I A I S
MALAYSIA
BULLETIN
ON ISLAM AND CONTEMPORARY ISSUES
No. 19 March-April 2014
ISSN 2231-7627
FREE
in this issue:
PeaCe Making
aSean naTiOnS
eFFORTS
aMOng
The Association of South East Asian Nations (ASEAN) began
modestly as an initiative towards understanding and cooperation
but subsequently evolved towards an integrated community
defined by shared values and principles, according to Emeritus
Professor Dr Surin Pitsuwan (picture), former Secretary-General
of ASEAN at a public lecture on “Peace Making Efforts among
ASEAN Nations” at IAIS Malaysia, Kuala Lumpur on 14 April
2014. Pitsuwan, who is also currently Visiting Professor at the
Oxford Centre for Islamic Studies, United Kingdom, assured that
ASEAN is committed to peace initiatives but it was originally
conceived in the spirit of the 1960s when states were very different
(contrast the EU) in many ways, so that the initial primary purpose was more on promoting understanding and cooperation
among states rather than developing an integrated community. Thus states adopted a policy of non-interference in domestic affairs
among member states, so that what goes on within the borders are not subjected to question or scrutiny by other member states.
(More p. 6)
islam, globalisation and Wasatiyyah by Mohammad Hashim Kamali
Two currents of opinion concerning Muslim responses to globalisation are noted, one of which views it with suspicion and
the other with optimism. The correct advice would naturally not support either of these but an approach that is carefully
moderated and weighs the advantages and disadvantages of globalisation for what they actually are. Expert opinion on the
economic and financial impacts of globalisation leans more heavily towards its negative effects for the weaker economies and
nations. Highlighted in this connection are trade liberalisation, financial globalisation, cross border flows of capital, and social
(More p. 3)
impacts of globalisation.
Risk Transfer vs Risk Sharing by Abdul Karim Abdullah
Risk management has developed into a complex science. Judging by the losses from the recent financial crisis, however, this science
has shown itself to be less than reliable. The main reason is that conventional risk management rests on faulty foundations. The
chief among these is the notion that the best way to manage risk is to transfer rather than to share it. Institutions such as Lehman
Brothers, Northern Rock, and AIG were willing to bear risks. Yet when they had to deliver, they were unable to do so.
(More p. 5)
Spreading and accepting Rumours by Mohammed Farid Ali
Akhlaq is the expression for morality in Islam. Morality draws a line of distinction between humans and beasts. In TV programs
like National Geographic we see beasts with claws taking advantage of animals stranded in weak situations. This is what I
pictured when I read heart stabbing tweets sent to Maira Elizabeth reported by Malay Mail (Thursday, March 27, 2014). This is
a hard time for her like all other family members and friends who lost their loved ones on MH 370. In this grieving time, cyber
bullies sprinkle more salt on the wounds of victims with rumours.
(More p. 7)
In This Issue
• Articles
• Policy Recommendations
Connect With Us
• Event Reports
• Hikmah
• Humour Without Malice
• Join our mailing list
• Facebook
O GOD: YOU are Peace, YOU are the source of Peace, Peace belongs to YOU.
So welcome us (in the Hereafter) O LORD with the salutation of ‘Peace!’,
and admit us into Paradise the Abode of Peace. Blessed and Exalted are
YOU our LORD, Possessor of Majesty and Reverence.
(Hadith from al-Tirmidhi and al-Nasa’i)
EDITORIAL
Warm greetings! We trust you enjoyed our last Bulletin. This issue also contains three articles
on interesting topics. In the article on “Islam, Globalisation and Wasatiyyah” I point out that
although there are some clear benefits from globalisation, its disadvantages for the developing
economies tend to be predominant. This calls for well-moderated wasatiyyah-based approaches
in choosing the best available options according to the circumstances. In attacking the mistaken
assumptions of certain Western global financial institutions, which led to the 2008 global
financial crisis, Abdul Karim in his article, “Risk Transfer vs Risk Sharing”, points out the
great benefits of risk sharing rather than risk transfer. Risk sharing encourages risk acceptors to
take more responsibility for the integrity of the loan or obligation covered. In the wake of the
ill-fated MH370 flight, Mohammed Farid Ali in “Spreading and Accepting Rumours” draws
timely attention to the social ills caused by, and the importance of refraining from tale-telling
Professor Mohammad
(namÉm) behavior. With an active program at the Institute we have had a wealth of topical
Hashim Kamali
events to report. In supporting international efforts towards peace in Afghanistan, Karim Crow
provides an outline of the Norwegian–funded IAIS Peace-building Training program provided to Afghan religious leaders in
February-March 2014, in conjunction with an Irish organisation, Miller White Training. Other events reported on include
the inspiring speech of former Thai Foreign Minister, Dr Surin Pistsuwan, on the history and changing mission of the
ASEAN grouping of nations and its current focus; the approach in Turkey towards balancing an Islamic education with a
modern one including science and technology; and an IAIS Research Fellow Seminar addressing the forms of communication
needed to support the Halal industry in Malaysia.
Recent Publications
islamic Transactions and Finance:
Principles and Developments
The Parameters of halal and haram
in Shariah and the halal industry
Edited by Mohammad Hashim
Kamali and Sheila Ainon Yussof
Authored by Mohammad Hashim
Kamali
Jointly published by IAIS Malaysia
and the Malaysian Current Law
Journal (CLJ)
Jointly published by IAIS Malaysia
and The International Institute of
Islamic Thought (IIIT), London
978-967-0379-32-6
978-1-56564-555-4
472 pages, paperback
58 pages, paperback
Bulletin Editorial Team
Mohammad Hashim Kamali, Mohammed Farid Ali, Daud AbdulFattah Batchelor,
Tengku Ahmad Hazri, Norliza Saleh
Published by: International Institute of Advanced Islamic Studies (IAIS) Malaysia
Tel: 03 - 7956 9188 | Fax: 03 - 7956 2188 | www.iais.org.my
Printed by: Vinlin Press Sdn Bhd
Tel: 03 - 8061 5533 | Fax: 03 - 8062 5533
2
March - April 2014
FOCUS
Islam, Globalisation and Wasatiyyah
cont’d from page 1
by Mohammad Hashim Kamali
The advantages of globalisation
include
cheaper
and
easier
communication which has helped
disseminate knowledge in many
fields and disciplines. Issues such as
human rights, public accountability
problems and corrupt dictators,
women’s issues etc., are exposed faster
and more likely to be addressed.
