Papers by Muhammad Hakimi Mohd Shafiai
Cash waqf, which is practiced widely in Malaysia, still lacks a contribution to society. In order... more Cash waqf, which is practiced widely in Malaysia, still lacks a contribution to society. In order to tackle such issues, cash waqf based crowdfunding was introduced. However, it also failed to attract a maximum number of people to endow their cash and failed within a year of its commencement. Therefore, the purpose of this study is to explore the concept of waqf based crowdfunding and to understand the reasons that led to its failure. A single, instrumental case study research design is used, which is comprehended by interview with the managing partner of the only waqf-based crowdfunding platform. The findings reveal that the management of the platform lacked an understanding of the problems that would arise from its operations. Therefore, this study proposes a solution which will help the management of the waqf-based crowdfunding platform to improve its operational framework. The study will open the door for the researchers and the audience from this specific industry to propose di...
ABSTRAK Perniagaan Nabi Muhammad SAW berlaku sebelum beliau dilantik menjadi Nabi, adapun setelah... more ABSTRAK Perniagaan Nabi Muhammad SAW berlaku sebelum beliau dilantik menjadi Nabi, adapun setelah menerima wahyu (al-Quran) Baginda tidak lagi memiliki kesempatan untuk melakukan aktiviti perniagaan. Sebagai seorang nabi dan juga bekas peniaga berjaya, Muhammad SAW sentiasa menyokong serta mengajarkan cara berniaga yang baik sesuai syariah kepada para sahabat. Perniagaan yang dijalankan sesuai dengan arahan Baginda telah membawa para sahabat dan juga umat Islam ketika itu ke arah kejayaan perniagaan, malahan tidak hanya membawa keuntungan bagi peniaga sahaja tetapi juga terbukti membawa umat Islam kepada suatu perekonomian yang maju (economic civil society). Apakah sebenarnya yang diajarkan oleh Muhammad SAW sehingga menyebabkan umat Islam memperoleh kejayaan dalam perniagaan dan juga kemajuan ekonomi ketika itu? Di atas maksud tersebut kajian kualitatif ini dijalankan dan untuk memperoleh hasil kajian yang signifikan maka kajian ini menggunakan kaedah kepustakaan, pensejarahan dan ...
Al-Risalah: Forum Kajian Hukum dan Sosial Kemasyarakatan, 2018
Pasar pertama umat Islam yang didirikan oleh Rasulullah SAW dan para sahabat setelah membangun ma... more Pasar pertama umat Islam yang didirikan oleh Rasulullah SAW dan para sahabat setelah membangun masjid Nabawi adalah pasar Suqul Anshar yang berada di Madinah dekat dengan masjid Nabawi. Padazaman Khulafaurrasyidin pembangunan masjid selalu diiringin dengan membangun pasar, ini menunjukkanbahwa pasar memiliki arti penting bagi Islam. Pasar pada waktu Rasulullah SAW dan Khulafaurrasyidin dibangun dan diatur seratus persen berdasarkan syariat Islam. Semua orang bebas memasuki pasar tanpaada halangan, tidak dipunguti pajak, sewa, dan biaya lainnya. Mekanisme pasar Islam ialah mekanismepasar bebas dimana pemerintah tidak ikut campur dalam menentukan harga pasar namun pemerintah disini berperan sebagai pengawas pasar (al-muhtashib) untuk memastikan tidak terjadi gangguan di pasar seperti Ikhtisar, tadlis, dan distorsi pasar. Struktur pasar Islam ialah pasar persaingan sempurna (PPS) dimana hargaditentukan oleh kekuatan permintaan (demand) dan penawaran (supply). PPS yang terjadi secara ad...
In this study, we attempt to document the progress in Islamic banking industry of Pakistan toward... more In this study, we attempt to document the progress in Islamic banking industry of Pakistan towards fostering an egalitarian and equitable financial intermediation. We use a set of quantitative indicators to objectively asses the performance of Islamic banks towards fostering a participative, inclusive, cost effective and real sector oriented financial intermediation. We highlight that currently, the performance of Islamic banks on these fronts leaves much to be desired. We highlight that the low finance to deposit ratio and high average cost of financing is inconsistent with Maqasid-e-Shari"ah. We also identify various categories of poor people who need finance for their health, education and small business working capital needs, but they cannot be served by Islamic banks by using the available product structures. We give a geographical presence of Islamic banks which shows that they are mainly based in big urban cities. We argue that most of the Islamic banking debt based products are close, but relatively expensive substitutes. Finally, we discuss that the distinctive and preferable imperfect substitute product structures like equity based financing contracts are not acceptable to the major part of the real sector industries as well as to the Islamic banking stakeholders, i.e. depositors and shareholders in their current form.
