Labuan e-Journal of Muamalat and Society (LJMS)

EVALUATING THE FINANCIAL REPORTING PRACTICES OF ISLAMIC FINANCIAL INSTRUMENTS FOR COMPLIANCE WITH SHARIAH REQUIREMENTS

2024-03-03T08:25:57+08:00

The introduction of value-based intermediation in Malaysian financial industries creates demands for applied studies to provide empirical evidence on the impact of value-based intermediation in achieving maqasid al-Shariah. This is to reduce the gap between Shariah compliance and achieving maqasid al-Shariah by the industry. For instance, the ijarah financing contract in the financial statement is under the leasing contract term and is no different from the conventional banks offering vehicle loans. Similar to murabahah financing, there is no reporting of underlying assets bought by Islamic banks as inventory before the assets are sold to the customers. Hence, the objectives of this research are: (1) to examine the substance in reporting financial instruments adopted by Islamic banks; and (2) to adopt the maqasid al-Shariah principles in validating the substance of the financial instruments adopted by Islamic banks. This research analysis was based on focus group discussions with the experts, and thematic analyses were conducted to assess the financial reporting practices that validate the economic substance and legal form of Islamic financial instruments in Islamic banks whether achieve the maqasid al-Shariah or merely compliance with Shariah. The study suggested a need for accounting standards that focus on Islamic financial instruments to ensure faithful representation of the financial statements. Moreover, the substance and legal form will align to reflect the financial statement based on policy documents that have been developed and to show the uniqueness of Islamic financial instruments in financial reporting.

FUND PROTECTION IN EQUITY CROWDFUNDING BASED ON MAQASID VALUES IN MALAYSIA

2024-02-24T15:23:49+08:00

Crowdfunding, particularly equity-based, has widely been recognized as an alternative funding method for business projects and companies. This new trend has been strongly linked to the rapid development of Financial Technology (FinTech). From Shariah’s perspective, crowdfunding is in line with its objective in terms of wealth circulation. In addition, it enlarges the segment of the Islamic finance industry since its instruments can be modified to be Shariah-compliant. As a result, crowdfunding provides alternative financing to mainstream Islamic financial institutions. However, since this industry is still new, several issues are linked to modern crowdfunding, mainly regarding fund protection. Issues like lack of due diligence performed by platforms, incompetent projects and inadequate Shariah monitoring could threaten investor funds seeking profit and Shariah-compliant investment. Thus, this paper analyzes how far maqasid al-Shariah can strengthen crowdfunding activities, particularly the fund management aspect in Malaysia. Through the library research approach, it is discovered that three values associated with maqasid al-Shariah can be developed as a framework of application: promoting transparency, upholding justice and conducting Shariah-compliant oversight. While this conceptual study may be limited in data, it provides insights into how maqasid al-Shariah can be a direction in crowdfunding activities. Thus, the findings can benefit many stakeholders involved, including platform operators, funders, and project owners.

THE ROLE OF ISLAMIC FINANCIAL LITERACY TOWARDS ADOPTION OF ISLAMIC BANKING PRODUCTS AND SERVICES: A SYSTEMATIC LITERATURE REVIEW

2024-03-08T00:03:55+08:00

Following the increased demand for Islamic banking products and services in different economies, research on the effect of Islamic financial literacy in the adoption of Islamic banking products and services has increased in recent years. The purpose of this study is to identify and explore the role of Islamic financial literacy towards the adoption of Islamic banking products and services as it has not been categorically addressed in the prevailing literature so far. The study used a systematic literature review following the PRISMA protocol to execute the analysis of the review. The results identified awareness, enhancement of the intention to use, directing financial decision making and modelling financial behaviour as the key roles of Islamic financial literacy towards the adoption of Islamic banking products and services. The study helps in directing future research on Islamic financial literacy towards understanding it in line with the identified roles.

