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Shari'ah inspection of surplus distribution in takaful operations
No full textThis research intends to shed light on a number of issues related to surplus distribution in takaful. The first part is devoted to revisiting the main financial concepts related to the surplus such as the underwriting surplus and profit. Modes of distribution such as pro-rata and offsetting will also be discussed in the light of equity principle advocated by Shari'ah. The second part deals with the major juristic views and doctrines delineated in favor of surplus distribution. Legal doctrines such as the ownership or otherwise of the surplus after donation would be meticulously discussed and reviewed in the light of current practices of takaful operators. The last part deals with a general outline of Shari'ah parameters in relation to equitable surplus distribution. This is followed by a scrutiny of surplus distribution practices of some modern takaful operators both in Malaysia and abroad. The research argues that while it is strongly recommended to redistribute the surplus to the participants only, there is a considerable Shari'ah ground allowing takaful operators to share in the surplus for reasons outlined in this research
Methods and methodologies in fiqh and Islamic economics
No full textThis paper intends to examine the methods of reasoning that are employed in Fiqh and critically discuss their adoption in Islamic economics. The paper argues that the methods used in Fiqh are mainly designed to find out whether or not a certain act is permissible or prohibited. Islamic economics, on the other hand, is a social science. Like any other social science its proper unit of analysis is the society itself. Methodologies of Fiqh and Islamic economics also differ as the former focuses on prescriptions. It prescribes what an individual should do or avoid. In contrast, Islamic economics is more concerned with describing economic phenomena. While Fiqh, especially worship (Ibadat) type, prescriptions are permanent in nature and for all individuals, economic descriptions may change from time to time and from society to another. This paper argues that the methods of reasoning for discovering the truth in fiqh and Islamic economics are not necessarily identical. While fiqh has a well developed methodology in the form of usul al-fiqh, Islamic economics in its search for finding the truth should rely on a methodology that suits its social and descriptive nature
Price dynamics of natural gas and the regional methanol markets
No full textA ‘methanol economy’ based mainly on natural gas as a feedstock has a lot of potential to cope with the current and ongoing concerns for energy security along with the reduction of CO-2 emissions. It is, therefore, important to examine the price dynamics of methanol in order to ascertain whether the price of methanol is mainly natural-gas-cost driven or demand driven in the context of different regions. This paper is the first attempt to investigate the following: (i) is the natural gas price significantly related to the regional methanol prices in the Far East, United States and Europe? (ii) who drives the regional methanol prices? The paper is motivated by the recent and growing debate on the lead-lag relationship between natural gas and methanol prices. Our findings, based on the most recently developed ‘long-run structural modelling’ and subject to the limitations of the study, tend to suggest: (i) natural gas price is cointegrated with the regional methanol prices, (ii) our within-sample error-correction model results tend to indicate that natural gas was driving the methanol prices in Europe and the United States but not in the Far East. These results are consistent, during most of the period under review (1998.5–2007.3), with the surge in demand for methanol throughout the Far East, particularly in China, Taiwan and South Korea, which appears to have played a relatively more dominant role in the Far East compared to that in Europe and the United States within the framework of the dynamic interactions of input and product prices. However, during the post-sample forecast period as evidenced in our variance decompositions analysis, the emergence of natural gas as the main driver of methanol prices in all three continents is consistent with the recent surge in natural gas price fueled mainly, among others, by the strong hedging activities in the natural gas futures/options as well as refining tightness (similar to those that were happening in the crude oil markets)
Introduction to fatwa, Shariah supervision & governance in Islamic finance
No full textThis book aims to provide a sound foundation of knowledge in fatwa and Shari'ah governance in Islamic finance. This foundation is coupled with very important aspects of Islamic jurisprudence, legal maxims, and Islamic law of contracts. The book is trying to achieve the following objectives: 1. to provide a clear understanding of the concept of fatwa and Shari'ah governance pertaining to business and finance. 2. to give an overview on the major issues pertaining to fatwa and Shari'ah governance. 3. to understand the process of fatwa and its Shari'ah framework in Islamic finance
The role of cash waqf as a financial instrument in financing small and medium sized enterprises (SME)
No full textThe main objective of this paper is show the significant role of cash waqf as new financial model in the Islamic financial system. The cash waqf model is meant to develop and enhance the financial services for small and medium size enterprises (SME). With the financial infrastructure based on cash waqf model the SMEs can overcome their financial challenges and obligations in business and commerce. However, the cash waqf model can be used as mechanism through its commerical and financial aspects to enhance the SMEs and facilitate their financial needs. The cash waqf has the potential to improve the domestic economic growth and play a significant role in the socioeconomic development by allowing the SME to have an access to the financial services..
