The Application of True Sale Contract In Asset-Backed Sukuk

This article discusses the concept of true sale and its application in sukuk issuance whereby the existence of this concept is vital to ensure the permissibility of sukuk issuance especially for asset-backed sukuk.  The purpose of this study is to differentiate the application of true sale contract in asset-based and asset-backed sukuk and to examine whether the concept of true sale involved therein is similar to the Shariah concept of sale. Thus the sukuk underlying contracts are analyzed in order to understand the concept and the practice of both asset-based and asset-backed sukuk. Finally, the study found that the true sale contract is really practiced in asset-backed sukuk but not in asset-based sukuk which make the previous comply with the shariah concept of sale whereby the later although did not apply the true sale contract but still the sukuk is comply with shariah rules.    &nbsp

Hibah as an Alternative Method of Distribution in Malaysia: The Importance of Using Social Media as a Medium in Raising Muslims’ Awareness About Hibah Products

Previous researches have proven that the problem of frozen assets in Malaysia is increasing every year where the amount reached RM70 billion in year 2020. In recent days, hibah has been suggested as one of the important methods in distributing Muslims’ properties in Malaysia. In fact, this effort is seen as an attempt to facilitate the issue of frozen assets in Malaysia. This situation has inspired the authors to raise the awareness among public on the importance of using hibah as an alternative method in Islamic estate planning in Malaysia. This study discovers that social media plays a vital role in raising the awareness about hibah among Muslims as it can be easily published and accessed by the public. It is hoped that this study will be beneficial for the public to understand the role of social media in disseminating information about hibah as an alternative distribution method and to also able to cater the issue of frozen assets in Malaysia. This study recommends for a future study to be carried out by other researchers to tackle the issue of the role of social media influencers in promoting hibah. This study applies a doctrinal legal approach where the data collection is based on a library-based research as well as observations on YouTube videos

RUKUN-RUKUN AL-BAY’ DAN AL-IJARAH DALAM KITAB SULLAM AL-MUBTADI KARANGAN SYEIKH DAUD AL-FATANI : ANALISIS DARI PERSPEKTIF MAQASID AL-SYARIAH: Principles of Al-Bay’ And Al-Ijarah In The book Sullam Al-Mubtadi Written by Syeikh Daud Al-Fatani: An Analysis within the Perspective of Maqasid Al-Syariah

The development of discussion on Fiqh Muamalat began since the Prophet Muhammad SAW. This is because one of the aspects contained in the Qur'an and al-Sunnah is about the aspects of economy and muamalat. With the development of Islamic civilization, the discussion of it also flourished, especially with the emergence of fiqh scholars and fiqh schools of thought (mazhab). The scholars of fiqh are among those who have played an important role in introducing ideas based on the naqli and aqli evidences and they conducted discussions on fiqh muamalat and economy. Traditional scholars in the archipelago such as Sheikh Daud al-Fatani are considered among those who played the role in the Malay World. One of the major issues discussed in fiqh muamalat is al-Bay' (sale and purchase) and al-Ijarah (rents). In this regard, the related issues arise as to the principles of Maqasid al-Syariah which lead to the discussion. Based of the mentioned fact, this study aims to analyze the principles of Maqasid al-Syariah contained in Rukun (principle) of al-Bay 'and al-Ijarah with a focus on one of Syeikh Daud works namely the book Sullam al-Mubtadi by adopting Content Analysis' method.Perkembangan perbincangan mengenai fiqh muamalah bermula sejak perutusan Nabi Muhammad s.a.w. kerana salah satu aspek yang terkandung dalam al-Quran dan al-Sunnah ialah mengenai aspek-aspek perekonomian dan muamalah. Dengan berkembangnya tamadun Islam maka perbincangan mengenainya turut berkembang, terutamanya dengan kemunculan ahli-ahli fiqh dan mazhab-mazhab fiqh. Ahli-ahli fiqh adalah antara golongan yang telah memainkan peranan penting dalam mengemukakan idea berdasarkan dalil-dalil naqli mahupun aqli dan menyusun perbincangan mengenai fiqh muamalah dan ekonomi (Muhammad Nejatullah Siddiqi (1981). Ulama-ulama tradisi di Nusantara juga seperti Syeikh Daud al-Fatani tidak ketinggalan dalam memainkan peranan tersebut di Alam Melayu. Salah satu bahagian yang utama dalam perbincangan fiqh muamalah adalah mengenai al-Bay’ (jual-beli) dan al-Ijarah (sewa-menyewa). Sehubungan dengan itu, isu berkaitan yang timbul adalah mengenai prinsip-prinsip Maqasid al-Syariah yang melatari perbincangan tersebut. Maka, kajian ini bertujuan untuk menganalisis prinsip-prinsip Maqasid al-Syariah yang terkandung dalam Rukun al-Bay’ dan al-Ijarah dengan tumpuan terhadap salah satu karya beliau iaitu kitab Sullam al-Mubtadi dengan menggunapakai kaedah ‘Content Analysis’

