Muzakarah 11 concluded with the presentation and discussion of the Resolutions by the committee assigned that task, which was chaired by Dr Marjan Muhammad (Malaysia). Muzakarah 11 outlined that the scope of the bayʻ wa salaf concept covers the combination of a loan contract with an exchange contract such as a sale or lease.

(Regional Shariʻah Scholar Dialogue)―newly rebranded as Muzakarah

When: 16-17 May 2017, Putrajaya

Organisers:The International Shariʻah Research Academy for Islamic Finance (ISRA) in collaboration with the Association of Islamic Banking Institutions Malaysia (AIBIM)

Venue: The Marriot Hotel, Putrajaya, Malaysia

Language: Malay

Objectives:

• To establish a common understanding among Shari’ah scholars in the ASEAN region through discussions on various issues pertaining to Islamic finance.
• To provide a regional platform for Shariʻah scholars and practitioners to exchange ideas, knowledge and experience, and to share the latest developments in the Islamic finance industry.

Officiated by: Mr. Shaik Abdul Rasheed Abdul Ghaffour, Deputy Governor of Bank Negara Malaysia (BNM)

Attendees: More than 200 delegates, comprising:

• Shari’ah scholars, academicians, Islamic finance practitioners and regulators, from
• Brunei, Indonesia, Thailand, Singapore and Malaysia.

Theme: Post BNM Shariʻah Standards: Between Ideals and Realities

Topics:

1. Combination of Bayʻ wa Salaf: Theory and Practice (five papers)
2. The Application of the Musharakah Contract in Islamic Financial Products: Issues and Challenges (eight slide presentations)
   More than 16 speakers and discussants contributed to the presentations and dialogues.

Day One:

• Welcoming remarks from Prof. Dr Mohamad Akram Laldin, the Executive Director of ISRA
• Presentation of the Resolutions of Muzakarah 10 by Ustaz Burhanuddin Lukman (Malaysia).
• First Session: Bay’ wa Salaf from the Fiqhi Perspective.
  • Presenters:
    – Dr H. Oni Sahroni (Indonesia)
    – Dr Shamsiah Mohamad (Malaysia)
  • Discussants:
    – Dr Hj. Noralizam Hj Ali Akbar (Brunei)
    – Dr Zakariya Hama (Thailand)
  • Moderator:
    – Ustaz Mohd Kamal Mokhtar (Singapore).
• Second Session: Bayʻ wa Salaf and the Current Islamic Banking and Capital Market Practices
  • Presenters:
    – Ustaz Munawwaruzzaman Mahmud (Malaysia)
    – Ustaz Mohd Feqah Mohd Ngadil (Malaysia)
    – Dr Md Nurdin Ngadimon (Malaysia)
  • Discussants:
    – Ustaz Mohd Zamerey Abdul Razak (Malaysia)
    – Prof. Dr Engku Rabiah Adawiah Engku Ali (Malaysia)
  • Moderator:
    – Ustaz M. Nuzaihan Hamdan (Singapore)

Day Two:

• Introduction to the Bank Negara Malaysia Shariʻah Standards
  Highlighting the objectives, significance and the process of issuing BNM Shariʻah Standards
  • Presenter:
    – Dr Suhaimi Mohd Yusof from BNM
• Third Session (First Dialogue): The Application of Musharakah in Islamic Financial Products
  • Participants:
    – Bapak Cecep Maskanul Hakim (Indonesia),
    – Dr Hamim Syahrum Ahmad Mokhtar (Malaysia),
    – Ustaz Mohd Faiz Rahim (Malaysia)
    – Puan Mexdelina Hussein (Malaysia)
  • Moderator:
    – Dr Mohammad Mahbubi Ali (Indonesia).
• Fourth Session (Second Dialogue):
  Issues and Challenges in Implementing Musharakah in Islamic Finance.
  • Participants:
    – Assoc. Prof. Dr Aznan Hasan (Malaysia)
    – Mr. Wan Hefnie Haji Hamidon (Brunei)
    – Dr Aida Othman (Malaysia)
    – Mr. Mohd Fikri Abd Ghapar (Malaysia)
  • Moderator:
    – Ustaz Abdul Rahman A. Shukor (Malaysia)

Both dialogue sessions ended with open and interactive discussions between the panellists and participants.

Resolutions:

Muzakarah 11 concluded with the presentation and discussion of the Resolutions by the committee assigned that task, which was chaired by Dr Marjan Muhammad (Malaysia). Muzakarah 11 outlined that the scope of the bayʻ wa salaf concept covers the combination of a loan contract with an exchange contract such as a sale or lease. Muzakarah 11 resolved that the combination of bayʻ wa salaf is prohibited if:

i. there is an explicit condition in a form of inter-conditionality or inter-contingency between the sale/lease
and loan contracts; and
ii. there is no explicit condition, but the practice has become a norm (ʻurf) which benefits the lender
(muqrid) only.

In addition, Muzakarah 11 recommended setting up a task force to look into issues and challenges faced by Islamic financial institutions in offering musharakah-based products. For the detailed Resolutions of Muzakarah 11, please click here.