TASAWUF KONTEMPORARI DALAM MENANGANI PEMIKIRAN RADIKALISME BERAGAMA: ANALISIS LITERATUR UTAMA

2024-03-18T09:06:37+08:00

Kesedaran beragama dalam kalangan masyarakat Islam merupakan suatu perkembangan yang sangat baik terhadap sesuatu kelompok masyarakat di sesebuah negara. Namun terdapat juga di satu sisi perkembangan ini menimbulkan masalah sekiranya tidak diawasi dengan baik, iaitu pengaruh media massa menyebar-luaskan fahaman radikalisme beragama. Justeru, berangkat dari situasi tersebut artikel ini merungkai persoalan dan isu mengenai pemikiran radikalisme beragama dan peranan pendekatan tasawuf kontemporari dalam menangani isu tersebut. Secara khususnya, artikel ini merupakan sorotan literatur menumpukan berkenaan dengan kajian terdahulu yang meliputi permasalahan sikap radikalisme yang berlaku di Malaysia khususnya di Sarawak. Artikel ini secara khusus berobjektifkan untuk mengkaji peranan agama dalam kehidupan manusia, mengkaji pengaruh media massa dalam penyebaran pemikiran radikal beragama, menganalisis pendekatan tasawuf kontemporari dapat menangani pemikiran radikal beragama, menganalisis fahaman radikalisme dan kecenderungan perilaku keganasan dalam mencorakkan amalan keberagamaan, dan menilai kesan pengamalan tasawuf kontemporari dalam menangani pemikiran radikal beragama khususnya di Sarawak. Rumusan dapatan kajian dalam artikel ini menunjukkan bahawa sorotan literatur lepas menjurus kepada kaedah pemulihan yang dilakukan bagi mengatasi gejala-gejala yang sedia ada. Kaedah pemulihan adalah dengan menggunakan elemen-elemen tasawuf. Ia adalah untuk menjelaskan berkenaan keberkesanan kaedah tasawuf dalam mencegah dan memulihkan. Di samping itu juga sumber literatur lepas ini tidak menolak keperluan untuk membuat penambahbaikan terhadap konsep tasawuf yang sedia ada dengan menekankan beberapa perkara seperti penekanan terhadap adab dan akhlak, pembersihan hati, latihan kerohanian, pembinaan strategi bagi melahirkan generasi ulu al-albab yang menguasai ilmu-ilmu turath serta menterjemahkan hal tersebut ke dalam individu generasi sekarang sebagai generasi ulu al-albab iaitu generasi bijak pandai yang berfahaman akidah Ahli Sunnah Wal Jamaah. Kesungguhan dalam melaksanakan elemen-elemen tasawuf dalam pendidikan merupakan usaha berterusan untuk mengekang daripada perkembangan pemikiran yang bercanggah dengan aliran Islam sebenar serta usaha mengekang aliran pemikiran ekstrim yang sudah membudaya dalam masyarakat yang akan merugikan umat Islam di Malaysia.

ASSESSING YOUTH'S BEHAVIOUR TOWARDS SUSTAINABILITY IN OVERPACKAGING OF E-COMMERCE PURCHASES IN KLANG VALLEY

2024-03-19T13:04:50+08:00

This research investigates the behaviour of youths in the Klang Valley regarding overpackaging in e-commerce purchases. The study was based on a quantitative research design, encompassing a sample of 200 respondents aged 15 to 30 years old. The data were collected through a set of self-administered questionnaires. The study encompassed a demographic profile analysis, employing descriptive, Pearson correlation, and Multiple Linear Regression (MLR) analysis to address five hypotheses. The finding demonstrated that environmental concern emerges as a pivotal factor, with the highest mean score, indicating a heightened awareness of the long-term consequences of excessive packaging on the environment. Pearson correlation analyses reveal a significant positive relationship between attitude and behaviour, underscoring the impact of positive attitudes on shaping consumer behaviour. Subjective norms exhibit a substantial positive correlation, emphasizing the influence of perceived social norms. Perceived behavioural control demonstrates a robust positive relationship, indicating the influential role of individuals' beliefs in shaping their behaviours. The study also finds a moderate but significant relationship between environmental concern and behaviours, highlighting the importance of heightened environmental awareness in promoting sustainable consumer behaviour. The MLR analyses emphasized the influential role of attitudes, subjective norms, and perceived behavioural control in shaping behaviours, with environmental concern playing a crucial but nuanced role. The findings provide valuable insights for policymakers and businesses aiming to foster sustainable behaviour in e-commerce.

EXPLORING HIBAH PRACTICES AMONG MUSLIM ENTREPRENEURS IN KELANTAN

2024-04-24T10:45:50+08:00

This study delves into a segment of Islamic wealth management, focusing on hibah (inter vivos gifts), and investigates how Muslim entrepreneurs in Kelantan manage and enhance their wealth judiciously and fairly. Given the rising concern over unclaimed assets and their potential to remain frozen if Muslims neglect property management, this research is essential. It aims to evaluate the comprehension of hibah among these entrepreneurs, analyse their practices, and draw insights on both understanding and application in Kota Bharu, Kelantan. Data were collected through interviews and document analysis, with the aid of ATLAS.ti software to facilitate a network view analysis. Findings reveal that while informants practice hibah and recognize its importance, complete understanding remains lacking. The outcomes of this study could influence government action to address state-wide issues and encourage Islamic religious councils to enhance the understanding and practices of hibah among Muslim entrepreneurs and the broader community.

