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This chapter attempts to reveal the recent significant contribution by Islamic finance industry in Malaysia during COVID-19, which is on the issue of the implementation of additional charges on accrued profit due to the moratorium exercise. This study reviews all related literature and contents of maqasid shariah, Islamic finance and the moratorium exercise especially during COVID-19 in Malaysian context. Earlier, the Malaysian government has announced a number of incentives in the Economic Stimulus Package intended to lower the impact of economic slowdown due to the COVID-19. One of the incentives being introduced is a six-month moratorium on loan and financing repayments, which is estimated approximately around RM100 billions starting 1 April 2020. The initiative intends to ease the financial burden faced by many stakeholders specifically individuals, small-medium enterprises (SMEs) as well as the corporate sector in facing COVID-19 pandemic. As the instalment payment of loan and financing being deferred, normally banks will introduce an additional charge on the accrued profit, which is known as compounding interest. This kind of additional charges ideally could assist banks to lower its losses from the moratorium exercises. On the other hand, as interest (riba’) prohibited in Islam, Islamic banks (IBs) cannot impose additional charges on accrued profit, as it could leads to shariah non-compliance income. However, adjustment on the financing through the re-structuring and the use of supplementary agreement (aqad) could legalise IBs in imposing additional charges from the said moratorium. Based on the maqasid shariah, Malaysian IBs have made a huge decision by not imposing such additional charges to reflect the application of maqasid shariah by prioritising the preservation of religion (hifz-ul-din) and the preservation of life (hifz-ul-nafs) before the preservation of wealth (hifz-ul-mal). This decision has indirectly promoted the beauty of Islamic finance in empowering the economic justice, resilience and stability as a whole. This study is believed to be a pioneer study in aligning between the moratorium exercise during COVID-19 with maqasid shariah and Islamic finance.

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Uplifting Maqasid Shariah in the Light of Islamic Finance: A Malaysian Case of Moratorium During the COVID-19

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  • 发表日期：

    2026年

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  • Muhammad Iqmal Hisham Kamaruddin

摘要

This chapter attempts to reveal the recent significant contribution by Islamic finance industry in Malaysia during COVID-19, which is on the issue of the implementation of additional charges on accrued profit due to the moratorium exercise. This study reviews all related literature and contents of maqasid shariah, Islamic finance and the moratorium exercise especially during COVID-19 in Malaysian context. Earlier, the Malaysian government has announced a number of incentives in the Economic Stimulus Package intended to lower the impact of economic slowdown due to the COVID-19. One of the incentives being introduced is a six-month moratorium on loan and financing repayments, which is estimated approximately around RM100 billions starting 1 April 2020. The initiative intends to ease the financial burden faced by many stakeholders specifically individuals, small-medium enterprises (SMEs) as well as the corporate sector in facing COVID-19 pandemic. As the instalment payment of loan and financing being deferred, normally banks will introduce an additional charge on the accrued profit, which is known as compounding interest. This kind of additional charges ideally could assist banks to lower its losses from the moratorium exercises. On the other hand, as interest (riba’) prohibited in Islam, Islamic banks (IBs) cannot impose additional charges on accrued profit, as it could leads to shariah non-compliance income. However, adjustment on the financing through the re-structuring and the use of supplementary agreement (aqad) could legalise IBs in imposing additional charges from the said moratorium. Based on the maqasid shariah, Malaysian IBs have made a huge decision by not imposing such additional charges to reflect the application of maqasid shariah by prioritising the preservation of religion (hifz-ul-din) and the preservation of life (hifz-ul-nafs) before the preservation of wealth (hifz-ul-mal). This decision has indirectly promoted the beauty of Islamic finance in empowering the economic justice, resilience and stability as a whole. This study is believed to be a pioneer study in aligning between the moratorium exercise during COVID-19 with maqasid shariah and Islamic finance.