The factors and negative effects of deferred fund management: a case study at Amanah Raya Berhad Sungai Petani Branch / Aimuni Abd Halim

Inheritance is the practice of receiving personal property, titles, debts, rights, privileges, rights, and obligations upon someone’s death. Before dying, Muslims are encouraged to plan their inheritance for the survival of their heirs. Nowadays, issues related to the high amount of unclaimed inheritance and the amount of frozen assets faced by Muslims are increasing. This starts from deferred funds then being sent to unclaimed money and the increasing amount of frozen assets becomes an unresolved issue facing the Muslim community in Malaysia. These assets consist of property such as houses and land, and unclaimed money that comes from various institutions such as Employee’s Provident Fund (EPF), Amanah Raya Berhad (ARB), Tabung Haji and Permodalan Nasional Berhad (PNB). This study’s objective aim to analyse the concept of Islamic estate planning and deferred funds, identify the factors and negative effects of deferred funds, and study the solution to overcome this issue of deferred fund. By using qualitative methods, including interviews with ARB staff and secondary data from previous studies, this research contributes to improving the understanding of Islamic estate management. The same interview questions are provided to the respondents to answer the objective of this research because each respondent will give a different response. Thus, the question consists of four section which are section A, B, C and D. Therefore, this research is focused on investigating deferred fund management in Islamic wealth planning, particularly in Amanah Raya Berhad. It identifies critical issues surrounding deferred funds, such as delays in inheritance distribution, lack of awareness among heirs, and inefficiency in the estate management process. This problem has resulted in large unclaimed assets, creating socio-economic challenges. This study explain the conceptual understanding by studying the principles of Islamic estate planning and deferred funds to provide a theoretical framework based on Islamic teachings such as Faraid, Hibah, Wasiyyah, and Amanah. Furthermore, the factors of deferred funds, including procedural delays, lack of cooperation of heirs, and complex legal systems, in addition to their adverse effects on economic, political, and social systems. It also aims to offer practical solutions to improve the administration of deferred funds such as “jejak waris” program, using “ALIS” systems and other solutions, benefiting the Muslim community by aligning wealth distribution practices with Shariah principles.