Islamic microfinance for rural farmers: a proposed contractual framework for Amanah Ikhtiar Malaysia

Rural poverty is considered as a major challenge for the current economies. In Malaysia, the rural farmers faces problems in the cultivation process due to unavailability of financial support. The support of Department of Agriculture is only limited to first stage of agriculture project, leaving...

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Main Authors:	Abidullah Abid, Muhammad Hakimi Mohd Shafiai
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2017
Online Access:	http://journalarticle.ukm.my/11313/ http://journalarticle.ukm.my/11313/ http://journalarticle.ukm.my/11313/1/18518-52511-1-SM.pdf

id	ukm-11313
recordtype	eprints
spelling	ukm-113132018-02-04T13:55:58Z http://journalarticle.ukm.my/11313/ Islamic microfinance for rural farmers: a proposed contractual framework for Amanah Ikhtiar Malaysia Abidullah Abid, Muhammad Hakimi Mohd Shafiai, Rural poverty is considered as a major challenge for the current economies. In Malaysia, the rural farmers faces problems in the cultivation process due to unavailability of financial support. The support of Department of Agriculture is only limited to first stage of agriculture project, leaving the farmers in problems for the second stage. Hence in this study we have provided a solution to the issues confronted by the famers through the involvement of Amanah Ikhtiar Malaysia. The aim is to involve Amanah Ikhtiar Malaysia to provide support to the rural famers based on the profit and loss sharing scheme unlike the current mode of financing. Before proposing a contractual framework, a qualitative and narrative form of literature review method is used to explore the issues. It is suggested that al-Muzāra‘ah contract is more suitable to provide assistance to the rural famers with the supervision from Department of Agriculture. This study would help not only Amanah Ikhtiar Malaysia but also other microfinance institutions in developing a partnership based contract that would be specifically designed for the poor rural farmers. Penerbit Universiti Kebangsaan Malaysia 2017 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/11313/1/18518-52511-1-SM.pdf Abidullah Abid, and Muhammad Hakimi Mohd Shafiai, (2017) Islamic microfinance for rural farmers: a proposed contractual framework for Amanah Ikhtiar Malaysia. Jurnal Hadhari, 9 (1). pp. 33-47. ISSN 1985-6830 http://ejournals.ukm.my/jhadhari/issue/view/962
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	Rural poverty is considered as a major challenge for the current economies. In Malaysia, the rural farmers faces problems in the cultivation process due to unavailability of financial support. The support of Department of Agriculture is only limited to first stage of agriculture project, leaving the farmers in problems for the second stage. Hence in this study we have provided a solution to the issues confronted by the famers through the involvement of Amanah Ikhtiar Malaysia. The aim is to involve Amanah Ikhtiar Malaysia to provide support to the rural famers based on the profit and loss sharing scheme unlike the current mode of financing. Before proposing a contractual framework, a qualitative and narrative form of literature review method is used to explore the issues. It is suggested that al-Muzāra‘ah contract is more suitable to provide assistance to the rural famers with the supervision from Department of Agriculture. This study would help not only Amanah Ikhtiar Malaysia but also other microfinance institutions in developing a partnership based contract that would be specifically designed for the poor rural farmers.
format	Article
author	Abidullah Abid, Muhammad Hakimi Mohd Shafiai,
spellingShingle	Abidullah Abid, Muhammad Hakimi Mohd Shafiai, Islamic microfinance for rural farmers: a proposed contractual framework for Amanah Ikhtiar Malaysia
author_facet	Abidullah Abid, Muhammad Hakimi Mohd Shafiai,
author_sort	Abidullah Abid,
title	Islamic microfinance for rural farmers: a proposed contractual framework for Amanah Ikhtiar Malaysia
title_short	Islamic microfinance for rural farmers: a proposed contractual framework for Amanah Ikhtiar Malaysia
title_full	Islamic microfinance for rural farmers: a proposed contractual framework for Amanah Ikhtiar Malaysia
title_fullStr	Islamic microfinance for rural farmers: a proposed contractual framework for Amanah Ikhtiar Malaysia
title_full_unstemmed	Islamic microfinance for rural farmers: a proposed contractual framework for Amanah Ikhtiar Malaysia
title_sort	islamic microfinance for rural farmers: a proposed contractual framework for amanah ikhtiar malaysia
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2017
url	http://journalarticle.ukm.my/11313/ http://journalarticle.ukm.my/11313/ http://journalarticle.ukm.my/11313/1/18518-52511-1-SM.pdf
first_indexed	2023-09-18T19:59:58Z
last_indexed	2023-09-18T19:59:58Z
_version_	1777406782995431424

Islamic microfinance for rural farmers: a proposed contractual framework for Amanah Ikhtiar Malaysia

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