The Possibility of Implementing Mushārakah Mutanāqiṣah Contract in Home Financing at Hong Leong Islamic Bank

إمكانية تطبيق المشاركة المتناقصة في التمويل العقاري في هونغ ليونغ إسلاميك بنك

  • Aisyah Humairah Zulqarnain Master Student, Department of Fiqh and Usul al-Fiqh, International Islamic University Malaysia
  • Luqman Zakariyah Assoc. Prof., Department of Fiqh & Usul al-Fiqh, International Islamic University Malaysia

Abstract

Mushārakah Mutanāqiah (MM) or Diminishing Partnership is one of the financing contracts that comply with Shariah and many Malaysian Islamic banks have introduced this mode of contract into their home financing product except Hong Leong Islamic Bank and some other Islamic banks who have not yet done so. Thus, this research intends to study the possibility of offering MM contract in Islamic Home Financing as a product at Hong Leong Islamic Bank. The researchers conducted a field study through several interviews with the staff working in the product development department and department of Shariah in some of the Malaysian Islamic banks. From the theoretical aspect, the researchers explain the concept of home financing, MM and the fiqh perspective of the subject in question. The responses received during the interviews are used to analyze the possibility of offering MM contract in Islamic Home Financing product at Hong Leong Islamic Bank. This research concludes that there is a possibility for Hong Leong Islamic Bank to do so, should it consider some suggestions presented in this paper.  

Keywords: Mushārakah Mutanāqiṣah, Home Financing, Hong Leong Islamic Bank.

https://doi.org/10.31221/osf.io/6jf2t

Downloads

Download data is not yet available.

References

Abu al-Ghudah, ꜥAbdussattār. 2004. “al-mushārokah al-mutanāqisoh wa Ḍowabiṭuha as-SharꜤī”. MajmaꜤ al-Fiqh al-Islāmī.

Abu al-Ghudah, ꜥAbdussattār. 2007. “Takyīf Sharikatai al-ꜥaqad wal-milk wa atharuhu fī taṭbīqāt as-ṣukuk wal-mushārokah al-mutanāqisoh”. Buhuth fī al-muꜥāmalāt wal-asalīb al-maṣrofiyyah al-Islāmiyyah. 1st Ed.

Al-Dusūqī, Muḥammad Bin Aḥmad Bin Ꜥurfah. Ḥāshiyah Al-Dusūqī Ꜥala Sharaḥ Al-Kabīr. Dār Iḥyā′ Al-Kutub Al-ꜥarabiyyah

Al-Jawharī, Abī Naṣr IsmāꜤīl bin Ḥamād. 1999. Al-Ṣoḥḥāḥ. Beirūt: Dār Iḥyā′ Al-Turāth Al-ꜥarabī

Al-Kawāmalah, Nuruddīn Ꜥabdul Karīm. 2008. Al-Mushārakah Al-Mutanāqiṣah wa Taṭbīqātuhā Al-Muāsoroh fī al-fiqh Al-Islāmī. Ꜥamman: Dārun Nafāʾis linnashr wa al-tawziꜤ

Al-Maṭrizī, Abū Al-Fattah Nāṣiruddīn bin ꜥabdussayd bin ꜥali. 1979. Al-Mughrib fī Tartib Al-Muꜥrib. Ḥalab: Maktabat Usāmah bin Zayd

Al-Qāḍī, Hishām Muḥammad. 2011. Al-Tamwīl Al-ꜥaqārī Dirāsah Fiqhiyyah Qānūniyyah Iqtiṣādiyah Muqāranah.

Al-Zabīdī, Muḥammad Murtaḍā. 2007. TājulꜤarūs min Jawāhir al-Qāmūs. Beirūt: Dārulkutub Al-ꜥilmiyyah.

Al-Zuḥaylī, Wahbah. 2002. Al-Muꜥāmalāt Al-Māliyah Al-Muꜥāṣoroh : Buhūth wa Fatāwā wa Ḥulūl. Dimashq: Dārulfikr

An-Nashamī, ꜤAjīl Jāsim. 2001. “al-mushārokah al-muntahiyah bittamlīk”. MajmaꜤ al-Fiqh al-Islāmī.

As-Salūs, ꜤAli Aḥmad. 2004. “al-mushārokah al-mutanāqisoh wa Ḍowabiṭuha as-SharꜤī”. MajmaꜤ al-Fiqh al-Islāmī.

Az-Zarkashi, Badaruddīn bin Muḥammad Buhādir. 1985. Al-Manthūr fī al-QowaꜤid al-fiqhiyyah. Kuwayt: Wizāroh Al-Awqāf Al-Kuwaytiyah

Ḥammād Nazīh. 1995. MuꜤjam Al-Muṣṭolaḥāt Al-Iqtiṣādiyah fī Lughatul Fuqoha′. Riyāḍ: Al-Dār al-ꜥālamiyyah lilkitab al-Islāmiyyah.

Ḥammad, Nazīh Kamal. 2002. al-mushārokah al-mutanāqisoh wa aḥkāmuha fī Ḍauʾ al-Ḍowabit al-Ꜥuqud al-mustajiddah”. MajmaꜤ al-Fiqh al-Islāmī.

