DOCSLIB.ORG

IIUM Journal of Case Studies in Management Vol

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
IIUM Journal of Case Studies in Management Vol IIUM Journal of Case Studies in Management Vol. 3, No. 2, December 2012 Diversification in a Convergent Market: The Case of SK Telecom 1 Kim, Jong-Seok Freelance Consultant Case of Pilgrimage Funds Managemnt Board (Lembaga Urusan Tabung Haji) 17 Khaliq Ahmad, Mustafa Omar Mohammed & Dzuljastri Abdul Razak International Islamic University Malaysia Challenges of the Privatization Process: The Case of Tiba Motors Corporation 32 Gholamreza Zandi, Alireza Shahabi & Babak Naysary International Islamic University Malaysia Workplace Discrimination: Sexual Harassment 37 Sharifah Ália Alhabshi & Arif Hassan International Islamic University Malaysia Teaching Notes of the Case Studies, published in this issue, are available ONLY to lecturers and trainers. Please send your request to the Chief Editor ([email protected]/[email protected]) giving details of your job position and institutional affiliation using your institutional email address. IIUM Journal of Case Studies in Management ISSN 2180-2327 Published: International Islamic University Malaysia 53100 Kuala Lumpur. Editorial Team Dr Amir Mahmood Deputy Head of Faculty and Assistant Dean, • Chief Editor: International Faculty of Business and Law Prof Dr Arif Hassan University of Newcastle Dept. of Business Administration NSW Australia International Islamic University Malaysia Assoc Prof Dr Nik Nazli Nik Ahmad Deputy Dean (Postgraduate Studies) • Co-Editors: Kulliyyah of Economics and Management Assoc Prof Dr Noor Hazilah Abd Manaf Sciences Dept. of Business Administration International Islamic University Malaysia International Islamic University Malaysia Prof Dr P M Shingi • Editorial Advisory Board: Dean, School of Business Prof Dr A Seetharaman Flame University, Pune Faculty of Business Strategy India S.P. Jain Centre of Management, Singapore Dr Sharifah Raihan Syed Mohd. Zain Prof Dr Faridah Hj Hassan Head, DBA program Director Graduate School of Management Centre of Business Excellence Kuliyyah of Economics and Management Faculty of Business Management Sciences Universiti Technologi MARA (UiTM) International Islamic University Malaysia Professor Dr Khaliq Ahmad Dean Aim and Scope of the Journal Kulliyyah of Economics and Management The IIUM Journal of Case Studies in Management Sciences is an internationally refereed journal published International Islamic University Malaysia twice yearly by the Graduate School of Prof Dr Mohd Ismail Sayyed Ahmad Management, International Islamic University Director Malaysia. The journal is dedicated to the development and promotion of case studies in the Graduate School of Management field of management and related disciplines for International Islamic University Malaysia the purpose of enhancing our knowledge and Prof Dr Mukund Dixit understanding in the areas. Cases selected for Indian Institute of Management publication are expected to deal with important issues related to the discipline, which may be used, Vastrapur, Ahmedabad, India among others, by instructors of Master of Business Dr Muslim Harsani Administration and Master of Management Department of Accounting programmes. Special consideration will be given Kulliyyah of Economics and Management to cases that deal with management issues in the Asia-Pacific region. Cases based on both research Sciences and secondary sources, will be considered. Also, International Islamic University Malaysia papers on case writing, case teaching and case analysis will be accepted for publication. Occasionally the journal will publish empirical papers on current issues in management. Editorial Note We are happy to present this issue. It consists of four case studies. Two originate from Malaysia while one is from South Korea and the other from Iran. I hope these case studies will be helpful in bringing local issues and discuss management concepts in the Asian context. The first case study is about a South Korean Telecom company dealing with the diversification process. It illustrates the challenges and motivation behind this process. The case study provides a good understanding of how this company implemented their diversification strategy in an increasingly convergent market. The second case study provides a detailed understanding of a Malaysian company known as Lembaga Urusan Tabung Haji (Tabung Haji) The