INTRODUCTION TO FIQH MUAMALAT

(ISH200)
ARTICLE REVIEW
PROBLEM OF MUAMALAT AND
ISLAMIC BANKING in MALAYSIA
PREPARED FOR:
USTAZ MUHAMMAD NOOR BIN
HUSSIN

NAME MATRIC NO.

MUHAMMAD AIMAN BIN BADEROL 2019427002
SHAFERI
MUHAMMAD NOOR FIKRIE BIN 2019434076
TUKIMAN
MUHAMMAD AIMAN BIN TAHIR 2019453138
 TABLE OF CONTENTS

1.0 INTRODUCTION

2.0 SUMMARIZE

3.0 DISCUSSION

3.1 Issues mentioned in the article

3.2 Meaning of the article

3.3 Implications of the article

3.4 Strength and weakness in the article

4.0 SUGGESTION

5.0 CONCLUSION

6.0 REFERENCE
1.0 INTRODUCTION

This article is about the Problem of Muamalat and Islamic banking in Malaysia
which ANALYSIS OF CURRENT MUAMALAT ISSUES IN THE BOOK OF AL-
MU‘AMALAT AL-MALIYYAH AL-MU‘ASIRAH to help the Muslim community
on issues and problems faced in banking matters involving halal and haram status.

Muamalat Islam is one of the Islamic laws. This muamalat has attracted the
attention of Islamic banks as well as conventional banks. There are many banks
introducing shariah-compliant products that are well received by Muslims. We chose
the topic regarding the Problem of muamalat and Islamic banking in Malaysia
because it helps the Muslim community to know Muamalat issues. There are many
articles in this article, there are many debates that scholars have taken seriously on
these issues by discussing the new issues individually and in groups as happened in
Majma'al-Fiqh al-Islami to see to what extent it complies with sharia or not. also an
interesting debate on this issue is that which is also found in the book Al-Mu'amalat
Al-Maliyyah Al-Mu'asirah Fi Daw'i al-Fiqh Wa al-Shari'ah by Qal'ahji. Among the
problems in Muamalat in Malaysia and Islamic banks in Malaysia.

There are many issues about Mualamat as many as nine things are selected in it.
Among the nine Muamalat issues found in it are Saving Money In Riba Banks Due
To Forced Circumstances And The Need To Take Interest, Buying Shares of
Companies That Deal With Riba, Buying Shares of Companies That Deal With Riba,
The Compulsory Party To Issue Zakat In Stock Companies, Issuing Bonds.
 2.0 SUMMARIZE

Many of the issues and problems found in Muamalat and Islamic Banking and peeling
on the issues of muamalat made are made but not as a whole are presented.

Saving Money In Riba Banks Due To Forced Circumstances And The Need To Take
Interest

Among the issues found in Muamalat as in the article is keeping money in the bank
due to compulsory conditions and the need to take interest. A Muslim is obliged to
keep money in a usury bank, if in his country or state there really is no Islamic bank,
for celebrating an emergency. The usury given by the bank from the savings made,
should be taken but should not be mixed with his own property but must be spent on
the public interest of the Muslims fiqh scholars agree, no group is entitled to use illicit
property except spent on the interests of Muslims . Its position does not change such
as confiscated property, usury, prostitution wages, house rent, wicked activities,
making statues and others. Expenses used not charity that can bring one closer to God
but is charity to avoid sin. But there are also views that reject the assumption of some
people who say that it is not possible to give usury to the poor and needy because
usury that has been taken by the depositors from the bank is illegal on the person
involved only but halal given to others who wish.

