The treatment of Qarḍ (Qarḍ facility) for solvency of takāful fund in a takāful undertaking

The aim of this paper is to understand the practical application of investment and deposit products in comparison with the guidelines offered by the Islamic Financial Services Act (IFSA). Here, the products’ features and benefits of the banks’ deposit and investment products are highlighted. A performance analysis of both products is conducted among different banks in Malaysia, and their results are used to draw conclusions on the effects of IFSA on banks. The data was based on two banks in Malaysia: one was a fullyfledged Islamic bank, and the other was a subsidiary bank offering Islamic banking products. The information was obtained from the banks’ websites, annual reports, and Bank Negara Malaysia’s (BNM) website. The findings of the research are that the two banks analyzed all conform to the guidelines issued by IFSA. The volumes of investment products have significantly decreased after the introduction of IFSA compared to the volumes of deposit products. Bank Islam and CIMB Islamic both provide items that are suitable for use with an IFSA. Customers have a thorough understanding of the benefits of various types of deposits and investments

Financial resilience and financial education among Malaysian women small and micro business-owners: lessons beyond the Covid-19 crisis

Policy makers across the countries have embraced financial education as a remedy to barrier militating against the need of women small and micro business owners to improve their financial decisions, behaviours, and invariably financial resilience and economic opportunities. A review of academic and policy literature on financial education and financial inclusions shows that policymakers have initiated different activities with focus on building and improving financial literacy of groups of women entrepreneurs who operates small and micro businesses. In order to highlight this important objective, one that resonates with development objectives, the paper discusses the following: first, the benefits of financial education for low-income group, in particular, women who operates micro and small businesses; Second, how financial education can support financial inclusions; and third, how financial education could be applied to deal with risks and challenges confronting the low income groups of women business owners, and enhance their financial resilience through appropriate financial decision making and adaptation over a long term. This paper finds relevance in the light of numerous financial challenges such as, financial shortfall, loss of income, trouble meeting other financial obligations experienced by group of low-income groups of women business owners during the COVID-19 pandemic crisis. One that has proven to be a severe test on their financial resilience. This research is supported by Ministry of Education (MOE) through Fundamental Research Grant Scheme (FRGS/1/2021/SS01/UIAM/03/3)

A review of commodity murabahah transaction as offered by Bursa Malaysia: a critical analysis from fiqh perspective

Commodity Murābahah is an example of product innovation in Islamic banking and finance, which is based on Murābahah and Tawarruq transactions. Both traditional and the contemporary Islamic jurists hold different opinions on its legality in the light of Fiqh. This study is aimed at understanding of Commodity Murābahah trading especially the current practical operations and describing preferred structures of Commodities Murābahah as offered by Bursa Malaysia to overcome the highlighted controversies of Sharī'ah issues. This paper will illustrate in detail the transactional flow of Bursa Sūq Al-Sila' as operated by Bursa Malaysia and will shed light on related Sharīah issues for improvement

Covid-19: reinforcing the impact of Islamic banking through value-based intermediation

The novel Covid-19 pandemic has caused an unprecedented human crisis around the globe. The necessary actions implemented to contain the virus have sparked both economic and social downturn. It shows the fragility and unpreparedness of the economy to face such a pandemic. Significant weakening of economic conditions has escalated the pressure on households, businesses and financial markets. However, before the Covid-19 outbreak, Bank Negara Malaysia has taken a new initiative by introducing Value-Based Intermediation (VBI). VBI’s strategy opens up a new holistic layer for Islamic banks in providing the public at large with impactful and profitable services. This paper discusses VBI’s strategy and its potential application from the viewpoint of Sharīʽah. This paper also discusses Islamic banks' activities in implementing VBI as well as their response to the Covid-19 pandemic, based on qualitative inquiry. The paper concludes that VBI is a long journey that requires significant transformation of mindset among key stakeholders. As Covid-19 has adversely impacted communities in several ways, Islamic banks could empower communities through provision of financial solutions that create positive impact

Measuring the customer’s perception of the use of financial technology in Algerian Islamic Banks

Financial technology has emerged as one of the main factors that changed the way the financial and banking industry works, and its use has been enhanced in the financial industry around the world, stemming from the increasing spread of innovative banking services that are characterized by high efficiency and low costs. Particularly for the sizable portion of society that does not interact with the banking system, financial technology has the potential to transform the structure of financial services and make them faster, less expensive, and safer. The hypothesis model is based on technology acceptance model (TAM). The methodology in this study includes data collection through questionnaires distributed to the users of financial technology, and the sample included the users and nonusers of mobile financial services. Structural equation modeling is utilized for data analysis procedures when using survey data gathered from 300 customers who have access to financial technology services in Algerian Islamic banks. The objective of this study is to determine the factors (including perceived usefulness, perceived ease of use, per-ceived risk, trust, convenience, and social image) influencing user intention to use financial technology services in Algerian Islamic banks. The implications of this research help to determine the right strategy to know the customers’ perceptions and the factors influencing their choice of using mobile banking services. This study can be extended to future studies that include Islamic banks and conventional banks in Algeria. The study is in progress

Entrusting government in resolving Covid 19: economic impacts through government support scheme

