Ali Sabardin

Mempertahankan Perkara Yang Tiada Bernilai

2011-12-11T17:14:00.000-08:00

Bismillah

Beberapa hari lepas, ketika penulis melayan diri yang demam dengan secawan Milo panas di kedai mamak, penulis telah dihidangkan dengan satu scenery yang pada dasarnya akan menaikkan kemarahan membuak-buak.

Mamak pekerja itu tanpa segan silu mengorat anak dara berketurunan Melayu yang berjalan di tepi jalan. Keluarlah segala dendam, ego, ketuanan Melayu, kepahlawanan panglima Melaka dalam jiwa penulis. Kalau dikarang jenis perasaan yang ade dalam 2 saat kemarahan itu, mungkin 3-4 helai kertas A4 sumpah seranah boleh ditulis (cukup).

Tapi....

Mujur penulis masih lagi mampu berfikir. Bukan semua anak dara di'orat oleh mamak ini. Yang di'orat ialah yang jenis pakai baju ketat berskirt pendek nampak betis, macam pekerja kedai foto-zoom. Banyak juga persoalan yang timbul, dari isu-isu pemikiran bawahan, hingga isu-isu yang hanya boleh difahami oleh golongan (kununnya) intelek.

Aku rindu zaman Nabi saw. dan Sahabat r.a...

Mungkin ade yang pernah kenal wajah ini:

Beliau adalah Imam Tajuddin Hilaly dari Masjid Lakemba, NSW Australia. Beliau mewujudkan kontreversi dengan perumpamaan 'daging yang terdedah di taman, memang akan diburu oleh kucing liar' (+/-). Ini kisah 2006....tapi pengajarannya akan relevan sampai bila-bila.

Wahai wanita, sekiranya anda menghormati diri sendiri, penulis yakin akan ade ribuan pemuda-pemuda yang gagah berani sanggup bersusah payah untuk melindungi anda. Tapi jika anda memilih untuk menghina diri sendiri, hanya pemuda-pemuda picisan yang akan datang untuk mengambil kesempatan.

Tanya mufti kita iaitu HATI. Hati tidak boleh menipu.

Audit

2011-12-08T19:08:00.001-08:00

Bismillah

Kasih Mak & Ayah

2011-11-02T19:26:00.000-07:00

Bismillah

Selepas Allah (swt), & Nabi Muhammad (saw),

kita mesti muliakan Mak & Ayah kita.

Ia satu tanggungjawab, dan peluang yang amat bermakna.

Islamic Economy System

2010-11-11T18:56:00.000-08:00

Bismillah

Islamic Worldview of Economics:

1) Man as Khalifah
- I choose not to use the use of word 'vicegerent', as it does not serve the real meaning of the word Khalifah.

2) Man as trustee
- Man are not the real owner of property.

Overview Of Islamic Knowledge

Examples of Islamic Institution

Tujuan Diwujudkan Islamic Finance

2010-11-09T08:39:00.001-08:00

Bismillah

Kadang2 bila kita dah berjalan jauh, kita tersasar dan keliru ttg matlamat asal. Jadi sangat elok untuk kita semak & kembali kepada basic perjalanan perjuangan kita ini...

Mengikut tafsiran penulis, yang amat kurang pembacaan dan sering terkurung dalam falsafah pemikiran yang aneh, tujuan kita mewujudkan Perbankan Islam ialah untuk;

1) Umat Islam dapat mengamalkan ajaran islam dengan sempurna, sesuai dengan keadaan zaman
- elak riba, mewujudkan sistem ekonomi islam (pekerjaan etc), memajukan institusi zakat, mewujudkan peluang perniagaan & pelaburan yang halal, memerangi kemiskinan umat Islam.....etc

2) Menjadi alat untuk mengajak bukan Islam untuk memeluk agama Islam
- mempromosi Islam sebagai satu2nya solusi yang terbaik sepanjang zaman, yang menawarkan cara hidup yang sempurna utk semua jenis lapangan bidang, lapisan masyarakat, bentuk geografi, taraf pendidikan & kewangan....etc.

Ini merujuk kepada beriman (+berilmu), beramal dan sampaikan semua mengenai Islam. Namun, adakah kita mencapai maksud yang KUDUS ini?

