The possibility of the application of salam in Malaysian Islamic banking system
Islamic banking is flourishing in the world today. Malaysia is a leading country of it in the world. In Malaysia, there are various types of Islamic banking products used. However, salam has never been used as a mode of financing in the country, though it is utilised for sukuk or Islamic bond. Salam is an exceptional contract in Islamic law, which has been legalised to facilitate the people, especially the poor farmers. It has been stated here that Malaysia is an agricultural nation and farmers here are looking for modes to finance their productions and hence application of salam contract in Malaysia would be vital. However, the banks are hesitant to use this product due to risky factors. The main objective of this paper is to analyse and formulate a feasible way to implement salam contract in Malaysia.
Salam , Islamic banking , Malaysia
Muneeza, A. (2011). The possibility of the application of salam in Malaysian Islamic banking system. Shariah Law Report, 2, xix.
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