To avoid Riba in Credit Cards, the credit cards need to be Shariah compliant and free from any activities that are deemed as unlawful in Islam. The main differences between Islamic credit cards and conventional credit cards are the prohibition of gharar and riba. Gharar is overcharging, while riba is interest. There are no compound charges as overcharging is also prohibited under Shariah law.

An Islamic credit card would also have a filtering system to ensure that the credit card will only be utilised for halal transactions. It simply means that an Islamic credit card cannot be used to purchase alcohol, gambling or for other activities and purchases that are not permissible in Islam. In the event that the card is used for such purposes, the card issuer will not allow the transaction to go through.

2. No Interest

Any interest or riba is strictly prohibited under the Shariah law, therefore the service provided by credit cards cannot involve any interest. It should also be noted that the prohibition of interest works both ways, which means a Muslim cannot pay for interest and cannot receive interest. Therefore, what Islamic banks do is provide Islamic credit cards by charging for their service, which is known as the ‘profit charge’, and only charged if there is an outstanding amount that is not paid within the grace period. The profit charge is usually calculated on a daily basis at 13.5% to 18% per annum. The profit charge is based on a tiered system, which means if you’d like to enjoy a lower rate for your outstanding balance, you’ll have to make sure you are consistent with your repayments. This is because missing a payment for your outstanding balance will cause the banks to increase your profit rate.

Cardholders generally needs to make a minimum monthly repayment of 5% on their credit card bills (or a minimum of RM50 – depending on the bank) by the due date of each month. Failure to make the minimum monthly repayment will not only make the profit rate charged on your outstanding balance to rise to a higher tier, you will also be charged a late payment penalty of 1% (or a minimum of RM10 – depending on the bank).

3. Privileges

Credit cards often comes with perks and privileges, and the same should goes for an Islamic credit card. An Islamic credit card should offers takaful coverage, and some also offer benevolence expenses. It means that in the event of the cardholder’s passing, Islamic banks that offer benevolence expenses will pay the premium to cover some or the entire outstanding balance of the deceased cardholder. Aside from that, Muslims will also have the added convenience of paying being able to pay their Zakat with an Islamic credit card.

This unit should have experts in research, economics, statistics and so on to make sure that squatter problems are met. This unit will be required to analyze all aspects of squatter in the country, as well as conducting a study of the real role that government agencies, statutory bodies and private parties can play in addressing squatter problems. Without having the economist placed in the Unit, it was quite difficult for the unit to carry out this extremely tough and challenging task. If the management unit consists only of 'generalists' then the unit will eventually become an administrative office instead of being a think tank to the Government to overcome the squat problem. Attention should be given to the problem.

If their income still remains long, they have become squatters. Authorities should work to assist in the field of skills where squatters have the potential to thrive. In addition, those with their particular experience may be involved in a particular field of business. A financial institution must be appointed to lend to members of squatters to undertake a project or business that can improve their economic status. They must also be given a boost to change their attitude towards finding new opportunities that can increase their income over time. Jurisdiction of squatter problems will be felt as squatter income has increased as authorities have been able to provide housing for most squatters in the country to buy or rent houses.

Moding Low Costs
The Municipal Council should also provide a good residential area as well as the residents. For example, the housing area should be built in a strategic area so as not to burden the residents to find a living. The party should also reduce the amount of rental payments for renters not too burdensome dependents to continue their survival.

In order to curb this problem, the government has to compensate the population if the government is asking for squatter settlements to be developed. In this regard, the government must be responsible by providing appropriate compensation to squatters such as providing low-cost houses to safeguard their welfare and well-being. should be equipped with basic facilities such as electricity, water, schools, clinics and others.

Next, future  research  should  be  conducted  to  analyse  whether  Shariah-compliant  securities which are subsequently re-classified as Shariah non-compliant either because of the reduced  business  activity benchmark  and/or  the newly introduced  financial ratio  assessment, and/or the qualitative assessment.

It is submitted that this newly adopted Shari'ah screening process would be more attractive to international investors as the revised methodology is in line with the internationally accepted methodologies. The adoption of two-tier quantitative approach by may prevent the spill over effect to the conventional counterpart as the listed companies have to reinvest their surplus funds into Islamic banking accounts and instruments.