Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Analysis of the Development of Islamic Home Financing History in Malaysia

Fathullah Asni , Jasni Sulong

http://dx.doi.org/10.6007/IJARBSS/v9-i6/6039

Open access

Home is a need since ancient times hitherto. Nowadays, to acquire a home requires high capital until one needs to get funding from other party either from individual or institutional. As a result, financial institutions were established and involved in assisting buyers. In the context of Malaysia, the facility led to an establishment of a housing financing contract between bank and buyers since before the Independence Day. For Muslims, the contract was formulated to be Shariah compliance within conventional framework. Hence, this study aims to examine the development of Islamic housing financing contracts since before the independence hitherto. This study using a qualitative method in which the researchers have applied a library research method to obtain secondary data through books, journals and official websites. The study found that housing financing contracts have undergone a phase of change from a simple to a complex contract form by combining multiple contracts. The study also found that the financing contracts have undergone a transformation phase of Islamic-based products that are based on sale and purchase to Islamic based partnership products which were more in line with Shariah requirements. Housing financing products are also change to a better direction as Islamic banks as well as Shariah advisors always responded to any critics to improve their products.

Ab Rahman, A., Mohammad, S., & Salleh, I. M. (2010). Bay' al-Tawarruq Dan Aplikasinya Dalam Pembiayaan Peribadi Di Bank Islam Malaysia Berhad. Jurnal Syariah, 18(2).
Affin Bank. (2019). Musharakah Mutanaqisah. See: http://affinbank.com.my/news/06052011bi.htm (accessed on 5/4/2019).
Al-Sabuni, A. R. (1980). al-Madkhal li Dirasah al-Tasyri’ al-Islami. Dimasyq: Matba’ah al-Riyad.
Al-Zarqa’, A. (1968). Sharh al-Qanun al-Suri, al-‘Uqud al-Musawamah. Dimasyq: Dar al-Kitab.
Ayub, M. (2007). Understanding Islamic Finance (Vol. 462): John Wiley & Sons.
Aziz, A. (2013). Perlaksanaan prinsip al-Bay'Bithaman Ajil dalam pembiayaan perumahan: analisis di Bank Kerjasama Rakyat Malaysia dan Bank Muamalat Malaysia Berhad (Master dissertation, University of Malaya).
Aziz, U. A. (1959). Pilgrims Economy Improvement Plan. Kuala Lumpur,
Azli, R. M., Othman, R., Sahri, M., Aris, N. A., Arshad, R., & Yaakob, A. R. (2011). Implementation of Maqasid Shari’ah In Islamic house financing: A study of the rights and responsibilities of contracting parties in Bai’Bithaman Ajil and musharakah mutanaqisah. Journal of Applied Business Research, 27(5), 85-96.
Bank Negara Malaysia. (2009). Concept Paper on Shariah Parameters References 2: Ijarah Contract.
Bank Negara Malaysia. (2010). Syariah Resolution in Islamic Finance (Second Edition). See: (http://www.bnm.gov.my/microsite/fs/sac/shariah_resolutions_2nd_edition.pdf) (accessed on 5/4/2019).
Bank Negara Malaysia. (2019). Islamic Housing Financing Products. See: http://www.bnm.gov.my/ (accessed on 5/4/2019).
Bank Rakyat. (1994). Melalui Liku Sejarah Bank Rakyat. Ma/a/a/i Rakyat. Bil. 13.
Besar, J. A., Fauzi, R., & Ghazali, A. S. (2012). Penilaian awal impak perlaksanaan Dasar Perumahan Negara terhadap sektor perumahan di Kuala Lumpur. Geografia: Malaysian Journal of Society and Space, 8(6), 90-108.
Borhan, J. T. (1999). Bank Islam Malaysia Berhad: Some Issues, Problems and Its Prospects in the Future. Jurnal Syariah 7(2): 114 – 117.
Borhan, J. T. (2001). Sistem Perbankan Islam di Malaysia: Sejarah Perkembangan, Prinsip dan Amalannya. Jurnal Usuluddin, 14, 137-164.
Buang, S. (1988). “Ke Arah Pengislaman Kanun Tanah Negara” in Faculty of Law University Malaya. Makalah Undang-undang Menghormati Ahmad Ibrahim. Kuala Lumpur: Dewan Bahasa dan Pustaka.
Buang, S. (1993). Undang-undang tanah di Malaysia. Kuala Lumpur: Dewan Bahasa dan Pustaka
Citibank. (2019). Musharakah Mutanaqisah. See:
http://www.citi.com/citigroup/press/2007/070306c.htm (accessed on 5/4/2019).
Cortesa, A. (1944). The Suma Oriental of Tom Pires. London: E.G.De Eredia
Fang, L. Y. (1976). Undang-Undang Melaka. The Hague: Martinus Nijhoff
Ghani, A. M. (1999). Sistem kewangan Islam dan pelaksanaannya di Malaysia. Kuala Lumpur : Jabatan kemajuan Islam Malaysia.
Guan, C. K. (2002). Sistem Kewangan Malaysia : Struktur, Perkembangan dan Perubahan. Kuala Lumpur: Pearson Malaysia SDN. BHD.
Gullick, J. M. (1987). Malay society in the late nineteenth century: The beginnings of change. Oxford University Press, USA
Gullick, J. M. (1987). Malay society in the late nineteenth century: The beginnings of change. USA: Oxford University Press.
Hakimah, M. Z., Salamon, H., Abdullah, N. I. (2016). Pembiayaan Aset Berasaskan Ijarah Di Malaysia Dan Isu-Isu Berkaitan. Journal of Global Business and Social Entrepreneurship (GBSE), 2(1): 121–129
Hanafi, H. (2012). Critical Perspectives on Musharakah Mutanaqisah Home Financing in Malaysia: Exploring Legal, Regulative and Financial Challenges (Doctoral dissertation, Durham University).
Hassan, A. A. H. (2005). Teori dan aplikasi kontemporari sistem ekonomi Islam di Malaysia. Kuala Lumpur: Utusan Publications.
Hawwa, A. S. (2007). Suwar al-Tahayul ‘ala al-Riba. Beirut: Dar Ibn Hazm
Hooker, M. B. (Ed.). (1974). Readings in Malay adat laws. NUS Press.
Ismail, A. H. (1983). Bank Islam Malaysia Berhad: Establishment and Operation. Prosiding. International Conference on Islam and Technology, UTM,

In-Text Citation: (Asni & Sulong, 2019)
To Cite this Article: Asni, F., & Sulong, J. (2019). Analysis of the Development of Islamic Home Financing History in Malaysia. International Journal of Academic Research in Business and Social Sciences, 9(6), 817–828.