Ahmad Zakirullah Mohamed Shaarani, Fidlizan Muhammad, Azman Mohd Nor, Abdul Rahman Syukor
{"title":"Pemerkasaan Operasi Kutipan Zakat Melalui Inovasi Pembayaran Zakat Secara Khultah, Pembayaran Zakat Menggunakan Barang Dagangan dan Zakat ke atas Instrumen Kewangan Jangka Panjang dan Sukuk Berasaskan Hutang","authors":"Ahmad Zakirullah Mohamed Shaarani, Fidlizan Muhammad, Azman Mohd Nor, Abdul Rahman Syukor","doi":"10.33102/jmifr.v19i1.420","DOIUrl":"https://doi.org/10.33102/jmifr.v19i1.420","url":null,"abstract":"Zakat adalah satu instrumen yang sangat penting dalam pembangunan sosio ekonomi umat Islam, lantaran peranannya dalam pembangunan dan penjagaan kebajikan golongan yang kurang berkemampuan, dan pengagihan lebihan harta oleh golongan kaya. Zakat juga berfungsi sebagai pembersih hati dari sifat tamak, kedekut dan cintakan dunia secara berlebihan. Antara aspek penting zakat ialah soal kutipan yang mana Islam telah menggariskan golongan tertentu yang dikenakan zakat dan jenis-jenis harta yang dikenakan zakat. Aspek ini sangat penting diperkasakan kerana keperluan para asnaf yang semakin meningkat, kehidupan manusia yang semakin berkembang, perkembangan sistem ekonomi yang semakin kompleks menyebabkan metod dan jumlah kutipan zakat sedia ada sudah tidak lagi dapat menampung jumlah keperluan sedia ada, dan ianya memerlukan anjakan paradigm yang baru, baik dari segi cara pengiraan, jenis-jenis aset, cakupan jenis-jenis golongan pembayar dan sebagainya. Kajian adalah kajian perpustakaan sepenuhnya iaitu dengan menganalisis pendapat-pendapat para ulama silam dan ulama semasa, dan disesuaikan dengan maklumat perkembangan terkini berkaitan pembayaran zakat. Hasil kajian mendapati bahawa antara pendekatan dan kaedah yang boleh digunakan dalam meningkatkan hasil zakat antaranya ialah dengan menggunakan konsep pengiraan zakat secara khultah atau kolektif, pembayaran zakat menggunakan barang jualan sendiri, dan pembayaran zakat ke atas instrumen jangka panjang. \u0000Zakat is a very important instrument in the socio-economic development of Muslim society, and it plays a key role in developing the capacity of the less fortunate, by distribution of surplus property from the rich to the poor. Zakat also serves as a purifier of the heart from the nature of greed, stinginess and excessive love toward the world. Among the important aspects of zakat is the area of collection which Islam has outlined certain groups that are subject to zakat and the types of property that are subject to zakat. This aspect is very important to be strengthened since the needs of the asnaf are increasing, human needs are also growing, the development of the increasingly complex economic system has caused the existing method and amount of zakat collection can no longer meet the existing needs, and it requires a new paradigm shift, in terms of method of calculation, types of assets, coverage of types of payers, system and others. The study is a complete library-based study by analyzing the opinions of past and present Shariah scholars and adapted to the latest development related to the payment of zakat. The results of the study found that among the ways that can be used to increase the current zakat revenue are using the new concept of calculating zakat such as a calculation based on khultah or collective based collection, payment of zakat using good and stock, and payment of zakat on long-term debt-based instruments.","PeriodicalId":350106,"journal":{"name":"The Journal of Muamalat and Islamic Finance Research","volume":"31 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123740723","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Fauzias Mat Nor, Syahidawati Shahwan, Fuadah Johari, Hanim Misbah, Hasnah Haron, Zurina Shafii, Amir Shaharuddin, Nur Atika Atan, Muhammad Mohamad Yusoff, Azuan Ahmad
{"title":"Conceptualisation and Validating Benefidonors Model in Waqf","authors":"Fauzias Mat Nor, Syahidawati Shahwan, Fuadah Johari, Hanim Misbah, Hasnah Haron, Zurina Shafii, Amir Shaharuddin, Nur Atika Atan, Muhammad Mohamad Yusoff, Azuan Ahmad","doi":"10.33102/jmifr.v19i1.418","DOIUrl":"https://doi.org/10.33102/jmifr.v19i1.418","url":null,"abstract":"Waqf movement in Malaysia has a long history since the colonization era with plenty of innovations being practiced by waqf managers. The literatures have highlighted on the performance of waqf as a social finance instrument with transformational impacts to the economic wellbeing of the beneficiaries. There is a considerable gap between the cyclic impact on the transformation of waqf beneficiaries into donors that needs to be highlighted. The main aim of the study is to conceptualize and validate the beneficiaries-donors model which evolved from the perspective of mutual assistance (ta’awun) prosumers, consumerchant, and volunteer. The study adopts a three-phase qualitative approach. The proposed model on Benefidonors is the result of the first stage, which involved content analysis of literature data. Data was also obtained via Focus Group Discussions (FGD) in the second step of creating and confirming the model. Three different groups of participants, namely donors, beneficiaries, and mutawalli, participated in three different sessions of FGD using MS Teams. The third stage is model validation where the participants have validated the model through a few series of FGD. The participants were given a conceptual model to see whether the new term introduced, \"Benefidonors,\" could be accepted or require further refinement. The new term coined, Benefidonors concept, suggests for a transformational cyclic impact of the major players in the waqf activism. The major output of this paper is the validated term “Benefidonors” which is a hybrid word, derived from the word, “Beneficiaries” and “Donors”. The “Benefidonors” promotes towards “share more”, “use more” and “donate more” for waqf ecosystem using the concept of mutual assistance (ta’awun) prosumers, consumerchant and volunteer. The finding of this research shows that the new term \"Benefidonors,\" even though it is still emerging and requiring efforts for exposure and branding, is inherently practiced, being aware of and known in the community, but it needs a systematic design and strategic arrangement for further expansion.","PeriodicalId":350106,"journal":{"name":"The Journal of Muamalat and Islamic Finance Research","volume":"70 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122012445","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Economic Concepts and Ideas of Al-Bukhārī: An Analysis of the Book of Sales in Ṣaḥīḥ Al-Bukhārī","authors":"Muhammad Irwan Ariffin, Ibrahim Nuhu Tahir","doi":"10.33102/jmifr.v19i1.405","DOIUrl":"https://doi.org/10.33102/jmifr.v19i1.405","url":null,"abstract":"This paper attempts to map the economic ideas of Al-Bukhārī that are reflected in the titles of the chapters in the Book of Sales in Ṣahīḥ Al-Bukhārī. The Book of Sales is used as the representative sample of hadiths related to muamalah in Saḥīḥ Al-Bukhārī. The economic ideas of Al-Bukhārī are derived using the methodology of interpreting the chapters’ titles and deduced from the general meaning of hadiths listed in the chapters. There are 25 chapters in the Book of Sales where the opinions of Al-Bukhārī are expressed directly. The economic ideas of these 25 chapters are then mapped to the classifications of hadiths into economic themes as analyzed in previous studies. Six major economic ideas were derived from these chapters, which are permissibility of credit transactions, honesty and truthfulness in business, market mechanism, importance of information and danger of uncertainty, controversial practices and prohibited sales, and land ownership and public finance.","PeriodicalId":350106,"journal":{"name":"The Journal of Muamalat and Islamic Finance Research","volume":"60 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129455409","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Hasnah Haron, Nathasa Mazna Ramli, Nurul Nazlia Jamil, Abdul Rahim Abdul Rahman
{"title":"Values in an Islamic University in Malaysia: Analysis from Western and Islamic Perspectives","authors":"Hasnah Haron, Nathasa Mazna Ramli, Nurul Nazlia Jamil, Abdul Rahim Abdul Rahman","doi":"10.33102/jmifr.v19i1.415","DOIUrl":"https://doi.org/10.33102/jmifr.v19i1.415","url":null,"abstract":"Values assist in shaping individuals’ moral. Ethical principles and integrity are the outcome of strong moral. Previous research highlighted those values can be viewed from western and Islamic perspectives. The objective of this paper is twofold, and they are (i) to provide a comparison of western and Islamic values and highlight the difference in values (ii) to analyze the application of Islamic values in an Islamic focused university in Malaysia, namely Universiti Sains Islam Malaysia (USIM). USIM has five Core Values, namely (i) Professional; (ii) Trustworthy; (iii) Efficient; (iv) Global and (v) Consensus. Islamic values have been found to also include a majority of Islamic values except for Power and Hedonism of Western values. This is expected as all community would want to instil good values amongst its community members to ensure the integrity and sustainability of its community in the long run. Islamic values do not include Power and Hedonism of Western values, because in Islam, Muslims believe that only Allah SWT has the ultimate will and power over life and death. As for hedonism which refers to worldly pleasures, Islam encourages the attitude of promoting mashlahah rather