Economic performance in Malaysia rise of Islamic banking - Free Essay Example

Today in Malaysia, Islamic banking and finance has become a main flow in the financial and economic activities and has become accepted by the people. The increase participation from the conventional banks and creates a healthy competition among the Islamic banking and thus leads to the enhancement of the product and better services to the customer. In this paper we are discuss more about the history of Islamic banking in the past and present, the objectives, philosophy and principles and of Islamic banking, modern banking operations according to Shariah principles. The word bank is derived from the Italian word banco, the origin meaning is shelf or bench. (Mohammad Muslehuddin) Islamic banking is banking based on Islamic law (Shariah). It follows the Shariah, called  ¬Ãƒâ€šÃ‚ qh muamalat (Islamic rules on transactions).The rules and practices of  ¬Ãƒâ€šÃ‚ qh muamalat came from the Quran and the Sunnah, and other secondary sources of Islamic law such as opinions collectively agreed among Shariah scholars (ijma), analogy (qiyas) and personal reasoning (ijtihad). Its also known as participant banking,  Islamic banking  refers to a system of banking  or banking activity that is follow with the principles of Islamic law  (Sharia) and its practical application through the development of Islamic economics. Sharia prohibits the payment or acceptance of interest fees for loans of money (riba), for specific terms, as well as investing in businesses that provide goods or services considered contrary to its principles (Haram, forbidden). While these principles  were used as the basis for an economy in earlier times, it is only in the late 20th century that a number of Islamic banks were formed to apply these principles to  private  or semi-private  commercial  institutions within the Muslim community. (Wikipedia) Islamic banking system in Malaysia comprises of the Islamic banking industry, the takaful industry, the Islamic money market, and the Islamic capital market. Firstly is Islamic banking industry. Islamic banking in Malaysia  began in September 1963 when Perbadanan Wang Simpanan Bakal-Bakal Haji (PWSBH) was established. PWSBH was set up as an institution for  muslims  to save for their  Hajj  expenses. In 1969, PWSBH merged with Pejabat Urusan Haji to form Lembaga Urusan dan Tabung Haji (now known as Lembaga Tabung Haji). In Malaysia, separate Islamic legislation and banking regulations exist side-by-side with those for the conventional banking system. The legal basis for the establishment of Islamic banks was the Islamic Banking Act (IBA) which came into effect on 7 April 1983. The IBA provides BNM with powers to supervise and regulate Islamic banks, similar to the case of other licensed banks. The Government Investment Act 1983 was also enacted at the same time to empower the Government of Malaysia to issue Government Investment Issue (GII), which are government securities issued based on Syariah principles. The long-term objective of BNM is to create an Islamic Banking system operating on a parallel basis with the conventional banking system. However, similar to any banking system, an Islamic banking system requires three vital elements to qualify as a viable system, for example number of players, a broad variety of instruments, and an Islamic money market. In addition, an Islamic banking system must also reflect the sosio-economic values in Islam and must be Islamic in both substance and form. BNM adopted step-by-step approach to achieve the objectives. The first step is to spread the good of Islamic Banking was to disseminate Islamic banking on a nation-wide basis. BNM decided to allow the existing banking institution to offer Islamic banking services using their existing infrastructure and branches. The option was seen as the most effective and efficient mode of increasing the number of institutions offering Islamic banking services at the lowest cost. On March 1993 BNM introduced a scheme known as Skim Pembankan Tanpa Faedah. The first Islamic bank established in the country was Bank Islam Malaysia Berhad (BIMB) which commenced operations on 1 July 1983. Same with its objectives, the banking activities of the bank are based on Syariah principles. BIMB has proved to be a viable banking institution with its activity expanding rapidly throughout the country with a network of 80 branches and 1,200 employees. The bank was listed on the Main Board of the Kuala Lumpur Stock Exchange on 17 January 1992. (Pledgeco.com) On 1 October 1999, a second Islamic bank namely Bank Muamalat Malaysia Berhad (BMMB) start its operations. The establishment BMMB was effect of the merger between Bank Bumiputra Malaysia Berhad (BBMB) and Bank of Commerce (Malaysia) Berhad (BOCB). In addition, BMMB was given 40 branches of BBMB and BBMBK in various locations throughout Malaysia and a staffs of 1,000 moves from BBMB, BOCB and BBMBK. In terms of products and services, there are more than 40 Islamic financial products and services that maybe offered by the banks using various Islamic concepts such as Qardhul Hassan, Mudharabah, Musyarakah, Murabahah,BaiBithaman Ajil, Ijarah, istisna, and Ijarah Thumma Al-Bai. Secondly is the takaful industry. Takaful  is an Islamic  insurance  concept which is in Islamic  muamalat  (Islamic banking), observing the rules and regulations of  Islamic law. This concept has been practised in various forms for over 1400 years.  Muslim jurists acknowledge that the basis of shared responsibility in the system of  aquila  as practised between Muslims of Mecca and Medina laid the foundation of mutual insurance. (Wikipedia) Takaful as a system of Islamic insurance is based on co-operation and mutual help for the good of the society. Furthermore, is the Islamic money market. The Islamic Interbank Money Market (IIMM) was introduced on 3 January 1194 by BNM. The activities of the IIMM included the purchase and sale of Islamic financial instruments among market participants (including the Bank), interbank investment activities through the Mudaraba Interbank Investment (MII) Scheme and a cheque clearing and settlement system through an Islamic Interbank Cheque Clearing System (IICCS).