The Concept, Structure and Epistemological Development: Musharakah Tijariah Cross-Border Financing

Musharakah Tijariah Cross-Border Financing (“Product”) is the product to enable the Bank to undertake projects and contract cross-border financing activities or other identified business ventures on “pure” Joint Venture basis, using the underlying Islamic financing contract, structure and epistemological development that are expected to inject greater Musharakah concept, structure and epistemological development and also that is expected to inject greater prosper to the Bank’s overall performance and ultimately able to assist small time landowners in a big way through business risk sharing. This paper also provides the link of financial access for Muslim Small Medium Entrepreneurs to Islamic venture capital as alternative financing business innovation with blockchain strategies

Islamic Insurtech Conceptual Framework: A Proposal

Introduction: Insurtech refers to the use of technology innovations designed to squeeze cost and maximize efficiency from the current insurance industry model. Insurtech is a combination of the word’s “insurance” and “technology,” inspired by the term fintech i.e. financial technology. Whilst insurance company already move forward, Islamic Insurtech seems not a popular terminology. It may not have unique characteristic from stakeholder’s perspective and therefore it may only be embedded in insurtech definition. Purpose: This paper aims to explore the potential of having Islamic insurtech in the global market and analyze the opportunity to establish a conceptual framework for Islamic Insurtech. Methodology: This study uses qualitative approach based on in-depth analyzing on literature, report and website propose subject of the study. Findings: It is hoped that it will benefit the Islamic insurance or Takaful players to remain relevant in the global market. Paper Type: General Revie

E-Wallet Models: An Appraisal of Shariah Related Issues

This paper aims to evaluate the existing e-wallet business models and to provide a preliminary analysis of Sharia issues, specifically related to the relationship of the involved parties in the contract (operators, customers, and third parties). As e-wallet is also a critical enabler to increase financial inclusion among the different levels of society members (richer and poor), thus there is an increasing need to analyze the existing e-wallet models and their practices. The final aims are to preserve all parties’ rights and support the policymakers to structure e-wallet parameters that comply with Islamic law. This paper adopts qualitative research approaches, specifically content analysis and interviews. The data collection includes, among others, document reviews, interviews, and observations. The paper evaluates four e-wallet models in Malaysia and analyzes arising Sharia issues from those models. In the models, several Sharia issues can be found, which are related to the contracts used, the status of funds held by e-wallet providers, deposits in banks, and revenue generation. Findings from this paper serve as a basis for scholars and policymakers to provide guidelines for Sharia-compliant e-wallets. Tulisan ini bertujuan untuk mengevaluasi model bisnis dompet elektronik yang ada dan memberikan analisis awal tentang masalah syariah, khususnya terkait dengan hubungan pihak-pihak yang terlibat dalam kontrak (operator, pelanggan dan pihak ketiga). Karena dompet elektronik juga merupakan faktor penting untuk meningkatkan inklusi keuangan di antara berbagai tingkat anggota masyarakat (kaya dan miskin), maka ada peningkatan kebutuhan untuk menganalisis model dompet elektronik yang ada dan praktiknya. Tujuan akhirnya adalah untuk menjaga hak semua pihak dan mendukung pembuat kebijakan untuk menyusun parameter dompet elektronik yang sesuai dengan hukum Islam. Tulisan ini mengadopsi pendekatan penelitian kualitatif, khususnya analisis isi dan wawancara. Pengumpulan data meliputi telaah dokumen, wawancara, dan observasi. Tulisan ini mengevaluasi empat model dompet elektronik di Malaysia dan menganalisis masalah syariah yang muncul dari model tersebut. Ada beberapa masalah syariah yang dapat ditemukan dari model-model tersebut, yaitu terkait dengan akad yang digunakan, status dana yang dipegang oleh penyedia dompet elektronik, status simpanan di bank dan perolehan pendapatan. Temuan dari makalah ini dapat digunakan sebagai dasar bagi para sarjana dan pembuat kebijakan untuk memberikan pedoman dompet elektronik yang sesuai syariah