Pewarisan Harta Orang Hilang (Al-Mafqud): Tinjauan Terhadap Pandangan Syariah dan Perlaksanaannya

Permasalahan berkaitan orang hilang (al-mafqud) merupakan isu yang sangat penting untuk dibincangkan khususnya setelah berlaku pelbagai kejadian yang melibatkan kehilangan orang-orang yang tidak dapat dikesan sama ada disebabkan oleh kecelakaan, perperangan, pemerdagangan manusia dan tidak kurang juga yang menghilangkan diri tanpa dapat dikesan. Kehilangan tersebut membawa kesan yang besar khususnya dalam pembahagian harta pusaka yang melibatkan bahagian orang hilang tersebut ataupun hartanya sendiri yang perlu dibahagikan kepada waris yang lain. Kajian ini dijalankan bertujuan untuk meneliti pendekatan yang paling sesuai dalam menyelesaikan isu pembahagian harta pusaka yang membabitkan orang hilang khususnya di kalangan umat Islam. Kajian ini menggunakan kaedah kualitatif untuk mendapatkan maklumat-maklumat berkaitan pewarisan harta al-mafqud. Kajian Teks digunakan dengan merujuk kitab-kitab fiqh klasik dan baharu untuk mendapatkan maklumat kajian. Kajian mendapati terdapat beberapa kaedah untuk menyelesaikan pembahagian harta pusaka orang hilang. Justeru, penulis mengambil pendekatan yang paling sesuai dalam menentukan pembahagian tersebut dengan mengambil kira kemaslahatan semua pihak yang terlibat terutamanya ahli waris.    Kata kunci: Pewarisan, harta pusaka, orang hilang, al-mafqud, syaria

THE APPLICATION OF BENEFICIAL OWNERSHIP IN ASSET-BASED SUKUK: A SHARIÑAH ANALYSIS

There are two categories of sukuk namely Asset-based and Asset-backed sukuk. Assed-based sukuk is a sukuk whereby the existence of an underlying asset is sold to the investors only to facilitate the issuance of sukuk. Whereas in asset-backed sukuk, the asset is not merely used as a tool to facilitate the issuance but it is really transferred to the investor via a true sale transaction. However, in asset-based sukuk issuance, the transfer of asset to the investor is not a true sale. In simple word, only beneficial ownership is transferred to the investor while the legal title remains with the originator. The practice is seemed not to be persistent with the Shariah principle that requires the complete transfer of ownership to the buyer. In Islamic law, the ownership will determine the obligation of the owner toward his property. For example, a lessor is liable for the impairment of his property because he is the legal owner of the property while the lessee is not responsible for it because the lessee only owns the beneficial right of the property. Hence, this study is very important to determine the status of the transfer of beneficial ownership in asset-based sukuk whether it is compliant with Shariah or not? The status is vital because the result will lead to the different consequences especially with regard to the sukuk holder whether he is liable for the underlying asset or not

