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Purpose ― The aim of this study is to explore the initiative taken by Bank Islam Malaysia Berhad (BIMB) in upholding Islamic social finance (ISF) through the innovative BangKIT Microfinance product. Design/Methodology/Approach ― This paper adopts the qualitative approach to review and synthesise the relevant literature on microfinance and Islamic microfinance and, moreover, analyses the BangKIT Microfinance product offered by BIMB. Findings ― The paper identifies the ISF initiative undertaken by BIMB as one of the primary objectives of Islamic banks with the noble aim to contribute to the society. This study makes some recommendations for further improvement of the product to unlock the full potential of ISF. It also proposes such a unique ṣadaqah-based product to other Islamic financial institutions (IFIs) and Islamic microfinance institutions (IsMFIs) to promote the provision of credits to individuals and businesses that lack access to fundamental financial products and services. Originality/Value ― This paper sheds light on the use of loans and ṣadaqah-based products as a microfinance initiative offered by an Islamic bank. Although there are several microfinance institutions (MFIs) in Malaysia, this product is amongst the pioneer contributions to the role of Islamic banks in ISF.

The recognition of cryptocurrency as digital assets in Malaysia under the purview of security governed by the Securities Commission of Malaysia contributed to cryptocurrency's positive acceptance, with evidence that the number of cryptocurrency users is growing. Nonetheless, due to the unique characteristics of cryptocurrency, the lack of legal regulation on cryptocurrency inheritance will have an impact on crypto estate administration. Apparently, the law on cryptocurrency in Malaysia is still in its infancy, and the existing issue of frozen estate in Malaysia, which is constantly increasing, prompted the researchers to investigate potential loopholes in cryptocurrency estate administration from a legal and shariah standpoint. The study conducts content analysis by examining the relevant statutories, such as “the Probate and Administration Act 1959, the Capital Market Service Act 1997, the Capital Market and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019, Shariah Resolutions and Fatwas in Malaysia”, other literatures related to cryptocurrency estate administration. As a result, there are legal loopholes in cryptocurrency estate administration in Malaysia that prevent cryptocurrency from being inherited by the entitled beneficiary. The issue of cryptocurrency inheritance may arise in the near future; thus, this study provides policy implications to the Malaysian regulators to solve the highlighted lacuna as well as social implications to the Malaysian society to consider cryptocurrency in their inheritance planning.

PurposeThis study aims to empirically investigate the impact of political instability on the banking stability of the dual banking system in the Middle East and North African (MENA) countries.Design/methodology/approachThe study measures banking stability with probability of default (PD) and Zscore by employing the generalised method of moment (GMM) between 2007 and 2021 on the dual banking system in the region. The authors further estimate short-long-run situations coupled with a robustness test using a generalised least square (GLS) model.FindingsThe authors' findings indicate that institutional factors of political stability, crisis period, high-crisis countries, law and order and macroeconomic indicators influence the two types of banking stability in the region. The authors found the consistency of the factors explaining stability in the region in both short-and long-run situations. Consequently, the study also reveals the adverse effects of crisis periods and high-crisis countries on banking stability.Practical implicationsThe results of this study explicitly identify the critical need for sustaining political stability and abiding by laws and order to achieve dual banking stability in the region. Therefore, policymakers may consider allowing the region's banks to operate beyond retail banking since diversification enhances banking stability.Originality/valueThe authors' study balances by employing dual stability measurement in predicting the impact of political instability, law and order and other indicators on the MENA region's two banking models. This study uncovers the effect of the global crisis period on banking stability and high-crisis countries in the region and verifies the models' robustness.

Purpose This paper aims to collect evidence on the issues and challenges in cryptocurrency estate planning and the possible approaches or methods to address them. Then, this paper also aims to understand Malaysia’s situation compared to global situations and determine how the country could address those challenges. Design/methodology/approach This study adapted a standard systematic review protocol named preferred reporting items for systematic reviews and meta-analyses, guided by three research questions: what are the challenges of cryptocurrency estate planning, how do researchers and practitioners address the issues or challenges and how could Malaysians move towards sustainable cryptocurrency estate planning? Relevant documents reported on cryptocurrency estate planning were analysed using thematic analysis. Findings The results of this review suggested that the issues and challenges in cryptocurrency estate planning can be described from six aspects: awareness, financial aspects, law, process, security and taxation. On the other hand, the approaches or methods to address these challenges may be categorised into laws, processes and technology. Further, a framework for cryptocurrency estate planning in Malaysia is proposed as an initial step towards a sustainable economy and society in Malaysia. Research limitations/implications The state and the use of cryptocurrency are still considered new in most countries globally. Hence, people are yet to be aware of the issues that may arise from it. Nevertheless, cryptocurrency estate planning will soon become an area of interest in which this study could enhance the literature and contribute knowledge to understanding the situation. Originality/value This study collected evidence on the issues and the approaches to address cryptocurrency estate planning. This study then focused on the Malaysian perspective by proposing a framework that was not covered by existing studies.