Sila kaji sejarah perkembangan institusi pebankan Islam. Ada baiknya kita baca juga tentang fiat money, gold dinar, global financial crisis...dan banyak lagi segment yang amat berkait rapat (yang ade akses (sedikit ilmu) & keinginan shj akan dpt faham)

Hasilnya ialah, penulis mendapati bahawa;

" THEY found a new HORSE to ride....it's name is ISLAMIC FINANCE.

WE feed, THEY enjoy the ride~ "

----------------------------

Penulis mempunyai kecenderungan ke arah otak kanan. Manakala kekuatan yang semakin malap pada otak kiri akibat kurang berfikir. Entah mengapa, kekuatan berfikir dan daya intelektual penulis merudum dengan hebat pada beberapa tahun lepas, hingga potensi diri hanya dpt diguna +/-20% drpada sewaktu zaman SPM.

Ujian character diri juga amat membimbangkan.

Mari mula berfikir.Sy perlu....MESTI rajin membaca & meneroka

Jemaah Tabligh adalah Kapal Terakhir

2010-10-25T10:18:00.001-07:00

Bismillah

Mengikut kajian2 pakar psychology, manusia boleh dibahagi2kan kepada 14 jenis kategori, masing2 mempunyai kaedah pembawaan yang unik. Setiap individu mempunyai kekuatan yang x dipunyai oleh yang lain, begi juga sebaliknya dalam hal kekurangan. Begitu juga dengan kecenderungan kalbu terhadap sesuatu perkara, amat bergantung kepada sifat2 dalaman yang sudah sedia terbentuk ini.

Satu fakta yang mesti diambil kira ialah, keunikan ini adalah ANUGERAH dari Maha Pencipta, Allah. Ia wajar diraikan.

Begitu juga dalam hal usaha dakwah. Kepelbagaian jemaah dengan bermacam2 metod & pendekatan membuka seluas2 peluang kpd kita untuk 'berbuat sesuatu' dengan agama Islam ini. Seperti yang disebut dalam surah al-Asr, ada 4 komponen yang mesti dibuat oleh SEMUA manusia, untuk mengelak dr kerugian;

1) Beriman (merangkumi ilmu)
2) Beramal
3) Berpesan2 dengan kebenaran (dakwah)
4) Berpesan2 dengan kesabaran (dalam 3 hal di atas)

Mahu tidak mahu, kita mesti merombak rutin kehidupan seharian kita, untuk melaksanakan keempat2 hal di atas. Inilah sebenarnya sumber justifikasi kehidupan dan ketenangan yang dicari2 seluruh umat manusia.

Cara nak selamatkan diri di zaman ini hanya dengan terlibat dalam dakwah. Hanya dengan cara ini sahaja kita dapat sentiasa memastikan diri di trek yang betul, kerana percakapan2 / peringatan2 yang baik sentiasa diperbaharui / bergema.

Ada banyak jenis usaha dakwah yang mempunyai paksi (keutamaan) yang berbeza2.----> yang penulis tau;

1) Pas - politik
2) Haluan / Jim / Karisma / IKRAM - NGO, tarbiyah, usrah, Ikhwanul Muslimin
3) Salafi - ilmu
4) Jemaah Tabligh - dakwah.

Berdasarkan pemerhatian penulis, kejayaan dakwah di sesuatu tempat bergantung kepada nilai2 yang sama, walaupun dibawa oleh jemaah2 yang berlainan. Nilai2 itu ialah:

1) Kaedah yang dipenuhi dengan kasih sayang - sebar salam, taam, senyuman, ukhuwwah..
2) Hadirnya atau tersebarnya orang berilmu / risalah ilmu dalam usaha tersebut, dan kualitinya meningkat dari sehari ke sehari.
3) Pendukung2 yang satu hati dan bekerja keras & ikhlas.

Maka, x kira di lapangan mana pun, apa2 jemaah bisa maju dengan syarat ade beberapa kriteria2, antaranya seperti yang penulis senaraikan di atas.

JT sebagai Kapal Terakhir.

Penulis mula mengenal Islam melalui JT.

Walaupun bukan 'pendekar' dalam JT, penulis sedaya upaya mahu kekal dan mengambil sebanyak2 manfaat dari JT. Kekuatannya AJAIB, kekurangannya juga AJAIB. Hanya yang berpengalaman sahaja yang boleh memahami sedikit sebanyak perihal JT.

