Qualitative validation of a financially affordable Islamic home financing model
Purpose – This study aims to validate a potential synergistic venture between cash waqf (Islamic endowment) institutions (CWIs) and financial cooperatives (FCs) in the provision of affordable Islamic home financing (IHF) in Malaysia. Design/methodology/approach – The study adopted semi-structured...
| Main Authors: | , |
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| Format: | Article |
| Language: | English English |
| Published: |
Emerald Group Publishing Ltd.
2018
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/69715/ http://irep.iium.edu.my/69715/ http://irep.iium.edu.my/69715/ http://irep.iium.edu.my/69715/1/69715_Qualitative%20validation%20of%20a%20financially%20affordable_article.pdf http://irep.iium.edu.my/69715/2/69715_Qualitative%20validation%20of%20a%20financially%20affordable_scopus.pdf |
| Summary: | Purpose – This study aims to validate a potential synergistic venture between cash waqf (Islamic
endowment) institutions (CWIs) and financial cooperatives (FCs) in the provision of affordable Islamic home
financing (IHF) in Malaysia.
Design/methodology/approach – The study adopted semi-structured interviews with ten experts to
validate the cash waqf-financial-cooperative-mush�arakah mutan�aqi�
sah (CWFCMM) model. Thematic analysis
technique was used to analyse the verbatim texts.
Findings – The findings show that the majority of the informants have positive perceptions of the potential
of the CWFCMM model to provide financially affordable IHF products in Malaysia. Nevertheless, this study
sheds light on the varying degrees of latent issues and challenges that might arise in the implementation of this
model. For example, FCs need to practice the correct business model, implement good governance structures
and employ the right people. Meanwhile, CWIs need to work on their accountability issues by publishing their
audited accounts in mainstream newspapers, much like what is being done by non-governmental
organisations such as the widely recognised Malaysian Medical Relief Society (MERCY Malaysia).
Research limitations/implications – This study interviewed a small, industry-specific number of
informants in generating its findings. Time and budget constraints are some of the limiting factors in
carrying out the study. Because of these factors, the generalisation of the study’s findings will be limited.
Practical implications – First, the CWFCMM model offers an alternative, financially affordable IHF
instrument to low- and middle-income households in Malaysia. Second, the involvement of third-sector institutions
such as FCs and CWIs in the provision of IHF will reduce the burden of the government in its spending on home
financing solutions for civil servants. Third, this model will harness the potential of waqf-based financing beyond
the contemporary limited applications to mosques, graveyards and ta �
hfī
�
z (Qurʾan memorization) schools.
Originality/value – This study presents an alternative IHF model that transcends the current institutional
framework that is heavily dominated by Islamic commercial banks and government-owned home financing
institutions. The study does not focus on a single third-sector institution but on an integration of at least two
of them, CWIs and FCs, in implementing the IHF model. |
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