ASB explained

1. In May and June 2010 editions of Personal Money, both Dr. Zurina Shafii and Mahadzir Ahmad wrote at length about ASB investment in the Islamic Financial Planning column. First it was Dr Zurina with "Sussing out halal options" and then it was Mahadzir with "Finding an alternative".

2. Dr Zurina wrote in her article about how a fund is categorized to be Shariah compliant fund. Basically this is the guide how Securities Commission (SC) determines Shariah compliant funds. From the guide, ASB is not categorized as Shariah compliant fund because it has more than 30% investment in riba based banking. Besides that, ASB also does not have a Shariah advisory council to advise on its investments.

3. Mahadzir in his article elaborate on why ASB is categorized as non Shariah compliant fund and the different rulings by Jawatankuasa Fatwa Majlis Kebangsan Bagi Hal Ehwal Ugama Islam Malaysia, the Selangor state fatwa committee and the Perak state fatwa committee with regards to ASB investment by Muslims.

4. While I have to agree that ASB can be categorized as one of the best investment available to Bumiputera in the market. No risk, capital protected and handsome yearly dividends. Who can resist all that?

5. Its good to know that PNB is actually trying to introduce an ad-hoc special project of Shariah compliancy under its president and group CEO, Tan Sri Hamad Kama Piah according to Dr Zurina. Whether new Shariah compliant products will be introduced or ASB will be restructured remains to be seen but I do hope for the latter.

6. I'm certainly in support of promoting Islamic financial products especially for Muslims. If the Muslims themselves does not support the system, who else will?

7. But when it involves our hard earned money, there are certainly many of us who are not willing to take unnecessary risks hence ASB is seen as the ultimate choice. That's just human conscience.

8. Since there are different rulings, to me, there is no right or wrong in this matter. It depends on how you look at it. Even the scholars have different views, why can't each of us? If we were to go on and argue on each rulings, there will be no ending to it. Just stick to what you believe and invest accordingly.

9. Thus, I hope PNB will expedite the introduction of the Shariah advisory council as its advisor.