However, this permissibility is only valid under the fulfillment of a few conditions such as there should be no interest (riba) involved, the trade or exchange must take place in the same sitting in which the business contract is formulated and the trade or exchange needs to be immediate and without delay.

Today, investment trends "Forex Online Trading" are rampant. Online forex trading is a trading currency or foreign currency with others that do not involve physical the trade, but only worth only one internet platform. Online forex trading included in futures trading, where there is no direct handover time of the transaction. In addition to this, the transaction process is no margin or collateral to be provided to investor’s online forex broker and short selling transaction system that became the hallmark of forex online trading causing sales practices without ownership rights. Because of these things, then raised an issue that is how the views of Islamic law against online forex trading among the individual, Islamic banking and other Islamic financial institution. The issue is about forex online is usually not allowed to individuals, but it is allowed to Islamic Banks and other Islamic financial institution. In Islam, making any such transaction or contract must be in compliance with Shariah to ensure that the transaction or contract made is legitimate in the Shariah of Islam.

Next, the other main issue is comparison between Islamic and conventional foreign exchange transaction. As we know, the conventional foreign exchange transaction has the element of riba, gharar and maisir. Therefore, Islamic foreign exchange transaction follows Shariah compliance while the conventional did not follow the Shariah compliance. So, the issue is to ascertain the permissibility of foreign exchange transaction from that perspective of Shariah. Some of the people tend to do foreign exchange in conventional institution even though they know there are prohibition elements in Shariah compliance. 

Firstly, Sukuk has a different underlying structure and provisions in comparison to conventional bonds and it is a challenge to evaluate its sustainability during the recent global financial crisis.  Due to the subprime crisis in the United States erupted around 2008, it resulted in global sukuk issuance declining by more than 50% and Malaysia was the hardest hit in that there was a marked deterioration in sukuk issuance to almost half when compared to 2007, followed by Gulf Cooperation Council (GCC).  The impact of the world financial crisis on the Sukuk market was not as great as what happened to conventional bonds. The fact is that Sukuk’srelative security has received increased scholarly attention due to certain core principles that have contributed to insulating it from global financial disasters.

Apart from that, the second issue is an intention of the investor is difficult to determine and it may also be subject to change due to changes in the environment and situation.  As most Islamic bonds issued by Malaysian companies today have been heavily structured using  bay’ la-inah and bay’ al-dayn contracts and therefore less acceptable to some Middle-eastern investors,  it can further frustrate attempts to attract the much need capital inflows especially middle eastern capital into the country when western sources are drying.  It is urgent to find out the necessary steps taken by Malaysian companies to do away with these controversies so that they can source the much capital from the Middle-eastern investors. The supply of Islamic bonds by Malaysian companies should now take heed of the tastes of Middle-East investors, namely their inclination for Al-Murabahah, Al-istisna’ and Al-ijarah mode of financing in which the elements of bay’ la-inah and bay’ al-dayn are relatively absent.

Besides that, the other main issue is the determinant of the firm in issuing Sukuk over conventional bond.  It is important to identify the determinants of firms in issuing Sukuk whether it is from firms’ internal initiatives or induced by external incentives. The variables under observation are capital investment, firm size, return on asset, and market to book ratio, past Sukuk issuance experience and past bonds issuance experience. By introducing the elements of leverage and tax incentives in the firms’ determinants to issue Sukuk over conventional bonds, more indicators are identified as factors attracting firms to participate in the Sukuk market.

Next, the main issues that always been discuss about Sukuk and Bonds is the perception that Sukuk may not be any safer than conventional bonds in terms of investor protection and the treatment of defaults.  It happen when Sukuk defaults had been scrutinised by the practitioners and academicians, concerns had been raised on the reliability of their structures and Shariahsupervision.  This situation will also tarnish the reputation of Malaysian capital market since Malaysia has been recognized as the hub for Islamic capital market in the world.  Despite the wide variance in ratings, the default rate for Malaysian Sukuk in 2009 was relatively low at 0.46 per cent (SC, 2010). For the period of 1997 – 2010, there are altogether 24 cases of Sukukdefault.  Of all cases, they were mainly structured based on Murabahah and BBA contracts – 12 on Murabahah, 11 BBA, and only one on Ijarah.

