The Journal of Muamalat and Islamic Finance Research

Exploring Motivational Factors For Muslims' Cash Waqf Participation

Mon, 20 Nov 2023 00:00:00 +0800

The Muslim population in Malaysia has long followed the practise of paying monetary waqf to mosques. However, no prior research has revealed the characteristics that drive donors to provide cash waqf. As a result, the purpose of this research is to investigate the factors that motivate Muslims in Selangor to pay monetary waqf to mosques. This study is a deductive quantitative survey research in which the conceptual model was developed based on theory and empirical findings. To evaluate data for the research utilising structural equation modelling, 200 sample questionnaires were collected and analysed using AMOS, or Analysis of Moment Structure (SEM). This study discovered that the characteristics attitude, subjective norm, and religion greatly influence the intention of Muslims in Selangor, Malaysia to pay waqf cash to mosques as a result of data analysis. This study should have a theoretical impact by empirically contributing reference information to the body of knowledge in the field of waqf.

Assessing The Performance Of Zakat And Samurdhi Scheme In Alleviating Poverty Among The Muslim Community In Sri Lanka

Abi Huraira Rifas, Hayathu Mohamed Ahamed Hilmy, Iqbal Saujan — Mon, 20 Nov 2023 00:00:00 +0800

Poverty is one of the most hotly debated subjects in international development. It is also discussed in all economic development and governmental policymaking. Every country in the world adopts poverty alleviation strategies since poverty has been negatively impacting on economic growth. Despite this global trend, Sri Lanka has its own unique strategies that set it apart. The Samurdhi is one of the key schemes to reduce poverty in society regardless of faith or ethnicity in Sri Lanka. Notably, Muslims in Sri Lanka get benefits from Samurdhi and Zakāt programmes which play a major role in poverty reduction especially among Muslim community. on this background, this study aims to analyse the performance of both Zakāt and Samurdhi schemes in poverty alleviation among the Muslim community in the study area. This study is based on qualitative research paradigm and employs both primary and secondary data. Primary data were collected through the unstructured interviews, conducted with the coordinators, animators, and beneficiaries of both programs. All interview scripts were analysed using the Thematic Content Analysis (TCA) method. The study concluded with the argument that both schemes (Samurdhi and Zakāt) immensely contributed to poverty alleviation in the study area, especially among the Muslim community. However, Samurdhi scheme is more effective than the zakat programme during the study period (2019-2022) as Samurdhi scheme was implemented with the support of the government and annually government is allocating fund separately. Apart from this, no government funds were allocated for the proper implementation of the zakat programme via the Zakāt foundations. It is noteworthy that Zakāt system has been functioning by the donations from wealthy Muslims. Meanwhile, Zakāt scheme was effectively implemented in certain areas of Akkaraipattu. However, comparatively Zakāt scheme was not implemented effectively among beneficiaries in the whole study area.

Analisis Tematik Pandangan Hukum Muamalat Jawatankuasa Muzakarah MKI Sepanjang Hampir Lima Dasawarsa

Azib Hussain; Muhamad Zuhaili Saiman, Mohd Kamil Ahmad, Shukri Yahya — Fri, 01 Dec 2023 00:00:00 +0800

