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This paper aims to investigate the extent to which maṣlaḥah (public interest) is taken into consideration in Islamic banking operations in Malaysia, particularly in bayʿ al-ʿīnah (sale and buyback), taʿwiḍ (compensation) and ibrāʾ (rebate).

This study applies deductive and inductive methods to analyze the application of maṣlaḥah in Islamic financial transactions. Three issues in Malaysia are selected as a case study, allowing bayʿ al-ʿīnah, standardizing the rate of taʿwiḍ and stipulating the ibrāʾ clause in financial agreements. As this study is qualitative in nature, all data are analyzed based on the content analysis method.

Both the maṣlaḥah of Islamic banks and their customers were found to be considered by the Central Bank of Malaysia in the implementation of contracts and principles of Islamic banking. The first maṣlaḥah represents the viability of Islamic banks, while the second maṣlaḥah promotes fairness and transparency between Islamic banks and their customers.

This study only focuses on the contracts and principles of Islamic banking operations in Malaysia with regard to three selected issues.

This paper clarifies the practical application of maṣlaḥah in the Islamic banking industry, particularly with regard to implementing its contracts and principles.

This paper analyzes the argument of maṣlaḥah on the issues of bayʿ al-ʿīnah , taʿwiḍ and ibrāʾ in Malaysia, which are considered among scholars to be debatable issues. While many discussions focus on the legal aspect of Sharīʿah on those issues, this study emphasizes how the application of maṣlaḥah aims to solve the current problems and harmonize between Sharīʿah and reality.

This paper aims to investigate the current regulation of ibrā’ (rebate) set by the Central Bank for the Islamic banks in Malaysia and how far its original concept has been compromised to make it adaptable to the modern financial system.

This study, with regard to practising ibrā’ in Islamic banking in Malaysia, is qualitative in nature, using semi-structured interviews carried out with two types of informant: members of either the National Sharīʿah Advisory Council (NSAC) or the Internal Sharīʿah Committee (SC). All data are analysed based on the content analysis method.

The findings reveal that while stipulating an ibrā’ clause makes practising ibrā’ stray from its original concept, it has successfully tackled the current problem. However, the long-term consequences should be a concern, particularly Islamic banking products, which have been significantly influenced by the conventional system, including interest rates and the debt structure, neither of which should be identified with Islamic banking.

This study is limited because it focusses on the practice of ibrā’ in Malaysian Islamic banking. Moreover, data are collected from nine interviewees from NSAC and SC from different Islamic banks. Thus, the results cannot be generalised to other countries.

This paper provides a fresh discussion of ibrā’ from the perspective of regulators and the experience of practitioners in Malaysia, particularly in respect of aspects of Sharīʿah and current actual practice.

This paper aims to explore the viability of applying Qard Hasan as an Islamic crowdfunding financial instrument to finance micro-enterprises in Malaysia.

This is a qualitative study in which semi-structured interviews were conducted with several crowdfunding professionals concerning the application of Qard Hasan in Islamic crowdfunding. To realise the purpose of this study, the data is subjected to thematic analysis.

The finding reveals that though it is often argued that Qard Hasan is basically not a business-oriented instrument, a closer look at the framework reveals the uniqueness and flexibility of this instrument to be adopted as a viable financial instrument for crowdfunding in financing micro-enterprises in Malaysia. Although it is associated with various risks including default risk and the risk of attracting big funds. However, these risks can be managed and overcome by using FinTech mechanisms such as blockchain to carry out due diligence, monitor the project and ensure the repayment in installment.

The findings of this study may not be suitable for generalisation to all crowdfunding practices as the semi-structured interview is concentrated predominantly in Malaysia. However, it still provides valuable contributions to the Islamic crowdfunding sector in Malaysia between theory and practice.

The Qard Hasan crowdfunding framework in this study can potentially be applied to help micro-entrepreneurs reach out to financial services within their means. This framework provides means to grow the micro-enterprise sector.

Qard Hasan crowdfunding will effectively alleviate poverty by creating an avenue of opportunities for business enterprises and close the gap between the wealthy and the poor classes in society, which will eventually bring about more cooperation, more collaboration and cultivate a generous society.

In spite of the fact that Islamic crowdfunding is not a new topic in research, it lacks empirical studies, particularly qualitative analysis. As this study engages with experts in Shari’ah and crowdfunding regarding the potential application of Qard Hasan, it highlights a fresh discussion both in theory and practice.