than focusing on worldly pleasures. USIM’s core values are much in line with Islamic values and it too does not include Power and Hedonism in its core values. Value of Tawheed is not included in the core value of USIM but it is embedded in its Vision. This paper has provided some preliminary analysis of the difference between Islamic and Western values and the adoption of Islamic values in an Islamic focused university being USIM. With the practice of Islamic values in USIM, it is hoped that USIM will be able to achieve its vision of producing “competent intellectual, leaders and professional based on the Muslim intellectual tradition, noble values of religion and culture for the universal good”.","PeriodicalId":350106,"journal":{"name":"The Journal of Muamalat and Islamic Finance Research","volume":"55 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133831022","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Muhamad Azhari Wahid, Khairil Faizal Khairi, Hamdi Hakeim Mudasir, Muhammad Farid Hadhari Mahamed Rusdi, Azuan Ahmad, Mohd Zakhiri Md Nor, Azrul Azlan Iskandar Mirza
{"title":"Potential Shariah Non-Compliance Practices in E-Bidding: Observation from E-Bidding Platforms in Malaysia","authors":"Muhamad Azhari Wahid, Khairil Faizal Khairi, Hamdi Hakeim Mudasir, Muhammad Farid Hadhari Mahamed Rusdi, Azuan Ahmad, Mohd Zakhiri Md Nor, Azrul Azlan Iskandar Mirza","doi":"10.33102/jmifr.v19i1.419","DOIUrl":"https://doi.org/10.33102/jmifr.v19i1.419","url":null,"abstract":"E-bidding has gained popularity in the modern world due to the technology advancement. Despite its popularity, contracting parties are exposed to Shariah non-compliance practices, which may lead to financial losses and disputes. Islamic jurisprudence provides guidelines assisting bidders and auctioneers in avoiding these practices. This study examines e-bidding platforms in Malaysia and highlights potential Shariah non-compliance issues based on Islamic jurisprudence guidelines. This study employs a qualitative data analysis method. Data are collected from the e-bidding platforms and their published documents. The findings revealed several practices that might lead to Shariah non-compliance issues in e-bidding platforms, including unverified bidders, elements of uncertainty, riba, gambling, and unavailability of khiyar (option). This study suggests several improvements to enhance procedures of e-bidding platforms to avoid financial losses and disputes among contracting parties in e-bidding. Hence, the improvement like verification of bidders, fulfilment of requirement for trading ribawi item, avoidance of element of uncertainty and gambling activities, and offering khiyar to successful bidder are suggested.","PeriodicalId":350106,"journal":{"name":"The Journal of Muamalat and Islamic Finance Research","volume":"16 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134443090","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A Robo-Advisory Framework for Islamic and ESG Compliance – A Benchmark Study on the S&P 500 Stock Index","authors":"Klemens Katterbauer, Philippe Moschetta","doi":"10.33102/jmifr.v19i1.408","DOIUrl":"https://doi.org/10.33102/jmifr.v19i1.408","url":null,"abstract":"The last decade has brought a revolution in the financial sector, enabling more individuals and institutions to access the stock market. Islamic finance has similarly gained considerable interest from the growing Muslim population that is looking for Shariah-compliant investment options. Furthermore, a growing number of investors are looking for investment options that are environmentally sustainable and adhere to ethical values. While there are various Shariah advisory services, these services differ widely in their assessments of whether a company is Shariah-compliant. Given the cost of these services, it is typically only available for large institutional investors. The objective of this article is to address the challenges of providing individualized Shariah-compliant investment services automatically while providing a comparison with Environmental, Social and Governance (ESG) compliance to assist both investors who are seeking Shariah and ESG compliant investments. Hence, the study presents a new unsupervised learning framework for the determination of Shariah compliance and evaluates it with ESG compliance. The framework first filters the companies based on whether they have any exclusionary activities and then performs a clustering approach in order to classify them into compliant and non-compliant stocks. The framework was evaluated on the S&P 500 stock index and delivered acceptable and reasonable classifications. This Robo-Shariah advisor framework allows automatized real-time Shariah compliance evaluation based on a data-driven approach. The practical implication of this new framework is the enablement of objective, data-driven Shariah-compliant investment recommendations that can be easily integrated with Shariah expert information. The social implication is the empowerment of retail investors in being able to easily set up their own Shariah-compliant portfolio.","PeriodicalId":350106,"journal":{"name":"The Journal of Muamalat and Islamic Finance Research","volume":"34 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114481655","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Muhammad Syukri Mohd Ashmir Wong, Mohd Zaid Daud, Nur Hafizah Harun
