Islamic Finance Provides Better Solutions in Overcoming the Financial Distress Ascribable to COVID-19: Evidence from Malaysia

Abstract

This chapter looks at the approaches taken by Malaysian Islamic banks and the central Shariah body in assisting the financial consumers going through the COVID-19 pandemic economic distress in consequence of the Movement Control Order and the socially responsible investing (SRI) opportunity Malaysian government put up through the Sukuk Prihatin in order to rebuild the economy. It is found that through shariah principles of ta'awun (mutual assistance), Islamic finance, and with numerous Islamic jurisprudential approaches under the shariah could provide better solutions to overcome the economic hardship experienced due to the COVID-19 pandemic. The paper showcases the approaches taken in Malaysia relying on the Islamic finance landscape in overcoming the financial hardship suffered by the financial consumers due to COVID-19 pandemic and in rebuilding the economic through a unique mutual assist opportunity.

Citation

Lee, M.J. (2022), "Islamic Finance Provides Better Solutions in Overcoming the Financial Distress Ascribable to COVID-19: Evidence from Malaysia", Hassan, M.K., Muneeza, A. and Sarea, A.M. (Ed.) Towards a Post-Covid Global Financial System, Emerald Publishing Limited, Leeds, pp. 261-269. https://doi.org/10.1108/978-1-80071-625-420210014