Search results

The purpose of this paper is to deliberate on the establishment of zakat (Islamic alms) on oil and gas in Malaysia. Being one of the five Islamic pillars, zakat contributes significantly to the country’s socio-economic development and prosperity. However, in Malaysia and other Islamic countries, there is not yet a proper mechanism for calculating zakat on extracted minerals. Similar to gold and silver, oil and gas are valuable minerals, which, upon extraction, are subject to zakat payment. In Malaysia, however, this is not the case.

This study uses a qualitative method. It presents a thorough review on the stipulation for paying zakat on minerals, specifically oil and gas. The deliberation is based on secondary data entailing a comprehensive content analysis of prominent books on the subject, current zakat rulings and legal acts on oil and gas.

Oil and gas are subject to zakat payment, as indicated in several Qurʾānic verses and based on the academic reasoning of Muslim scholars. The zakat calculation for oil and gas entails the nisāb (minimum threshold value of the assets) but not the ḥawl (the requirement for one full Islamic year of ownership for the assets), by analogy with zakat on agricultural produce. Despite the obligation to pay zakat on minerals under the zakāt al-māl (alms due on wealth) category, oil and gas is yet to be fully subject to this practice in Malaysia, although the country is known as an oil-producing Muslim country. Several legislative acts covering the managerial and business side of oil and gas operations have long been established, but the provision on zakat remains unclear. Hence, comprehensive legislation is needed to fine-tune the Malaysian oil and gas system, particularly with regard to zakat.

This study relies mainly on secondary data and literature without performing any empirical investigations.

In terms of academic implication, this study enriches the existing body of knowledge on zakat. Practical implications would include enhanced decision-making concerning zakat on oil and gas on the part of zakat institutions, policymakers and the government of Malaysia.

This study provides practical and academic contributions to the deep understanding of zakat on oil and gas, which has received very little attention in the existing body of literature. Despite being limited in literature, this is a breakthrough study that sheds light on zakat on oil and gas.

This paper aims to construct a conceptual framework which explains the relationship between governance of zakat institutions and zakat payment compliance by using the organisational legitimacy theory.

This paper adopts content analysis and a review of multidisciplinary literature that primarily relate to zakat institutions, public governance and compliance behaviour.

The paper has developed a model, adapted from Abioye et al. (2013), concerning the influence of governance mechanisms on zakat payers’ compliance using trust as a moderator. The model comprises four governance mechanisms which influence zakat payment compliance. The four mechanisms include the board and leadership attributes, transparency and disclosure practices, stakeholder management practices and procedural justice. Trust has a moderating effect on the relationship between governance and zakat compliance.

This model is applicable to regulated zakat systems, where the state has established zakat institutions and regulations for the collection and distribution of zakat, such as Saudi Arabia, Pakistan, Sudan and Malaysia.

This paper proposes a model, based on Abioye et al. (2013), to explain the influence of governance on zakat payment compliance. The novelty of the study is the addition of one new critical variable, procedural justice, to the Abioye et al.’s (2013) framework. Secondly, the model is proposed for regulated zakat jurisdictions.

The purpose of this paper is to develop a structural relationship model to study the relationship between causes and effects of poor communication and information exchange in construction projects using Smart-PLS.

The first method of this research is to identify the causes and effects factors of poor communication in construction projects from the extant of literature. The data used to develop the model was collected using a questionnaire survey, which targeted construction practitioners in the Malaysian construction industry. A five-point Likert type scale was used to rate the significance of the factors. The factors were classified under their relevant construct/group using exploratory factor analysis. A hypothetical model was developed and then transformed into Smart-PLS in which the hypothetical model suggested that each group of the cause factors has a direct impact on the effect groups. The hypothesis was tested using t-values and p-values. The model was assessed for its inner and outer components and achieved the threshold criterion. Further, the model was verified by engaging 14 construction experts to verify its applicability in the construction project setting.

The study developed a structural equation model to clarify the relationships between causes and effects of poor communication in construction projects. The model explained the degree of relationships among causes and effects of poor communication in construction projects.

The published academic and non-academic literature introduced many studies on the issue of communication including the definitions, importance, barriers to effective communication and means of poor communication. However, these studies ended up only on the general issue of communication lacking an in-depth investigation of the causes and effects of poor communication in the construction industry. The study implemented advanced structural modeling to study the causes and effects. The questionnaire, the data and concluding results fill the identified research gap of this study. The addressed issue is also of interest because communication is considered one of the main knowledge areas in construction management.

Small and medium-sized firms (SMEs) are typically reported to have a limited interest in broader societal concerns across the world. As a result, the purpose of this study is to develop a model of SME’s strategic philanthropic performance in light of the societal reactions to the COVID-19 issue, particularly in terms of the intervention of corporate spirituality and the solid regulatory motive behind these.

A systematic mixed review analysis has been executed to analyze the strategic philanthropic performance configuration triggered by the recent COVID-19 crisis, in which over 369 publications are read and reviewed by the authors. It has also established the reliability and validity of literature analysis. Also besides, a short form of qualitative investigation has been used to support the direction of the study.

Through regulatory adjustments, the study's findings effectively developed a strategic philanthropic performance configuration for SMEs. In this case, the strategic philanthropic convergence of corporate giving, corporate volunteering, corporate foundation and food bank has the potential to help SMEs thrive in the long run. The study also discovers that corporate spirituality might potentially mediate between appropriate regulations and strategic philanthropic performance of SMEs in the context of a supportive external environment.

Prior empirical attempts are subsequently required to inquiry about the proposed conceptualization from different perspectives.

