The Potential of Islamic Crowdfunding to Finance Small Construction Projects in Malaysia

Abstract

In an era marked by a multitude of global challenges, such as geopolitical tensions like the Russia-Ukraine conflict, regional lockdowns affecting key Chinese provinces, and the strict enforcement of monetary policies, all exacerbated by the ongoing COVID-19 pandemic, which has further intensified funding challenges for infrastructure projects, this study delves into the potential of Islamic crowdfunding as a means to finance small-scale construction projects in Malaysia. Utilizing qualitative research and content analysis, this investigation explores the applicability of crowdfunding within Malaysia's construction sector. Data collection involves a comprehensive review of pertinent literature and documents, with thematic analysis revealing crucial insights. The paper introduces a framework that harmonizes crowdfunding principles with Islamic ethical values, aiming to foster inclusive economic growth. This research advocates for collaboration among various stakeholders, including Islamic crowdfunding platforms, construction companies, investors, and regulatory authorities, to harness the potential of Islamic crowdfunding. By doing so, they can contribute to Malaysia's economic growth, social development, and the expansion of ethical finance within the construction industry.