A Preliminary Insight on Collateral Hibah in Malaysia

There are many products based on hibah, such as takaful hibah, hibah lil waqaf, Hibah Amanah and many more. Hibah was introduced in Malaysia to cater the problem of unresolved inheritance issues. However, not many products are available to Muslims that are based on collateral hibah due to the fact that most of the Muslim property ownership today is secured through bank financing or loans. Therefore, the objective of this study is to provide some early insights regarding the collateral hibah's uses in Malaysia. The design of this study is descriptive using a qualitative approach whereby the data collection method involves content analysis through library research. The preliminary findings reveal that the validity of secured hibah in the Syariah Court is uncertain. Furthermore, due to legal constraints, trust companies, estate companies, and state religious councils are unwilling to accept hibah properties that are linked to financing. These constraints must be addressed accordingly so that every instrument introduced for Muslim property planning is practical and effective.