(Islamic world.net) Last but not least is the Islamic capital market. The Islamic Capital Market (ICM) refers to market transaction that carried out in ways that do not conflict with the conscience of Muslims and the religion of Islam. In other words, the ICM represents an assertion of religious law in the capital market transaction where the market should be free from the involvement of prohibited activities by Islam, as well as free from the elements such as usury (riba), gambling (maisir) and ambiguity (gharar). (Islamic world.net) Bank Practice: Past and Present The banking practice has already existed before the emergence of modern bank. This is because modern bank practice is based on ancient time that who first developed banking system which confines money exchange, interest, loans, depositing operations, credit transfer and etcetera. The ancient that are practice banking such as Babylon, Greece, Roman and the era of Prophet S.A.W. 2.1 Babylonian Civilization Babylon was ancient empire situated on the Euphrates River about 50 miles of modern Baghdad in southern Mesopotamia. Hammurabi was emerging as a ruler of Babylon then he expanded the empire and organized its own laws that called Code of Hammurabi around 2000 BC. The development economy of Babylon started at the end of 6000 BC by private banking system. This private banking business have owned by the families of Egibi. They were lending the loan to people by charging interest from 20% to 30 %. At the Babylon ancient, they are using silver coins as a medium exchange in any transaction for paying purpose. For the measuring, the silver will be arbitrated equal to value of the things. They were using silver coins because silver coins easy to keep and to be used. Besides using silver coins as the changes, they also used gold. The gold has been valued fifteen times more than silver coins valued. Upon the financing that increasingly exist, the power had legislated under Law of Hammurabi. It contained the rule of banking operation, interest loan and deposits. Babylon considered temple as the safe place to deposits their money. 2.2 Greek Civilization The banking practice in the ancient Greek is not differing much with ancient Babylonian. The ancient using temple as the safe place in deposited their money. The people in the ancient Greek, doing activities such as accepting deposits, exchanging money and making transfer between the difference cities and giving that is not differ than ancient Babylonian. However, during this ancient, the interest has been imposed on the lending of money within 6% to 12%. According to Henri Pirenne, an important transaction the interest rate was charged to 10% but at that time the interest arose to 50% or 100% or higher. 2.3 Roman Civilization Ancient Rome located along the Mediterranean Sea and centered on the city of Rome and become the largest empire in the ancient world as early 10th BC. As a vast area of land, the main economy for ancient Rome focused on farming and trade. At the time, the empire imposed for tax collection. Usually the empire collected production tax from conquered territory. The tax was imposed on grain-producing lands. For that, the empire had developed coinage system with using bronze, brass and precious metal coins. But the end of 3rd century, major problems of debasements of the imperial currency had undermined in the coinage and the empire demand for irregular tax payments. 2.4 Banking Practice in the time of Prophet Muhammad S.A.W. Prophet Muhammad S.A.W. was born on 12 Rabiul Awal AD 570 in Mecca is now Saudi Arabia. His father was died before he born following with his mother when he at six years old. The Prophet S.A.W. was brought up by his grandfather, Abd al-Muttalib and after that by his uncle Abu Talib. When the Prophet S.A.W. was young, his known as Al-Amin (the trustworthy) because his attitude that very nice and honest in every work and his life live. The Prophet S.A.W. then married to the wealthy widow Khadijah, a trader. At the age of 40, the Prophet S.A.W. received first revelations at Mount Hira. The Prophet S.A.W. has been appointed by Allah S.W.T. to spread Islam to all man to worship only one God and leave the futile things. However, the Prophet S.A.W. got against by the Quraisy and only several followers that believe on him. This situation makes the Prophet and his followers left Mecca and went to Yathrib (Medina) to spread Islam. The year the Prophet S.A.W. migrated to Yathrib, started the Islamic years which represented AH (after hijrah). Banking practice has already existed during the Prophet S.A.W. even bank institution does not exist yet. This was reported by Anas r.a the Prophet S.A.W selling a carpet and water vessel and was calling out for customers. A customers bid for one dirham, another customer bid for two dirham then the Prophet sold to him. During the Prophet S.A.W., he prohibits riba in any business transaction and followed the sharia compliants. There also developed a profit sharing in lending money. All the activities business based of partnership. There have different between before and after the coming of Islam. That time also, all Muslim have to pay the zakat in order to help the development of Muslim society. Finance system become more clearly and systematic when era Sayyidina Umar al-Khattab r.a. this is because in era Sayyidina Umar al-Khattab exist Bait al-Mal which is collected all property country from zakat, jizyah, kharaj and ghanimah. 3.0 Historical Development of Islamic Financial System in Malaysia Before the Islamic banking system had applied in Malaysia, Malaysia using conventional financial system to fulfill their financial needs. The roots of Islamic banking back to 1963 when the government established Pilgrims Management and Fund Board or Lembaga Urusan dan Tabung Haji (LUTH). This Tabung Haji established to invest the savings of local Muslim who intand to perform pilgrim (Hajj) with interest free. Tabung Haji applied Mudharabah a profit and loss sharing, Musyarakah, a joint venture and Ijrah, a leasing. These methods are under guidance of National Fatawah Committee of Malaysia. Establishment of Bank Islam Malaysia Berhad started operation on July 1st 1983. This bank is the first bank who applied Sharia Compliants which is free in interest rate, and using profit and loss sharing. The establishment of Bank Islam is to develop any transaction in loan of money, leasing, which are related to Islamic way. Another company that established applying Islamic principles is Takaful Malaysia. This company is insurance company that applying shariah concept. The major shareholder of Takaful Malaysia is BIMB Holdings Berhad with equity 65.5%. The company objective is to provide insurance services based Islamic way with efficiency and professionalism to all Muslims and non Muslims in Malaysia. Nowadays, almost conventional bank have develop Islamic banking practice in one of their services which is gaining more benefits to all people. Islamic banking, the world accept the concept. Even non Muslims more choose Islamic financial rather than conventional financial in term of guaranteed for a years. 