Role of the Central Bank in implementation of Value-Based Islamic Banking and Reporting in Bahrain – Exploring the challenges

This paper aims to explore the role of the Central Bank of Bahrain (CBB) in the implementation of Value-Based Islamic Banking (VBIB) and Reporting in Bahrain and explore the related challenges and provides suggestions that how the central bank can encourage the Islamic banks to align their operations for making a positive impact in society. The study employs a qualitative approach to understand the role of CBB in such implementation in Bahrain. The findings reveal that based on Islamic principles and Maqasid al-Shari’ah, CBB is yet to develop a strategy paper and framework for the value-based Islamic banking and reporting for the Islamic banking practices towards the well-being of the society and social objectives. As there has been very little written on value-based Islamic banking (VBIB) and reporting in Bahrain. Therefore, the study also adds value to the current Islamic finance literature and identifies the need for reporting standards to improve the VBIB practice in Bahrain in the future

The Measurement of Islamic Unit Trust Investment Decision in Malaysia: An Exploratory Factor Analysis

The objective of this study is to develop the constructs in Islamic Unit Trust Investment Decision (IUTID) and examine its determinants. The determinants of Islamic Unit Trust Investment Decision are Islamic Financial Literacy (IFL), Information Sources (IS), Investment Risk (IR), Religiosity (RE) and Product Knowledge (PK). The measurement developed is based on the literature review and has been validated by the construct's experts, and among Islamic Unit Trust Investors. The validity and reliability test have tested to all the constructs. The data have been analyzing using SPSS. Results of the analysis show that Islamic unit trust investment decision can be measured using ten (10) items of investment selection criteria. The others determinants such as Islamic financial literacy construct consists of seven (7) items, information sources construct consists of ten (10) items, investment risk consists of eight (8) items, religiosity consists of eight (8) items and product knowledge consists of seven (7) items. The variance of the construct shows that information sources have the highest variance followed by investment risk, Islamic financial literacy, religiosity and product knowledge. These instruments can be used by unit trust companies, the authorities of Islamic unit trust (FIMM, SC, BNM) and other banking's product to understand the behavior of their clients and later, can implement it to the expected new customers

Information sources and investment decision among Malaysian investors: Clarifying the role of gender and product knowledge

This study explore the moderation effect of gender and product knowledge (PK) on the relationship between information sources (IS) and Islamic unit trust investment decision (IUTID). Muslim investors in Malaysia was chosen as the respondents for this study. The relationship between the variable was tested using Partial Least Square Structural Equation Modelling (PLS-SEM). Our results show that both variables, gender and product knowledge moderate the relationship between information sources and Islamic unit trust investment decision. The result indicate that information sources strongly influence Islamic unit trust investment decision when the Muslim investors have low product knowledge. In addition, the finding also reveal that information sources strongly influence Islamic unit trust investment decision more for female investors than male investors

Workplaces Spirituality Towards Leadership Effectiveness

In Malaysia, the research about workplace spirituality towards leadership effectiveness is rarely done. The workplace spirituality indicates the meaningful work, sense of community and alignment of values. The purpose of this study is to determine the relationship between workplace spirituality towards leadership effectiveness. There were three hypotheses that had been examined; meaningful works, sense of community and alignment of values. The research has been conducted to the volunteers at Civil Defense, Batu Pahat. This research has used the quantitative approach where the questionnaire has been distributed to 36 volunteers at Civil defense of Batu Pahat, Johor. Data has been collected has been analyzed using Statistical Package for Social Science (SPSS) version 24.0. Based on the finding, there has been a significant relationship between workplaces spirituality and leadership effectiveness.  The workplace spirituality has given a positive effect on the leadership effectiveness in Civil Defense of Batu Pahat, Johor. The data has been collected can helps civil defense and also the leader itself

Analisis Efektivitas Bantuan Orphan Kafala Baitulmal Muamalat Terhadap Pembangunan Sosial Ekonomi Anak Yatim di Aceh

