Regional Shari’ah Scholars Dialogue to Discuss Issues and Solutions Towards Strengthening Islamic Finance

13 June 2016, Kuala Lumpur – The International Sharīʻah Research Academy for Islamic Finance (ISRA) has successfully organised the 10th Muzakarah Cendekiawan Shari’ah Nusantara (the Regional Shari’ah Scholar Dialogue) themed, ‘Towards Strengthening Islamic Finance: Issues and Solutions’. The Muzakarah  was held on 1-2 June 2016 in Kuala Lumpur, Malaysia.

The Muzakarah was organised with the aim to provide a platform for Sharīʻah scholars from the Southeast Asia region to facilitate in-depth deliberations on key aspects of Islamic financing and refinancing from the Sharīʻah perspective.

Over 210 delegates from six countries consisting of Sharīʻah scholars, academicians, market players and regulators attended this annual event.

Prof. Mohamad Akram Laldin, the Executive Director of ISRA, in his Opening Address, highlighted that the event was held to enable the participants not only to address issues but also to share experiences, ideas and new innovations. He also stressed that Sharīʻah is the backbone of this industry, as it is the key distinguishing factor that makes Islamic finance distinct from the conventional finance. Finally, he reiterated the importance of following the broader principles of Sharīʻah to devise instruments for refinancing for consumers.

The Opening Session was followed by the presentation of the 9th Muzakarah resolutions by Mr. Cecep Maskanul Hakim (Indonesia). After which, Assoc. Prof. Dr. Aznan Hasan presented a paper entitled ‘Rescheduling, Refinancing and Restructuring of Islamic Financing Facilities from the Shariah Perspective’. He provided an overview of the concept and current methodologies of refinancing, rescheduling and restructuring as applied in Islamic financial institutions from the Shari’ah point of view. The paper was discussed by Prof. Dr. Ashraf Md Hashim (Malaysia), Hj. Mohd Nasiruddin Mohd Kamaruddin (Malaysia) and Ustaz Mohd Kamal Mokhtar (Singapore).

The following session saw the presentation of three papers which focused on the issue of Qalb al-Dayn. The presenters were Mr. Muhamad Taufik Ridlo (Indonesia), Assoc. Prof. Dr. Azman Mohd Noor (Malaysia) and Dr. Zaharuddin bin Abd Rahman (Malaysia).

The following day started with two presentations focusing on ijarah products. The presenters for this session were Assoc. Prof Dr. Asmadi Mohamed Naim (Malaysia) and Ustaz Mahbubi Ali (Indonesia). The discussants for this session were Prof. Dr. Engku Rabiah Adawiah binti Engku Ali (Malaysia), Dr. Md Nurdin Ngadimon (Malaysia), Dr. Akhratzaite Abdul Aziz (Malaysia) and Mr. Cecep Maskanul Hakim (Indonesia).

The Muzakarah ended with a presentation of the resolutions, in which it resolved that three (3) methodologies, namely maturity extension, haircut and renewal of ijarah contract by increasing the amount of rental, can be used for rescheduling and restructuring, meanwhile some other methodologies needed further researches.