Pun begitu, penulis ligat dalam meneroka idea2 baru, terutama sejak pulang ke tanah air pada 2008. Maka terbukalah berbagai2 rahsia2 baru berkenaan jemaah, yang sentiasa berbolak-balik antara pro & con bergantung kepada interpretasi terkini.

Kesimpulannya, penulis mengagumi semua jenis usaha yang wujud, dan penulis mempunyai azam yang kuat untuk mengambil manfaat dari semua jenis jemaah. walaubagaimanapun, penulis mahu TETAP DI JALAN JT selagi terdaya, kerana penulis menganggap ia adalah Kapal Terakhir...

Ia adalah pilihan terakhir yang boleh diusahakan oleh SEMUA golongan dari umat ini, dalam mengelak dari KERUGIAN seperti apa yang penulis tulis di awal2 tadi. Inilah yang termudah, dan ini juga bisa jadi yang paling sukar di antara semua jenis usaha dakwah, bergantung kepada tahap pengorbanan yang sedia untuk dilakukan.

Mengapa JT agak pelik? sila baca penulisan INI, insyaAllah anda dpt sedikit gambaran ringkas.

Sekiranya ada di kalangan muda-mudia (atau siapa2 sahaja) yang mempunyai kebolehan, kekuatan2, keinginan2, maka saya syorkan berusahalah / cubalah untuk bergerak di jalan SELAIN JT.

JT adalah kapal yang terakhir. Bila anda sudah tiada pilihan lain, maka manfaatkanlah tertib2 yang sudah terbina sekian lama pada JT. Ia adalah pilihan yang terakhir...

Jangan biarkan diri kita kaku, lesu tanpa sebarang usaha, kerana ia pasti dan pasti merugikan akal, jasmani dan rohani kita. Jangan biarkan diri kita DIPANDU oleh urusan duniawi (hal2 nak memperelok makan pakai) hingga MASA kita menjadi begitu murah dan hina. Perjuangan bukan satu pilihan, tapi keputusan dari Allah.

note:

1) Kapal Terakhir ----> bayangkan bot penyelamat terakhir yang bergerak di kawasan banjir teruk. Bot ini besar, luas, dihantar pada trip terakhir bertujuan mengisi siapa sahaja, selagi dia masih bernyawa.

2) Lebih 95% orang Islam tidak bergerak dalam mana2 jemaah, dan menjalani kehidupan mengikut arus perdana. Ini adalah kerugian utk diri kita dan umat ini.

Ideal Shariah Audit Structure?

2010-10-21T17:41:00.000-07:00

Bismillah

Please have a look.

The [ Doc A+B ] were distributed to two different department, and passed to HQ Shariah Board through local Shariah Committee. The [ Doc A ] & [ Doc B ] will undergo Shariah Audit procedure in each committee, and reported to local BOD. The local report then brought forward to HQ BOD to be compared with [ Doc A+B ] held by HQ Shariah Board.

This means, there are two level of evaluation process before decisions are made. This what we call Shariah Governance Control!

The BOD (HQ) and Shariah Board (HQ) - have same level of power and influence in decision making - decided based on the Shariah Audit, that 70% of total profit failed to comply with Shariah. This means, the 70% of trading activities fall under Haram or Syubhah, thus shall be treated separately from Halal income and given out to public as charity.

This remind me about the purpose of Islamic Finance ----> Islamic Economy System (insyaAllah I will write on this soon).

Anyway, the above story is based on a true case.

Ayat ISTIQAMAH

2010-10-10T18:22:00.000-07:00

Bismillah ar-Rahman ar-Rahim

Surah Fussilat : 30 - 36

Terjemahan:

[30]
Sesungguhnya orang-orang yang menegaskan keyakinannya dengan berkata: “Tuhan kami ialah Allah”, kemudian mereka tetap teguh di atas jalan yang betul, akan turunlah malaikat kepada mereka dari semasa ke semasa (dengan memberi ilham): “Janganlah kamu bimbang (dari berlakunya kejadian yang tidak baik terhadap kamu) dan janganlah kamu berdukacita, dan terimalah berita gembira bahawa kamu akan beroleh syurga yang telah dijanjikan kepada kamu.

