NEWS

2025.04.10

【Report】The 6th International Colloquium on Asian Paths of Civilization and Development: Sustainability, Economic Equity, and Social Values in Asia: Explorations in Islamic Economics, Trust Studies, and Halal Studies, was held!

The Sixth International Colloquium on Asian Paths of Civilization and Development: Sustainability, Economic Equity, and Social Values in Asia: Explorations in Islamic Economics, Trust Studies, and Halal Studies, was held on Tuesday, February 4, 2025, at Asia Japan Institute, Ritsumeikan University, Osaka Ibaraki Campus, Japan and Online (via Zoom)

First, the moderator and session chair, Dr. Shin Yasuda, Associate Professor, Department of Tourism Policy, Faculty of Regional Policy, Takasaki City University of Economics opened the symposium and introduced Prof. Toshiyuki Takeda, Professor and Deputy Director, Asia-Japan, Research Institute, Ritsumeikan University, who gave the welcoming speech.

The presentations began with a lecture from Prof. Zurina Shafii, Universiti Sains Islam Malaysia, who gave a speech entitled “Shariah Governance, Risk Management and Shariah Compliance: Shariah Assurance in Institutions Managing Public Funds in Malaysia.” She started by pointing out the current weaknesses in the PM’s department, JAKIM and MKI, and the Ministry of Finance, BNM, SC, and EPF, due to their being no standardization of Shariah governance, inconsistent compliance practices, and weak enforcement mechanisms. Then she analyzed the strengths and challenges facing Malaysian financial institutions like the Pilgrimage Fund (Tabung Haji), Yayasan Pembangunan Ekonomi Islam Malaysia (YaPEIM) and the Employees' Provident Fund (EPF) and pointed out the need for governance reforms and increased transparency in Shariah compliant investment reporting.

Prof. Zurina emphasized that to build trust and sustainable growth, Shariah Governance and compliance issues must be addressed, and that risk management is essential for sustainability. She advised that a structured Governance, Risk, and Compliance rating model for Shariah-based institutions (GRC-i) should be adopted to enhance Shariah assurance, and suggested that the next steps should be to engage with policymakers and regulators for implementation and to conduct further research on refining the GRC-i model

She concluded by recommending the establishment of a unified Shariah governance framework, implementing independent Shariah audits and adopting GRC-i ratings as a way to build public trust, increase contributions, and ensure the sustainability and effective operation of Islamic financial institutions in Malaysia.

Photo: Prof. Zurina Shafii delivering her presentation

Next, Prof. Mehboob Ul-Hassan, Islamic Banking Center, King Saud University, Riyadh, Saudi Arabia, gave a presentation entitled “Islamic Trust (Welfare) organizations as a Catalyst for Achieving the SDGs”

Prof. Mehboob began by comparing the western perspective of growth with the Islamic vision of development. Then he laid out the Global development Agenda for International organizations outlined in the SDGs and pointed out that the World’s real economy is shrinking, while the gap between the rich and poor is widening, which reveals the failure of the capitalist financial system.

He proposed that man ultimately depends on divine guidance to lead a harmonious life in this world and the hereafter and underscored this by expanding on the social and economic impacts of Islamic finance as vehicle for the financial inclusion and equitable development. Through a case study of Alamgir Welfare Trust done in phases from 2019 to 2024, Prof. Mehboob described how the Trust, based on the Islamic finance model has succeeded in its efforts to end poverty, end hunger, ensure healthy lives and quality education as well as promoting sustainable agriculture.

This has been achieved by the just, fair and equitable dispersion of wealth based on a balanced blend of Islamic income-based redistribution instruments (such as Zakat, Sadaqah and tax) and asset-based redistribution through the Islamic financing model of risk-sharing.

Photo: Prof. Mehboob Ul-Hassan presenting his research

The third speaker was Dr. Muhammad Hakimi Mohd Shafiai, Associate Professor, Research Center for Islamic Economics and Finance, Universiti Kebangsaan Malaysia (UKM) whose presentation was titled, “Exploring Future Growth and Prosperity in the Halal Economy.”

Dr. Hakimi began with an overview of the Halal economy. He explained that the Islamic term “Halal” applies to a substance, process, manner, and exchange that is ruled as permissible for use by Muslims. He claimed that halal products have the potential to capture the global market as they are clean and safe and have benefits both in physical nutrition and spirituality. The Halal ecosystem encompasses the production of food, pharmaceuticals and cosmetics. Halal services include logistics, banking and financing, healthcare and tourism. The Halal industry is supported by an infrastructure that includes legal standards, certification, R&D, marketing and transportation.