4.0 Objectives of Islamic Banking The goal of Islamic financing institution should be in conformity with the objectives of the Shariah itself (maqasid al-shariah). Muslims jurists have unanimously agreed that the welfare of the people and relief of their hardships is the basic objectives of Shariah. According to Al-Ghazali (Muhammad al-Ghazali: 1937) and al-Shatibi (Abu Ishaq al-Shatibi:pp 46-47) the welfare of the people which become objective of Shariah consist in five aspect : The very objective of the Shariah is to promote the welfare of the people which lies in safeguarding their faith (din), their human self (nafs), their intellect (aql) their posterity (nasl) and their wealth (mal). Whatever ensures the safeguard of these five serves public interest and is desirable. The objective of the Islamic financial system is based on Islamic Law and Shariah. The first objectives are to be treated as an important vehicle to transfer funds from the surplus to the deficit units. This is done to ensure the equitable allocation of capital to sectors which would yield the best returns to the owners of capital, thereby contributing towards the overall growth and expansion of an economy. Second objective of the Islamic financial system is to ensure that the surplus fund be attracted for worthwhile investments in accordance with the owners preference in terms of the extent of risk involvement, rate of return, as well as the period of investment. Third objective of the Islamic financial system is to help the fund owners to find sufficient opportunities to invest for the short-term. Since it is contrary to Shariah principles to hoard wealth, it is necessary for the wealth owners to invest their funds in projects of either short-term or long-term nature. Fourth objective of the Islamic financial system is to promote, foster and develop the application of Islamic principles, law and tradition to the transaction of financial, banking and related business affairs and to promote investment companies, enterprise and concern which shall themselves be engaged in business activities as are acceptable and consistent with Islamic principle, law and traditions. (M.Fahim Khan:1983) A fifth objective of the Islamic financial is to provide Shariah compliant and prudent banking opportunities, hence providing an opportunity to Muslims to do their banking transactions in a halal way. In other words, this is just an effort to avoid Riba and other prohibited elements from commercial and banking transactions. 5.0 Philosophy of Islamic Banking The Islamic Banking and financial system is part and parcel of Islamic economics system. Therefore, Islamic banking and financial system is founded on the basis of Islamic economic philosophy. The foundations of the Islamic economy lie in the following basic principles derived from various injunctions of the Quran and the Sunnah. There are three philosophical foundation of Islamic Banking which is tauhid, khalifah and adalah. 5.1 Tauhid (Unity of God) Tauhid is the essence of Islamic teaching. It is about the recognition that there is no gods, except the God. The God is One. It implicates that human being only submits him/her self to the will of God that implicitly recognizing the Gods sovereignty. The Quran says: to Him belongs whatever is in the heavens and on earth, and all between them and beneath the soil Tauhid signifies mans commitment and total submission to Allah, in all aspects of his life. The other part of tauhid gives men the sense of being equals, free and independent of one another while they are equally dependent on Allah. It teaches men how to relate and deal with other fellowmen in the light of his relationship with Allah. Thus, it implies the principles of brotherhood, that each man is brother to other men and they are equal partner (Abdul-Hamid A. Abu Sulaiman: 1976). 5.2 Khalifah (vicegerency) Khalifah means obligation, obligation to Allah the Creator and The Owner of The universe. Man is the best of creations Human beings are the only species having been endowed with the qualities of conscience, intelligence, thinking and choice in order to fulfil his mission as Gods vicegerent. His main purpose of living in this world is to serve God and Him alone. On the individual level, it means that man has to worship the one God, behave in an ethical manner and realize his higher tendencies. The concept vicegerency of man implies and stresses that man is not sovereign; the only sovereign is Allah the exalted. Man is responsible for the implementation of Allahs sovereignty through the laws given by Him. 5.3 Adalah (ownership) Adalah is an ownership. This means the authority and power of possession. Based on this principle, man is neither the absolute owner nor the total possessor of the earth and its resources. Absolute power and complete possession belong only to Allah who has created man and all other creatures. Mans ownership then is limited to whatever Allah has wisely willed and to the capacity of his intellect, authority and freedom granted to him. Mans ownership in his analogy, is limited, borrowed, conditional and entrusted. (Seyyed Mahmood Taleqani:1983). 6.0 The Principles of Islamic Financial Institutions Islamic financial institutions have an important role to play in the light of Islamic teachings in order to please Allah (SWT). The fundamental principle of Islam states that the separation between temporal and religious matters is not permitted, which implies the compliance with Shariah as the basis for all aspects of life. This compliance covers not only religious worship but also business practices. Islamic financial institutions must operate within the framework of the religion, based on Quran and Sunnah. Hence their activity, transactions and behaviour must be in line with these principles. The basic principles that Islamic financial institutions must follow are: 6.1 Business Framework Islamic Banking System is based on Shariah Laws. Syariah laws ensure adherence to Islamic laws and provide guidance while the conventional financial systems is based only on man-made laws and no religious laws. 6.2 Interest (Riba) Interest (riba) in Islam is forbidden. Hence, all banking activities must avoid interest. Instead of interest, the bank earns profit (mark up) and fees on financing facilities it extends to customers. Also, depositors earn a share of the banks profit as opposed to interest. Within Islamic financial institutions, it is not allowed to charge for the mere use of money. Islamic financial institutions must trade in real assets or services whereas conventional financial institutions trade in money (buying money from depositors and selling money in the form of loans). Most the activities of the conventional financial institutions are interest based financing. 6.3 Prohibited activities Shariah prohibits using in certain activities. Islamic financial system must encourage and develop the applications of Islamic principles and law to transactions of finance, banking and business affairs. It controls the engagements of investment companies in activities that are tolerable and consistent with the Shariah law thus preventing the occurrence of activities forbidden by Islam. Only halal are allowed. Islamic financing will, therefore, be inappropriate in financing any enterprise involved in any type of activities that is unlawful in Islam or harmful mankind. For example, Islamic Bank does not finance liquor manufacturing, transportation, storage or distribution companies. 