Addressing the agricultural financing gap in Malaysia via Manihah Agricultural Financing Model: will Islamic banks go the extra mile?

Abstract

Purpose

This paper introduces the concept of manihah and develops a conceptual framework to address Malaysia's abandoned lands and food security issues.

Design/methodology/approach

This is a conceptual paper based on insights from the existing literature and secondary data on food security, abandoned lands and manihah. Based on the prevailing gaps, the study proposes a conceptual framework of the Manihah Agricultural Financing Model to address Malaysia's abandoned land and food security issues.

Findings

The proposed model can address abandoned lands and food security issues due to the new incorporation of manihah within Malaysia's agricultural and Islamic financial industries' milieu.

Research limitations/implications

This is a conceptual paper mainly intended to spark a discussion on the potentiality of manihah.

Practical implications

The paper contends that Islamic banks have a crucial role in furthering the socio-economic development agenda under the value-based intermediation (VBI). The paper will also be an excellent introduction to Islamic bank practitioners in understanding manihah's relevance to their daily operation.

Originality/value

This paper introduces manihah as the potential solution to food security issues by utilizing abandoned lands.

Citation

Abd Rahman, N.H., Md Zabri, M.Z. and Ali, M.M. (2022), "Addressing the agricultural financing gap in Malaysia via Manihah Agricultural Financing Model: will Islamic banks go the extra mile?", Agricultural Finance Review, Vol. 82 No. 4, pp. 714-731. https://doi.org/10.1108/AFR-04-2021-0043