Norfaridah Ali Azizan, Amirul Afif Muhamat, Sharifah Faigah Syed Alwi, Husniyati Ali and Amalia Qistina Casteneda Abdullah
Waqf (endowment) lands constitute as among the highest types of waqf (endowment) properties in Malaysia; yet it is still unable to reach its maximum potential due to various…
Abstract
Purpose
Waqf (endowment) lands constitute as among the highest types of waqf (endowment) properties in Malaysia; yet it is still unable to reach its maximum potential due to various challenges such as capital, location, legal and administrative issues. Therefore, this study intends to explore these issues by focussing on the two states in Malaysia (Selangor and Perak) that have fertile lands but different management authorities.
Design/methodology/approach
There were series of interviews that had been conducted with ten (10) key informants who are experts and practitioners in the areas of Shariah (Islamic law), farming, agribusiness, land management and waqf.
Findings
Findings exhibit that constraints and challenges that had been highlighted in the previous literature still exist (although some improvements had been made), but there is emerging theme that the study intends to highlight which is on the needs to secure market for the agribusiness produce and the potential role of anchor company in the agribusiness. It is pertinent that for agribusiness to thrive, selecting the right anchor company that has the capacity to address the challenges is necessary. This study posits two anchor company models (Waqf Trustee-Anchor Company and Waqf Trustee-Anchor Company-Community Farmers) that can be applied for agribusiness on the waqf lands.
Research limitations/implications
This study is based on the Malaysia's context influenced by specific country's features. Nevertheless, such findings can still be used as reference or benchmark by other endowment trustees in other countries especially for the Muslim countries as well as the non-Muslim countries that have significant Muslim populations.
Social implications
The suggested models have potentials to improve the living condition of the B40 (below 40% household income) in Malaysia because the models encourage their participation in the agribusiness activities.
Originality/value
This study focusses on the agribusiness, which is rarely being given attention in previous literature in the context of endowment lands. Therefore, this article bridges the literature gap and at the same time attempts to provide suggestion to address the pertinent issue – the underutilised endowment lands.
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Amirul Afif Muhamat and Ronald McIver
As custodians of takaful contributors’ tabarru’ (donation) funds, takaful operators are expected to fulfil a stewardship role propagated under the precepts of Islam. The purpose…
Abstract
Purpose
As custodians of takaful contributors’ tabarru’ (donation) funds, takaful operators are expected to fulfil a stewardship role propagated under the precepts of Islam. The purpose of this paper is to analyse takaful operators’ stewardship, focusing on investment practices.
Design/methodology/approach
Structured interviews were conducted with senior investment staff from all of Malaysia’s takaful operators. Questions, developed using Delphi-style techniques, allowed a five-point Likert scale response addressing specific issues revolving around seven dimensions of governance quality – using the Malaysian Rating Corporation’s (MARC’s) governance rating guidelines for Islamic financial institutions (IFIs). Interviewees’ responses were assigned composite scores.
Findings
Malaysia’s takaful operators score well on most prescribed governance quality dimensions, although performance varies between operators and across dimensions. Areas for improvement are identified, especially regarding disclosure of information and contributor involvement in takaful operators’ management.
Research limitations/implications
Predetermined questions restrict flexibility in obtaining takaful operators’ information; however, end-of-interview, open-ended questions were asked to tap interviewee opinions on pertinent issues. A focus on takaful operators’ governance quality and stewardship of investments means findings may not be representative of all operational aspects of their businesses.
Practical implications
This study identifies governance quality guidelines which takaful operators may benchmark against and identifies where best to focus attempts to improve performance. These guidelines will also assist regulators assessing takaful operators’ stewardship performance.
Originality/value
This study uses governance quality as an indicator of stewardship, a concept aligned with the precepts of Shariah. It covers the opinion of the takaful industry in a country with a comprehensive Islamic financial system, Malaysia, extending understanding of takaful operators’ governance quality.
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Amirul Afif Muhamat, Mohamad Nizam Jaafar and Norfaridah binti Ali Azizan
The purpose of this paper is to measure the sensitivity of the banks' customers towards the adoption of Arabic terminology in the Islamic banking industry.
Abstract
Purpose
The purpose of this paper is to measure the sensitivity of the banks' customers towards the adoption of Arabic terminology in the Islamic banking industry.
Design/methodology/approach
A sample of 100 respondents who were mainly banks' clients was surveyed through personally administered questionnaire and only 60 questionnaires are usable for the study. The remaining 40 questionnaires were rejected due to incomplete answers and error. The survey executed based on convenience sampling method. The study was conducted at Shah Alam for nearly two and a half months and the city chosen due to the exclusivity of the city's demographic; significant availability of white collar employees as its residents which illustrate a high income population, high literacy and high academic qualification.
Findings
The majority of the respondents agree that Arabic terminology gives competitive edge to the Islamic banks but at the same time they indicate that the catchy Arabic name will give them difficulty in gaining fast information about and comprehension of the product. The trend depicted by the non‐Muslims respondents when answering the questionnaire indicates that, in many cases, they are at the negative side on every statement given. Thus, it signifies a need from the Islamic banking side to manage this issue, since the non‐Muslims are majority clients of the industry in Malaysia.
Research limitations/implications
The response rate of 60 per cent for this study is considered good. However, the availability of more respondents would give higher rate of representation.
Practical implications
This paper provides insights for the interested parties to know the banks' clients' needs from the Islamic banking sector and will help to increase the number.
Originality/value
This paper measures the responses of banks' customers towards the adoption of Arabic terminology, in a multi‐racial society in which limited study has been done.
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Amirul Afif Muhamat, Norlida Jaafar, Hardi Emrie Rosly and Hasman Abdul Manan
The purpose of this paper is to evaluate and measure the business model of the state welfare organization in assisting and ensuring the business success of its entrepreneurs or…
Abstract
Purpose
The purpose of this paper is to evaluate and measure the business model of the state welfare organization in assisting and ensuring the business success of its entrepreneurs or zakat recipients.
Design/methodology/approach
A survey was employed to obtain feedback from the recipients of zakat for small businesses under the scheme of entrepreneurial asnaf zakat.
Findings
The respondents, in general, agree that the variables for the study – capital, courses or training and knowledge or know‐how – are important to them in helping the zakat recipients to succeed in their businesses, which then translates into a better standard of living. Positive correlation is shown for the three variables in determining the success rate of the programme and regression analysis shows that only capital and an asnaf's knowledge is significant in determining an asnaf's entrepreneurial success, which leaves training as insignificant.
Research limitations/implications
This paper explores the other side of zakat distribution, in the sense that many studies focus on the distribution of zakat collection from the zakat payers to the asnaf whereby the distinction of this study is that it evaluates the asnaf that want to transform their condition through the entrepreneurial asnaf programme. This is rarely investigated due to the lack of a similar programme in other places, even within Malaysia. The limitation for the study is in terms of solid support from the respective parties. This includes the management of Lembaga Zakat Selangor, due to the bureaucratic process, albeit understandable, to protect certain confidential information, and also unfavourable respondents' attitude when being questioned, which is a normal phenomenon in survey study.
Practical implications
This paper provides insights into the implementation of entrepreneurial zakat, which can be emulated by other zakat collection agencies to develop similar or better innovative programmes for the benefit of the community.
Originality/value
This paper is unique since the feedback is given by the entrepreneurs who receive financial assistance from the state zakat organization in Malaysia, which means the information is derived from the original source. The findings provide good information for practitioners as well as for academicians and students.