6.4 Contractual Relationship Contractual relationship in Islamic financial institution depends upon the nature of transaction. It could be a seller-buyer relationship (Murabahah), a lessor-lessee relationship (Ijara), a partnership (Musharakah) or a creditor-debtor relationship (Qard Hassan). In conventional financial institutions has only one relationship which is a creditor-debtor relationship (Qard Hassan) 6.5 Participation and risk sharing Another principle of Islamic finance is based on partnership and the sharing of risks. Islamic financial institutions offer investor/depositors participation in risk sharing type packages rather than fixed interest on deposit. Any risk-bearing instruments reflecting a real asset and earning a variable rate of return tied to the performance of the asset is considered to be consistent with Islamic law. In contrast to conventional banking principles what is condemned in Islamic banking is the notion of a risk free reward or return. The Islamic financial system employs the concept of participation in the enterprise, utilizing the funds at risk on a profit and loss sharing basis, thus encouraging better resource management. Management of the enterprise can be in one of several forms depending on whether the financing is through Mudarabah, Musharaka and so on. The relation of investors to the institution is that of partners whereas that of conventional banking is that of creditor investor. The Islamic financial system is based on equity whereas the conventional banking system is loan based. 7.0 Modern banking operations according to shariah principles. Islamic banking refers to a system of banking or banking activity that is consistent with the principles of Islamic law (Shariah). The principles were used as the basis for a flourishing economy in earlier times, it is only in the late 20th century that a number of Islamic banks were formed to apply these principles to private or semi-private commercial institutions within the Muslim community. The first modern experiment with Islamic banking was undertaken in Egypt under cover without projecting an Islamic image. The first modern commercial Islamic bank, Dubai Islamic bank opened in 1975. In the early years, the products offered were basic and strongly founded on conventional banking products. However, in the last few years, the industry is starting to come up with strong development in new products and services. Islamic Banking is growing at a rate of 10-15% per year and with signs of consistent future growth. Islamic banks have more than 300 institutions spread over 51 countries, including the United States. It is estimated that over US$822 billion worldwide shariah-compliant assets are managed according to The Economist (Wikipedia) Islamic banking has the same purpose as conventional banking except its operates in accordance with the rules of Shariah, known as Fiqh al-Muamalat (Islamic rules on transactions). The basic principle of Islamic banking is the sharing of profit and loss and the prohibition of riba (usury). Common terms used in Islamic banking include profit sharing (Mudharabah), safekeeping (Wadiah), joint venture (Musharakah), cost plus (Murabahah), and leasing (Ijarah).(Wikipedia) Islamic banking is restricted to Islamic acceptable transactions, which exclude those involving alcohol, pork, gambling, etc. The aim of this is to engage in only ethical investing and moral purchasing. 7.1 Baial Inah (sale and buy-back agreement) Bai al inah is a financing facility with the underlying buy and sell transactions between the financier and the customer. The financier buys an asset from the customer on spot basis. The price paid by the financier constitutes the disbursement under the facility. Subsequently the asset is sold to the customer on a deferred-payment basis and the price is payable in installments. The second sale serves to create the obligation on the part of the customer under the facility. 7.2 BaiMuajjal (Credit Sale) Literally bai muajjal means a credit sale. Technically, it is a financing technique adopted by Islamic banks that takes the form of murabahah muajjal. It is a contract in which the bank earns a profit margin on the purchase price and allows the buyer to pay the price of the commodity at a future date in a lump sum or in installments. It has to expressly mention cost of the commodity and the margin of profit is mutually agreed. The price fixed for the commodity in such a transaction can be the same as the spot price or higher or lower than the spot price. Bai muajjal is also called a deferred-payment sale. However, one of the essential descriptions of riba is an unjustified delay in payment or either increasing or decreasing the price if the payment is immediate or delayed. 7.3 Musharakah (joint venture) Musharakah is an agreement between two or more partners, whereby each partner provides funds to be used in a venture. Under Islamic jurisprudence, Musharakah means a join enterprise formed for conducting some business in which all partners share the profit according to a specific ratio while the is shared according to the ratio of the contribution. Profits made are shared between the partners according to the invested capital. In case of loss, each partner loses capital in the same ratio. If the Bank provides capital, the same conditions apply. It is this financial risk, according to the Shariah, that justifies the banks claim to part of the profit. A working partner gets a greater profit share compared to a sleeping (non-working) partner.(Muhammad Imran Ashraf Usmani,2002) 7.4 Mudarabah A special kind of partnership where one partner gives money to another for investing it in a commercial enterprise. The investment comes from the first partner who is called rabb-ul-mal, while the management and work is an exclusive responsibility of the other, who is called mudarib and the profits generated are shared in a predetermined ratio. The Mudarabah (Profit Sharing) is a contract, with one party providing the capital and the other party providing its specialist knowledge to invest the capital and manage the investment project. Profits generated are shared between the parties according to a pre-agreed ratio. 7.5 Murabahah This concept refers to the sale of goods at a price, which includes a profit margin agreed to by both parties. The purchase and selling price, other costs, and the profit margin must be clearly stated at the time of the sale agreement. The bank is compensated for the time value of its money in the form of the profit margin. This is a fixed-income loan for the purchase of a real asset such as real estate or a vehicle, with a fixed rate of profit determined by the profit margin. The bank is not compensated for the time value of money outside of the contracted term, meaning the bank cannot charge additional profit on late payments, however, the asset remains as a mortgage with the bank until the default is settled. 