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I.        Political Factors

No specific tax is collected on property owner such as land. Nonetheless, singular state governments require a land assess called as “quit rent" or cukai tanah which is collectible yearly to state authorities. The rate differs with land categories and size. Basically, the annual quit rent liability is under RM100 on a private property.

The National Land Code (NLC) section 115 of the states that if the landowner did not start working on its ground duration of 12 months and completing work it is within 3 years then it is be something wrong. Additionally, section 116 of NLC also states that if the owner of the building land failed to build the building as permitted by law on its ground 2 years then it has been done error. Likewise, the NLC section 117 follows states that if the landowner the industry fails to commence work properly within 3 years, he has done an error.

All the faults is disclosed by sections 115, 116 and 117 is a condition that has been set regardless of the category of land according to the law. If that condition carried out the proceedings of the seizure of land can be taken against landowners.

II.        Economic Factors

Due to the unstable currency in Malaysia such as when the exchange rate of the foreign currency rises with respect to the domestic currency, more number of units of domestic currency are required for one unit of the foreign currency, meaning thereby that the country has to pay more for its imports such as raw material, which will disturb its balance of payments situation & reduce its foreign exchange reserves. This has impact on the entire economy. All imports could affected because the country has to pay more for raw material.

According to Malaysian budget 2019, the minimum wages for 2019 is RM 1100 per month for Peninsular Malaysia, Sabah and Sarawak. Meanwhile, the minimum wages 2018 is RM 1000 per month for Peninsular Malaysia. But for Sabah and Sarawak is around RM 800 to RM 920 per month. It shows an increment in minimum wages. Directly, it will increase the labour cost. Means that the firm pay more to produce one product. . Therefore, the cost of production also increase

III.        Social  Factors

An open of land for the use of agriculture, building such as factory and housing, and industry for production can affect the population growth rate. The population of growth rate become higher due to the emigration. The emigration of people to new place because many job opportunities offered based on new farm and factories open.

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Explanation and analysis of the issue

There are 2 issues which need to thoroughly discuss in this case study. There are;

1)    The temporal status of intellectual property, since the protection period is not perpetual.                                                                                                                This is because a patent has a life span of 20 years.

2)     What to Waqf? Either the intellectual property itself or just the benefits or usufructs from the intellectual property.

As for the first issue, there is distinct different in term of definition, and period between Intellectual property and Waqf. According to World Intellectual Property Organization (WIPO), it refers to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce. Intellectual property such as patent, trademark, and copyright is an item which protected by law. As for the definition of patent, according to Intellectual Property Corporation of Malaysia (MyIPO), it is an exclusive right granted for an invention, which is a product or process that provides a new way of doing something, or offers a technical solution to a problem. According to MyIPO, the duration of patent is protected for the period of 20 years from the date of filing.

As for the Waqf, it can be defined as dedicating a certain property to Allah SWT and devoting it for a religious cause for the benefit of human beings. As a benevolence infrastructure, one of the waqf characteristics is the permanent dedication. The dedication of Waqf property must be permanent and waqif himself must divot such property and gave it for the purpose recognized by Muslim law, like religious, pious or charitable. If the waqf is made for limited period, it won’t be a valid as there should be no condition or contingent attached otherwise it will become invalid. This is because the motive behind the waqf is always religious.

There are several arguments on what make up the perpetuity of waqf. Firstly, the property made by the waqf must be appropriate for perpetuity by its legal status, and by its nature. Secondly, the will of the waqf’s founder must be related. Lastly, the objective of waqf must be perpetual. Waqf in perpetuity means that waqf cannot be sold or transacted and it should remain as waqf.

Although, the Maliki School accept that waqf can be brought by the will of founder, in which mean the Maliki strongly agrees for the coexistence in Awqaf of temporality and perpetuity. For example, the issue of leasehold property which is considered as a waqf asset in Singapore, which can be considered as a wasting asset. This is because a lease with a useful life of less than 50 years is called a ‘wasting asset’ which mean a property or security that has limited life and loses value over its life. This issue is related with Intellectual Property because It has a life span. Once the legal life span is expired which is 20 years, the Intellectual Property become a public domain. Hence as such, the benefits from Intellectual Property during the legal life span can be considered as a waqf although some of the Intellectual Property like patents has limited time period in its economic life.