The expansion of trade and foreign
investment has similarly accelerated
social mobility and strengthened the
middle class.
On the negative side, it is noted
that globalisation means wider but
not necessarily equal access for all,
which tends to bring about greater
disparity between the haves and
have-nots. Millions of people around
the world experience globalisation
not as an agent of progress but as a
disruptive force, almost hurricanelike, in its ability to destroy lives,
jobs and traditions. Globalisation has
also popularised a consumer culture
and greater emphasis on materialist
possessions that erode traditional
values. It has internationalised crimes
of all kind and made diseases more
rampant and difficult to control.
Formal education systems are
emphasising technical skills that
respond to market demands and
marginalise traditional academic
subjects and moral education.
Jomo K.S, a Malaysian economist
and former economic advisor to
the UN Secretary General, noted
that globalisation is associated
with trade liberalisation, which has
generally “favoured the rich over poor
countries in various ways.”1 Financial
globalisation has played a significant
role in bringing about the 2008
financial crisis, as it did the preceding
crisis of 1997-98. Proponents had
claimed that financial globalisation
would increase capital flows from
rich to poor countries, but actually
the converse has happened.2 On
cross border capital flows, it is again
noted that contrary to the claims of
its advocates, financial globalisation
has generally increased the flows
of capital from poor countries to
rich countries. Cross-border flows
of capital also do not contribute
to growth or real investment but
contribute instead to asset market
bubbles in property markets, stock
markets, and consumer binges
or over-investment.3 Finally the
systemic financial fragility and crisis
have wrought havoc on developing
countries and weaker economies,
including higher food prices, reduced
capital inflows, unemployment, and
social and political instability.4
The Harvard philosopher, Michael
Sandel’s critique of globalisation
highlights the rampant marketisation
of society and its transgression of the
moral limits of markets.5 Over the
last three decades we have drifted
from having a market economy to
becoming a market society. The
former is a tool for organising
commercial activity, but a market
society is a place where everything is
up for sale. It is a way of life where
market values govern every sphere of
life. Sandel argues that market values
are crowding civic spaces. When
public schools are plastered with
commercial advertising, they teach
students to be consumers rather than
citizens. When we outsource war to
private military contractors, bring
in shorter waiting lines for airport
security reasons for those who can
afford them, the result is that the
affluent and those of modest means
live increasingly separate lives. “The
great missing debate in contemporary
politics,” Sandel wrote, “is about the
role and reach of markets.”6 This
reach of markets into every aspect of
life was partly a result of the end of
the Cold War when America’s victory
was interpreted as a victory for
unfettered markets, thus propelling
the notion that markets are the
primary instrument for achieving the
public good.7
In al-Qaradawi’s view, globalisation
in
economics,
culture
and
communication and the like has
benefited the dominant powers and
harmed the weaker ones. Yet he adds
that a totally negative attitude to
globalisation is also likely to close the
door of beneficial exchange in various
spheres of contact and interaction
among countries and cultures. The
Islamic position in principle advocates
opening the door to wisdom and
beneficial advice regardless as to where
they originate from. A certain degree
of interaction and exchange is not
only advisable but also unstoppable
given the realities of the scientific age
in which we live. “I believe that the
moderate approach (al-manhaj alwasaÏÊ) is the most advisable.”8
The principle of tawÍÊd (Divine
Oneness) in Islam maintains a
unitarian outlook on humanity. There
is only one God and by implication
one humanity. All humans are created
from a single soul (al-NisÉ’, 4:1), and
the Qur’Énic narrative of the creation
of man has it that God our Creator
breathed a breath of His Divine spirit
into Adam (Øad, 38:72). The children
of Adam are all of the same origin and
are as such brethren in humanity,
whereas the Muslim community, or
ummah, constitutes a fraternity in
faith.
In his renowned Farewell Sermon
(hajjat al-wadÉ’), the Prophet,
pbuh, addressed a large audience
of Muslims and pagans in Makkah
with this message: “O People, your
Creator is One, you are all from the
same ancestor. All of you are from
Adam, and Adam was created from
March - April 2014
3
“A wasaÏiyyah-based
approach would mean
that one should make
the best and most
appropriate choice,
which may or may
not, in the case of
globalisation, be one of
choosing an average or
a middle position, but
one which is the best
possible. ”
and affluence while his neighbour
suffers from deprivation and hunger,
he is held accountable for it. There is
evidence to the effect that neighbour
includes any neighbour, Muslim
and non-Muslim alike. WaÍbah alZuÍayli made the observation that
Islam’s vision of building a human
civilisation on earth (iÑmÉr al-arÌ)
and its assignment of the role of God’s
vicegerency to humankind constitute
the essence of its universalist outlook.
This essential mission draws no
distinction between men and women
and is inspired by the outlook of
prosperity and success (al-falÉÍ) for
all alike.11
earth.”9 Islam’s vision of humankind
is therefore one of a single, unified
fraternity regardless of any differences
of origin, race, colour and creed. Islam
is cognisant also of the differences of
nations, religions and cultures, which
is a part of the grand design of God’s
creation, but the differences are meant
to facilitate recognition (taÑaruf),
yet it is declared immediately after
taÑaruf that “the most noble of you in
the eyes of God is the most righteous
of you” (al-×ujurÉt, 49:13).10
The question naturally arises as to
how can the wasaÏiyyah approach be
ascertained and identified in complex
situations and scenarios globalisation
is likely to pose. When it is known
that globalisation is an instrument,
for the most part, of the triumphalist
and powerful to extend its sway
over the weak and the powerless
- is it then advisable to look for
moderate approaches and positions
therein? There is no easy answer to
this question, although one would
imagine that globalisation would
need not only be understood and
investigated in broad outline, but in
respect also of its various components.
A wasaÏiyyah-based approach would
mean that one should make the
best and most appropriate choice,
Righteous conduct in Islam is not
defined separately for any race and
nation; they will all be judged by the
same standards. The fourth caliph
‘Ali went on record to say that if
anyone sleeps the night in comfort
which may or may not, in the case
of globalisation, be one of choosing
an average or a middle position, but
one which is the best possible. For
wasaÏiyyah also means khayriyyah,
that is, making the best choice – a
meaning which derives from the
Qur’an and also the Arabic usage of
the word.
References
The prices of primary commodities
have risen much less than the prices of
manufactured ones. The prices of tropical
agricultural goods are much lower than
those from the temperate countries, and
the prices of manufactured goods from
developing countries have declined more
than those from the rich economies. See
Jomo Kwame Sundaram, “Globalisation
in East Asia: Myths and Realities,” in Asia:
Identity, Vision and Position, ed. Khoo
Boo Tiek and Tatsuya Tanam, Tokyo: The
Nippon Foundation, 2011, 86-7.
2
Ibid., 88.
3
Ibid., 90-1.
4
Ibid., 95.
5
See Thomas Friedman, “This column is
not for sale,” Kuala Lumpur: New Straits
Time, May 14, 2012, 16, reviewing
Sandel’s new book What Money Can’t
Buy: The Moral Limits of Markets.
6
Ibid.
7
Ibid.
8
Al-Qaradawi, ThaqÉfatuna, 11-2.
9
Quoted in Ibn ‘Abd Rabbih al-Andalusi,
al-‘Iqd al-Farid, li’-Malik al-Sa’id, Cairo:
Matbacah Lajnat al-Tal’lif, 1384/1965, 3rd
ed., vol.2, 357.
10
Al-Qaradawi, al-KhaÎÉ’iÎ, 84.
11
Al-ZuÍaylÊ, QaÌÉyÉ, 667.
1
hikmah
Politeness is par� of the attit�de of the believers, and it is lowering the wing of humilit� to people, speaking gently,
and not speaking harshly to them, which are among the best means of creating har�ony – Ibn Battaal (Fath alBaari 10/528)
Lear� knowledge. For, lear�ing it for the sake of Allah brings about God-consciousness, seeking it is an act of worship,
revising it is an act of glorif�ing Allah, searching for it is fighting in the way of Allah, teaching it to those who do not
know it is an act of charit�, and disseminating it to those who deser�e it is an act of worship – Mu’adh bin Jabal
No g�eater g�ace can be g�anted by human beings to one another than that which parents g�ant to their offspring
– Fakhr al-Din Razi, al-Tafsir al-Kabir
I have never st��ggled to rectif� something that is more difficult to overcome than my soul; sometimes I win, and
sometimes I lose – Suf�an al-Thawri
4
March - April 2014
Risk Transfer vs Risk Sharing
cont’d from page 1
by Abdul Karim Abdullah
Risk transfer is a win/lose
approach. One party wins only if
the counterparty loses. Derivatives
such as collateralised debt obligations
(CDOs), interest rate swaps, or credit
default swaps “protect” one party
from risk by transferring it to another.
In the securitisation process (pooling
of loans) and the subsequent sales of
loans, the risk of default by subprime
and other borrowers was first
transferred from originators such as
Countrywide Financial to investment
banks such as Lehman Brothers.
Subsequently, as investment banks
sold the (bundled) loans wholesale to
other parties, the risk of default was
transferred to institutional investors
such as pension funds and insurance
companies such as AIG.
Risk transfer rests on the assumption
that it is morally acceptable to
separate taking risk from taking
responsibility for the consequences of
taking risk. In other words, one party
takes the risk, while another becomes
responsible if anything goes wrong.
Holding someone else responsible
for the consequences of one’s actions,
however, is problematic from an
ethical point of view. The reason
is that it violates the principle of
individual responsibility. Moreover,
managing risk by “selling” it to others
– those who feel capable of bearing
it – also produces a moral hazard
by encouraging even more risky
behaviour.
When people know that they can
pass risks to others they are likely to
take greater risks than would have been
the case if they themselves remained
responsible for the consequences of
their own behaviour. When parties
that take on excessive risks prove
unable to cope, government bailouts
take place. The taxpayers end up
paying for the reckless behaviour of
the risk takers. This is hardly fair.
Moreover, some forms of risk
transfer can harm the party that
seeks to protect itself from risk.
This commonly happens when the
eventualities hedged against – such
as changes in interest rates – turn
out to be other than expected. A
number of investors, including
school boards, city municipalities
and counties in different countries
are learning this the hard way. They
entered into interest rate swaps, the
most common types of derivatives
(contracts) in the financial markets,
seeking to protect themselves from
unfavourable changes in interest rates.
However, when interest rates changed
in a direction other than what was
expected, instead of obtaining funds
from their counterparties, clients
had to pay vast sums of money to
their counterparties instead. Warren
Buffet rightly referred to derivatives
as “weapons of financial mass
destruction.” Moreover, a number
of banks such as Barclays Bank have
been convicted of manipulating
LIBOR (London Interbank Offer
Rate), administered by the British
Bankers Association (BBA), used as
a reference rate in the interest rate
swaps. This means that parties that
enter into interest rate swaps face not
only the risk that interest rates may
change in an unexpected direction,
but also the risk of fraud.
A far better way to manage risk is
to share it. Risk sharing reduces risk
for both parties. It also enhances
systemic stability. It is also a fairer
way of managing risk. Common
stocks are risk-sharing instruments.
Participatory sukuk offer an Islamic
alternative.
The global crisis that started in
2007 showed that while risk transfer
may work under normal conditions,
it is not likely to work in unusual
circumstances. At a time of systemic
failure, everyone experiences liquidity
crisis, including those who are
expected to provide protection from
it. The lesson to be drawn from this
is that risk transfer neither enhances
stability nor provides protection
against risk at a time of systemic
crisis. Risk sharing, by contrast, does
both. It reduces risks to investors and
enhances systemic stability – at the
same time.
There are other good reasons for
the utilisation of risk sharing in
financing. From the 1960s onwards,
corporations in Japan raised funds
by borrowing rather than by issuing
equity. Business borrowings in Japan
in the 1970s amounted to 95% of all
business financing. Initially, while the
borrowed funds were being spent, the
economy boomed. Everyone spoke
about the Japanese miracle. Over
the longer term, however, when the
borrowed money had to be repaid –
with interest – this policy proved to
be unsustainable. The miracle turned
into a nightmare.
Japan has been in a recession for
over two decades, ever since its asset
bubble burst in 1991. Japan is still in
a recession. Japan’s experience should
be a lesson to all countries that use
debt financing in preference to risk
sharing. The experience of the US
also confirms that large borrowings
cause bubbles, which invariably
burst and are followed by recessions
or depressions. The last great debt
bubble in the US took place in 1929,
just before the Great Depression, the
worst depression in US history. The
recent global financial crisis (2007
onwards) is another example.
Risk sharing brings other benefits.
It helps to allocate resources more
efficiently. Investors are more careful
when they know that they have to
share risk. Only truly convincing
proposals can expect to obtain
funding. This will disqualify “white
elephant” types of projects from
financing. Had the housing boom in
the US been financed on the basis of
risk sharing rather than collateralised
lending, the last crisis would have
been far smaller in scale and less
costly to all concerned, especially the
taxpayers, than it has in fact turned
out to be.
March - April 2014
5
EVENT REPORTS
Public Lecture on “Peace Making Efforts Among ASEAN Nations”
cont’d from page 1
by Tengku Ahmad Hazri
However, subsequent developments posed considerable challenge to the earlier ethos. For one, the rise of India and China as
neighbouring superpowers means that ASEAN must be able to stand up to remain competitive. Moreover, this policy has also
enabled the persistence of many disagreeable practices, such as monarchic rule and two-party system. There is also growing
recognition of the responsibility to protect, when governments fail to take care of their own people, the international community
is bound to interfere, such as the contemporary plight of the Rohingyas. The global society will not tolerate another episode like
in Kosovo (1998-1999), or the genocide in Rwanda (1994), when the Hutus massacred the minority Tutsis as the world stood by
in silence.
Towards building greater integration, several initiatives have been undertaken. The recently-established ASEAN Institute for Peace
and Reconciliation is a step towards this direction, building upon preceding efforts. The latter include the Bali Concords, which
represent an agenda towards greater integration, especially with the adoption of the ASEAN Charter in 2007, which promised
among others a fully integrated ASEAN community by 2015. In the 2011 Bali Concords, it was agreed that ASEAN should evolve
into an effective instrument of regional cooperation vis-à-vis others. Despite this tendency away from “non-interference” among
member states and greater involvement with each other, Pitsuwan nevertheless acknowledged, that ASEAN may be vulnerable to a
different type of “interference”, i.e. as a “battleground” for the major superpowers, particularly in the light of US President Barack
Obama’s speech in Hawaii about the US “pivot to Asia”. Thus states, particularly the smaller and economically challenged ones,
may function as a kind of proxy states for the major superpowers, voting at ASEAN meetings in accordance with these foreign
interests in return for economic and financial assistance. This is made all the more difficult when ASEAN makes decisions on the
basis of consensus, i.e. in practical terms, every state has a veto right. It thus appeared that ASEAN is confronted with a challenge
of maintaining its own sovereignty. It is a challenge that has to be managed with prudence and wisdom, and which its next chair,
Malaysia, must lead the way.
Research Fellow Seminar
by Ahmad Badri bin Abdullah
On 24 April 2014, IAIS Malaysia held its regular Research Fellow Seminar (RFS) by hosting Puan Jumaatun Azmi, the founder
and managing director of KasehDia, a communication, consultancy, and retail company. Her company has in fact been playing
vital roles since 2003, in promoting the concept of ‘halal industry’ to the Muslim global economic sectors by promoting the
concept-based halal communication and development systems encompassing several global initiatives such as The Halal Journal,
Halal Food Guide Series, Muslim Travel Guide Series, World Halal Forum Global Initiatives, Global Halal Lead Auditor Training,
and also in engaging the Malaysian government for the Halal Chapter in Malaysia’s 3rd Industrial Master Plan (2006-2020).
With the company’s reputation as an active global player in the halal industry, Jumaatun disclosed her intention in inviting
IAIS to be the knowledge partner of KasehDia especially in providing the company with guidance and knowledge of the vast
heritage of Islamic intellectual traditions. Having mentioned that, she stressed on the meaninglessness of doing consultation
and communication particularly in the halal industry without the sense of integrity with the strong support of credible source of
knowledge. She pointed out the need to revolutionise the means of communicating Islamic messages to different stakeholders on
the markets as the Jews and Christians have made their initiatives in attracting truth seekers to their ideas and doctrines. Given that,
Jumaatun also argued that Muslim scholars and industry practitioners should work hand in hand in the process of repositioning
imperative Islamic concepts – halal for instance – from religious words to universal standards to appeal to different societies
throughout the world. Therefore, she suggested that IAIS research findings and publications – which are relevant to the proposed
project need to be disseminated to business players as well as the general public in a more simplified and attractive mode.
In reponding to the proposal, Professor Mohammad Hashim Kamali suggested that KasehDia might benefit from the contents in
several IAIS publications, including the Islam & Civilisational Renewal journal, monthly IAIS Bulletins, as well as the ‘Architect
of Civilisations’ site in the IAIS website. The seminar ended with an interactive question and answer session.
6
March - April 2014
SPReaDing anD aCCePTing RUMOURS
cont’d from page 1
by Mohamed Farid Ali
Immorality of individuals and
groups only surfaces in trying times,
as Malaysia can see now in the
tragedy of MH 370. Many are not
even aware that sharing and believing
rumours is an immoral behavior.
The one who spreads rumours are
termed “nammÉm” in Islam. Prophet
Muhammad (pbuh) is reported to
have said that “the nammÉm will not
enter Heaven”. The reason for such
a harsh warning is because of the
damage spreading rumours can cause.
Rumours can create conflicts within
individuals, families, communities,
and countries. They can easily divert
love and care for someone into
hatred and deprivation. They cause
psychological illnesses as well.