[31]
“Kamilah penolong-penolong kamu dalam kehidupan dunia dan pada hari akhirat; dan kamu akan beroleh – pada hari akhirat – apa yang diingini oleh nafsu kamu, serta kamu akan beroleh – pada hari itu – apa yang kamu cita-citakan mendapatnya.

[32]
“(Pemberian-pemberian yang serba mewah itu) sebagai sambutan penghormatan dari Allah Yang Maha Pengampun, lagi Maha Mengasihani!”

[33]
Dan tidak ada yang lebih baik perkataannya daripada orang yang menyeru kepada (mengesakan dan mematuhi perintah) Allah, serta ia sendiri mengerjakan amal yang soleh, sambil berkata: “Sesungguhnya aku adalah dari orang-orang Islam (yang berserah bulat-bulat kepada Allah)!”

[34]
Dan tidaklah sama (kesannya dan hukumnya) perbuatan yang baik dan perbuatan yang jahat. Tolaklah (kejahatan yang ditujukan kepadamu) dengan cara yang lebih baik; apabila engkau berlaku demikian maka orang yang menaruh rasa permusuhan terhadapmu, dengan serta merta akan menjadi seolah-olah seorang sahabat karib.

[35]
Dan sifat yang terpuji ini tidak dapat diterima dan diamalkan melainkan oleh orang-orang yang bersikap sabar, dan tidak juga dapat diterima dan diamalkan melainkan oleh orang yang mempunyai bahagian yang besar dari kebahagiaan dunia dan akhirat.

[36]
Dan jika engkau dihasut oleh sesuatu hasutan dari Syaitan, maka hendaklah engkau meminta perlindungan kepada Allah. Sesungguhnya Dia lah yang Maha Mendengar, lagi Maha Mengetahui.

note:

Ribut badai sekali pun, kita terus maju.

InsyaAllah.

Way Forward in Accounting & Auditing Profession

2010-08-26T00:51:00.001-07:00

Berikut adalah cita-cita:

1) Islamic Accounting Firm

2) Institute of Islamic Accountant

3) Institute of Shariah Auditor

Adalah menjadi satu keselesaan untuk kita duduk dalam arus perdana. Apa2 sahaja yang disuapkan oleh MEREKA, kita dakap dan terima tanpa menyoal, adakah ini jalan terbaik? Hanya orang2 berilmu, dan ber'will-power' yang sanggup menongkah arus...

Bila sistem conventional yang kita anuti ini terang-terang akan roboh sikit masa lagi, masih ramai lagi yang rasa was-was dengan solusi abadi - ISLAM.

Orang beriman akan bergerak maju bersama agama, walaupun seorang diri, dan hadapi susah payah. No free lunch, semua perkara ada harga yang perlu dibayar.

Jadi, mari la kita restructure cara fikir kita ke arah solusi abadi.

Buku menarik:

1) Satanic Finance
2) Celestial Management

nota: bahasanya tidak enak, tapi ideanya amat-amat wajar utk diambil tahu. Selamat membaca...

Shariah Governance of IFI 1 - BNM

2010-08-25T03:13:00.001-07:00

Mufti Taqi Usmani

INTRODUCTION

Non-compliance with Shariah principles by Islamic Financial Institution is directly related to

(1) Financial risk

(2) Legal risk

(3) Reputational risk.

Bank Negara Malaysia (BNM) has established two-tier Shariah governance infrastructure comprising

(1) Shariah Advisory Council (SAC) as centralized Shariah Advisory Board and

(2) Shariah Supervisory Board as internal Shariah Committee of each IFI

The SAC is a body established under section 51 of the Central Bank of Malaysia Act 2009 that has positioned the SAC as the apex authority for the ascertainment of Islamic law for the purposes of Islamic financial business, which comprise;

(1) any financial matter and issue a ruling upon reference made to it, and to

(2) advise the BNM and the IFI on any Shariah issues relating to Islamic financial business, activities or transactions.

IFIs are required by the Guidelines on the Governance of Shariah Committee for the Islamic Financial Institutions ( the Guidelines),issued in 2004 to form SSB to advise the IFIs on Shariah matters

The Shariah governance framework is expected to be revised regularly, alongside with the development & need of IF industry.

OBJECTIVE

(1) sets out the expectations of BNM

(2) provides a comprehensive guidance to the BOD & SSB

(3) outlines the functions relating to Shariah review, Shariah audit, internal Shariah research and Shariah risk management processes.

