Investigating the Level of Interest to Learn Islamic Economic

Principles in Lanao Del Sur

Jawad Z. Salic and Shahid Q. Manalundong

Mindanao State University, Main Campus, Philippines

Keywords: Islamic Economics, Islamic Finance, Islamic Studies Students, Madrasah, Islamic Community.

Abstract: The Islamic Economics principle has been known to display an encouraging progress that draws countless

financiers and traders globally to have interest engaging in Islamic transaction ideas. This study was

intended to determine the level of interest on the Islamic Economics principle as perceived by the Islamic

Studies graduates from various Madrasa (Madaris), private institutions and the King Faisal Center for

Islamic, Arabic and Asian Studies, Mindanao State University-Main Campus in the province of Lanao del

Sur, Philippines. A total of 200 respondents is chosen for the purpose of this study. This study found that the

level of understanding of the respondents is relatively insufficient and limited information about the factual

concept of Islamic Economics. In the face of the lowly familiarity of the respondents towards Islamic

Economics, these inquiries also establish that they were fascinated to be educated and expressive about it.

This paper recommends that all institution offering the Islamic Studies course related should integrate into

their curriculum the principle of Islamic Economics or a mandatory seminar to their students in order to

uplift the level of interest of their students towards Islamic Economics and be an imminent Islamic banker

of the Philippines in the future to gratify the demand of the Islamic finance industry.

1 INTRODUCTION

The Islamic Economics system is a scheme where its

standard administration and application are

implemented based on Islamic law where the bank

that does not involve itself with usury, which is

evidently forbidden in Islam. Students of every

Islamic community should realize that they will be

the next trailblazer of their community and in the

near future they will have the responsibility of

ensuring the welfare of its people and fight poverty

which produces uncertainty and stubbornness

against peace of mind and normal economic

undertakings. Stability of economics means of every

community regulates the system to protect the

common people from harm and hardship caused by

being less privileged factors in society through

strong effective laws. The Islamic Economics

system can cater economics stability because it

creates healthy badge of decent and principled

business in the future that will escalate the success

and harmony of mind of millions of people.

The main focus of this study is to attempt to find

answers to the level of Interest regarding Islamic

Economics in the Province of Lanao del Sur,

Philippines as perceived among Islamic students

graduate of the said province. Specifically, the

objective of this study was what is the level of

interest of the Islamic Studies graduates from the

province of Lanao del Sur, Philippines and what are

the implications of the findings that can be drawn

from the study. The researchers made use of the

descriptive survey design that involves the

distribution of structural questionnaire as a means to

gather data and were distributed to the respondents.

The data were analysed and interpreted using

frequency counts, percentage and finding the

weighted mean. The questionnaire was divided into

two parts, the socioeconomic profile and the

perception of the respondents.

This study enriches the interest of the

respondents to learn the Islamic Economics principle

which they can use these leanings to provide

gratification for human beings and facilitate them to

achieve their responsibility to Allah and to the

public. The respondents appreciated the Islamic

Economics system is a societal system which act to

solve the economic problems of Muslims infused

with the values of Islam.

Salic, J. and Manalundong, S.

Investigating the Level of Interest to Learn Islamic Economic Principles in Lanao Del Sur.

DOI: 10.5220/0010114400002898

In Proceedings of the 7th ASEAN Universities International Conference on Islamic Finance (7th AICIF 2019) - Revival of Islamic Social Finance to Strengthen Economic Development Towards

a Global Industrial Revolution, pages 34-37

ISBN: 978-989-758-473-2

1.1 Statement of the Problem

With the existing study this study seeks to answer

the following questions:

1. What is the Socio-economic profile of the

respondents?

2. What are the points of insights of the

respondents to learn Islamic Economics

Principles?

3. What are the possible intervention programs in

Learning Islamic Economics?

4. What are the implications can be drawn from

the study?

2 LITERATURE

2.1 Definition of Islamic Economics

Islamic Economics is the knowledge and application

of injunctions and rules of the Shari’ah that prevent

injustice in order to provide satisfaction to human

beings and enable them to perform their obligation

to Allah and the Socity (Hasanuzzaman, 1984).

Islamic economics aims at the study of human

falah (well-being) achieved by organizing the

resources of the earth on the basis of cooperation

and participation. (Khan, 1994).

According to Radiamoda (2016), Islamic

economics deal with issues like to create, distribute,

own and enhance property and wealth, how to spend

and dispose of it for the benefit of individuals as

well as societies. The means of production of good

are almost the same for all nations, as economic

science is universal for all nations.

2.2 Significant Rules of Islamic Finance

Ghazali (1937), describes that the central tenet of the

Islamic Financial system is the prohibition of riba. It

is also encouraged risk-sharing, promotes free

enterprise, discourage theoretical behavior and

emphasize the sanctity of contracts (Radiamoda,

2016).

Islamic finance offers different instruments to

satisfy providers and users of funds in a variety of

ways. Include cost-plus markup financing

(murabaha), profit-sharing (mudarabah), leasing

(ijarah), partnership (musharakah) and forward sale

(bai’ salam). These instruments serve as the basic

building blocks for developing a wide array of more

complex financial instruments, suggesting that there

is great potential for financial innovation and

expansion in Islamic financial market

(Hasanuzzaman, 2003).

2.3 Principle of Islamic Economics

The Islamic economic system, on the one hand, aims

to guarantee individual liberty, freedom of choice,

private property and enterprise, the profit motive and

possibilities of unlimited effort and reward. On the

other hand, it seeks to provide effective moral filters

at different levels of life and activity and established

institutions in the voluntary sector as well as through

the state apparatus to ensure economic development

and social justice in the society (Radiamoda, 2016).

