Implication of Malaysia SRI Sukuk framework in Sustainable Community and Economic Development
Journal Title: IOSR Journal of Economics and Finance (IOSR-JEF) - Year 2018, Vol 9, Issue 6
Abstract
This study explores the potentials of SRI sukuk in Malaysia. Driven by SRI Sukuk framework by the Security Commission (SC). Focusing on the Community and Economic Development that concentrate on public hospital and medical services, public education, community services, urban revitalization, affordable housing and sustainable building. This study highlights the application, challenges as well as potentials of SRI sukuk as a source of financing for Community and Economic Development.The paper also highlights the demand SRI Sukuk as well as the tax incentive by the government to support the initiatives. Design/methodology/approach– Driven by the SRI Sukuk Framework data has been collected from the sources to form a qualitative research paper. Findings– There has been rapid growthfor Community and Economic Development sectors. But from the Sukuk perspective, most of the focus has been on Education, with the issuance ofSukuk Ihsan by Khazanah for Yayasan Amir. But we also found-out that another organization by Khazanah, which is Yayasan Hasanah (Hasanah) has develop corporate responsibility investment focusing on various area including education and urban revitalisation. We also found-out that no Sukuk has been issued for affordable housing and for public health, the issuance of share has been chosen as method of fund raising. There’s one Sukuk issued by KPJ, but it is solely for their operation and working capital cost Research implication/limitation – Possible some solutions to enhance the current Sukuk SRI offering as to attract more investor to invest and create sustainability community. Originality/value – Since the field of SRI sukuk is still in its infancy stage especially in Islamic finance, plus the study on the implication of Sukuk Framework issued by SC is even scarcer.Hence, this provide the originality to this paper.
Authors and Affiliations
Mohd Owais, Muhamad Fahmi Mustafa
Keywords
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- EP ID EP430886
- DOI 10.9790/5933-0906045366.
- Views 178
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