Papers by SYED OTHMAN ALHABSHI
Against a backdrop of the shortcomings of current conventional monetary policy , there need to be... more Against a backdrop of the shortcomings of current conventional monetary policy , there need to be monetary policy rethinking to solve the economic disorder. Islamic finance could be a solution to address crises caused by excessive debts and the interest-based financial system. There need to be a benchmark reform by way of development of new Islamic framework to allow for the guidance of policy. An empirical analysis, which includes running of tests on the possible benchmarks , is done to demonstrate how the rate of return can fulfill goals of monetary policy. Under the Islamic macroeconomic model, monetary policy is able to influence the real sector directly in addition to the existing indirect influence through the financial sector with the use of risk and profit-sharing mechanism.
After barely half a century of experience, Islamic banking has become established as a niche indu... more After barely half a century of experience, Islamic banking has become established as a niche industry across the world, offering new and sophisticated financial products designed to be compliant with Islamic legal principles and common law. This comprehensive book explores the theory, principles and practices underpinning this rapidly expanding sector of banking.
The Malaysian Tak āful industry has experienced encouraging growth since its commencement in 1985... more The Malaysian Tak āful industry has experienced encouraging growth since its commencement in 1985. Annual growth rate of the industry has been estimated at 20%. Despitethis rapid rate of growth the rate of penetration is still not impressive. This paper seeks to find the reasons for this relatively low penetration rate of the Tak āful industry among Malaysians from the perspective of Malaysians who do not participate in the Tak āful industry. The method employed to achieve the objective of this paper was the survey method; Data analysed using Logistic Regression Model (LR).This research finds that marketing , is a robust predictor of Tak āful demand, as 50% of the respondents have not been approached by any Tak āful agents, while religion has a significant relationship with Tak āful consumption as majority of the respondents do not plan to have Tak āful policies as they opine that Tak āful is not permissible being similar to conventional insurance (Haram). Also age was a significant...
This book is one of the few books available that addresses the extent of the influence of religio... more This book is one of the few books available that addresses the extent of the influence of religion in today's society. The production of this book is considered very timely and appropriate given recent global tendency towards emphasizing the importance of religious values in all aspects of human lif
Journal of …, 2011
... Norashikin Ismail* Prof Dr Datuk Syed Othman Alhabshi** Prof Obiyathulla Bacha** ... The firs... more ... Norashikin Ismail* Prof Dr Datuk Syed Othman Alhabshi** Prof Obiyathulla Bacha** ... The first study is done by Norma, Shabri, Rosylin, Jarita & Rahim (2006) who investigated the efficiency of eleven life insurers and one Takaful operator, Takaful Nasional over the period 2002 to ...
Intellectual Discourse, 2016
In Malaysia, Islamic cooperatives are recognized as providers of some form of Islamic financial s... more In Malaysia, Islamic cooperatives are recognized as providers of some form of Islamic financial service similar to Islamic Banks and Takaful Operators. An Islamic Co-operative refers to a co-operative conducting activities and businesses based on Shariah principles. Being a non-banking financial institution, its main objective is to enhance social economic welfare of its members. As a form of captive social institution, it enables the less economically privileged members of society to pool resources as a cooperative. Malaysia is spearheading the Islamic banking and finance industry globally by having in place a proper and well-designed legal and regulatory framework for Islamic Financial Institutions, which includes the area of Shariah governance. However, the Shariah governance framework for the Islamic Co-operative in Malaysia is still in its infancy stage. In this paper, this area will be given focus and properly highlighted. Later, comparison will be made with the Shariah govern...
The failure of interest based programmes, such as micro-finance and anti-poverty programmes, in a... more The failure of interest based programmes, such as micro-finance and anti-poverty programmes, in assisting the destitute, eradicating poverty and reducing income inequality encouraged the authors to study in depth the alternative financial institutions to interest/riba that can solve such problems rather than harming individuals, communities, societies and countries. This raises the question of whether the different Islamic financial institutions can provide microfinance with zero-interest to eradicate poverty and reduce inequalities. This paper attempts to propose a hybrid model integrating four religious financial institutions to eradicate poverty within a very short period of time in a just manner and in a sustainable way for generations to come. We shall use both primary sources including text from the Quran and the Hadith, and data collected from secondary sources including books, articles and journals besides World Bank reports from the web sites. The paper intends to create aw...
Although strong evidence points to the existence of a relationship between economic development a... more Although strong evidence points to the existence of a relationship between economic development and growth and a well-developed financial system that promotes efficient financial intermediation through a reduction in information, transaction and monitoring costs, this linkage and the direction of causation is not as simple and straightforward as it may at first appear. The form of financial intermediation, the level of economic development, macroeconomic policies, and the regulatory and legal framework are some of the factors that can complicate the design of an efficient financial system. Most, if not all, Middle Eastern countries could benefit from financial reforms that would enhance the effectiveness of their financial system while making them less susceptible to crises. While most Middle Eastern countries have adopted the conventional interest-based financial system, a few, most prominently a non-Middle Eastern country Malaysia, are looking into financial reforms that would embrace and introduce elements of Islamic finance. The Palgrave Macmillan series on Financial Institutions, Reforms, and Policies in Muslim Countries breaks new ground by proffering studies that broadly address financial reforms and financial policies, whether in the context of conventional or Islamic finance in the broader Middle East, instead of the general pattern of focusing on financial or economic development in various Middle Eastern countries. As such, the series will also serve as a guide for the adoption of fundamental financial reforms in the Middle East region.
Macroeconomic Policy and Islamic Finance in Malaysia, 2017
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Papers by SYED OTHMAN ALHABSHI