Local News (Malaysian)

 

hajimokhtar1@hotmail.com 


THE NEED TO AVOID RELIGIOUS SENSITIVITIES - February 2005

There is an urgent need for Malaysians to avoid religious sensitivities. The proposed setting up of an Inter-Faith Council need careful observation over what are its motives, goals and objectives. Is it being set up to merely take Islam to task? Or is it keen in religious harmony. From past observations I have noted that the main issues raised in discussions have dealt with the subject of conversion to Islam, the giving up of Islam, marriage and a host of other very sensitive subjects. There are many web sites abusing our PM by free minded people which include some Muslim miscreants, something which decent Muslims in this country have never undertaken.

Many seem to have also overlooked the concessions made to non-Malays through the constitution as a result of Independence . Prior to British occupation this country was known as the Federated Malay States with Islam traditionally observed. With independence non-Malays enjoy far more privileges compared to many in other countries. Not only is citizenship denied but many minorities have to accept the reality of religious domination. We find this in India, England, France etc. If the issue is one of non-Muslim rights, then by all means go ahead, but if it is the objective of this council to question Islam's position in relation to western ideals, then this is not the country to be in. Such people should seek migration or be detained under the Internal Security Act.

However, in fairness I would say that the government is partly to be blamed over its failure to determine explicitly the position of Islam over many issues related to Islam and Muslims. For example the issue of "Murtad" - abandoning Islam.. To preserve the honour and dignity of Islam it would be better for everyone to realise and understand demarcation lines established in Islam over conversion, marriage and renegade from Islam. Once this is established non-Muslims should avoid getting into these situation, unless they are prepared to face the consequences. Until these issues are resolves society will always be of two minds.

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Are Islamic Banking Institutions Really Islamic? - 24th September 2002

How Islamic are Islamic Banking Institutions? This is a case study which should be taken up legally. I withdrew my Employees Provident Fund on retirement. The sum was RM32,000.00. I then placed this sum at CitiBank in a Time Deposit Account for about maybe two years. During that period I received "interest" as some would term it, however, I am of the view that one-point plus percent is actually my share as the bank would have utilised my money while it was with them. This is a debatable issue that has to be looked in at some other time.

I was advised by an officer that it would be more viable for me to place my money in an Islamic Trust Fund as it would earn me more money plus make my increases halal. It sounded like a good idea. So I closed my Time Deposit Account and had RM32,000.00 put into AM TABUNG ITTIKAL FUND.

As time passed by I became aware of the following:

  1. There there is No GUARANTEE over one's money at all. However, you are initially told that this Islamic Fund only takes up secured shares, usually covered by the Government i.e. Telecom, Electricity etc.
  2. At the very onset you are charged a one-time-fee of 7% of your Investment as Service Charges. I would consider this quite a good chunk out of RM32,000.00. Why is it not just a Flat Rate I do not know?
  3. ZAKAT is deducted from Return you receive as time goes by. The INCOME TAX DEPARTMENT is informed of deductions which are paid to them directly.
  4. Now this is the amazing part. At the moment the STOCK MARKET is Down. My ORIGINAL SUM which was RM32,000.00 (the share price at the time was 87 Cents) is now worth something like 75 cents, which makes my money now worth around RM27,000.00. However, DIVIDEND paid in at 6 Cents raised my shares to the value of RM39,000.00 but in real terms on withdrawal now at RM29,000.00. On top of this I am taxed Zakat of a sum of RM20.52!
  5. This is indeed AMAZING! You are actually LOSING MONEY and yet you are TAXED ZAKAT!

Something is terribly wrong here with this system, thus my question: Are Islamic Banking Institutions Really Islamic? Or are they mere conversions from Conventional Banking practices?

  1. As I see it, the Bank has nothing to lose. They collect your money and make investments. There is no guarantee whatsoever over the safety of your money. This is unIslamic. It is not even covered by a profit-loss sharing arrangement.
  2. On paper it shows I am making money but in real terms I am losing money. So how can I be taxed? How can I be taxed when I have not gained any money nor have withdrawn any such profits? Under Islamic Law, the goods have to be in my hands (with me directly) before it can be said that I have made a profit. In this case it is a mere transaction of worthless shares, which I do not even possess out of the account! This is a deception and unIslamic. At the end of the day I end up becoming a total loser!
  3. Islamic Banking is supposed to be different from the Conventional Banking. It is supposed to be safe. It is supposed to assure you that all your money will not be lost. It is supposed to assure you of justice. It is not there just to take risk or to only make money. So I suggest that these issues are looked into by the relevant authorities. Otherwise it is just a farce, where terminology has been created to overcome obstacles just to give things an Islamic outlook. It is similar to taking a rotten house and giving it a new coat of painting and then say: "This is a new house". q Haji Mokhtar Stork 

The following was received from Sahib Mustaqim Bleher in response to my query:

 I also of the view that so-called Islamic banks are about as Islamic as the halal pork chop. They have indeed devised technicalities by which interest appears in a different guise. However, the whole issue is more complex than you suggest. To start with the definitions of "riba" (usury/interest), there is the hadith stating "every loan which accrues a benefit is usury". So a loan, the purpose of which is after all to help somebody in hardship, must not result in a profit for the lender. Islamic banks often apply an administration charge to cover the devaluation of money over time, but this gets us in even deeper waters. 