organisation is internationally recognised for successfully providing professional services to Muslims to manage their Hajj pilgrimage. Established in 1963 the institution has been recognised as a model for other countries to emulate managing Hajj affairs. The organisation adopts contemporary management and marketing principles such as participation in management decisions, and uses state of the art technology. It also endeavours to apply Shariah principles in its deposits, investments and Hajj services. The third case study presents the story of an Iranian auto company in the process of privatisation. It illustrates how the top management of this company abused the process for personal benefits during the issue of IPO. Abusing their Direct Benefits of Control (DBC) along with existing information asymmetry in the market, the directors of this company recaptured a massive block of shares through an investment company. This IPO and the way in which the investment companies were financed provides a good case for discussion on business ethics. The fourth case study gives a valid example of the challenges faced by a transgender in the workplace, particularly relating to prejudice, discrimination and sexual harassment. The setting is an international financial institution in Malaysia that has an inclusive workplace environment where the values and culture of social diversity are embraced by the organization. Although the workplace environment was an inclusive one, the available policy and procedures to handle harassment cases was inadequate to ensure that any harassment complaint is handled in a just and fair manner. There is a dearth of case studies on sexual harassment specially dealing with transgenders in the workforce. Hopefully this case study will be useful for discussion on this sensitive issue. I take this opportunity to thank all the contributors as well as reviewers for their interest and support to this journal. The teaching notes of the case studies are available and can be provided to the faculty members on request to the editor. Thank you. Arif Hassan Chief Editor Diversification in a Convergent Market: The Case of SK Telecom IIUM Journal of Case Studies in Management: Vol. 3 No 2: 1-16, 2012 ISSN 2180-2327 Case Diversification in a Convergent Market: Study1 The Case of SK Telecom Kim, Jong-Seok1 Freelance Consultant Abstract: SKT was a leader in the mobile telephony business (MTB) in South Korea when it made a decision to diversify into the internet business (IB) in a convergent market. This case offers instructors and students a clear picture of SKT’s diversification process, accomplished through internal development to facilitate the shift from MTB to IB. First, the case provides an opportunity to assess SKT’s diversification performance in terms of financial and operational economies of scale. However, there has been an inadequate amount of direct examination of the motives underlying the diversification decisions. This case allows instructors and students to examine SKT’s diversification motives. Additionally, less attention has been devoted to strategy implementation, which actually accounts for the link between motives and performance. Following the assessment of SKT’s position in the MTB, this case will require instructors and students to think about how SKT implemented their diversification strategy for the shift from MTB to IB. INTRODUCTION Digital convergence has dynamically reshaped various industries such as the telecommunications, content providers, the internet, and broadcasting industries. SK Telecom (hereafter SKT) recently faced a new phenomenon where firms that were once in separate industries such as mobile telephony operators, internet-service providers, and cable TV firms, suddenly found themselves in the same business. SKT noticed that digital convergence had a tremendous impact on new service developments, businesses, and industries. This impact was largely a result of the rapid evolution of networks and inter-connectedness between different networks such as mobile networks and the internet. The emergence of mobile internet generated new competition with internet-based service providers. One of the SKT managers expressed this development as follows: 1 Correspondence author: Dr Kim, Jong-Seok ; Email: [email protected] IIUM Journal of Case Studies in Management, Vol 3, No 2, December 2012 1 Kim, Jong-Seok We consider internet portal companies such as Naver2 