 

Less emphasis on social welfare obligations of the ummah

Nowadays, Islamic banks offer different financial services and has grown rapidly in Malaysia. They are unique because they are responsible for fulfilling the social and ethical role inherent in their character as Islamic institutions. First and foremost, Islamic banks are not necessarily profit-oriented but they are aimed at promoting Islamic norms and values as well as protect the needs of the Muslim community as a whole without degrading its commercial viability. 

However, there has been an issue of the Islamic bank which has less emphasis on the social welfare obligations of the ummah. Wahbah Al-Zuhayli, a prominent Syariah scholar, supports the socio-economic framework of Islam financial institution in his famous Al-Fiqh Al-Islami wa-Adillatuh, "The main goal of Islam financial institutions are not profits, but the confirmation of socio-economic social goals development and poverty reduction. With this, Islamic banks may need to be more sensitive to the needs community, promoting more social welfare programs and activities and also making more contributions to poor and needy. 

Islamic Banking needs to know more and accept the responsibility to contribute in example through zakat for widespread socio-economic goals to alleviate poverty, health improvement, better education and general social development especially in poor communities. This is for the collection and distribution of funds to the poor provision of generous loans (Qardul Hasan) to eligible individuals and regional investment distribution.

As Islamic banking is considered green, their activities had to be ‘commercial as opposed to predominantly socioeconomic’. Therefore, it would be expected that social welfare oriented activities of Islamic banks will increase as these institutions become more established.

        i.        AKAD (offer and acceptance) 

The sale transaction can be defined as the exchange of goods with other items. Other than that, it can also be known as a buying and selling process to exchange items with money. In Islamic trading is often referred to as al-Bai or exchange process. There are some conditions in order to make the sale and purchase transaction such as the buyer, the seller, the good, the price and akad (offer and acceptence). Akad is a contract built on the requirements of two or more parties will bring something effect of legislation. According to al-Jurjani, the contract is the bond act through bargaining process (ijab) and acceptance (qabul). Akad is the wishes of both parties that permissible by syara. From these definitions, we can conclude that akad is form when there is a meet of ijab and qabul. Ijab is the offer submitted by one party while qabul is the approval of the given agreement from the first party that offered. Then there is a transfer of property on an item from the seller to the buyer. 

 

Related to this topic which is the sale transaction through machine, it looks like there is no ijab and qabul in this transaction. It is because there is only a buyer and she/he need to do the transaction without facing the seller or it also known as self-service. For an example is self-scanning service at shopping mall. This service is to avoid been stuck in a queue for a long time due to the lack of open cashier counters. So, in this case there is an issue when the buyer did not meet the seller at the moment of transaction and it means that the akad is not existed. 

 

      ii.        GHARAR

The Arabic word Gharar is a fairly broad concept that literally means deceit, risk, fraud, uncertainty or hazard that might lead to destruction or loss. Gharar define uncertainty means the non-existence of contract subject matter. While Shafie scholars have described it as something this in its manner and its consequence is hidden. Gharar occurs in all sorts of transactions where the subject matter, the price or the two, are not determined and fixed in advance. 

 

Speculative activity in market now days, majority using vending machine for business. By using the vending machine can save time and easy to make a transaction for people but there are some issues or problems if some people using this vending machine specially for Muslim user. The issue is that when the deal is not self-dealing with the seller and if there are some issues with the buyer. The issue are:-

·         Buyer enters money into a vending machine and does not get the desired item.

·         Buyer gets the wrong thing during the transaction using the vending machine.

·         Buyer gets more thing while using vending machine of the payment fees.

