GIVING IN AN ISLAMIC PERSPECTIVE

Abstract: The purpose of this study is to shed light on the underlying concept of giving in the perspective of Islam. Methodologically, this study employs qualitative systematic data processing approach. The conceptual framework is developed from the Quran, Hadith, and the story of the Prophet and his companions. This study also refers to a conventional theory such as Altruism, Socially Consumer Behaviour, and Social Exchange Theory. Several previous empirical studies were also recorded to support the proposition. This study proposes four variables that might influence people to give, namely, targhîb, tarhîb, ihsân and ikhwah. By realizing many other factors that may influence the giving behaviour, this study only focuses on the Islamic religious perspective. This article also brought opportunities to investigate conceptually and empirically other factors that could affect giving behaviour. To the best of the author’s information, there is only a small number of studies that have been done concerning the influence of religion towards giving behaviour. And it is at his juncture the novelty of this study lies.Abstrak: Penelitian ini berupaya menjelaskan konsep dasar dari “memberi” dalam perspektif Islam. Secara metodologis, penelitian ini menggunakan pendekatan pemrosesan data sistematis kualitatif. Kerangka konsep dikembangkan dari al-Qur’an, Hadis, dan kisah atau atsâr para sahabat Nabi Muhammad SAW. Kajian ini juga merujuk kepada teori konvensional seperti Altruism, Socially Consumer Behavior, dan teori Social Exchange. Beberapa kajian empirik sebelumnya juga dirujuk untuk mendukung proposisi tersebut. Penelitian ini mengemukakan empat variabel yang mungkin memengaruhi manusia untuk memberi, yaitu, targhîb, tarhîb, ihsân dan ikhwah. Dengan menyadari faktor-faktor lain yang dapat memengaruhi perilaku memberi, penelitian ini hanya berfokus pada perspektif agama Islam. Artikel ini juga membawa peluang untuk menyelidiki secara konseptual dan empiris berbagai faktor lain yang dapat memengaruhi perilaku memberi. Sejauh pengetahuan penulis, hanya ada sejumlah kecil studi yang telah dilakukan mengenai pengaruh agama terhadap perilaku memberi. Di sinilah letak kebaruan dari penelitian ini.Keywords: giving, Islamic charity, targhîb, tarhîb, ihsân, ikhwa

Empowering Food Security Through Waqf

Food scarcity is not an alien subject to people nowadays. Various plans and efforts have been made around the world to ensure adequate food supply including the waqf approach. This study is dedicated to developing and proposing the waqf model for food security. Waqf legislation and previous waqf models for livestock and agriculture were reviewed and studied before the Food Security Waqf Model (FSWM) was developed. The qualitative interview with an expert in the field of Islamic finance and Syariah has been employed to verify the validity of the proposed model. The experts support the suitability of FSWM in empowering food security through waqf. All expert panels also agreed that FSWM is practicable, compliant with waqf legislation, and feasible in general. They are also enthusiastic about the implementation of FSWM. The originality of this article lies in the proposed model, which is newly introduced in this study and has gone through the validity evaluation process by appointed expert panels. The model proposed in this study is expected to give an alternative pathway to the government in the effort of the national food security plan. By not undervaluing previous research models, this research model should give a new perspective to the academic literature on empowering food security through waqf

Selection Factors of Customer towards Islamic and Conventional Home Financing: A Case Study in Johor, Malaysia

Malaysia is one of the world financial centres for Islamic finance outside the Middle East. The purpose of the study was to find out the choice criteria for home financing among Malayan Banking Berhad customers which is the biggest bank in Malaysia. 350 of Malayan Banking Berhad home financing products customer among public servants, private sector workers, and self-employment were chosen as respondent. By using the Principal Component Analysis with Varimax Rotation, fourteen independent variables (selection factors) used had been reduced to only three main factors for both Islamic and conventional financing. The Research had found that the “advantage and goodness of products”, the “income and advice from the third party”, and the “lifestyle” were the factors that motivate customer in choosing Islamic home financing. In contrast, the customers prefer conventional home financing because of “products advantage and lifestyle”, “advice from the third party”, and “market performance” as the factors that motivate them to choose conventional home financing

Selection Factors of Customer towards Islamic and Conventional Home Financing: A Case Study in Johor, Malaysia

Malaysia is one of the world financial centres for Islamic finance outside the Middle East. The purpose of the study was to find out the choice criteria for home financing among Malayan Banking Berhad customers which is the biggest bank in Malaysia. 350 of Malayan Banking Berhad home financing products customer among public servants, private sector workers, and self-employment were chosen as respondent. By using the Principal Component Analysis with Varimax Rotation, fourteen independent variables (selection factors) used had been reduced to only three main factors for both Islamic and conventional financing. The Research had found that the “advantage and goodness of products”, the “income and advice from the third party”, and the “lifestyle” were the factors that motivate customer in choosing Islamic home financing. In contrast, the customers prefer conventional home financing because of “products advantage and lifestyle”, “advice from the third party”, and “market performance” as the factors that motivate them to choose conventional home financing

