IRTI CORNER LIBRARY OPENING CEREMONY
On 17 September 2015, International Research Centre of Islamic Economics and Finance (IRCIEF) in collaboration with Islamic Research and Training Institute (IRTI), Islamic Development Bank (IDB) have successfully organized the Opening Ceremony of IRTI Corner Library. The ceremony was officiated by Y.Bhg. Prof. Dato. Dr Azmi Omar, Director General of IRTI, IDB. Among the attendees were Prof. Dato. Dr. Abd Halim Tamuri, Rector of International Islamic University College Selangor (KUIS), the Associate Research Fellows of IRCIEF and banks’ representatives.
The opening ceremony began with du’a recitation led by Ustaz Don Daniyal Don Biyajid. The opening of the “wood frame” by Prof. Dato. Dr. Azmi Omar served as the opening’s symbolic. Later, accompanied by the Rector of KUIS, the guests headed to the neighborhood Corner and wrote on the guestbook of IRTI Corner Library.
IRTI Library Corner which located at the 2nd floor of Academic Block 3 is collecting reference materials in the field of Islamic economics and finance such as books, magazines, and proceedings. In addition, IRTI Corner Library is also equipped with facilities for discussion such as research room and a lounge complete with projector.
IRCIEF is also glad to welcome all level of citizens to fully utilise its Library Corner as one of the college’s academic facilities for teaching and learning activity, research, and reference centre in order to achieve its objective. The IRTI Corner Library opening ceremony ended with a photo session and a pleasant lunch with Prof. Dato. Dr. Azmi Omar at 2.00 p.m.
MOU WITH CIBFM
Memorandum of Understanding signing ceremony was held with the Centre for Islamic Banking, Finance and Management (CIBFM), Universiti Brunei Darussalam Campus on 05th August 2015.
OFFICIAL VISIT TO JEDDAH
IRCIEF conducted official visit to IRTI-IDB in Jeddah, Saudi Arabia from 5 – 13 January 2015.
IRCIEF PIONEERS SADAQAH STUDIES, HIBAH
English translation follows:
International Research Centre for Islamic Economics and Finance (IRCIEF) is pioneering the researches on sadaqah, waqaf and hibah in the Islamic banking sector to pave the way for the establishment of Baitul Sadaqah. As one of the research centres at International Islamic University College Selangor (KUIS), IRCIEF is setting its objective to be the first institution that gives focus on researches in the areas of sadaqah, waqaf and hibah in the Islamic banking sector.
According to Datuk Abdul Halim Ismail, the recipient of the Royal Award for Islamic Finance 2014, Baitul Sadaqah can be established by any financial institutions or its relevant subsidiaries. He further explained, one of the requirements to establish a Baitul Sadaqah is it should be owned and controlled by a group of banking institutions or any other licensed institutions. “Similar to a takaful company, Baitul Sadaqah will be a financial institution that operates within the Islamic banking system and shariah compliant capital market.
Regulated by the Central Bank
“Therefore, regulation by the Central Bank of Malaysia (BNM) and the Securities Commission (SC) is necessary,” he said during the Workshop on Requirement/ Needs Study for Sadaqah Instrument organised by IRCIEF in Kajang, yesterday. The one-day workshop was part of IRCIEF’s initiative to discover and develop more knowledge with regard to sadaqah, and Baitul Sadaqah in particular, since it is considered to be something new in this country. It was attended by a few selected experts from various universities and also from the industry. Based on the proposal presented, among the products and services that would be offered by a Baitul Sadaqah are various forms of charity including sadaqah, waqaf and hibah.
Today, the practice of sadaqah involves high-value properties like land and buildings donated by wealthy individuals. However, with the establishment of Baitul Sadaqah, it enables the general public to make sadaqah for as low as RM10 at any time using various means of transaction like cash deposit, cash transfer and through salary deduction.
BAITUL SADAQA, A NEW FINANCIAL INSTRUMENT FOR THE DEVELOPMENT OF THE UMMAH
KAJANG: Sebuah pusat pengumpulan sedekah, wakaf dan hibah dikenali Baitul Sadaqah sedang dalam rumusan untuk penubuhan oleh sebuah badan pemikir di Kolej Universiti Islam Antarabangsa Selangor (KUIS).
Mengikut Pusat Penyelidikan Antarabangsa Ekonomi dan Kewangan Islam (IRCIEF), Baitul Sadaqah yang beroperasi di bawah rangka kerja perbankan Islam, mengumpulkan dana berkenaan untuk diagihkan kepada golongan miskin dan memerlukan.
Cadangan mengenai Baitul Sadaqah dibincangkan dalam bengkel Keperluan Kajian untuk Instrumen Sadaqah anjuran IRCIEF di sini hari ini.
Bagi pemenang Anugerah Diraja Kewangan Islam 2014, Datuk Dr Abdul Halim Ismail, yang menyampaikan ucaptama pada bengkel itu, Baitul Sadaqah boleh ditubuhkan sebuah syarikat kewangan utama atau anak syarikatnya.