Purpose – With regard to the recent spike of Covid-19 cases and the Malaysian Government’s announcement on the extension of Movement Control Order (MCO), this study seeks to gain a deeper understanding on the role of government in exercising MCO and providing government support schemes i.e. the Malaysian stimulus package to combat the economic impact of the Covid-19 pandemic. Design/methodology/approach –The qualitative technique will be used secondary (documentary content analysis) published data into the context of this research. The data will be analysed using qualitative content, narrative, and discourse analysis to provide its findings and discussion. Findings – The findings indicated that by understanding the importance of entrusting government in resolving Covid-19, we can further enhance the government support scheme to fulfil its “raison d’etre” in resolving this pandemic not merely to ensure its positive impact in socio-economic per se, but its efforts to stabilize and strengthen the economy as well. Practical implications –This study may also motivate industry practitioners, academicians, and the society at large to appreciate the importance of entrusting the authorities in resolving the economic crisis during this plague. The study will further provide significant socio-economic impacts as the results will enable new initiatives by the authorities to strengthen Malaysian economic resilience in response to the outbreak of the Covid-19 disease to equip themselves in unpredictable financial conditions of global economic upheavals. Originality/value – The study strengthens public perception on the idea of the effectiveness of government’s policy and efforts in handling Covid-19 pandemic to achieve positive economic impacts

Achieving the Sustainable Development Goals: the role of Islamic social finance towards realizing financial inclusion in the unprecedented Covid-19

The purpose of this study is to explore the role of Islamic social finance towards realising financial inclusion in achieving the Sustainable Development Goals (SDGs) in the 2030 agenda for SDGs, as propagated by United Nations Member States in 2015. A critical analysis is made to explain the possible contribution of Islamic social finance in achieving financial inclusion which is aligned with SDGs that brings balanced to the physical, emotional, mental and spiritual of the community in supporting overall economic growth which finally combats the economic impact of the COVID-19 pandemic. The results may also motivate the financial industries to promote Islamic social finance products and corporate social responsibilities as well as enhance the development of ISF towards achieving financial inclusion in fulfilling SDGs which is seen as being parallel with Maqᾱṣid al-Sharῑ῾ah especially in resolving unpredictable economic issuesand hiccups during COVID-19

The role of zakat in achieving economic empowerment, environmental sustainability, and social re-engineering as promoted in the 12th Malaysia Plan

This study seeks to gain a deeper understanding on the role of zakᾱt in achieving economic empowerment, environmental sustainability and social re-engineering as promoted in the 12th Malaysia Plan (12 MP) which aligned with Shared Prosperity Vision 2030 (SPV2030) as well as United Nation’s Sustainable Development Goals (SDGs) to provide support to fulfil the Maqᾱṣid al-Sharῑ῾ah. This study uses the library study method. Qualitative approach is used in this study to collect information, documents and data accordingly with regard to the topic discussed. Results: By understanding the importance of zakᾱt in achieving economic empowerment, environmental sustainability and social re-engineering, we can further enhance the distribution and utilization of these zakᾱt funds to ensure its positive impact in socio-economic. Eventually, this may also motivate the State Islamic Religious Council (SIRC) to promote the importance of fair and equitable distribution of zakᾱt to aṣnᾱf

Determining the appropriate investment strategy and identify the leading monetary system before and during the Covid-19 pandemic crisis: a case study of crypto-currency, gold standard, and fiat money

The study has two main objectives: firstly, to examine the opportunity of the Momentum and Contrarian investment strategy for three different monetary systems to trade currencies in Forex markets using Symlet wavelet decomposition approach. Secondly, to examine the co-movements between the three monetary systems using wavelet coherence analysis. The findings indicate that an investor with momentum strategy can consider investing in Bitcoin and Gold market, while the contrarian investment strategy is more advisable for the fiat money market during crisis period. Furthermore, the wavelet coherence analysis indicates that Bitcoin currency is the most leading monetary system during the Covid-19 pandemic crisis, followed by gold. However, US dollar mostly leads Bitcoin during non-crisis periods, while Gold is found to lead the US dollar throughout the sample period of the study. This suggests that the cryptocurrency system or gold standard should be considered as the alternative monetary system for better economic stability specially during the crisis period. Moreover, Bitcoin and gold had an anti-phase correlation before the Covid-19 pandemic crisis, which implies better benefits of hedging in the non-crisis period, while during a crisis they are moving together across different horizons. In contrast, Bitcoin and Fiat Money are strongly correlated during non-crisis periods, while during covide-19 pandemic crisis the correlation is statistically insignificant. Overall, the outcomes offer significant guidance for policymakers in understanding which monetary system leads to better economic stability during the crisis period and provides many implications for market players such hedging and Diversification investments strategy in forex markets

Application of blockchain technology in the management of waqf institutions: concepts, challenges and recommendations

Existing studies on performance aspects of waqf institutions have mainly focused on quantitative aspects, including financial ratios, with no inclusion of other alternative analysis tools such as qualitative measurement. To the best of our knowledge, research effort in this area has been lacking. Moreover, there is a literature gap in the adoption of modern technology such as blockchain technology in the management of the waqf entities. This is undoubtedly the missing impetus to the growth and effciency of waqf sector, realising the high degree of accuracy, accountability and reliability it demands. This study aims to explore into the feasibility of incorporating the blockchain technology to be applied in the performance measurement system that is credible and reliable for waqf institutions in Malaysia. Three experts working in Malaysian Fintech companies were interviewed, and thematic analysis approach was used for interpreting the data. This study delves into the understanding of how the blockchain technology leads to a performance measurement system that is credible and reliable for waqf institutions in Malaysia. As found in this study, there is a necessity for using effective blockchain-based performance measurement systems for Waqf institutions once the knowledge and maturity are acquired, which will contribute towards developing a more comprehensive waqf sector. It is expected that the outcomes of this study will contribute towards enriching the literature on measuring waqf organization performance