IQTISHADUNA: Jurnal Ilmiah Ekonomi Kita, 2021
In the development of the agricultural sector, farmers are the key to its success. However, to a ... more In the development of the agricultural sector, farmers are the key to its success. However, to a certain extent, specific interventions need to be done considering the problems faced by most farmers, such as financial constraints, lack of assistance, facilities, agricultural tools, and lack of land, which are obstacles to developing farmers enterprises. Therefore, this study attempts to analyze the potential of Islamic social finance tools in farmers development, particularly in facilitating financial problems of farmers in line with the government efforts in strengthening the agricultural sector. The distribution of productive zakat, infaq, alms and waqf (ZISWAF), based on the application of contractual contracts inherent from Islamic legislation and the management of productive ZISWAF, will be highlighted in this paper. The methodology of this study is based on a qualitative approach like gathering information from library research, and hence it is analyzed based on a deductive ap...
Pertanika journal of social science and humanities, 2018
Numerous studies have discussed the political and economic history of Malaya with an emphasis on ... more Numerous studies have discussed the political and economic history of Malaya with an emphasis on British economic exploitation, but with little focus on the economic exploitation of Malay rulers before the colonial era. This paper is a qualitative study exploring the economic exploitation of Malay rulers before the arrival of the British using content analysis of secondary data. The study finds that the exploitation of Malays started during the time of the Malay Sultanates when Arabs, Indians and Chinese arrived as traders and middlemen. The rulers of the pre-colonial era gave preference to foreigners over locals, and this practice confined locals to low-wage activities. The economic isolation was magnified during British rule and economic policy. After independence, the Malay economy improved due to the efforts of the nationalist political parties in implementing the New Economic Policy
This study pertains to the relevance of spirituality and morality in Human Capital Development. T... more This study pertains to the relevance of spirituality and morality in Human Capital Development. The Conventional Economic Theories do not regard morality as an essential component of their principles; they consider material good as the end, and the end justifies the means. Moral issues like justice, honesty and fairness are treated as outside elements to be used by the state only to correct the short comings of the market transactions. This grave error is the result of their misunderstanding of what constitute ‘human-self’ and, therefore, what is to be considered as ‘self-interest’. What they describe as ‘self’ is infact the ‘Ego-self’; which is the lower part of human spirit, and that which theologians have described as ‘animalistic soul’. The conventional economist failed to recognize the human ‘Angelic-spirit’ in their definition of human-self, that which is the essence and the bearer of human moral faculties. The implication of such error is that moral aspect of human-being is i...
This paper aims to highlight the issues in Zakāt and Waqf in Malaysia and to provide a solution s... more This paper aims to highlight the issues in Zakāt and Waqf in Malaysia and to provide a solution so that the income disparities amongst the Malay ethnic group can be minimized. Through library reach methods, we explored the literature in order to come up with the concrete conceptual model. It is found from the thorough study of literature that in the current SIRC, the issues of assets management and accounting transparency exist that make the Zakāt and Waqf system more vulnerable. Hence, it is suggested that Shari’ah Council might outsource some of its responsibilities to Islamic Microfinance Institutions so that the issues of assets management and accounting transparency can be overcome. The conceptual model that is presented in the study would provide more structured and transparent Zakāt and Waqf collection and distribution process for the Shari’ah Council so that maximum benefits can be derived in the interest of the Muslim Malays.
Research in Corporate and<i>Shari’ah</i>Governance in the Muslim World: Theory and Practice, 2019
Abstract This chapter looks at the relationship between governance and economic development in se... more Abstract This chapter looks at the relationship between governance and economic development in selected Organization of Islamic Cooperation (OIC) member countries. This chapter outlines the concept of good governance in Islamic faith and episteme and provides some empirical evidence on the governance development nexus in the literature. It also describes the state of governance in OIC countries through descriptive statistics on some indicators. It looks at the relationship between governance and economic development. In contrast, it explores the relationship between governance and economic growth. The results highlight the need for reforms in the quality of institutions, establishing rule of law, emphasising on governance in the policy agenda and bringing strong accountability mechanisms.