The decision-makers of SMEs, with the efficient implementation of the proposed outline, will use the understanding given for their required actions to develop the competitive advantage in terms of social concerns. On this note, the outcomes of the study can also enhance business differentiation and competitiveness. It can also serve as a strategic guideline for firms to develop organizational values for long-term survival.

In the COVID-19 reality, SMEs will contribute to the concerns through philanthropy activities that are better suited for both enhanced social good and greater corporate advantages. The idea can also serve as a basis for SMEs to accomplish the Sustainable Development Goals (SDGs).

To the best of the authors' knowledge, this is the first research that conceptualizes the influence of government regulation on the strategic philanthropic performance of SMEs while taking corporate spirituality into account in order to survive the COVID-19 crisis.

Tawarruq (Islamic commodity financing) has evolved as the most ubiquitous concept in Malaysia’s Islamic banking industry. Nevertheless, the extensive use of tawarruq has invoked a number of Sharīʿah (Islamic law) concerns in its practice. This study aims to investigate the Sharīʿah non-compliant (SNC) phenomena in the practice of tawarruq financing in Malaysia.

This study adopts qualitative research methodology, combining both descriptive and content analysis. A self-administered questionnaire was distributed to 16 Malaysian Islamic commercial banks to unveil the Sharīʿah non-compliance issues in the application of tawarruq in Islamic banks (IBs) in Malaysia.

The study found that some practices of tawarruq in Malaysia might not comply with the Sharīʿah, mainly due to the improper sequencing of contracts. The study also discovered that IBs adopt different approaches in dealing with SNC events and the income derived therefrom. Finally, the study noted the influence of board of director/management on certain Sharīʿah decisions particularly on the treatment of non-ḥalāl (impermissible) income.

The findings of the study serve as a reference to industry players and regulators in formulating a Sharīʿah non-compliance risk management framework for tawarruq practices.

The survey on SNC issues in tawarruq practice constitutes the first of its kind in the existing literature.

The purpose of this paper is to supply basic insights into the principle of shūrā (consultation) in Islamic banking, the idea of a centralised approach to the corporate governance of Islamic financial institutions (IFIs), the roles of a centralised Sharīʿah board as the highest authority on Sharīʿah issues and its distinguishing features from a de-centralised system and the advantages and disadvantages of the two governance systems.

In analyzing these, the paper adopts the critical legal studies approach and refers to the provisions of the Qurʾan and Sunnah, ijmāʿ (consensus) of Sharīʿah scholars and recent Islamic banking reports.

Despite the fact that the double-digit growth of the current US$2tn Islamic banking industry is a promising sign for its further expansion – expecting to cross the US$6.5tn mark by 2020 – there remains concern over the lack of standardization or rather the diversified approaches to the corporate governance of IFIs across key Islamic banking regions.

There has been much debate surrounding the issue of whether the Islamic banking industry requires a centralised Sharīʿah board at the state level to complement the Sharīʿah boards at the IFIs’ individual level in providing better supervision of the Sharīʿah-compliance of IFIs. The fact that the industry is already equipped with two prominent standard-setting agencies in the form of the AAOIFI, the IFSB does little to suggest that best governance practices – which centre around the themes of consistency, harmony and uniformity – are on the horizon, at least not whilst their issued standards and guidelines remain voluntary for IFIs.

All in all, it is aspired that this paper may assist the reader in evaluating the pros and cons of the whole concept of Sharīʿah board centralisation.

The study examines the relationship between nonaudit services (NAS) and accruals quality in Malaysia. The study also considers several important characteristics of audit committee as the determinant for accruals quality. Next, the study examines whether these characteristics mitigate the relationship between NAS and accruals quality.

The study employs descriptive analysis, univariate tests and multivariate regression to investigate the potential effect of NAS on acruals quality. Data for audit committee characteristics were hand collected from annual reports downloaded from Bursa Malaysia's website.

Based on 1,118 firm-year observations for the period 2009–2011, the study finds that NAS negatively impact accruals quality. This empirical result indicates that the economic bond that is created between auditors and clients restricts the auditors from performing their duty objectively. A fully independent audit committee weakens the negative relationship between NAS and auditor independence.

The sample period represents a limitation since it only covers three years of data. This limitation is largely driven by the nature of data collection of NAS fees.

These results contribute to Malaysia's policy deliberation to account for the effects of NAS on auditor independence and the oversight role of an audit committee. This study contributes to theoretical perspectives on accruals quality and corporate governance in Malaysia.

The novelty of this research, coupled with institutional data in Malaysia, claims the originality of this research.

This study aims to investigate the impact of entrepreneurial education (EE), financial support (FS) and role models (RMs) on one’s attitude towards entrepreneurship (ATE) and on entrepreneurial intention (EI) based on the theory of planned behaviour.

In this study, quantitative research design, a deductive approach and purposive sampling have been used to collect data from 352 individuals from various Malaysian higher education institutions. The data were analysed using partial least squares structural equation modelling.

The findings have provided interesting insights into how EE, FS and RMs have a significant impact on one’s ATE and their EI. Surprisingly, RMs did not emerge as a significant predictor of EI. However, it is worth noting that mediating relationships were of significance, indicating that one’s ATE plays a substantial mediating role between EE, FS, RMs and EIs.

To the best of the authors’ knowledge, this study is among the few that investigate the relationships between RMs, FS and EE in relation to enhancing EIs through the mediating role of one’s ATE in Malaysia. Based on the findings of this study, stakeholders in Malaysia’s education sector are being urged to develop policy guidelines for the designing and teaching of entrepreneurship education as well as to develop FS mechanisms for business start-ups. They are also being encouraged to expose students to entrepreneurial RMs to improve their ATE and their EIs.