The paper reports on a study to develop a proposed Shariah compliant construction procurement fra... more The paper reports on a study to develop a proposed Shariah compliant construction procurement framework or hereinafter referred to as iProcure. The idea for the study was prompted when it was realized that there is a dichotomy in the way in which construction related business transactions are being conducted. On the one hand tools for and the use of Shariah compliant business transactions are on the rise but on the other hand business transactions concerning the procurement of buildings and infrastructure works, including those funded by Shariah compliant funding mechanisms and wakaf and zakat, still use the conventional/western styled contract arrangement. There is a concern that the latter may not be meeting the requirements of Shariah. Therefore parties involved therein could be conducting business transactions that may be considered syubhah. Methodology used for the study involved reviewing literature on Islamic principles on business transaction or al-muamalat and imbedding them into the conventional and western styled contract arrangement. The symbiosis of these two practices give birth to a theoretical Shariah compliant procurement framework for building and infrastructure works. Thereafter, a series of focused discussion with academics specializing in the Shariah and construction procurement was conducted to firm-up the framework. The outcome of the study is a proposed Shariah compliant construction procurement framework or iProcure. The study’s findings is significant in two ways: firstly it highlights the importance of the concept of Shariah compliant construction procurement and therefore improves the prospect of its application in future transactions. Secondly the application of Shariah compliance principles into the practice of construction procurement would facilitate minimizing or alleviating the presence of syubhah in future construction related business transactions. iProcure is targeted towards key players of the construction sector and policy makers in their future construction related business transactions or policies’ formulation respectively especially those works related to or funded by wakaf and zakat
Incessant and ascendant increases in the interest to adopt Shariah concepts in commercial transac... more Incessant and ascendant increases in the interest to adopt Shariah concepts in commercial transactions has encouraged business entities including contractors to employ Shariah compliance products. Currently, contractors are inclined to employ Contractor’s All Risks (CAR) Takaful to insure their works during construction. Upon any occurrence of specified risks to the construction works, contractors may submit claims and the monies received therefrom would be utilized to recover the damaged works. However, past studies claimed that the practice in assessing claims in takaful has deficiency in terms of its legitimacy from the Shariah perspectives. The current practice in assessing claims for construction works loss and damage lack of transparency and accountability with absence of standard guideline. Consequently, a study was conducted with the key objective to identify legitimacy from the Shariah perspectives in assessing claims for construction works loss and damage. The methodology ...
PurposeThis study aims to assess the availability of micro-takāful (micro-Islamic insurance) sche... more PurposeThis study aims to assess the availability of micro-takāful (micro-Islamic insurance) schemes for the protection of houses belonging to low-income groups in Malaysia.Design/methodology/approachThe study is conducted via desk research and interview discussions with representatives from takāful operators and key stakeholders.FindingsFindings of the study confirm the importance of micro-takāful as a scheme for the protection of low-income groups. Micro-takāful schemes in Malaysia are, however, skewed towards the protection of health, life and family. The study finds little industry interest in the provision of micro-takāful schemes for the protection of houses for low-income groups. This represents another important area that takāful operators should take into consideration in their planning.Research limitations/implicationsThe paper will help the Majlis Agama Islam Negeri-Negeri (MAINs), the regulator, takāful operators and government agencies such as Jabatan Wakaf, Zakat dan H...
In construction contracts, it is a pre-requisite for Contractors to secure insurances to cover co... more In construction contracts, it is a pre-requisite for Contractors to secure insurances to cover construction works related risks. Due to the interest and demand to apply Shariah compliance products in business transactions, with the advent of takaful and its products that cover areas including risks in construction works, it is observed that more Contractors are using Contractor’s All Risks (CAR) Takaful certificates in lieu of the conventional CAR policies. However, the lack of transparency and accountability on the way in which claims for construction works loss and damage were assessed have led to critiques and concerns raised on such issues on CAR Takaful. Consequently, a study with the aim to ascertain transparency and accountability in the practice of assessment of claims for loss and damage under CAR Takaful was conducted via critical review of literature and discussions with the experts of construction, Shariah and insurance/takaful fields. The key results from the study sugg...
In the practice of insurance works in the Malaysian construction industry, the Contractor’s All R... more In the practice of insurance works in the Malaysian construction industry, the Contractor’s All Risk (CAR) policy is essential which specify details of construction works, insurance coverage, risks, losses and compensation entitled for the insured upon the occurrence of insurable risks. Despite the practice of insurance contract for construction in Malaysia where standard policy and agreement is been applied and used by the parties, the practice of insurance assessment for compensation and reimbursement of construction works loss specifically under construction works in Contractor’s All Risks (CAR) Takaful policy is based and relied on custom company-based or in-house reports by the experts which are the loss adjusters. The review of this study provided comprehensive understanding of loss assessment for construction works and revealed the lack of standardized industry practice on the takaful assessment for construction work loss due to absence of reliable and published framework. He...
In Islam, wakaf and zakat are instruments aimed at helping the needy and poor. Consequently, waka... more In Islam, wakaf and zakat are instruments aimed at helping the needy and poor. Consequently, wakaf and zakat authorities design schemes including funding the building of new properties for the needy and poor or repairing their existing properties. Naturally, the completed properties and their contents are exposed to a variety of risks such as fire and natural disasters, hence the need for appropriate protection. According to Shariah, such protection is allowed through takaful. However, literature is lacking on the provision of risk protection of wakaf and zakat properties and contents therein. As such little is known about the concept of risk protection of wakaf and zakat properties designated or occupied by the needy and poor. This paper endeavours to unveil the concept of risk protection of wakaf and zakat funded properties belonging to or occupied by the needy and poor, highlights its importance and identify the means available to the wakaf and zakat authorities for securing the ...
Quantity Surveying is among the key professions that are involved in the provision of services re... more Quantity Surveying is among the key professions that are involved in the provision of services related to the built environment. Quantity Surveyors provide services in the critical areas of procurement, estimating, contract documentation and post contract administration of construction projects and built assets. In the context of Islamization of human knowledge (IoHK), recent studies suggest that the Bachelor in Quantity Surveying Programme (BQS) (Honours) at the Kulliyyah of Architecture and Environmental Design (KAED), International Islamic University Malaysia (IIUM) has content that include the five key components of the maqasid al-shariah namely preservation of (i) faith, (ii) self, (iii) intellect, (iv) lineage, and (iv) property. However, the studies also indicate that the programme’s maqasid al-shariah contents appear to be un-evenly distributed with “faith” and “lineage” being the weakest while “intellect” is the highest. Consequently, efforts are being made in attempting to...
The paper provides a review on the Malaysian Public Private Partnership (PPP). Through a desk stu... more The paper provides a review on the Malaysian Public Private Partnership (PPP). Through a desk study, the paper begins by defining the key concept of PPP and presents the evolution of the Malaysian PPP and its implementation. Moving on, the paper provides a detailed analysis of PPP projects implementation in Malaysia and highlights key issues and problems
In their endeavors to achieve economic integration, the leaders of ASEAN initiated and implemente... more In their endeavors to achieve economic integration, the leaders of ASEAN initiated and implemented policies under the so called “ASEAN Economic Community 2015”. The policies relate to almost all sectors of the ASEAN’s economy. In relation to labour mobility, the policy on free movement of skills and unskilled across the 10 member countries of ASEAN may bring economic and non-economic implications to both the host and exporting member countries. However, empirical study on the subject matter is scarce. Consequently, a study employing desk research and a questionnaire survey among respondents from selected member countries of ASEAN was carried out. The findings from the study highlight the potential impacts of labour mobility may have, economically and socially, to both the host and exporting member countries.
ASEAN wishes to achieve regional economic integration by 2025. Consequently, a host of policies a... more ASEAN wishes to achieve regional economic integration by 2025. Consequently, a host of policies aimed at facilitating achieving economic integration was initiated and implemented commencing 2015. However, published empirical study is scarce especially one that concerns the policies, the awareness, understanding and acceptance by the people of the ASEAN member countries. This paper attempts to patch the presence of such a gap in the literature. Specifically, this paper reports on a study to identify key policies related to the ASEAN Economic Community 2015 and assesses the ASEAN peoples’ awareness and acceptance of the identified policies. The study combined desk research with a questionnaire survey, the latter comprised of respondents carefully drawn from selected member countries of ASEAN. The results from the desk study identified the key policies that would drive ASEAN 2015 while the results from the survey suggest that on the whole the respondents are aware of ASEAN 2015, its po...
