Muslim Bumiputeras urged to find alternative sources of income

KUALA LUMPUR: Muslim Bumiputeras are encouraged to find alternative channels to generate passive income such as investing in Shariah- compliant counters listed on Bursa Malaysia.

Fellow of the Economic and Social Studies Centre at the Institute of Islamic Understanding Malaysia ( IKIM), Mohamad Azhar Hashim, said besides increasing household income, Shariah- compliant investments could curb unhealthy activities such as involvement in get-richquick schemes, embezzlement and graft.

He said the Bumiputeras were more likely to choose unit trusts such as Amanah Saham Bumiputera, Amanah Saham Nasional and Tabung Haji rather than invest in Bursa Malaysia due to the stigma that the stock market is a gambling platform.

“Laziness in learning about investment among the Bumiputeras and the lack of exposure to Shariah- compliant investment products are the reasons for the poor demand in the market.

“Many people are trapped by debts and loans as they want quick returns to fulfil their desires in life.

“Make Shariah- compliant investments as a business for us to generate alternative wealth so that we are not involved in schemes that are against the law and Islamic principles,” he told reporters at the Islamic Capital Market Seminar Malaysia 2016 here yesterday.

Mohamad Azhar said investors should at least learn the basics of investment before investing.

“Investment in Bursa Malaysia, whether conventional or Shariahcompliant, are much better than get- rich- quick schemes, particularly in terms of returns if the investor suffer losses.

“If the investor made losses in the stock market, at least they can get back part of their investment.

“But, in get-rich- quick schemes, they will experience total loss and some would have to bear the debt,” he said.

The two- day seminar beginning today gathers various stakeholders in the local Islamic capital market such as scholars, professionals, researchers, students, investors and entrepreneurs.

The Islamic capital market in Malaysia is the largest in the world with an average annual growth of 12 per cent over the last five years. — Bernama