The traditional way of circulating
rumours are not so common
nowadays. For cyber world fans,
spreading rumours is just a click
away. The ‘share’ button circulates
to friends and family members
on command. It does not require
one to speak. The senders do not
pause even for a second to see if the
information they want to share is
true or fabricated. How will it affect
the readers? What if the information
they sent is read by a psychopath? All
these concerns become insignificant
when the urge to click arises.
Like spreading, accepting rumours
is immoral behaviour as well. Ibn
Hibban (d. 965 CE) a scholar of
ethics and morality wrote that it is
obligatory to avoid views which lead
to hatred and enmity amongst people.
One should recoil from efforts that
divide unions and dissolve the unity
of people. An intellectual (Éqil) will
not succumb to thoughts of this
nature. He/she will not accept the
slanders of a calumniator because of
attractive wiles (Rawdat al-‘UqalÉ’).
Circulating rumours has become
the norm of the people. People in
all walks of life have made it their
favourite pasttime. Then there is
another group which believes in
these rumours and ends up becoming
bullies on cyber and real space. So
we can see here that one immoral act
spawns many other social problems.
It is time for Malaysians to be serious
about behaviour and character.
Parents, teachers, preachers, and
leaders are all equally responsible
to inculcate morality in members
of their society. Morality is not selfacquired. It needs efforts just like
all other sciences and skills. For a
start, we can prevent ourselves from
becoming a party to an immoral
behaviour.
hikmah
Actions are speculative and
equivocal matters, not definitive
proofs. Therefore, we should
not be excessive in disparaging
those doing over�ly evil deeds.
Rather, we should disparage
and blame the sin and not the
sinner – Imam al-Qur��bi [d.
671 H / 1272 CE]
(
..
Humour
Without Malice
An old woman came to the Prophet (pbuh) and said: “O Messenger of Allah, pray to Allah that I will enter
Paradise.” He said jokingly, “O Mother of So-and-so, no old women will enter Paradise.” The old woman
went away cr�ing, so the Prophet (pbuh) said, “Tell her that she will not enter Paradise as an old woman, for
old women will enter Paradise in their prime youth.” – Repor�ed by al-Tir�idhi.
Here is the stor� of an Imam who got up aſter Friday prayers and announced to the people: “I have good
news and bad news. The good news is, we have enough money to pay for our new building prog�amme. The
bad news is, it’s still out there in your pockets.”
Mullah Nasr�ddin had lost his ring, so he set out to search for it under the st�eet light.
Others came to help him search.
Finally when asked if he was cer�ain he had dropped it in this spot, he said, “No, I lost it there,” and pointed
to his house.
The others asked incredulously: “Then why are you looking for it here?”
The Mullah said, while t��ing to look clever: “Because it is dark where I lost it, and it is light out here!”
March - April 2014
7
RESEARCH, PUBLICATION AND CONFERENCE PRESENTATION
Prof. Dr Mohammad Hashim Kamali is currently finalising a position paper on “Afghanistan’s Constitution Ten Years on:
What are the Challenges?”. He is also revising for new editions of his three books, Islamic Commercial Law; The Parameters
of Halal and Haram in Shariah and the Halal Industry; and Punishment in Islamic Law: An Enquiry into the Hudud Bill of
Kelantan. Also, he is working on the preparation of a book, Developments in Waqf: Contemporary Challenges and Future
Prospects with Sheila Ainon. On the invitation of the UAE Minister of Foreign Affairs he participated in the International
Forum for Promoting Peace in Muslim Societies held in Abu Dhabi on 9-10 March 2014. He made a presentation on
“Shariah Regulations and Contemporary Reform of Waqf ” at the 5th SC-OCIS Roundtable on Harnessing Waqf into a
Bankable Social Financing and Investment Asset Class on 22 March 2014 in Kuala Lumpur. He also presented at the Seminar
on Wasatiyyah and Its Applications in Malaysia on 22 April 2014 in Kuala Lumpur.
Assoc. Prof. Dr Mohamed Azam Mohamed Adil is currently preparing an article, “The Implementation of Land Acquisition
Act 1960 and Its Impact on the Development of Waqf Land” for ICR July 2014. He is also preparing a chapter on “Fatwa
on Compulsory Acquisition of Waqf Land in Malaysia” in Transformation on Waqf: Challenges of Tradition and Modernity
edited by Prof. Kamali and Sheila. He was in a panel discussion on Maqasid Shari’ah and Maslahah’s Forum in conjunction
with Permodalan Nasional Berhad’s (PNB) Unit Trust Share Week in Kota Bharu on 23 April 2014. He co-authored with
Nisar Ahmad a chapter on Applicable Religious Rules according to the Law of the State - Malaysia for Prof. Silvio Ferrari,
IACL Vienna Conference Report, 20-26 July 2014. He worked with Ahmad Badri translating and updating IAIS Policy Issue
Paper on Conversion. He wrote “ASB, ASN Berlandaskan Maqasid Syariah”, Berita Harian, 4 March 2014; “Adat, Budaya
Tidak Sihat Halang Kemajuan Wanita”, Berita Harian, 18 March 2014; “Pertindihan Dua Kuasa Sukar Tentukan Hak
Penjagaan Anak”, Berita Harian, 19 April 2014. He is coordinating with other collaborators like AlNaqiy, JAKIM, MAIS,
UiTM, UTM, USM, TV al-Hijrah, IKIMfm and others in planning to bring Shaykh Hamza Yusuf, Founder and Principal
of Zaytuna College, Berkeley, USA to Malaysia in August/September 2014. He arranged with Dewan Bahasa dan Pustaka
(DBP) in organising a Seminar Anti Hadis on 13 March 2014. He attended a Congress on Women Leadership in Islam at
IKIM on 19 March 2014. He coordinated Public Lecture by Prof. Alparslan on 3 April 2014. He attended the World Halal
Conference on 9-10 April 2014 at KLCC. As the chairman of Seminar Committee, he coordinated a public lecture by Prof.
Surin Pitsuwan on 14 April 2014. He coordinated a Seminar on Understanding Islam together with Research Division,
Prime Minister’s Department on 22 April 2014. He also coordinated the Research Fellow Seminar inviting Puan Jumaatun
of KasehDia to present a topic on IHI Alliance Global Programme on 24 April 2014. He was live interviewed in the studio
on Bernama Radio 24, 21 April 2014 on Jurisdictional Conflicts – Civil and Shari’ah Courts in Malaysia; and again recorded
interview over the phone discussing on Hudud on Bernama Radio 24, 30 April 2014.