2.4 Methodology

Research methodology encompasses the research

techniques to help elucidate the research problems to

come across the objectives the study and goals. A

fact-finding descriptive research design waschosen,

because it convincingly describes the characteristics

of the study also it refers to a sensation, to analyze

and describe the indicator of interest, giving a

vibrant outcome of the research problem and data

will be collected through questionnaire survey.

Respondents of the study. The researchers select

Islamic Studies students studying within the area of

responsibility of the province of Lanao del Sur as the

respondents of the study. Purposive Sampling will

be used with a purpose of selecting and limiting

respondents in 200.

Research Instrument and data gathering

procedure. The researcher of this study used an

organized survey questionnaire that was prepared by

the researchers in a five (5) pages paper in order to

dispense it to the respondents and a personal

interview was conducted which was one on one talk

to the respondents in gathering the relevant data.

Methods of Data Analysis. In order to analyze

and interpret available data, Simple Frequency,

Percentage Distribution and finding the weighted

mean was used in the computation of the data

gathered.

3 RESULT AND ANALYSIS

3.1 Socio Economic Profile of the

Respondents

Majority of the respondents were between 21 years

old

to 30 years old. This implies that utmost of the

Investigating the Level of Interest to Learn Islamic Economic Principles in Lanao Del Sur

Table 1: Respondent Profile Based on Age.

Indicator Frequency Percentage

Below 20

years old

34 17%

21 – 25 years

old

84 42%

26 – 30 years

old

71 35.5%

30 years old

and above

11 5.5%

Total

200 100%

Figure 1: Respondent Profile Based on Age.

Table 2: Respondent Profile Based on Institution.

Indicator Frequency Percentage

State Universit

88 44%

Private

Institution

34 17%

Madrasah

78 39%

Total

200 100%

Figure 2: Respondent Profile Based on Institution.

respondents of the study were the younger

generation in our time but capable to understand the

survey questionnaire and reflect to it.

Majority of the respondents were coming from

the only state university in the province of Lanao del

Sur, Mindanao State University – Main Campus and

from various madarasahs (Madaris) which imply

that this study interconnected the precise entities that

have the access on every data regarding the

importance of Islamic Economics.

3.2 Level of Interest of the Islamic

Studies towards Learning Islamic

Economics Principles

1. Majority of the respondents wants a lecture

orientation about Islamic Economics.

2. Majority of the respondents wants to understand

the concept of Islamic Economics thru a

classroom base instruction.

3. Majority of the respondents proposed that their

institution should create a video advertisement

regarding Islamic Economics and to be played in

the campus digital information.

4. Majority of the respondents wants to open an

account in a Islamic Bank.

5. Majority of the respondents proposed that their

respected institution should invite a Muslim

scholar, which is an expert in Islamic investment.

6. Majority of the respondents said that the

curriculum of their institution should be

integrated with Islamic Economics.

7. The majority of the respondents want to enroll in

a short course dealing with Islamic Economics.

8. The majority of the respondents want to have an

idea between conventional banking and Islamic

Economics.

3.3 Possible Intervention Program in

Learning Islamic Economics

Majority of the respondents suggest the following

intervention program:

1. A lecture-Seminar from experts on Islamic

Economics coming from Universities from

ASEAN or Middle East countries.

2. An academic benchmarking of Lanao del

Sur Islamic Studies Faculties in

Universities from ASEAN or Middle East

countries.

3. The exchange student's program between

the students from Lanao del Sur and

ASEAN or Middle East countries.

7th AICIF 2019 - ASEAN Universities Conference on Islamic Finance

4. Symposium regarding Islamic Economics

conducted by some prominent professor of

Islamic Economics.

Immersion program to the practicum students

from Lanao del Sur to different bank offering

Islamic Economics.

4 IMPLICATION OF THE STUDY

In spite of different reactions among the

respondents, this study concludes that among the

Islamic Studies graduates of Lanao del sure is not as

much proficient in Islamic Economics principles. As

a result, the competent authority of the province of

Lanao del Sur shall have interposition platforms to

realize the result of this study. These young people

should be held with kindness concerning adopting

Islamic Economics principles. Correspondingly, this

young person will the asset of the said province in

stabilizing its economics means going with the flow

of the progression of Islamic Economics and

Finance. The researcher noted in this study that

some institutions are having a conflict of ideas

regarding some Islamic principles. Therefore, an

intervention program is needed by the People of

Lanao del Sur towards Islamic Economics.

REFERENCES

Chapra, M. U., 1979. Objective of the Islamic Economic

Order. Leicester, UK: The Islamic Foundation.

Ghazali, Abu Hamid.,1937. Al-Mustafa. Cairo: al-

Maktabah alTijarlyyah al-Kubra.

Hasanuzzaman, S. M., 1984. The Economic Function of

The Early Islamic State, Karachi: International Islam

Publisher.

Hasanuzzaman, S. M., 2003. Islam and Business Ethics,

London, Institute of Islamic Banking and Insurance.

Khan, M.A., 1994. An Introduction to Islamic Economic,

IIIT and IPS, Islamabad.

Manan, M. A.,1989. Islamic Economics: A Historic-

Inductive Approach. Larachi: Journal of Islamic

banking and Financ e, Karachi.

Radiamoda, A., 2016.Glimpse in Islamic Economics and

Political System. Iligan City: Ivory Printing and

Publishing House.

Investigating the Level of Interest to Learn Islamic Economic Principles in Lanao Del Sur