Waqf as a means of forest conservation: alternative for Malaysia

Forest of Peninsular Malaysia is a natural heritage that needs to be sustained for its uniqueness even though small in percentage, but it offers enormous benefits in safeguarding the natural ecosystem. Unfortunately, the state of deterioration of forested area in Peninsular Malaysia is at alarming rate and in need of additional funding instrument for conservation and regeneration. The Forest Development Fund established under Chapter 8 of the National Forestry Act 1984 has limited operation as its coverage only extends to existing forest conservation routine activities. Hence, this article seeks to highlight the preliminary research finding that is waqf shall be the alternative mechanism to protect and sustain the forest environment. Discussion in this article begins with the significance of forested area in the ecosystem and prolongs issues encircling the forest protection. It then explains financial and technical assistance available for forest conservation and the inadequacy to respond to current needs. Waqf has been implemented in several countries for the good of the community, thus it is seen as a potential tool to compliment efforts to preserve forest environment from depreciation. The role of the Islamic Religious Council as a sole trustee of all the waqf properties is also highlighted. Thus, this article proposed that by allocating specific land or any immovable assets in the name of waqf, the country could improve the state of forest that provides for water catchment areas, flood control mechanisms and also habitats for biodiversity. © 2017 American Scientific Publishers All rights reserved

Hibah as alternative to resolve inheritance issue among new Muslim converts (Muallaf) in Malaysia : an analysis

In Malaysia, Muslim converts (Muallaf) face certain difficulties including restrictions in inheritance. In this regard, Islam provides that the property of Muslims shall be inherited by Muslim heirs only. In other words, the general principle provides that non-Muslim heirs have no right in inheritance to property that belonging to Muslims. By taking into consideration the status and rights of family members of Muallaf in Malaysia, hibah is categorized as an alternative method of distribution, in addition to wasiat and other methods. In recent years, there has been an increasing interest in studying and promoting hibah (inter vivos gift) as one of the alternatives in distributing someone’s wealth, in addition to other methods. This paper applies a doctrinal legal research methodology where data collection involves primary and secondary sources which include Al-Quran, hadith, journal articles, constitution, statutes and case law. This study seeks to identify the extent hibah applies as an alternative to resolve the inheritance issue among the Muallaf and to provide some recommendations in proposing hibah law to be enacted in resolving this issue in Malaysia. To date, none of the authors has studied in detail drafting of hibah law to be enacted for resolving the inheritance issue concerning Muallaf in this country. This study discovers that a specific law on hibah could clarify its position and application in Malaysia where it can further be used as an alternative to resolve inheritance conflict affecting the heirs, especially non-Muslim, of Muallaf. Furthermore, it may also benefit various agencies such as religious departments, Shariah Court and other relevant agencies to preserve the rights of Muallaf in regard to their inheritance issues

MODEL PUSAT SEHENTI PENGURUSAN HARTA PUSAKA ISLAM (FARAID): THE MODEL OF FARAID ONE-STOP CENTRE (FOSC)