Kajian ini mengetengahkan analisis tematik terhadap pandangan hukum yang dikeluarkan oleh Jawatankuasa Muzakarah Majlis Kebangsaan Bagi Hal Ehwal Agama Islam Malaysia (MKI) dalam bidang muamalat. Skop tempoh pandangan hukum dianalisis bermula dari tahun 1971 hingga 2020, iaitu sepanjang tempoh 49 tahun. Analisis pandangan hukum dipersembahkan berdasarkan tema dan isu meliputi zakat, wakaf, emas, pewarisan, KWSP, pelaburan, pinjaman, perbankan, insurans dan takaful, tabung haji, pajakan dan baitulmal. Sumber data kajian antaranya diperolehi daripada buku Kompilasi Pandangan Hukum Jawatankuasa Muzakarah Majlis Kebangsaan Bagi Hal Ehwal Agama Islam Malaysia (MKI) edisi ketujuh yang telah diterbitkan oleh Jabatan Kemajuan Islam Malaysia (JAKIM) pada tahun 2021. Reka bentuk kajian berbentuk kualitatif dihuraikan secara analisis deskriptif berpandukan tema menggunakan metode induktif, deduktif dan komparatif. Dapatan kajian menemui empat aspek utama yang boleh dikemukakan sebagai analisis tematik iaitu; [i] Pendalilan dan keterangan penghujahan; [ii] Metodologi dan bahan rujukan; [iii] Pertentangan fatwa, dan; [iv] Sulit dan rahsia. Di akhir perbincangan, kajian ini mengesyorkan beberapa cadangan pemantapan terhadap pandangan hukum muamalat seperti aspek persembahan kandungan jawapan pandangan hukum serta deklarasi dan hebahannya.

This study highlights the thematic analysis of the legal views issued by the Muzakarah Committee of the National Council for Islamic Religious Affairs of Malaysia (MKI) in the field of muamalat. The scope of the period of legal opinion analysed starts from 1971 to 2020, which is a period of 49 years. Analysis of legal views is presented based on themes and issues covering zakat, waqf, gold, inheritance, EPF, investment, loans, banking, insurance and takaful, Hajj fund, leasing and Baitulmal. The data source for the study was obtained from the seventh edition of the book Compilation of Legal Views of the Muzakarah Committee of the National Council for Islamic Religious Affairs of Malaysia (MKI) which was published by the Malaysian Islamic Development Department (JAKIM) in 2021. The design of the qualitative study was described in a descriptive analysis based on themes using inductive, deductive and comparative methods. The findings of the study found four main aspects that can be presented as a thematic analysis, namely; [i] Argument and evidence of argumentation; [ii] Methodology and reference materials; [iii] Fatwa opposition, and; [iv] Confidential and secrecy. At the end of the discussion, this study recommends several suggestions for strengthening the legal view of muamalat such as the aspect of presenting the content of the answer based on legal view as well as its declaration and publication.

Keywords: Thematic analysis, muamalat legal view, MKI Muzakarah Committee

Accounting Ethics Education On Ethical Behaviour of Accounting Graduates In Malaysia

Fri, 01 Dec 2023 00:00:00 +0800

The rising corporate scandals caused by unethical accountants have concerned various parties, especially the stakeholders. These scandals, whether in public or private sectors, will impact the economy and reputation of a country. Therefore, the role of ethical accountants in providing reliable information for decision-making is a very crucial and should be addressed seriously. Thus, the education sector is believed to be one of the ways to produce graduates with good technical skills, knowledge, and high morality to make the best judgement for society. The research is conducted to assess the influence of accounting ethics education (ethics courses and teaching styles) on the ethical behaviour of accounting graduates in Malaysia. This study uses questionnaire which distributed to accounting graduates from MIA-accredited universities. 70 usable responses were received and PLS-SEM is used to analyse the data. This study found that teaching styles used in teaching ethics courses have a positive and significant relationship on the ethical behaviour of accounting graduates in Malaysia. However, ethics courses offered in the accounting program at the university was found not be significant. thus, it is suggested that lecturers need to use various methods of teaching in delivering ethics courses to enhance the ethical behaviour of accounting graduates in Malaysia.

Muslims’ Motivation To Patronize Wasiyyah (Islamic Will) Services: Does religiosity Acts As a Moderator In The Relationships?

