Azri Bhari

Risk Analysis in the Halal Food Industry: An Exploratory Study

Globally, there has been significant interest in literature on risk analysis and management in the past decade or so. However, all these developments revolved around the financial system, due to extensive development and innovation of its products and services. While halal food industry has grown substantively in the last few years, appreciation of its risk character and profile is still evolving. The needs to have proper risk management stems from recent food scandals on religious belief, human health and even on causes of death indicate that firms and consumers are vulnerable to integrity risks in the halal food industry. The recent cases and issues involving halal-certified products require the halal food industry to have a robust risk management practice. Risk analysis in the halal food industry should focus on three policies: risk assessment, risk management and risk communication. Mitigating the possible risk and maintaining the confidence on quality products such as halal food is very challenging, if not impossible. Our aim in this research was to analyse risk exposure in the halal food industry with the main objectives to identify risk management practice in the halal food industry. Analysis risk in the halal food industry is simple and experimental; therefore, this study will gather relevant information and come out with framework on risk analysis for the halal food industry in Malaysia.

Indicators of Business Zakat amongst Small Business: Concept and Contemporary Needs

Consciousness regarding the importance of performing the obligation of paying zakat (alms) among small businesses is merely 30 percent who appeared to fulfill those responsibilities, while the rest may not even know the requirements. This paper aims to reveal the concepts and methods of business zakat, paid by eligible small businesses. In addition, discussion on the current needs of indicator survey of zakat business disbursement in order to improve the business zakat collection. Accordingly, recipients of zakat i.e. the poor and needy can be assisted thru enlargement collection of zakat revenue and aligned to the 4th Malaysian governments policies of National Key Result Areas (NKRA); improving living standard of low income households. Hence, social responsibility among Muslims towards each other via zakat; consistent with the requirements of Islamic law.

Application of Hiyal (Legal Stratagems) on Al-Ijarah-Based Contract in Islamic Financial Institution in Malaysia

Hiyal (legal stratagems) is one of the concepts being applied in structuring Islamic banking products to cater the needs of Muslim consumers especially in Malaysia. However, the application of Hiyal in structuring Islamic banking products creates various reactions amongst Muslim scholars about the permissibility of its application. Acceptance of the concept is conditional so that it does not overshadow the ruling of Islamic jurisprudence which is more significant. This article briefly explains the concept of Hiyal and evaluates its debate amongst Islamic scholars about permissibility of Hiyal acceptance in structuring Islamic financial product. The article also explains about various al-Ijarah contracts offered by Islamic banks in Malaysia and analyses the application of Hiyal in the products offered. Focus is given to the al-Ijarah-based contract because it is always applied in structuring Islamic banking products due to its flexibility and easy to be manipulating to make existing products lawful with the help of Hiyal. The analysis focuses on Hiyal in products based on al-Ijarah which is being applied and offered in Islamic banks in Malaysia.