Purpose This paper aims to explore the level of hibah knowledge among Muslims in Kedah and investigate its determinants, consisting of education level, education stream, religiosity, social influence and social media. Design/methodology/approach This study is quantitative in nature. Questionnaires were distributed to collect data from Muslims in Alor Setar, Kedah. In total, 195 questionnaires were collected and data were analyzed using descriptive analysis, correlation analysis and multiple regression analysis. Findings The study finds that Muslims in Alor Setar, Kedah have good knowledge of hibah. Further, education stream, religiosity, social influence and social media were identified as significant factors that influence their knowledge of hibah. Research limitations/implications The first limitation is its narrow focus in surveying Muslims only in Alor Setar, Kedah. The second limitation is the limited number of determinants used in investigating hibah knowledge among Muslims and the techniques used in analyzing the data. Despite these limitations, the study’s findings provide invaluable insights into the factors influencing hibah knowledge among Muslims in Alor Setar, Kedah. Practical implications This study provides insights regarding the significant personal factors and environmental factors to increase Muslims’ knowledge of hibah. The link between the Islamic education stream and hibah knowledge provides a clear indication that Islamic education can curb the economic problems caused by the substantial amounts of frozen and unclaimed assets in Malaysia. A significant relationship between the environmental factors (social influence and social media) and hibah knowledge also implies that the government and private agencies related to Islamic estate planning and management may use these significant determinants as part of the marketing strategy to increase the usage of hibah as an alternative tool for estate planning. Originality/value This study contributes to a better understanding of Muslims’ knowledge about hibah. The government and related agencies in Islamic estate planning and management can now gain better insights into Muslims’ level of knowledge about hibah and the factors influencing their knowledge of hibah as an effective tool for Islamic estate planning and management. Hence, more effective strategies can be recommended to enhance the knowledge of Muslims on hibah. The findings of this study should be of value to the government in its effort to address the increasing number of frozen estates in Malaysia.

Estate planning is one of the crucial elements of managing property during a person’s lifetime. It involves both handling and managing property during one’s lifetime and after death. For Muslims, the objectives of Shariah, which are known as Maqasid Shariah, can be attained if their finances are planned in a wise and cost-effective manner. Unfortunately, it was reported that frozen inheritance assets have steadily increased from the day of Independence, amounting to RM70 billion in 2020 indicating the seriousness of the matter. The freezing of inheritance property is detrimental to the economy and thus opposes the spirit of Maqasid Shari’ah which recommends that it should be properly managed for the benefit of the public. This is where estate planning plays its role in ensuring quicker and easier distribution of assets and property. Hence, the objective of this research is to investigate Malaysian Muslims’ tendencies in estate management planning and its determinants. A total of 406 respondents throughout Peninsular Malaysia responded to the prepared survey, where the Partial Least Squares Structural Equation Modelling (PLS-SEM) approach was employed as the main data analysis for this study. The findings revealed that altruism, advantages and compliance were significant in influencing tendencies of Malaysian Muslims in Islamic estate planning. Surprisingly, service was found to be an insignificant factor in influencing the tendencies of Malaysian Muslims in Islamic estate planning. This study provides some insights on the role of policymakers and estate planning related industry in ensuring the compliance of estate planning product and increasing the awareness of Muslims to do estate planning by promoting the advantages and importance of doing so. Policymakers are also welcome to engage in this matter by providing earlier education on Islamic estate planning among Muslims in Malaysia.

Purpose This paper aims to provide an overview of research topics and publications produced by Islamic Finance scholars in Malaysia, focusing on six research domains (Shariah-based, Islamic Finance, Islamic Economics, Islamic Accounting, Islamic Management and Halal Management) in five public universities in Malaysia. Design/methodology/approach This study seeks to analyse the research gaps and recommend future research based on publications produced by Islamic Finance scholars from five public universities in Malaysia. Data on talents were collected from the MIFER report 2016 and each universities’ website, while research and publications of the talents were collected from Google Scholar and the Scopus database. The extracted data were analysed using bibliometric analysis in VOSviewer version 1.6.15. Findings The results show that the five selected universities talents have different research strengths according to six research domains highlighted in MIFER 2021 and Beyond Report. All five universities are found to contribute the least research in Halal Management domain. In view of the increasing prominence of this area of research in the national and international levels, these universities and other universities in Malaysia can generate more research in Halal Economy, Halal Management, and other related areas within this domain. The finding indicated that each university tends to have a strength according to the different domains, and 2019 is the most productive year for Islamic Finance publications. Analysis from productive scholars and co-citations shows that the authors collaborate within the same university to create a different topic for each research cluster. Research limitations/implications The bibliometric analysis only captures the general keyword terms, which may be limited to the only generalised sub-research areas. Practical implications This bibliometric study, which is based on the expertise of researchers, complements meta-analysis, and qualitative structured literature reviews aid researchers or talents in developing future research directions such as Green economy, Cryptocurrency, Fintech, Halal Management and others. In addition, this is a case study in nature and can serve to enhance understanding the landscape of Islamic finance education and as a reference for practices in institutions of higher learning from around the world. Originality/value To the best of the authors’ knowledge, this study is a new research initiative comparing five top programme providers in the field of Islamic finance using a bibliometric approach to enhance talent development and capacity building. With the government’s efforts to further promote Malaysia as the Islamic Financial Hub, this study highlights the research gap in Islamic finance based on scholars’ publications from selected five Malaysian universities and potential topics for future research. This study focuses on the research domain for each university, the trend of publishing, the number of journals published by academics, productive scholars and citations by Malaysian universities, and examines if the publications align with current industry needs.

