Justice, trust and Sharia: why Malaysia must reform its Islamic home financing

Image of a abandoned property project at Bukit Beruntung Malaysia Provided by author, CC BY

Islamic home finance in Malaysia was introduced in the 1980s with high expectations. It promised to create a system free from riba (usury), gharar (harmful uncertainty), and ẓulm (injustice) for 20.6 million Malaysian Muslims.

Four decades on, the original vision of Islamic home finance as an ethical, risk-sharing alternative compliant to Islamic law Sharia is now being put to the test.