7.6 Musawamah Negotiation of selling price between two parties without reference by the seller to the costs or asking price of the goods or item. While the seller may or may not have full knowledge of the cost of the item being negotiated, they are under no obligation to reveal these costs as part of the negotiation process. This difference in obligation by the seller is the key distinction between Murabahah and Musawamah with all other rules as described in Murabahah remaining the same. Musawamah is the most common type of trading negotiation seen in Islamic commerce. 7.7 Bai salam Means a contract which is made advance payment for goods that to be delivered later. The seller undertakes to supply some specific goods to the buyer at a future date in exchange of an advance price fully paid at the time of contract. It is necessary that the quality of the commodity intended to be purchased is fully specified leaving no ambiguity leading to dispute. The purpose of use Salam is to meet the need of small farmers who need money to grow their crops and to feed their family up to the time of harvest. Otherwise, it is important for import and export. Under Salam, it is allowed for them to sell the goods in advance. After receiving their cash price, they can easily undertake the aforesaid business. Salam is beneficial to the seller because he receive the price in advance and it was beneficial to the buyer because the price in Salam is lower than the price in spot sales. 7.8 Ijarah Means lease, rent or wage. Generally, Ijarah concept means selling the benefit of use or service for a fixed price or wage. Under this concept, the Bank makes available to the customer the use of service of assets / equipments such as plant, motor vehicle. 7.9 Ijarah wal iqtina A contract under Islamic bank provides equipment, building, or other assets to the client against an agreed rental together with a unilateral undertaking by the bank or the client. At the end of the lease period, the ownership in the asset would be transferred to the lessee. The undertaking or the promise does not become an integral part of the lease contract to make it conditional. The rentals as well as the purchase price are fixed in such manner that the bank gets back its principal sum along with profit over the period of lease. 7.10 Qard Hassan (good loan/benevolent loan) This is a loan extended on a goodwill basis, and the debtor is only required to repay the amount borrowed. However, the debtor may pay an extra amount beyond the principal amount of the loan without promising it, as a token of appreciation to the creditor. In the case that the debtor does not pay an extra amount to the creditor, this transaction is a true interest-free loan. Some Muslims consider this to be the only type of loan that does not violate the prohibition on riba, since it is the one type of loan that truly does not compensate the creditor for the time value of money. 7.11 Wadiah(safekeeping) In Wadiah, a bank is deemed as a keeper and trustee of funds. A person deposits funds in the bank and the bank guarantees refund of the entire amount of the deposit, or any part of the outstanding amount, when the depositor demands it. The depositor, at the banks discretion, may be rewarded with Hibah as a form of appreciation for the use of funds by the bank. Conclusion Today, Islamic banking practice had already worldwide. Almost all conventional bank in the world applied Islamic banking practice which is suitable to apply even the whole world having the economic crisis. Shaykh Yusuf DeLorenzo, a Virgina-based Islamic scholar says in the book of Islamic Banking-Finance in South-East Asia a financial system without interest is more interested. Islamic banking that is based on Shariah compliants prohibits an interest which is powerful tool of exploitation of one sector of society by another (Angelo M. Venardos). Shariah compliants have adopted principles of Islamic banking and finance to guide the people in any transaction that people do. The principles are such as Baial Inah (sale and buy-back agreement), Baial Inah (sale and buy-back agreement), Musharakah (joint venture), Mudarabah, Murabahah, Musawamah, Bai salam, Ijarah, Ijarah wal iqtina, Qard Hassan (good loan/benevolent loan), and Wadiah(safekeeping). But even Islamic banking practice now is worldwide and almost all people accept Islamic banking some issues have raised up example, why people non-Muslims more prefer choose Islamic banking rather than Muslims selves? Even though Islamic banking practice is the first built at Islamic countries with the populations are among Muslims example of Malaysia. This issue that related to Muslims people are such an embarrassed to Islam self cause the Muslims does not supported Islamic banking practice that now already spread to the world. The Muslims thought that Islamic banking charged highest interest rather than conventional system. This narrow thought must be cleared from their mind as not, Islam will down fall as before. Reference Basic story https://www.islamic-finance.com/item36_f.htm banking business past and present (function() { var scribd = document.createElement("script"); scribd.type = "text/javascript"; scribd.async = true; scribd.src = "https://www.scribd.com/javascripts/embed_code/inject.js"; var s = document.getElementsByTagName("script")[0]; s.parentNode.insertBefore(scribd, s); })() Mohd. Ali Muhamad Don:Mengembalikan Kegemilangan Baitul Mal seperti era Khalifah Umar https://www.utusan.com.my/utusan/info.asp?y=2010HYPERLINK https://www.utusan.com.my/utusan/info.asp?y=2010dt=1105pub=Utusan_Malaysiasec=Rencanapg=re_03.hhtmHYPERLINK https://www.utusan.com.my/utusan/info.asp?y=2010dt=1105pub=Utusan_Malaysiasec=Rencanapg=re_03.hhtmdt=1105HYPERLINK https://www.utusan.com.my/utusan/info.asp?y=2010dt=1105pub=Utusan_Malaysiasec=Rencanapg=re_03.hhtmHYPERLINK https://www.utusan.com.my/utusan/info.asp?y=2010dt=1105pub=Utusan_Malaysiasec=Rencanapg=re_03.hhtmpub=Utusan_MalaysiaHYPERLINK https://www.utusan.com.my/utusan/info.asp?y=2010dt=1105pub=Utusan_Malaysiasec=Rencanapg=re_03.hhtmHYPERLINK https://www.utusan.com.my/utusan/info.asp?y=2010dt=1105pub=Utusan_Malaysiasec=Rencanapg=re_03.hhtmsec=RencanaHYPERLINK https://www.utusan.com.my/utusan/info.asp?y=2010dt=1105pub=Utusan_Malaysiasec=Rencanapg=re_03.hhtmHYPERLINK https://www.utusan.com.my/utusan/info.asp?y=2010dt=1105pub=Ut usan_Malaysiasec=Rencanapg=re_03.hhtmpg=re_03.hhtm Islamic Banking in Malaysia https://www.islamic-world.net/islamic-state/malay_islambank.htm History of Banking https://en.wikipedia.org/wiki/History_of_banking

Theme of The Jungle Essay - 794 Words

In the book The Jungle by Upton Sinclair; this was first published by Fine Creative Media Inc. in 1906 (edition I read was published in 2003) it discuses life as an immigrant and how immigrants foresaw the American dream and how they tired to achieve it. There where many themes for the book. The theme that I took was most important was that life on the other side is not always better then what one has. This theme can be shown many different ways throughout the book. It is shown through the plot and through many examples of event that occurred though the book. In The Jungle a young man named Jurgis Rudkus moves to the United States landing in Chicago, with his family looking for a better life then what they had in Lithuania. They†¦show more content†¦As the story goes on Ona and her baby Antanas both die. Ona during child birth and Antanas will drowned in front of the house. Jurgis will then move out of the city to the suburbs leave all of his family behind. Later returning to Chicago and getting himself into a lot of trouble with the law. After some time of being in and out of jail Jurgis finally gets a job working at a hotel. He will become back in touch with his family that he left and begin to support them on what he makes by working at the hotel. As I read the book I felt more and more sorry for Jurgis and his family. The struggles and hardships that they went though as well as what other immigrants where going through at the time. I feel that people during this time where treated very unfairly and when it came to the meat packing companies I think that the cows pigs had a better life. This is because the animals where fed every day no matter what because the people that wanted to sell them needed for them to look like that had a lot of meat on them not just skin and bone. The pay that the people working in these plants made did not always pay for the rent of their one rat infested room, let alone to put food on the table. Some of the ways I feel that the workers where treated badly in this book are first when Jurgis notices the speeding upShow MoreRelatedTheme Of The Jungle2072 Words   |  9 Pages When Upton Sinclair spoke about his book, The Jungle, written in 1906, he said I aimed at the publics heart, and by accident I hit it in the stomach. (p. v). Never a truer word was spoken. The Jungle highlighted three main themes. The first was the experience of the immigrants once they arrived in the United States, including the harsh conditions under which they lived. The second was the experience of the immigrants once they entered the labor force, specifically at meat packing plant inRead MoreTheme Of Capitalism In The Jungle1009 Words   |  5 Pages Upton Sinclair wrote the book The Jungle where he discussed life as an immigrant. He tells of how immigrants envisioned the American dream and told of their attempts of achieving the dream that they were told of. In The Jungle, Sinclair shows the American Dream as freedom, respect, and equality. He shows how immigrants heard of America and they saw it as everything they ever wanted in life. However, when immigrants came to America realty hit and they realized that the American dream is all a fraudRead MoreSexuality Is A Very Prominent Theme Throughout Rubyfruit Jungle1357 Words   |  6 PagesSexuality is a very prominent theme throughout Rubyfruit Jungle. Molly faces the assumption from the world around her that she is heterosexual because she does not seem to fit into the stereotypical clichà ©s of a Lesbian. As a child, after she, Ted, and Leroy found out Jenna was dying, Molly wanted to stay in Leroy’s room to comfort him, â€Å"but people said it wasn’t right†¦Ã¢â‚¬  (Brown). After Jenna died, Leroy cried and yelled about how unfair it was. Carrie comforted him the best she could, but still didRead MoreThe Jungle Of Upton Sinclair1670 Words   |  7 Pages Amanda Poe The Jungle Paper Dr. Barnhart 03/10/17 The Jungle Upton Sinclair came from a life of struggle. He did not start school until after he was ten years old, but was in college by the age of fourteen. He attended City College of New York until he was eighteen, and then he attended Columbia postgraduate. He studied literature, music, history, and philosophy. Sinclair’s childhood was a rough one. He saw two different sides to social class. Since his father was an alcoholic and wouldRead MoreRichard Connell s The Most Dangerous Game1191 Words   |  5 Pagesmost exciting. Rainsford manages to out-smart Zaroff and is waiting in the General’s bedroom when he returns. The authors’ use of characters: Sanger Rainsford, General Zaroff, Whitney, and Ivan, setting: ship, jungle, and island, and symbolism: the island and jungle, help to develop the theme, one who hunts will someday become the hunted. For instance, the author’s use of characters: Sanger Rainsford, General Zaroff, Whitney, and Ivan, help to give the story meaning. Sanger Zaroff, a world-renownedRead MoreThemes In Fire And Flood1244 Words   |  5 Pageswere taken place in the middle of a jungle, desert, and mountain ranges where many dangers were presented. She faced many situations along this expedition, but she never abandoned the thought of being able to help her brother. One theme that can be supported throughout the book by many critical scenes is that it takes a lot of strength and perseverance to make sacrifices for a person that is important. In the book Fire and Flood by Victoria Scott, the theme was majorly supported in many specificRead MoreComparing the Poems City Jungle by Pie Corbett, London by William Blake and Londinium by Catatonia910 Words   |  4 PagesComparing the Poems City Jungle by Pie Corbett, London by William Blake and Londinium by Catatonia City Jungle by Pie Corbett, London by William Blake and Londinium by Catatonia are poems that share the same theme: cities and city life. They each have negative opinions of cities and similar themes and messages, that cities are unpleasant. The poems are however, vastly different in their style; City Jungle has a fun atmosphere, whereas Londinium and London haveRead MoreKurtzs Affect on Other Characters in Heart of Darkness Essay568 Words   |  3 Pagesthe story. Kurtz is one of these characters. Kurtz is introduced towards the end of the story but he has an affect on the action, the theme and the other characters development even when he isn’t present. Kurtz is a power hungry man who achieved his power by getting into the ivory business and using shady techniques. He also befriended the natives in the jungle who basically become his slaves. Kurtz is so well known and put on such a pedestal, that no one would ever try to over rule him. ThereforeRead MoreComparative Essay1096 Words   |  5 Pagesthat was later on an amazing inspiration for the director Francis Ford Coppola, that based his film on Conrad’s novel. Different parallels can be drawn when comparing and contrasting these two works. These differences and similarities can be seen in themes, characters, events and other small snippets of information including anything from quoted lines to strange actions of the main characters. To start with, is important the set in context regarding the setting of both stories. â€Å"Heart of Darkness†Read MoreEssay on The American Dream in The Jungle by Upton Sinclair, Jr.967 Words   |  4 Pagespolitics† (dictionary.com). Upton Sinclair gained fame in the early 1900’s from his muckraking novel, The Jungle, describing the life of a young Lithuanian immigrant, Jurgis, living in Chicago in pursuit of the American dream. Jurgis found out that America isn’t as good as it appeared; with higher wages came more expensive goods, and with cheaper houses came higher interest rates. The Jungle, a fictional novel, tells of the real horrors of working in a Chicago meat packing factory. Sinclair had gone