Fri, 01 Dec 2023 00:00:00 +0800

Frozen assets in the country may be alleviated via wasiyyah services, which has long been considered a possible solution in Malaysia. However, despite the relevance of wasiyyah services in Malaysia, the penetration rate remains low. Self-determination and satisfaction in patronizing wasiyyah services are the focus of this research. There was also an investigation into how religiosity moderates the relationship between self-determination and satisfaction. The research framework consists of 8 hypotheses that predict four direct relationships and four moderation effects. The model used the principle of self-determination to explain the relationships. This research focuses on Muslim consumers in Malaysia who have already patronized wasiyyahservices. The data was gathered using an online survey, and 180 valid data were used to validate the study model. Data analysis was conducted using SPSS v27 and SmartPLS 4.0. The results stated that SDT constructs which are autonomy and relatedness have significant and positive and influence over satisfaction in patronizing wasiyyah services. However, competence did not have positive and significant influence over satisfaction. Furthermore, no moderation effect of religiosity could be found in this study. Findings suggest that religiosity has not moderated the relationship between SDT constructs and satisfaction. It is intended that this research can provide insights for industry players to enhance and develop sustainable marketing strategies to entice more Muslims to utilize the wasiyyah services, which might ultimately help in resolving the frozen asset problems.

The Impact Of Islamic Financing Products On Islamic Banks Profitability: Case Of Al Rayan Bank (Qatar)

Larabi Moustapha, Troubia Nadir — Fri, 01 Dec 2023 00:00:00 +0800

This study aims to determine the effect of islamic financing products on Islamic banks profitability of Al Rayan Islamic Bank. This research uses Quarterly data of Al Rayan Bank for 2011Q1-2023Q1.The variables used in this study are independent variables, Musharaka, Murabaha, Istisna’a and Ijarah financing. While the dependent variable is, the Islamic bank's profitability measured by (ROE).The study used ARDL Model to analyze the short and long-term relationships between variables. Data collected were analyzed by using EViews10 software. ARDL bounds test findings shown that there is a cointegration relationship between bank profitability and Islamic financing Products variables in the long run. The results of the long-run analysis show that Musharaka financing has a positive and significant effect on ROE at the 5% level. Murabaha financing has a negative and significant effect on ROE. Meanwhile, the Istisna’a and Ijarah variables have no significant effect on ROE. The short run dynamics show that there is a negative and significant effect of Murabaha and Ijarah financing on the profitability of the Islamic bank, while lagged value of Murabaha LMUR(-1) has a positive and significant effect on the profitability index of the Islamic bank. Simultaneously, there is no relationship and effect of Musharaka and Istisna’a on the profitability of the Islamic bank in the short term

Penalties For Cancelling Locked Gold Purchase Orders In Online Trading

Muhamad Zuhaili Saiman, Abdul Azib Hussain — Fri, 01 Dec 2023 00:00:00 +0800

Lock price gold transactions are becoming increasingly popular among gold buyers because buying gold is easier online. The lock price method gives the buyer a 24-hour period to make a payment with a price that has been locked without changing the value during that period. The lock price method is based on the concept of wa'd that is allowed, which is just a promise, not a sales contract. The problem is when the seller or company sets a fine for the buyer who cancels the transaction such as 5% of the lock price gold price. The setting of the fine makes binding between the seller and the buyer as if there had been a deferred sales contract which is not allowed in transactions involving usury (ribawi) items. This study aims to analyze Shariah law regarding the setting of the fine, which makes the concept of wa'd, which was originally just a promise to the binding process that forms a deferred sales contract. The design of this study is qualitative through a literature review with content analysis and documents from secondary sources such as theses, journals, and academic articles related to the issue of research. At the end of the discussion, this paper recommends some suggestions for improvement in the shariah issues that occur in gold transactions related to the lock price method based on the formation of the proposed guidelines.