According to the Malaysia Economic Report 2015/2016, the construction industry of Malaysia is est... more According to the Malaysia Economic Report 2015/2016, the construction industry of Malaysia is estimated to contribute some 8% to the nation’s GDP in year 2015. Consequently, activities related to construction are widespread, hence the potential of loss and damage they entail. Such potential loss and damage of construction works require protection and the most common type of insurance in compliance with the Shariah is Contractor’s All Risks (CAR) Takaful. The CAR Takaful continuously recorded significant performance with 15% increment yearly. Critically, despite substantial growth, the penetration of CAR Takaful industry is far below its potentials. A wide range of issues and challenges concerning construction takaful are being debated by Shariah scholars and technocrats. This chapter aims to review the theory and practice of takaful in general and CAR Takaful specifically, with the objective to provide better understanding of takaful and CAR Takaful and to highlight issues and chall...
Conventionally, arbitration is deemed as the most frequently used alternative dispute resolution ... more Conventionally, arbitration is deemed as the most frequently used alternative dispute resolution (ADR) mechanism for settling construction related disputes. In Islam a similar approach in ADR, is known as Tahkim. While the practice and procedures in arbitration are well established, but not much is known about Tahkim. In line with the interest of the business community to seek ways to adopt Shariah-compliant practice and procedures it is considered important for the prospect on using Tahkim in settling construction related disputes to be assessed. This paper reports on a study to assess the prospect of using Tahkim as a Shariah compliant ADR for resolving construction disputes. Methodology adopted for the study combines review of literature and interviews with Shariah, legal and construction experts. The outcome of the study suggests that Tahkim has the potential to be used for settling construction related disputes.
In Islam, the fundamental instruments to safeguard welfare of Muslims are zakat and waqaf. Zakat ... more In Islam, the fundamental instruments to safeguard welfare of Muslims are zakat and waqaf. Zakat and waqaf instruments to facilitate helping needy Muslims that would be inevitably involve management and assets i.e. money, land as well as properties. In the current economy climate, these assets; if are not manage properly could expose to variety of risks. Such risks require protections and conventionally, such protections are provided under variety of insurance schemes. In the Shariah, the protections of risks are allowed through the concept of takaful. This paper aims to discuss the activities of zakat and waqaf that may face risks and should consider to apply protection through takaful. Consequently, there is an opportunity for zakat-waqaf-takaful to collaborate. The study involves i) desk research and ii) discussions with experts in the field of fiqh mua’malat and procurement. The outcome of the study is to generate the idea on the possibility of two fundamental instruments, i.e. ...
The paper reports on a study to develop a proposed Shariah compliant construction procurement fra... more The paper reports on a study to develop a proposed Shariah compliant construction procurement framework or hereinafter referred to as iProcure. The idea for the study was prompted when it was realized that there is a dichotomy in the way in which construction related business transactions are being conducted. On the one hand tools for and the use of Shariah compliant business transactions are on the rise but on the other hand business transactions concerning the procurement of buildings and infrastructure works, including those funded by Shariah compliant funding mechanisms and wakaf and zakat, still use the conventional/western styled contract arrangement. There is a concern that the latter may not be meeting the requirements of Shariah. Therefore parties involved therein could be conducting business transactions that may be considered syubhah. Methodology used for the study involved reviewing literature on Islamic principles on business transaction or al-muamalat and imbedding them into the conventional and western styled contract arrangement. The symbiosis of these two practices give birth to a theoretical Shariah compliant procurement framework for building and infrastructure works. Thereafter, a series of focused discussion with academics specializing in the Shariah and construction procurement was conducted to firm-up the framework. The outcome of the study is a proposed Shariah compliant construction procurement framework or iProcure. The study’s findings is significant in two ways: firstly it highlights the importance of the concept of Shariah compliant construction procurement and therefore improves the prospect of its application in future transactions. Secondly the application of Shariah compliance principles into the practice of construction procurement would facilitate minimizing or alleviating the presence of syubhah in future construction related business transactions. iProcure is targeted towards key players of the construction sector and policy makers in their future construction related business transactions or policies’ formulation respectively especially those works related to or funded by wakaf and zakat
Incessant and ascendant increases in the interest to adopt Shariah concepts in commercial transac... more Incessant and ascendant increases in the interest to adopt Shariah concepts in commercial transactions has encouraged business entities including contractors to employ Shariah compliance products. Currently, contractors are inclined to employ Contractor’s All Risks (CAR) Takaful to insure their works during construction. Upon any occurrence of specified risks to the construction works, contractors may submit claims and the monies received therefrom would be utilized to recover the damaged works. However, past studies claimed that the practice in assessing claims in takaful has deficiency in terms of its legitimacy from the Shariah perspectives. The current practice in assessing claims for construction works loss and damage lack of transparency and accountability with absence of standard guideline. Consequently, a study was conducted with the key objective to identify legitimacy from the Shariah perspectives in assessing claims for construction works loss and damage. The methodology ...