or Daum3 etc. as our competitor….We have also maintained a close watch over our traditional competitors, KTF and LGT. In addition, this digital convergence required SKT to develop new mobile internet services. Along with the emergence of the mobile internet, the introduction of convergent products drove SKT to develop new services. Convergent products, which had new functionalities, were launched continuously. Examples include MP3 player mobile handsets, digital camera-equipped mobile handsets, DMB player mobile handsets, etc. Currently, most mobile phones can use the internet. Shinbae Kim, the CEO of SKT, noted the following: As the cellular service market has already entered a mature stage, our core business area is not expected to grow as rapidly as it has in the past. However, we will keep developing
Load more

Recommended publications
  • Tabung Haji Malaysia As a World Role Model of Islamic Management Institutions
    International Journal of Business and Management Invention ISSN (Online): 2319 – 8028, ISSN (Print): 2319 – 801X www.ijbmi.org || Volume 5 Issue 11 || November. 2016 || PP—44-55 Tabung Haji Malaysia as a World Role Model of Islamic Management Institutions HabibahYahaya1, Mohd Suhaini Abdul Majid2, Aida Zuraina Mir Ahmad Talaat3, Mohd Zaid Zulkifli4, Nor Shaiza Mir Ahmad Talaat5 1Advanced Technology Centre (ADTEC), Taiping, Perak, Malaysia 2Center for Instructor and Advanced Skill Training, Taiping, Perak, Malaysia 3Seberang Perai Polytechnic, Pulau Pinang, Malaysia 4,5Post Graduate Student of University Sultan Azlan Shah, Kuala Kangsar, Perak, Malaysia ABSTRACT: TH has served as a role model of innovative hajj management and Islamic financial services for most Islamic countries in the world. The consistent track record of TH has gained world recognition in providing excellent and satisfactory hajj services to Malaysian pilgrims. TH was awarded the “Anugerah Zakat Kebangsaan 2012, Information Security Organization of the Year, Most Innovative Information Security Professional, ISO Certification for Information Security Management System (ISMS) and Hajj Management and Operation in Malaysia & Saudi Arabia, CSR Leadership Award and several states’ awards. Recently, during the 1436H/2015M Hajj Season, TH was awarded with the international Hajj Management System MS ISO 9001:2008 recognition by SIRIM QAS International Sdn Bhd for its achievement in maintaining excellent service for hajj pilgrims. Today, TH has more than 8.85 million depositors and a network of 123 branches with more than 6,000 touch-points nationwide. TH also made its presence known globally by operating an office in Jeddah, the Kingdom of Saudi Arabia. The presence of TH in the marketplace domestically and internationally have proven to be progressive in several investment sectors, such as Islamic finance, property development, construction, information technology, oil and gas, hospitality and plantations.
    [Show full text]
  • Standard Operational Procedure in Health Quality for Hajj Pilgrims by Lembaga Tabung Haji
    International Journal of Academic Research in Business and Social Sciences Vol. 10, No. 9, 2020, E-ISSN: 2222-6990 © 2020 HRMARS Standard Operational Procedure in Health Quality for Hajj Pilgrims by Lembaga Tabung Haji Liza Marziana Mohammad Noh, Norazlinda Hj Mohammad, Norena Abdul Karim Zamri, Rozman Mohd Yusof, Harniyati Hussin and Zaridah Abdullah To Link this Article: http://dx.doi.org/10.6007/IJARBSS/v10-i9/7707 DOI:10.6007/IJARBSS/v10-i9/7707 Received: 03 June 2020, Revised: 07 July 2020, Accepted: 21 August 2020 Published Online: 13 September 2020 In-Text Citation: (Noh, Mohammad, Zamri, Yusof, Hussin, and Abdullah, 2020). To Cite this Article: Noh, L. M. M., Mohammad, N. H., Zamri, N. A. K., Yusof, R. M., Hussin, H.., and Abdullah, Z. (2020). Standard Operational Procedure in Health Quality For Hajj Pilgrims By Lembaga Tabung Haji. International Journal of Academic Research in Social Sciences. 10(9), 44-54. Copyright: © 2020 The Author(s) Published by Human Resource Management Academic Research Society (www.hrmars.com) This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode Vol. 10, No. 9, 2020, Pg. 44 - 54 http://hrmars.com/index.php/pages/detail/IJARBSS JOURNAL HOMEPAGE Full Terms & Conditions of access and use can be found at http://hrmars.com/index.php/pages/detail/publication-ethics 44 International Journal of Academic Research in Business and Social Sciences Vol.