Essay about Intercultural Communication - 1725 Words

Introduction The rapid technological evolution and the growth in the population around the world are playing considerable role in creating new levels of intercultural communicate both locally and globally. People now can get the information from any spots on the planets easily through many televisions channels. Also, gaining huge amount of knowledge from every part around the world is provided by computer networks. Computer networks facilitate the communications as well. Beside create new opportunities, technological and demographic evolutions provide significant challenges to the people. Communicating successfully in another language depends on shifting the frames of reference, norms, and assumptions (Kinzer, 2003). In other words, when†¦show more content†¦Also, impart not only reading and writing, but also professional and technical knowledge, this can lead to a fuller participation in economic and civic life (Cummins, 1994). On the other hand, cultural literacy underlines the necessi ty for shared experiences and points of reference among an interpretive society in order to comprehend texts adequately. As opposed to functional literacy which focuses on skills, cultural literacy requires familiarity with a particular knowledge that is essential to meaningful text interpretation in particular cultural contexts (Irvin et. al, 1994). Furthermore, critical literacy is a sociocultural method that encourages individuals to analyse texts. It is crucial in the learning of reading, because it enables people to comprehend how a text works to position and who get benefits from this positioning. According to Cummins (1994), learners should not only read the word, but read the world. Reading the word creates limitations in the ways that individuals can understand the world. Critical literacy helps individuals to engage critically with how they interpret and apply the knowledge in the society. Concepts of literacy There is a wide range of theorists and researchers agreed on necessity exceed the usual functional literacy conception by define literacy in relation to particular social and cultural context (Leu et. al., 2004). According to Street (2001),Show MoreRelatedIntercultural Communication21031 Words   |  85 PagesI. INTERCULTURAL COMMUNICATION. FRAMEWORK ...the single greatest barrier to business success is the one erected by culture. Edward T. Hall and Mildred Reed Hall Why study Intercultural Communication? Cultural diversity and multiculturalism are the realities of everyday life for almost everyone. The growth of interdependence of people and cultures in the global society of the twenty-first century has forced us to pay more attention to intercultural issues. In order to live and functionRead MoreSolving Intercultural Communication Problems1447 Words   |  6 Pages Sherwood Fleming s Intercultural Communication Insights . Home Services » CLEAR Method My Book Articles 50 Actions Glossary About QA Contact . Solving Intercultural Communication Problems You are here:Home  » Intercultural Communication  » Solving Intercultural Communication Problems intercultural comunication problemsAre you are a manager or leader of an intercultural team? Or do you work within an intercultural company? If so, are you experiencingRead MoreIntercultural Communication : Communication And Communication1676 Words   |  7 PagesJasmin Starr-Mullins COM 440 W Final Term Paper Intercultural Communication The terms Culture,Globalization, and Communication are terms that we might hear quite often, but what is Intercultural communication? According to the dictionary, Intercultural Communication is often described as the interaction and exchange of communication between people of different cultures. Intercultural Communication dates back to the first interaction of mankind. Edward T. Hall, an American anthropologistRead MoreIntercultural Interpersonal Communication And Intercultural Communication Essay1301 Words   |  6 Pagesconcepts, one of which being the differences between intercultural and interpersonal communication. Intercultural communication is defined as â€Å"the process that occurs when members of two or more cultures or co-cultures exchange messages in a manner that is influenced by their different cultural perceptions and symbol systems, both verbal and nonverbal† (Adler et al., 2015, pg. 40). While most interactions seem to have some sense of intercultural aspect due to the great diversity not only in race butRead MoreIntercultural Communication And Nonverbal Communication Essay1537 Words   |  7 PagesIntroduction Intercultural communication is a complex concept that encompasses and links to many other theories such as racism and verbal and nonverbal communication. Differing languages can dramatically affect intercultural communication between individuals due to language barriers however, due to some individuals uneducated and ignorant understanding of differing languages, it can also have other, more serious and negative consequences such as racism and discrimination of others. The links betweenRead MoreIntercultural Communication And Interpersonal Communication844 Words   |  4 PagesIntercultural communication is defined as when people communicate with one another who have different cultures. They may differ because of their languages, beliefs, values, and behavioral characteristics (Bennett, 1998). The intercultural communication plays a key role in globalization. It will help organizations to have a long-term success if they can manage the cultural differences and intercultural cooperat ion effectively to conflicts. Increasing shared knowledge and dealing with miscommunicationRead MoreIntercultural Communication : Communication And Communication975 Words   |  4 PagesBarriers to intercultural communication in the classroom settings ,the reason for picking this is because there are so many interesting ways you can turn this to in this paper .In a way that I am going to focus on the classroom setting of the barriers to intercultural communication between different cultures is a major topic for communication theorists. Today, both cultural and communication has evolved considerably and have become interdependent of one another. Intercultural communication is not new;Read MoreAnalyzing Intercultural Communication : An Intercultural Conflict1940 Words   |  8 PagesFilms are considered to be a very valuable tool when examining intercultural communications, because they depict the way people and cultures communicate their identities. 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While it can be easy to blame the other person for the communication issue, it’s very important to remember thatRead MoreEssay on Intercultural Communication2168 Words   |  9 Pageswe live in a culturally diverse society due to globalization. As our world grows, expands and become increasingly more interconnected, the need for effective interpersonal communication among differing cultures has become apparent. When people from different cultures interact with one another there is intercultural communication because different cultures create different interpretation and expectations about what is seen as competent behaviors that will enable the construction of shared meanings

