Muamalat students understanding towards application of tawarruq in Islamic finance products in Malaysia: Bank Muamalat Malaysia Berhad (BMMB) / Nurhani Aliaa Hanafi

Tawarruq is one of the contracts that are increasingly introduced and applied in Islamic banking products in Malaysia. The use of tawarruq is one of the alternatives to replace the bay '' inah which has a relatively unfavourable controversy and debate among scholars. However, tawarruq also did not escape from the debate between the scholars regarding the tawarruq transaction. Even so, it is better to use bay'al-tawarruq compare to bay' ' inah. The use of bay ’al-tawarruq in Islamic banking products give benefits to community. But to what extent the application of bay 'al-tawarruq is understood and can give understanding to muamalat students. Although, this research aims to assess the level of understanding of Muamalat students about al-tawarruq bay products in Islamic bank products in Malaysia. Three main objectives are focused in this study are to assess the knowledge regarding the nature of application of tawarruq in Malaysia in Islamic banks among students Muamalat, to know how much students Muamalat can identify the difference between bay’ al-tawarruq and bay’ al-‘inah and to investigate the benefit of using tawarruq in Islamic banks products to people nowadays. In this study, the respondents consisted of students who took the field of muamalat at a local university. By disseminating questions using google form then disseminating using social media platforms such as WhatsApp. Then the data obtained were analyzed. From there it can be seen whether muamalat students can understand the application of bay 'al-tawarruq well or not in Islamic banking products at Bank Muamalat Malaysia Berhad (BMMB). With this, a few suggestions related to the application of tawarruq can be given so that muamalat students can understand it better.