SCOPE OF APPLICATION

(1) an Islamic bank licensed under Islamic Banking Act 1983 (IBA);

(2) a takaful and retakaful operator registered under the Takaful Act 1984 (TA);

(3) a financial institution licensed under the Banking and Financial Institutions Act 1989 (BAFIA) that participates in the Islamic Banking Scheme; and

(4) a development financial institution prescribed under the Development Financial Institutions Act 2002 (DFIA) that participates in the Islamic Banking Scheme.

SECTION I: General Requirements of Shariah Governance Framework

Principle 1:

It is the duty and responsibility of IFI to establish a sound and robust Shariah

governance infrastructure with emphasis on the role of key functionalities in

ensuring effective implementation of the Shariah governance framework.

SECTION II: Oversight, Accountability & Responsibility

Principle 2:

IFI shall set out clearly the accountability and responsibility of every key

functionary involved in the implementation of Shariah governance.

SECTION III: Independence

Principle 3:

Independence of the Shariah committee shall be observed at all times in

exercising their duties to make objective and informed judgment.

SECTION IV: Competency

Principle 4:

Any persons bearing responsibilities outlined i n the Shariah governance

framework shall continuously enhance their knowledge and understanding on

principles of Shariah as well as keep abreast on the latest development in

Islamic finance.

SECTION V: Confidentiality & Consistency

Principle 5:

Internal and privileged information obtained by the Shariah committee in the

course of their duties shall be kept confidential at all times and shall not be

misused.

Principle 6:

Professional ethics, judgment and consistency shall be maintained in ensuring

Shariah compliance.

SECTION VI: Shariah Compliance & Research Functions

Principle 7:

There shall be a robust Shariah compliance function, comprising review and

audit functions, supported by risk management control process and internal

research capacity.

(1) Shariah Review

(2) Shariah Audit

(3) Shariah Risk Management Control

(4) Shariah Research & Secretariat

SOURCE: www.bnm.com.my

Kelebihan Al-Quran 1

2010-08-23T17:22:00.000-07:00

Aku duduk di sisi Nabi shallallahu 'alaihi wasallam, lalu aku mendengar baginda bersabda:

“Pelajarilah surah al-Baqarah kerana mengambilnya merupakan keberkatan, meninggalkannya merupakan kerugian dan orang yang suka membuat kebatilan tidak akan mampu mengilmuinya.”

Kemudian baginda diam sesaat, lalu bersabda:

“Pelajarilah surah al-Baqarah dan Ali Imran kerana kedua-duanya adalah al-Zahrawan yang menaungi orang yang memilikinya pada Hari Kiamat, seakan-akan dua gumpalan awan atau dua barisan burung.

Sesungguhnya al-Qur’an akan menemui pemiliknya pada Hari Kiamat ketika dia dibangkitkan daripada kuburnya seperti seseorang yang berkulit kuning, lalu dikatakan kepadanya:

“Adakah kamu mengenal aku?”

Dia menjawab: “Aku tidak mengenal engkau.”

Dikatakan (lagi) kepadanya: ““Adakah kamu mengenal aku?”

Dia menjawab: “Aku tidak mengenal engkau.”

Lalu dikatakan: “Aku adalah sahabat kamu: al-Qur’an, yang telah membuat kamu kehausan pada siang hari dan menyebabkan kamu tidak tidur pada malam hari. Sesungguhnya setiap pedagang berada di belakang barang dagangannya sedangkan kamu pada hari ini berada di belakang semua barang dagangan.”

Lalu dia diberi kerajaan dari arah kanannya, diberi keabdian dari sebelah kirinya, diletakkan di atas kepalanya mahkota kebesaran dan ibubapanya dikenakan pakaian yang membuatkan seluruh penduduk dunia berdiri menghormati mereka berdua. Maka mereka berdua bertanya:

“Dengan apakah menyebabkan kami menerima semua ini?”

Dijawab: “Dengan sebab anak kalian berdua yang mengambil al-Qur’an.”

Kemudian dikatakan (kepada anak tersebut):

“Bacalah (al-Qur'an) dan naiklah darjat-darjat syurga dan ruangan-ruangannya.”

Dia terus naik selama membaca al-Qur’an sama ada secara cepat atau perlahan.

[Sanad Hasan: Dikeluarkan oleh Ahmad dalam Musnadnya – hadis no: 22950 (bagi edisi 6 jld., rujuk jld. 5, ms. 348) dan sanadnya dinilai hasan oleh Syu‘aib al-Arna‘uth.]

Rujukan: UHF

Central Bank of Malaysia Act 2009

2010-08-22T00:23:00.000-07:00

Bank Negara Malaysia is pleased to announce that the Central Bank of Malaysia Act 2009 (The Act) has come into force today (25 November 2009). With this, the Central Bank of Malaysia Act 1958 is repealed and thus, ceases to apply. The Act will enable Bank Negara Malaysia to more effectively manage emerging risks and challenges in performing its role and responsibilities as the nation's central bank. The Act clarifies the roles of BNM and provides necessary powers and instruments to execute the responsibilities and achieve intended goals.

Consistent with the goal to promote Malaysia as an international centre for Islamic finance, the Act gives due recognition to the Islamic financial system in Malaysia. The Act also provides for an enhanced role of the Syariah Advisory Council (SAC) on Islamic Finance to facilitate consistent application of Islamic law on Islamic financial matters.

PART VI - Chapter 1 - Powers for promoting financial stability

27. The financial system in Malaysia shall consist of the conventional financial system and the Islamic financial system.

PART VII - Chapter 1 – Shariah Advisory Council (SAC)

51. Establishment of SAC

1. The Bank may establish a SAC on Islamic Finance which shall be the authority for the ascertainment of Islamic law for the purposes of Islamic financial business.

2. The SAC may determine its own procedures.

52. Functions of SAC

1. The SAC shall have the following functions:

a) to ascertain the Islamic law on any financial matter and issue a ruling upon reference made to it in accordance with this Part;

b) to advise the Bank on any Shariah issue relating to Islamic financial business, the activities or transactions of the Bank;

c) to provide advice to any Islamic financial institution or any other person as may be provided under any written law; and

d) such other functions as may be determined by the Bank.

2. For the purposes of this Part, “ruling” means any ruling made by the SAC for the ascertainment of Islamic law for the purposes of Islamic financial business.

53. Appointment of members to SAC

1. The Yang di-Pertuan Agong may, on the advice of the Minister after consultation with the Bank, appoint from amongst persons who are qualified in the Shariah or who have knowledge or experience in the Shariah and in banking, finance, law or such other related disciplines as members of the SAC.

2. If a judge of the High Court, the Court of Appeal or the Federal Court, or a judge of the Shariah Appeal Court of any State or Federal Territory, is to be appointed under subsection (1), such appointment shall not be made except—

a) in the case of a judge of the High Court, the Court of Appeal or the Federal Court, after consultation by the Bank with the Chief Justice; and

b) in the case of a judge of the Shariah Appeal Court of any State or Federal Territory, after consultation by the Bank with the Chief Shariah Judge of the respective State or Federal Territory, as the case may be.

3. A member of the SAC appointed under subsection (1) shall hold office on such terms and conditions as may be provided in their respective letters of appointment, and shall be eligible for reappointment.

4. The members of the SAC shall be paid such remuneration and allowances as may be determined by the Board from the funds of the Bank.

54. Secretariat to SAC

The Bank may—

a) establish a secretariat and such other committees as it considers necessary to assist the SAC in carrying out its functions; and

b) appoint any officer of the Bank or any other person to be a member of the secretariat or such other committees.

55. The Bank and Islamic financial institutions to consult SAC

1. The Bank shall consult the SAC on any matter—

a) relating to Islamic financial business; and

b) for the purpose of carrying out its functions or conducting its business or affairs under this Act or any other written law in accordance with the Shariah,

which requires the ascertainment of Islamic law by the SAC.

2. Any Islamic financial institution in respect of its Islamic financial business, may—

a) refer for a ruling; or

b) seek the advice,

of the SAC on the operations of its business in order to ascertain that it does not involve any element which is inconsistent with the Shariah.

56. Reference to SAC for ruling from court or arbitrator

1. Where in any proceedings relating to Islamic financial business before any court or arbitrator any question arises concerning a Shariah matter, the court or the arbitrator, as the case may be, shall—

a) take into consideration any published rulings of the SAC; or

b) refer such question to the SAC for its ruling.