THE STATUS QUO OF ZAKAT MANAGEMENT IN MALAYSIA: OBSTACLES, OPPORTUNITIES AND DIRECTIONS

2024-03-07T12:04:02+08:00

Since zakat plays a significant rule for Muslims in their religious and socioeconomic life, it must be managed efficiently, and as is due. Malaysia among the Muslim countries that strives to realize the meaning of zakat through a systematic management in its territory. However, due to the various factors, it (zakat management system) might encounter several issues and challenges that hurdle obtaining the objectives of zakat in its practice. Thus, the research aims to study the current progress of zakat in Malaysia and its barriers through the available literature and it attempts to identify the research gap and potential future directions. The study adopts a qualitative research approach where it collects the data from several resources and data bases and analyses the collected data through a rigorous documents analysis and descriptive method. This study finds that the zakat management system in Malaysia is following various steps to improve its efficiency and benefits for the people however, several studies note that some areas such as the performance of zakat institutions, proper distribution, digitalization of the system and realization of poverty alleviation through zakat require more improvement by the zakat authority and the future research as well. The improvement of zakat management and utilization of the zakat fund in the appropriate manner will benefit the society and economy. Subsequently, it will strengthen the trust and confidence of the zakat payers in the zakat system and institutions in Malaysia.

ONLINE DONATIONS AND THE THEORY OF PLANNED BEHAVIOUR

2024-06-09T22:11:20+08:00

Understanding the elements that impact charitable intent in online donation is relevant due to the growing use of digital channels for charity giving. This study examines factors that influence charitable intent in online donations in Malaysia. Utilising the Theory of Planned Behaviour (TPB), this study examined the factors determining individuals' willingness to participate in online donations. Most importantly, this research has the potential to enhance comprehension regarding the motivations behind online donations and offer helpful perspectives to assist Malaysian charities and nonprofit organisations in optimising their fundraising strategies in the digital realm. Moreover, this study also proposed attitude, subjective norms, and perceived behaviour control as the main factors influencing the intention to participate in online donation. This study encompassed a total of 387 respondents and employed quantitative research methods. Data collection involved the distribution of self-administered questionnaires through Google Forms. Online donation intention factors are analysed using Statistical Package for the Social Sciences (SPSS) to examine their factors, correlations, reliability, and regression. The results show a positive relationship between all factors and the individual's intention to donate online. However, there are four limitations to preparing this study. The study's focus on Malaysia may limit generalisability to other cultural or geographical contexts. Next, emphasis on TPB elements overlooks external variables influencing online contribution behaviour. In addition, the use of self-reported data may introduce social desirability bias, impacting response accuracy. Lastly, the constantly changing nature of online platforms and technology could make it more challenging to keep up with the latest trends in online donations. The results of this study can improve the role of charities and non-profit organisations in providing proper resources and support to enhance individuals' confidence to donate online. Besides, this study expands the use of TPB to comprehend the factors influencing online charitable intentions in the Malaysian context.

ANALISIS TEMPOH MASA PENYENARAIAN SEMULA SAHAM PATUH SYARIAH DI BURSA MALAYSIA

2024-02-24T14:32:12+08:00

Sekuriti Patuh Syariah yang diurusniaga di Bursa Malaysia disaring menggunakan metodologi khusus oleh pihak Suruhanjaya Sekuriti Malaysia (SSM). Metodologi ini mula dilaksana pada tahun 1997 dan telah melalui beberapa perubahan. Metodologi semakan tahun 2013 merupakan pendekatan yang diguna pakai sehingga kini. Kesan pelaksanaan metodologi ini pada tahun 2013 menyebabkan 158 sekuriti telah dinyah senarai. Kajian menganalisis status syariah terkini sekuriti berkaitan sama ada telah disenarai semula atau sebaliknya. Tiga sektor dipilih untuk tujuan analisis iaitu barangan pengguna, barangan industri dan dagangan/perkhidmatan melibatkan 121 sekuriti. Hasil analisis mendapati, 41 sekuriti bersatus kekal tidak disenarai semula, manakala 80 sekuriti pula telah berjaya disenarai semula. Analisa tempoh masa menunjukkan lebih 60 peratus sekuriti berjaya disenarai semula patuh syariah dalam tempoh jangka pendek, dan bakinya pula dalam tempoh jangka sederhana. Pengetahuan tempoh masa ini menyumbang input tambahan kepada pelabur yang berhadapan situasi ini membuat keputusan untuk melupuskan atau mengekalkan pegangan sekuriti berkaitan.

UNDERSTANDING AND KNOWLEDGE OF ISLAMIC ESTATE PLANNING STRATEGIES AT UNIVERSITI TEKNOLOGI MARA, SHAH ALAM, MALAYSIA

2024-04-04T11:00:15+08:00

Estate planning is one of the crucial elements of managing property during a person’s lifetime. Unfortunately, it was reported that only 700,000 Muslims have declared their wills, out of a total population of 30 million Muslims in Malaysia. Therefore, this research explained the main tools available for wealth distribution planning that are viable in Malaysia. Secondly, this research aims to investigate students in Islamic studies tendencies in estate management planning and its determinants. To achieve these objectives, a quantitative methodology was adopted in which the data of this research was through a questionnaire to assess their level of awareness. The findings revealed that the level of awareness of students in Islamic Studies Campus Shah Alam, Universiti Teknologi MARA towards wealth distribution management and asset distribution planning is high. This study exposed some of the flaws in wealth distribution management and proposed numerous approaches to raise awareness about wealth distribution planning.