ISSN: 2222-6990
Open access
Ar-Rahnu, also known as Islamic pawn broking, is one of the Shariah-compliant financings implementing the Shariah concepts of Tawarruq, Rahn, Wadi’ah, was founded in Malaysia three decades ago as an alternative to conventional pawn broking. In responding to this matter, Co-opbank Pertama (M) Berhad, one of Malaysia’s cooperative banks, has established and offered Ar-Rahnu financing since 2018 as one of their products throughout the 29 branches in Malaysia. Thus, this research aims to analyse the implementation of Ar-Rahnu financing operations, specifically in the cooperative banking sector. Qualitative analysis through in-depth interviews has been done with two informants who have experience in the Ar-Rahnu field and are involved in Ar-Rahnu's daily operations in the cooperative banking sector. The results reveal that the implementation process of Ar-Rahnu's execution in Co-opbank Pertama (M) Berhad is based on the governance laws in Malaysia, and it is one of the cooperative institutions that provides the Ar Rahnu scheme, as one of its products has adapted the Shariah concepts of tawarruq (murabahah) and rahn in its implementation.
Al-Zuhaili, W. (2005). Fiqh & Perundangan Islam Jilid V. Dewan Bahasa dan Pustaka.
Ar Rahnu YaPEIM. (2020). Produk. https://www.arrahnuyapeim.net/produk
Barrett, D., & Twycross, A. (2018). Data collection in qualitative research. Evidence-Based Nursing, 21(3), 63-64
Bank Negara Malaysia. (2020). The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 194th and 195th meeting. https://www.bnm.gov.my/-/sac-194th-195th-meeting
Bank Negara Malaysia. (2020). Ruling of the Shariah Advisory Council (SAC) of the Bank Negara Malaysia at its 198th and 199th meeting. https://www.bnm.gov.my/-/ruling-of-the-shariah-advisory-council-sac-of-the-bank-negara-malaysia-at-its-198th-and-199th-meeting-1
Bahari, N. F., Shafii, Z., & Ahmad, N. W. (2021). Overview of Regulatory and Legal Framework of Pawnbroking System in Malaysia. Journal of Muwafaqat, 4(1), 1–13.
Co-opbank Pertama. (2021). Ar-Rahnu. https://www.cbp.com.my/ms/produk/ar-rahnu
Co-opbank Pertama. (2021). Co-opbank Pertama establishment history. https://www.cbp.com.my/en/corporate/co-opbank-pertama-establishment-history
Hadi, F. S. A., and Ahmad, M. A. (2021), Implementation of Ar-Rahnu Innovation in the Cooperative Sector in Malaysia. Journal of Islamic, Social, Economics and Development (JISED), 6(42), p. 64
Daud, W., Bahari, W. N., & Yusoff, Z. (2020). Analisis Perbandingan Terhadap Pelaksanaan Ar-Rahnu Di Bank Rakyat Dan Yapiem. Journal of Islamic, Social, Economics and Development (JISED), 5(30), 115–124.
Hadi, F. S. A., & Ahmad, M. A. (2021). Implementation of Ar-Rahnu Innovation in the Cooperative Sector in Malaysia. Journal of Islamic, Social, Economics and Development, 6(42), 56–67.
Sha’ari, H. Zin, N. F. M., & Abdullah, A. (2021). Roles and Challenges of Ar-Rahnu Institutions in Assisting Women Micro Entrepreneurs. Rabbanica, 2(2), 29–48.
Hasan, A., & Zain, M. N. R. (2021). Ar-Rahnu: Isu Dan Penyelesaian Semasa: Ar-Rahnu: Current Issues and Solutions. Malaysian Journal of Syariah and Law, 9(1), 47–60. https://mjsl.usim.edu.my/index.php/jurnalmjsl/article/view/239
McIntosh, M. J., & Morse, J. M. (2015). Situating and constructing diversity in semi-structured interviews. Global qualitative nursing research. 1-12.
Osman, N. H. S., Azmi, S. N., Hussin, N., Basiruddin, R., & Hashim, A. (2020). Persepsi Masyarakat Terhadap Pajak Gadai Islam (Ar Rahnu). The Journal of Muamalat and Islamic Finance Research, 17(1), 70–78. https://doi.org/10.33102/jmifr.v17i1.261
Othman, A., & Abdullah, A. (2019). Al-Rahnu Development In Malaysia: A Case Of Al-Rahnu Institution Under The Terengganu Islamic Religious And Malay Customs Council. International Journal of Islamic Business, 4(1), 54–64.
Rahman, N. N. A., & Kassim, S. (2017). Factors influencing acceptance of Ar-Rahnu: comparison between private and state Ar-Rahnu providers in Terengganu. Middle East J. Management, 4(1), 39–64.
Shah, A. A., & Yaacob, S. E. (2017). Infrastructure development of governance and regulatory for Ar-Rahnu. Journal of Advanced Research in Business and Management Studies 6, 6(2), 120-133 Penerbit.
Sharif, D., Shaharuddin, A., Muhamed, N. A., Pauzi, N. S., & Zin, M. Z. (2013). The improvement of Ar-Rahn (Islamic Pawn Broking) enhanced product in Islamic banking system. Asian Social Science, 9(2), 36–47. https://doi.org/10.5539/ass.v9n2p36\
Rashid, A. H. H. (2021). Irsyad Al-Fatwa Siri ke-565: Adakah Pajak Gadai Ar Rahnu Riba?. Mufti of Federal Territory Malaysia. https://muftiwp.gov.my/en/artikel/irsyad-fatwa/irsyad-fatwa-umum-cat/4770-irsyad-al-fatwa-siri-ke-565-adakah-pajak-gadai-ar-rahnu-riba
Suruhanjaya Koperasi Malaysia. (2020). Laporan ekonomi sektor koperasi 2020. https://www.skm.gov.my/images/flippingbook/laporan-ekonomi/2020/SKM - Buku Laporan Ekonomi 2020.pdf
Yahaya, S. (2021). The Benefits of Ar-Rahnu to The Development of Small Entrepreneurship. International Journal of Contemporary Education, Religious Studies and Humanities, 1(1), 1–11. https://myedujournal.com/index.php/ijcerhs/article/view/12
In-Text Citation: (Baharudin et al., 2023)
To Cite this Article: Baharudin, Z. N., Zailani, N. N. M., Latif, N. A. A., Yahaya, M. H., & Ismail, M. A. M. (2023). Analysis of Ar-Rahnu Financing Implementation in Cooperative Banking. International Journal of Academic Research in Business and Social Sciences, 13(7), 47 – 57.
Copyright: © 2023 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode