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The advent of capitalism and Malay dilemma in money economy: the foundation of business corporation and cooperative societies in colonial Malaya

This article discusses the Malay dilemma in facing the expansion of money economy in the Malay society in early 20th century Malaya. Historically, the advent of capitalism during this period instigated the growing importance of money economy. However, in the rural economy, the Malay commoners known...

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Main Author: A Rahman Tang Abdullah
Format: Article
Language:English
English
Published: Faculty of Social Sciences, Universitas Negeri Semarang 2021
Subjects:
HB1-3840 Economic theory. Demography
HG201-1496 Money
Online Access:https://eprints.ums.edu.my/id/eprint/31294/1/The%20advent%20of%20capitalism%20and%20Malay%20dilemma%20in%20money%20economy_%20the%20foundation%20of%20business%20corporation%20and%20cooperative%20societies%20in%20colonial%20Malaya.pdf
https://eprints.ums.edu.my/id/eprint/31294/5/The%20advent%20of%20capitalism%20and%20Malay%20dilemma%20in%20money%20economy_%20the%20foundation%20of%20business%20corporation%20and%20cooperative%20societies%20in%20colonial%20Malaya_ABSTRACT.pdf
https://eprints.ums.edu.my/id/eprint/31294/
https://journal.unnes.ac.id/nju/index.php/paramita/article/view/28926/pdf
http://dx.doi.org/10.15294/paramita.v31i1.28926
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spelling my.ums.eprints.312942021-11-30T01:20:18Z https://eprints.ums.edu.my/id/eprint/31294/ The advent of capitalism and Malay dilemma in money economy: the foundation of business corporation and cooperative societies in colonial Malaya A Rahman Tang Abdullah HB1-3840 Economic theory. Demography HG201-1496 Money This article discusses the Malay dilemma in facing the expansion of money economy in the Malay society in early 20th century Malaya. Historically, the advent of capitalism during this period instigated the growing importance of money economy. However, in the rural economy, the Malay commoners known as ‘rakyat’ were not widely exposed to money economy. The prevalence of money economy in the Malay society was limited to the Malay upper class of royal kinsmen and nobles because of their dominance over the surplus, notably found in the form of taxation imposed on the rakyat who were mostly peasants. This situation began to change in the beginning of the 20th century when credit facilities for agricultural activities became available for the Malay commoners that eventually paved the way for the rakyat to gradually venture into small businesses and be exposed to money economy. In order to address the problem related to indebtedness, there were initiatives to establish cooperative societies for rural credits. However, these initiatives were always overshadowed by the imposition of interests on the loans. This is because such interests were perceived as riba’ or usury, which were regarded as haram or impermissible in Islam. Nevertheless, based on historical circumstances, it can be argued that the establishment of cooperative societies was regarded as the more viable means than business ventures in incorporating the Malay peasant community into money economy. Faculty of Social Sciences, Universitas Negeri Semarang 2021 Article PeerReviewed text en https://eprints.ums.edu.my/id/eprint/31294/1/The%20advent%20of%20capitalism%20and%20Malay%20dilemma%20in%20money%20economy_%20the%20foundation%20of%20business%20corporation%20and%20cooperative%20societies%20in%20colonial%20Malaya.pdf text en https://eprints.ums.edu.my/id/eprint/31294/5/The%20advent%20of%20capitalism%20and%20Malay%20dilemma%20in%20money%20economy_%20the%20foundation%20of%20business%20corporation%20and%20cooperative%20societies%20in%20colonial%20Malaya_ABSTRACT.pdf A Rahman Tang Abdullah (2021) The advent of capitalism and Malay dilemma in money economy: the foundation of business corporation and cooperative societies in colonial Malaya. Paramita Historical Studies Journal, 31. pp. 33-44. ISSN 0854-0039 (P-ISSN) , 2407-5825 (E-ISSN) https://journal.unnes.ac.id/nju/index.php/paramita/article/view/28926/pdf http://dx.doi.org/10.15294/paramita.v31i1.28926
institution Universiti Malaysia Sabah
building UMS Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Sabah
content_source UMS Institutional Repository
url_provider http://eprints.ums.edu.my/
language English
English
topic HB1-3840 Economic theory. Demography
HG201-1496 Money
spellingShingle HB1-3840 Economic theory. Demography
HG201-1496 Money
A Rahman Tang Abdullah
The advent of capitalism and Malay dilemma in money economy: the foundation of business corporation and cooperative societies in colonial Malaya
description This article discusses the Malay dilemma in facing the expansion of money economy in the Malay society in early 20th century Malaya. Historically, the advent of capitalism during this period instigated the growing importance of money economy. However, in the rural economy, the Malay commoners known as ‘rakyat’ were not widely exposed to money economy. The prevalence of money economy in the Malay society was limited to the Malay upper class of royal kinsmen and nobles because of their dominance over the surplus, notably found in the form of taxation imposed on the rakyat who were mostly peasants. This situation began to change in the beginning of the 20th century when credit facilities for agricultural activities became available for the Malay commoners that eventually paved the way for the rakyat to gradually venture into small businesses and be exposed to money economy. In order to address the problem related to indebtedness, there were initiatives to establish cooperative societies for rural credits. However, these initiatives were always overshadowed by the imposition of interests on the loans. This is because such interests were perceived as riba’ or usury, which were regarded as haram or impermissible in Islam. Nevertheless, based on historical circumstances, it can be argued that the establishment of cooperative societies was regarded as the more viable means than business ventures in incorporating the Malay peasant community into money economy.
format Article
author A Rahman Tang Abdullah
author_facet A Rahman Tang Abdullah
author_sort A Rahman Tang Abdullah
title The advent of capitalism and Malay dilemma in money economy: the foundation of business corporation and cooperative societies in colonial Malaya
title_short The advent of capitalism and Malay dilemma in money economy: the foundation of business corporation and cooperative societies in colonial Malaya
title_full The advent of capitalism and Malay dilemma in money economy: the foundation of business corporation and cooperative societies in colonial Malaya
title_fullStr The advent of capitalism and Malay dilemma in money economy: the foundation of business corporation and cooperative societies in colonial Malaya
title_full_unstemmed The advent of capitalism and Malay dilemma in money economy: the foundation of business corporation and cooperative societies in colonial Malaya
title_sort advent of capitalism and malay dilemma in money economy: the foundation of business corporation and cooperative societies in colonial malaya
publisher Faculty of Social Sciences, Universitas Negeri Semarang
publishDate 2021
url https://eprints.ums.edu.my/id/eprint/31294/1/The%20advent%20of%20capitalism%20and%20Malay%20dilemma%20in%20money%20economy_%20the%20foundation%20of%20business%20corporation%20and%20cooperative%20societies%20in%20colonial%20Malaya.pdf
https://eprints.ums.edu.my/id/eprint/31294/5/The%20advent%20of%20capitalism%20and%20Malay%20dilemma%20in%20money%20economy_%20the%20foundation%20of%20business%20corporation%20and%20cooperative%20societies%20in%20colonial%20Malaya_ABSTRACT.pdf
https://eprints.ums.edu.my/id/eprint/31294/
https://journal.unnes.ac.id/nju/index.php/paramita/article/view/28926/pdf
http://dx.doi.org/10.15294/paramita.v31i1.28926
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score 13.211869

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