    [Show full text]
  • [The Guidance Methods by Lembaga Tabung Haji Towards Malaysians’ Pilgrims: an Initial Assesment]
    JURNAL ISLAM DAN MASYARAKAT KONTEMPORARI © PENERBIT UNIVERSITI SULTAN ZAINAL ABIDIN ISSN 1985-7667 • e-ISSN: 2289-6325 JURNAL ISLAM DAN MASYARAKAT KONTEMPORARI, 21(1): 55-67 https://doi.org/10.37231/jimk.2020.21.1.397 https: / / journal.unisza.edu.my / jimk [THE GUIDANCE METHODS BY LEMBAGA TABUNG HAJI TOWARDS MALAYSIANS’ PILGRIMS: AN INITIAL ASSESMENT] METODE BIMBINGAN LEMBAGA TABUNG HAJI TERHADAP JEMAAH HAJI MALAYSIA: SATU PENILAIAN AWAL HASANULDDIN MOHD1* JAMALLUDDIN HASHIM1 WAN MOHD KHAIRUL FIRDAUS WAN KHAIRULDIN1 ENGKU AHMAD ZAKI ENGKU ALWI1 HANNAN FATINI MD RESHAD1 1Fakulti Pengajian Kontemporari Islam (FKI), Universiti Sultan Zainal Abidin (UniSZA), Kampus Gong Badak, 21300 Kuala Nerus, Terengganu, Malaysia *Corresponding author: [email protected] Received Date: 15 November 2020 • Accepted Date: 28 April 2020 Abstract Lembaga Tabung Haji (TH) or Malaysian Hajj Fund Board is an institution that manages the savings of the Malaysian Muslims as well as the pilgrimage of Malaysian pilgrims from the homeland to the most relevant of all. One of the most important aspects is the teaching and guidance towards the pilgrims which considered as the heart of the holy journey. There is a perception that the approach to pilgrimage and umrah brought by TH is too narrow, rigid, harsh and unfriendly to the congregation. This perception invokes the credibility of TH's credibility in conducting Malaysian pilgrims. Therefore, this paper will highlight the TH guidance method for Malaysian pilgrims and make a brief assessment of it. The study used document analysis methods and interviews and then analyzed using content analysis and comparison methods. Studies show that TH has its own approach and manhunt in its guidance to Malaysian pilgrims.
    [Show full text]
  • News Release
    NEWS RELEASE TABUNG HAJI LODGES POLICE REPORT RELATED TO 2017 FINANCIAL ACCOUNTS KUALA LUMPUR, 16 January 2019 - Lembaga Tabung Haji (TH) has lodged a report at the Dang Wangi police station today, in connection with the 2017 financial accounts, and how representations by key executives led to the declaration of hibah against the Tabung Haji Act 1995. In the police report TH identified two executive working papers presented to the Board of Directors of TH (The Board) at two Special Board Meetings on 6 and 9 February 2018. The Executive Working Papers were prepared by Datuk Rozaida Omar, Group Chief Financial Officer (Group CFO) and supported by Datuk Seri Johan Abdullah (DS Johan), the then Group Managing Director and Chief Executive. “The Executive Working Papers contain statements and representations which led to incorrect figures being reflected in the said financial statements which were accepted by the Board.” “On the basis of the said financial statements, the Board of Directors of TH, made a recommendation to the Minister responsible, who then approved the declaration of distributable hibah for financial year 2017 of Hibah Tahunan of 4.5% and Hibah Haji of 1.75% in contravention of section 22 of the Tabung Haji Act 1995. Page 1 of 2 TABUNG HAJI LODGES POLICE REPORT RELATED TO 2017 FINANCIAL ACCOUNTS ________________________________________________________________________________________________________ The audited financial statements of TH for the financial year ended 31 December 2017 (“Audited Financial Statements 2017”) were signed off on 3 April 2018 by the then Chairman, Datuk Seri Panglima Abdul Azeez Abdul Rahim and DS Johan on behalf of the TH Board and by Datuk Rozaida as the principal officer primarily responsible for the financial management and accounting records of TH.
