Publication: Potential Shariah Non-compliance Practices In E-bidding: Observation From E-bidding Platforms In Malaysia
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Date
2022
Journal Title
Journal ISSN
Volume Title
Publisher
USIM Press
Abstract
E-bidding has gained popularity in the modern world due to the technology advancement. Despite its popularity, contracting parties are exposed to Shariah non-compliance practices, which may lead to financial losses and disputes. Islamic jurisprudence provides guidelines assisting bidders and auctioneers in avoiding these practices. This study examines e-bidding platforms in Malaysia and highlights potential Shariah non-compliance issues based on Islamic jurisprudence guidelines. This study employs a qualitative data analysis method. Data are collected from the e-bidding platforms and their published documents. The findings revealed several practices that might lead to Shariah non-compliance issues in e-bidding platforms, including unverified bidders, elements of uncertainty, riba, gambling, and unavailability of khiyar (option). This study suggests several improvements to enhance procedures of e-bidding platforms to avoid financial losses and disputes among contracting parties in e-bidding. Hence, the improvement like verification of bidders, fulfilment of requirement for trading ribawi item, avoidance of element of uncertainty and gambling activities, and offering khiyar to successful bidder are suggested.
Description
VOL.19 NO. 1 (JUNE) 2022 Page (120-139)
Keywords
Electronic auction, electronic bidding, online auction, online bidding, Shariah non-compliance
Citation
Muhamad Azhari Wahid, Khairil Faizal Khairi, Hamdi Hakeim Mudasir, Muhammad Farid Hadhari Mahamed Rusdi, Azuan Ahmad, Mohd Zakhiri Md Nor, & Azrul Azlan Iskandar Mirza. (2022). Potential Shariah non-compliance practices in e-bidding: Observation from e-bidding platforms in Malaysia. The Journal of Muamalat and Islamic Finance Research, 19(1), 120-139. https://doi.org/10.33102/jmifr.v19i1.419