alternative for the customers of conventional finance. The first thorough studies devoted to the establishment of Islamic financial institutions (referred to hereafter as ‘Islamic Banks’) appeared in the 1940s. Although Muslim owned banks were established as early as in the 1920s and 1930s, they adopted similar practices to conventional banks. In the 1940s and 1950s, several experiments with small Islamic Banks were undertaken in Malaysia and Pakistan. The first great success was the establishment of an Islamic Bank in the Egyptian village of Mit Ghamr, in 1963. Other successes include the establishment of the Inter-Governmental Islamic Development Bank in Jeddah in 1975 and a number of Islamic Banks, such as the Dubai Islamic Bank, the Kuwait Finance House and the Bahrain Islamic Bank in the 1970s and 1980s. In South East Asia, Malaysia became the first country that introduced Islamic finance with the establishment of Bank Islam Malaysia Bhd. in 1983. Commercial banks have also realized the potential of this new field, and a number of major worldwide institutions have adopted Islamic banking and finance as a significant mechanism for diversified growth

Detecting the trend of mediation services in Malaysia: Pre- and Post-Covid-19 pandemic

Mediation services are frequently referred to in Malaysia. Even though, there is no uniformity in the establishment of institutions that offering such mediation services, they are placed as favorable dispute resolution mechanism to reduce cost, time effective, and to provide a win-win resolution. The incident of COVID-19 pandemic has a huge influence to the development of mediation services in Malaysia. Looking closely to banking and finance sector in Malaysia, this research is done to examine the trend of mediation services during the pre- and post-COVID-19 pandemic. By adopting qualitative methodology, content analysis and observational approach, the data is collected from a survey done by the authors to the institutions that are offering mediation services to the banking and finance sector in Malaysia. This research is restricted to observe the trend of mediation services per se, even though the related institutions may have other dispute resolution services such as arbitration and adjudication. The findings indicate a significant change in mediation services as offered by the related institutions. This is especially related to the conduct of mediation session, procedures, and online platforms are highly depended by the related institutions to continue the mediation process. Majority mediation sessions are put at halt during the COVID-19 pandemic, with a limited degree for operation. The related institutions are also following and strictly observing the requirement of social distancing, wearing masks during any encounter with their clients, and providing hand sanitizers in their premises. Moreover, the dependency on online platforms should be encouraged among the related institutions in order to resolve the existing dispute among the parties of mediation

Customers' perceptions on the dispute resolution clauses in Islamic Finance contracts in Malaysia

This empirical legal study examines the perceptions of retail customers on the dispute resolution clauses contained in the governing law and jurisdiction clauses in Islamic finance contracts in Malaysia. Since Islamic financial institutions and their customers are more likely to opt for litigation in the event of a dispute, this study explores ways of providing for unambiguous dispute resolution clauses that are well understood by the parties. Such clauses are expected to incorporate effective dispute resolution processes such as mediation and arbitration through a multi-tiered mechanism. Primary data collected through survey questionnaire administered on 160 Islamic bank customers is analysed using both factor analysis and structural equation modelling via the IBM SPSS version 20 software. The empirical legal study reveals that there is a statistically significant difference among two major groups of customers based on their legal understanding of the dispute resolution clauses in Islamic finance contracts. The group that sought further clarification has a statistically significant path from provision of legal clauses to legal understanding and indirectly to their choice of dispute resolution channels. It therefore follows that there is a need to provide for more effective clauses that allow for mediation and arbitration in the governing law and jurisdiction clauses of Islamic finance contracts in Malaysia. Such alternative dispute resolution processes can be structured in a multi-tiered manner that will only allow for litigation as a last resort. This will allow Islamic financial institutions and their customers to make informed decisions about the best option for effective dispute management

