[ms] Sharia Objectives in Illegitimacy of Bay‘ al-‘Inah as A Personal Financing Product in Malaysia

Abstract

The application of bay‘ al-‘inah is a polemical financing method in the Malaysian banking and finance industries. Even though being refuted by the Islamic Fiqh Academy of OIC, the Muslim World League, the AAOIFI and the al-Azhar, the Syariah Advisory Council of Bank Negara Malaysia and the Securities Commission declare that the instrument is lawful based on the opinion of al-Shafi‘i and al-Shafi‘iyyah. Their rulings are based on the classical Islamic law without considering contemporary application that may comprise prohibited components. This article focuses on maqasid al-Shari‘ah (objectives of Sharia) in connection with prohibition of the instrument by analysing bay‘ al-‘inah in personal financing product. This qualitative research used content analysis as research design, by using Islamic legal methods and maxims in order to relate the prohibitions with the maqasid. It concludes that the application is unlawful since it contravenes several maqasid of Sharia associated with sale and purchase and benevolent loan contract. Violation to the maqasid of Sharia renders the instrument unlawful.