Quarterly Market Outlook
In the rich tapestry of Malaysia’s unique multicultural heritage, we find pearls of wisdom that transcend time. These treasures offer invaluable insights into every aspect of life, including wealth management. As we welcome Hari Raya Aidilfitri, we are reminded of these pearls and their relevance to our financial wellbeing.
As the crescent moon marks the end of Ramadan and ushers in the start of Syawal, Muslims worldwide celebrate a month-long festival that is as much about spiritual rejuvenation and thanksgiving as it is about communal social and financial prosperity.
Beyond its immediate celebratory aspects, Hari Raya Aidilfitri, or Eid ul Fitr, presents an opportunity for Muslims (and anyone else) to reflect on the principles of Islamic wealth management, ethical conduct, and the pursuit of spiritual fulfilment.
The journey from a period of reflection and restraint to one of rejoicing and abundance mirrors life itself. The message of, “Be patient, do good, and when the time comes you will be rewarded many times over”, is repeated several times in the Quran in various passages, emphasising its importance in the Islamic faith. When we see ourselves as part of the big picture, our blessings will lift others as well.
In life, and especially during the month of Ramadan, we are encouraged to focus on bettering ourselves through patience, perseverance, and being of service to others. Then, when Hari Raya arrives and we celebrate the month-long festival, we can truly feel gratitude for our blessings and the fruits of our labour.
Forgiveness lies at the heart of the spirit of Aidilfitri, embodying themes of compassion, reconciliation, and gratitude – core elements of spiritual cleansing. Maaf zahir dan batin signifies seeking redemption and to forgiving with an open heart.
As Muslims gather to celebrate Hari Raya Aidilfitri with feasting, prayers, and festivities, forgiveness serves as a cornerstone of the holiday, symbolising the triumph of love over hate, unity over division, and mercy over judgement. Through acts of forgiveness and reconciliation, Muslims embody the teachings of Islam and the virtues of forgiveness and reconciliation, fostering a culture of compassion, harmony, and peace within their communities and beyond.
When we forgive others and extend mercy even to those who have wronged us, we release ourselves from the burden of past grievances and start anew. This leads to emotional healing, inner peace, and spiritual growth as we remind ourselves that life transcends any disagreement or misunderstanding.
We can learn valuable lessons from Islamic wealth management, particularly during this time of year, and these aren’t just related to wealth accumulation.
Wealth is considered to be entrusted to us as a worldly amanah, hence we are discouraged from keeping excessive amounts solely for accumulation. The greater our wealth, the greater our responsibility, and the more we are obliged to give. Part of the exercise of spiritual cleansing is purifying one’s wealth by giving a specified portion to those in need through zakat, or a religious tax. The act of paying zakat detaches us from materialism and serves as a reminder of our duty towards the community.
Zakat is mandatory for all qualified Muslims and is one of the five pillars of Islam. Zakat al-Mal (a fixed percentage of wealth in excess of basic comforts) and zakat al-Fitr (a fixed amount paid before the Aidilfitri prayers) ensure that wealth is circulated among the community to alleviate poverty and social inequality.
While zakat is mandatory for those who can afford it, sadaqah, which includes any act of charitable giving, is voluntary. Sadaqah (from which we derive the word sedekah) includes any act of charitable giving, including volunteering one’s time and skill for the benefit of the community. The definition of sadaqah is broad and it is meant to strengthen communal ties and bring joy to others – even simple acts of kindness like smiling at a stranger and wishing them good morning is considered sadaqah!
Another voluntary form of purifying wealth is waqf, which is a permanent and irrevocable dedication of a portion of one’s wealth for the benefit of the community. It is an important means of providing welfare services and infrastructure in addition to, or in the absence of, state facilities.
The assets endowed through waqf can include properties, land, buildings, or other goods that can sustainably generate income or provide services. Examples include clinics, schools, or community centres. A waqf is managed by a trustee, or mutawalli, who oversees its operation and ensures its benefits are allocated according to the founder’s wishes.