Khaf (1998) declared that the sunnah has recognized several form in waqf which are temporal like horse or sword. This inferred to us that the temporal waqf is possible whether the asset is temporal in nature or the period of nature is temporal as assigned by the founder. What is important is that the asset that is to be waqf should be substantial and able to benefit the community.

Shamsiah A.K (2010) in her research stated that by allowing temporal, the type and class of waqf asset can be enlarged substantially. In her research, she pointed out that many religious institutions such as madrasah and mosque in Singapore have appealed to the community to donate assets like computers, furniture, and so on. However, the assets are not recognized as waqf since the definition of waqf is perpetual and it does not fit in the description of a waqf. By allowing temporal, this type of assets can be recognizable as a waqf.

In conclusion, intellectual property can be a good source for waqf. This is because numerous universities in the world especially in Malaysia produce Intellectual Property in all sort of areas. Although intellectual property limited by its economic life especially for patents, It is important as a source of waqf as it benefit to the community.

As for the second issue which is what to waqf, either the intellectual property itself or just the benefits from the intellectual property. There are certain thing that need to be highlighted out before considering in what to waqf. Firstly, we have to consider the opinion of Jumhur ulama or Islamic scholars. They are at the opinion that the intellectual property can be regarded as property as it can be sold, transferable, and so on, then the exclusive right of ownership or more clearly the commercial value puts it on an equal property basis. This requires an in-depth study and scholar agreement. Like the need to diversify the source of waqf, so is the need to broaden the opportunity of a waqf to all societies.

Secondly, there are 2 categories of waqf namely waqf Khayri and Waqf ahli. Waqf Khayri or also known as public endowment occurs when beneficiaries of the usufruct consist of ongoing charitable concerns such as needy, mosques and so on which aim to achieve wellbeing for members of the Muslim ummah at large. As for waqf ahli or family endowment occurs when the beneficiaries of the usufruct can be the waqif himself or certain people designated.

Besides, There are four essential criteria for a donation to qualify as Waqf. Firstly, the intention or declaration, followed by the donor, the property or any tangible or intangible asset given as waqf and lastly the beneficiary.

The majority scholars of Maliki, Syafie and Hambali are in opinions that the intellectual property on that particular invention and beneficial inventions is included in treasured property as it may be used by Syarak (Islamic law).

As of now, there are some Intellectual Property waqf which have been established but it is only for copyright, which involve books. It was created by Maulana abdur Rahim, a well know Islamic scholar in Bangladesh. Besides, he also has a printing press, and a building of its own.

Hence, we can conclude that Fatwa Council of Wilayah Persekutuan has issued fatwa that it is permissible to waqf the intellectual property. This is because, the act of waqf can significantly contributed to the development of Islamic community socio-economic to the better standards. However, the management of waqf involved must draw up an endowment that would suggest the property is not misused and wasted. Furthermore, the permissibility of intellectual property as a waqf can surely benefits the Muslim community.

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There are two different perspective about ujrah in PTPTN that is from The Special Muzakarah of the National Council for Fatwa Committee on Islamic Religious Affairs and international scholars. The Special Muzakarah of the National Council for Fatwa Committee on Islamic Religious Affairs held on 28 July 2008 discussed the Study on the Implementation of PTPTN Education Financing Based on Ju'alah Contract. Muzakarah has decided that agree with PTPTN's service charge to students on the concept of wages (ujrah) at reasonable rates and not burdensome students. The PTPTN can charge compensation (ta'widh) to students who have earned a fixed and capable job of financial aspect but intentionally refuse to repay PTPTN financing. For students who have no permanent and incompetent work from the financial aspect are not compensated. The PTPTN party shall provide a rebate (ibra ') to students who successfully settle financing earlier than the expiration of the agreement; and agree that PTPTN funding based on the concept of wages is applied to all categories of students at all levels of study and apply to all students irrespective of religion and race.

