Bank Muamalat, in Malaysia, introduced the iTEKAD initiative to assist and guide underserved communities to retain jobs, generate employment and alleviate financial hardship. This initiative offers capital injection, based on Islamic finance, and training consultation to enable small entrepreneurs to grow and expand their businesses.
Bank Muamalat, a leading Islamic financial institution in Malaysia, has been at the forefront of promoting economic equity since its inception in 1999. With a firm commitment to values-based and Shariah-compliant banking, the bank offers a wide range of financial services that meet the needs of individuals, businesses, and underserved communities. In recent years, Bank Muamalat has turned its focus to addressing a critical issue in Malaysia; the financial struggles faced by microentrepreneurs and low-income groups who often lack access to traditional banking services.
To tackle this, Bank Muamalat started the iTEKAD programme – an initiative launched by the Central Bank of Malaysia as a response to the financial challenges faced by underserved communities, particularly in the post-pandemic era. The programme is split into two; Mawaddah and Mahabbah, and it uses Islamic banking principles to provide capital, training, and mentorship to those in need. By leveraging zakat (charitable giving), waqf (endowment), and profit-sharing mechanisms like mudarabah and qard (benevolent loans), the iTEKAD programme offers a lifeline to microentrepreneurs, empowering them to build sustainable businesses and contribute to the economy.
Through iTEKAD, Bank Muamalat continues to play a key role in driving positive change in Malaysia’s underserved communities.
Transformation Stories from Entrepreneurs: From Small Farms to Supermarkets
In the bustling farms of Pahang, a remarkable story of entrepreneurial success is unfolding. Thanks to Bank Muamalat’s iTEKAD programme, Siti Suraya Shariff, founder of Sorrelicious Legacy, has transformed her passion for roselle cultivation into a thriving business. With the bank’s financial backing and structured training, her roselle-based drinks and cordials now fill the shelves of major supermarkets across Malaysia.
Suraya’s journey started in 2019, when she first ventured into the production of roselle, a hibiscus plant known for its health benefits. Beginning with just 1.6 hectares, she faced the challenges of running a small agricultural business. Like many microentrepreneurs, she struggled with limited access to financial resources and business expertise. However, her determination, coupled with support from Bank Muamalat’s iTEKAD initiative, allowed her to expand her cultivation to 4 hectares by 2023.
Through the iTEKAD programme, Suraya received more than just financial assistance. The programme’s comprehensive training equipped her with business acumen, allowing her to refine her marketing strategy and product development. Today, her brand, Sorrelicious Legacy, has grown beyond local markets, with aspirations of exporting to Brunei, Thailand, Singapore, and even the United Arab Emirates.
Suraya’s success story is a testament to the transformative impact of Bank Muamalat’s iTEKAD initiative, which continues to uplift entrepreneurs from underserved communities by providing both capital and knowledge. This story is one of many, as the bank plays a pivotal role in empowering microbusinesses across Malaysia.
ITEKAD in Malaysia’s Future: A National Commitment
By the end of 2023, the iTEKAD programme had disbursed a total of around USD 17.4 million (RM 75.5 million) across both the Mahabbah and Mawaddah models. This funding has reached 6,019 participants, enabling them to receive structured training, acquire business assets, and access financing.
The government’s commitment to expanding iTEKAD was further demonstrated in Budget 2024, which allocated over USD 6 million (RM25 million) as a matching grant for participating financial institutions. This demonstrates a long-term commitment to helping microentrepreneurs succeed by providing the essential resources and training needed for sustainable growth.
As Suraya’s story illustrates, this support is more than just financial—it’s about creating pathways for people to achieve their dreams. By combining Islamic finance principles with practical training, iTEKAD equips entrepreneurs with both the tools and the confidence to grow their businesses.
Conclusion: A Brighter Future
The iTEKAD initiative and its programmes continue to support underserved communities, promote sustainable development, and contribute to societal well-being. By blending zakat, waqf, and other social finance instruments with microfinance, the programme provides a holistic approach to economic empowerment, particularly for those who would otherwise have limited access to financial services.
For Siti Suraya, the future looks brighter than ever. With her expanded roselle farm and the success of her Sorrelicious Legacy brand, she’s now aiming to penetrate international markets, targeting regions like Brunei, Thailand, Singapore, and even the United Arab Emirates. Her journey from a small farm to potentially becoming a global supplier is just one example of how the iTEKAD programme can unlock opportunities for Malaysia’s microentrepreneurs.
Bank Muamalat’s role in Suraya’s success is a shining example of how Islamic banking can drive positive change in local communities. Through programmes like iTEKAD Mawaddah and iTEKAD Mahabbah, the bank continues to empower individuals, promote sustainable development, and contribute to the well-being of Malaysia’s underserved populations.
Glossary: Key Islamic Concepts in iTEKAD
- Mudarabah: A profit-sharing contract between a capital provider (Rabbul Mal) and an entrepreneur (Mudarib). The capital provider invests, and the entrepreneur manages the business. Profits are shared, but losses are borne by the capital provider unless due to mismanagement by the entrepreneur.
- Qard: An interest-free loan that is given for welfare purposes or to help someone in need. In iTEKAD Mahabbah, it allows microentrepreneurs to access capital without financial strain from interest payments.
- Zakat: A form of almsgiving treated as a religious obligation, which by Islamic law, is obligatory for all Muslims who meet certain criteria. Zakat funds are utilized in the iTEKAD programme to provide financial support to the needy.
- Waqf: A religious endowment in Islam, typically involving donating land or property for charitable purposes. In some iTEKAD programmes, waqf is used as part of the financing structure to help entrepreneurs acquire business assets.