Hay′ah Al-Muḥāsabah wa Al-MurājaꜤah Lil Muʾassasāt Al-Māliyah wa Al-Islāmiyah. 2009. Al-MaꜤayīr Al-SharꜤiyyah

Ibn Manẓūr, 1993. Lisānulꜥarab. Beirūt: Dāru Ṣādir

Ibn ꜥābidin, Rad Al-Maḥtār ꜥalā dar al-Mukhtār. 1992. Dārulkutub Al-ꜥilmiyyah.

Ibnul Hammam, 1900, Sharaḥ Fathul Qadīr. Beirūt: Dārulfikr

Ibrāhīm, Fakhryyah. 2010. Al-Mushārakah Al-Mutanāqiṣah fī At-Tamwīl Al-ꜥaqārī bi Mālīzia Maybank Namūdhajan. Master Thesis. International Islamic University Malaysia.

Ibrāhīm, ꜥabdullah. “At-Tamwīl Al-ꜥaqārī li binā′ al-masākin wa shirā′iha”, Majallah Majmaꜥ al-fiqh al-Islāmī.

MajmaꜤ al-fiqh al-Islāmī, al-Dawroh Al-Khāmisah Ꜥashroh. 2004. Muscat.

Muṣṭofā, Ibrāhīm., A-Zayyāt, Aḥmad., Ꜥabdul Qādir. & an-Najjār Muḥammad. al-MuꜤjam al-wasīṭ. Dār al-DaꜤwah

Qaḥaf, Mundhir. 1998. Mafhūm Al-Tamwīl al-Iqtisād al-Islāmī. Jeddah: al-MaꜤhad al-Islāmī lilbuḥūth wa al-tadrīb.

Shaḥātah, Ḥusayn Ḥusayn. (2009M). “Ṣiyagh Al-Tamwīl Al-ꜥaqārī Al-Muāsoroh fī Mīzān al-SharīꜤah al-Islāmiyyah”. Majallat al-Iqtisād al-Islāmī

Shbīr, Muḥammad ꜤUthmān. 2007. Al-MuꜤāmalāt al-Māliyah al-Muꜥāsoroh fī al-fiqh al-Islāmī. ꜤUmman: Dār an-Nafāis linnashr wa at-tauzīꜤ.

ꜤUmar, Aḥmad Mukhtār Ꜥabdul Ḥamīd. 2008. Muꜥjam al-Lughah al-ꜥarabiyyah al-Muꜥāsoroh. Ꜥalam Al-kutub.

Asadov, A., Sori, Z., M., Ramadili, S., M., & Shamsudheen, S., V. (2018). Musharakah Mutanaqisah Home Financing: Issues in Practice. Journal of Islamic Accounting and Business Research, 9(1), 91-103. https://doi.org/10.1108/JIABR-08-2015-0036

BNM. (2015). Policy Document on Musyarakah. Retrieved from http://www.bnm.gov.my/guidelines/05_shariah/Musyarakah.pdf

BNM. (2018). BNM Policy Document of Ijarah. Retrieved June 17th, 2019, from http://www.bnm.gov.my/index.php?ch=57&pg=137&ac=530&bb=file

Business New the Star. (2019). HLB may sell MIMB Investment Bank licence. Retrieved April 6th, 2019, from https://www.thestar.com.my/business/business-news/2011/08/13/hlb-may-sell-mimb-investment-bank-licence-says-group-md/

Hong Leong Group Star online. (2019). Hong Leong group. Retrieved April 20, 2019, from http://www.hongleong.com/

Hong Leong Islamic Bank. (2019). Hong Leong Islamic Bank, about us. Retrieved April 6th, 2019, from https://www.hlisb.com.my/en/personal-i/about-us.html

Hong Leong. (2019). The Origin of Hong Leong. Retrieved April 5th, 2019, from https://www.thestar.com.my/business/business-news/2016/10/01/the-origins-of-hong-leong/

Rahman, A., S, Hilmy, H., M., A., Saifurrahman, A., & Hassan, R. (2018). Gap Analysis Between BNM Regulation and Application of Musharakah Mutanaqisah in Islamic Banking, Journal of Islamic Finance, 7(1), 38-50.

Samad, E., M., A. (2011). Demand Conditions for Islamic Home Financing Malaysia: Perception Analysis. Saarbrücken, Germany: LAP LAMBERT Academic Publishing.

Published
2019-12-01
How to Cite
Zulqarnain, A. H., & Zakariyah, L. (2019). The Possibility of Implementing Mushārakah Mutanāqiṣah Contract in Home Financing at Hong Leong Islamic Bank: إمكانية تطبيق المشاركة المتناقصة في التمويل العقاري في هونغ ليونغ إسلاميك بنك. International Journal of Fiqh and Usul Al-Fiqh Studies (IJFUS), 3(2), 31 - 46. Retrieved from https://journals.iium.edu.my/al-fiqh/index.php/al-fiqh/article/view/153