Role of public funds in sustaining Islamic microfinance based on maqasid approach: a case study of Selangor tabung masjid

Purpose - Mosque fund, known as Tabung Masjid in Malaysia, is one of the revenues in Islam yet to be developed. A proper management of this revenue in all Muslim countries where Tabarru‘āt (voluntary donations) are collected ought to have sustainability capacity on Islamic microfinance. However, man...

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Main Authors: Zakariyah, Luqman, Mhd. Sarif, Suhaimi, Ahmad H.Osman, Rahmah, Abdul Rahman, Shukran, Mohd Noor, Azman
Format: Proceeding Paper
Language:English
Published: 2017
Subjects:
Online Access:http://irep.iium.edu.my/81417/
http://irep.iium.edu.my/81417/1/81417_Role%20of%20public%20funds%20in%20sustaining%20Islamic_new.pdf
_version_ 1848789125881135104
author Zakariyah, Luqman
Mhd. Sarif, Suhaimi
Ahmad H.Osman, Rahmah
Abdul Rahman, Shukran
Mohd Noor, Azman
author_facet Zakariyah, Luqman
Mhd. Sarif, Suhaimi
Ahmad H.Osman, Rahmah
Abdul Rahman, Shukran
Mohd Noor, Azman
author_sort Zakariyah, Luqman
building IIUM Repository
collection Online Access
description Purpose - Mosque fund, known as Tabung Masjid in Malaysia, is one of the revenues in Islam yet to be developed. A proper management of this revenue in all Muslim countries where Tabarru‘āt (voluntary donations) are collected ought to have sustainability capacity on Islamic microfinance. However, managing these funds to bring about the foreseeability remains untapped. This paper aims to assess ways in which Tabung Masjid is managed in Malaysia. Methodology - The paper evaluates the management of TM, using both questionnaires and semi-structured interview to unveil the current situation of these funds. The sample of 287 respondents consists of key personnel of Tabung Masjid in Malaysia. Data obtained from the questionnaire survey was analysed through stepwise regression to determine the role of donation in investment and banking activities among selected TM. Findings - The main findings of this paper are to show that increased amounts of donations will result in an increase in the intention toward investment and savings among selected Tabung Masjids. A negative association between monthly donations and savings in bank indicate that higher level of donations collected in a month is spent in operating activities which results in a limited amount of savings. Research Limitations - This study provides preliminary indications that donation has a significant impact on investment and savings among tabung masjids in Malaysia. Future studies are required to identify Islamic investment instruments and the risk management procedure which are beyond the scope of this paper. Practical Implication - The role of these funds in strengthening Islamic microfinance is argued based on the maqāṣid al-Sharī‘ah of protection of wealth. The paper suggests a Tabung Hajj prototype of Tabung Masjid as a sustainable drive of Islamic microfinance for empowering Muslims and alleviating poverty.
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format Proceeding Paper
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institution International Islamic University Malaysia
institution_category Local University
language English
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publishDate 2017
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spelling iium-814172020-11-03T09:08:43Z http://irep.iium.edu.my/81417/ Role of public funds in sustaining Islamic microfinance based on maqasid approach: a case study of Selangor tabung masjid Zakariyah, Luqman Mhd. Sarif, Suhaimi Ahmad H.Osman, Rahmah Abdul Rahman, Shukran Mohd Noor, Azman BF Psychology BP173.75 Islam and economics BP173.77 Islam and work BP188.16 Wasatiyyah. Moderation In Islam BP190.5 Islamization of Knowledge HG3368 Islamic Banking and Finance Purpose - Mosque fund, known as Tabung Masjid in Malaysia, is one of the revenues in Islam yet to be developed. A proper management of this revenue in all Muslim countries where Tabarru‘āt (voluntary donations) are collected ought to have sustainability capacity on Islamic microfinance. However, managing these funds to bring about the foreseeability remains untapped. This paper aims to assess ways in which Tabung Masjid is managed in Malaysia. Methodology - The paper evaluates the management of TM, using both questionnaires and semi-structured interview to unveil the current situation of these funds. The sample of 287 respondents consists of key personnel of Tabung Masjid in Malaysia. Data obtained from the questionnaire survey was analysed through stepwise regression to determine the role of donation in investment and banking activities among selected TM. Findings - The main findings of this paper are to show that increased amounts of donations will result in an increase in the intention toward investment and savings among selected Tabung Masjids. A negative association between monthly donations and savings in bank indicate that higher level of donations collected in a month is spent in operating activities which results in a limited amount of savings. Research Limitations - This study provides preliminary indications that donation has a significant impact on investment and savings among tabung masjids in Malaysia. Future studies are required to identify Islamic investment instruments and the risk management procedure which are beyond the scope of this paper. Practical Implication - The role of these funds in strengthening Islamic microfinance is argued based on the maqāṣid al-Sharī‘ah of protection of wealth. The paper suggests a Tabung Hajj prototype of Tabung Masjid as a sustainable drive of Islamic microfinance for empowering Muslims and alleviating poverty. 2017-07-15 Proceeding Paper PeerReviewed application/pdf en http://irep.iium.edu.my/81417/1/81417_Role%20of%20public%20funds%20in%20sustaining%20Islamic_new.pdf Zakariyah, Luqman and Mhd. Sarif, Suhaimi and Ahmad H.Osman, Rahmah and Abdul Rahman, Shukran and Mohd Noor, Azman (2017) Role of public funds in sustaining Islamic microfinance based on maqasid approach: a case study of Selangor tabung masjid. In: 4th International Islamic Economics and Finance Congress, 15th-16th July 2017, Istanbul, Turkey. (Unpublished)
spellingShingle BF Psychology
BP173.75 Islam and economics
BP173.77 Islam and work
BP188.16 Wasatiyyah. Moderation In Islam
BP190.5 Islamization of Knowledge
HG3368 Islamic Banking and Finance
Zakariyah, Luqman
Mhd. Sarif, Suhaimi
Ahmad H.Osman, Rahmah
Abdul Rahman, Shukran
Mohd Noor, Azman
Role of public funds in sustaining Islamic microfinance based on maqasid approach: a case study of Selangor tabung masjid
title Role of public funds in sustaining Islamic microfinance based on maqasid approach: a case study of Selangor tabung masjid
title_full Role of public funds in sustaining Islamic microfinance based on maqasid approach: a case study of Selangor tabung masjid
title_fullStr Role of public funds in sustaining Islamic microfinance based on maqasid approach: a case study of Selangor tabung masjid
title_full_unstemmed Role of public funds in sustaining Islamic microfinance based on maqasid approach: a case study of Selangor tabung masjid
title_short Role of public funds in sustaining Islamic microfinance based on maqasid approach: a case study of Selangor tabung masjid
title_sort role of public funds in sustaining islamic microfinance based on maqasid approach: a case study of selangor tabung masjid
topic BF Psychology
BP173.75 Islam and economics
BP173.77 Islam and work
BP188.16 Wasatiyyah. Moderation In Islam
BP190.5 Islamization of Knowledge
HG3368 Islamic Banking and Finance
url http://irep.iium.edu.my/81417/
http://irep.iium.edu.my/81417/1/81417_Role%20of%20public%20funds%20in%20sustaining%20Islamic_new.pdf