Buying Shares of Companies That Deal With Riba

Scholars also disagree with the issue of buying shares issued by companies whose
original purpose was to establish halal transactions but sometimes deal with usury as
well. Dealing with companies that deal with such usury is a must in Qal‘ahji’s opinion
because there is no big company that does not keep money in the bank. If it is
forbidden to buy the shares of these companies, it will make the big companies as a
whole fall into the hands of the wicked and infidels and the economy is in their hands.
But it is obligatory for the person who owns the shares in this company to perform the
process of legitimacy by issuing a share which in his opinion has been entered into
usury by spending it on the interests of Muslims.
Buying Shares of Companies That Deal With Riba

Forms of companies that are required to pay zakat Scholars nowadays also disagree
on the form of companies that are obliged to pay zakat on shares such as Muhammad
Abu Zuhrah, 'Abd al-Wahhab Khallaf and others are of the opinion that it is
obligatory to issue zakat on absolute shares whether shares in trading companies,
agriculture or enterprises. . The reason that it is obligatory to issue property zakat is to
be in stock, regardless of the activities undertaken by the companies that issue it.
There are also scholars today such as Wahbah al-Zuhayli, Yusuf al-Qaradawi, 'Abd
Allah al-Bassam and others argue that it is obligatory to issue zakat for the shares of
companies involved in business and agriculture, otherwise it is not obligatory to zakat
to on stocks enterprise company. Qal‘ahji thinks that it is also obligatory to pay zakat
on the affected shares to all types of companies mentioned.

The Compulsory Party To Issue Zakat In Stock Companies

Scholars argue that a company is a person as well taken into account and should be
treated as individuals who pay zakat. it is obligatory on the company to issue property
zakat and then divided by the zakat it pays, according to the shares available to the
shareholders. In accordance with the Resolution of the Academy of Islamic Fiqh
which took place in Jeddah number 3/8/88 in the fourth muktamar held in Jeddah 18-
23 Jumada al-Akhirah 1408H equivalent to 6-11 February 1988. Shareholders who
have shares that have not reaching nisab zakat and less than a year (haul) will not be
charged zakat because the company's assets in general have enough nisab and enough
haul. Qal‘ahji, on the other hand, is of the opinion that share zakat is obligatory on
shareholders and not companies but must meet certain conditions. From the above
statement it is clear that Qal‘ahji does not agree with the Resolution of the Academy
of Islamic Fiqh which took place in Jeddah number 3/8/88.

Issuing Bonds

is actually a loan borrowed by a company or country from a bondholder. The country

or company pays the prescribed interest to the bondholder. There are two forms of
this issue, namely in terms of the necessity of buying bonds by Muslims and the
necessity of the government to issue such bonds for sale in the market. It is not
obligatory for Muslims to buy the bond not because of the substance of the bond itself
but the bond is a letter related to the loan and engaging in a letter related to the loan is
something allowed by the Shari'ah instead of having to buy it because it is related to
certain benefits. into riba nasi'ah which is forbidden by Allah. Both bonds should be
issued in an emergency and should not be in a normal state. For example, a country is
stuck in a critical economic crisis in which there is no way to save it except by
making usury loans.

The objective of the article is to this writing is to clarify current muamalah issues.
Many studies are conducted through reference books on muamalat. This is important
because it can give a great understanding to Muslims in this country, especially to
banking institutions that practice shariah-based products, Islamic finance experts,
students of Islamic studies, religious officials and so on. The issues of muamalah are
raised by leading Islamic figures today such as Muhammad 'Uthman Syibir in al-
Mu'amalat al-Maliyyah al-Mu'asirah Fi al-Fiqh al-Islami (1996), Muhammad' Uthman
Syibir and others -others in Abhath Fiqhiyyah Fi Qadaya al-Zakah al-Mu'asirah
(2000), Mustafa al-Zarqa 'in the book Fatawa (2001) and others. These books discuss
various topics related to current muamalat issues which have a rather long debate and
detailed and more suitable for students at the postgraduate level. The issues of
muamalat presented in the book al-Mu'amalat alMaliyyah al-Mu'asirah Fi Daw'i al-
Fiqh Wa al-Shari'ah by Qal'ahji, in a simple, concise, interesting and suitable form to
be stared at students in the Diploma program, Bachelor level and the general public.