PurposeThis study aims to assess the availability of micro-takāful (micro-Islamic insurance) sche... more PurposeThis study aims to assess the availability of micro-takāful (micro-Islamic insurance) schemes for the protection of houses belonging to low-income groups in Malaysia.Design/methodology/approachThe study is conducted via desk research and interview discussions with representatives from takāful operators and key stakeholders.FindingsFindings of the study confirm the importance of micro-takāful as a scheme for the protection of low-income groups. Micro-takāful schemes in Malaysia are, however, skewed towards the protection of health, life and family. The study finds little industry interest in the provision of micro-takāful schemes for the protection of houses for low-income groups. This represents another important area that takāful operators should take into consideration in their planning.Research limitations/implicationsThe paper will help the Majlis Agama Islam Negeri-Negeri (MAINs), the regulator, takāful operators and government agencies such as Jabatan Wakaf, Zakat dan H...
In construction contracts, it is a pre-requisite for Contractors to secure insurances to cover co... more In construction contracts, it is a pre-requisite for Contractors to secure insurances to cover construction works related risks. Due to the interest and demand to apply Shariah compliance products in business transactions, with the advent of takaful and its products that cover areas including risks in construction works, it is observed that more Contractors are using Contractor’s All Risks (CAR) Takaful certificates in lieu of the conventional CAR policies. However, the lack of transparency and accountability on the way in which claims for construction works loss and damage were assessed have led to critiques and concerns raised on such issues on CAR Takaful. Consequently, a study with the aim to ascertain transparency and accountability in the practice of assessment of claims for loss and damage under CAR Takaful was conducted via critical review of literature and discussions with the experts of construction, Shariah and insurance/takaful fields. The key results from the study sugg...
In the practice of insurance works in the Malaysian construction industry, the Contractor’s All R... more In the practice of insurance works in the Malaysian construction industry, the Contractor’s All Risk (CAR) policy is essential which specify details of construction works, insurance coverage, risks, losses and compensation entitled for the insured upon the occurrence of insurable risks. Despite the practice of insurance contract for construction in Malaysia where standard policy and agreement is been applied and used by the parties, the practice of insurance assessment for compensation and reimbursement of construction works loss specifically under construction works in Contractor’s All Risks (CAR) Takaful policy is based and relied on custom company-based or in-house reports by the experts which are the loss adjusters. The review of this study provided comprehensive understanding of loss assessment for construction works and revealed the lack of standardized industry practice on the takaful assessment for construction work loss due to absence of reliable and published framework. He...
In Islam, wakaf and zakat are instruments aimed at helping the needy and poor. Consequently, waka... more In Islam, wakaf and zakat are instruments aimed at helping the needy and poor. Consequently, wakaf and zakat authorities design schemes including funding the building of new properties for the needy and poor or repairing their existing properties. Naturally, the completed properties and their contents are exposed to a variety of risks such as fire and natural disasters, hence the need for appropriate protection. According to Shariah, such protection is allowed through takaful. However, literature is lacking on the provision of risk protection of wakaf and zakat properties and contents therein. As such little is known about the concept of risk protection of wakaf and zakat properties designated or occupied by the needy and poor. This paper endeavours to unveil the concept of risk protection of wakaf and zakat funded properties belonging to or occupied by the needy and poor, highlights its importance and identify the means available to the wakaf and zakat authorities for securing the ...
Quantity Surveying is among the key professions that are involved in the provision of services re... more Quantity Surveying is among the key professions that are involved in the provision of services related to the built environment. Quantity Surveyors provide services in the critical areas of procurement, estimating, contract documentation and post contract administration of construction projects and built assets. In the context of Islamization of human knowledge (IoHK), recent studies suggest that the Bachelor in Quantity Surveying Programme (BQS) (Honours) at the Kulliyyah of Architecture and Environmental Design (KAED), International Islamic University Malaysia (IIUM) has content that include the five key components of the maqasid al-shariah namely preservation of (i) faith, (ii) self, (iii) intellect, (iv) lineage, and (iv) property. However, the studies also indicate that the programme’s maqasid al-shariah contents appear to be un-evenly distributed with “faith” and “lineage” being the weakest while “intellect” is the highest. Consequently, efforts are being made in attempting to...
