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STOCKBROKING IN ISLAM: A REVIEW OF LITERATURES AND ITS FUTURE DEVELOPMENT IN MALAYSIA

Tanggal Publikasi: 26 Jan 2023

Abstrak

The study aims at discussing the concept and practice of Islamic Stockbroking, and examining the opportunities of Islamic Stockbroking in Malaysia.The study adopts library research to discuss the concept of Islamic stockbroking. It also employs a semi-structured interview with industry players to prognosticate the future development of Islamic stockbroking in Malaysia. The study reveals that stockbroking is not a new concept in Islam. Classical jurists have discussed thoroughly the concept of samsarah (brokerage) from an Islamic perspective. The current practice of Islamic stockbroking in Malaysia employs two tiers of wakalah contract. Furthermore, the study concludes that the future of Islamic stockbroking in Malaysia is very promising, triggered by drivers on both the supply side and the demand side. The large Muslim population, wealth and economic growth are among the key factors for the development of Islamic stockbroking from the demand side. On the other hand, the Shari‟ah compliance of 89% of Malaysian stocks, Malaysia‟s position as an Islamic finance hub, and the natural progression of Islamic finance are all factors underpinning the future of Islamic stockbroking from the supply side. This study will add new literature in contemporary Islamic finance as not much study has been conducted on the subject matter

Keyword

Islamic stockbroking, samsarah, Malaysia, shari‟ah, opportunities