Objective – The aim of this study is to assess the financial performance of credit cooperatives in Malaysia. Design/methodology – This study utilizes the unpublished financial data of credit cooperatives from the Malaysian Cooperative Commission. This study picks 9 credit cooperatives which serially listed in 100 best cooperatives from 2010 to 2017. Five basic financial ratios (equity ratio, liquidity ratio, leverage ratio, profitability ratio, and dividend payout ratio) were calculated to measure the financial performance. Results – The result shows that the equity ratio is in the range of 0.61 to 0.9 possibly because credit cooperatives utilize more funding from shareholder equity compared to debt. The result also shows a high dividend pay-out ratio. However, the liquidity ratio is still low and credit cooperatives that score the highest liquidity ratio might be due to the age of establishment. Last but not least, the leverage ratios and profitability ratios of Malaysian credit cooperatives should be improved by increasing the profitability and restructuring debt. Research limitations/Implication – The availability of the data as there are other credit cooperatives listed in the top 100 cooperatives from 2010 to 2017 but could not be analyzed because important data such as total investment, loans, equity, dividends are not available. Novelty/Originality – The empirical application of ratio analysis to identify the financial performance facilitates a novel investigation of credit cooperatives performance by placing emphasis on the equity, liquidity, leverage, profitability, and dividend payout of credit cooperatives with various degrees of performance.

Purpose This paper aims to develop the best practices of Islamic estate planning for Muslims. Islamic estate planning is a fixed proposal for the management and outlook of an individual’s assets throughout their life and upon their passing, created by means of existing Islamic estate planning tools, for instance, farāʾiḍ (inheritance), waṣiyyah (will), hibah (gift) and waqf (endowment). Design/methodology/approach The paper used an interview method to obtain information on the best practices of Islamic estate planning. Semi-structured interviews were conducted with the respondents and estate planning providers in the northern region of Peninsular Malaysia. The data gathered was analysed using thematic analysis which involved five phases to construct the best practices of Islamic estate planning. Findings The paper identifies important elements in Islamic estate planning. The elements were outlined as the crucial things that Muslims should do to plan for intergenerational transfer and earning a good share in the hereafter. Research limitations/implications The first limitation of the paper is that the best practices were developed based on a qualitative method. There is no evidence of its validity, which is a gap that can be explored in the future. Second, it involves the perceptions of two types of respondents (individuals and Islamic estate planning providers), which may be broadened to other related stakeholders such as regulators, in future studies. Originality/value This paper presents a framework of best practices of Islamic estate planning, it being one of the first studies to do so, which is not only useful and relevant for Malaysian Muslims but also for Muslims in other countries.

Purpose This paper aims to develop a meaningful single-source reference for Islamic economics and finance scholars concerning zakat intellectual structure published in journals indexed by the Scopus database. Design/methodology/approach The bibliometric method is used to describe and analyze the evolution of publication structure and its various co-relations such as co-citation, co-authorship and bibliographical coupling. Findings The authors discuss the influential and conceptual aspects of the published literature on zakat. An interesting finding is that few papers have received more than 50 citations. The analysis revealed that the Journal of Islamic Accounting and Business Research is the most cited source. Nevertheless, the list of the eight most cited papers reflects that research in this field is still dearth. Further, the authors find that zakat is discussed within the context of religion, its institutional framework, its role to eradicate poverty and distribution management of zakat. The authors also identify and present 14 research directions that will further stimulate scholarly work in the zakat field. Research limitations/implications The study confines on English papers and reviews published in journals indexed by the Scopus database only; hence, the study is representative of the moderate and high-quality papers published in this area of knowledge. Practical implications Researchers envision that this bibliometric study will complement meta-analysis and qualitative structured literature reviews as a method of reviewing and evaluating the scientific literature of this study area; thus, this may help researchers for futuristic research directions. Originality/value To the best of the authors’ knowledge, this paper is the first to tackle the zakat area from a bibliometric aspect. The authors believe that this will help scholars and researchers to stand on firm bases regarding the scientific development of this area of study.