2. Any request for advice or a ruling of the SAC under this Act or any other law shall be submitted to the secretariat.

57. Effect of Shariah rulings

Any ruling made by the SAC pursuant to a reference made under this Part shall be binding on the Islamic financial institutions under section 55 and the court or arbitrator making a reference under section 56.

58. SAC ruling prevails

Where the ruling given by a Shariah body or committee constituted in Malaysia by an Islamic financial institution is different from the ruling given by the SAC, the ruling of the SAC shall prevail.

PART VII - Chapter 2 – Powers of the bank

59. The Bank to issue circulars, guidelines, etc., on Shariah matters

1. The Bank may issue such written circulars, guidelines or notices on any Shariah matter relating to the Islamic financial business carried on by any Islamic financial institution in accordance with the advice or ruling of the SAC.

2. An Islamic financial institution shall comply with any written circulars, guidelines or notices issued by the Bank under subsection (1) and within such time as may be set out in the circulars, guidelines or notices. 53 Central Bank of Malaysia

3. Any person who fails to comply with any circulars, guidelines or notices issued by the Bank under subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding three million ringgit.

60. Promotion of Malaysia as an international Islamic financial centre

1. The Bank shall, in co-operation with the Government or any Government agency, statutory body, supervisory authority or international or supranational organization, develop and promote Malaysia as an international Islamic financial centre.

2. For the purposes of subsection (1), the Bank may—

a) establish a secretariat or other committees to assist the Government or any organization, council, agency or committee established by the Government; and

b) generally take such measures or facilitate such actions or provide financing,

as may be necessary for the development and promotion of Malaysia as an international Islamic financial centre.

-------------------------------------------------

SOURCE: www.bnm.com.my

BASICS OF ISLAMIC CONTRACTS 3

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CONDITIONAL CONTRACT (Uqud al Muallaqah)

Definition – A contract that the existence is upon conditional matter by adding “ if “ , “ when “ , “ whenever” in the contract statement

Soundness of condition;

1) Must not exist at the time of contract.

Eg; “I will buy this IF you are alive” – it is already completed contract, thus held invalid.

2) Condition must be mentioned in the statement immediately after the offer without a gap or pause

3) Should not depend on unknown wish, such as the wish of Allah.

BASICS OF ISLAMIC CONTRACTS 2

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PROHIBITED ELEMENTS IN ISLAMIC CONTRACT

1) Duress (Ikrah)

The use of force, or without consent of any party

2) Mistake (Ghalat)

Assumption about anything which comes across the mind of a person, but proven t be wrong or inaccurate.
Could be (a) essence – ring copper vs silver
(b) attribute – wool English vs China

3) Inequality

The inequality between price or subject matter of an exchange contract, which was not known at the time of contract, whether deception occur or not.

4) Deception

Statement deception such as a lie of a seller saying that; “there was other person just now offered higher price than you” – an act to induce potential buyer to increase price.

5) Contract of forbidden things

All items that clearly forbid by Sharia are not allowed to be put into contract eg; pork, wine, drug, nikah mut’ah.

BASICS OF ISLAMIC CONTRACT

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PILLARS OF CONTRACTS

Pillar 1 - Statement (Sighah)

Definition – the offer and acceptance

Condition;

1) Use past tense in verbal or written - "I said / I sold"

2) Conformation - the offer and acceptance (could be explicit or implicit eg; sigh) is agreed on an identified item and price.

3) Clarification – all conditions (tem, price, delivery etc) must be clear to avoid ambiguity.

4) Connection – the sighah must

Pillar 2 – Parties

Condition;

• Puberty
• Sanity
• Maturity

Pillar 3 – Subject matter

Condition;

1) Suitability

• considered as valuable by both (dead meat is not suitable)

• owned by one of the party (fish in the sea is not valid)

• allowed by Sharia (contract marriage is not valid)

2) Capability

• This is referring to the capacity to deliver/fulfill/ hand over the contract obligation.

• Contract of supplying stray animal and cerement guarantee by doctor is considered illogic and thus invalid.

