INCEIF Knowledge Repository (INCEIF University)
Not a member yet
1768 research outputs found
Sort by
Development of the takaful industry in Malaysia
No full textAlthough the takaful industry in Malaysia, as seen today, may be deemed to have attained its major features only from 1984 onwards, the industry has a longer history which dates back to the 1970s (excluding the time insurance was already distinguishable in the country). Over this period, certain important political, economic, and social developments that took place must be taken into account ..
Towards a comprehensive development of Islamic finance: based on Islam as a complete way of life
No full textThe slides highlight: 1) the development of Islamic banking and finance in Malaysia; 2) problem of over emphasizing banking and finance and ignoring economics; 3) Islamic economics objectives; 4) development of Islamic economics as a field of knowledge
Measuring Shariah non-compliance risk (SNCR): claw-out effect of al-bai-bithaman ajil in default
No full textThe purpose of this paper is to examine the meaning, nature and measurement of Shariah non-compliant risk faced by Islamic banks. Al-bai-bithaman ajil (BBA) contract documentation is analyzed in the light of the legal environment in Malaysia and measurement of Shariah non-compliant risk based on constructed or hypothetical cases. Shariah non-compliant risk will adversely affect bank's earnings when BBA contracts are deemed invalid in the court of law, either in a foreclosure or ruling via court declaration. The paper is written based on content analysis, Malaysian legal cases with hypothetical examples for better understanding. Islamic banking should be able to use the findings to estimate potential loss from Shariah non-compliant risk and make the necessary provisions. This paper provides new insights of risks faced by credit-intensive Islamic banks, that when relinquishing critical requirement of Islamic contract such as ownership risk will suffer loss
Risk sharing microfinance solutions: overcoming the financing cost constraints
No full textWhile most approaches to poverty alleviation and addressing unemployement are linked to the discourse on economic "growth", it is observed that populations within rapidly growing economies, such as these of China and India, are not receiving any direct benefits from the same and may not for some decades to come. Since manufacturing-led economic growth takes place in urban areas, rural areas, in particular, are typically left behind. Microfinance is one approach to this problem of unevenly distributed wealth creation. Help the rural poor directly instead of waiting for the benefits of economic growth to reach them decades later
Utilisation of zakah and waqf fund in micro-takaful models in Malaysia: an exploratory study
No full textThis paper aims to investigate the utilisation of both zakah and waqf fund as external resources to ensure micro-takaful services are delivered to underserved communities in an effective and sustainable manner. It also addresses Shari'ah issues related to the zakah- and waqf-based model. The study is a qualitative-based research. It uses both focus group and content analysis approach to gather primary data and identify and interpret relevant secondary data and Shari'ah concepts in developing the zakah- and waqf-based micro-takaful model. It is discovered throughout the investigation of attributes of beneficiaries of zakah and waqf institutions as well as micro-takaful scheme that all share commonalities in terms of social securities and socio-economic support to low-income households in societies. The study also finds that the disintegration of zakah and waqf which form part of the Islamic ecosystem from the micro-takaful model makes it less effective and sustainable
Islamic finance in Malaysia : growth & development
No full textThis modern history of Islamic finance is pretty short spanning a period of roughly five decades, compared to conventional finance which goes back to more than four centuries earlier. Islamic finance has spread rapidly across the globe, reminiscent of Lao-tzu's famous saying "A journey of a thousand miles begins with a single step". Malaysia, a pioneer in the development of the Islamic finance industry, has emerged as one of the major hubs for global Islamic finance
Islamic finance in the Maldives reaches zenith of influence with strong political will
No full textIslamic finance is a concept that has captured the confidence and trust of the people in the Maldives and is gaining in popularity today. The ethical and social impact it creates has proven its viability in the country, irrespective of the personal beliefs and criticisms about the operational aspect of it. The year 2017 has demonstrated the strong political will toward the development of Islamic finance in the country and at the national level, a number of initiatives have been taken for the sustainable growth of Islamic finance. 2018 is expected to be a successful year as well for Islamic finance
Islamic wealth management and its relevance in modern times
No full textIslam has a unique dispensation on the concept of wealth, its ownership and distribution. Wealth is not regarded as an end per se, but a means to an end: the end being the paradise in the hereafter. Essentially, material possessions are considered the primary form of weakth, perceived to be generated, accumulated and/or invested by the one who acquired it. Inclusively, wisdom, knowledge, salvation and even contentment can all be categorized as wealth. From the Islamic perspective, Allah (to Him be Praise) is the true owner of all wealth and He entrusts it to man for beneficial use (Quran 20:6). Therefore, a Muslim is required to earn and invest wealth in Islamically permissibale methods in the real sector of the economy
Challenges of developing a takaful retirement annuity plan in Malaysia
No full textThis paper aims to explore the challenges facing the development of a takaful retirement annuity plan in Malaysia. It also aims at exploring a new platform to re-launch the same product after being withdrawn from the Malaysian annuity market a few years ago. The research adopts a qualitative approach to address the possible challenges hindering the development of a takaful retirement annuity plan in Malaysia. The research will not discuss the Shari'ah issues deemed settled in previous researches but will only focus on technical challenges related to the instruments of investment and prudential measures. The research found that various challenges face the development of a takaful annuity plan in Malaysia. Some of those challenges are the downsizing of the sukuk market, the shortage of long-term sukuk, longevity risk and risk-based capitalization. The research found that there is a need for a diversified portfolio of securities instead of solely using sukuk as an investment instrument in this product. Re-launching the takaful annuity plan in Malaysia requires the identification of actual challenges facing the development of such a product. The product purported to be re-launched would benefit a large segment of retirees who do not have enough savings during the retirement age. The introduction of such a product will also expand the takaful market in annuities, which remains untapped
A comparison of MASB and AAOFI accounting conceptual frameworks
No full textThis paper aims to present comparison of conceptual framework published by the Malaysian Accounting Standards Board (MASB) (fully converged with the standards issued by the International Accounting Standards Board (IASB) and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). As the Islamic finance industry evolved, some scholars proposed that the Islamic Financial Institutions (IFIs) should have different accounting standards to serve their need to report the unique financial information needs. The research is motivated by the introduction of accounting standards by the AAOIFI to fulfill the financial reporting needs of Islamic finance industry that offered Shariah complied products and services. AAOIFI divided the objective of financial reporting into two parts, namely, objective of financial accounting and objective of financial reports. However, only a limited number of countries adapted the AAOIFI accounting standards as mandatory for their IFIs. The other 120 countries apply standards issued by IASB for their IFIs. For MASB, the objective of financial reporting is to generate useful financial information for creditors and investors. An analysis of the accounting principles outlined in the conceptual framework of the MASB shows substantial replication of the AAOIFI's conceptual framework. In the Malaysian Islamic finance industry perspective, though the regulator requires the IFIs to apply the IFRS, yet it issued relevant regulations as a guide for IFIs financial reporting and to close the gap