As we forgive others, we also must find room in our hearts to forgive ourselves. It can be difficult, but we must acknowledge our mistakes and strive to improve ourselves. From this idea of forgiveness and self-love, Islamic wealth management promotes responsible financial behaviour and prudent planning for the future. And you don’t even have to be a Muslim to adopt this approach.
By forgiving ourselves for our past financial errors and learning from them, we can adopt a proactive approach to financial management in accordance with Islamic principles. This includes budgeting, investing ethically, and avoiding excessive debt by living within our means to ensure financial stability and security, not only for ourselves, but for future generations.
In Islam, forgiveness is intertwined with concepts of honesty, integrity, and fairness in business dealings. By forgiving others and conducting business with integrity and transparency, individuals can build trust and foster harmonious relationships in their financial transactions. This aligns with the teachings of Islam, which emphasise the importance of honesty, fairness, and mutual respect in all aspects of life, including wealth management.
Transactions are backed by tangible assets, such as real estate, commodities, or productive enterprises. This principle discourages speculative and uncertain transactions that are akin to gambling or chance. Investments are diversified across various asset classes to mitigate risk and potentially enhance returns in the long term.
There is a lot of wisdom and sensibility in the Islamic approach to wealth management. Islamic wealth management aims to preserve and grow wealth through ethical and Shariah-compliant investment avenues, while also ensuring socially responsible investment practices. It places great emphasis on the responsibility of individuals and institutions to contribute to the welfare of the community, promoting social justice and equitable distribution of resources.
Islamic wealth management emphasises ethical business practices and prohibits activities such as usury or interest (riba) and exploitation. Muslims are not allowed to invest in businesses that bring harm, such as alcohol, gambling, and tobacco. Once a business is deemed to cause harm to the environment and community, it can no longer be considered Shariah-compliant. Speak to your Relationship Manager to decide which Shariah-compliant investments are suitable for you based on your financial goals and risk profile.
As we reflect on ourselves and our financial paths, we realise there’s a lot more to Hari Raya Aidilfitri than open houses and Duit Raya. As families and communities come together in joy and gratitude, the festival illuminates the path toward financial prosperity, guided by the enduring principles.
In this confluence of the material and the spiritual, Hari Raya Aidilfitri encapsulates the essence of true prosperity: a balance that nurtures not just individual wealth, but the well-being of society and the spiritual fulfilment of the soul.
From all of us at RHB, Selamat Hari Raya Aidilfitri, Maaf Zahir dan Batin! May this festive season light up your path to true prosperity and peace.
Get in touch with RHB Premier today.
This publication has been prepared by RHB Bank Berhad and is solely for your information only. It may not be copied, published, circulated, reproduced or distributed in whole or part to any person without the prior written consent of RHB Bank Berhad. In preparing this article, RHB Bank Berhad has relied upon and assumed the accuracy and completeness of all information available from public references and articles or which was otherwise reviewed by RHB Bank Berhad. Accordingly, whilst we have taken all reasonable care to ensure that the information contained in this article is not untrue or misleading at the time of publication, we cannot guarantee its accuracy or completeness or fairness of such opinions and make no representation or warranty (whether expressed or implied) and accept no responsibility or liability for its accuracy or completeness. You should not act on the information contained in this article without first independently verifying its contents.
Any opinion, historical account, personal profile, estimate or data contained in this article is based on information available as of the date of this article and are subject to change without notice. It does not constitute any advice, offer or solicitation by RHB Bank Berhad. This document and its contents are not intended to constitute an offer for sale and/or invitation to subscribe for or purchase or otherwise acquire any of the instruments referred to herein.
Disclaimer for Video and Podcast by RHB Asset Management:The podcast provided herein is solely for information purposes only. It does not take into account the specific investment objectives, financial situations or particular needs of any particular person.
This podcast does not constitute an offer, solicitation or recommendation to buy or sell or subscribe for any security or financial instrument or to enter into any transaction or to participate in any particular trading or investment strategy. Information contained in the podcast should not be relied upon when making investment decisions. You should seek independent legal or tax advice before making any investment decisions. Investments are subject to investment risks, including the possible loss of the principal amount invested. Value of the investments and the income, if any, may fall or rise.
