Affordable Islamic home financing in Malaysia: a potential synergistic venture between financial cooperatives and cash-waqf institutions

The current Islamic home financing institutional framework in Malaysia that is almost exclusively dominated by Islamic commercial banks and government-owned home institutions (86% and 10.5% shares of home financing outstanding respectively) are deemed as sustainable in the long run. Economists have...

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Main Authors:	Md Zabri, Mohd Zaidi, Abdul Razak, Dzuljastri, Mohamed, Mustafa Omar
Format:	Conference or Workshop Item
Language:	English English
Published:	2016
Subjects:	HG Finance
Online Access:	http://irep.iium.edu.my/52401/ http://irep.iium.edu.my/52401/ http://irep.iium.edu.my/52401/2/%5BICIEF%20KL%202016%5D%20Affordable%20Islamic%20Home%20Financing%20In%20Malaysia--A%20Potential%20Synergistic%20Venture%20between%20Financial%20Cooperatives%20and%20Cash-Waqf%20Institutions.pdf http://irep.iium.edu.my/52401/12/52401_Affordable%20Islamic%20Home%20Financing%20In%20Malaysia.pdf

id	iium-52401
recordtype	eprints
spelling	iium-524012018-05-22T00:40:52Z http://irep.iium.edu.my/52401/ Affordable Islamic home financing in Malaysia: a potential synergistic venture between financial cooperatives and cash-waqf institutions Md Zabri, Mohd Zaidi Abdul Razak, Dzuljastri Mohamed, Mustafa Omar HG Finance The current Islamic home financing institutional framework in Malaysia that is almost exclusively dominated by Islamic commercial banks and government-owned home institutions (86% and 10.5% shares of home financing outstanding respectively) are deemed as sustainable in the long run. Economists have long ago identified the contentious relationship between an Islamic commercial bank’s shareholders and its depositors an ‘agency problem’.The Malaysian government on the other hand, is under enormous pressure to gradually reduce its budget deficits. Islamic economics scholars are calling for the third sector economy players such as cooperatives and/or awqaf to address this gap. This conceptual paper aims to present a potential joint-venture by cash waqf institutions and financial cooperative to offer an affordable, musharakah mutanaqisah partnership (MMP) home financing solution to low- and middle-income families in Malaysia. Five critical stakeholders (waqif, cash waqf institutions, financial cooperative, and joint-management committee) form the critical components in this model to offer an alternative, affordable Islamic home financing framework to the current Islamic home financing providers. This model is particularly useful for relevant stakeholders especially within the cooperative society milieu in their effort to help their member-customers to acquire their homes through affordable Islamic home financing. 2016-10 Conference or Workshop Item NonPeerReviewed application/pdf en http://irep.iium.edu.my/52401/2/%5BICIEF%20KL%202016%5D%20Affordable%20Islamic%20Home%20Financing%20In%20Malaysia--A%20Potential%20Synergistic%20Venture%20between%20Financial%20Cooperatives%20and%20Cash-Waqf%20Institutions.pdf application/pdf en http://irep.iium.edu.my/52401/12/52401_Affordable%20Islamic%20Home%20Financing%20In%20Malaysia.pdf Md Zabri, Mohd Zaidi and Abdul Razak, Dzuljastri and Mohamed, Mustafa Omar (2016) Affordable Islamic home financing in Malaysia: a potential synergistic venture between financial cooperatives and cash-waqf institutions. In: 11th International Conferance on Islamic Economics and Finance (ICIEF 2016), 11th-13th Oct. 2016, Kuala Lumpur. (Unpublished) http://submit.confbay.com/conf/icief2016
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG Finance
spellingShingle	HG Finance Md Zabri, Mohd Zaidi Abdul Razak, Dzuljastri Mohamed, Mustafa Omar Affordable Islamic home financing in Malaysia: a potential synergistic venture between financial cooperatives and cash-waqf institutions
description	The current Islamic home financing institutional framework in Malaysia that is almost exclusively dominated by Islamic commercial banks and government-owned home institutions (86% and 10.5% shares of home financing outstanding respectively) are deemed as sustainable in the long run. Economists have long ago identified the contentious relationship between an Islamic commercial bank’s shareholders and its depositors an ‘agency problem’.The Malaysian government on the other hand, is under enormous pressure to gradually reduce its budget deficits. Islamic economics scholars are calling for the third sector economy players such as cooperatives and/or awqaf to address this gap. This conceptual paper aims to present a potential joint-venture by cash waqf institutions and financial cooperative to offer an affordable, musharakah mutanaqisah partnership (MMP) home financing solution to low- and middle-income families in Malaysia. Five critical stakeholders (waqif, cash waqf institutions, financial cooperative, and joint-management committee) form the critical components in this model to offer an alternative, affordable Islamic home financing framework to the current Islamic home financing providers. This model is particularly useful for relevant stakeholders especially within the cooperative society milieu in their effort to help their member-customers to acquire their homes through affordable Islamic home financing.
format	Conference or Workshop Item
author	Md Zabri, Mohd Zaidi Abdul Razak, Dzuljastri Mohamed, Mustafa Omar
author_facet	Md Zabri, Mohd Zaidi Abdul Razak, Dzuljastri Mohamed, Mustafa Omar
author_sort	Md Zabri, Mohd Zaidi
title	Affordable Islamic home financing in Malaysia: a potential synergistic venture between financial cooperatives and cash-waqf institutions
title_short	Affordable Islamic home financing in Malaysia: a potential synergistic venture between financial cooperatives and cash-waqf institutions
title_full	Affordable Islamic home financing in Malaysia: a potential synergistic venture between financial cooperatives and cash-waqf institutions
title_fullStr	Affordable Islamic home financing in Malaysia: a potential synergistic venture between financial cooperatives and cash-waqf institutions
title_full_unstemmed	Affordable Islamic home financing in Malaysia: a potential synergistic venture between financial cooperatives and cash-waqf institutions
title_sort	affordable islamic home financing in malaysia: a potential synergistic venture between financial cooperatives and cash-waqf institutions
publishDate	2016
url	http://irep.iium.edu.my/52401/ http://irep.iium.edu.my/52401/ http://irep.iium.edu.my/52401/2/%5BICIEF%20KL%202016%5D%20Affordable%20Islamic%20Home%20Financing%20In%20Malaysia--A%20Potential%20Synergistic%20Venture%20between%20Financial%20Cooperatives%20and%20Cash-Waqf%20Institutions.pdf http://irep.iium.edu.my/52401/12/52401_Affordable%20Islamic%20Home%20Financing%20In%20Malaysia.pdf
first_indexed	2023-09-18T21:14:15Z
last_indexed	2023-09-18T21:14:15Z
_version_	1777411456242810880

Affordable Islamic home financing in Malaysia: a potential synergistic venture between financial cooperatives and cash-waqf institutions

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