Dr Karim Douglas Crow continues to edit for publication the volume of papers on Islam and Diplomacy, and to work on
materials related to the Peace & Security Forum and Peace Building at IAIS. Several articles delivered at conferences are being
revised for publication, as well as his volume on Muslims – Modernity – Reason for IBT. His Research project on Middle Class
Muslims and Consumption is under preparation.
Dr Daud Batchelor had his paper “Renewal and Reform for a Post-Karzai Afghanistan: A Critical Appraisal of the 2004
Constitution” appear in the ICR January 2014 edition. With his responsibility for building the Institute’s research capability
in the field of Islam and Science, Daud has been meeting researchers at Malaysian universities and institutes pursuing
opportunities for joint collaboration. Currently he is planning for IAIS to hold the “International Conference on Developing
Synergies Between Islam and Science & Technology for Mankind’s Benefit” on 1st and 2nd October 2014. Daud is also
preparing a paper on “The Integration of Islamic Principles and Values into the Framework of Governance”. As an editorial
committee member for the ICR and the IAIS Bulletin, he has been engaged in the review, editing and revision of submitted
articles and participated in editorial planning meetings. He also serves as member of the Peace and Security Forum (PSF)
working group.
Sheila Ainon Yussof was appointed reviewer/referee for Al-Hijaz International Journal on Islamic and Arabic Studies at King
Abdul Aziz University. She was also appointed by the Rector of IIUM as a board advisor for their knowledge-based waqf
project through IIUM Research Management Centre (IIUM RMC). The IAIS Malaysia and Necmettin Erbakan University
(Turkey) awqaf book manuscript; Transformation of Waqf: Challenges of Tradition and Modernity, compiled and edited by
Sheila, was reviewed by IIUM Press (under IIUM RMC) and sent to Kuwait Awqaf Foundation for their sponsorship on
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March - April 2014
its publication, where the sale proceeds of the book will go towards a scholarship fund for needy students. The Director
for IIUM Press will contribute an article on the IIUM Knowledge Based Waqf. She also visited the newly formed IIUM
Centre for Awqaf Studies headed by Professor Khalid Rashid who will be contributing an article on “The Awqaf Act of
India: Contemporary Amendments and Corporatization”. The Foreword for the Waqf book was also approved by the Ruler
of Negri Sembilan. A study by Sheila on Negri Sembilan’s waqf was assisted by the State Islamic Religious Council (SIRC)’s
director on the challenges faced by them; and her contribution towards the awqaf book Modernizing State-Based Awqaf:
The Case of Negri Sembilan waqf is nearing completion. To ensure a good circulation of the ICR Journal, a meeting was also
organised by her at IAIS Malaysia to discuss with the Malaysian Current Law Journal on the implementation of the ICR
marketing terms and timelines and IAIS concerns. The Awqaf Forum on waqf experts, thought leaders and policy makers
organised by IAIS Malaysia and hosted by Necmettin Erbakan University in Konya in November 2014 is a work- in- progress
and Sheila is soliciting full sponsorship from the Islamic Research and Training Institute (IRTI) (through the IIUM Institute
of Islamic Banking and Finance).
Dr Mohammed Farid Ali completed the paper “Applications of Hibah in Contemporary Islamic Contracts in the light of
Shariah-Objectives (Maqasid) of Donation Contracts (al-Tabarru‘at)” for the Proceedings of International Conference on
Maqasid al-Shari’ah in Mu’amalat and Contracts. For IAIS bulletin no. 18 he submitted the second part of “Contemporary
Challenges and Prospects of Madrasah Graduates in Fiji”. He is finalising his research paper “Contentment and its Role in
Curbing Social and Environmental Problems” for the ICR Journal. His “Maqasid of Waqf” as a chapter for the upcoming
book Transformation of Waqf: Challenges of Tradition and Modernity is being edited. He is also working on a paper “Cultural
Globalisation and Challenges of Islamic Marriage: Case Study of Expensive Marriages in Malaysia”.
Dr Elmira Akhmetova is currently engaged in two main research projects, which are: “The Arab Spring, Democracy and
Citizens’ Rights in Islam,” intended to be submitted to the July 2014 issue of the ICR journal and “Problems of Defining
‘Religion’ in Modern Social Sciences,” for the Intellectual Discourse (IIUM) journal. She is also preparing short pieces for
the ICR, Bulletin and IAIS website; and serves as a member of the Secretariat of the Peace and Security Forum (PSF). Her
viewpoint, entitled “Women and Corruption,” is published in the April edition of the ICR journal. She delivered a speech,
entitled “Role of Women in Islamic Life,” at a peace-building training programme for a group of religious leaders from
Afghanistan, which took place at IAIS from 22 February till 7 March 2014; and also delivered a lecture on the “Sunni-Shi’ah
Divide” at Third Seminar on Understanding Islam, held by Prime Minister’s Department on 22 April 2014.
Abdul Karim Abdullah (Leslie Terebessy) is preparing a chapter on the implementation of hudud in selected Muslim nations,
Sudan, Pakistan, Iran, Saudi Arabia and Algeria, for a new, updated edition of Professor Kamali’s Book on Hudud Law. He
is also completing a paper for the ICR, “Overcoming business cycles with an interest-free financial system.” In addition, he is
writing a paper on risk sharing, for a conference in Istanbul on the same theme in September 2014.
Tawfique al-Mubarak has submitted a viewpoint on “Surrogacy and Islam” for the ICR, volume 5, no.2. Currently he
is preparing an article entitled “Surrogacy in Islamic Law: A Maqasidic Analysis” for the Harvard University’s upcoming
Institute of Global Law & Policy (IGLP) seminar, to be held in June 2014 at Harvard, MA. He is also working on the
transcript of Emeritus Professor Dr. Surin Pitsuwan’s speech delivered at IAIS.