Aqad kafala is one of the popular forms of aqad in the empowerment of orphans being implemented today. This aqad has been implemented by OIC and IDB in the empowerment of orphans affected by conflict and tsunami in Aceh. The implementation of Aqad kafala is in the form of guaranteeing the fulfillment of the daily social and economic needs of orphans. The distribution of aid is carried out by cooperating with local NGOs, namely Baitulmal Muamalat, Rumah Zakat, and PKPU. This assistance has been started since 2006 until the end of 2022 with the number of orphans reaching 4100 orphans. The objective of this study is to analyze the effectiveness of the distribution of Orphan Kafala-OIC Alliance Aid to the development of the social and economic life of Aceh orphans. This study is using a qualitative research method. The data has been collected from the orphans who are being under the responsibility of Baitulmal Muamalat Indonesia. The data collection technique was through a questionnaire study. The results of this study showed that the kafala assistance given to the orphans in Aceh has provided a positive effect although not significant for the social and economic development of orphan families in Aceh

New evidence on fund performance in extreme events

Purpose: The purpose of this paper is to compare the return performance and persistence of ethical and conventional mutual funds during two extreme events, the Asian and the global financial crises under Shariah constraints. Design/methodology/approach: The overall sample comprises of 129 Islamic mutual funds (IMFs) and 350 conventional mutual funds (CMFs) in Malaysia, and the average monthly data cover two periods of market cycles, before and during a financial crisis. The net of all expenses data is obtained from the Morningstar Database. This study employs various market risk-adjusted performance measures (ratios) to estimate the funds’ overall performance during the crises, and then it uses CAPM model to estimate the parameters via panel data approach. Moreover, paper employs the two persistence performance measures on IMFs and CMFs through contingency tables. It tests for the performance persistence effects for IMFs, CMFs using repeat winner and the cross-product ratio (CPR) tests proposed by Malkiel (1995) and Brown and Goetzmann (1995), respectively. Findings: The main findings of the paper are: on average, both funds IMF and the CMF outperform the market return during the entire sample period; none of the funds is better than the “others” during the financial crises and the pre-crisis periods; the ethical fund – IMF outperforms the CMF over the study period. This outcome also indicates that ethical funds are more persistent especially during and the pre-crisis AFC and the GFC periods. Research limitations/implications: The finding of this study is limited to only Malaysian data because the objective was to guideline investors and market players in Malaysia to prefer investing in Islamic ethical funds to diversify their investment portfolio. Practical implications: Cautions to use existing ratio measures and CAPM model rather persistence measures may be used with existing methodologies in light of extreme events which influenced investor decision making for better returns at lower risks. Social implications: A class of ethical funds consists of religious sustainable, socially responsible and impact-investing (SRI) funds but Shariah implications of halal investment must be observed to avoid prohibited practices within the class of SRI funds. Originality/value: The work done in this paper are original in the sense that the authors employed various ratios to measure fund performance in conjunction with CAPM model and then tested for two persistence performance measures; the repeat winner and CPR tests. © 2019, Emerald Publishing Limited

Building student character through contextual learning approach : Islamic education novice teachers’ experiences

This study aims to examine how contextual learning approach influences the character development of Malaysian students. It reflects on how contextual learning activities applied by Islamic Education novice teachers can build student character and personality. This is a qualitative research underpinned by a constructivist learning theory as theoretical and analytical framework. A total of 10 Islamic Education novice teachers participated in this study. Data were collected through semi -structured individual interviews and classroom observations. Thematic analysis was utilized to analyse and present the research findings. The findings offer some significant insights into how contextual learning activities applied by the participants have directly and indirectly developed student character, values, personality and behaviour. The findings of this study reveal that contextual learning contributes to the building of student character. The findings of the study also provide educators, especially novice teachers, better understanding of excellent skills, such as contextual learning, more effectively. These skills are critical in order to be able to produce a competitive new generation in the face of life demands, in line with rapid development of Information and Communication Technology (ICT). Contextual learning when incorporated into learning will expose teachers to authentic experiences in the classroom, playing their role in developing student personality and character, together with academic performance