Zakat institutions in Malaysia oversee the obligatory Islamic donations, which have improved the poor and needy‘s socio-economic conditions through innovative programs. These income-generating programs, which zakat recipients participate in, have enabled people to improve their livelihoods. These programs allow zakat recipients to become business owners with the ultimate goal of becoming zakat payers themselves. However, despite all assistance extended, the number of entrepreneurial failures among asnaf entrepreneurs is quite alarmingly high. Inadvertently, the fulfillment of Maqasid Syariah, the goals or objectives of Islamic law, is still lacking since identifying the rightful recipients from potential recipients is quite challenging. A successful entrepreneur requires motivation, so recipients should be motivated. If the best recipients are not identified, then there must be flaws in the system, so pinpointing those areas for improvement becomes critical. Not only that, once motivated recipients are found, which of these recipients will follow Maqasid Syariah to become zakat payers? In view of these issues, this paper proposes three main pre-selection areas for asnaf entrepreneurs, including a look at the three participants, namely, the zakat recipients, the zakat institutions, and the zakat payers. A thorough understanding of these participants, for future successful zakat process implementation, is crucial. However, the main areas discussed are based on a participant‘s pre-selection which (1) measures their entrepreneurial intent, or motivation, by using an entrepreneurship index to identify true potential asnaf entrepreneurs, (2) a proposal to appoint village headmen who collaborate with local imams to verify potential recipients for better zakat management, and (3) an allocation of capital for targeted Millennial Asnaf who would use the money to initiate their entrepreneurial ventures on a small scale so they can increase the success of the Islamic zakat system.
Islamic products and services have high contribution to the economy recently. This contribution has inspired Malaysia to set its mission to become a global halal hub. Halal hub generally relies on the level of awareness among Muslim particularly the authority in understanding the main concept of Shariah-compliant products and services. This paper will principally discuss on Shariah-compliant hotel industry by elaborating the important criteria from the perspectives of the authority in achieving the Shariah-Compliant hotel status in Malaysia. Focusing on qualitative method, this study used in-depth and open-ended interviews with the authorities namely JAKIM and JAHEAIK. Interviews were recorded, transcribed and analyzed. It is found that JAKIM and JAHEAIK stated very limited criteria to specify a Shariah-compliant hotel. However, through interviews, JAKIM and JAHEAIK have provided some insights on how to fully achieve the Shariah-compliant attributes. This paper is important as it can significantly provide much needed feedback from the authority perspectives for the use of interested industry players.
Mudharabah is a profit-sharing partnership agreement of a business venture to carry out economic activities. Despite its potential socioeconomic benefits to the parties involved and to the society, the application of mudharabah is limited to engineered Islamic finance products which transform the conventional financial products into Shari'ah-compliant ones. We argue that, in order to realise the mudharabah true potentials, among others, the mudharabah contract needs to be revived. The purpose of this study is to propose a framework in reviving the mudharabah contract between the sahibul mal (capital provider/investor) and the mudharib (entrepreneur). The research methods used in this study are library research and content analysis. As a result, agency theory is recognised to be very relevant to the mudharabah contract. To revive the mudharabah contract, tahaluf concept (Islamic treaty with compliance with Shari'ah) is identified as the most suitable concept to be adopted. This proposed framework serves as guidance in formulating the data collection strategy from different perspectives i.e. from sahibul mal, mudharib, Shari'ah advisors and academicians.
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