Tengku Ahmad Hazri researches on constitutional law, theory and politics in Islam and the Muslim world. A preliminary
conceptual investigation was published in ICR 5.2 (April 2014) with the title “Conceptions of the Political in Islamic
Thought: Reconciling Legal and Philosophic Approaches to Siyāsa”. A related paper on “Securing Peace in the Constitution
Making of Post-Conflict Muslim States” is also nearing completion, in addition to a short piece on “Sharicah Constitutional
Clauses”. He helped to coordinate the IAIS special program on Music Spirituality and Islam (14 February 2014), was a
working group (politics) discussant at the Seminar Pemikiran Kassim Ahmad: Satu Penilaian (Seminar on the Thought of
Kassim Ahmad: An Evaluation) (15-16 February 2014, Putrajaya) and was recently the Moderator at the Forum on “The
Crisis in Ukraine: What is Means for the World” organised by the International Movement for a Just World (JUST) at the
Institute of Integrity Malaysia (IIM), Kuala Lumpur, 5 April 2014 (Saturday). He continues to serve in the editorial team of
the ICR and Bulletin, for which he reviews, edits and proof-reads submissions and the final copy of the said publications, as
well as contributing reports on events. Currently, on top of the aforesaid research area, he is also researching on the idea of
the supremacy of Shariah vis-à-vis modern notions of state sovereignty, democracy and constitutionalism.
March - April 2014
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ahmad Badri abdullah has recently completed a paper entitled “An Analysis of Islamic Jurisprudence (Fiqh) As Applied
Islamic Ethics”, which is to be published in the April ICR, 2014. He is now preparing a paper entitled ‘‘Al-Istiqra’ al-Ma’nawi
as a Methodology of Maqasid al-Shari’ah and Its Contemporary Approaches” for the next ICR, as well as a paper entitled
“The System Of Qur’anic Practical Ethics: An Analysis on Darraz’s Works of the Moral Precepts in the Qur’an”. He also
completed the final editing for the translated IAIS Malaysia Policy Issue Paper No.1, entitled “Pertukaran Agama di Malaysia:
Isu Berkaitan dan Cadangan Penambahbaikan”.
evenT RePORTS
Peace-Building Training for afghan Religious Leaders
Saturday, 22 February — Wednesday, 5 March 2014.
by Karim Douglas Crow
The war-torn nation of Afghanistan has suffered tremendous damage to the fabric of its society for decades from foreign
invasions and occupations by the Soviet Union and Nato forces; bloody strife between regional ethnic parties led by powerful
war lords; and continuing indiscriminate targeting of innocents. Efforts at reconciliation and peace building are badly required,
and recently some notable endeavours were undertaken such as the establishment of the Higher Peace Council. IAIS Malaysia is
currently engaged in contributing to national healing and security under the umbrella of its Peace & Security Forum.
A select group of thirty-two Afghan religious leaders including five women spent twelve days in Kuala Lumpur participating
in intensive Peace Building training from 22 February until 5 March 2014. The goal of the interactive training programme
was to enable good leadership and facilitate peace building activity in Afghanistan. Before and after the IAIS training,
the participants received pre - and post-training guidance in Kabul. The programme was hosted and organised by IAIS
Malaysia, in cooperation with an Irish organisation, Miller White Training & Consulting (MWTC, Dublin) and Norway’s
NCA (Kabul office), along with representatives from the Afghan Ministry of Education and the British High Commission
in Kabul. Professor Dr. Mohamed Azam M. Adil (Deputy CEO of IAIS) served well for planning and coordination. Two
experienced Irish peace trainers Ian White and Sean McGearty contributed much to this programme, employing tested
techniques of interactive group dynamics derived from conflict resolution and negotiation practices.
The Afghan Mullahs, university professors and civic leaders were chosen by the ‘Ulama Council of Afghanistan, and included
distinguished khatibs and imams from leading religious centres (e.g. khatib of masjid jami‘ in Mazar-i Sharif ) and the
Deputy Head of the Afghan Higher Peace Council. They represented all major Muslim denominations and ethnic groups
in Afghanistan ranging from Pashtun to Uzbek and Hazari. During their time at IAIS they received daily peace training
sessions oriented toward Islamic teachings and practices: a mixture of conflict resolution conducted by MWTC, and sessions
facilitated by IAIS Fellows and several noted scholars based in Kuala Lumpur. The religious leaders also had opportunities to
visit the administrative capital Putrajaya with its Shari‘ah court, the National Mosque, the Islamic Arts Museum and Central
Market in KL, as well as Port Dickson.
The sessions covered fundamental topics of Islamic Peace Building, including ‘Peace Education’ (Professor Yusof Saleem),
‘Personal and Communal Security’ (Tengku Ahmad Hazri), ‘Women in Islamic Life’ (Dr. Elmira Akhmetova), ‘Islam and
Sectarianism’ (Dr. Wahabuddin Ra’ees), ‘Reconciliation’ (Dr. Karim Crow), ‘Justice and Punishment’ (Dr. Farid Ali), and
‘Islam in Malaysia’ (Dr. M Azam Adil). Other sessions covered peace making in
N. Ireland, Mindanao and Acheh; and a presentation on ‘Islamic Moderation’
hikmah
by Professor Datuk Dr. Abdullah Md Zin, Religious Advisor to the Prime
Minister of Malaysia. One highlight was the fascinating presentation of photos of
Afghanistan from the 1960s provided by Professor Mohammad Hashim Kamali
Man’s reason aims at the
(CEO of IAIS Malaysia) entitled ‘Setting the Record Straight’, with images of
conquest of the world of matter;
European women in Kabul’s bazaar in western style clothing and Afghan school
his love makes conquest of the
girls without head covers.
The participants are tasked with planning and implementing a small scale peacebuilding initiative within their community upon returning to Afghanistan. IAIS
expects to host several more groups of civic and religious leaders from Afghanistan
in August and November 2014, forming concrete steps towards healing and
reconciliation. It is hoped that a final gathering of ninety participants could be
held in Kabul in early 2015.
