Sustainable Property Financing for Malaysia Madani

Purpose: This article aims to address the deficiencies within Malaysia's Islamic property financing system, focusing on social justice and sustainability, in alignment with Shariah principles. Design/methodology/approach: Employing a comprehensive analysis, this study proposes a sustainable property financing model grounded in trade principles, emphasizing fairness, transparency and Shariah compliance. Findings: Several existing Islamic property financing practices in Malaysia fall short of Shariah principles, resembling conventional loans. The proposed model centers on property trade, ensuring genuine ownership transfer and adherence to Islamic tenets. Research limitations/implications: This article calls for a paradigm shift in Malaysia's Islamic property financing landscape, emphasizing the need for real trade transactions and legal ownership transfer. Further research should explore practical challenges and global adaptability. Practical implications: Implementing the proposed refinements could lead to a more equitable and sustainable financing ecosystem, addressing social justice concerns and fostering Shariah compliance. Originality/value: This study introduces a novel perspective, blending traditional values with modern financial practices, offering a promising framework for reshaping Malaysia's property financing trajectory. The proposed model aligns Shariah principles with social justice and sustainability goals. Keywords: Malaysia Madani, Ownership, Property Financing, Shariah, Social Justice, Sustainability
Introduction The inception of Bank Islam Malaysia Berhad in 1983 marked a significant milestone in the evolution of Islamic banking and finance in Malaysia. Over the years, Malaysia has emerged [...]