Nor Syahirah Zain and Zulkarnain Muhamad Sori
This study aims to explore a sustainable and responsible investment (SRI) sukuk model based on Musharakah that could be implemented to develop waqf properties and assets under the…
Abstract
Purpose
This study aims to explore a sustainable and responsible investment (SRI) sukuk model based on Musharakah that could be implemented to develop waqf properties and assets under the SRI sukuk framework in Malaysia. This includes proposing and designing a potential SRI sukuk model and seeking the opinion of subject-matter experts and industry practitioners on the model, its attractiveness to investors and its feasibility to implement in Malaysia.
Design/methodology/approach
The study adopts desk research and semi-structured interview as its methodology. A desk research is where a detailed critical review and analysis of past literature from reports, journals, framework, books and practices are undertaken. To establish a SRI sukuk model, the paper also studies the cases of the first SRI sukuk issued in Malaysia and other waqf-related sukuks that have been structured for the development of waqf property/asset in the past. Following that, the opinion of subject-matter experts and industry practitioners on the proposed SRI sukuk model is sought in a semi-structured interview.
Findings
Based on the interviewees’ response, the study proposes the most feasible SRI sukuk model that could be implemented in the Malaysian context for the development of waqf properties/assets, which is a Musharakah-based sukuk model. The model will be elaborated based on the purpose of development, functionality, choice of Shari’ah contract, obligor and return mechanism.
Research limitations/implications
This paper is exploratory in nature. While it explores the structural point of view only, future research could analyse and identify the legal, regulatory, financial and Shari’ah aspects of the proposed model. Further empirical studies can be done to provide more comprehensive idea and knowledge regarding the subject matter.
Practical implications
The study serves great benefit to the government, waqf administrators, regulators, policymakers, foundations, corporations and interested investors to explore SRI sukuk as one of the feasible financial instruments to develop waqf in Malaysia.
Originality/value
This study proposes the use of an innovative financial instrument called SRI sukuk and structures a feasible SRI sukuk model to help realise the true roles of waqf as not only a religious tool but also one of the instruments for human, economic and social developments.
Details
Keywords
Suddin Lada, Brahim Chekima, Rudy Ansar, Ming Fook Lim, Mohamed Bouteraa, Azaze-Azizi Abdul Adis, Mohd Rahimie Abd Karim and Kelvin Yong
This study aims to explore the strengths, weaknesses, opportunities and threats (SWOT) of the Muslim-friendly homestay business in Malaysia to help identify and recommend…
Abstract
Purpose
This study aims to explore the strengths, weaknesses, opportunities and threats (SWOT) of the Muslim-friendly homestay business in Malaysia to help identify and recommend practical strategies to capitalize on the strengths and potentials while overcoming the current shortcomings and threats.
Design/methodology/approach
The Muslim-friendly business owner and operators in Sabah, Malaysia, were the subject of a series of focus groups and expert opinion interviews. The data was transcribed, and then the variables were categorized into the four SWOT categories using content and thematic analysis. Meanwhile, threats, opportunities, weaknesses and strengths (TOWS) analysis is used to identify the best strategy alternatives.
Findings
The SWOT analysis identifies several strengths (e.g. diverse and unique Islamic culture and heritage [S1], iconic Islamic landmarks [S2], rich natural beauty [S3], well-established halal tourism industry [S4]); weaknesses (e.g. limited awareness [W1], limited infrastructure and facilities [W2], limited human resources and trained personnel [W3], lack of Islamic tourism products and experiences [W4]); opportunities (e.g. growing demand for Islamic tourism [O1], increasing disposable income [O2], potential for collaborations [O3], potential for partnerships [O4], potential for expanding Sabah’s halal tourism offerings [O5]); and threats (e.g. competition [T1], political instability [T2], economic downturns [T3] and environmental and social challenges [T4]).
Practical implications
This paper could serve as a guideline and supplementary information for stakeholders in the homestay industry to grasp their business environment better.
Originality/value
To the best of the authors’ knowledge, this is the first study of its type to blend SWOT and TOWS analysis with the sector of Muslim-friendly homestays. Hence, the findings might expand understanding of the Muslim-friendly homestays industry and aid businesses in penetrating this growing market.