Shariah perspective in public-private partnership models for economic development in Malaysia
Public-Private Partnership (PPP) initiative increases economic growth as well as optimise resources in public sector due to private sector plays important roles in striking a balance of the country's financial statement. It is observed that some of the PPP models for economic development in Malaysia are not Shariah-compliant. This paper discusses on the level of compliance for the PPP models against Shariah parameters and to provide altematives should there is any non-Shariah compliant. The parameters consider form and substance perspectives including identification of prohibited elements. It is observed that two (2) models; Build-Lease-Transfer and Build-Lease-Maintain-Transfer are not considered as Shariah-compliant models due to loan and gharar elements. Ijarah mutahia bittamlik and murabahah contracts are recommended as altematives for the former while musharakah mutanaqisah contract for the latter. The models have to be further scrutinised such as rental rate so as to establish fairer price for both public and private sectors ...
Public-Private Partnership (PPP) , Economic development , Malaysia
Mohd Mazlan, M. Z. (2018). Shariah perspective in public-private partnership models for economic development in Malaysia (Master dissertation). INCEIF, Kuala Lumpur. Retrieved from https://ikr.inceif.org/handle/INCEIF/3097