    [Show full text]
  • Tabung Haji Malaysia Dalam Perspektif Ekonomi
    Al-Iqtishad: Vol. III, No. 2, Juli 2011 179 TABUNG HAJI MALAYSIA DALAM PERSPEKTIF EKONOMI Nurhasanah 93 Abstract: Malaysian Hajj Savings in Economic Perspective. The entity of Malay Muslims provide a heightened awareness to practice the teachings of Islam. Hajj as one of the fifth pillar of Islam is a priority agenda of empire since the early nineteenth century. The maintenance of Hajj initially be- came sultan competence as a symbol of Islam in the Malay leadership. This is because the Malay customs affairs and the affairs of the religion of Islam to be the competence of the king, not the government or the British Empire. Keywords: hajj savings, economics, hajj Abstrak: Tabung Haji Malaysia dalam Perspektif Ekonomi. Entitas Islam di kalangan Muslim Melayu memberikan kesadaran yang tinggi untuk me- ngamalkan ajaran-ajaran Islam. Ibadah haji sebagai rukun Islam yang keli- ma menjadi prioritas agenda kerajaan sejak awal abad XIX. Pengurusan ibadah haji pada awalnya menjadi kompetensi sultan sebagai simbol kepe- mimpinan Islam di tanah Melayu karena urusan adat istiadat Melayu dan urusan agama Islam menjadi kompetensi raja, bukan pemerintah atau ke- rajaan Inggris. Kata Kunci: tabungan haji, ekonomi, ibadah haji Naskah diterima: 3 Desember 2010, dirvisi: 4 Mei 2011, disetujui: 12 Mei 2011. Sekolah Pascasarjana UIN Syarif Hidayatullah Jakarta. Jl. Ir. H. Juanda 95 Ciputat Jakarta. E- mail: [email protected]. 180 Nurhasanah: Tabung Haji Malaysia dalam Perspektif Ekonomi Pendahuluan Pada awalnya, penyelenggaraan haji di tanah Melayu menggunakan jasa para “Syekh Haji”. Laksamana Hang Tuah dan rombongan misalnya, telah diberi tempat oleh Malek di Mekah ketika menunaikan ibadah haji dalam perjalanan menuju Turki.
    [Show full text]
  • Tabung Haji an Inspiration to Muslim World - Najib Bernama June 5, 2014
    Tabung Haji An Inspiration to Muslim World - Najib Bernama June 5, 2014 KUALA LUMPUR, June 5 (Bernama) -- Datuk Seri Mohd Najib Tun Abdul Razak said Lembaga Tabung Haji's success in managing haj pilgrims and becoming a leading Syariah-compliant fund manager in the world is an inspiration and example to the rest of the Muslim world. Expressing his pride in Tabung Haji's success, the prime minister congratulated depositors who entrusted Tabung Haji and its employees for the efforts rendered. "Without the efforts and contributions of its employees, Tabung Haji will not be a great Islamic institution as can be seen today," he said when launching a coffee-table book on Tabung Haji to mark its 50th anniversary here Thursday night. Published with the cooperation of the Malaysian National News Agency (Bernama), the 197-page book entitled "TH - Citra Kejayaan Malaysia" documented Tabung Haji's evolution and achievements since its inception in 1963. Najib expressed his confidence that Tabung Haji would find ways to improve its services ranging from haj pilgrimage management, savings and investments to enable it to continue to be an institution that champion the welfare of Muslims. "Hence, Tabung Haji's initiative to publish a coffee-table book to record its 50 years of achievements is an appropriate step. "Significant events during the evolution of Tabung Haji can be documented so that the success story can be told and used as a reference by future generations," he said. Published in Malay and English, the book features black and white as well as colour pictures and contains seven chapters, namely The Beginning, History of Haj, The Road to Success, Serving the Interest of Depositors, The Spiritual Journey, Empowering Growth, and Staying Strong.
    [Show full text]
  • BIMB Integrated Annual Report 2019
    FINANCIAL STATEMENTS 162-332 333-338 Financial Statements Shareholders’ Information 162 Directors’ Report 333 Share & Warrant Holdings Statistics 170 Statement by Directors 171 Statutory Declaration 172 Statements of Financial Position 339-346 174 Statements of Profit or Loss Additional Information 175 Statements of Comprehensive Income 176 Statements of Changes in Equity 339 Properties Owned by BHB Group 179 Statements of Cash Flows 346 Regional Group Network 182 Notes to the Financial Statements 323 Independent Auditors’ Report 347-355 Disclosure Summary 347 FTSE4Good Bursa Malaysia (“F4GBM”) 352 Global Reporting Inititative (“GRI”) G4 162 Integrated Annual Report DIRECTORS’ REPORT FOR THE FINANCIAL YEAR ENDED 31 decemBER 2019 