This study aims to investigate the effectiveness of zakat institutions from the zakat recipients’ perspective. Researchers opine that empowering is a matter of utmost importance in order to ensure recipients are self-sufficient, self-reliant and can withstand any hardship come it may. Therefore the zakat authorities need to safeguard a robust empowerment regime and for that reason the assessment of that performance may require a newer dimensional approach where ‘the recipients’ who are the main stakeholders do evaluate the contributory performative assessment through the main four perspectives as enshrined by the Balanced Scorecard technique which include financial effectiveness, customer effectiveness, internal effectiveness and learning & growth effectiveness. Hence, the goal is to investigate the effectiveness of zakat institutions of Kedah, Malaysia in particular. A total of 427 responses received, where Partial Least Squares approach was employed as the main data analysis of this study. The research identified that all the four components are interlinked and need a coherent addressing in terms of zakat recipients’ upliftment. The recipients did put emphasis on the priority of the financial effectiveness, but in a non-profit environment where the customer effectiveness is vital, may require the service enhancement along with putting the emphasis on learning and making certain systematic rejuvenation of the processes, as well as the planned financial decision to make effects conducive to empowerment of the recipients.

When a Muslim dies, there are four main things should be settled upon his death: funeral expenses, debt settlement, will and faraid. Upon settling funeral and debt of the dead, estate management is one of the obligations required to be carried out by the heir using faraid. Nevertheless, based on the recent statistics issued by Amanah Raya Berhad, there are more than RM60 billions worth of properties of the deceased’s in Malaysia have been frozen from being distributed to the respective heirs. Unfortunately, 95% of the properties belong to Muslims. Among reasons of the undistributed properties are due to unawareness of the heirs, cost of property claims and law restriction. If this situation continuously happens, there will be a waste of capital in economy. To avoid this problem, hibah (inter vivos) and will were suggested to be used as tools to avoid problems in distributing the wealth and properties to the heirs. However, there are limitations in the use of these tools. Hence, the purpose of this research is to investigate behaviour of Malaysian Muslims in managing their estate specifically on Hibah and further to determine the factors that influence Muslim to choose Hibah. This is an empirical study which employed Logit Model analysis of data collected from survey to Muslim in Malaysia. This study manages to collect 406 questionnaires and based on the result it shows that income and knowledge are significant in explaining the Muslim behaviour to choose Hibah. This imply that Muslim would more likely to choose Hibah as to their estate planning if they have more income and knowledge about Hibah; either basic or technical knowledge.

When a Muslim die, there are four main things should be settled upon his death: funeral expenses, debt settlement, wasiyyah and faraid. Upon settling funeral and debt of the dead, estate management is one of the obligations required to be carried out by the heir using faraid. Nevertheless, based on the recent statistics issued by Amanah Raya Berhad, there are more than RM60 billions worth of properties of the deads in Malaysia have been frozen from being distributed to the respective heirs. Unfortunately, 95% of the properties belong to Muslims. Among reasons of the undistributed properties are due to awareness of the heirs, cost of property claims and law restriction. If this situation continuously happens, there will be a waste of capital in economy. To avoid this problem, hibah (inter vivos) and wasiyyah were suggested to be used as tools to avoid problems in distributing the wealth and properties to the heirs. Hence, the purpose of this research is to investigate behaviour of Malaysian Muslims in managing their estate specifically on wasiyyah and further to determine the factors that influence Muslims to choose wasiyyah. This is an empirical study which employed Logit Model analysis of data collected from surveys to Muslims in Malaysia. This study managed to collect 406 questionnaires and based on the result, it shows that age, health, religiosity and advantages are significant in explaining the Muslim behaviour to choose wasiyyah. The results also imply that Muslim would less likely to choose wasiyyah as to their estate planning if they have more age, good health condition and high level of religiosity and may tend to use the other tools available in Islam.

Recently the emergence of sensitive issues related to spiritual or believe among nation occurred. All these kinds of issues must be tackled from the grass root especially among youth. In relation to the above issues, government as well as private sectors manages to setup various activities in order to develop and improve spirituality among youth. Even though many activities have been implemented for a long time and a lot of cost, including time and money spend, the effect of spirituality activities among youth are not certain. Therefore, the objective of this paper is to explain a training module for nurture spiritual foundation among youth in building and fostering a self-identity. It is enabling them to confront trials and challenges and subsequently persevere in developing an excellent and visionary personality based on the First National Principle, ‘Belief in God.’ In this paper, we explain the process of the development of the MY Spirituality module; the delivering method as well as the intervention session to test runs the module. Finally, this paper also shares the feedback from the implementation of a spirituality program using the module.

This study examines the impact of zakat on the life sustainability of individuals. The data were collected from 427 returned questionnaires from zakat recipients in eleven districts of Kedah. Using PLS-SEM, it was found that asnafs’ receiving offers a very low level of assistance that provides little empowerment. The results support the notion that institutional contributory performance has a positive effect and that the level of sustainability does increase after receiving zakat, but there are issues that need to be addressed carefully. The study further examines the moderating role of demographic factors, such as earnings, age, marital status and gender. It initiated a newer dimension through incorporating before-zakat and after-zakat scenarios in examining their comparative impact on sustainability.