 

iii. Maysir

The meaning of Maysir literally is gambling. On the other hand, Maysir or Qimar also give other meaning by obtaining something too easily. Maysir also define as gambling and also on any form of business activity where monetary gains are derived from mere chance, speculation or conjecture. The term of Maysir includes all kinds of gambling which is casino, poker, sports betting, lottery games and crane game machine. As noted earlier in the Quran, Allah (s.w.t) clearly prohibit gambling in surah Al-Bakarah, 2:219 and Al-Maidah, 5:93. Besides that, Maysir can be detected went it had three elements which is existence of property or material bets originating from both gambling parties, game used to determine the winner and the loser and lastly the winning party takes the property partly or wholly that becomes the bet, while the loser loses his property. 

Nowadays, a lot of activity that lead to Maysir without we realize. For example, the crane game machine that have in shopping mall. The issue that can we relates is:

1)    Before we want to play the crane game machine, firsts we have to change the money into token and the issues is using a token to play the crane game machine. It same as gambling.

2)     The problem is went we play the crane game machine, either we win or loss. By doing this way, we will lose a lot of money.

Problems : 

Malaysia is regarded as among the countries having the fastest growth of takaful at the international level. However, the consumer still tend to compared the takaful and conventional insurance end up choosing the conventional insurance rather than Takaful, mostly Muslim consumers.Takaful and conventional insurance are different in term of their nature and processes. Takaful is an   insurance system  which complies  with   Islamic regulation   while conventional  insurance  is  a  product designed   to give   protection  to  individuals   and businesses   against specified  contingencies,  created out of human needs for security and stability. Although essentially both Takaful and conventional life insurance serves the same purpose of providing coverage, there are major differences between the two as can be seen below: 

Intent 

Individual enters the agreement to contribute to a fund that can potentially help those experiencing the unfortunate situation. On the other hand, a conventional insurance policy is purchased as a personal financial security for an individual, and the insurance company is the risk bearer. 

Investment 

The conventional investment units of insurance will invest based on their assessment of what fits their profiles. However, Takaful investments will follow strict principles. Takaful cannot invest in anything that has elements of gambling, uncertainty or the practice of lending money at unreasonably high-interest rates. 

Returns 

If there is extra money because of low claim rates by insurers under Takaful, it will be distributed to participants. While the profits from investments will be distributed to both participants and shareholders. Takaful operators make money through performance fee or by sharing the surplus. But the total amount of payment from the surplus that Takaful operators get cannot exceed the amount that is paid to Takaful participants. However, under conventional insurance, extra money and profits belong to the shareholders of the insurance companies. 

Risk Distribution 

The conceptual difference between Takaful and conventional insurance is that risk in Takaful is not exchanged by way of contribution payments made to operator which means operator is not selling and participant is not buying any risk coverage. Operator is playing the role of fund manager on behalf of the participant. So operator is not undertaking risk, the risk is however, distributed among the participants who agreed to jointly assume the risk.mUnder conventional framework Insurance is a contract between two parties, whereby first party agrees to undertake the risk of other party in exchange of premium and the other party promises to pay fixed sum of money to the first party on the happening of uncertain event with in a specific duration. 

Social Solidarity/ Shared Responsibility 

Takaful, the Islamic alternative to conventional insurance is based on the idea of social solidarity, cooperation and joint indemnification of losses of the members. It is an agreement among a group of persons who agree to jointly share responsibility of loss or damage that may inflict upon any of them; out of the fund they donate collectively but in conventional setup loss is indemnified by the insurance company according to the terms and condition of the policy. Takaful insurance has grown not only as an innovative financial instrument, but also on religious consideration.The contract of takaful provides solidarity in respect of any tragedy in human life and loss to business or property. The Islamic model of insurance policy is based on the fundamental principle of mutual cooperation and solidarity, as ordained by Allah (SWT) mentioned to this effect in the Holy Quran.But for conventional insurance there is no any religious boundaries and the purpose of insurance is to protect risk-averse from suffering the full cost of those actions on the part of nature which affect them unfavorably. 

