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Sustainable mechanisms of distributing financial assistance to Asnaf and B40 entrepreneurs in Malaysia: case study of Bank Kerjasama Rakyat Malaysia Berhad

The post COVID-19 pandemic has notably highlighted the adverse impacts on both the global and Malaysian economic landscape. This is particularly evident in Asnafgroups (zakat recipients) and individuals within the B40 category. Islamic financial institutions (IFIs) in Malaysia, more specifically, Ba...

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Main Authors: Wan Ramli, Wan Nurliza, Hassan, Rusni, Noordin, Nazrul Hazizi, Abdul Razak, Mohd Zamerey
Format: Article
Language:English
Published: IIUM Institute of Islamic Banking and Finance (IIiBF), 2024
Subjects:
HG3368 Islamic Banking and Finance
Online Access:http://irep.iium.edu.my/115804/1/115804_Sustainable%20Mechanisms%20of%20Distributing.pdf
http://irep.iium.edu.my/115804/
https://journals.iium.edu.my/jisf/index.php/iiibf/article/view/23/19
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spelling my.iium.irep.1158042024-11-12T08:43:18Z http://irep.iium.edu.my/115804/ Sustainable mechanisms of distributing financial assistance to Asnaf and B40 entrepreneurs in Malaysia: case study of Bank Kerjasama Rakyat Malaysia Berhad Wan Ramli, Wan Nurliza Hassan, Rusni Noordin, Nazrul Hazizi Abdul Razak, Mohd Zamerey HG3368 Islamic Banking and Finance The post COVID-19 pandemic has notably highlighted the adverse impacts on both the global and Malaysian economic landscape. This is particularly evident in Asnafgroups (zakat recipients) and individuals within the B40 category. Islamic financial institutions (IFIs) in Malaysia, more specifically, Bank Kerjasama Rakyat Malaysia Berhad, or Bank Rakyat, as a full-fledged Islamic Cooperative Bank, has played a pivotal role in providing financial aid to these vulnerable groups through zakat assistance across a spectrum of initiatives and programs. This study aims to explore Bank Rakyat’s initiatives, specifically its sustainable entrepreneur's program, namely “RAKYATpreneur” and “UNIpreneur”. Employing a qualitative approach, it reviews relevant literature on Islamic microfinance and analyses the effectiveness of the RAKYATpreneur and UNIpreneur programs. The study focuses on these initiatives as a key objective of Islamic banks, seeking to make a positive contribution to both society and economic development through the effective distribution of zakatfor sustainability in the long run. Furthermore, this research provides some recommendations to revitalise Islamic social finance products by transforming the zakat mechanism from consumptive to productive distribution, thereby unlocking its full potential. It also proposes a potential structure using Qardcontract for microfinancing purposefor ensuring sustained business cash flow for continuous feasibility. IIUM Institute of Islamic Banking and Finance (IIiBF), 2024-06-30 Article PeerReviewed application/pdf en http://irep.iium.edu.my/115804/1/115804_Sustainable%20Mechanisms%20of%20Distributing.pdf Wan Ramli, Wan Nurliza and Hassan, Rusni and Noordin, Nazrul Hazizi and Abdul Razak, Mohd Zamerey (2024) Sustainable mechanisms of distributing financial assistance to Asnaf and B40 entrepreneurs in Malaysia: case study of Bank Kerjasama Rakyat Malaysia Berhad. Journal of Islamic Social Finance (JISF), 2 (1). pp. 26-38. E-ISSN 3009-0687 https://journals.iium.edu.my/jisf/index.php/iiibf/article/view/23/19 10.31436/jislamicsocfin.v2i1
institution Universiti Islam Antarabangsa Malaysia
building IIUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider International Islamic University Malaysia
content_source IIUM Repository (IREP)
url_provider http://irep.iium.edu.my/
language English
topic HG3368 Islamic Banking and Finance
spellingShingle HG3368 Islamic Banking and Finance
Wan Ramli, Wan Nurliza
Hassan, Rusni
Noordin, Nazrul Hazizi
Abdul Razak, Mohd Zamerey
Sustainable mechanisms of distributing financial assistance to Asnaf and B40 entrepreneurs in Malaysia: case study of Bank Kerjasama Rakyat Malaysia Berhad
description The post COVID-19 pandemic has notably highlighted the adverse impacts on both the global and Malaysian economic landscape. This is particularly evident in Asnafgroups (zakat recipients) and individuals within the B40 category. Islamic financial institutions (IFIs) in Malaysia, more specifically, Bank Kerjasama Rakyat Malaysia Berhad, or Bank Rakyat, as a full-fledged Islamic Cooperative Bank, has played a pivotal role in providing financial aid to these vulnerable groups through zakat assistance across a spectrum of initiatives and programs. This study aims to explore Bank Rakyat’s initiatives, specifically its sustainable entrepreneur's program, namely “RAKYATpreneur” and “UNIpreneur”. Employing a qualitative approach, it reviews relevant literature on Islamic microfinance and analyses the effectiveness of the RAKYATpreneur and UNIpreneur programs. The study focuses on these initiatives as a key objective of Islamic banks, seeking to make a positive contribution to both society and economic development through the effective distribution of zakatfor sustainability in the long run. Furthermore, this research provides some recommendations to revitalise Islamic social finance products by transforming the zakat mechanism from consumptive to productive distribution, thereby unlocking its full potential. It also proposes a potential structure using Qardcontract for microfinancing purposefor ensuring sustained business cash flow for continuous feasibility.
format Article
author Wan Ramli, Wan Nurliza
Hassan, Rusni
Noordin, Nazrul Hazizi
Abdul Razak, Mohd Zamerey
author_facet Wan Ramli, Wan Nurliza
Hassan, Rusni
Noordin, Nazrul Hazizi
Abdul Razak, Mohd Zamerey
author_sort Wan Ramli, Wan Nurliza
title Sustainable mechanisms of distributing financial assistance to Asnaf and B40 entrepreneurs in Malaysia: case study of Bank Kerjasama Rakyat Malaysia Berhad
title_short Sustainable mechanisms of distributing financial assistance to Asnaf and B40 entrepreneurs in Malaysia: case study of Bank Kerjasama Rakyat Malaysia Berhad
title_full Sustainable mechanisms of distributing financial assistance to Asnaf and B40 entrepreneurs in Malaysia: case study of Bank Kerjasama Rakyat Malaysia Berhad
title_fullStr Sustainable mechanisms of distributing financial assistance to Asnaf and B40 entrepreneurs in Malaysia: case study of Bank Kerjasama Rakyat Malaysia Berhad
title_full_unstemmed Sustainable mechanisms of distributing financial assistance to Asnaf and B40 entrepreneurs in Malaysia: case study of Bank Kerjasama Rakyat Malaysia Berhad
title_sort sustainable mechanisms of distributing financial assistance to asnaf and b40 entrepreneurs in malaysia: case study of bank kerjasama rakyat malaysia berhad
publisher IIUM Institute of Islamic Banking and Finance (IIiBF),
publishDate 2024
url http://irep.iium.edu.my/115804/1/115804_Sustainable%20Mechanisms%20of%20Distributing.pdf
http://irep.iium.edu.my/115804/
https://journals.iium.edu.my/jisf/index.php/iiibf/article/view/23/19
_version_ 1816129645580386304
score 13.223943

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