SESRIC publishes study on reducing poverty with waqf and Islamic microfinance

Source: SESRIC.

Integration of Waqf and Islamic Microfinance for Poverty Reduction: Case Studies of Malaysia, Indonesia and Bangladesh, edited by Professor Savas Alpay, Director General of the Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC), and Mohamed Aslam Haneef, Professor at the International Islamic University of Malaysia (IIUM), presents the outcome of a two-year research collaboration between SESRIC and the Centre for Islamic Economics at IIUM. 

The research project covered three Organisation of Islamic Cooperation (OIC) countries, Malaysia, Indonesia and Bangladesh, and aims to develop an integrated waqf-based Islamic microfinance model to optimise the use of combined resources of waqf and Islamic microfinance institutions in OIC countries. It is anticipated that such an optimisation will ultimately enhance the effectiveness of IMF and waqf institutions in addressing the socioeconomic needs of the society, particularly through effective poverty alleviation programmes.

The report consists of four main sections, starting with a brief overview of poverty in OIC countries, poverty alleviation programmes in Malaysia, Indonesia and Bangladesh and then discussing the potential of waqf as another viable source for financing microfinance institutions in these three countries. 

Section two presents the Integrated Waqf-based Islamic Microfinance (IWIM) model, which comprises six components, waqf, Islamic microfinance, human resources, takaful, project financing and poverty alleviation, plus relevant hypotheses. In order to test the hypotheses of the IWIM model in the three countries, the next section discusses research methodology while the last section focuses on the empirical findings and policy recommendations.

The conceptual IWIM model treats the waqf institution as the “funding agency” and the Islamic microfinance institution as the “implementing agency” that is offering microfinance services together with takaful services and financing human resource development programmes. A fifth component, project financing, to which is be provided by the Islamic microfinance institution, was added to the model. 

According to the report, there is strong indication that the IWIM model can be a viable alternative model for poverty alleviation. The report reaffirms that microfinance is an important institution in the fight against poverty and that Islamic microfinance provides additional value in the context of riba-free financing. Furthermore, the report says that the IWIM model can successfully help microfinance institutions to overcome two major challenges, the provision of financing at lower cost and the facilitation of human resource development programmes.

View the online version here.

Muslim Friendly Hospitality Services standard is voluntary but could help businesses succeed

Islamic tourism is often thought to be about providing halal food, but Malaysia has noted that it also includes the full suite of hospitality services that comply with shari'ah law. This encompasses hotels, resorts, restaurants and airlines that offer food with halal certificates, but also do not serve alcoholic beverages, prayer facilities, provide separate wellness facilities for women, and a generally Muslim-friendly environment.

The Muslim Friendly Hospitality Services (MFHS) standard is Malaysia’s first standard dedicated for the Islamic tourism sector. Initiated and led by International Institute for Halal Research & Training (INHART) of the International Islamic University Malaysia (IIUM), the original submission to develop the standard was made in December 2012 to the Department of Standards Malaysia (DSM). This was followed by the appointment of SIRIM as the standard’s secretariat by DSM and the formation of a draft committee by the Technical Committee (TC) on Management System from Islamic Perspectives.

The draft, released as Draft Malaysian Standard : Muslim Friendly Hospitality Services – Requirements, is available for public feedback from 1 August to 30 September 2014. Find out how to participate here.

An industry review was held on 14 August and reported on 15 August on the ITC website. According to the report, Zulkifly Said, Director General of the ITC, said that implementation of the standard will be on a voluntary basis on the part of industry players, but pointed out that the guidelines will be a powerful marketing tool for businesses.

Seminar on Islamic Advertising to be held this September in Malaysia

The Department of Communication, Kulliyyah of Islamic Revealed Knowledge and Human Sciences, International Islamic University Malaysia (IIUM), in collaboration with the Centre for Islamisation (CENTRIS), IIUM, is organising the International Seminar on Islamic Advertising 2014 (ISIA2014) this September. 

Malaysia's position as the global halal hub, the growing Muslim populace and the existence of unethical advertisements have spurred the proposed discussions on Islamic advertising. ISIA2014 aims to bring together academicians, advertisers, persons from advertising associations, regulators, media persons, students and those who are interested in Islamic advertising; in theory and in practice, for discussions on the theme, 'Advertising with a Conscience’. 

The organisers expect the seminar to outline the issues of advertising in the Muslim world; conclude with recommendations regarding the Islamic perspective of advertising to regulatory authorities; and to lead to with a publication on advertising and Islam.

Academicians, advertisers and the advertising industry, media, and students are expected to attend. 

Dates: 26 to 27 September 2014 

Venue: Senate Hall, IIUM Gombak Campus

Cost: RM350 for students, RM500 for others; early bird discounts apply till 14 August.

Registration: A registration form can be requested from isia.comm2014@gmail.com or in person on the first seminar day.