Malaysia

‘Companies can’t be Muslim, so how can cheques be halal?’

Important to make distinction between religion and organisation, says observer Shaani Abdullah over Bank Muamalat debacle

Updated 4 years ago · Published on 28 Dec 2021 9:00AM

‘Companies can’t be Muslim, so how can cheques be halal?’
The only measure of whether companies adhere to Muslim practices is shariah compliance, not halal status, says Malaysian Digital Economy Consumer Association secretary Shaani Abdullah. – Bernama pic, December 28, 2021

by Arjun Mohanakrishnan

KUALA LUMPUR – In light of a recent incident that saw Bank Muamalat drawing flak over allegations of rejecting cheques for being non-halal, Malaysian Digital Economy Consumer Association secretary Shaani Abdullah says it is important for there to be a distinction between religion and organisation.

Speaking to the Vibes, Shaani explained that the law has already settled that companies cannot be Muslim.

Organisations can’t be Muslim; they don’t recite the shahadah to become Muslim.

“So, there’s no question for companies with regard to something being halal or non-halal,” Shaani said when contacted.

Even services, he says, cannot be categorised as halal or otherwise. Instead, they are either shariah-compliant or not.

Earlier yesterday, Bank Muamalat senior vice-president Muhamad Radzuan Ab Rahman held a press conference to address the allegations against the financial institution.

He suggested that earlier reports stating that the bank rejected a cheque for being non-halal are just a misunderstanding, and the financial instrument bounced due to technical issues.

Shaani said it was a good move by the bank to address the issue head-on and clarify the misunderstanding.

They have to clarify if it’s a misunderstanding. When things are misreported, people actually misunderstand, given that they assume organisations can be Muslim.

“But entities can’t have a religion; this must be understood,” Shaani said.

Additionally, given Bank Muamalat’s explanation that the cheques initially bounced due to an issue concerning the payee’s name not tallying with its system, Shaani said perhaps the bank could make things easier for clients.

He said in the event of such errors, if the bank account number does match the misspelled name, the bank could still accept the cheque.

“At this time, people actually need money in the form of donations.

“By speeding up this process, the bank would win goodwill, as opposed to the contrary,” Shaani said.

Meanwhile, Muslim Consumers Association chairman Nadzim Johan said unnecessary misunderstandings such as this one risk creating equally unnecessary mistrust among the public.

Thus, he praised Bank Muamalat for swiftly clarifying the matter.

Furthermore, given the fact that the cheque was initially issued as a donation to beautify a Chinese cemetery, Nadzim said there should not have been any problems in the first place.

“Over the past 25 years being part of NGOs and volunteering, I have never heard of such a thing.

“This issue merely involves a transaction in the form of a contribution. In Islam, if it’s in public interest, it is fine,” Nadzim told The Vibes. – The Vibes, December 28, 2021

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