ISLAMIC FINANCE.... FOR THOSE WHO AGAINST IT

It has been a while since I wrote my last entry. This one was taken from my status in my Facebook.

To quote Badlisyah, CEO of CIMB Islamic Bank "22% of banking assets are from Islamic banks, 60% or more for capital markets particularly debt market whilst 80% in equity alone" and "It's easier to sell Islamic banking products to non-muslims than to muslims" (why I am not surprised with this statement.....hmmmm). My 5 cent advice before you want to be look as champion for 'against' so-called Islamic banking/ Islamic finance is: 

(1) get to know the difference between Islamic banking and Islamic finance. If you cannot tell the difference in 5-10 words, you have a very long way to go, so pray harder.

(2) get to know what are banking products and capital market products (be it conventional and Islamic) plus insurance and takaful.

(3) If you think the Islamic finance was developed over last 20-30 years ago, you have a long way to go.... so pray harder.

(4) If you are so overwhelmed with fatwas from so-called ulama' from another countries that against Islamic finance and took it as bona fide statement, let me tell you a story; there was one a Great Grand Mufti, a Great Shariah Advisor, shook the world when he claimed that 80% of the Sukuk were not Shariah compliant (while he forgotten that three quarter of Sukuk floating around the world were stamped by him that led him to be a multi-millionaire, nick-named as Brad Pit of Islamic finance). Till now I dont know what turned him from Shariah advisor to Shariah celebrity.

(5) to condemn one's country financial system, make sure your country is way better off than the country you are criticizing. This is more like 'tale of two cities'; one uzbekistan guy criticized of how devious and devilish of Islamic banks in Malaysia (based on the analysis by singaporean professors on the average Islamic banking's profit income and expenses as compared to conventional bank's interest income and expenses, probably on hourly or daily basis for the last 20-30 years and run it on the Eviews, and resulted that the movement between profit & interest significantly co-vary between each other). Therefore, the profit of Islamic banks is as good as conventional interests so they say. Since i happened to be in that forum, I told everybody that at least Malaysia eager to have alternative ways in running its own financial system. Some country dont even have Central banks (uzbekistan is one of them). The same pay-out doesnt justify both animals are same. They may be similar due to intense competition between conventional and Islamic markets with close monitoring by central bank. Coke is Coke and Pepsi is Pepsi. And thats why Britnney Spears lost her million dollar Coke contract when she was pictured drinking Pepsi.

(6) Stay away from people who are propagating Islamic finance can be understood by 'only' reading classical Shariah books, fatwas and ijtihad by the imams for the last 1000 years ago. Why? to understand Islamic economics, understand the conventional economics first. To understand Islamic finance, understand what is conventional finance first. Islamic finance is about Islam (religion) and finance. Period. 

(7) Some Shariah advisor from middle east do not have degree, let alone doctorate but people recognized them due to lineage from ulama' family and the tradition of their family and their fatwas are worthily uphold. They are competent enough to sit together with Sheikul Al-Azhar. Over here, it is not uncommon to hear from ustaz/ ustazah in Malaysia to preach Islamic finance is not in any classical books. It is a modern invention. Go dig my Note No.(3) above. Therefore, please, please, please,..before you listen to your ustaz/ustazah in TV/ youtube/ radio/ go dig their background first, where he acquired the knowledge. Some of them are worth listening only on how to take mandatory bath (aka mandi wajib). 3 big Shariah specialization: (1) Jinnayah (jenayah), (2) Munaqahat (marriage or perkahwinan) and Muamalat (transactions and contracts). To deny existence of Islamic finance is as good as denying Muamalat in Shariah. Therefore, go dig my Note No.(3) above. 

I'm not claiming the system (be it the banking and capital market) is perfect. There are still holes be it in law system to the operations which need to be perfected. However, I believe that the effort is worth to take rather than sit down and talk about it. Wise man used to say to me, its better to be in the field and trying your best to win the game rather than be the spectators and yell out to the team. At least, while playing with the team, we 'in control' of the situation. If we become spectators, we're not 'in control' of anything except our mouth. It's your choice either to play the game or be the supporters. There were saying that our 4 Imams, they will be granted with 2 pahala if their ijtihad are in line with Islamic percepts and 1 pahala if its not. This shows that Islam uphold the 'efforts' more than others. Wallahuallam.

Are we Muslims are that gullible and confused?