 Pursuant to the Property Sale Agreement the lands were sold to the investors at the purchase price of RM37,000,000.00 and the same land purchased by the investors vide property purchase agreement at the Sale Price of RM52,082,100.00. The plaintiff executed a legal charge over the said land and also caused its subsidiary MK Golf to execute a legal charge over the said MK Golf Land in favour of defendant as the agent and trustee for investors. On and before 28th February 1998 the plaintiff had defaulted in its obligations under the Property Sale Agreement. This led to issuance of  notice pursuant to the Property Sale Agreement from defendant to plaintiff to demand the payment of RM29,228,765.00 from plaintiff. The defendant then commenced foreclosure proceedings at the Shah Alam High to foreclose some of the lands. 

MK Golf Land was auctioned on 26th April 2011 for the sum RM23,619,600.00 and proceeds of the auction was paid towards the BBA to reduce the amount due and payable to the investors. In April 2012, liquidator accepted an offer from Ultimate Essence Sdn Bhd (the Purchaser) to purchase several Land including Lot 1391 and 1393. A sale and purchase agreement entered into by plaintiff and purchaser dated 19th April 2012. The sale of the said land completed on 18th July 2012 and the redemption sum was paid to defendant in the sum of RM12,758,792.37. 

By its letter dated 8th October 2012 the Liquidator sought from defendant a detailed account on how defendant had arrived at the figure of RM12,758,992.37. This letter responded by  defendant vide its letter dated 6th December 2012 whereby defendant had furnished a Statement of Account giving the particulars on how the sum of RM10,384,262.88 as Ta'widh from the month of January 2000 to June 2012 was arrived at. Although full sum was RM19,343,077.29 the defendant agreed to accept the sum of RM12,758,992.37 as redemption sum.The agreements executed the resolution pertaining to Ta'widh had not been made by the Shariah Advisory Council of Bank Negara Malaysia (SAC) defendant was not entitled to charge Ta'widh in the sum of RM10,384,262.88 in this case.The defendant also contended that it had the right to charge Ta'widh pursuant to Bank Negara's letter dated 10th December 1998. 

The issue from this case for the plaintiff was the defendant was not entitled to impose Ta'widh as the imposition of Ta'widh would offend the salient features of the BBA Facility. Ta'widh was introduced subsequent to the grant of the BBA Facility and the execution of the Agreements. The concept of Ta'widh was not applicable to the BBA Facility granted to the plaintiff as the same had been executed in 1994 when Ta'widh was yet to be introduced. 

Then, for the defendant  the agreements were silent on the issue of Ta'widh pursuant to the Bank Negara's Letter penalty could be imposed on new and existing financing except if the financing agreement had expressly provided not to impose penalty in event of default on the part of the borrower to settle the amount due and outstanding. It did not matter even if the provision with regard to Ta'widh was yet to be enforced at the time the agreements were executed by the plaintiff and the defendant, as the right to claim Ta'widh was implied in the contract. Ta'widh need be written or stated in the contract. 

 Besides, having understood the meaning of Ta'widh and conditions which Islamic Financial Institution can impose Ta'widh and late payment charges as discussed by the two experts, the next issue to be considered is whether the Islamic Financial Institution can impose Ta'widh when the contract is silent on it and when at the time parties negotiated and entered into the contract the concept of Ta'widh had not been introduced into the Islamic financial system of the country and whether the Islamic Financial Institution can impose Ta'widh and have it backdated for almost 12 years preceding the introduction of Ta'widh. 