The paper provides a review on the Malaysian Public Private Partnership (PPP). Through a desk stu... more The paper provides a review on the Malaysian Public Private Partnership (PPP). Through a desk study, the paper begins by defining the key concept of PPP and presents the evolution of the Malaysian PPP and its implementation. Moving on, the paper provides a detailed analysis of PPP projects implementation in Malaysia and highlights key issues and problems
In their endeavors to achieve economic integration, the leaders of ASEAN initiated and implemente... more In their endeavors to achieve economic integration, the leaders of ASEAN initiated and implemented policies under the so called “ASEAN Economic Community 2015”. The policies relate to almost all sectors of the ASEAN’s economy. In relation to labour mobility, the policy on free movement of skills and unskilled across the 10 member countries of ASEAN may bring economic and non-economic implications to both the host and exporting member countries. However, empirical study on the subject matter is scarce. Consequently, a study employing desk research and a questionnaire survey among respondents from selected member countries of ASEAN was carried out. The findings from the study highlight the potential impacts of labour mobility may have, economically and socially, to both the host and exporting member countries.
ASEAN wishes to achieve regional economic integration by 2025. Consequently, a host of policies a... more ASEAN wishes to achieve regional economic integration by 2025. Consequently, a host of policies aimed at facilitating achieving economic integration was initiated and implemented commencing 2015. However, published empirical study is scarce especially one that concerns the policies, the awareness, understanding and acceptance by the people of the ASEAN member countries. This paper attempts to patch the presence of such a gap in the literature. Specifically, this paper reports on a study to identify key policies related to the ASEAN Economic Community 2015 and assesses the ASEAN peoples’ awareness and acceptance of the identified policies. The study combined desk research with a questionnaire survey, the latter comprised of respondents carefully drawn from selected member countries of ASEAN. The results from the desk study identified the key policies that would drive ASEAN 2015 while the results from the survey suggest that on the whole the respondents are aware of ASEAN 2015, its po...
According to the Malaysia Economic Report 2015/2016, the construction industry of Malaysia is est... more According to the Malaysia Economic Report 2015/2016, the construction industry of Malaysia is estimated to contribute some 8% to the nation’s GDP in year 2015. Consequently, activities related to construction are widespread, hence the potential of loss and damage they entail. Such potential loss and damage of construction works require protection and the most common type of insurance in compliance with the Shariah is Contractor’s All Risks (CAR) Takaful. The CAR Takaful continuously recorded significant performance with 15% increment yearly. Critically, despite substantial growth, the penetration of CAR Takaful industry is far below its potentials. A wide range of issues and challenges concerning construction takaful are being debated by Shariah scholars and technocrats. This chapter aims to review the theory and practice of takaful in general and CAR Takaful specifically, with the objective to provide better understanding of takaful and CAR Takaful and to highlight issues and chall...
Conventionally, arbitration is deemed as the most frequently used alternative dispute resolution ... more Conventionally, arbitration is deemed as the most frequently used alternative dispute resolution (ADR) mechanism for settling construction related disputes. In Islam a similar approach in ADR, is known as Tahkim. While the practice and procedures in arbitration are well established, but not much is known about Tahkim. In line with the interest of the business community to seek ways to adopt Shariah-compliant practice and procedures it is considered important for the prospect on using Tahkim in settling construction related disputes to be assessed. This paper reports on a study to assess the prospect of using Tahkim as a Shariah compliant ADR for resolving construction disputes. Methodology adopted for the study combines review of literature and interviews with Shariah, legal and construction experts. The outcome of the study suggests that Tahkim has the potential to be used for settling construction related disputes.
In Islam, the fundamental instruments to safeguard welfare of Muslims are zakat and waqaf. Zakat ... more In Islam, the fundamental instruments to safeguard welfare of Muslims are zakat and waqaf. Zakat and waqaf instruments to facilitate helping needy Muslims that would be inevitably involve management and assets i.e. money, land as well as properties. In the current economy climate, these assets; if are not manage properly could expose to variety of risks. Such risks require protections and conventionally, such protections are provided under variety of insurance schemes. In the Shariah, the protections of risks are allowed through the concept of takaful. This paper aims to discuss the activities of zakat and waqaf that may face risks and should consider to apply protection through takaful. Consequently, there is an opportunity for zakat-waqaf-takaful to collaborate. The study involves i) desk research and ii) discussions with experts in the field of fiqh mua’malat and procurement. The outcome of the study is to generate the idea on the possibility of two fundamental instruments, i.e. ...
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Papers by Puteri Nur Farah Naadia Mohd Fauzi