He showed how the religious market has become globalized, catering to a population of 7.7 billion Muslims worldwide and a global market size of 9.71 trillion USD in 2025. Dr. Hakimi then proceeded to evaluate the present penetration of the Halal industry into the global market, and the present limitations due to international politics, limited infrastructure, weak food systems which expose OIC member countries to food crises, lack of corporate understanding of the potential market and lack of support for entrepreneurs.

He introduced the concept of Halalan Tayyiban, that goes beyond simple compliance with Shariah rulings (Halal) to promote something that is good, pure, wholesome and of a high standard (Tayyib). This should be the determining factor for compliance in transportation, warehousing, and retailing.

Dr. Hakimi described Malaysia as a global hub for the halal economy, with a government department devoted to Islamic development (JAKIM) supporting all aspects of Halal governance, and a halal industry development corporation (HDC) aiming to globalize the Malaysian halal ecosystem, making Malaysia a leader in the world’s halal industry through the creation of opportunities, investments, trade, employment, information sharing and technology transfer. He concluded by emphasizing the potential for the halal industry with its huge untapped opportunities for halal entrepreneurs.

Photo: Dr. Muhammad Hakimi Mohd Shafiai presenting his research

The second session started with a presentation from Dr. Siti Ngayesah Ab Hamid, Senior Lecturer, Faculty of Economics and Management, Universiti Kebangsaan Malaysia (UKM) on “Revitalizing the Corporate Brand Image of Islamic Banking Institutions in Malaysia.” Dr. Siti outlined the beginning and growth of Islamic banking from Mit Ghamr Savings Bank in Egypt in the 1960s, the Pilgrimage Fund (Tabung Haji) formed in Malaysia in 1963, and the first modern Islamic bank, Dubai Islamic Bank established in 1974, until, in the 2020s, over 1500 Islamic financial institutions exist worldwide across 80 countries.

She defined the fundamentals of Islamic banking as mutual risk and profit sharing between parties, assurance of fairness for all, transactions based on an underlying business activity or asset and the prohibition of interest (riba), gambling (maisir) and speculative trading (gharar), and described the 3 kinds of Islamic bank: full-fledged Islamic banks, Islamic subsidiaries, and Islamic ‘Windows’ of conventional banks.

She described the development of the Islamic banking industry in Malaysia and analyzed the segmentation and various characteristics of the Islamic financial services market from ethical to economic to Shariah compliant positions or a combination of them all. She went on to discuss the issues and challenges for Islamic banks in Malaysia, where many consumers are unaware of the differences between Islamic banks and conventional banks. She stressed the importance of developing a corporate brand image to differentiate Halal banking services, influence purchasing decisions and strengthen companies’ identities and discussed the need for holistic brand value maximization through a combination of spiritual, emotional and functional dimensions.

Dr. Siti concluded by summarizing the implications for management in upholding a holistic Halal brand image, including ensuring service accessibility, competent personnel, a balance between profit and social obligations.

Photo: Dr. Siti Ngayesah Ab Hamid delivering her presentation

Next, Dr. Nur Izzati Binti Mohamad Norzilan, a Senior Lecturer, at Universiti Teknologi Malaysia (UTM) gave a presentation titled “Trust Dynamics and Donor Intentions in E-Waqf: Contributions to Sustainable Development in Malaysia.” First, she introduced Waqf, a historical form of Islamic endowment, as a long-standing Islamic philanthropic model supporting social welfare and development, and its most recent evolution, E-Waqf, a digital transformation that enables broader participation and efficient management an enhances accessibility, transparency and convenience for donors.

Her research focuses on trust and intention, the key drivers influencing E-waqf adoption, and its impact on sustainable development through strengthening waqf’s role in Malaysia’s economic and social progress. She explained that E-Waqf platforms facilitate online endowments, making it possible for all members of society to participate and creating an income stream to fulfil the SDGs in education, healthcare and economic growth.

Dr. Izzatti explained that the key to the success of E-Waqf is encouraging donors’ participation and long-term engagement, which depends on the platform’s ability to build trust by managing waqf funds ethically, efficiently and transparently; credibility, through backing by reputable Islamic institutions; and reliability through the secure financial transactions and data protection. In addition, donors can be motivated by religious obligations, improving social welfare, and the ease of access such as through mobile apps.