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March - April 2014
infinite. Knowledge devoid of
love is nothing but juggling with
ideas – Sir Muhammad Iqbal
(d. 1938)
POLICY RECOMMENDATIONS
Islamic Tourism and the Halal Industry
by Tengku Ahmad Hazri
While Islamic tourism and the halal sector have in recent years emerged as lucrative industries, they have yet to realise their
full potential and are still beset with many shortcomings, among others the lack of common industry standards, restrictive
laws and regulations and the leadership deficit of the Islamic tourism sector in the halal economy. Towards overcoming these
the following proposals are advanced:
• In Malaysia, government departments, universities and institutions of research should coordinate their efforts more
effectively in the development and standardisation of sharīcah-rules that concern Islamic tourism and the ×alāl industry.
Multinational corporations and banks are already active and will continue to take advantage of the lucrative market if
the Islamic tourism sector in this country and the Muslim world fails to maintain a leading role in determining sharīcah
and ×alāl issues. JAKIM may consider, for instance, setting aside a percentage of the ×alāl certification fees it charges
for an Islamic tourism research fund, and in cooperation perhaps with the Ministry of Tourism, promote publication
of a bilingual journal on research and market developments in Islamic tourism and the ×alāl industry. Other interested
parties should also participate in this effort.
• As an extension of Malaysia’s global ×alāl hub concept, Malaysian authorities should consider setting up an international
forum, say a ×alāl hub roundtable, to consist of Islamic scholars and food and market specialists to plan strategies,
approve research findings, and work toward better standardisation in the ×alāl and tourism sectors. Standardisation
in the ×alāl and tourism sectors could be better pursued in cooperation with other countries in Southeast Asia and
elsewhere in the OIC countries
• Islamic tourism companies and operators should continue to improve and diversify their products and services, provide
more attractive packages that respond to the needs of Muslims worldwide, including the ×ajj, cumrah, heritage cities,
trade and cultural exhibitions and recreation facilities. As one critic observed, Islamic tourism agencies should better
organise their offerings and local and international promotions. “They do not provide a strict timetable for tours, or if
they do, it is not adhered to.”
• Countries should not impose restrictions on travel and visa requirements to other countries, especially to neighbouring
ones, which may be perceived as hostile. Governments should encourage easy travel arrangements regardless of negative
perceptions and compete in attracting highest numbers of tourists on the merit of good practice and better treatment of
visitors in the true Islamic spirit of hospitality.
• Governments and the general public everywhere should do their utmost to curb violence and terrorist activities, which
paralyse everyday life and are especially damaging to the tourist industry. Government authorities are in the meantime
advised to find appropriate strategies that avoid imposition of unnecessary travel restrictions and see Islamic tourism as
a means to a better understanding among nations and a harbinger of good relations.
(Extracted from Mohammad Hashim Kamali, “Tourism and the ×alāl Industry: A Global Sharīcah Perspective”, ICR Vol. 3
No. 3 (April 2012), 455-473)
JOURNAL ICR
Journal ICR Vol. 5 No. 2
(April 2014)
ISSN 1394-0937
155 pages, paperback
6 articles, 5 viewpoints, 2
book reviews, 5 significant
speeches and events
Price:
RM 80 (hardcopy)
RM 60 (online)
Articles:
Implementation of Hudud in Brunei: Differences between Brunei
and Malaysia
Tun Abdul Hamid Mohamad
Conceptions of the Political in Islamic Thought: Reconciling Legal
and Philosophic Approaches to Siyasah
Tengku Ahmad Hazri
An Analysis of Islamic Jurisprudence (Fiqh) as Applied Islamic
Ethics
Ahmad Badri bin Abdullah
The Impact of Militancy on Liberation Movements: The Case of
Mindanao
Marjanie Salic Macasalong
Issues in Human Rights: The Plight of Muslim Minorities and the
Lessons therein for Muslim Majorities
Hikmatullah Babu Sahib and Asiah binti Yaacob
March - April 2014
11
Public Lecture on “Islamic Education in the Intellectual Panorama of Turkey’s Higher
Education”
by Elmira Akhmetova
Political and intellectual developments occurring in the twentieth-century Muslim world created a substantial gap between the
traditional method of Islamic education and modern Western educational system. In most Muslim countries, obtaining Western
type of education has become a must, leaving religious educational system being marginalised, penniless and deprived. At the
same time, along with the mastery of modern secular sciences, the mindset of Muslim pupils became strongly affected by Western
philosophy, its principles and even its lifestyle. At present, a thirst for Islamic knowledge in the hearts of Muslim youth is growing.
The techniques of a positive combination of secular and religious education, however, are still underdeveloped. The ways to
enhance the entire system of Islamic education need to be urgently addressed as well. On 3 April 2014, IAIS Malaysia congregated
researchers, academicians and educators to listen to Professor Dr. Alparslan Acikgenc, Director of the Graduate School of Social
Sciences at Yildiz Technical University, Istanbul, Turkey. In his lecture, entitled “Islamic Education in the Intellectual Panorama
of Turkey’s Higher Education: Ottoman Heritage, Recent Developments and Challenges,” Professor Acikgenc presented a fine
example of the effort for excellence in Islamic education in the experience of Turkish people starting from the early Ottoman
caliphate until today. Professor Acikgenc stated that Muslim societies in the Ottoman caliphate paid the highest regard to the
pursuit of knowledge (‘ilm) as required by the Islamic principles of learning. Education was regarded as a religious duty, which
belonged to the community rather than the state; while the state was expected to provide the necessary condusive environment.
At the end of his lecture, Professor Acikgenc emphasised the need for a new system of Islamic education, based on an Islamic
philosophy of education and worldview, namely the Islamic vision of reality and truth as depicted by the Qur’Én and Hadith.
EVENTS AT IAIS MALAYSIA
DATE
3rd April
Public Lecture: “Islamic Education in the Intellectual Panorama of Turkey’s Higher Education:
Ottoman Heritage, Recent Developments and Challenges” by Dr. Alparslan Acikgenc
14th April
Public Lecture: “Peace Making Efforts Among ASEAN Nations” by H.E. Emeritus Professor
Dr. Surin Pitsuwan
29th April
12
EVENTS
Public Lecture: “Women and Youth in Saudi Arabia: The Current Realities” by Ms. Ni‘mah
Isma‘il Nawwab
March - April 2014