Sa’id Adekunle Mikail, Noor Suhaida Kasri, Saba Radwan Elatrash and Abideen Adeyemi Adewale
This paper aims to examine the existing practices and pertinent issues affecting Islamic banks and their customers in abandoned housing projects (AHPs) to ensure compliance with…
Abstract
Purpose
This paper aims to examine the existing practices and pertinent issues affecting Islamic banks and their customers in abandoned housing projects (AHPs) to ensure compliance with Sharīʿah and statutory requirements.
Design/methodology/approach
This study employs the qualitative research method using the inductive approach to analyze both primary and secondary data and sources. Data collection involved a series of semi-structured interviews with five volunteering Islamic banks and a representative of Abandoned Property Owners Association Malaysia (Victims). Statutory acts, regulatory policies, guidelines, directives and standards were also analyzed.
Findings
The result indicates developer’s default, underlying contracts, regulatory arbitrage and bureaucracy, attitudinal disposition of customers and sell-then-build approach as major factors of AHP’s conundrum.
Practical implications
This study has suggested both short- and long-term solutions based on the principles of justice, public interests and removal of hardship to resolve and effectively manage financial hardship indebtedness arising from housing abandonment. Further, part of the proposed solutions would also reshape housing development policies and home financing transactions.
Originality/value
The quest for this research demonstrated Islamic banking industry’s initiatives to find lasting solutions to perennial issues of AHPs.
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Noor Suhaida Kasri and Burhanuddin Lukman
The purpose of this paper is to analyze the practice of contra trading in Bursa Malaysia Securities Berhad. Through a critical examination of the practice, it aims to discuss the…
Abstract
Purpose
The purpose of this paper is to analyze the practice of contra trading in Bursa Malaysia Securities Berhad. Through a critical examination of the practice, it aims to discuss the issues from the angles of Sharīʿah and Malaysian common law.
Design/methodology/approach
The paper uses a qualitative research methodology. The information on the practice of contra trading is obtained through the Bursa Malaysia Securities Berhad’s website and literature as well as series of meetings and discussions held with Bursa Malaysia Securities Berhad. In comprehending and dissecting the Sharīʿah and legal issues, classical along with contemporary Sharīʿah literature including local and international Sharīʿah advisory bodies’ resolutions and standards have been referred to. The Sharīʿah analysis of these issues is further supported by reference to the statute and by-laws of Bursa Malaysia Securities Berhad as well as other related legal literature.
Findings
This paper finds that contra trading involves a real sale and purchase of shares; the shares are not taken into the possession of the contra trader, neither physically nor constructively; the liability of shares is not transferred to the contra trader; though the practice of profiting in contra trading may contradict the prohibition on profiting without bearing liability, the permissibility of contra trading could still be argued from the contextual approach of public interest (maṣlaḥah) and needs (hājah); and contra trading is not gambling.
Research limitations/implications
This paper is limited in its analysis to only Sharīʿah and legal perspectives. It does not cover a thorough empirical and quantitative investigation that would measure the extent of the public needs for contra trading and the real benefits that contra trading brings about to the society in the long run. Such studies will further demonstrate whether contra trading deserves a relaxation from the strict Sharīʿah ruling thus affirming the issue of permissibility of contra trading. Moving forward, this paper recommends ways to address the predicaments faced in the contra trading practices as well important research areas that could be taken up in future.
Originality/value
This paper provides an in-depth investigation of the practice of contra trading at the Bursa Malaysia Securities Berhad from the angles of Sharīʿah and common law.
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This chapter explores the historical development of shari’ah governance infrastructures in the Malaysian landscape, pre- and post-Islamic Financial Services Act 2013 (IFSA) and…
Abstract
This chapter explores the historical development of shari’ah governance infrastructures in the Malaysian landscape, pre- and post-Islamic Financial Services Act 2013 (IFSA) and its implications on the industry. This chapter analyzed two approaches developed in the shari’ah governance, namely, the inclusivity and uniformity approach. Inclusivity approach showed that the shari’ah compliance responsibility is shared inclusively by the shari’ah committee together with the institution’s top management. While the uniformity approach showed that the end-to-end shari’ah compliance is achieved through issuance of shari’ah standards that can be easily related by the practitioners into their banking operations and business. The coherence implementation of these approaches has enabled another important stakeholder, the judiciary to have more clarity and certainty in dealing with matters pertaining to Islamic banking and finance. Consumers’ trust and confidence in the financial sector is thereby secured and sustained, hence providing financial stability within the industry, which meets with the expectation and mandate given to IFSA.
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Nisful Laila, Raditya Sukmana, Dwi Irianti Hadiningdyah and Indah Rahmawati
This paper provides a critical assessment of Indonesia’s pioneering initiative in issuing cash waqf-linked sukuk (CWLS), a hybrid government sukuk integrated with Islamic…
Abstract
Purpose
This paper provides a critical assessment of Indonesia’s pioneering initiative in issuing cash waqf-linked sukuk (CWLS), a hybrid government sukuk integrated with Islamic endowment funds (waqf). Focused on addressing urgent health-care and essential expenditures, this study aims to evaluate the features and performance of CWLS sales.
Design/methodology/approach
Using a literature review and in-depth interviews, this study comprehensively analyzes CWLS from multiple perspectives.
Findings
The research indicates that CWLS effectively mobilizes public funds, benefiting the government by supporting essential needs and enhancing waqf management in Indonesia. Moreover, it significantly improves the quality of life through social projects financed by CWLS returns.
Practical implications
The study offers actionable recommendations for enhancing CWLS performance in Indonesia and serves as a suggestion for other governments considering similar financial instruments.
Social implications
As a socially oriented financial tool, CWLS emerges as a pivotal strategy for enhancing national waqf management and promoting equitable wealth distribution.
Originality/value
This study represents the first critical assessment of CWLS in Indonesia, advancing theory by integrating Islamic finance principles with governmental fiscal policies through innovative sukuk structures. It contributes to the distributive justice theory by demonstrating how CWLS operationalizes fairness and equity in resource allocation.