Can ESG increase firm value in the banking institution and financial services in Malaysia? An insight from social norm theory

This paper aims to ascertain the impact of environmental, social and governance (ESG) on Malaysian banking institutions and financial services. The study examined 24 firms from the banking institution and financial services obtained from DataStream. The study used OLS, random effect and fixed effect analysis with robust standard error. To ensure robust result, the study uses two stages lease square to solve for potential endogeneity concerns. The finding reveals that ESG increase firm value significantly in all analysis. The study also discovered that social pillar score negatively moderates ESG and firm value. Research limitations/implications: The data is only limited to Malaysia’s banking institution and financial services. Thus the results may not be extrapolated into other industries. A manager should promote the ESG agenda to obtain a better firm valuation among investors, especially those concerned with the ESG agenda. By applying the perspective from social norm theory, the study shows that empowering social responsibility disclosure (create positive credibility to investors) significantly adds value within banking institutions and financial services firms in Malaysia. The study also discovered that the social pillar has a significant moderating effect on ESG and firm value relationships

Dividend Policy in Malaysia: A Comparison of Determinants Pre and Post Malaysian Code on Corporate Governance

This study was aimed at examining the differences between dividend policy determinants pre- and post-Malaysian Code on Corporate Governance (MCCG) 2012. Several factors, including profitability, lagged dividend, free cash flow, debt, firm size, investment opportunities and market risk were tested. The study investigated a total number of 631 non-financial firms in Malaysia that covered 7830 firm-year observations from 2005 to 2011 (pre-MCCG) and from 2013 to 2019 (post-MCCG). The study used pooled Ordinary Least Square (OLS) and random and fixed effect, with a robust standard error. The results demonstrated that from seven factors tested only four factors were found to be significant in determining dividend policy in pre-MCCG, and five factors in post MCCG. The pre-MCCG test revealed that before the revised MCCG 2012, the factors determining dividend policy were as follows: profitability, lagged dividend, debt, and firm size. However, there were slight changes in the range of determinants affecting dividend policy, Post-MCCG 2012. The post MCCG test revealed that profitability, lagged of dividend, and firm size consistently determined firm dividend policy; however, debt was no longer a significant determinant of dividend policy post MCCG. Additionally, investment opportunity and market risk were found to be significant determinants of dividend policy post-MCCG in 2012

Comparison of Government and Private Based Waqf Institutions Management: Case Study of Indonesia And Malaysia

The present study aims to compare two (2) different types of management, i.e., privatization and nationalization, in managing waqf assets development. We compared the experiences of two (2) countries; firstly, Malaysia, which is controlled by the government-based institution, and secondly, Indonesia, which is governed by the private based institution. Therefore, this issue has prompted the purpose of this study; first (1st) to investigate and compare waqf assets development in both countries; second (2nd) to explore issues faced by both countries in developing waqf assets and third (3rd) solutions for the future direction of waqf practice in both countries. To achieve this objective, we employed two different methods which are library research and field research. Library research data comprised of secondary data where information is extracted from waqf institutions’ annual reports and websites, relevant books, journals, internet websites and scientific conference papers were utilised. Meanwhile, field research involves information gathered from expert interviews. In the context of Malaysia, we interviewed eight (8) respondents which comprised of four (4) waqf institution officers, three (3) academic researchers and one (1) Bank officer who offers cash waqf product. Meanwhile, in the context of Indonesia, we interviewed four (4) waqf institution officers. The data are analysed based on the inductive approach. Based on the experts’ interviews, we identify three (3) major themes and eight (8) subthemes that explained the condition of the waqf management in both countries. We find that waqf institutions in both countries faced similar issues in management such as lack of expertise in economic and finance employed in waqf institution, lack of standardization in financial reports and also lack of capital to develop the waqf assets. Besides management issues, we find that Muslims in both countries have low literacy levels about waqf due to confusion and lack of practice of waqf in society and to improve this situation, the waqf institutions in both countries are educating the Muslims on the importance of waqf through various programmers. Moreover, we discover that the younger generation in Malaysia could not contribute waqf in the form of fixed assets due to the scarcity of land and the high value of land and building, especially in urban areas. The final theme relates to the solution for both countries in developing waqf assets. We find that experts from both countries recommended the promotion of waqf in the form of cash. This is the ideal solution in the present day to not only rejuvenate waqf assets development but also motivate the younger generation to contribute cash waqf. Besides this, the experts are also concerned about the stringent law imposed on waqf assets development. Thus, the experts suggested flexibility in the law, especially to the use of the istibdal (exchange) method to develop waqf lands. The analysis of the study is derived based on qualitative research, and the respondents participating in the study are limited to experts in the field of waqf. Thus, future research in this area may include analysis of interviews related to waqf practice from the perspectives of ordinary Muslims and also distributing the questionnaire to a bigger sample of the population to gauge wider opinion about waqf in both countries. This paper provides an opportunity for further empirical studies to prove that the development of waqf has a significant influence based on the management structure. Furthermore, the outcome of this research provides positive implications for the policymakers from both countries in overcoming problems and also rejuvenating the role of waqf development in their respective countries. This study gauge the two (2) different environment of waqf assets management from two (2) different countries in managing waqf properties using approaches of management

