Islamic home financing in Malaysia: conflicting issues arising in civil and Shariah law / Noor Fadila Othman, Siti Hajar Mohd Ashif and Siti Hasnatul Najwa Perdana Khalid.

Islamic Home Financing in Malaysia was governed by two different laws namely Civil law and Shariah law. Due to its fast development in Malaysia, many Islamic banking products such as Al- Bai' Bithaman Ajil, Musharakah Mutanaqisah, Tawarruq and Ijarah had been introduced to attract customer's interest to play a part in such transaction. The purpose of this paper is to analyze the Shariah and civil laws that are applicable in dealing with Islamic home finance in Malaysia. The paper focused on the conflict arising due the deficiency of Islamic finance legal framework, differences
between Islamic law and civil law and also the incomprehensiveness of the products offered which are not in compliance with the Shariah principles. The methodology used in this paper is library research by gathering the relevant information related to the topic from various sources mainly books, cases law, journals and legislation. Semi-structured
interview also has been carried out with an academician, banking officer and also legal practitioner to obtain views regarding the issues arising in Islamic home financing. This
paper found that Islamic home financing had given a major contribution to the economy of Malaysia but conflicts relating to it should be settled in order to enhance the Islamic
banking facility. Thus, the paper is concluded by providing some recommendations to improve the Islamic home financing in Malaysia so that we could be a leading example
to the rest of the world.