TEAM LEADER: MOHD HALIM KADRI PROFILES OF ISLAMIC FINANCING MODELS BY ISLAMIC FINANCIAL INSTITUTIONS IN MALAYSIA © TEAM LEADER: MOHD HALIM KADRI Abstract Malaysian Islamic financial system offers a variety of Islamic financing products through the establishment of a number of Islamic financial institutions (IFIs) since 1983. The customers are able to select not only the financing products but also the IFIs that offer the financing products. The purpose of this product is to profile Islamic financing models applied by IFIs in Malaysia as of 31 December 2015. In achieving this objective, annual reports of eighteen IFIs are selected and examined. The results of examination show that majority of IFIs prefer to provide cost-plus based financing including murabahah and BBA. It is evidenced by 83.33% of money have been disbursed by IFIs in 2015 out of their total financing disbursement for that purpose. It was also found that only 5.32% of money were utilised for musharakah based financing and less than 1% for mudharabah financing. The results added to existing literature in the area of Islamic banking, finance and accounting. It also guides the Islamic bankers as well as future researchers on the direction of IFIs and their financing products in future. Objective: To provide profiles of Islamic financing models practiced by Islamic financial institutions in Malaysia. Novelty and specialty: The product is the first of its kind in Malaysia. It is updateable from time to time. Commercialization potential: The product (book) is ready for sale. Benefits to society: It helps (1) students and lecturers in learning and teaching, (2) users of IFIs’ financing product to find the suitable financier, (3) bankers and researchers on future direction of financing products in future. Other information: Research on this has attracted 303 readers in Researchgate.net Output: Conference paper Book Results Islamic Financing Products RM (Billion) Percentage 1. Murabahah (MRB) 176.0 36.59 2. Bai Bithaman Ajil (BBA) 137.8 28.65 3. Al-Ijarah Thumm al-Bai (AITAB) 66.8 13.89 4. Tawaruk (TWR) 31.0 6.44 5. Musharakah (MSR) 25.6 5.32 6. Ijarah (IJR) 20.0 4.17 Bai al-Inah (BAI) 17.8 3.69 7. Others (OTH) 6.0 1.25 Total 481.2 100.00 Model IFM = 36.59MRB + 28.65BBA + 13.89AITAB + 6.44TWR + 5.32MSR + 4.17IJR + 3.69BAI + 1.25OTH References Abdus Samad. (2012). Are Islamic bank promises delivered or failed? Evidence from cross country Islamic banks, Banks and Bank Systems, Vol. 7, Issue 3. Kadri, M. H. (2016) A Study of Selection of Islamic Financing Products in Malaysia, Regional Convention on Islamic Studies, Melaka. Kadri, M. H. (2016). Islamic Financial Reporting: Evidence From Malaysia, Regional Islamic Entrepreneurship and Business Conference.Melaka. Kadri, M. H. (2015) Value Relevance of Book Value and Earnings: A Comparison between Islamic and Conventional Banks in Malaysia, International Accounting Conference VI, IIUM, Kuala Lumpur. Khiyar, A. K. (2012). Malaysia: 30 Years of Islamic Banking Experience (1983-2012), International Business and Economics Research Journal, Vol. 11, No. 10, pp. 1133-1146.