MALAYSIANS should be proud to welcome the first digital Sukuk Prihatin, the beginning of sharing and trust economy in the new digital edge. This marks a step forward in spurring the development programme and stimulus package to our economy.
Sharing is productive deeds that have economic values, in enjoining the spirit of Islamic fintech and hopefully be the best remedy in overcoming the economic slowdown.
In a recent statement by Bank Negara Malaysia (BNM), the Malaysian economy declined by 17 per cent in the second quarter of 2020, due to the sudden cessation of economic activity when the country was placed under the Movement Control Order (PKP) starting March 2020. Certain industries have partly recovered given the never-ending support by the government and utilising of technological advancement.
The government initiatives in undertaking the Covid-19 pandemic impact is quite impressive from the implementation of the moratorium, the Prihatin Rakyat Economic Stimulus Package for the B40 income group, PENJANA to the consultations and initiatives to SMEs and many more.
It is expected that by the end of the year or so, the country will achieve a significant improvement and fully recover by the second quarter of 2021.
Fintech or financial technology is one way or another that can be exploited to plot Malaysia back on international limelight. We need to do something different in approaching fintech by adding some values as prescribed by Islam. For instance, the government effort and initiative should be regarded as part of Islamic fintech approach.
Indeed, the digital economy is not the talking point, but rather being about the need to rethink the economic value in it. The market is about capital-labour relations, internal governance on how businesses behave matters. As famously quoted by Warren Buffet, "Price is what you pay, value is what you get." We want to pay less but expect maximum value.
Indeed, we have experienced value deterioration for close example is fiat currency recently due to the pandemic. According to economists, this is among others, the reason why the price of gold has reached new record high. Most investors diverted their value investment to the precious metal as the sovereignty of paper money were at stake particularly the USD & EUR.
The currencies of these countries, the US and the European Union, have been in an economic suppression. We cannot afford any debt to fund the economic recovery and Islam is not encouraging debt. The country has enough overleveraging in the expenses of development. Luckily, we are not entrapped in the debt-based initiative.
We all know that China's expansion involves offering fund to needy countries such as Djibouti, Tonga, Maldives, the Republic of the Congo, Kyrgyzstan, Cambodia, Niger, Loas, Zambia, Samoa, Vanuatu and Mongolia.
China ambitiously will repeat history from being the first country to use "flying currency" in note form in the year 806 AD, and the real paper money in 1023AD during the Song dynasty and now the first country to fully adopt its Yuan digital currency, not only throughout China but probably to be a new international digital currency as well.
Be it coin, cash, card or code (QR code), the real value is not the paper or numbers but our worth. It is insane if we wake up in the morning doing the same thing we do and expect different results. Success is a step of progress moving forward toward our goal.
We must set a goal to inculcate value in economy. Gratefulness and compassion, as human exclusive values, will surely boost the relationship between the government and people, and provide the economic stability in the long run.
Allah says "If you are grateful, I will add more (favours) unto you; but if you show ingratitude, truly My punishment is terrible indeed" (Ibrahim, (4): 7). "If you reject (Allah), truly Allah has no need of you; but He likes not ingratitude from His slaves; if you are grateful, He is pleased with you" (al-Zumar (39): 7).
We need to rediscover the productive and economic value from humanity as prescribed by Islam. God consciousness, truthfulness, compassionate, gratefulness and good deeds are the Islamic tenets and have its own economic value.
The writer is a Fellow, Centre for the Study of Shariah, Law and Politics, Institute of Islamic Understanding Malaysia (IKIM)