This article is to celebrate the power of evidence from the text of the Qur’an, Al-
Sunnah and from the Great Scholars This can be seen in the debate related to the title
of slow sale. Prioritizing convenience to Muslims This can be seen in its exfoliation
related to the need to keep money in usury banks in countries that do not have Islamic
banks, to prevent money being stolen. Being a means of emergency This can be seen
in the debate related to the need to keep money in usury banks in countries where
there is no Islamic banking. Prioritizing the well-being of Muslims in issues related to
the use of redit cards, Qal'ahji placed his operations based on the concept of the card
issuer kafalah which guarantees that when the card contract is made he will pay all
debts recorded on the card, on behalf of the cardholder.

3.0 DISCUSSION
3.1 Issues mentioned in the article.

Based on the article, the researcher discuss current muamalat issues that occur in
this day and age. There are many problems that are recognized and need
enlightenment to avoid doubt in society. among the issues discussed was buying
shares of companies dealing with usury. Scholars disagree on the necessity of buying
shares issued by companies that conduct halal transactions but sometimes deal with
usury. Qal'ahj is of the opinion that it is of the opinion that dealing with such
companies is a must because if the purchase of these companies is banned it is feared
it will fall into the hands of the wicked. But it is obligatory for the person who owns
the shares in this company to do the process of legalizing by issuing a share which in
his opinion has been usury by spending it on the interests of Muslims.

Another issues in the article is about characteristics of companies that are obliged
to pay zakat. Scholars nowadays disagree on the form of companies that are obliged
to pay zakat on shares. Some like Muhammad Abu zuhrah argue that it is obligatory
to pay zakat on shares absolutely. Such as shares in trading companies, agriculture
and enterprises. Yusuf al-Qaradawi said that

obligatory to issue zakat on shares of companies involved in business and agriculture

but not obligatory zakat on shares of enterprise companies.

Other than that, the researcher also raised issues about the party who is obliged to
issue zakat in the stock company. Qal'ahj argues that zakat on shares is obligatory on
shareholders and not companies but according to certain conditions. Among the
conditions is that the stock is owned by the party who is obliged to issue zakat. Based
on this, it is not obligatory to pay zakat on shares owned by Christians and charities
and all the shares owned reach nisab.

3.2 Meaning of the article.

Based on the article, the author wants Muslims to understand about current
muamalat issues according to the suitability of time and circumstances. This article is
very important to Muslims, especially banking institutions that practice shariah-based
products, Islamic finance experts.

The issues in this article are acceptable because all the issues that are told are
happening nowadays that require law and are explained in detail to avoid confusion.
3.3 Implications of the article.

Firstly, the implication of the article for individuals is they can know about laws for
the new issues related to muamalat nowadays. The reason is many people doesn’t
know about the law related the things they do about muamalat. Example, muslims are
still less clear about the law dealing with banks such as owning bank shares, working,
storing, borrowing and renting buildings and related matters [ CITATION JAK09 \l 17417 ].

Secondly, the implications of the article for society is muslims can invest confidently
without worrying about the law. There are several factors and elements in Islamic
muamalat transactions which are wholly forbidden in islam. These elements can cause
a transaction to be forbidden, deviate from the Shariah and became void. The
elements and factors are uncertainty and gambling [ CITATION BAN \l 17417 ].

3.4 Strengths and weaknesses in the article.

In my opinion, the strength of the article is the author stated

the law on current muamalat issues is clear. The author also states evidence from the
Qur'an and hadith for makes it easier to understand. The author also inserts opinions
from various ulama 'on issues related to muamalat nowadays. All of these will make
muslims believe about this article and remove any doubts about this article. Other
than that, the author gives an example of a situation that easily understood by
muslims. This is very important so that what him want to convey is easy to
understand.

Apart from that, my opinion of the weakness in the article is that the author does
not tell in depth the example of illegal investment according to Islam. This is very
important so that muslims know why the investment is illegal in Islam. Next, this
article that the abstract does not told us a clear overview of the research. It is
important to allow readers to evaluate the reability of the research.

4.0 SUGGESTION
Islamic banking system or muamalat is a shariah-based transaction and it is not
widely practiced in this country. Due to that, many people in this country are still not
exposed to this system and even this country uses more conventional banking system.
That is why business transactions that do not follow Islamic law that ultimately result
in illegal profits. Therefore, there are some suggestions that can be highlighted to
restore this situation from continuing.