The aim of this study is to investigate factors that influence the practice of making will among Muslims in Malaysia. In Malaysia, it can be noted that some progress towards enhancing Islamic estate planning has taken place, particularly in the practice of Islamic will. Islamic estate planning industry in Malaysia has grown and now offers a variety kind of products to facilitate Malaysian Muslims to manage and improve their estate planning matters. Nevertheless, the value of unclaimed and frozen assets in this country keeps growing annually. Hence, this study aims to look at the practice of making wills in Malaysia and investigate factors that influence Muslims to do it. Using a quantitative analysis, a total of 338 questionnaires were used to achieve the objective. The method of analysis employed in this study include Independent Sample T-Test, One-Way Analysis of Variance (ANOVA), Pearson and Correlation as well as Multiple Regression. The results of this study indicate that there is a significant difference between gender (male and female), educational levels and monthly income levels towards Islamic will practice. Nevertheless, only ethnicity showed no significant difference towards Islamic will practice. The correlation analysis showed a significant and positive correlation between knowledge, wealth management, institutional factor and religiosity toward Islamic will practice. The results show that knowledge and wealth management are the main variables that influence Muslims towards Islamic will practice. This explains that higher level of knowledge and wealth management among Muslims will lead to a higher practice of Islamic will. These results suggest that the government and Islamic estate planning industry should put a greater emphasis on attracting and educate Muslims to manage and plan their wealth well during their lifetime.

The aim of this study is to examine the awareness on spirituality programs among youth in Malaysia. In Islam, spirituality is defined as the presence of a relationship with Allah that affects the individual’s self-worth, sense of meaning, and connectedness with others and nature. It has significant effect for health, positive development of a person’s sense of self and for enabling identity to frame the individual’s pursuit of a life path eventuating in idealized adulthood. The lack of spirituality may leads to social problems such as loitering, racers, bohsia, bohjan, club servers (GRO), alcohol consumption, and drug abuse. To minimize these problems, the government as well as the private sectors manage to setup various programs and activities in order to develop and improve spirituality among youth. Hence, awareness on these programs is imperative. Use of press media, incorporation in mainstream education (basic, secondary and tertiary), celebrities’ participation in spirituality programs are some of the ways by which spirituality programs and activities can be heralded. Using a survey of 4703 youth in Malaysia, this study aims to examine the awareness of youth in Malaysia towards the existence of spirituality program for youth. The paper concluded with recommendations of ways of sensitizing youth on the need to be spirituality conscious.

Waqf is one of the benevolence charities that are highly encourage in Islam. Through the donated waqf property, the benefit will provide to all of the beneficiaries directly or indirectly. Thus, all waqf property should be managed and administered efficiently. A good and effective institutional mutawalli is capable not only to develop but also to utilize the property. However, most institutional mutawalli facing challenges in their governance practices; hence, these properties are not being utilized to achieve their full impact to other beneficiaries. Therefore, the aim of this chapter is to analyse the current utilization of waqf property and to explore the governance practices based on experience of corporation institution as an institutional mutawalli (IM). A qualitative method applied in this study where formal and semi-structured interview conducted where the participants are those in leadership positions such as CEO and the top management of the chosen institutional mutawalli. This study has chosen Waqaf A-Nur Corporations Berhad (WANCorp) as a case study. The finding from this study discussed in detail the practice and experience of the waqf institution in utilization and governance their waqf properties. This study identifies the crucial characteristic in the waqf property which needs to possess in utilizing and governing the waqf property. The finding also could benefit the similar and different institutional mutawalli and policy makers to identify the important interdependent characteristics to help them attain growth performance.

There has been an increased public interest and awareness in waqf practices which is one of the most effective social finance instruments in Islam. History has proven that good governance practices affect the effective use of waqf property which has become one of the mechanisms for wealth creation in a country. Unfortunately, most of institutional mutawalli are facing challenges in their governance practices, leaving the waqf properties not fully utilized for the benefit of society. Thus, this chapter aims to examine in-depth the utilization of waqf property and governance practices of an institutional mutawalli under State Islamic Religious Councils (SRIC) in Malaysia. A qualitative method applied in this case study where formal and semi-structured interview conducted on a focus group involving those in leadership positions such as CEO and the top management of the institutional mutawalli. The first part of discussion is on governance practices of the institutional mutawalli, followed by discussion on their experiences and current execution in utilizing the use of waqf properties. This study identified the crucial characteristic in the waqf property. Several recommendations are made on how to improve the effective use of waqf property and best governance practice that can be implemented to help the institutional mutawalli attain their growth performance.

Institutional mutawalli is the institution responsible for maintaining and managing the waqf property. The success of the administration and management of the institution mutawalli is the key to professional and sound governance, which has certainly led to the sustainability and continuity of the institution. Good and proper governance promotes the optimal use and benefit of each entrusted waqf property to others. Previous studies have found that most institutional mutawalli face challenges in their governance practices, which is why these waqf properties are not used to archive their full impact on other beneficiaries. The aim of this study is therefore to understand the current utilization of waqf property in Malaysia and to explore governance practices based on the experience of higher education institutions as an institutional mutawalli (IM). A qualitative method is employed in this study using case studies with purposive sampling, where formal and semi-structured interviews were conducted with the selective representative of the IM. The participants are those in leadership positions, such as the CEO and the top management of the institution mutawalli from the higher education institution. The findings of this study discussed in detail the practice and experience of waqf institutions utilization and governance of their waqf properties. This study identifies the key characteristics of the waqf property that must be possessed by the utilization and management of the waqf property. The findings could also benefit similar and different institutional mutawallis and policy makers from identifying the essential interdependent characteristics to help them achieve growth performance.