A Review on Product Development of Islamic Social Finance in Tijari Sector

Social finance is not new, but most low-income earners are not keen to utilize social finance products due to its association with riba (usury). Islamic social finance on the other hand offers the alternative to generate economy and create wealth, with its Shariah-compliant underlying principles. This new mechanism offers the alternative for people under the paradigm of Islamic economic system. This instrument covers the deficiency of Islamic finance, in both ijtimaie and tijari sectors. Thus, it is crucial to the stages involved in the creation of Shariah-compliant products that can meet the objectives of ijtimaie and tijari sectors. The main objective of this paper is to review the concept and paradigm of Islamic economic system and the position of Islamic social finance. It also reviews the product development and innovation of this mechanism. The methodology used for this is qualitative in nature, namely content analysis of the secondary sources of similar themes. It was found that there is very limited discussion on product development in Islamic social finance

Takaful protection for mental health illness from the perspective of Maqasid Shariah: A critical analysis / Khairil Faizal Khairi...[et al.]

Mental health illness becomes one of the major illness in Malaysia aside from heart disease. Recently reported that 29.2% of Malaysian suffering from mental health illness which increases threefold from the previous year. Majority of the Malaysian suffering from mental health illness comes from the lowest income group. This shows that the lowest income group have less opportunity to seek treatment due to the cost. Even though other countries have started to offer mental health insurance such as United State of America, United Kingdom, Australia and recently Singapore, Malaysia is still way behind in offering coverage for mental health illness. Therefore the objective of this paper is to analyse mental health takaful from the perspective of Maqasid shariah. This paper uses a qualitative approach by analysing the related document and past literature. The result from this study shows that mental health takaful is able to meet the requirement of Maqasid shariah and preserve the benefits of, and prevent harm to, human wellbeing. Furthermore this study will provide an insight to the takaful industry for developing a new products that could help mental health disorder patient

An analysis of regulation and governance for funeral social fund in Malaysia

The funeral expense is becoming expensive. It will lead to funeral poverty whereby the next of kin of the deceased face difficulty paying funeral expenses. Increasing numbers of people seek financial management advice following bereavement, which can have a long-term effect on the grief experience and an individual's ability to manage. More should be done to encourage people on low incomes to prepare for death through simple advice and guidance. In Malaysia, a funeral social fund such as the Khairat death fund, in general, is financial assistance that is a grant to the family of the deceased for covering the cost and expenses of funeral processes. Khairat death fund was managed by community members or organizations in the areas. However, all this Khairat death organization moving with their own way as there is no legal jurisprudence as guidance to regulate and to be more systematic and synchronize management. Hence, this study will review regulation and governance for the funeral social fund in Malaysia

A REVIEW ON LITERATURES IN PLANNING AND MANAGING OF ISLAMIC WEALTH DISTRIBUTION (2001-2013)

One of the roles of planning and managing wealth distribution is to avoid assets from continuously remain frozen. Thus, managing and planning Islamic wealth distribution is an important attempt in order to make sure Muslims community is well protected. There are various types of instruments applied in managing and planning wealth distribution that follows Shariah rules. Thus, the objective of this article is to examine the related literatures in planning and managing of Islamic wealth distribution between years 2001-2013. The methodology of this article is through qualitative research based on document-analysis on previous articles and literatures on Islamic wealth distribution. Data from each articles related in this field were collected and statistically analyzed using the Statistical Product & Service Solution (SPSS) software. This study looked at variables which include authorship patterns, number of articles published, author productivity, geographical affiliation and subject area patterns. The general finding in this article shows that there are still limited number of articles and papers published by the researchers related to this field. Henceforth, this article provides significant suggestions and strategies for the future exploration on planning and managing Islamic wealth distribution

Legal Issues in E-Wallet Practices

E-Wallet has been applied in Muslim and non-Muslim jurisdictions in many parts of the world including Malaysia, China, India, and Korea. The application is widely used and has raised questions with regard to legal and shariah issues. This paper aims to analyse specifically, legal issues affecting e-wallet practices. This paper adopted a qualitative research approach. The data collected include document reviews, ethnographical interviews and observations. This study found several legal issues related to e-wallet inter alia, an unclear position on the liability of board directors of e-wallet operators, breach of mandate and exclusion of liability of e-wallet operators. As e-wallet is important as an enabler to increase financial inclusion, it is important to address the legal issues on e-wallet to enhance good governance and best practices of e-wallet in Malaysia. The findings from this paper can be used as a basis for policymakers including scholars in the formulation of guidelines on legal and shariah compliance of e-wallets