International Islamic religious authorities have commented negatively on the application of baiʿ al-ʿīnah (same-item sale-repurchase) in the Malaysian banking industry. These authorities include the Islamic Fiqh Academy of the Organisation of Islamic Cooperation (OIC) and Accounting and the Auditing Organisation for Islamic Financial Institutions (AAOIFI). They conclude that the application represents a prohibited ruse to legitimise usury through a sale transaction. This article examines the possible use of classical tawarruq as an alternative to baiʿ al-ʿīnah in the Malaysian banking industry, especially for retail financing. Several modes of classical tawarruq are considered. This research supports the application of classical tawarruq as an effective, viable and marketable Islamic financing arrangement.

Purpose This paper critically aims to examine the concept of beneficial ownership and its application in musharakah-based home financing. Design/methodology/approach The study applies the method of juristic interpretation in analyzing the meaning of beneficial ownership in legal documentation of musharakah-based home financing. This qualitative study uses content analysis approach that investigates the works of Islamic scholars on the concept of ownership and evaluates the concept of beneficial ownership in musharakah-based home financing from the Islamic perspective. Findings The result finds that beneficial ownership is considered a true ownership, as Shari’ah allows the transfer of ownership based on the offer and acceptance in a contract. Furthermore, the absence of legal registration does not mean the absence of true ownership, whereas all documentations and agreements have clearly stated rights and liabilities of each contracting parties. Originality/value This paper provides a fiqhi discussion of analyzing beneficial ownership in musharakah-based home financing. It shows that Shari’ah parameters are essential for the use of beneficial ownership to ensure its compliance with the Shari’ah requirements of milkiyyah (ownership).

The application of Islamic personal financing instruments in the Malaysian banking industries such as bay c al-c īnah (same-item sale-repurchase) and organised tawarruq (commodity cost-plus sale) has suffered a worldwide ban by prominent fatwa bodies in Islamic world. The situation has led to negative consequences such as bad perceptions to the Malaysian banking industries. The aim of this article is to provide an overview related to the Islamic personal financing instruments. Analysis focuses on issues related to the unlawfulness of the instruments. This qualitative research employs content analysis approach. It reveals that Islamic personal financing instruments such as bay c al-c īnah and organised tawarruq that have been practised in Malaysia contain unlawful elements that violate Islamic law and its objectives. Islamic banking and finance needs alternative instruments to replace the current unlawful financing tools to maintain Sharia compliant status.

Pemilikan aset merupakan aspek penting dalam pembiayaan perumahan secara Islam yang melibatkan kontrak jual beli. Walau bagaimanapun, isu pemilikan bermanfaat menjadi topik yang hangat diperdebatkan berikutan sistem kewangan Islam yang beroperasi dalam kerangka konvensional perundangan Malaysia. Kedudukan pemilikan bermanfaat dianggap bertentangan dengan konsep pemilikan dalam Islam sekaligus menyanggahi maqasid Syariah. Artikel ini bertujuan mengkaji kedudukan pemilikan bermanfaat daripada perspektif Syariah. Kajian ini menganalisis maksud dan ciri-ciri pemilikan dalam Islam seterusnya menghuraikan asal-usul pemilikan bermanfaat dari sudut perundangan. Kajian ini juga menjelaskan beberapa aplikasi semasa pemilikan bermanfaat dalam pembiayaan perumahan secara Islam dari aspek Syariah. Kajian ini menggunakan pendekatan analisis kandungan bagi menjelaskan konsep pemilikan bermanfaat. Hasil kajian mendapati pemilikan bermanfaaat diiktiraf sebagai pemilikan sebenar kerana Syariah membenarkan pemindahan pemilikan sebaik sahaja ijab dan qabul terlaksana.

E-wallet or digital wallet is an online application or service that allows a person to perform electronic transactions with other parties through the exchange of digital money (e-money) for a product or service. Its use is growing over time and it is said that Malaysia is the top country in its use in Southeast Asia. To date, there are more than 50 applications offered in the market by various vendors; bank and non-bank. From Sharia point of view, various issues arise regarding the status of e-wallet. Among the issues raised are the status of underlying contract according to Sharia since it will affect the status of e-money in the e-wallet itself. Furthermore, the issue of whether the e-wallet cashback is considered riba (usury) or not and its relation to qard (loan). However, in 2020, Bank Negara Malaysia (BNM) has determined that the e-wallet system is compatible with the wakalah (agency) agreement. Therefore, the objective of this study is to analyse e-wallet compliance to the standards of wakalah contract. This study focuses on the system that connects between users and e-wallet providers only. It is only limited to Touch n 'Go e-wallet, Grabpay and Boost, which are widely used by Malaysians. The study uses qualitative approach based on content analysis to obtain data from primary and secondary sources. Ultimately, this study reveals that these three e-wallets have not met the wakalah contract standards set by BNM.