Title: The current landscape of Malaysian Islamic crowdfunding and future forward

Authors: Abdul Muneem; Abdul Karim Ali; Nor Fahimah Mohd Razif; Faizah Hanim Zainuddin; Meshari Al-Daihani

Addresses: Department of Fiqh and Usul, Academy of Islamic Studies, Universiti Malaya (UM), Kuala Lumpur, 50603, Malaysia ' Department of Fiqh and Usul, Academy of Islamic Studies, Universiti Malaya (UM), Kuala Lumpur, 50603, Malaysia ' Department of Fiqh and Usul, Academy of Islamic Studies, Universiti Malaya (UM), Kuala Lumpur, 50603, Malaysia ' Department of Malaysian Studies, Faculty of Human Sciences, Universiti Pendidikan Sultan Idris (UPSI), Tanjong Malim, 35900, Perak, Malaysia ' Department of Shariah and Management, Academy of Islamic Studies, Universiti Malaya (UM), Kuala Lumpur, 50603, Malaysia

Abstract: This research aims to study the current development and progress of Islamic crowdfunding in Malaysia and to recommend viable solutions to the issues and challenges from the Sharīʿah perspective. The study finds that crowdfunding is an alternative financing method enabling ventures to secure funds from the public. While its benefits outweigh potential risks, Islamic equity crowdfunding and peer-to-peer financing must align with Sharīʿah principles, avoiding ribā (interest), gharar (uncertainty), and maisir (gambling). The study highlights the significant potential of Sharīʿah-compliant crowdfunding in Malaysia, supported by its growing presence in the market. However, challenges remain, such as establishing proper Sharīʿah standards, adopting appropriate contracts, enhancing Sharīʿah governance, and raising awareness. Addressing these issues through structured guidelines, promotion, and technological advancements is crucial for sustainable growth and compliance with Islamic principles.

Keywords: Islamic crowdfunding; equity crowdfunding; ECF; peer-to-peer; P2P; Shariah; Malaysia.

DOI: 10.1504/IJBSR.2025.145490

International Journal of Business and Systems Research, 2025 Vol.19 No.2, pp.158 - 176

Received: 11 Oct 2024
Accepted: 04 Jan 2025
Published online: 01 Apr 2025 *

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