The findings of this case is, it was not disputed that the defendant in this case had imposed and charged the plaintiff Ta'widh for the period from January 2000 to June 2012. It is also not disputed that at the time plaintiff and defendant entered into the BBA Facility, on 9th March 1994, the SAC had not introduced the concept of Ta'widh in the Islamic financial scheme of financing.It was only in its 4th meeting dated 14th February 1998 that the SAC had allowed Islamic financial Institution to charge Ta'widh on defaulters. A perusal of agreement also disclose that Ta'widh did not form part of express terms and conditions of agreements. The defendant informed the plaintiff prior to 6th December 2012 of its intention to impose Ta'widh and that the rate of 3% by way of Ta'widh was to be imposed on the plaintiff. Vide its letter dated 6th December 2012 the defendant caused the statement of account to be furnished to the liquidator providing the details of the calculation of Ta'widh in respect of the financing. The rate of the Ta'widh was stated as 3% per annum. 

2) The unethical issues in marketing that has happened were misrepresentation of goods, services, and company capabilities, price deception, price discrimination and others . There are several unethical issues we would like to focus on. And, most of them are practiced by local vendor itself. This things seems too common nowadays but it is a heay unethical in marketing and ads.

Malaysia is one of a country that has the fastest growth of Takaful at the international level. Takaful is a Shariah compliant insurance system which complies with Islamic Muamalat (transactions). This insurance has a different concept with conventional insurance which is prohibited from riba (interest), gharar (uncertainty), and maysir (gambling). Meanwhile, Conventional insurance is a product designed to give protection to individuals and businesses against specified contingencies, created out of human needs for security and stability. 

Although Takaful and Conventional have the same ideas and the same fundamental of roots which is to provide coverage and to protect consumers from any hazard and loss, but there are several differences between these two insurances. Its is include of product development, efficiency, consumers behaviour and perception, and policy applied. However, consumer still compared between Takaful and Conventional insurance. Generally, consumer tend to choose Conventional insurance rather than Takaful insurance even though they are Muslims.

Why consumer prefer to choose Conventional insurance instead of Takaful insurance?

Consumer tend to choose this conventional insurance because of several issues. The first issue is because of Takaful insurance is exposure to reputational risk which owing to the need for compliance with Shariah rules and principle, involves reputational risk as a result of failure in its systems and procedures for ensuring Shariah compliances. And the second issue is lack of consumer awareness in Takaful insurance which is because of the low penetration rate of takaful in the country. Consumer more focus to the value of protection, as they get commission from the Conventional insurance.

 

 

 

 

 

However, with the creation of cashless, has some issue that occurs to consumers. As we know, everyone is using electronic machine in their daily life but this convenience often get a question mark by its users. This recently get question by mostly Muslim about Bai As-Salam while using this transaction. The question that always occurs is whether every purchase that uses the electronic machine is valid or not. This question personally refer to the good and money for that every purchases because sometimes when people using this convenience they didn’t get goods in return but at the same times the money still get reduced in the account.  

Then, another issues is advantages on having cashless society. The advantages of using cashless is credit cards or debit cards are easy to use than cash. Debit card doesn’t need to have a lot of banknote while spending instead of cash. Not only that, calculating a lot of cash is also a problem because it allows for excessive or reduced money. Within that, using electronic transaction can avoids all these difficulties. Additionally, being cashless is useful when travelling. Its helps because debit card could help to convert the cash into aging currency directly and at the same time it is easy to make payment at anywhere. By using a credit cards or debit cards people can make payments in any currency around the world. Besides, that card also can get access on foreign currencies through cashier machines (ATMs) around the world and it can be avoided from robbery.

Next, despite the fact that the world is getting ahead there are also some other disadvantages when using less cash which is can lead to usury and debt. Usury happens when people using the debit card wrongly such as late payment of credit card which is can lead into interest. This is happen when the late payment is charged with high rate of interest and it’s become a usury. When there is a transaction involving usury it has fallen illegally. "In the case of Allah permits trading (trade) and forbids usury (Surah Al-Baqarah verse 275). Besides that, by using an electric machine will cause someone to debt in buying things. As most credit card users buy without thinking about their own spending limit and the loss of their purchases. Debt from the point of syarak according to the definition of Al-Qadhi Ibn' Arabic is the transfer of property (in exchange for or in conjunction with it), which one party is in cash while the second party is liable for its liability (with time set or not) ".