JURISTIC VIEWPOINTS ON BAYC Al-C¡NAH IN MALAYSIA: A SURVEY

In Malaysia, Shar¥cah scholars at the supervisory levels have advocated bayc al-c¥nah as a mode of finance. Under the label of al-bayc, the contract of al-bayc al-c¥nah contains interest-bearing features, such as earning a contractual return without the implication of risk and value-addition. Seeking a broader consensus on the permissibility of bayc al-c¥nah is thus critical. This study shows that Malaysian Shar¥cah scholars outside the supervisory bodies do not fully support al-bayc al-c¥nah. The survey indicates that bayc al-c¥nah can be applied under a state of èar´rah or when the ma§laúah of the Muslim people is under threat, which is not the case in Malaysia. Since Shar¥cah scholars in Middle-Eastern countries have condemned bayc al-c¥nah, it is crucial that a diversification policy is pursued to invite greater participation of global Islamic funds in Malaysia.