{"id":28104,"date":"2020-09-22T14:17:19","date_gmt":"2020-09-22T06:17:19","guid":{"rendered":"http:\/\/www.ikim.gov.my\/new-wp\/?p=28104"},"modified":"2020-09-22T14:17:19","modified_gmt":"2020-09-22T06:17:19","slug":"islamic-fintech-reconsidering-new-economic-values","status":"publish","type":"post","link":"https:\/\/www.ikim.gov.my\/en\/islamic-fintech-reconsidering-new-economic-values\/","title":{"rendered":"Islamic Fintech: Reconsidering New Economic Values"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Malaysians\nshould be proud to welcome the first digital <em>Sukuk Prihatin<\/em>, the beginning of the sharing and trust economy in\nthe new digital edge. This marks a step forward in spurring the development\nprogramme and stimulus package to our economy. Sharing and trust are productive\ndeeds that have economic values in enjoining the spirit of Islamic fintech and hopefully\nbe the best remedy in overcoming the economic slowdown. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a recent statement made by Bank Negara Malaysia (BNM), the Malaysian\neconomy declined by 17 per cent in the second quarter of 2020, due to the sudden\ncessation of economic activity when the country was placed under the Movement\nControl Order starting on 18 March 2020. Certain industries have partly\nrecovered given the never-ending support by the government and utilising of technological\nadvancement. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The government initiatives in\nundertaking the Corvid-19 pandemic impact is quite impressive from the implementation\nof the moratorium, the Prihatin Rakyat Economic Stimulus Package for the B40\nincome group, to the <a href=\"https:\/\/penjana.treasury.gov.my\/index-en.html\">Short-term Economic Recovery Plan&nbsp;\n(PENJANA).<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is\nexpected that by the end of the year or so, the country will achieve a\nsignificant improvement and fully recover by the second quarter of 2021. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The government support, financial infrastructure and technological ecosystem\nare the advantages that Malaysians should also be proud of that contribute to\nthe success thus far. The world has been astounded with Malaysia\u2019s achievement\nin Islamic finance, as with the Islamic fintech. Fintech or financial\ntechnology is one way or another that can be exploited to plot Malaysia back in\nthe international limelight. We need to do something different in approaching\nfintech by adding some values as prescribed by Islam. For instance, the\ngovernment\u2019s efforts and initiatives should be regarded as part of Islamic\nfintech approach. Indeed, the digital economy is not the talking point, but rather\nbeing about the need to rethink on the economic values.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Market is an outcome of how businesses interact. It is about capital-labour\nrelations, internal governance on how businesses behave matters. As famously\nquoted by Warren Buffet, \u201cPrice is what you pay, value is what you get.\u201d We\nwant to pay less but expect maximum value. &nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Indeed,\nwe have experienced value deterioration for example the recent fiat currency\ndue to the pandemic. According to economists, this is among others, the reason\nwhy the price of gold has reached new record high. Most investors diverted\ntheir value investment to the precious metal as the sovereignty of paper money\nwas at stake particularly the USD and EURO. These currencies of the US and the\nEuropean Union have been in an economic suppression.&nbsp; <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We cannot afford any debt to fund economic recovery. Indeed, Islam does not\nencourage debt. The country has enough overleveraging in the expenses of\ndevelopment. Luckily, we are not entrapped in the debt-based initiative. We all\nknow that China\u2019s expansion involves offering funds to needy countries such as\nDjibouti, Tonga, Maldives, the Republic of the Congo, Kyrgyzstan, Cambodia,\nNiger, Laos, Zambia, Samoa, Vanuatu and Mongolia. In return, the countries need\nto obey the demands made effecting their exclusive rights, for example, in the control\nof the ports on their lands. China will repeat history from being the first\ncountry to use \u201cflying currency\u201d in note form in the year 806 AD, the real\npaper money in 1023AD during the Song dynasty and now being the first country\nto fully adopt its Yuan digital currency, not only throughout China but\nprobably to be a new international digital currency as well. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Be it coin, cash, card or code (QR code), the real value is not the paper\nor numbers but our worth. It is insane if we wake up in the morning doing the same\nthing we do and expect different results. If we have never planted any seed,\nhow are we going to harvest any fruit? To plant a seed, we surely need\npriceless human sense and value. Success is a step of progress moving forward\ntoward our goal.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We must set a goal to inculcate value in the economy. Gratefulness and\ncompassion, as human exclusive values, will surely boost the relationship\nbetween the government and people, and provide the economic stability in the\nlong run. Allah says \u201cIf you are grateful, I will add more (favours) unto you;\nbut if you show ingratitude, truly My punishment is terrible indeed\u201d (<em>Ibrahim<\/em>, [4]: 7). \u201cIf you reject\n(Allah), truly Allah has no need of you; but He likes not ingratitude from His\nslaves; if you are grateful, He is pleased with you\u201d (<em>al-Zumar<\/em> [39]: 7). <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In order to be grateful, one must realise what one has at hand. By\nextension, we must weigh the advantages of our country over others and\nappreciate them. One of the known hadiths which indicates an economic conundrum\nis on the question of how we obtain wealth and where we spend it on rather than\nhow much we have kept it for ourselves at the expense of others. We need to\nrediscover the productive and economic value from humanity as prescribed by\nIslam. God consciousness, truthfulness, compassion, gratefulness and good deeds\nare the Islamic tenets which have their own economic values.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Malaysians should be proud to welcome the first digital Sukuk Prihatin, the beginning of the sharing and trust economy in the new digital edge. This marks a step forward in spurring the development programme and stimulus package to our economy. Sharing and trust are productive deeds that have economic values in enjoining the spirit of&hellip;<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_analytify_skip_tracking":false,"_wpzoom_pinterest_image_url":"","_wpzoom_pinterest_hidden_image":"0","_wpzoom_pinterest_description":"","footnotes":""},"categories":[139],"tags":[],"class_list":["post-28104","post","type-post","status-publish","format-standard","hentry","category-new-straits-times","category-139","description-off"],"_links":{"self":[{"href":"https:\/\/www.ikim.gov.my\/en\/wp-json\/wp\/v2\/posts\/28104","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ikim.gov.my\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ikim.gov.my\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ikim.gov.my\/en\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ikim.gov.my\/en\/wp-json\/wp\/v2\/comments?post=28104"}],"version-history":[{"count":0,"href":"https:\/\/www.ikim.gov.my\/en\/wp-json\/wp\/v2\/posts\/28104\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ikim.gov.my\/en\/wp-json\/wp\/v2\/media?parent=28104"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ikim.gov.my\/en\/wp-json\/wp\/v2\/categories?post=28104"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ikim.gov.my\/en\/wp-json\/wp\/v2\/tags?post=28104"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}