Abstract
This chapter provides a comprehensive exploration of Islamic Microfinance, offering readers a nuanced understanding of its key aspects. The chapter begins with an insightful overview of Islamic Microfinance, emphasizing its distinctive features compared to conventional microfinance models. A detailed examination of the legal framework for Islamic Microfinance in Malaysia enhances the reader’s comprehension of the regulatory landscape. Real-world case studies enrich the discussion, showcasing practical applications and outcomes. The chapter concludes by addressing the pertinent issues and challenges faced by Islamic Microfinance, providing a well-rounded perspective on this vital component of Islamic Social Finance.
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Notes
- 1.
Islamic Development Bank. (2016). Empowering the Poor through Islamic Microfinance. Retrieved from https://www.isdb.org/sites/default/files/media/documents/2022-05/Empowering%20the%20Poor%20through%20%20Islamic%20Microfinance_Experience%20of%20the%20Bank%20of%20Khartoum%20Sudan%20in%20Value%20Chain%20Project%20Financing%20.pdf.
- 2.
Ibid.
- 3.
Chiara, S. (2005). Case Study “Islamic Microfinance and Socially Responsible Investments. University of Torino.
- 4.
Mazur D., & Roayee M. (2011). Islamic vs. conventional microfinance: A comparative theoretical analysis. International Journal of Business and Management Tomorrow, 1(1), 67.
- 5.
Kassim, S., & Hassan, R. (2008). Issues facing islamic microfinance and their possible solutions: Empirical evidence from Amanah Ikhtiar Malaysia. Al-Shajarah: Journal of Islamic Thought and Civilization, special issue, 43–67.
- 6.
Ibid.
- 7.
BNM, Financial Inclusion Framework 2023–2026 Strategy Paper. Retrieved from https://www.bnm.gov.my/documents/20124/55792/SP-2nd-fin-incl-framework.pdf.
- 8.
BNM, Fund for SMEs: Micro Enterprises Facility (MEF). Retrieved from https://www.bnm.gov.my/documents/20124/6025157/mef_broc_en.pdf.
- 9.
Ibid.
- 10.
See the preamble of the Act.
- 11.
See: Section 5.1 (2) of the Act.
- 12.
See the preamble of the Act.
- 13.
Information derived from Amana Ikhtiar Malaysia, (2019). Bulletin. Retrieved from https://www.aim.gov.my/pdf/BULETIN_AIM_FINAL_22_AUG_2019.pdf.
- 14.
MalayMail, Koop Sahabat announces 10pc dividend payout (18 June 2023). Retrieved from https://www.malaymail.com/news/money/2023/06/18/koop-sahabat-announces-10pc-dividend-payout/75039
- 15.
Information is taken from: TEKUN Nasional. (n.d). TEKUN Nasional Shariah Concept. Retrieved from https://www.tekun.gov.my/en/tekun-nasional-shariah-concept/
- 16.
Abdul Rahman, R., & Dean, F. (2013). Challenges and solutions in Islamic microfinance. Humanomics, 29(4), 293–306.
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Kunhibava, S., Muneeza, A., Khalid, M.B., Mustapha, Z., Sen, T.M. (2024). Islamic Microfinance. In: Islamic Social Finance. Springer, Singapore. https://doi.org/10.1007/978-981-97-1410-0_5
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DOI: https://doi.org/10.1007/978-981-97-1410-0_5
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