Proceedings of the 3rd International Conference on Advance & Scientific Innovation, ICASI 2020, 20 June 2020, Medan, Indonesia

Research Article

Determining the Wage Rate in Islamic Leasing Scheme of Selected Malaysian Financial Institution: A Requirement in Developing the Economy of Society

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  • @INPROCEEDINGS{10.4108/eai.20-6-2020.2300657,
        author={Anisah  Nasib and Siti Nadiah Mohd Salim and Muhammad Solihin Yaakub},
        title={Determining the Wage Rate in Islamic Leasing Scheme of Selected Malaysian Financial Institution: A Requirement in Developing the Economy of Society},
        proceedings={Proceedings of the 3rd International Conference on Advance \& Scientific Innovation, ICASI 2020, 20 June 2020, Medan, Indonesia},
        publisher={EAI},
        proceedings_a={ICASI},
        year={2020},
        month={9},
        keywords={wage rate islamic pawn selected financial institution},
        doi={10.4108/eai.20-6-2020.2300657}
    }
    
  • Anisah Nasib
    Siti Nadiah Mohd Salim
    Muhammad Solihin Yaakub
    Year: 2020
    Determining the Wage Rate in Islamic Leasing Scheme of Selected Malaysian Financial Institution: A Requirement in Developing the Economy of Society
    ICASI
    EAI
    DOI: 10.4108/eai.20-6-2020.2300657
Anisah Nasib1,*, Siti Nadiah Mohd Salim1, Muhammad Solihin Yaakub1
  • 1: Jabatan Pengajian Am, Politeknik Sultan Azlan Shah, Behrang Stesen, 35950 Behrang, Perak, Malaysia
*Contact email: anisah_nasib.poli@1govuc.edu.my

Abstract

This study aims to investigate the determination of wage rate in Islamic leasing scheme of selected Malaysian Financial Institution in developing the economy of Muslims. This is a qualitative study which utilises three data methods of data collection namely observation, interview and documental evidences. The data has been descriptively analysed. The findings of the study proved that majority of the Islamic pawn centre in Malaysia used three main instruments, particularly, ar-rahnu, al-qard and al-wadi’ah yad dhamanah. Thus, the wage rate for keeping the goods is based on the principle of al-wadi’ah yad dhamanah. However, the rate varied between institutions. Findings of the study revealed that the collection of wage rate can be implemented provided that the rate did not exceed one percent of every RM 100 of the marhun value. As a conclusion, the Islamic leasing or pawn services in Malaysia has significantly assisted in developing economy of Malaysian society and has been getting supports from Muslims as well as non-Muslims due to the reasonable wage rate. Among the implications of this research was the involved authority need to create special Act relating to Islamic leasing scheme because to dateis only based on the guidelines of Islamic Leasing Activities (Ar-Rahnu) issued by the Malaysian Co-operative Commission (SKM).