The Influence Of Marketing, Pricing And Promotion On Gen Z’s Purchase Behavior Of Halal Cosmetics In Indonesia

Fri, 01 Dec 2023 00:00:00 +0800

As This study investigates the influence of marketing mix (product, price, place, and promotion), on purchasing behavior of Indonesian Gen Z when buying Halal cosmetics. The objective of this study was to enhance the current understanding and bridge the gaps in existing literature by examining the marketing effects and cognitive factors associated with Gen Z’s purchasing behavior, as previous studies in Indonesia have mainly focused on Halal food and pharmaceutical consumption. There is a need to enter this Halal sector because cosmetics are now regarded as a primary requirement, and the Halal cosmetics business's growth will affect any country's GDP. The study sets out to investigate the impact of TPB constructs on purchasing behavior of Gen Z regarding Halal cosmetics products. The proposed model identifies the factors that shape the purchase intention of Gen Z towards Halal cosmetics and analyze how these marketing mix factors impact their attitude. The quantitative study was conducted on the island of Java, with data obtained from 500 respondents. The data was analyzed using Structural Equation Modeling (SEM) with the PLS (Partial Least Square) approach with the SmartPLS application. The study found that marketing mix elements exert influence on the purchasing behavior of Indonesian Gen Z when purchasing Halal cosmetics. These findings contribute not only to advancing theoretical knowledge but also provide practical implications for the industry players.

Spectrum Of Consumer Awareness In Islamic Finance: Takaful Industry In Malaysia

Nur I'ffah Muhammad Nasir, Prof Datin Dr Rusni Hassan, Ahmad Zamri Osman — Fri, 01 Dec 2023 00:00:00 +0800

This paper attempts to provide an overview of the consumer awareness of takaful by introducing categories that exist in the spectrum of consumer awareness. This is important to ensure the efforts taken in promoting consumer awareness of takaful are delivered in a comprehensive and effective manner. It also addresses the role of takaful operators related to promoting consumer awareness of takaful. The study adopts qualitative-based research. Primary data is gathered using semi-structured interviews and content analysis is undertaken to identify and interpret the data obtained from the interviews in developing the categories of consumer awareness. It has been discovered that the spectrum of consumer awareness of takaful can be categorized into four different categories which are awareness in terms of (1) importance of takaful coverage, (2) takaful product features, (3) takaful as a Shariah- compliant alternative to conventional insurance and (4) consumer’s rights and responsibilities to the takaful contract. The study also finds that the takaful operators in the industry need to collaborate and work as a whole in the effort to promote consumer awareness of takaful. This study appears as a primordial attempt to discuss and identify the categories that exist in the spectrum of consumer awareness with reference to the takaful industry in Malaysia; while other studies related to consumer awareness of takaful are more focused on examining the level of knowledge and awareness of consumers in takaful. This study has the potential to be applied in other sectors of Islamic finance such as Islamic banking and Islamic capital market.

Analysis Of Intention To Use Digital Islamic Banking Among University Students In Indonesia

Fri, 01 Dec 2023 00:00:00 +0800

The current growth of digital banks is accelerating. This can be seen from the number of users experiencing significant growth throughout the world, including Indonesia. Perceived usefulness and religiosity are important things to create attitude. If these things and social influence as well as features are perceived by potential users, it can lead to intention to use. The purpose of this research is to analyze the effect of perceived usefulness and religiosity through attitude and social influence as well as features as exogenous variables on intention to use on Islamic Digital Banks. This study uses quantitative research methods using SEM-PLS analysis techniques. Data collection was obtained through a Likert scale questionnaire. The sample collection used a convenience sampling technique with a sample size of 106 respondents. The sample criteria in this study were Muslim university students throughout Indonesia aged 20-24 years. The results indicated that perceived usefulness and religiosity have a positive influence on Intention to Use through Attitude towards Islamic Digital Banks. Meanwhile, social influence and features have a direct and significant positive effect on intention to use on Islamic Digital Banks. The conclusion of this research suggest that Islamic digital banks should actively coordinating with fatwa-making institutions to jointly declare that Islamic digital banks are not prohibited by Islam. Thus, the public will be more assured to use Islamic digital bank services, so that the number of customers will increase.

Sustainable Finance: A study On Malaysia’s Regulatory Framework On Sustainable Banking And Its Implementation By Selected Islamic Banks In Malaysia In Support Of Sustainable Development Goals.