Islamically, the various functions of money must be kept separate: it can be a store of wealth, a measure of wealth, or a means of exchange, but it should never be a multiple of these functions at one and the same time. This is why it was forbidden to exchange dry dates for fresh dates directly, and the prophet - peace be with him - instructed to instead sell one kind of dates for some other commodity, and then purchase the other kind of dates with this. 

The reason is that dates were a commodity on the one hand, but also used as money, and the two functions should not be mixed up or we would end up with a situation where an old pound note is only worth half a new pound note: the whole security build into a system of exchange would disappear and we would no longer have a firm standard, a bit like a meter changing in length depending on what fabric you are going to buy. 

Islamically, if money is to be invested (rather than given in charity or lend without charge for humanitarian reasons), this can be done through participation in a profitable business enterprise as a sleeping partner. However, there is a risk involved in that the investor would share both profits and losses. He must, therefore, be cautious in what kind of enterprise he invests. You are right that banks (including Islamic ones) don't carry any risks, and this one-sidedness makes the contracts described as Islamic anything but. Because they don't carry any risk themselves, they don't mind whom they lend to, they always get their return. 

Again, there is more to it than meets the eye, because in addition they lend what they don't actually have. For every pound in their tills, banks lend a multiple of fiat money created through mere book entry, but secure those loans against real assets. This is nothing short of fraud and more usurious even than the exorbitant interest rates of notorious loan sharks. The word Islamic in a bank's name does not make this practice any more halal, and the so-called Islamic banks get rich by the same fractional reserve method as the other banks. Again, because the money costs them nothing, they don't mind supporting the most useless and frivolous projects. The real economy of trade and enterprise has to a large degree been replaced by a false economy of book entry finance, insurance and reinsurance. This is why the money markets and stock exchanges are so fragile. The proper Islamic alternative lies in mutuals, where a limited number of individuals support each other in their borrowing needs and invest collectively in projects beneficial to the common good.  q

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Ignorance Of Islam In Relation To Fundamental Rights

The ignorance of some Muslims over the fundamental rights in relation to Islam (in Malaysia) is quite obvious when you read local media reports. Take for example the news report in the Straits Times Singapore dated 1st January 03 titled: Silent majority behind rising religious intolerance by Brendan Pereira (Malaysian Correspondent for the ST Singapore).

It was reported that a "civil servant (Muslim) may be left with no choice but to take legal action to protect his daughter from religious zealots in her school in Penang. A female disciplinary teacher told the civil servant's 11 year old daughter that she either wear a headscarf or not bother coming to school in the New Year. A visit to the headmaster' said that there is no compulsion but that Muslim girls are encourages to wear the 'tudung'. He said it was not a ministry directive but an initiative of the school.

Another issues that was highlighted in the article was the issue of shaking hands, where some male (Muslim) teachers refused to shake the hands of female students, citing religious reasons.

In analysing this article Muslims need to be weary of several issues at hand. These are as follows:

  1. News reporting in general has always had one objective and that is to discredit Islam. You will never find the media highlighting fundamental principles in Islam that should be adhered to by Muslims. Instead they have a knack of twisting issues. They will take the issue of dress and then relate it to another subject of greater importance (education), whereas both are fundamentally important in Islam. Muslims also have to be weary of being used to serve ungodly causes. Bad enough we have non-Muslims writing in ignorance about Islam and Muslims, but you will also come across Muslims doing the same. Often the truth expressed is omitted from news reports, but whatever he utters in response to negative questions is highlighted, giving the impression that the majority is against existing Islamic trends. All these are concerted efforts under the disguise of fundamental rights of an individual whereas as Muslims we do know that Allah has already defined such areas i.e. dress, conduct, behaviour etc. In the seventies when my first daughter began going to a girl's school, the Headmistress of that school, a Malay Muslim, refused to allow my daughter to wear the tudung. I had to fight for my fundamental Islamic rights. Today it is in reverse.
  2. In the case of hand-shaking, it is explicitly clear that it is prohibited between men and women. However, not to embarrass a person we often accept an outstretched hand. But if it was from another Muslim, I too would not do so. In this respect, it would be better for Muslims to get themselves more acquainted with their religion rather than to act in ignorance and incur Allah's displeasure. It might look great being a champion in the sight of people but despised by Allah with eternal condemnation. On the other hand if you are one of those incapable of submission, then it would be better to turn to Allah in forgiveness.

The problem with most Muslims is that they are ignorant of what is demanded of them by Allah through the Qur'an and the Sunnah of His Messenger. In some of these issues they are straightforward, while in others there is room for flexibility. One of the areas that need to be highlighted is the scope for flexibility. All these issues have new been really dealt with for years and as a result of it Muslim society as a whole has had to live in confusion. q Haji Mokhtar Stork 

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