Hence, even though this counting method looks cheap and good, and has been confirmed by the Fatwa Committee of Malaysia, this way of counting remains unsuccessful in penetrating the legal standards decided by international scholars. This is because the way it counts is still the same as the previous riba counting method. On the back of a wage charge. Previously it was pledged to the loan amount, in the latest ujrah concept also pledged to the loan amount. Just recollection, in Islamic law, lenders either individuals, private financial institutions or governments, can not impose any financial charges on borrowers, especially from the type of percentage pledged to the amount of lending. Changed with the change in the amount of lend. However, the calculation method adopted by the new PTPTN 'ujrah' is still backed up to the amount or value of the loan. In addition to the basis of the understanding of nas, international scholars prohibit it from avoiding this wage charge as a trick on riba (ribawiyah trick) which originally charged the loan as a time value of money. Because of the conceptual and economic point of view, both types of charge and wages are the same. The strongest exit is not take the amount of the loan as a backup to calculate the wage. According to the decision of the International Fiqh Council and other authorized Shariah councils without any particular interest in any company and financial institution worldwide, the only charge charged to the borrower is the actual cost borne out from the lending business only. It has nothing to do with the value lending.

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For the further explanation and analysis in this case study, we use PEST which is Political factor, economic factor, social factor and technology to explain the issues.

i. Political factor
The government play the important role in political factor which is when the changes of leadership occur, all of the old leadership law also will be change. As we noticed for example, the changes of government of our country from the 6th  prime minister to the 7th prime minister, they have change the law of tax from Goods and Services Tax (GST) to Sales and Services Tax (SST). The change of this tax have increases the users of credit card because they have use the credit cards for their purchases in daily life. Furthermore as they know they will no charge as GST before.

ii. Economic factor
In this analysis factor, we can know that many netizens didn’t know about the credit card. But after they have educated by advertisements or other people influence they have started to use or subscribe for credit card for their daily or personal purchases. So that, the economic factor have increased and give the positive impact to our economic. Besides that, credit card also gives negative impacts to the country. Which means, many youth using credit card have known about riba in credit card, so that they have stopped using it because riba is prohibited in Islam for Muslim.

iii. Social factor
For social factor analysis, the increasing of the credit card users because of the influence of other people for youth. This is because, in this era, many youth users have started using credit card to purchase their necessary from their studies age. Therefore, the peers influence have occurred the credit card users towards bankruptcy. This problem also occurred because the teenagers do not know about the content of riba in their credit card as riba prohibited in Islam.

iv. Technology
Nowadays, the increasing of technology have be the big factors towards credit    card    users to use the credit card. It is because the high technology have made the credit card users feel that they were live in the modern era.

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As a Muslim we need fulfill the Shari’ah requirements. Therefore, obtain a financial plan through the provision of Takaful. Where, Takaful is better and suitable for Muslims compared to conventional insurance. As be known Takaful also includes the principles of Islam and some conventional policies are commercial products. However, many still consider that Takaful is the same as conventional insurance. Therefore, we should know and take a look at how to differentiate both these finance finances and choose the best for our investments.

People often compare products produced by Takaful and conventional insurance from various aspects. Firstly is premium and donation. There is a difference in how premiums and donations are used with this type of policy. For example, with a life Takaful plan, contributions are usually divided into two accounts. The first is a Special Account of the Participant where payment and benefits are obtained and the second is a Participant Account for savings and investment funds. This is the same as the conventional insurance policy on investment where some of your premiums go towards investment and the rest for coverage and other charges. However, conventional insurance policies in life, impressions and endowments usually place pre-eminence on participants towards protection, commissions or administrative charges have been rejected.

Moreover the relatively common aspect of Takaful and conventional insurance is the rate of the plan offered by them. People do not necessarily be cheaper than others, but in terms of additional risk premiums, Takaful may be better in terms of cost. This is because Takaful fund rates are usually set and people who are considered to carry additional risks are not usually charged more, except in severe situations that will cause losses to the entire fund. For example, with a medical Takaful someone who has severe health problems may be required to increase their contribution accordingly. Conventional insurance will impose more risk where there is a risk.

The discussion on whether conventional insurance is in accordance with the Shari’ah have complex yet the broadly acknowledged view is that traditional protection is differentiating to Takaful. The major applied and operational ideal models are sufficient to characterize such difference.

