UUM ONLINE: Universiti Utara Malaysia (UUM) and Kelantan State Investment (PKB) signed a Memorandum of Agreement (MoA) to educate the public about the importance of gold while fostering a generation proficient in gold and Ar-Rahnu literacy.
The Chairman of Kelatan State Investment, Dato’ Bentara Kanan Ustaz Dato’ Hj. Ahmad Yakob stated that the aim of this collaboration is to enhance awareness within the public regarding the necessity of opting for halal choices through the use of Syariah- compliant services.
“This collaboration also produces skilled manpower in the market as preparation for employment in the Ar-Rahnu sector, in addition to providing higher level recognition or accreditation to participants who complete the Ar-Rahnu Operational Management (AOM) and Gold Appraisal Training (GAT),” he said.
Allah S.W.T said regarding the institution of Rahnu which means:
“If you are on a journey and cannot find a scribe, then a security deposit (should be) taken.
(Al-Baqarah, verse 283)
According to him, during the 19th century, conventional pawnbroking served as an institution for providing instant cash loans by accepting gold or other valuable items as collateral. However, this act was often associated with the practice of usury.
“Ar-Rahn was establish upon the suggestion by the State Government to provide a pawnbroking system that is free from usury and adheres to Syariah principles, as an alternative to conventional pawnbroking system.
“Ar-Rahn pawnbroking system is also an effort by PKB to offer convenient and fast cash financing services; with minimal financing requirements – aged 18 and above and possessing gold to pawn.
“Ar-Rahn has significantly facilitated small traders in acquiring immediate business capital and also marginalised groups excluded from the mainstream banking system,” he said at the Signing Ceremony of Memorandum of Agreement (MoA) between Universiti Utara Malaysia (UUM) and Kelantan State Investment (PKB) at the Visitors’ Lounge.
He explained that starting with the concepts of Qard and Ujrah in pawn transactions and the redemption of pledges (gold), Ar-Rahn has now shifted to the use of the Tawarruq concept as suggested by Central Bank of Malaysia and the Malaysia Cooperative Commission.
Currently, Ar-Rahn continues to evolve innovatively with the use of digital / online methods through the development of Ar-Rahn Online System (AROS), online payment portal (arrahnPAY), online auctions (Ar-Rahn Bid) and mobile applications, all developed in-house.
PKB is a state government company of Kelantan, owned by Kelantan State Economic Development Corporation (PKINK). It has been steadily expanding with 34 branches of its own and 74 franchise branches throughout Malaysia.
As a Syariah-compliant microfinance institution, Ar-Rahn, at the age of 32, has become one of the five largest pawnbrokers in Malaysia.
Meanwhile, the Vice-Chancellor of Universiti Utara Malaysia (UUM), Prof. Dr Mohd Foad Sakdan emphasised the significance of the MoA for UUM, especially considering the immense of potential in the Ar-Rahnu industry. He also expressed full support for the proposal to establish the Ar-Rahnu Professional Certification (APC) under the aegis of Islamic Business School (IBS).
“The academic experts in the field of Ar-Rahnu at IBS possess the Rahnu certification. They have successfully completed the module and special examination, qualifying them as APC instructors. The APC Unit has been appointed as the Training and Professional Certification Centre for Ar-Rahnu registered under PKB.
“In line with the appointment, the APC Unit is responsible for managing two professional certificates in Ar-Rahnu, namely Ar-Rahnu Operational Management (AOM ) and Gold Appraisal Training (GAT).