Introduction
No full textThe Harvard University Forums provide an opportunity for shari'a scholars, Islamic economists, lawyers, regulators, and bankers to meet biennially and discuss the current state of the Islamic finance industry. Participants are encouraged to be reflective, to questions and to view Islamic finance in its wider social context. The theoretical ideas discussed at these academic gatherings have played a amajor role in shaping contemporary Islamic financial contracts and in influencing practice
Exploring integrated science
No full textWhy is rubber elastic? Why are leaves green? Why can a gecko climb a wall? Answering these and a myriad of other puzzles of nature, Exploring Integrated Science shows how the simplest questions that arise from our daily experiences can lead us through a chain of reasoning that explains some of the most fascinating principles of science. Written in a non-technical entertaining style to engage those without a science background while maintaining the academic rigor required by more advanced readers, the book follows a unique format that enhances the learning process. Each chapter begins with a pertinent question that forms the basis for explaining a scientific principle. Step by step, the text then delves into the more sophisticated scientific matter necessary for providing insight into the question presented, elucidating key principles and concepts. Each chapter contains a summary highlighting the salient points, answers the question definitively, and concludes with a series of exercises to test readers' assimilation of the material
Adakah saiz firma penting kepada kekangan kewangan?
No full textThis article empirically investigates the presence of financial constraints in the Malaysian capital market. The existence of financial constraints gives firm less access to external funds to finance their investment activities. Therefore, the constrained firm has to rely on internal sources of financing. The severity of financial constraints is relatively different according to firm size. Hence, the sample is divided into large and small firm subsamples. Using the Q model of investment, the results show that financial constraints are present in the Malaysian market using the full sample. The subsample results however show that large firms are not financially constrained. On the other hand, the smaller firms are facing the constraints in their investment decisions
Financial constraints and firm investment in Malaysia: an investigation of investment-cash flow relationship
No full textThis paper investigates the presence of financial constraints among firms in Malaysia using firm level panel data analysis. The empirical results based on panel GMM demonstrate that financial constraints are present in the market, which indicate that the firms are unable to access to external forms of financing. In addition, the presence also signifies the presence of asymmetric information problem between the firm and its financer. Thus, the neoclassical investment theory which based on assumption of complete information such that only factor prices and technology determine firm’s desired capital stock is simply rejected. Eventually, their investments are much affected by fluctuations in their cash flows or retained earnings
Mutawalli institutions for the management of waqf properties
No full textThis paper argues that waqf does not play its historical role to support and finance religious, charitable and educational institutions in the Muslim world. It argues that the traditional way of appointing an individual as a mutawalli to manage waqf properties and the modern way of leaving the management of waqf properties in the hands of state institutions need to be revised. In particular, it examines the modern practice of appointing a government institution as a trustee (mutawalli/nazir) for the management of waqf properties. The paper contends that the practice has not contributed to the efficient management and productivity of the waqf properties. The paper subsequently concludes that educational and welfare institutions should be allowed to act as a trustee and manage the waqf properties for the benefit of the beneficiaries. This would enable these institutions to actively promote the creation of new waqf for educational and welfare purposes, provide professional support for the management of individual waqf properties and contribute to the socio-economic development of the society