{"title":"The COVID-19 Pandemic and Its Impact on Islamic Tourism in Malaysia","authors":"Muhammad Syukri Mohd Ashmir Wong, Mohd Zaid Daud, Nur Hafizah Harun","doi":"10.33102/jmifr.v19i1.406","DOIUrl":"https://doi.org/10.33102/jmifr.v19i1.406","url":null,"abstract":"Malaysia possesses all the characteristics that make it an ideal Islamic tourism destination and adequately cater to the demands of Muslim tourists with an abundance of halal cuisine, prayer facilities, and Islamic attractions from places to festivals. With advantages including an extensive and well-developed halal network, good infrastructure, consistent economic growth rate, government-backed business incentives as well as political and economic stability, Malaysia is an ideal Muslim-friendly destination that also appeals to non-Muslims. Unfortunately, an epidemic outbreak emerged in December 2019 from Wuhan City, Hubei Province, China, which sparked the Covid-19 virus to significantly impact the world including Malaysia and paralyzed the tourism sector. Thus, this study aims to analyse the impacts of the pandemic on Islamic tourism in Malaysia and refine Malaysia's recovery plan towards this outbreak. This study is qualitative research by using documents analysis to achieve the objectives. The finding indicates the impact of Covid-19 can be monitored from two factors, first is based on statistical numbers of tourists entering Malaysia from arrival and expenditure before and after Malaysia closed the border, and second, the declining number of growth projections from the tourism sector that was affected from this pandemic. Hence, a recovery plan under the Ministry of Tourism and Culture (MOTAC) and Standard Operational Procedures from Malaysia National Security Council (MKN), has been established to overcome the impacts and fresh start for Islamic Tourism in Malaysia.","PeriodicalId":350106,"journal":{"name":"The Journal of Muamalat and Islamic Finance Research","volume":"76 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116259635","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Muhammad Nooraiman Zailani, Nurul Huda Mohd Satar, Roza Hazli Zakaria
{"title":"Maqasid Al-Shariah Based Index of Socio-Economic Development: A Literature Review","authors":"Muhammad Nooraiman Zailani, Nurul Huda Mohd Satar, Roza Hazli Zakaria","doi":"10.33102/jmifr.v19i1.409","DOIUrl":"https://doi.org/10.33102/jmifr.v19i1.409","url":null,"abstract":"A healthy society is not just merely reflected by the result of a country’s income level and high industrial activities but covers more than just an increase in income and standard living. In Islam, the creation of human beings in this world is to achieve al-falah, which is success in the world and hereafter. Thus, it is vital to measure the development progress by integrating the principles of Shariah law. Maqasid al-Shariah based Index of socio-economic development attempts to establish an index to monitor the development progress according to the Maqasid al-Shariah principles that provide basic protection in five key dimensions including the protection of faith, life, intellect, posterity, and wealth. This study reviews the indicators proposed in integrating the five dimensions of Maqasid al-Shariah in developing and measuring socio-economic development from the Islamic perspective through extensive reading of the past studies. The study concluded that the development of Maqasid al- Shariah based Index is challenging, particularly in establishing indicators pertaining to the faith dimension. In addition, most of the studies were constructed at a macro level with readily available data and data that are not frequently available. This can limit the scope of the variables or indicators used in the construction of Maqasid al-Shariah based Index.","PeriodicalId":350106,"journal":{"name":"The Journal of Muamalat and Islamic Finance Research","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131266807","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Nurudeen Abdulkadir, Safeza Mohd Sapian, Norhazlina Ibrahim