FAITH-BASED MEDIATION: A COMPARATIVE PERSPECTIVE ON THE APPLICATION OF SULH AND HO’OPONOPONO

The application of mediation can be traced in many culture and tradition across the world. Closely related to the faith of the people, mediation has essential roles in resolving disputes among the members of the society. While the faith-based mediation of Ho’oponopono is famous in Hawaii, the faith-based mediation of Sulh is famous among Muslims in South East Asia. The dispute resolution strategies which are used in Ho’oponopono and Sulh are comparatively analysed in this research. The practices of Sulh are evaluated based on empirical findings collected from Pasir Mas (Kelantan, Malaysia) and Indragiri Hilir (Riau, Indonesia). Meanwhile, the qualitative findings on practices of Ho’oponopono are collected from earlier researches that utilised empirical investigations. By employing a qualitative doctrinal analysis, this research identifies similarities and differences of faith- based mediations of Sulh and Ho’oponopono. At the same time, the said faith-based mediations’ potentials and challenges are explored. Focusing on an expeditious resolution, it is found that faith-based mediations are still applied among the members of the society in Malaysia, Indonesia and Hawaii

The application of mobile banking services by Malaysian Islamic banks: an evaluation of the customers’ main concerns

The continuous advancement of financial technologies in the realm of Islamic banking and finance is influenced by the spread of banking digitalization. The digitalization of banking is undeniably related to the expansion and dependency on the use of the Internet among the customers. Instead of depending on physical location, Islamic banks nowadays have ample chances to engage and communicate with their customers through this current online banking platforms. In order to ensure their consistent follow-up with the latest digital transformation, Islamic banks must be ready to adopt the new technology, ready to shift their costs of services to the online applications, and reconsider their corporate structures. Focusing on the application of mobile banking as a prominent part of banking digitalization among Malaysian Islamic banks, it is important to consider their customers’ concerns relating to its usages. Thus, this research focuses (1) on explaining the understanding of what is considered as a mobile banking and its usages among Malaysian Islamic banks and (2) evaluating the concerns among Islamic banks’ customers relating to the use of mobile banking in their daily activities. In doing this research, the researchers apply the qualitative research approaches and content analysis of obtained data from library based research. As part of the findings, it is identified that the customers’ concerns are related to their awareness, knowledge of using the mobile banking, trust toward the safety of their personal information or transactions, and the security of the mobile banking system

The introduction of the financial ombudsman scheme as an alternative to dispute resolution in the Islamic financial services industry in Malaysia

With the enactment of the Islamic Financial Services Act 2013 (IFSA 2013) in Malaysia, the dispute resolution landscape has been transformed to reflect more on effective dispute settlement that would ensure consumer protection without prejudicing the interests of the financial service providers. The Central Bank of Malaysia, as the main regulatory body for the Islamic financial services industry in Malaysia, indicates that the Financial Mediation Bureau (FMB) is in the process of implementing the Financial Ombudsman Scheme (FOS). In analysing this statutory by-product of IFSA 2013, this paper examines the transformation of FMB as a structured statutory body in resolving Islamic finance disputes. In addition, the dispute resolution structure of FMB under the FOS is evaluated and appreciated. A comparative legal analysis is provided in a separate section by examining the structures of other financial ombudsmen as available in other jurisdictions. The examples are taken from other financial ombudsmen practices as applied in selected Commonwealth countries, i.e., Ireland, United Kingdom, and Pakistan

Managing financial stress through Islamic wealth management: an appreciation of Hifz al-Mal

Introduction: Malaysia is one of the most prosperous countries in the world in relation to the banking and finance sector. With a comprehensive legal framework that appreciates both conventional (CBF) and Islamic banking and finance (IBF), Malaysia manages to allow both sectors to grow as industries of their own. Nevertheless, financial stress among citizens, especially millennials, remains high with increasing household debts. While looking closely at the practice of Islamic wealth management in Malaysia, This research paper evaluates financial stress among Malaysians. This paper also appreciates the concept of Hifz al-Mal in practising Islamic wealth management. It is found that financial stress is real among Malaysians. Method: The main research methodology for this research is the qualitative investigation approach with an analysis of news reporting, an observation from the work field, and naturalistic interpretation. Results: The uncontrolled dependency on debts in having a luxurious lifestyle can be attributed to financial stress. Early exposure to Islamic wealth management among Malaysians may lead to a better lifestyle and debt management. By doing so, Hifz al-Mal can be achieved, and a better lifestyle can be reached. Moreover, it can reduce the dependency on debts and decrease financial stress. Conclusion: Thus, an appreciation of Hifz al-Mal should be applied in managing financial stress through Islamic wealth management. This is believed that it will be able to eliminate financial stress and freedom of debts

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