Fallacies of Islamic deposit and investment accounts in Sabah

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According to Bank Negara Malaysia (2015), the total deposits for savings, current and fixed accounts were RM33,989.30 million, RM63,753.1 million and RM236, 045.4 million, respectively as at December 2015. In the same period, the total investments for special and general investment accounts were RM142.2 million and RM1,746.2 million, correspondingly. This trend, somewhat, captures the reclassification of deposit and investment products according to Islamic Financial Services Act (IFSA) 2013, in which the former cogitates three purposes viz., safekeeping, transaction and investment where capital is preserved. The latter, however, envisages the investment purpose per se for profit.

Likewise, this article explicates three issues on Islamic deposit and investment accounts in Sabah....