{"title":"Adoption of Islamic Trade Financing Facilities Among SMEs in North-West Nigeria: A Preliminary Investigation","authors":"Nurudeen Abdulkadir, Safeza Mohd Sapian, Norhazlina Ibrahim","doi":"10.33102/jmifr.v19i1.414","DOIUrl":"https://doi.org/10.33102/jmifr.v19i1.414","url":null,"abstract":"The existence, growth and development of Small and Medium-sized Enterprises (SMEs) depend on trade and commercial activities. Trading activities, especially cross-border trade, have been acknowledged as an important instrument for sustainable economic growth, development, poverty alleviation, inclusiveness and global stability. However, for the smooth flow of trade and commercial activities, SMEs need a specialized form of financing (i.e., trade finance). North-West Nigeria being a Muslim-majority region, Islamic trade finance should be a better alternative than conventional trade finance. Thus, this preliminary study aims to examine the significant factors influencing the adoption of Islamic trade financing products among SMEs owner-managers in North-West Nigeria. Besides, the study investigates the moderating effects of age, gender and education on the adoption of Islamic trade financing products among SMEs owner-managers. To achieve this aim, a quantitative survey of 36 randomly selected SMEs was undertaken of which 35 were valid for analysis. A hierarchal multiple regression approach was employed to analyse the data. The results of hypotheses testing revealed that religious obligation and awareness have a direct and significant influence on the adoption of Islamic trade financing products. On the contrary, relative advantage, compatibility, complexity, perceived risk, social influence, and government support were found to be insignificant. Also, age, gender, and education were found to be insignificant moderators in this study. The results of this preliminary study indicate the need for massive awareness and the importance of promoting the “Islamicity” of Islamic trade financing facilities by Islamic banks in North-West Nigeria.","PeriodicalId":350106,"journal":{"name":"The Journal of Muamalat and Islamic Finance Research","volume":"20 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127278021","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Moratorium in Islamic Hire Purchase Financing: A Shariah Perspective","authors":"Azmuddin Razali, Mohammad Amir, Wan Harun","doi":"10.33102/jmifr.v18i2.367","DOIUrl":"https://doi.org/10.33102/jmifr.v18i2.367","url":null,"abstract":"This study examined the implementation of moratorium in the Islamic hire purchase financing based on Al-Ijarah Thumma Al-Bay’ (AITAB) from the Shariah perspective. The implementation of moratorium by Bank Negara Malaysia (BNM) is a new practice in the banking and finance industry in Malaysia. Implementing the moratorium causes several changes to the AITAB contract such as the extension in contract tenure and the increase in the total payment obligation due to the profit charged on the outstanding principal. This study analysed these changes from the Shariah perspective by using the al-takyif al-fiqhi methodology. The results of the analysis confirm the practice of moratorium by IFIs is in line with the Shariah requirements as long as it is agreed by the parties to the contract - which are the bank and the customer. Needless to say, both Ijarah Policy Document and Hire Purchase Act 1967 allow any forms of amendments including profit compounding when the AITAB contract is restructured, provided that such amendments are agreed between the contracting parties. Despite this permissibility, IFIs are still required to comply with the new ruling issued by SAC BNM that prohibits the practice of profit compounding during the COVID-19 crisis. Although, in principle, the ruling is based on the concept of ihsan (beneficence) which is not compulsory (wajib) but rather recommendation (istihbab) from the Shariah perspective; however, from the regulatory perspective the ruling is compulsory for IFIs to comply pursuant to section 28(1) and 28(2) of Islamic Financial Services Act 2013 (IFSA) that stated compliance with Shariah means compliance with any ruling of the Shariah Advisory Council. The moratorium is seen as a manifestation of the concept of ihsan (beneficence) towards the customers affected financially due to the COVID-19 pandemic. This commendable effort should be encouraged and continued by the Islamic financial institutions in upholding the Shariah principle of maslahah and lifting of difficulties (raf al-haraj), particularly in the current outbreak of COVID-19 and the impact of MCO.","PeriodicalId":350106,"journal":{"name":"The Journal of Muamalat and Islamic Finance Research","volume":"115 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127616503","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}