Although the literature is adamant on performance assessment, sustainability, self-actualisation, and so on, understanding its ‘inter-role' in asnaf (zakat recipient) welfare and its implicative magnitudes is a positive input in augmenting the zakat spectrum. And though the goal is to have self-actualisation that depends on attaining sustainable measures in each derivation. In Islam, self-actualisation is suggestively dissimilar than the conventional wisdom because the so-called self-interest motive remains inopportunely missing in such Islamic set-ups since the importance of collective-notion simply overrides the self-goals, and in turn, human development and its dignity as well as the societal progression becomes paramount in such social orders. Hence, the ‘Islamic self-actualisation' is purely and necessarily based on a balanced social development (Maslahah ‘Ammah) through the correction of one-self (tazkiatun Nafs) while preserving the future generations' (hifzul nasl) welfare and so on. Henceforth, it is important to protect the honour of self and the society (ird) and maintaining intellect (aql) and wealth (maal) for improving the social cohesion (Ukhuwah or brotherhood) in communities. As the unswerving goal of a zakat recipient (Asnaf) is to have his faith, life, intellect, honour, and wealth well protected, it is expected that he or she can withstand the consequences of life but remain proactive in society. And in the end, the recipient may opt-out the spell of remaining as asking-basket-syndrome in the shortest time possible through the effective zakat initiatives and incentives to overcome pointless uncertain environmental or other perennial shocks and similar.

The role of Islamic financial intuitions is essential in providing Islamic financing specifically to investors and stakeholders to invest in real estate. Therefore, understanding the link of the real estate cycle to the financial institutions is crucial. This is because the real estate cycle is one of the critical elements that will affect financing decisions and strategies of the banking sectors. Hence, this paper employed meta-analysis which aims (1) to systematically review survey the growing literature on real estate cycle and its links to the financial institutions; (2) to highlight possible cross-country trend analysis financial strategy among investors in dealing in with the real estate cycle. The results of the study suggest that during the peak cycle or period of crisis, most investors are risk-averse and increase the risk to the financing of real estate as well. This real estate cycle that occurs almost every 10 years in conventional real estate sectors also give some consequences to the Islamic financial institutions. This paper suggests to investors to understand the real estate cycle and its impact on Islamic financial institutions.

The construction sector in Malaysia grew at 8.1% from 2013 to 2016 supported by the growth in commercial property and the residential sectors at 12.5% and 9.8% respectively and has been on an increasing trend since the last four years (2013: 10.9%, 2014: 11.6%, 2015: 12.1 %, 2016: 10.3%) (Department of Statistics Malaysia, 2016). The Knight and Frank survey 2015 reported that commercial property financing comprised of 60% of properties priced at more than RM2 million and another 40% for properties priced below RM2 million. Commercial property prices have been on an increasing trend due to increased cost and interest rates as well as uncertain economic fundamentals. For Malaysia, interest rates (BLR) differ across banks ranging from 6.6% to 6.9% and the base rate (BR) ranges from 3.0% to 4.1% due to economic bubbles. Commercial property financing remains a vital issue for borrowers of both conventional and Islamic banks. For borrowers of conventional banks, an increase in interest rates means higher monthly installments which in turns may increase the default risk particularly in times of economic uncertainties. For borrowers of Islamic banks, although the financing is interest-free, the pricing of commercial property financing is still benchmarked against the conventional interest rates. This study highlights the problems that arise when Islamic financing still relies on the interest rates. In macroeconomic theory, financing strongly depends on the movement of the interest rates. In contrast, Islam prohibits interest due to the existence of price manipulations by some parties, considered as unfair, and the lack of risk- sharing mechanism. Therefore, this study seeks to gather opinions from Islamic scholars on the acceptability of using interest rates in determining commercial property rentals as well as identifying a potential Islamic financing model where the features of the potential Islamic financing model are discussed.

Purpose This paper aims to present a conceptual model on service quality of zakat institutions that are responsible for collecting, managing and distributing zakat in Malaysia. Zakat is an Islamic religious “tax” charged on the rich and well-to-do members of the community for distribution to the poor and the needy as well as other beneficiaries based on certain established criteria according to the Qur’an. The main aim of zakat is to protect the socio-economic welfare of the poor and the needy. Design/methodology/approach The paper reviews and synthesizes the relevant literature on service quality. The paper then proposed a conceptual model to study the service quality of zakat institutions. Findings The paper identifies the appropriate methods to examine the extent of service quality of zakat institutions. Such evaluations are crucial for organizations like zakat institutions to function effectively to achieve the noble objectives of socio-economic justice through proper distribution of wealth. Originality/value This paper presents a conceptual model of service quality of zakat institutions which would be useful for further empirical research in this area. The findings are not only relevant and applicable to Malaysia but also to other Muslim countries.

