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24 Pt. 2 J. Legal Ethical & Regul. Isses 1 (2021)
Special Issue 5

handle is hein.journals/jnlolletl2424 and id is 565 raw text is: Journal of Legal, Ethical and Regulatory Issues APPLICATION OF TAKAFUL (ISLAMIC INSURANCE) SURPLUS AS AN ISLAMIC FINANCIAL INSTRUMENT FOR NEEDY STUDENTS IN MALAYSIA Yusuff Jelili Amuda, Prince Sultan University Raagini Sama Sundaram, Prince Sultan University Krishnaaveni Muniandy, Prince Sultan University Sharmilla Vanarajah, Prince Sultan University Kartiyani Letchumanan, Prince Sultan University ABSTRACT Taklidfu has been an effective mechanism for addressing different social challenges in predominant Muslim countries, Malaysia is an example. More importantly, takifuli has grown in Malaysia to address different societal challenges. Literature posits that many students in Malaysian are faced with financial problem despite the fact many forms of incentives are provided by Government. Little attention is given to exploration of Takdiful surplus in helping the needy students in the country. Therefore, this paper primarily investigates the application of is takdiful surplus as an Islamic financial instrument to empower the needy students in the country. Qualitative content analysis of existing literature is used as methodology of the paper. The result indicates that takifuli plans can be applied to improve lifestyles of needy students in the country. It is further showed that takdiful surplus as a financial instrument should enhance the conditions of needy students in Malaysia in order to fulfil the interest of needy students as an integral motive of Islamic financial institutions. In conclusion, it has been reiterated that takdiful surplus is instrumental for solving financial challenges of needy students in Malaysia. It is therefore suggested that, action-oriented measures should be taken to ensure an effective application of takdiful surplus to support needy students in order to make Islamic financial instrument respond to the social demands of Muslims as an integral part of making an existing takifuli plan for students. Keywords: Taklful, Surplus, Islamic Financial Instrument and Needy Students. INTRODUCTION Education of children is important in bringing a desired progress and development to the society. It is emphasized that the education of children is one of the key vehicles engendering the development of economies (UNESCO, 2009). Nonetheless, there are different arguments among the educationists as regard to either parents or government is responsible for the finance of higher education of children's education (Svava et al., 2009). In spite of this argument, parents 1 1544-0044-24-S5-143 Citation Information: Amuda, Y.J., Sundaram, R.S., Muniandy, K., Vanarajah, S., & Letchumanan, K. (2021). Application of takaful (Islamic insurance) surplus as an Islamic financial instrument for needy students in Malaysia. Journal of Legal, Ethical and Regulatory Issues, 24(S5), 1-9 Volume 24, Special Issue 5, 2021