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In the al-Awfar product, BIMB has used the Mudharabah contract as an agreement. Whereas SSP had previously used the Wadi'ah contract. According to Wadi'ah contract the holder cannot use the money entrusted by the fund issuer involved in any transaction. Through the SSP money deposited by the user to BSN has been used by the bank for investment purposes.

According to Fuad (2010) through SSP, BSN has used depositors' funds in SSP for investment purposes and mixing SSP depositors with deep depositors other products. The SSP is under two conditions, first, Wadi'ah contract is switched to contract Wadi'ah yad Dhamanah and secondly, the use of deposits in SSP together with deposits in other contracts in managing funds (Arif, J.M, 2008).

The previous SSP can be classified as Wadi'ah yad Dhamanah contract because through the SSP of depositors will deposit money into the bank and the bank will using depositors' money with the purpose of investment. This situation is timely with contract Wadi'ah yad Dhamanah where the bank is a guarantor to depositor deposit money. Indirectly, the situation can be is classified as a Qard contract which means a loan. Every money deposited into the bank is a loan to bank.

The scholars also agreed that the contract Wadi'ah yad Dhamanah intends to lend to banks through depositors. According to Al-Qardawi (1998) in Wadi'ah yad Dhamanah contract banking used showing relationship between bank and depositor in Wadi'ah account is a relationship of debtors and creditors (Al-Qardawi, Y., 1998). International Fiqh Academy of the Organization of Islamic Conference (OIC) (1998) 9th session discuss savings in accounts that can be withdrawn at any time regardless of whether Islamic banks or conventional banks are considered as loans to banks.

Therefore, the bank as the depositor is responsible as a guarantor to the savings and responsible for the refund upon request by depositors. Al-Zuhaily (2006) stated the money placed in depository depositors and investment certificates are regarded as al-Qard (debt) and not Wadi'ah contract as some of the fuqaha points out. This is because if it is considered savings then the bank can not use savings as capital as in the Wadi'ah contract stating that deposit holders are only acting as guardian or trustee not as an asset manager (Al ??? Zuhayli, W., 2006)

Based on the arguments discussed and agreed upon by the above scholars, shows that through SSP, the bank uses savings depositors. Thus, it indirectly changed the contract of Wadi'ah to contract Wadi'ah yad Dhamanah. Scholars unanimously argue that when the concept of Wadi'ah yad Dhamanah used in banking products then it should be considered as al-Qard (loan) from depositors to banks.

However, BSN has made renewal in SSP contracts ie using the Mudharabah contract. In the Al-Awfar and SSP products, gift and lucky draws are things that are often disputed by the public for fear of being involved in gambling that is banned by Islam. However, gift or rewards in this product is not gambling because it uses the Mudharabah contract which is clear between the bank and the depositor as it is in the document akad. If there is profit in the use of the capital provided by the customer it will be split between banks and customers based on sharing ratio profits that have been agreed upon earlier.

Lucky Draw is an added incentive to encourage depositors save or invest in a bank. Prizes awarded to depositors lucky is the money provided by the bank and any depositors who did not get it, they would not lose savings or investment money they even benefit if they exist. Therefore the transaction is not included in the category of al-Maisir. Lucky draw according to Islam is to be of legal origin. However, the mistake is happening in Malaysian society today because assuming that at Normally this lucky draw is contrary to Shariah such as draws Magnum, 4D and others. The public perception of today is about extracts lucky has eliminated the original law of extract which must be in view the majority of scholars.

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SWOT ANALYSIS (TAKAFUL)

1. Strengths

Under takaful the up-front costs are minimised. Business can be transacted immediately. In this way, risk is capped and costs become predictable, whereas under the conventional system, the operator has to invest in software licences, hardware, and expensive IT skills. He may have to wait and hope for a number of years while the system is prepared for use. Moreover, takaful are the transparent charging of fees and commissions and how these features would assist a Shari’ah Board to decide if a takaful scheme is really operating in a fair, Shariah-compliant way in handling deductions from its participants’ contributions. The ability to hold a separate tabarru fund for each class or sub- class of business and the inherent ability to manage risk in real time is regarded as a big advantage.