2019 The Directors have pleasure in submitting their report and the audited financial statements of the Group and of the Company for the financial year ended 31 December 2019. PRINCIPAL ACTIVITIES The Company is principally engaged as an investment holding company with business transacted in accordance with Islamic principles, whilst the principal activities of the subsidiaries are as stated in Note 14 to the financial statements. There has been no significant change in the nature of these activities during the financial year. ULTIMATE HOLDING COMPANY The Company is a subsidiary of Lembaga Tabung Haji, a hajj pilgrims’ fund statutory body established in Malaysia and regarded by the Directors as the Company’s ultimate holding company, during the financial year and until the date of this report. SUBSIDIARIES The
    [Show full text]
  • Tabung Haji As an Islamic Financial Institution
    IDB Prize Winners' Lecture Series No. 4 TABUNG HAJI AS AN ISLAMIC FINANCIAL INSTITUTION THE MOBILIZATION OF INVESTMENT RESOURCES IN AN ISLAMIC WAY AND THE MANAGEMENT OF HAJJ ISLAMIC 'RESEARCH AND TRAINING INSTITUTE ISLAMIC DEVELOPMENT BANK . JEDDAH, SAUDI ARABIA ISLAMIC RESEARCH AND TRAINING INSTITUTE (IRTI) Establishment of IRTI The Islamic Research and Training Institute was established by the Board of Executive Directors of the Islamic Development Bank (IDB) in 1401H (1981). The Executive Directors thus implemented Resolution No.BG/14-99 which the Board of Governors of IDB adopted at its Third Annual Meeting held on 10 Rabi Thani 1399H (14 March 1979). The Institute became operational in 1403H (1983). Purpose The purpose of the Institute is to undertake research for enabling the economic, financial and banking activities in Muslim countries to conform to shari'ah, and to extend training facilities to personnel engaged in economic development activities in the Bank's member countries. Functions The functions of the Institute are: (A) To organize and coordinate basic and applied research with a view to developing models and methods for the application of Shariah in the field of economics, finance and banking; (B) To provide for the training and development of professional personnel in Islamic Economics to meet the needs of research and shari'ah-observing agencies; (C) To train personnel engaged in development activities in the Bank's member countries; (D) To establish an information center to collect, systematize and disseminate information in fields related to its activities; and (E) To undertake any other activities which may advance its purpose.
    [Show full text]
  • Effects of Spiritual Capital on Muslim Economy: the Case of Malaysia
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by International Institute for Science, Technology and Education (IISTE): E-Journals Research on Humanities and Social Sciences www.iiste.org ISSN 2224-5766(Paper) ISSN 2225-0484(Online) Vol.1, No.2, 2011 Effects of Spiritual Capital On Muslim Economy: The Case of Malaysia Muhammad-Bashir Yusuf Ph. D Student, Department of Economics, Kulliyah of Economics and Management Sciences, International Islamic University, Malaysia. [email protected] Abstract This paper examines how spiritual capital can influence peoples’ economy. It focuses on how coming together of Malay based on their Islamic believe has projected the economy of once despised set of people to a nation the world are looking up to champion the Islamic economic renaissance in the world. The study looked at three Islamic institutions in Malaysia that have both direct and indirect effects on the economy of Malay as Muslims and the overall effect on the Malaysia in general. The institutions studied are Islamic financial institutions, the Zakat institutions and the Waqaf institutions in Malaysia. The institutions were examined based on ACT(s) established them, what have been achieved through these institutions by the Malay specifically and Malaysia in general. It was found that these institutions have positive contributions to micro and macro economy of the country such as savings, consumptions, investment, growth and poverty alleviation. Keyword: Spiritual capital, Malay Muslims, Zakat, Waqaf, Islamic finance. 1. Introduction Although the Lyda Judson (1920) and Jane Jacobs (1961) were identified as the first proponents of social capital, (as cited by Woolcock, 1998), the analysis of social capital at micro level is usually ascribed to Robert Putnam (Grootaert 1997).
