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 Islamic fintech and hopefully be the best remedy in overcoming the economic slowdown.
In a recent statement made by Bank Negara Malaysia (BNM), the Malaysian economy declined by 17 per cent in the second quarter of 2020, due to the sudden cessation of economic activity when the country was placed under the Movement Control Order starting on 18 March 2020. Certain industries have partly recovered given the never-ending support by the government and utilising of technological advancement.
The government initiatives in undertaking the Corvid-19 pandemic impact is quite impressive from the implementation of the moratorium, the Prihatin Rakyat Economic Stimulus Package for the B40 income group, to the Short-term Economic Recovery Plan (PENJANA).
It is expected that by the end of the year or so, the country will achieve a significant improvement and fully recover by the second quarter of 2021.
The government support, financial infrastructure and technological ecosystem are the advantages that Malaysians should also be proud of that contribute to the success thus far. The world has been astounded with Malaysia’s achievement in Islamic finance, as with the Islamic fintech. Fintech or financial technology is one way or another that can be exploited to plot Malaysia back in the international limelight. We need to do something different in approaching fintech by adding some values as prescribed by Islam. For instance, the government’s efforts and initiatives should be regarded as part of Islamic fintech approach. Indeed, the digital economy is not the talking point, but rather being about the need to rethink on the economic values.
Market is an outcome of how businesses interact. It is about capital-labour relations, internal governance on how businesses behave matters. As famously quoted by Warren Buffet, “Price is what you pay, value is what you get.” We want to pay less but expect maximum value.
Indeed, we have experienced value deterioration for example the recent fiat currency due to the pandemic. According to economists, this is among others, the reason why the price of gold has reached new record high. Most investors diverted their value investment to the precious metal as the sovereignty of paper money was at stake particularly the USD and EURO. These currencies of the US and the European Union have been in an economic suppression.
We cannot afford any debt to fund economic recovery. Indeed, Islam does not encourage debt. The country has enough overleveraging in the expenses of development. Luckily, we are not entrapped in the debt-based initiative. We all know that China’s expansion involves offering funds to needy countries such as Djibouti, Tonga, Maldives, the Republic of the Congo, Kyrgyzstan, Cambodia, Niger, Laos, Zambia, Samoa, Vanuatu and Mongolia. In return, the countries need to obey the demands made effecting their exclusive rights, for example, in the control of the ports on their lands. China will repeat history from being the first country to use “flying currency” in note form in the year 806 AD, the real paper money in 1023AD during the Song dynasty and now being the first country to fully adopt its Yuan digital currency, not only throughout China but probably to be a new international digital currency as well.
Be it coin, cash, card or code (QR code), the real value is not the paper or numbers but our worth. It is insane if we wake up in the morning doing the same thing we do and expect different results. If we have never planted any seed, how are we going to harvest any fruit? To plant a seed, we surely need priceless human sense and value. Success is a step of progress moving forward toward our goal.
We must set a goal to inculcate value in the economy. Gratefulness and compassion, as human exclusive values, will surely boost the relationship between the government and people, and provide the economic stability in the long run. Allah says “If you are grateful, I will add more (favours) unto you; but if you show ingratitude, truly My punishment is terrible indeed” (Ibrahim, [4]: 7). “If you reject (Allah), truly Allah has no need of you; but He likes not ingratitude from His slaves; if you are grateful, He is pleased with you” (al-Zumar [39]: 7).
In order to be grateful, one must realise what one has at hand. By extension, we must weigh the advantages of our country over others and appreciate them. One of the known hadiths which indicates an economic conundrum is on the question of how we obtain wealth and where we spend it on rather than how much we have kept it for ourselves at the expense of others. We need to rediscover the productive and economic value from humanity as prescribed by Islam. God consciousness, truthfulness, compassion, gratefulness and good deeds are the Islamic tenets which have their own economic values.