The Growth of Islamic Finance and Banking, 2019
International Journal of Academic Research in Business and Social Sciences, 2021
This study aims to examine the performance of single mother cooperatives in Peninsular Malaysia. ... more This study aims to examine the performance of single mother cooperatives in Peninsular Malaysia. Specifically, the study investigates challenges and factors that contribute to the success of single mothers in cooperative business. Despite many opportunities in operating cooperative business and many among them can achieve commendable success in the cooperative business through training and cooperative skills, the results show that the performance of single mother cooperatives has not been satisfactory and need attention from the government. The study was conducted by evaluating 23 single mother cooperative groups. The analysis of the cooperatives' performance was extracted through detailed interviews with the selected single mothers among the cooperative members. This study found that 61% of the total number of cooperatives in Peninsular Malaysia were inactive while only 39% of the cooperatives were still active. The analysis reveals that the higher number of inactive cooperatives was mainly contributed by three main influential factors; which are limited resources, managerial incompetency, and lack of members participation in single mother cooperatives. The results provide additional information and contribution to the involved parties to improve the single mother cooperatives to meet the economic, social, and cultural needs.
Islamiyyat, 2020
Kekurangan modal kewangan merupakan masalah utama yang dihadapi oleh Pekebun Kecil Sawit Persendi... more Kekurangan modal kewangan merupakan masalah utama yang dihadapi oleh Pekebun Kecil Sawit Persendirian (PKSP) dalam meningkatkan produktiviti kelapa sawit. Walaupun terdapat 6 buah institusi perbankan Islam menyediakan mikro kredit kepada golongan petani, tetapi produk ini tidak mendapat sambutan dari golongan petani terutamanya PKSP. Bagi merungkai faktor yang menyebabkan PKSP kurang berminat mengambil mikro kredit dari perbankan Islam, kertas ini menggunakan konsep niat Al-Ghazali untuk mencapai dua objektif yang dikaji. Objektif pertama, menganalisis kesan sikap terhadap mikro kredit Islam, faktor halangan dan manfaat tanggapan kepada niat menggunakan mikro kredit Islam. Objektif kedua, menganalisis kesan faktor halangan dan manfaat tanggapan kepada sikap terhadap mikro kredit Islam. Bagi memahami fenomena ini, kajian telah dilaksanakan di daerah Hilir Perak, Malaysia yang melibatkan seramai 362 orang PKSP. Data kajian yang diperolehi melalui soal selidik dianalisis menggunakan St...
Journal of Emerging Economies and Islamic Research, 2018
Household financial vulnerability is an important area of research in household economic studies.... more Household financial vulnerability is an important area of research in household economic studies. Hence, a number of studies have attempted to identify the factors that make households vulnerable to financial shocks. In Malaysia, the research is scant on this topic especially when it comes to low-income households. Therefore, the study aims to identify the macroeconomic factors that make the household vulnerable to financial shocks. For this purpose, the study uses the autoregressive distributed lag modelling approach as an estimation technique. The results revealed that household debt, prices of goods, interest rate and unemployment have a positive long-run relationship with household financial vulnerability while income has a negative relationship. Further analysis confirms that these predictors of financial vulnerability also affect the low-income groups. This study would be of interest to the academicians and policy makers in the area of household economics.
Journal of Islamic Accounting and Business Research, 2019
Purpose This paper aims to propose a derivation of Shariah risk from both the Islamic finance the... more Purpose This paper aims to propose a derivation of Shariah risk from both the Islamic finance theory and theory of contracts in Islamic law. Specifically, it deliberates the derivation of Shariah risk following the contracts validity and apprises the readers of the Shariah risk issues currently under debate. Design/methodology/approach This study reviews the relevant literature and presents an analysis of contract rulings through evidence derived from the Qur’an, Hadith and other secondary sources of Islamic law. Various theories of Islamic finance and Islamic law of contracts are identified, to examine the general principles and essential elements and conditions of a valid contract. Findings This analysis asserts that any circumstances that may render invalidity of the contract will trigger Shariah risk. More importantly, this paper highlights the implications of invalid contracts, based on the opinion of Hanafi jurists, who concluded that Shariah risk may be derived from any void ...