"Capital as such is not evil; it is its wrong use that is evil. Capital in some form or other will always be needed" (Modal bukanlah kejahatan, ia baru akan menjadi kejahatan kalau disalahgunakan. Modal dalam bentuk tertentu atau lain-lain akan sentiasa diperlukan)  - Mohandas Karamchand Gandhi aka Mahatma Gandhi

Sadly speak, even some Muslims believed Capital per say leads to capitalism (John Calvin, Max Weber, Adam Smith). Therefore, they resort to socialism. Indirectly, these people shared the same spirit of Karl Marx for that matter. His masterpiece 'Das Capital' aka 'The Capital' spells out the effect of capital that can outrageously leads toward unfairness to the society. To him, the very essence of a capitalist is his desire to gain surplus-value. Socialism and communism are alike. Socialism is primarily an economic system, while communism is both political and economic. The fact that Socialist Party did exist for quite some time was a successor from the lefties like PKMM, API, AWAS and PETA alike. It was not a surprise when some Muslims did involved in communist guerrilla activities even though the highest order in communism is to accept equality in every way, and the existence of God is not in the dictionary. To these Muslims, their fight was to eradicate poverty, equality and justice in the economics system and for the betterment of the Country even if they have to assimilate in un-Islamic movements. Clearly, Machiavelli doctrines was well accepted on this very land.

Capitalism and democracy, are the twin ideological pillars capable of bringing unprecedented prosperity and freedom to the world. Together they come hand in hand, we've long been told. Now, be it capitalism, socialism, democracy and communism, they are all man-made. They are not perfect. They are far from perfect. Consider this, when socialism is perceived as an economics system for communism, China became super power by replacing capitalism without changing its political stand. Now we have combination of capitalism and communism. Whats left was communist countries like Cuba that became brouhaha for being able to provide free education. Have anybody noticed that how many Cubans can even steps into tertiary education system?

Sometimes I wonder of why in Khutbah Jumaat or Friday sermons, we never talk about the Market system. Islam is not against market system per se. Islam does not deny the market forces and market economy. Even the profit motive is acceptable to a reasonable extent. Private ownership is not totally negated. Yet, the basic difference capitalist and Islamic economy is that in secular capitalism, the profit motive or private ownership are given unbridled power to make economic decisions. Their liberty is not controlled by any divine injunctions. If there are some restrictions, they are imposed by human beings and subject to change through democratic legislation.

I have seen people associating KFC barrel price and raw bird as capitalism? but they never questioned their father for running coffee shop as associating with capitalism or freemason or illuminati for that matter (huhuhuhuhu..... probably the shop was set up on the holiest land on earth.....yeahh right). I have seen people obsessed with socialism as way of life.

My question now, are we Muslims are so gullible and confused?

Power corrupts, absolute power corrupts absolutely. These are the sins to avoid..

Power corrupts, absolute power corrupts absolutely. These are the sins to avoid..

1. wealth without working,

2. science without humanity,

3. business without morality,

4. lastly, politics without principles (U-turn, flip-flop aka kluk-klek).

ISLAMIC FINANCE .... FOR THOSE WHO AGAINST IT

To quote Badlisyah, CEO of CIMB Islamic Bank "22% of banking assets are from Islamic banks, 60% or more for capital markets particularly debt market whilst 80% in equity alone" and "It's easier to sell Islamic banking products to non-muslims than to muslims" (<--why am I not surprised with this statement...hmmm). My 5 cent advice before you want to be look as champion for 'against' so-called Islamic banking/ Islamic finance is: 

(1) get to know the difference between Islamic banking and Islamic finance. If you cannot tell the difference in 5-10 words, you have a very long way to go, so pray harder.

(2) get to know what are banking products and capital market products (be it conventional and Islamic) plus insurance and takaful.

(3) If you think the Islamic finance was developed over last 20-30 years ago, you have a long way to go.... so pray harder.

Lelaki

Jalur Gemilang

Dalam perang zaman dahulu,gugurnya seorang pemegang bendera,maka tentera terdekat perlu berlari memegang bendera pasukannya.kerana bendera itu secara tidak langsung mendukung maruah negara dan pasukannya.ia tidak boleh jatuh ke bumi.Di Malaysia, orangnya nak ubah bendera kerana ada persamaan dengan bendera negara lain. Lebih baik buta ilmu dari buta mata. Lebih baik buta mata dari buta hati. Terjajah minda lebih buruk dari terjajah fizikal.

RUKUN NEGARA

MAKA KAMI, rakyat Malaysia, berikrar akan menumpukan seluruh tenaga dan usaha kami untuk mencapai cita-cita tersebut berdasarkan atas prinsip-prinsip yang berikut :

KEPERCAYAAN KEPADA TUHAN

KESETIAAN KEPADA RAJA DAN NEGARA

KELUHURAN PERLEMBAGAAN

KEDAULATAN UNDANG-UNDANG

KESOPANAN DAN KESUSILAAN

Sheikh Imran Nazar Hosein On Dr. Mahathir and Malaysia

Suffice to show how outsiders appreciate this local genius but not his own countrymen.

'The Malay Dilemma' by Tun M

An excerpt from 'The Malay Dilemma' for more than 40 years ago;

By Unanimous

"fatalism dalam diri  orang-orang melayu yang percaya 'rezeki secupak tak akan jadi segantang’, sering menjadikan mereka sorang pesimis"