“Antara keperluannya ialah Baitul Sadaqah dimiliki dan dikawal sebuah kumpulan perbankan atau sebarang pertubuhan lain yang mempunyai lesen (perbankan).
“Sama seperti syarikat takaful, Baitul Sadaqah akan menjadi institusi kewangan yang beroperasi dalam sistem perbankan Islam dan pasaran modal patuh Syariah. Justeru, kawal selia Bank Negara Malaysia dan Suruhanjaya Sekuriti (SC) adalah wajar,” katanya.
Bengkel sehari itu adalah sebahagian inisiatif IRCIEF kerana Baitul Sadaqah adalah satu idea yang baharu di negara ini. Ia dihadiri beberapa pakar industri dan ahli akademik.
Mengikut cadangan, Baitul Sadaqah boleh menerima sekurang-kurangnya RM10 daripada orang ramai pada bila-bila masa menggunakan kaedah deposit, pemindahan bank atau potongan gaji.
Mekanisme Baitul Sadaqah ialah menjadikan jumlah prinsipal sedekah yang diterima sebagai modal untuk disimpan dan dilabur secara berhemah untuk menjana keuntungan, yang kemudiannya akan diagihkan kepada golongan memerlukan.
Pelaburannya dicadangkan dihadkan di dalam instrumen kewangan Islam dalam institusi perbankan serta kewangan seperti deposit, akaun pelaburan, sukuk dan pelbagai produk pengurusan pelaburan lain.
Model pelaksanaannya menggunakan contoh kejayaan Lembaga Tabung Haji (TH) dan Permodalan Nasional Bhd (PNB) menguruskan deposit pelabur sejak ditubuhkan beberapa dekad lalu.
CALL TO SET UP SADAQAH HOUSE
NEW STRAITS TIMES ONLINE, 5th September 2014
Zaidi Isham Ismail
KUALA LUMPUR: Malaysia’s Islamic finance fraternity should consider a sadaqah (charity) house that provides products and services to collect various types of sadaqah, waqf (endowment) and hibah (gift payments) mainly from the private sector, and distribute these to the poor and the needy.
Royal Award for Islamic Finance 2014 recipient Datuk Dr Abdul Halim Ismail said the sadaqah house may be a foundation formed by the owner or a subsidiary company.
“An important requirement here is that the sadaqah house is owned and controlled by the banking group or any other organisation that is given the licence.
“Like a takaful company, a sadaqah house would be a financial institution. It would operate in the Islamic banking system and the Islamic capital market.
“It is, therefore, under the supervision of Bank Negara Malaysia and the Securities Commission as appropriate,” Abdul Halim said in his lecture series on the last day of the Global Islamic Finance Forum 2014, here, yesterday.
He said there should be an Act of Parliament and various Bank Negara guidelines, which specifically spell out important matters of the sadaqah houses, such as licensing, financial requirements and duties, ownership, control and management as well as powers of supervision.
“In this area, if I may, I thought that in the initial five to 10 years, three to five licences may be given to the organisations, preferably Islamic banking group.”
According to Abdul Halim, the possible products and services that a sadaqah house might offer, including those with varying nature of charities.
“In my view, it is highly advisable for the sadaqah house to accept sadaqah only in cash, but it may also wish to extend this to other Islamic banking and financial instruments that may be converted to cash.”
Abdul Halim said the sadaqah house may accept at a minimum of RM10 each time and at any time through deposit, bank transfers or salary deduction.
“This is a totally new phenomenon. Up to now, sadaqah is only available through donating big-ticket item, such as land and buildings and only by the wealthy.
“The mechanism for implementing sadaqah would be for the sadaqah house to treat the principal amount as capital to be carefully preserved and prudently investing it to generate profits, which will be regularly distributed.”
He proposed for the investment to be generally confined to Islamic banking and financial instruments within the banking and financial institutions, such as various types of deposit, investment accounts, sukuk and various investment management products.
“In Malaysia, we need only to look at Tabung Haji and Permodalan Nasional Bhd (PNB) to be convinced that this method of investment will work and attain its objective.
“Tabung Haji has been successfully managing the deposit of its investors for the last 50 years, while PNB has done the same for its unit-holders for the last 40 years.”
Yang di-Pertuan Agong Tuanku Abdul Halim Mu’adzam Shah (right) giving the Royal Award for Islamic Finance 2014 to Datuk Dr Abdul Halim Ismail Datuk Dr Abdul Halim Ismail (left). With them are Sultan of Perak Sultan Nazrin Shah and Bank Negara Govenor Tan Sri Dr Zeti Akhtar Aziz. Pic by Mohd Yusni Ariffin
Royal Award for Islamic Finance 2014 recipient Datuk Dr Abdul Halim Ismail says the sadaqah house may accept at a minimum of RM10 each time and at any time through deposit, bank transfers or salary deduction.