Zakat Model in PTPTN Financing Scheme – A Conceptual Study

This paper proposes a viable alternative model for the PTPTN funding system, termed the Holistic and Prosperous Education Model (HOPE) model, to reduce and waive the PTPTN loan payments for Asnaf students with Zakat funds. This is to achieve the goal of poverty eradication, as more than half a million borrowers have never paid off even a single cent of their student loan (PTPTN) and almost 97% of them are from the B40 student group. Debt can have serious consequences for individuals and their families, so it is important to explore options for debt relief. As this paper focuses on the conceptual development of the HOPE model, it employs a qualitative content-analysis methodology and this study examines existing studies on the potential of Zakat as an essential form of assistance in the education sector to construct the HOPE model as a funding model. This approach can help to address the growing problem of student debt, particularly B40 students who rely on loans to finance their education. By deducting the tuition fees and accommodation fees financed by the PTPTN loan, the Zakat fund can help reduce the financial burden on students and their families, allowing them to focus on their studies and achieve their educational goals. Overall, this new approach to zakat distribution has the potential to create a more sustainable and impactful form of charitable giving, one that can help to address pressing social issues such as poverty, inequality, and access to education

Does Banks’ Moratorium Alleviate the Burden of Borrowers? Case Of the Pandemic Covid-19

The COVID-19 crisis has devastatingly affected the Small and Medium Enterprise (SMEs) cash flow. Subsequently, the employee was laid off as the SMEs could not sustain themselves. To address these issues, governments globally embrace moratoriums to alleviate the hardship. However, there is a clash between the borrowers' expectations, the government agenda, and the current banking system. Therefore, this study undertakes a study on why there is a need for Islamic financial institutions to undertake a similar approach to conventional banking in discharging their moratoriums. In addition, the study shall also suggest possible alternatives that would protect both the customers' and the Banks' interests while upholding Maqasid-Shariah. The study applies a case study approach. The primary data was collected through in-depth interviews. The applied thematic analysis (ATA) was then employed in analyzing the narrative provided by the participants. The findings conclude that the moratorium has met the borrowers' expectations regarding assisting during a difficult time. Meanwhile, practitioners concluded the positive impact of the moratorium on the borrowers only for the short term. Shariah executive has pointed out that providing a moratorium with entitlement for accumulated profit is justice for both borrowers and the Banks. The Islamic Financial Institutions have been discharging the moratorium according to Maqasid Shariah. The study reveals that the sustainability of the financial institutions depends on the accumulated profit collected as the Malaysian banking system is debt-based. Thus, the act of taking accumulated profit is deemed within the Maqasid Shariah. Effective communication, government intervention, and reevaluating the interest rate system calculation are possible alternatives to protect both customers and the banks should the moratorium be implemented again for a similar situation like the COVID-19 pandemic and lockdown

Infaq during movement lockdown: the perspective from social responsibility theory

Within a few days, the National Disaster Management Agency’s COVID-19 Fund (NADMA) has collected RM 5.5 m in donations from individuals and companies. These data shows that voluminous Malaysians are willing to help although they are in a difficult situation. Grounded in the Social Responsibility theory, this paper aims to examine the factors that motivate infaq (donation) behaviour in Malaysia during Movement Control Order (MCO). The quantitative questionnaire survey method was used to obtain the data. This research’s unit analysis was of individuals who had done any help during COVID-19 MCO in Malaysia. The respondents were from all states in Malaysia, 20 years old and above and constituted of all races. Although the religiosity factor did not play a significant role as a moderator, the results of the study found that all factors from the social responsibility theory had a significant positive relationship to Infaq behaviour during an emergency. Identifying the vital driving factors that determine the infaq offer makes it possible for fundraisers to entirely focus on developing better approaches that can increase the role that these driving factors can play and possibly improve the impact on those previously unaffected factors. From the authors’ knowledge, the research paper on helping effort during an emergency is minimal, let alone the research on infaq behaviour. This paper’s originality lies in the relationship between infaq behaviour, emergency and social responsibility theory which has never been explored before by other researchers