The principles of fairness and sharing each other’s burden will undoubtedly extend protection to the less fortunate members of the community. In the takaful model, surpluses can be use for zakat and funds can be channelled into projects which are for the common good, such as a new school or hospital. Based on the principles of fairness, transparency, simplicity and sharing the burden, takaful appeals to the very greatness of the Human Spirit. On the basis of this ethical dimension, takaful will succeed, because it is bound to succeed. The takaful business has an explicit ethical structure which can be marketed to both Muslims and non-Muslims. The dramatic rise in the demand for takaful insurance can be attributed to this ethical nature of the product.

Takaful practices are free from the elements of riba and other prohibited elements and are evolved around the elements of mudarabah, tabarru, and other Shari’ah- justified elements. Conventional insurance may involve riba and some other elements which may not be justified by Shari’ah principles.  Although both conventional and takaful businesses generate profits for the shareholders, in takaful business the expenses paid to the shareholders are explicitly transparent which in conventional insurance this is not necessarily the case.

2. Weaknesses

The lack of distribution channels for syariah-based insurance products and international Islamic reinsurers remained the main challenges facing the takaful industry in the Asean region including Malaysia. To further enhance the penetration rate of takaful or Islamic-based products in the region, including Malaysia, conventional insurers and takaful operators should form strategic alliances which will benefit both parties. On retakaful, it was difficult for takaful operators to have a 100% retakaful arrangement, as there were only a few international syariah-based reinsurers in the region. the relevant authorities, takaful operators and reinsurers get together to discuss the problem as one could not stand by the concept of dharurah (emergency) forever.

Takaful industry is growing fast and fast recently, but there is always shortage of tradable shariah-compliant assets in the market. The weakness faced this factor of shortage of shariah compliant assets is lack of investment or shortage of investment. Main target market for Takaful is the low-income population especially in rural areas, the middle class and the small and medium-sized businesses. Takaful companies should activate their distribution channels in proper way and also it’s more importation to develop their ways of distribution, because distribution channel is the main factor for every industry.

There are many different models that are using and practiced, So that every nation has its own model of Takaful. In addition, the issue based on source of capital, which is used is also big issue among the scholars whether it is necessary for Takaful operator to provide initial capital is a shariah compliant. Actually these severe issues still exist, and still there is no actual agreement among scholars even among Takaful industries.

3. Opportunities

Takaful insurance comprises general insurance, as well as life, medical and health, accident and education plans. General takaful accounts for the majority of business in the Malaysia markets, with property and accident insurance making up approximately half the written business.

Life takaful penetration, at present, lags far behind general and health takaful, as Muslims tend to have greater inhibitions when it comes to life insurance. With the development of innovative family takaful products and the increasing education of Muslims as to why family takaful is Shariah compliant, it is reasonable to assume that life takaful will grow substantially.

4. Threats
The potential for takaful is beyond question. But there are many hurdles to overcome if this market is to realise its potential. Human resources pose a major obstacle to growth, as the market is facing a severe shortage of qualified staff who understand both technical insurance principles and have an adequate awareness of Shariah  nance.

One of the biggest threats is creating customer awareness. Many Muslims live under the misconception that insurance is contrary to the principles of Islam, particularly with regard to life insurance. People have to be made aware that takaful provides an acceptable religiously validated solution. Similarly, non-Muslims need to be made aware of why takaful is ethical.

Countries where takaful is new also need to set out clear principles on how takaful business should be taxed, and to create a regulatory regime that does not treat takaful less favourably than conventional insurance. The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has created a standard that is the default accounting standard for takaful businesses in some Middle East countries.

The limited availability of short-term non-equity  financial instruments such as sukuk and Shariah-compliant money market instruments equivalent to treasury bills represent a further challenge for takaful companies, making managing their investment portfolio more challenging than for conventional insurers who can simply invest in bonds and cash assets.

Takaful companies that grow rapidly, as has been seen in Malaysia, face the challenge of ensuring that the systems that they have in place can cope with such rapid growth. Along with these challenges, takaful providers must enhance their product innovation and continue to offer a high level of customer service. They must be able to understand evolving customer and market-specific needs and be willing to renew or re-engineer product design and consumer bene t packages, as well as expand customer reach across various distribution channels.