Islamic financial institutions (IFIs) in Malaysia continue to promote Shari‘ah-compliant business and transactions. As a result, the governors have a lot to think about before issuing any fatwa or ordinance, which impacts the majority of Malaysians. Nevertheless, the point of views from the governors have not been highlighted much. This research seeks to investigate the extent to which the conception of al-Siyasah al-Shar‘iyyah is embraced by Shari‘ah committees’ leadership roles within IFIs. The importance of al-Siyasah al-Shar‘iyyah in decision-making makes abandoning the Shari‘ah principle untenable and its significant role for IFIs in Malaysia cannot be overstated. It serves as a crucial tool for decision-making by authorities and governors.

The objectives of this research are attained by examining diverse sources obtained through library research, encompassing books, journals, newspapers, websites and reports. In addition, to use an analytical method to assess the role of al-Siyasah al-Shar‘iyyah in IFIs pratical, the authors collect information through interviews with five participants actively engaged in Shari‘ah committees within financial institutions, both directly and indirectly.

The research paper concludes that al-Siyasah al-Shar‘iyyah holds significance for Shari‘ah committees in IFIs when providing legal opinions. In situations where existing madhhab-based laws prove insufficient for addressing a particular issue, the Shari‘ah committees will autonomously engage in new ijtihad to ensure effective resolution of the matter.

The implication that could have been resulted from this study is to indicate how Shari‘ah committees in IFIs structuring a set of rules and regulations embedded by al-Siyasah al-Shar‘iyyah elements to produce maṣlaḥaḥ for the ummah. This perspective is barely discussed in depth as Malaysia has unanimous scholars who work in this area. Thus, the authors attempt to bring the discussion academically and express the point of view from governors’ perspective.

In the Malaysian context, where Islamic banks and financial institutions are overseen by Shari‘ah committee members and the Central Bank of Malaysia, this study delves into the practical experiences of governors in carrying out the responsibilities of al-Siyasah al-Shar‘iyyah within the decision-making process. The objective is to investigate the perspectives of Shari‘ah committees when they encounter scenarios where prevailing madhhab opinions prove inadequate in addressing contemporary issues within the country.

This paper aims to explore the applicability of mudharabah (partnership) based crowdfunding as an alternative fund to support the book publishing industry, particularly for self-publishers and small publishers.

This is an exploratory qualitative study whereby the data are obtained from library research and empirical studies. As for empirical data, it is sourced from semi-structured interviews with three types of groups: the book industry, the crowdfunding platform and Shari’ah experts.

The study found that mudharabah crowdfunding could overcome the book publishing industry’s financial problems. However, this requires special requirements for applicants (writers or publishers) to avoid fraudulent cases, as well as committed management in running the platform and a substantial crowd of loyal funders to maintain the platform. Simultaneously, even though mudharabah is a risky instrument, the risk can be mitigated by closely monitoring the progress of the project. As a result, this study proposes a special framework for mudharabah based crowdfunding to fund self-publishers and small publishers in Malaysia.

This is an exploratory study, in which its findings may not be generalised due to the limited number of participants.

A special model for mudharabah based crowdfunding can be established through an online platform to support book publishing in Malaysia.

As this mudharabah crowdfunding model has the potential to support the book industry financially, it could also nurture talented young writers while also preserving knowledge.

This study highlights a fresh and in-depth discussion both in theory and practice in proposing a special Islamic crowdfunding framework based on mudharabah as an alternative fund for the book industry, particularly to support self- and small publishers.

The purpose of this study is to analyse potential models of Islamic crowdfunding as an alternative financing option for micro-entrepreneurs in Malaysia. While crowdfunding has gained traction as an alternative funding source for businesses, it is unclear how far this concept can benefit a group of micro-entrepreneurs in Malaysia.

This study uses a qualitative research approach by using data collected through semi-structured interviews with several experts and practitioners in crowdfunding, Shariah and entrepreneurship. Prior to discussing the facets of the findings, the data were analysed based on a thematic approach.

The findings reveal that while previous works of related literature suggest crowdfunding as a viable alternative financing option for entrepreneurs and their businesses, in reality, its practical implementation presents challenges. Numerous micro-entrepreneurs need more training in the areas of management and marketing. Such concerns raise questions about their ability to attract potential project backers. With the proper selection of Shariah contracts and several approaches to risk management, Islamic crowdfunding can potentially become an alternative funding source for microbusinesses.

