Understanding the mushārakah mutanāqiṣah of Koperasi Pembiayaan Syariah Angkasa (KOPSYA)

Compared to other Shariah-compliant contracts, Musharakha mutanaqisah was initially the preferred contract in Malaysia as it seemed to be closer to Islamic tenets than others. Nevertheless, MM is now considered less appealing to IFIs due to its existing challenges. This paper aims to emphasize on MM as practiced by ICs which will highlight approaches to default, pricing of rental rates, profit sharing method and early settlement which differ to the practice of MM by IFIs.