Abstract in English: Faraid is a set of rules and principles that regulates the distribution of a Muslim’s property upon his death which is based on the Sharia law. In Malaysia, the Islamic jurisdiction including the management of inheritance is under the administration of the state. However, from what we can see recently, the management of inheritance property still requires improvement and transformation in the perspective of management and administration. The average unclaimed worth of assets by the deceased's family members is valued at around RM 60 billion due to the lack of knowledge regarding the management of inheritance. Lack of knowledge on the role of the inheritance’s agencies among the Muslim society is also the main challenge in assisting them to resolve their disputes in property distribution. Hence, it is suggested that a Faraid One-Stop Centre will assists the Muslim community in settling the issues of inheritance efficiently. The Faraid One-Stop Centre (FOSC) model is a combination of all the inheritance management agencies under one roof or at one place. The model of FOSC consist of five agencies which are Faraid USIM Consultant (FUSACA), Small Estate Division of the Land Office, Amanah Raya Berhad, State's Religious Authority and the proposed Agency of Legal Aid and Advisory Services of Faraid USIM Consultant (FUSACA) is the most important agency in making decisions and giving advise to customers. Meanwhile, Small Estate Division of the Land Office is the agency that compiles all the inheritance cases. The Amanah Raya Berhad manages matters regarding the movable properties and grants the Letter of Declaration or Order. State's Religious Authority or Council will perform the valuation process of the property. Whereas The Agency of Legal Aid and Advisory Services will help in giving legal advise to the customers if needed and represent the clients in the court of law. The Model of FOSC may become a reference and guidance to the related agencies of inheritance to develop FOSC in each state in Malaysia. This model will improve the management and administration of inheritance to the next level, making the process of inheritance division and manangement easier for the people.   Abstract in Malay: Faraid merupakan sebuah sistem pengurusan harta selepas kematian yang dianjurkan oleh Islam. Di Malaysia, bidang kuasa hal ehwal Islam termasuk pengurusan harta pusaka adalah terletak di bawah kuasa pentadbiran negeri. Walau bagaimanapun, sistem pengurusan harta pusaka pada masa kini dilihat masih memerlukan kepada penambahbaikan dan transformasi dari sudut pengurusan dan pentadbirannya. Anggaran sebanyak RM60 bilion harta masih belum dituntut disebabkan oleh kesedaran masyarakat tentang pengurusan harta pusaka masih lagi di tahap yang rendah di samping kekeliruan dengan wujudnya pelbagai agensi yang menguruskan harta pusaka. Justeru, pembangunan model pusat sehenti pengurusan harta pusaka atau FOSC (Faraid One-Stop Centre) ini merupakan sebuah inisiatif yang dibangunkan untuk memudahkan masyarakat menyelesaikan masalah berkaitan harta pusaka dengan lebih efisien. Model pusat sehenti pengurusan harta pusaka (FOSC) ini menyatukan semua agensi-agensi yang terlibat dengan pengurusan harta pusaka di bawah satu pusat bagi memudahkan pengurusan harta pusaka. Model FOSC terdiri daripada lima agensi iaitu Faraid USIM Consultant (FUSACA), Bahagian Harta Pusaka Kecil, Amanah Raya Berhad, Majlis Agama Islam Negeri dan Agensi Guaman & Perundingan. Faraid USIM Consultant (FUSACA) dijadikan agensi yang berperanan penting dalam membuat keputusan dan memberi khidmat nasihat kepada pelanggan. Manakala, Bahagian Harta Pusaka Kecil sebagai agensi yang merekod kes yang dipohon dan diselesaikan dan Amanah Raya Berhad merupakan agensi yang menguruskan hal yang melibatkan harta alih dan mengeluarkan Akuan atau Arahan bagi harta alih. Majlis Agama Islam Negeri menyediakan khidmat pengiraan jumlah nilaian dan bahagian harta pusaka dan Agensi Guaman & Perundingan sekiranya pelanggan memerlukan khidmat peguam atau nasihat. Model FOSC ini boleh menjadi rujukan dan panduan kepada agensi berwajib berkaitan harta pusaka dalam mewujudkan pusat sehenti di negeri masing-masing. Model FOSC ini juga amat diyakini dapat memperkasakan pengurusan harta pusaka di Malaysia dan secara langsung dapat memudahkan masyarakat menguruskan harta pusaka secara mudah dan sahih.Faraid merupakan sebuah sistem pengurusan harta selepas kematian yang dianjurkan oleh Islam. Di Malaysia, bidang kuasa hal ehwal Islam termasuk pengurusan harta pusaka adalah terletak di bawah kuasa pentadbiran negeri. Walau bagaimanapun, sistem pengurusan harta pusaka pada masa kini dilihat masih memerlukan kepada penambahbaikan dan transformasi dari sudut pengurusan dan pentadbirannya. Anggaran sebanyak 60 Bilion harta masih belum dituntut disebabkan oleh kesedaran masyarakat tentang pengurusan harta pusaka masih lagi di tahap yang rendah di samping kekeliruan dengan wujudnya pelbagai agensi yang menguruskan harta pusaka. Justeru, pembangunan model pusat sehenti pengurusan harta pusaka atau FOSC (Faraid One-Stop Centre) ini merupakan sebuah inisiatif yang dibangunkan untuk memudahkan masyarakat menyelesaikan masalah berkaitan harta pusaka dengan lebih efisien dan kondusif. Model pusat sehenti pengurusan harta pusaka (FOSC) ini menyatukan semua agensi-agensi yang terlibat dengan pengurusan harta pusaka di bawah satu pusat bagi memudahkan pengurusan harta pusaka. Model FOSC terdiri daripada lima agensi iaitu Faraid USIM Consultant (FUSACA), Bahagian Harta Pusaka Kecil, Amanah Raya Berhad, Majlis Agama Islam Negeri dan Agensi Guaman & Perunding. Faraid USIM Consultant (FUSACA) dijadikan agensi yang berperanan penting dalam membuat keputusan dan memberi khidmat nasihat kepada pelanggan. Manakala, Bahagian Harta Pusaka Kecil sebagai agensi yang merekod kes yang dipohon dan diselesaikan dan Amanah Raya Berhad merupakan agensi yang menguruskan hal yang melibatkan harta alih dan mengeluarkan Akuan atau Arahan bagi harta alih. Majlis Agama Islam Negeri menyediakan khidmat pengiraan jumlah nilaian dan bahagian harta pusaka dan Agensi Guaman & Perunding sekiranya pelanggan memerlukan khidmat peguam atau nasihat. Model FOSC ini boleh menjadi rujukan dan panduan kepada agensi berwajib berkaitan harta pusaka dalam mewujudkan pusat sehenti di negeri masing-masing. Model FOSC ini juga amat diyakini dapat memperkasakan pengurusan harta pusaka di Malaysia dan secara langsung dapat memudahkan masyarakat menguruskan harta pusaka secara mudah dan sahih