Given the exploratory nature of this study regarding the applicability of Islamic crowdfunding as an alternative fund for micro-entrepreneurs, its findings may not fully encompass Malaysia’s context because of the limited number of participants involved.

The findings of this study offer guidelines on how to implement Islamic crowdfunding for micro-entrepreneurs. Consequently, Islamic crowdfunding has the potential to alleviate the government’s burden of providing funds for micro-enterprises and enhance their skills and mentality to be more independent, creative and able to promote their products.

While Islamic crowdfunding can be an alternative opportunity for business enterprises and community-based projects, it promotes the spirit of cooperation and collaboration within society.

Although Islamic crowdfunding is a topic that has been discussed previously, empirical investigations in this area remain scarce, mainly through qualitative approaches. Distinguishing from prior literature, this study analyses several potential models of Islamic crowdfunding from the perspectives of experts, practitioners and related agencies for micro-entrepreneurs. Moreover, this study bridges insights from related literature so that they offer practical applications to support micro-entrepreneurs in Malaysia.

This paper aims to explore the practical role of maqasid al-Shari’ah in applying fiqh muamalat to the reality of modern banking practices. As the modern financial environment is complicated and not too conducive for Islamic banking operations, a special approach based on maqasid al-Shari’ah is needed to harmonize between revelation and reality.

The data of this study are obtained through literature and empirical data. As for the empirical, the exploratory qualitative approach is applied in which three members of the Shari’ah Advisory Council (SAC) of Bank Negara Malaysia (BNM) as well as three Shari’ah committees (SC) of Islamic Finance Institutions are selected as interviewees. As a result, several themes are defined from the interview data before they are analyzed based on the concept of maqasid al-Shari’ah.

The findings reveal that several practices are prevalent in developing Islamic banking products, including replicating conventional products to be Islamic ones, imposing wa’ad (unilateral promise) to strengthen the combination of different contracts into one product, and adopting floating rate with ibra’ (rebate) for financing price, which are needed to sustain this industry in modern financial system. In this regard, maqasid al-Shari’ah is applied to reconcile between rulings in fiqh muamalat and banking environments, so that these rulings can be adopted pragmatically without compromising Shari’ah principles.

This study has its limitations, as it focuses on the extent of the role of the maqasid al-Shari’ah in Islamic banking operations, excluding other segments of Islamic finance such as Islamic capital markets and Islamic insurance. Moreover, as data are collected from only six interviewees from SAC and SC of Malaysia, the results cannot be represented for the whole Islamic banking practices of this country.

This study provides several policy recommendations regarding the practice of the maqasid al-Shari’ah in Islamic banking. These may be useful for all Islamic finance players, including regulators and bankers in introducing policies and products in this area.

This study has the potential to enhance the confidence of the Muslim community, particularly in Islamic banking to support its existence and practices. The impact of such optimism will lead to an increase in demand for Islamic banking products, hence encouraging Islamic banking to sustain and update its activities in line with maqasid al-Shari’ah.

This paper offers a practical approach as regards to how the maqasid al-Shari’ah can play a significant role in sustaining the Islamic banking industry, particularly in circumstances that are not favorable to its progress. It is indispensable to prevent the Islamic rulings from being diverted in the name of human well-being and to avoid basing them on a literal textual approach. Moreover, as it provides empirical studies on the issue of replication, wa’ad, floating rate and ibra’, the discussion on this subject becomes more practical.

This paper aims to explore the potential application of mudharabah (silent partnership) as an investment instrument through an Islamic crowdfunding platform.

This is a qualitative study in which semi-structured interviews were carried out with several experts regarding the application of mudharabah in Islamic crowdfunding. To achieve the purpose of this study, the data is analysed based on thematic analysis.

The findings reveal that even though Islamic crowdfunding could be an efficient platform through financial technology (Fintech), mudharabah is not an entirely ideal instrument, particularly for equity-based Islamic crowdfunding because of its high risk. These include fraudulent projects, insufficient regulations to protect investors’ money and the structure of mudharabah itself in which it is in the form of profit-sharing contract. However, the risk can be mitigated by using Fintech as a way to closely monitor the project, enhancing regulatory aspects to protect investment funds, enhancing mudharabah practice and creating awareness among all involving parties in terms of mudharabah philosophy.

This study is limited because it focuses on the current practice of Islamic crowdfunding in Malaysia, given that it is still a new industry. Currently, there is only one Islamic registered equity crowdfunding platform. Also, as the number of interviewees in this study is limited because of purposive sampling, the findings may be considered the result of an exploratory study.