She went on to give positive examples of how E-Waqf platforms have assisted in poverty alleviation, providing waqf hospitals and housing, and concluded by recommending increased transparency and clear governance, using awareness campaigns to educate the public on E-Waqf benefits, and strengthening partnerships between waqf institutions, Islamic banks and tech providers.

Photo: Dr. Nur Izzati Binti Mohamad Norzilan delivering her presentation

The third session began with Mr. Jamaluddin bin Othman, Faculty of Economics and Management, Universiti Kebangsaan Malaysia (UKM) who gave a presentation on “Revisiting Waqf Land Development by Considering Religious-Based Financing.” He began by defining Waqf as ongoing charity (sadaqah jariyah) that involves holding assets for the purpose of benefiting others with the intention of bringing the donor closer to God. He explained that in Malaysia, religious affairs are governed by the State Islamic Religious Councils (MAIN), and the Department of Waqf, Zakat, and Hajj (JAWHAR), a Federal-level government agency. He explained that Waqf land in Malaysia has great potential for economic and social development but remains largely underutilized. Despite being an important Islamic philanthropic asset, the development of Waqf land had faced major constraints due to the lack of professionals, incompetent resources, and limited funds.

He provided new insights on Religious-Based Financing (RBF) as a method for waqf land development for the benefit of Muslims and identified challenges such as a decline in religious authority, secularization, and increased wealth that has diminished religious influence. He pointed out that wealth in Islam is not merely an economic asset but a means of achieving spiritual and social wellbeing, and that RBF is a means to provide total wellbeing for the community. He stressed that integration of Professionalism, Integrity, Trustworthiness (Amanah), and Law (PIKU) into RBF will enhance its effectiveness and ethical foundation. He went on to enumerate each aspect of PIKU and point out the present failings and improvements that could be made.

Jamaludin concluded that conforming to the Shariah requires an element of faith, and if this is lacking serious issues can arise. Hence there are significant challenges plaguing waqf land development in Malaysia. Key issues include incomplete registration of waqf properties, lack of accurate data, and a fragmented legal framework across states. These problems have led to legal disputes, land encroachments, and difficulties in managing assets. He proposed that the enforcement of the PIKU framework would lead to ethical and efficient management of waqf assets, and stated that his aim was to investigate waqf governance reforms, explore RBF's role in overcoming challenges, and conduct empirical studies to validate the conceptual framework

Photo: Mr. Jamaluddin bin Othman presenting his research

The last presenter was Dr. Ammar Khashan, associate professor, Ritsumeikan Asia-Japan Research Organization, Ritsumeikan University, who gave a lecture on “The Semantic Web of Wafaʾ: Linking the Foundations of Trust in Islamic Contracts to Principles of Halal Food in Qurʾanic Discourses.” He began by stating Islam has historically built horizontal networks of trust that facilitated its global expansion, and that while globalization has intensified cross-border connectivity, cultural and economic disparities still remain. He explained that his objective was to examine Wafāʾ (fulfillment, faithfulness) as a key concept in Islamic economic transactions noting that the Qurʾān references Wafāʾ in more that 39 instances.

He explained that his analysis follows a historical approach, differentiating Makkan and Madīnan revelations, and went on to outline the definition of Wafāʾ in Islamic thought, the technical definition of Wafāʾ and its Qurʾānic context, horizontal contracts and consequences, and the linguistic characteristics of Wafāʾ in the Qurʾān, using its grammatical variations to expand upon its modern contextual interpretation. He then discussed Munāsabāt (Quranic coherence) as a discipline of scholarly reasoning that reveals thematic and structural links between verses and chapters, and its role in linking Wafāʾ to Ḥalāl, and gave examples of the consistency found throughout the entire revelation which is evidence of the Qur’ān’s miraculous nature.

In his research Dr. Ammar establishes that Wafāʾ is not merely contractual compliance but a holistic tawḥīdic (unifying) ethic, and trust in divine authority ensures societal integrity, while violating ḥalāl (e.g., fraudulent trade) corrupts both faith and social trust. He concluded that modern applications include reforming halal certification systems to reflect Qur’ānic ethics of transparency and accountability and recommended that future research should explore how Munāsabāt can be used to decode other Qur’ānic ethical frameworks, bridging classical exegesis and contemporary challenges.

Photo: Dr. Ammar Khashan presenting his research

Photo: Prof. Kosugi Yasushi delivering the Closing Remarks

Photo: All participants at the workshop