Determination Of Had Kifayah Zakat Among Pre-Graduate Students at Universiti Sains Islam Malaysia (Usim)

This research was supported by Pusat Wakaf dan Zakat, Universiti Sains Islam Malaysia under grant no PPPI/KHAS_PWZ/FSU/051007/15319.Had Kifayah refers to a minimum basic necessity rate set based on the current cost of living. The objective of this paper is to determine the current Had Kifayah for asnaf candidates focusing more on USIM Pre-Graduate students as the target group. The research method used are the qualitative and quantitative which apart from referring to existing writing and references, a survey was conducted to obtain the latest data from asnaf students through previous databases. The survey has been conducted via online instead one to one interview due to Covid-19 pandemic. Through a survey that covers aspects of student spending and income, the average of spending method has been used as per agreed with all team members to determine the Had Kifayah, in line with the method used by the state Islamic religious council as a reference. With the improvements made in the agreed calculation system, a more accurate calculation method has been developed and at the same time can help the process of proper distribution of zakat.Pusat Wakaf dan Zakat, Universiti Sains Islam Malaysia under grant no PPPI/KHAS_PWZ/FSU/051007/1531

Islamic jurisprudence perspectives on the practice of asset-based and asset-backed sukuk in Malaysia

This research aims to analyze the Sharicah issues in asset-based and asset-backed sukuk in Malaysian practice and finally proposing some possible solutions to these issues. Most of the issues have remained controversial among sukuk players especially with regard to asset-based sukuk which is claimed as noncompliant with the Sharicah rules. These unsolved issues have posed huge constraints to investors especially from the Middle Eastern countries which perceive Malaysian sukuk as similar to conventional bond. Thus, the principles, terms and conditions of some sukuk issued in Malaysia have been revised in order to conform to the Sharicah rules. The method used in this study was mainly textual analysis to highlight the main characteristics of asset-based and asset-backed sukuk as practiced in Malaysia. Some selected term sheets of sukuk issued were analyzed to identify Sharicah issues. In addition, some Malaysian scholars were interviewed in order to get their views on these issues. It is found that these issues abound due to the conflicting opinions that stem from the different perceptions and interpretations of scholars on the textual evidence Mohamad Zaharuddin Bin Zakaria Akhtarzaite Abdul Azi