This paper aims to examine the efficiency level of Islamic banks in Malaysia and their relation to credit risk, liquidity risk and operational risk. Twelve Islamic banks were chosen as samples for this study which were taken by the availability of data, through each banks’ annual report from 2008 to 2013. This study was carried by applying the Data Envelopment Analysis (DEA) and Multiple Regression Analysis to achieve its objectives. The finding shows that Islamic banks in Malaysia exhibited a total of 77.1% of overall efficiency of technical (OTE), 83.1% of Pure Technical Efficiency (PTE) and 92.6% of Scale Efficiency (SE). Despite the global financial crisis that occured during the middle year of 2007 to the end of 2009 which slightly affected Asian countries such as Malaysia, nevertheless, Islamic banks seem to be more robust during the crisis than conventional banks. This is because of its basic nature which prohibited interest payments (riba) in all transactions. This study shows that credit risk has a negative significant relationship with efficiency of Islamic banks, while liquidity was found to be positive related to efficiency of Islamic banks. This study also found that the size of the bank has positive significant relationship to efficiency. Finding from this study give contribution to the policy makers and regulators as well as to the managers of Islamic banks by providing empirical evidence on the performance of the Islamic banks in Malaysia towards the efficiency level and risks relationship.

Zakat is compulsory charity in Islam to fight poverty and inequality, but there is a gap in literature concerning the performance of zakat in terms of achieving sustainable development for its recipients. Therefore, this study intends to assess the role of zakat in achieving the sustainable development status for recipients. This study collected primary data through a questionnaire survey among 440 zakat recipients from the Kedah State in Malaysia. The data were analysed using structural equation modelling. The findings reveal that zakat helps to improve the overall sustainable development status of its recipients, but the economic aspect improves more than the social and environmental aspects. Therefore, to ensure the success of zakat in line with the goals of achieving sustainable development for recipients as advocated by the United Nations, the policymakers and zakat administrators around the world and particularly in Malaysia need to focus on redesigning the zakat management program.

Prayer plays a noteworthy role in Muslims daily lives. Quran and Sunnah testify that regular prayers can boost one’s health, can remove the level of stress, and may make one more productive and vigour. Such findings also noticed by medical and psychological experts, and likewise many contemporary research have shown wide-ranging outcomes in terms of improved wellbeing when prayer is done with sincere devotion. Nevertheless what is lacking is that the policy makers in the Islamic world need to initiate whether there exist any linkages between prayer and productivity, which needs to be appreciated more by them, as well as by Islamic economists and social scientists, Islamic business professionals and Islamic jurists, and then through a concerted effort and dynamic fact finding mission and verification to ascertain the Qur’anic beliefs in our daily lives. This studies using descriptive analysis to explain the linkage between the Islamic prayer and productivityDOI: 10.15408/aiq.v8i2.3160

The aim of this paper is to identify what are the impediments in implementing an effective Zakah distribution in Kedah, Malaysia. Auspiciously, post-colonial Malaysia is experiencing robustness in terms of Zakah collections, as the statistics are currently signifying, but at the same breath the degree of effectiveness in Zakah distribution has not been providentially catching that optimistic evolution. And even if, the Zakah is duly distributed, the point to note is that the effectivity of that distribution has indubitably remained in question. So this gap is an issue that has been observed by the givers, and if the collection is to increase further, the issue of effectivity in Zakah distribution needs to show a healthier trend to convince these worried payers. The implications of resolving the issues discussed below may assist to enhance this sector, if timely addressed and taken applicable measures for remediation. DOI: 10.15408/aiq.v9i2.4002

The world economy is still suffering from the severe global financial crisis that caused the failure of several banks. This has encouraged economists worldwide to consider alternative financial solutions and attention has been focused on Islamic banking and finance as an alternative model. Hence, this study examines the efficiency level of Islamic banks during the financial crisis specifically in Middle Eastern and Asian countries from 2007 to 2010. Moreover, bank-specific and risk factors were examined to understand the determinants of efficiency. The efficiency of Islamic banks is measured using data envelopment analysis by adopting the intermediation approach. The financial information is extracted from BankScope database for a four year period (2007–2010) which includes 79 Islamic banks across a number of countries. The study also critically analyses pure technical efficiency and scale efficiency of the Islamic banks in Middle Eastern and Asian countries and estimates their return to scale. The findings explain that Islamic banks were able to sustain operations through the crisis. However, the study also shows that the majority of these Islamic banks were scale inefficient. Most of the scale inefficient banks were operating at decreasing returns to scale. This study also found that both profitability and capitalisation were the main determinants of Islamic banking efficiency. Hence, the findings of this study have policy implications and make a contribution to policy-making by providing empirical evidence on the performance of the Islamic banks and their efficiency levels.