    [Show full text]
  • Tabung Haji As an Islamic Financial Institution for Sustainable Economic Development
    2011 2nd International Conference on Humanities, Historical and Social Sciences IPEDR vol.17 (2011) © (2011) IACSIT Press, Singapore Tabung Haji as an Islamic Financial Institution for Sustainable Economic Development Mohd Shuhaimi Bin Haji Ishak1 Abstract. Tabung Haji (TH) is a short synonym for Lembaga Urusan dan Tabung Haji Malaysia (The Pilgrims Management and Fund Board of Malaysia) started its operation in 1963 to assist the Muslim/rural community in Malaysia with the financial costs of performing the hajj to Saudi Arabia. TH acts as an institution of savings for Muslims to fulfill their religious obligation. This research attempts to highlight TH as a role model of an Islamic financial institution for economic development. The research aims to show the significance of TH by analysing its business activities and their financial performances to illustrate that it is a viable business entity for sustainable economic development. Keywords: TH, Pilgrimage, Islamic Financial Institution, Depositors and Sustainable Economic Development 1. Introduction Traditionally, the method of savings for the Muslim/rural community consisted of putting their savings under the pillow, mattress and floor, cupboards, or earthen jars which were buried for safety. Some also purchased of land or livestock and later resold to meet the expenses on the journey to the Holy Land.2 Rural Muslims in Malaysia had resorted to these means of savings due to the strong desire to be absolute sure that the money for the purpose of pilgrimage will be considered clean or not tainted with usury or riba that was inherent in modern banking. Based on his sincere desire and aspiration to overcome poverty among Muslims in rural and remote areas, Royal Professor Ungku Aziz made several researches in 1950s.
    [Show full text]
  • The Background and Etichs of Citations in the Book of Soal Jawab Haji Dan Umrah by Lembaga Tabung Haji
    Journal of Legal, Ethical and Regulatory Issues Volume 22, Special Issue 1, 2019 THE BACKGROUND AND ETICHS OF CITATIONS IN THE BOOK OF SOAL JAWAB HAJI DAN UMRAH BY LEMBAGA TABUNG HAJI Hasanulddin Mohd, Universiti Sultan Zainal Abidin Jamalluddin Hashim, Universiti Sultan Zainal Abidin Wan Mohd Khairul Firdaus Wan Khairuldin, Universiti Sultan Zainal Abidin Engku Ahmad Zaki Engku Alwi, Universiti Sultan Zainal Abidin ABSTRACT Soal Jawab Haji Dan Umrah (The Hajj and Umrah Q&A) is a book published by Lembaga Tabung Haji (TH-Malaysian Pilgrimage Board). It talks about the Shariah rules related to hajj and umrah based on Shafii's school. Despite its small size, this book is among the most important references to Malaysian pilgrims. There is an impression that the approach to the pilgrimage and umrah of the TH is too narrow and rigid. They are seen to emphasize the use of the Shafi’i sect. Some of the views that are used are quite hard and are not concerned with the convenience of pilgrims, as well as different from the practice of the Prophet himself. Some cynically labeled the views chosen by TH are isolated and unauthorized. This perception invites the defamation of the credibility of TH in managing the pilgrimage of Malaysian pilgrims, especially in relation to legal guidance. Hence, this paper will highlight the ethics of citations in Soal Jawab Haji Dan Umrah, which is one of the most important mediums of hajj and umrah by TH to pilgrims. This selection was made to see the extent of the authority and credibility of the references used by the book, as well as the influence of Shafii's sects and others.
    [Show full text]
  • Malaysia's Anti-Money Laundering and Combating the Financing of Terrorism
    The Banking System In meeting the supervisory responsibilities expected of banking entities arising from the merger of the the supervisors specifically under Pillar 2 of the new commercial banks and finance companies within each Basel capital accord, various capacity building initiatives banking group, emergence of new foreign are being undertaken to equip supervisors with the incorporated Islamic banks, increasing complexity of necessary knowledge and skills. In addition to operations arising from the greater regional presence, knowledge acquisition, supervisory processes are being cross-selling activities within entities in the same reviewed and enhanced to facilitate the assessment of banking group and outsourcing of banking institutions a bank’s capital management and processes. operations will necessitate the Bank to continuously set new benchmarks for its supervisory approaches and Globalisation and market liberalisation under the activities. Efforts will continue to be taken to ensure Financial Sector Masterplan will see the emergence of that the supervisors are equipped with the necessary new and significant players. The formation of bigger skills and capacity to manage these challenges. Malaysia’s Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Programme Overview Malaysia continued to develop and enhance its national AML/CFT regime by strengthening its AML/CFT legislative framework as well as by improving domestic and international co-operation, and upgrading the capacity of law enforcement personnel in these important areas. Bank Negara Malaysia, as the lead agency for the National Co-ordination Committee to Counter Money Laundering (NCC) that co-coordinates the implementation and enforcement of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 (AMLA) and AML/CFT measures, is committed in ensuring that Malaysia’s financial system is sound, robust and free from abuse.
    [Show full text]