No representation or warranty whatsoever (including without limitation any representation or warranty as to accuracy, usefulness, adequacy, timeliness or completeness) in respect of any information (including without limitation any statement, figures, opinion, view or estimate) provided herein and it should not be relied upon as such. The information provided herein may contain projections or other forward-looking statements regarding future events or future performance of countries, assets, markets or companies. Actual events or results may differ materially. Past performance figures are not necessarily indicative of future or likely performance.
Any reference to any specific company, financial product or asset class in whatever way is used for illustrative purposes only and does not constitute a recommendation on the same. RHBAM does not guarantee that all risks associated to the transactions mentioned herein have been identified, nor does it provide advice as to whether you should enter into any such transaction. The contents hereof may not be reproduced or disseminated in whole or in part without RHBAM’s written consent.
This podcast has not been reviewed by the Securities Commission Malaysia. You should not act on the information contained in this podcast without first independently verifying its contents.
Disclaimer for Video and Podcast by Economics and Market Strategy:This report is prepared for information purposes only by the Economics and Market Strategy division within RHB Bank Berhad and/or its subsidiaries related companies and affiliates, as applicable (“RHB”). All research is based on material compiled from data considered to be reliable at the time of writing, but RHB does not make any representation or warranty, express or implied, as to its accuracy, completeness or correctness.
Neither this report, nor any opinion expressed herein, should be construed as an offer to sell or a solicitation of an offer to acquire any securities or financial instruments mentioned herein. RHB (including its officers, directors, associates, connected parties, and/or employees) accepts no liability whatsoever for any direct or consequential loss arising from the use of this report or its contents. This report may not be reproduced, distributed or published by any recipient for any purpose without prior consent of RHB and RHB (including its officers, directors, associates, connected parties, and/or employees) accepts no liability whatsoever for the actions of third parties in this respect. Recipients are reminded that the financial circumstances surrounding any company or any market covered in the reports may change since the time of their publication. The contents of this report are also subject to change without any notification.
This report does not purport to be comprehensive or to contain all the information that a prospective investor may need in order to make an investment decision. The recipient of this report is making its own independent assessment and decisions regarding any securities or financial instruments referenced herein. Any investment discussed or recommended in this report may be unsuitable for an investor depending on the investor’s specific investment objectives and financial position. The material in this report is general information intended for recipients who understand the risks of investing in financial instruments. This report does not take into account whether an investment or course of action and any associated risks are suitable for the recipient. Any recommendations contained in this report must therefore not be relied upon as investment advice based on the recipient's personal circumstances. Investors should make their own independent evaluation of the information contained herein, consider their own investment objective, financial situation and particular needs and seek their own financial, business, legal, tax and other advice regarding the appropriateness of investing in any securities or the investment strategies discussed or recommended in this report.
RHB (including its respective directors, associates, connected parties and/or employees) may own or have positions in securities or financial instruments of the company(ies) covered in this research report or any securities or financial instruments related thereto, and may from time to time add to, or dispose off, or may be materially interested in any such securities or financial instruments. Further, RHB does and seeks to do business with the company(ies) covered in this research report and may from time to time act as market maker or have assumed an underwriting commitment in securities or financial instruments of such company(ies), may sell them or buy them from customers on a principal basis and may also perform or seek to perform significant banking, advisory or underwriting services for or relating to such company(ies), as well as solicit such banking, advisory or other services from any entity mentioned in this research report.
RHB (including its respective directors, associates, connected parties and/or employees) do not accept any liability, be it directly, indirectly or consequential losses, loss of profits or damages that may arise from any reliance based on this report or further communication given in relation to this report, including where such losses, loss of profits or damages are alleged to have arisen due to the contents of such report or communication being perceived as defamatory in nature.
This podcast has not been reviewed by the Securities Commission (SC) and/or Bank Negara Malaysia (BNM).
RHB Bank Berhad 196501000373 (6171-M)