3) Presence and known to both parties

• Known to both parties (EXCEPTION: donation or charity, this condition is not compulsory, as is a voluntary act, not an exchange contract - this concept is very important in Takaful industry)

• Item in contract must exist at the time of contract (transaction of animal embryo is not valid)

• EXEPTION: if there is strong possibilities of occurrence in the future (eg; rent of house/car, a contract to harvest a burnt farm is invalid, as there is no/small possibility in the future).

CONVENTIONAL INSURANCE vs TAKAFUL

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CONVENTIONAL INSURANCE vs TAKAFUL

Insurance; the purpose is very noble but the modus operandi is problematic; involve gharar, riba, maysir.

1) Gharar ( uncertainty)
• is prohibited because its existence in the contract may DENY the parties of equal bargaining power and they cannot make informed decisions. Do not really understand the attributes/consequences of the contract.

• Lead to DECEPTION, risk, hazard, ignorance etc.

• However, gharar in charitable and unilateral contracts is considered MINOR & TOLERABLE and does not render the contract void or voidable, e.g. unspecified amount for gift, donation, rebate, etc.

• GHARAR INI INSURANCE: Both subject matters-goods (policy) and price (premium) – are uncertain because the actual value/amount of both are conditional upon the occurrence of the peril/hazard which are uncertain.

2) Riba
• The INVESTMENTof the premium payments in riba-based activities (e.g. interest bearing accounts, bonds).

3) Maysir (gambling)
• elements of gambling (maysir) in purchasing the policy with the HOPE of getting more in terms of compensation/indemnity.

HOW TO ‘ISLAMIZE’ CONVENTIONAL INSURANCE?

Qardawi:
1) “In my view, insurance against hazard can be modified in a manner which would bring it closer to the Islamic principle by means of contract of DONATION with a condition of compensation…”

2) “A further requirement is that the company must be FREE (INVESTMENT) from usurious business”.

THUS, THE FUNDAMENTAL DIFFERENCE BETWEEN INSURANCE & TAKAFUL IS THE ELEMENT OF TABARRU’ (DONATION) ; LEAD TO A VALID AND PERMISSIBLE CONTRACT.

THE EFFECT OF TABARRU’ ELEMENT TO INSURANCE/TAKAFUL

• Changes the basis of insurance contract from exchange contract (mu’awadat), which is BILATERAL in nature, to charitable contract (tabarru’at), which is UNILATERAL in nature.

• When the contract is an EXCHANGE contract which is bilateral, uncertainty (gharar) must be absent.

• When a contract is a CHARITABLE contract which is unilateral, uncertainty (gharar) is tolerated.

• Thus, the tabarru’ element removes the objectionable features in and makes it Shariah compliant.

•The takaful company should clarify to their participants this important feature of takaful, i.e. that their contributions are for the purpose of MUTUAL INDEMNITY/PROTECTION and assistance amongst the members. Ie: HELP EACH OTHER.

DEFINITION OF TAKAFUL

Islamic insurance is a system through which the participants donate part or all of their contributions which are used to pay claims for damages suffered by some of the participants. The company’s role is restricted to managing the insurance operations and investing the insurance contributions.

COMMON CONFUSION ON TAKAFUL

• Takaful goes against the belief in the pre-presentation (DESTINY) (qada’ & qadar) of God.

• Takaful is a form of GAMBLING and a game of chance as the presence of the element of UNCERTAINTY (gharar) in the takaful contract.

• The use of the phrase “SELLING’ and ‘BUYING’ of the takaful policy; appear to be a trding commodity aimed to produce wealth.

REBUTTAL OF THE COMMON CONFUSION

• Takaful acts to REDUCE OR REMOVE HARM and hardship when they occur, while acknowledging that no one can run from or avoid divine destiny.

• This is in line with the statement by ‘Umar Ibn al Khattab in imposing TRAVELLING BANS for certain territories of the Islamic state in order to contain the cholera epidemic hitting the Muslims at the time:
“we run from one divine destiny to another”

• Takaful is not game of chance because its nature is MUTUAL CORPORATION, and not A ZERO SUM GAME. Thus, there is no loser or winner in a takaful scheme.

• Although uncertainty remains in a takaful arrangement, such uncertainty is TOLERATED because takaful is a CHERITABLE or gratuitous contract.

• In takaful, there is NO SELLING/BUYING (TRADING) policy, rather, it is a CONTRIBUTION by way of donation by the participants to the pool of fund for the purpose of mutual indemnity.