International Journal of Islamic and Middle Eastern Finance and Management, 2018
Purpose This study aims to examine the consumption behaviour in Organization of Islamic Cooperati... more Purpose This study aims to examine the consumption behaviour in Organization of Islamic Cooperation countries. Design/methodology/approach Using time series and panel data, this study estimates rational expectations permanent income hypothesis model and the intertemporal elasticity of substitution, and examines the response in consumption to expected and unexpected changes in income. Findings The evidence supports the phenomenon of loss aversion. The response of consumption to unexpected income changes is statistically significant in only one-third of the countries in the sample. Conversely, the response of consumption to expected income changes is statistically as well as economically significant in one-fourth of the countries in the sample. The intertemporal elasticity of substitution is also statistically insignificant in majority of OIC countries in the sample. Practical implications The evidence in support of loss aversion in preferences could help in explaining the low penetra...
Journal of Islamic Accounting and Business Research, 2019
Purpose This study aims to comparatively analyze the performance of Islamic and conventional inco... more Purpose This study aims to comparatively analyze the performance of Islamic and conventional income and equity funds using various performance evaluation methods. Design/methodology/approach The authors comparatively analyze the performance of mutual funds using measures, such as tracking error, Sharpe ratio (1966), Treynor ratio (1965), M-square measure by Modigliani and Modigliani (1997) and information ratio. The authors also use market timing and selection measures, such as Treynor and Mazuy model (1966), Henriksson and Merton (1981) model and Fama’s decomposition approach (1973). Findings The authors find that Islamic equity funds are as much competitive as conventional equity funds. All Islamic equity funds have positive Sharpe ratio, Treynor ratio and net selectivity measure. Islamic equity funds are slightly less risky in general. Islamic equity and income funds generally have positive Jensen's Alpha and a positive market timing ability. However, the authors find that Is...
Jurnal Ekonomi Bisnis dan Kewirausahaan, 2018
The growth of demand and production in palm oil has increased rapidly from time to time, as this ... more The growth of demand and production in palm oil has increased rapidly from time to time, as this scenario has a positive impact on the development of economy. However, in the long run,the scenariomay give a negative impact if it is not closely controlled; like the issue of haze. Therefore, thisstudy is aimed to create a sustainable mechanism framework of palm oil farming among smallholders using Islamic micro financing.This is because; the position of smallholders is an issue in the sustainability debate in the palm oil industry at the global level. Using library research, this study discovered the constraints and the challenges faced by independent smallholders to create sustainable palm oil farming. Hence, the study was developed around the specific objectives that looked into the Islamic microfinance form and appropriate mechanisms for the implementation. In doing so, this study employed the qualitative method. From the results, it was concluded that Islamic microfinance is indee...
Jurnal Hadhari An International Journal, 2017
Rural poverty is considered as a major challenge for the current economies. In Malaysia, the rura... more Rural poverty is considered as a major challenge for the current economies. In Malaysia, the rural farmers faces problems in the cultivation process due to unavailability of financial support. The support of Department of Agriculture is only limited to first stage of agriculture project, leaving the farmers in problems for the second stage. Hence in this study we have provided a solution to the issues confronted by the famers through the involvement of Amanah Ikhtiar Malaysia. The aim is to involve Amanah Ikhtiar Malaysia to provide support to the rural famers based on the profit and loss sharing scheme unlike the current mode of financing. Before proposing a contractual framework, a qualitative and narrative form of literature review method is used to explore the issues. It is suggested that al-Muzāra'ah contract is more suitable to provide assistance to the rural famers with the supervision from Department of Agriculture. This study would help not only Amanah Ikhtiar Malaysia but also other microfinance institutions in developing a partnership based contract that would be specifically designed for the poor rural farmers.
Humanomics, 2017
Purpose This paper aims to integrate Islamic and mainstream economics framework towards a more re... more Purpose This paper aims to integrate Islamic and mainstream economics framework towards a more realistic understanding of Muslim consumption behaviour. Design/methodology/approach The model incorporates some of the Islamic institutions like period-wise deduction of Zakat from endowments. It also includes bequests which could be significant given the Islamic injunctions on inheritance distribution and the significance placed on the institution of family. Furthermore, the model integrates the assumption that consumption opportunity set will axiomatically filter out the prohibited consumption goods from the consumption set in both contemporaneous and inter-temporal consumption. Findings Zakat ensures contemporaneous redistribution from endowment surplus households (those having Zakatable endowments above Nisab) to endowment-deficient households (those having Zakatable endowments below Nisab). The lifetime resources are scaled down for endowment surplus households because of the payment...
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Papers by Muhammad Hakimi Mohd Shafiai