Selected Issues in Islamic Economics is a collection of articles discussing various issues from the perspective of Islamic economics.The book provides readers with new and contrasting views of issues currently facing Islamic institutions.The book can serve as a useful text for students and practitioners of Islamic economics.It also provides a unique opportunity for readers to not only comprehend Islamic economics but also to understand its future development and the role it plays in the global market.

PurposeThe purpose of this paper is to analyze the changes in productivity of zakat institutions in Malaysia from 2003 to 2007. The data consist of a panel of 14 State Islamic Religious Councils (SIRCs) in Malaysia. Efficiency is measured by the Malmquist Index, using a data envelopment analysis (DEA) technique.Design/methodology/approachThis paper uses Malmquist Productivity Index, using a DEA technique. The Malmquist productivity measures are decomposed into two components: efficiency change and technical change index.FindingsThe results showed that total factor productivity (TFP) has increased slightly for the whole industry, which is mainly due to the technical change rather than the efficiency change. Further decomposition of the efficiency change into its pure technical and scale efficiency components suggest that the pure efficiency is found to be a more important source of efficiency change than scale efficiency component.Originality/valueThis paper investigates the productivity and efficiency of zakat institutions in Malaysia. It will be of value to provide evidence to the policy makers to improve the efficiency of the institutions.

PurposeThis paper aims to present a conceptual model on the efficiency and governance of zakat institutions that are responsible in collecting, managing and distributing zakat in Malaysia. Zakat is an Islamic religious “tax” charged on the rich and well‐to‐do members of the community for distribution to the poor and the needy as well as other beneficiaries based on certain established criteria according to the Qur'an. The main aim of zakat is to protect the socio‐economic welfare of the poor and the needy.Design/methodology/approachThe paper reviews and synthesises the relevant literature on efficiency, governance and zakat. The paper then developed and proposed a conceptual model to study the efficiency and governance of zakat institutions.FindingsThe paper identifies the appropriate methods to evaluate efficiency and governance of zakat institutions. Such evaluations are crucial for the Islamic financial system to function effectively in order to achieve the noble objectives of socio‐economic justice through proper distribution of wealth.Originality/valueThis paper presents a conceptual model of efficiency and governance of zakat institutions which would be useful for further empirical research in this area. The findings are not only relevant and applicable to Malaysia but also to other Muslim countries.

The aim of this study is to examine the level of spirituality among Malaysian youth. The sample for the study consisted of 4, 703 youths through the stratified random sampling method. In this study the spirituality level for the sample were measured. This quantitative research was conducted using a survey method through questionnaires distributed to a total of 4, 703 youths age between 15 to 40 years from all races, religions and education backgrounds throughout Malaysia. This study applies a systematic stratified random sampling and the data obtained was analyzed using descriptive statistics, t-test and analysis of variance (ANOVA). The result showed that the level of spiritual among Malaysian youth is relatively high with mean at 8.02 out of 10. The spirituality level of Malaysian youth was also found to differ according to category of gender, religion, ethnic, category of primary school, category of secondary school, highest academic qualification at school level and highest academic qualification. This result implies that the level of spirituality is still have room for improvement and the government, non-government organisation as well as parents should take into consideration all the background of the youth when planning any spirituality development program. These to ensure that the program will be effective to increase their level of spirituality once its suitable with their needs according to their different background.

Sejajar dengan matlamat negara Malaysia menyasarkan pencapaian sekitar 20 peratus daripada pasaran perbankan domestik dikuasai oleh sistem perbankan Islam menjelang tahun 2010, pelbagai usaha dilaksanakan oleh kerajaan mahupun pihak swasta untuk terus membangunkan sistem kewangan Islam.Pelan Induk 10 tahun Perbankan Islam turut dilancar bagi mewujudkan satu sistem kewangan yang cekap, progresif dan lengkap selain memperkenalkan Malaysia sebagai pusat perbankan dan kewangan Islam di rantau ini. Kini, sistem kewangan Islam ialah sebahagian daripada sistem kewangan negara yang meletakkan Malaysia ke hadapan berbanding negara lain.Malaysia komited untuk membangunkan sistem perbankan Islam dan pada masa yang sama berusaha melaksanakan sistem kewangan Islam dalam struktur kewangan negara secara menyeluruh. Dengan peningkatan dalam dimensi kewangan Islam pada peringkat global, landskap kewangan Islam berubah dengan penglibatan pemain pasaran yang lebih pelbagai serta persekitaran yang lebih berdaya saing.Skop perniagaan kewangan Islam kini lebih meluas sebagai tindak balas kepada perubahan permintaan pelanggan pada peringkat global.Justeru, isu dan cabaran yang dihadapi oleh bank Islam untuk berkembang pada peringkat antarabangsa semakin kompleks.Antara cabaran global yang dihadapi ialah struktur instrumen kewangan, takaful dan pasaran modal yang lebih kompleks dan sofistikated akibat peningkatan dalam persaingan.