Islamic home finance products in dealing with abandoned housing projects in Malaysia: features, issues, and prospects

• Main Author: Md Dahlan, Nuarrual Hilal
• Format: Conference or Workshop Item
• Language: English; English
• Published: 2017
• Subjects: BP Islam. Bahaism. Theosophy, etc; HG Finance; TH Building construction
• Online Access: http://repo.uum.edu.my/22910/1/BICSS2017.pdf; http://repo.uum.edu.my/22910/2/BICSS2017_Keynote.pdf; http://repo.uum.edu.my/22910/

Islamic Banking has been established since in the 1980s in Malaysia. Various Islamic Home Finance products have been introduced and practised in Malaysia. However, these products have been tainted with the issue of their inadequacy to deal with the issues of abandoned housing projects. This paper aims to study the terms in the prevailing Islamic Home Finance products in Malaysia viz Bay’ Bithaman al-Ajil (BBA), Musharakah al-Mutanaqisah (‘MM’), Commodity Murabahah (‘CM’) and Ijarah Mausufah Fi Zimmah (‘IMFZ’) and how these products deal with the problems of abandoned housing projects. This paper used shariah (Islamic Law), legal doctrinal and qualitative social and textual analysis research methodologies. This paper finds that the current applicable terms in the said products are inadequate and warranted them to be replaced with terms that provide better equitable protection to the aggrieved purchasers in abandoned housing projects, comply with the shariah and dispense justice to the contracting parties. The outcome of this paper will improve the theory and practice of Islamic banking industry in dealing with this issue in Malaysia.