Pawah System Through Mudharabah Concept at Individual's Level

Abstract

Pawah system is an informal agreement between breeder of livestock (entrepreneur) and capital provider has been practiced from generations to generations in Malaysia. However, it is not realized that pawah system is embedded in Mudharabah concept. On the other hand, Mudharabah is also facing some problems to be implemented in the Islamic banking context. Thus, this study aims to investigate how pawah system can be used through Mudharabah concept. The objective is also to analyze the similarity between pawah and Mudharabah in term of concepts and features. The qualitative method was adopted where the data were collected to the present study by in-depth interview and library research. By the end of this study, it is found that pawah system can be used through Mudharabah concept and also penetrate at individual’s level by reintroducing pawah system. The result of this study attempts to put forward suggestions in improving the pawah system through Mudharabah concept and also propose ideas of having pawah system through Mudharabah concept at individual’s level between the capital provider and the entrepreneur.