Embracing the New Norms: The Role of Ar Rahnu Yapeim During COVID-19 (S/O 14958)

• Main Authors: Md Nor, Mohd Zakhiri, Mohamad, Ani Munirah, Hussain, Mohammad Azam, Mohd Nasir, Nor Ashikin
• Format: Monograph
• Language: English
• Published: UUM
• Subjects: HN Social history and conditions. Social problems. Social reform
• Online Access: https://repo.uum.edu.my/id/eprint/31588/1/14958_TC.pdf; https://repo.uum.edu.my/id/eprint/31588/
• Institution: Universiti Utara Malaysia

In Malaysia, the Ar Rahnu industry has grown in tandem with the Pawn Brokers. However, this industry is not subject to the Pawnbrokers Act 1972 and is under the jurisdiction of many regulators, urging them to switch from the Islamic principle of qard to tawarruq. As such, this teaching case aims to evaluate current Ar Rahn products, mainly Ar Rahnu Care offered by YaPEIM during Covid-19, to compare Ar Rahnu Care YaPEIM and PEMERKASA Bank Simpanan National Berhad during Covid-19, Ar Rahnu Care YaPEIM with Ar Rahnu Bank Islam and Ar Rahnu Bank Muamalat on tawarruq model within Ar Rahnu Industry. The comparison also be made between Ar Rahnu Care and Conventional Pawnbrokers. This teaching case also investigate the legal and Shariah aspects of Y aPEIM's Ar Rahnu Care product. For this teaching case, narrative and comparative methods are used. The data also be collected through semi-structured interview. This teaching case discovered that YaPEIM's Rahnu Care product was based on societal segments and needs. This is because the customer pays rental of safekeeping box based on ijarah al khadamat contract, which they entered into first before the contract of tawarruq, the migration from qard to tawarruq does not change the wage fee. This paper concludes that the current operation of Ar Rahnu Care and other products in Y aPEIM based on tawarruq are Shariah-compliant