Shariah issues in managing household debt: the case of Malaysia

The Edge Malaysia, in its 2011 publication, projects there will be 68,000 high net worth individuals (HNWI) in a population of 19.2 million by 2015. This means there will be one HNWI for every 282 persons in Malaysia. Hence, the Islamic wealth management industry is placing greater emphasis on wealt...

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Main Authors:	Maznita Mokhtar, Azman Ismail
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2013
Online Access:	http://journalarticle.ukm.my/6959/ http://journalarticle.ukm.my/6959/ http://journalarticle.ukm.my/6959/1/3628-8089-1-PB.pdf

id	ukm-6959
recordtype	eprints
spelling	ukm-69592016-12-14T06:42:42Z http://journalarticle.ukm.my/6959/ Shariah issues in managing household debt: the case of Malaysia Maznita Mokhtar, Azman Ismail, The Edge Malaysia, in its 2011 publication, projects there will be 68,000 high net worth individuals (HNWI) in a population of 19.2 million by 2015. This means there will be one HNWI for every 282 persons in Malaysia. Hence, the Islamic wealth management industry is placing greater emphasis on wealth accumulation and preservation products vis-à-vis investment funds and assets. In their chase for HNWI clientele, financial institutions seem to neglecta fundamental stage of the Islamic wealth management process, namely wealth creation. In Islam, rizq is translated as subsistence or the means to live. In their search for income to meet their livelihood, Muslims need to ensure that their household’s wealth effect adhere to Shariah by linking the level of personal wealth to the spending or saving decisions. In recent years, household indebtedness in Malaysia has grown from 33% of banking sector loans in 1998 to 55% in 2011, representing 76.6% of the GDP. The cause for concern stems from the revelation that this growing pattern of debt is driven by personal consumption that is mismatched against income growth. The present paper provides an overview of the household debt situation in the Malaysia. In particular, the present study examines the concerns over the growing trend of Malaysian indebtedness from the perspective of consumers and evaluates consumer issues in seeking Islamic financing (personal and consumptive)products to meet livelihood needs. The paper offers suggestions for improvements in relevant products and development within the Malaysian wealth management landscape in light of maqasid al-Shariah. Penerbit Universiti Kebangsaan Malaysia 2013 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/6959/1/3628-8089-1-PB.pdf Maznita Mokhtar, and Azman Ismail, (2013) Shariah issues in managing household debt: the case of Malaysia. Jurnal Pengurusan, 37 . pp. 63-76. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/index
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	The Edge Malaysia, in its 2011 publication, projects there will be 68,000 high net worth individuals (HNWI) in a population of 19.2 million by 2015. This means there will be one HNWI for every 282 persons in Malaysia. Hence, the Islamic wealth management industry is placing greater emphasis on wealth accumulation and preservation products vis-à-vis investment funds and assets. In their chase for HNWI clientele, financial institutions seem to neglecta fundamental stage of the Islamic wealth management process, namely wealth creation. In Islam, rizq is translated as subsistence or the means to live. In their search for income to meet their livelihood, Muslims need to ensure that their household’s wealth effect adhere to Shariah by linking the level of personal wealth to the spending or saving decisions. In recent years, household indebtedness in Malaysia has grown from 33% of banking sector loans in 1998 to 55% in 2011, representing 76.6% of the GDP. The cause for concern stems from the revelation that this growing pattern of debt is driven by personal consumption that is mismatched against income growth. The present paper provides an overview of the household debt situation in the Malaysia. In particular, the present study examines the concerns over the growing trend of Malaysian indebtedness from the perspective of consumers and evaluates consumer issues in seeking Islamic financing (personal and consumptive)products to meet livelihood needs. The paper offers suggestions for improvements in relevant products and development within the Malaysian wealth management landscape in light of maqasid al-Shariah.
format	Article
author	Maznita Mokhtar, Azman Ismail,
spellingShingle	Maznita Mokhtar, Azman Ismail, Shariah issues in managing household debt: the case of Malaysia
author_facet	Maznita Mokhtar, Azman Ismail,
author_sort	Maznita Mokhtar,
title	Shariah issues in managing household debt: the case of Malaysia
title_short	Shariah issues in managing household debt: the case of Malaysia
title_full	Shariah issues in managing household debt: the case of Malaysia
title_fullStr	Shariah issues in managing household debt: the case of Malaysia
title_full_unstemmed	Shariah issues in managing household debt: the case of Malaysia
title_sort	shariah issues in managing household debt: the case of malaysia
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2013
url	http://journalarticle.ukm.my/6959/ http://journalarticle.ukm.my/6959/ http://journalarticle.ukm.my/6959/1/3628-8089-1-PB.pdf
first_indexed	2023-09-18T19:48:23Z
last_indexed	2023-09-18T19:48:23Z
_version_	1777406053834555392

Shariah issues in managing household debt: the case of Malaysia

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