Music and non

Music and non-violence Essay Both The Battles and Gandhi have fans that respond in intense physical ways ended their reach. The Battles fans followed the long hair fashion for men. Before fans started copying them, hairstyles had a lot to do with personal identification (Taylor). Fans also followed Battle boots, and colorful cloth clothing. Two movies, A Hard Days Night and Help! , were hugely popular and resulted in a plethora of Battles merchandise, including wigs, clothing, dolls, and lunch pails, but it was the music that fans craved (American History). When fans watched The Battles in movies and concerts they followed everything about them. Fans wanted to be Just like them in every way possible. On a different note, Mahatma Gandhi abandoned his western- style suit and tie in favor of the traditional Dhoti, transforming himself from a privileged attorney to a Hindu ascetic (Teller). When Gandhi started to wear his lose fit clothing his followers started to wear lose fit clothing also. Both The Battles and Gandhi had enemies. Gandhi followed his own philosophy. It is hard to believe what anyone can have against Gandhi. He was entirely harmless. Gandhi did not have political power and never forced anyone to follow his philosophy. Gandhi embraced paragraph, requiring a rejection of material sessions that hindered spiritual development (an extension of his belief that life close to earth was best); and he embraced samba, requiring that he work his deeds without emotion, without any desire to defeat an enemy (American History). Sandhogs enemies called him the destroyer of India, a betrayer because he made up his own rules to follow his life by. Many people hated his way of living and wanted to kill him. It is almost impossible to realize how much hatred and violence might have been unleashed from Gandhi trying to create and spread his philosophy to others (Black). Riots erupted between Sandhogs followers and enemies. Both sides thought they were right and the other side was completely wrong. On the other hand, The Battles had enemies of their own. Barbers disliked hippie fashions more than anyone. In the sixties it was not acceptable for boys to wear long hair or to wear colorful clothing and The Battles promoted all of that (American History). Besides the fashion trends in music, The Battles were hated because they demonstrated against United States policies, ecology, and wars and The Battles followers followed behind them closely, and The Battles enemies followed even closer. Gandhi, The Battles and their fans all practiced non-violence. Gandhi organized peaceful protests. He taught his followers to accept their punishment for their actions Mahatma Gandhi believed the best way to oppose tyranny was through non- music and non-violence By handlebars stated was about The untouchables, they were children of God in Sandhogs eyes. American History). Untouchables were the lowest caste in Indians society. Gandhi wanted to get rid of the caste system and make India a united country without discrimination. Gandhi used peaceful forms of protest by not fighting back. Gandhi and his followers started fasting when protests broke out (Teller). When protesters did fight back he would sometimes go on hunger strikes and not eat for weeks a t a time. The Battles found out instead of taking illegal drugs there is a better way to escape this world; The Battles John Lennox, Paul McCarthy and George Harrison discovered last night that the secret of real happiness is all in the mind, if we dont reach a state of understanding of how we can escape the world situation, well Just fade away. The only real escape is meditation. (Taylor) The Battles were in the Counter-culture Movement and they influenced their fans to Join it. The counter-culture movement as a lifestyle of the young, who reject or oppose the dominant values and behavior of society. .uf8c651884c1ba09afc6a628128342d59 , .uf8c651884c1ba09afc6a628128342d59 .postImageUrl , .uf8c651884c1ba09afc6a628128342d59 .centered-text-area { min-height: 80px; position: relative; } .uf8c651884c1ba09afc6a628128342d59 , .uf8c651884c1ba09afc6a628128342d59:hover , .uf8c651884c1ba09afc6a628128342d59:visited , .uf8c651884c1ba09afc6a628128342d59:active { border:0!important; } .uf8c651884c1ba09afc6a628128342d59 .clearfix:after { content: ""; display: table; clear: both; } .uf8c651884c1ba09afc6a628128342d59 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .uf8c651884c1ba09afc6a628128342d59:active , .uf8c651884c1ba09afc6a628128342d59:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .uf8c651884c1ba09afc6a628128342d59 .centered-text-area { width: 100%; position: relative ; } .uf8c651884c1ba09afc6a628128342d59 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .uf8c651884c1ba09afc6a628128342d59 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .uf8c651884c1ba09afc6a628128342d59 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .uf8c651884c1ba09afc6a628128342d59:hover .ctaButton { background-color: #34495E!important; } .uf8c651884c1ba09afc6a628128342d59 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .uf8c651884c1ba09afc6a628128342d59 .uf8c651884c1ba09afc6a628128342d59-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .uf8c651884c1ba09afc6a628128342d59:after { content: ""; display: block; clear: both; } READ: We'd rather have a bowl of Coco pops EssayGandhi and The Battles lead their followers to non-violent actions with meditation, and fasting. Both had enemies, but that always comes along when they had so many people following their path. The Battles and Gandhi had fans that copied their physical ways more than they expected. The Battles fans copied their hairstyles and Sandhogs followers copied his lose white fit clothing. When you look at them from far away it does not seem like they have anything in common but when you break it down, everything has something in common with one another.