RESTRUCTURING GOVERNANCE SYARIAH ISLAMIC BANKING

In the shariah governance system, sharia bodies play a role the most important as a
authoritative organization for oversee and supervise for ensure shariah compliance in
every operation and activity of this industry. Shariah bodies are entities legislation
composed of para qualified scholars in shariah and law, as well as independent and
trusted for assume responsibility for perform tasks on a regular basis professionals to
regulate all activities in institutions Islamic banking for a purpose shariah compliance
included publish legal regulations related to the field of banking Islam. The
governance system plays a very important role in strengthening the Islamic banking
system in Malaysia. However, there are doubts about the effectiveness of this
institution in the Islamic banking system which ultimately gives widespread freedom
to conventional banks to practice untrue transactions. institutional reconstruction is
the right action to be taken by the government.[ CITATION MOH18 \l 1033 ]

CREATING A CENTRAL SYARIAH ADVISORY COUNCIL

At the national level, the Council Shariah Advisers have been established as an
authoritative sharia body to monitor aspects of the aspects sharia in the Islamic
banking industry in Malaysia. Shariah Advisory Council established by the Malaysian
government and placed under the structure administration of Bank Negara Malaysia.
Usually, as is practiced by most countries, it serves as a fatwa authority highest in the
field of banking Islam and targeting efforts harmonization and standardization sharia
practice. The act of setting up a shariah advisor is a very appropriate step as these
advisors are able to investigate transactions that do not comply with sharia law and
can ultimately give some emphasis to conventional banking to provide transactions
that comply with shariah law.[ CITATION MOH18 \l 1033 ]

SPREAD AWARENESS TO THE COMMUNITY ABOUT THE MUAMALAT

SYSTEM

The community needs to gain awareness of the advantages of the muamalat system by
making talks led by Islamic financial advisors, conducting religious talks led by
ulama’ to open the eyes of the community on the advantages of muamalat.This is very
necessary to do to prevent the community from continuing to conduct wrong trading
activities and result in them consuming illegal revenue without them realizing it. This
activity is also strongly encouraged by Islam which is to spread the truth to the local
community. Rasulluah S.A.W once said that

"Whoever does one sunnah good in Islam, So for him is the reward of the sunnah
and the reward of those who follow it without being deprived of the slightest of their
rewards (people who follow it).[ CITATION UST17 \l 1033 ]

5.0 CONCLUSION

The main feature of the Islamic financial system lies in high ethical values which
supports governance and Islamic banking business operations. This industry is
growing rapidly in the atmosphere of that environment increasingly complex and
challenging. Inside Islamic banking system, robustness values and governance
structure corporate, transparency, disclosure firm information and compliance against
the principles of shariah very emphasized. Therefore, an administration strong and
sustainable shariah management needed to realize the system robust Islamic banking
and competitive .In targeting a the ever-present Islamic banking system forward and
be an example to those countries offering banking business Islam, the important thing
in achieving this vision is by realizing a syariah governance framework
comprehensive for banking institutions and formulate implementation strategies A
suitable and capable Islam meet the needs of that industry dynamic in addition to
improving confidence and stability in the system Islamic finance.
 6.0 References

ARIF, M. I. (2018). The Sustainability of the Muamalat principles in the Islamic Banking. Retrieved from
file:///C:/Users/user/Downloads/30908-95157-1-PB.pdf

FAUZI, U. M. (2017). MENYOKONG DAN MENDOKONG PERBANKAN ISLAM. Retrieved from

http://www.addeen.my/index.php/muamalat/perbankan-islam/item/289-menyokong-dan-
mendukung-perbankan-islam

JAKIM. (2009). HIMPUNAN KEPUTUSAN MUZAKARAH JAWATANKUASA FATWA KEBANGSAAN

BERHUBUNG DENGAN ISU-ISU MUAMALAT. JAKIM (p. 101). Kuala Lumpur: JAKIM.

MUAMALAT, B. (n.d.). RIBA DAN PENGHARAMANNYA. RIBA DAN PENGHARAMANNYA, 34.