Zuraida Rastam Shahrom, Sherin Kunhibava — Fri, 01 Dec 2023 00:00:00 +0800

In 2018, Bank Negara Malaysia (BNM), the central bank of Malaysia issued the Strategy Paper on Value-based Intermediation (VBI). VBI aims to deliver the intended outcomes of Shariah through practices, conduct and offerings by Islamic financial institutions (IFI)s that generate positive and sustainable impact to the economy, community, and environment. To assist IFIs to translate VBI into real banking practices and offerings BNM also issued guidance documents, one of which is the guidance document on Value-based Intermediation Financing and Investment Impact Assessment Framework (VBIAF). BNM has also issued the Climate Change and Principle-based Taxonomy (CCPT) which specifically addresses climate change. This article examines the VBI, VBIAF and the CCPT and investigates the adoption of the VBI, VBIAF and CCPT by three Islamic banks (IB)s in Malaysia. It aims to provide an understanding of the regulatory frameworks and how the adoption of the frameworks has influenced the offerings, practices, and operations of these banks towards the triple bottom line approach in support of sustainable development goals. From the study it is found that the IBs have initiated the implementation of an impact-based risk assessment and management consistent with the VBIAF and assessment of climate risk based on the CCPT, however these are still at the preliminary stages for the IBs. Nonetheless, what is encouraging is that all the three IBs have implemented various VBI-related initiatives in line with the underpinning thrusts of VBI. This paper illustrates how these various VBI-related initiatives by the IBs have assisted the banks in supporting sustainable development.

Islamic Social Finance In Addressing Poverty Reduction And Economic Growth: Using Structural Equation Modeling

Tijjani Muhammad, Fahd Al-shaghdari, Shariff Muhammad Ibrahim — Fri, 01 Dec 2023 00:00:00 +0800

Islamic social finance is one of the sources of fund in the Islamic economic system. It refers to voluntary philanthropic activities that have a unique presence in Islam. Islamic law is the first to define and regulate Zakat and Waqfs as civil society institutions. Currently, microcredit and microfinance programs are unsuccessful in reducing poverty and income inequality in Northern Nigeria. Islamic social finance institutions are promoting programs such as offering free education, scholarships, free medical care, and orphanage activities around the globe. However, in Nigeria, such Islamic social finance is currently growing slowly. This paper investigates people's perception of reducing poverty and promoting sustainable economic development in Northern Nigeria. The study employed random sampling using Structural Equation Modeling for the analysis. Findings indicate the relationship between Waqf and sustainable economic development and Zakat and sustainable economic development as a direct effect. The findings indicated that Waqf and Zakat significantly reduce poverty, and Poverty reduction promotes and enhances sustainable economic development in Northern Nigeria. The study further suggests and recommends that the Northern states, where the majority of the citizen are Muslim, deserve serious consideration for developing Zakat and Waqf institutions in the region to assist in reducing the vulnerable group in society.

The Impact of Board of Directors' Independence on Corporate Social Responsibility Disclosure in Palestinian Companies

Omar Tarda, Hasnah Haron, Nathasa Mazna Ramli, Supiah Salleh — Fri, 01 Dec 2023 00:00:00 +0800

Corporate social responsibility (CSR) is a comprehensive approach of the company that determines the amount of the organisation's contribution to society and the use of its available resources in a responsible manner. Previous statistics have shown that the contributions of Palestinian companies towards social issues are still limited, and corporate social responsibility disclosure (CSRD) is at a low level. This paper aims to examine the level of CSRD of Palestinian companies and to examine the relationship of board of directors’ (BOD) independence on CSRD. The study employs OLS linear regression analysis to analysis of data using a sample of 31 companies listed on the Palestine Stock Exchange (PSE) during the period from 2012 to 2021. The theoretical framework of agency theory will be adopted to comprehend the relationship between the variables under investigation. The findings reveal that the level of CSR disclosure in Palestinian companies included in the sample of study is 29.5%.The results of the study also, indicated that the positive and significant relationship between BOD independence and CSRD.