An equity Islamic crowdfunding platform based on mudharabah can be proposed, particularly to support micro enterprises in which they involve small capital. Also, this model can be considered for less risky ventures such as investment in food industries or technology sectors.

Mudharabah Islamic crowdfunding model could potentially support local businesses, especially for start-ups. By channelling money among society, it is not only creating a wealth circulation among society, which is one of the Sharīʿah objectives in finance, but it also promotes mutual cooperation and kindness among society members.

While Islamic crowdfunding is not a new topic in research, it lacks empirical studies, particularly qualitative analysis. As this study engages with experts in Sharīʿah and crowdfunding regarding the potential application of mudharabah, it highlights a fresh discussion both in theory and practice.

Many scholars have primarily disregarded employee motivation in the context of Western and Islamic ideas. To better understand employee motivation, this paper aims to explore a novel approach of fusing McClelland’s needs theory (i.e. achievement, power and affiliation) with Maqasid Shariah.

This study adopts a theoretical research design. There will be a thorough literature study of McClelland’s theory, Maqasid Shariah, and employee motivation. Qualitative content analysis is used to examine and compile pertinent ideas. To give a thorough framework for comprehending employee motivation from both Western and Islamic ethical viewpoints, McClelland’s theory and Maqasid Shariah are integrated.

This paper has conceptualized the integration of Maqasid Shariah’s five requirements with McClelland’s need theory. It is suggested that Maqasid Shariah and McClelland’s need theory be combined to understand employee motivation. For employees, the integration of McClelland’s need theory and Maqasid Shariah entails developing a work environment that attends to their many needs, is consistent with Islamic principles, encourages justice and equity, supports both professional and personal development and promotes social responsibility. By combining McClelland’s need theory and Maqasid Shariah, 15 propositions are developed to explain employee motivation. The study offers a measurement index to explain employee motivation based on the two theories.

The integration of McClelland’s theory of need and Maqasid Shariah offers expected positive implications. By considering the cultural and religious context in Islamic societies, researchers can adopt a more sensitive approach to studying motivation. This blend provides a holistic understanding of motivation, incorporating individual needs and broader ethical dimensions. Studies may explore the impact on prosocial behavior, organizational values, leadership practices and employee well-being. Understanding the alignment between personal motives and ethical principles can benefit organizations in diverse workplaces, emphasizing long-term sustainability and fostering employee engagement and commitment.

The integration of McClelland’s theory and Maqasid Shariah shows the potential implications to increase employee motivation. This study contributes significantly to Maqasid Shariah theory in business research by guiding ethical decision-making aligned with Islamic values, fostering inclusive workplaces and offering strategies for boosting employee morale. It emphasizes ethical practices, legal compliance and community engagement, while also encouraging sustainable business models that consider societal well-being and the environment.

This paper provides its unique value by being among the first to integrate McClelland’s theory and Maqasid Shariah and providing an innovative approach in developing a new measurement index in the context of employee motivation.

This paper aims to investigate the current mechanism of taʿwidh (compensation) from the perspective of Shariīʿah, which is used by Islamic banking in Malaysia to deal with the issue of late payment.

This study is qualitative in nature, using semi-structured interviews carried out with two types of informant – members of the National Sharīʿah Advisory Council (SAC) and the Internal Sharīʿah committee (SC) – with regard to practicing taʿwidh.

The findings reveal taʿwidh is an alternative to the interest-based late payment penalty, which is prohibited in Islam. While taʿwidh finds justification in the hadith and maʿlaʿah, in respect of sustaining the competitiveness of the Islamic banking operation, its practice is still debatable because it is determined by a special rate instead of the actual loss. This paper addresses this issue by suggesting that even though the central bank has allowed Islamic banks to regard 1 per cent as their income, they should review that amount, and claim only the actual loss. The remaining money could be used for charitable purposes, which can be conducted by Islamic banks themselves.

This study is limited because it focusses on the extent to which the current practice of taʿwidh in Malaysia has complied with Shariīʿah principles. It does not focus on gharamah (penalty), which is considered to be the second late payment penalty mechanism. Moreover, data are collected from nine interviewees from SAC and SC from different Islamic banks. Thus, the results cannot be generalised to other countries.

This paper highlights Shariīʿah concerns regarding the current application of taʿwidh. Moreover, as it uses primary data, it provides a fresh discussion of taʿwidh, from both the perspective of regulators in Malaysia and the experience of practitioners, particularly in terms of Shariīʿah compliance.