A Study of Profit and Failure Rate of Musharakah Mutanaqisah Homeownership Partnership (MMP) by Retrospective Actuarial Approach and Simulation Study: The Case of Abandoned Housing Project

Farhana Syed Ahmad; Shamsul Rijal Muhammad Sabri

doi:doi:10.11648/j.sjams.20140206.13

| Peer-Reviewed

A Study of Profit and Failure Rate of Musharakah Mutanaqisah Homeownership Partnership (MMP) by Retrospective Actuarial Approach and Simulation Study: The Case of Abandoned Housing Project

Farhana Syed Ahmad, Shamsul Rijal Muhammad Sabri

Published in Science Journal of Applied Mathematics and Statistics (Volume 2, Issue 6)

Received: 12 December 2014 Accepted: 22 December 2014 Published: 31 December 2014

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

The paper observed the impact of the profit rate and failure rate to the profit of Musharakah Mutanaqisah Homeownership Partnership (MMP) that exercise in local Islamic Bank in Malaysia while the probability of the housing project’s failure is considered into this facility. The retrospective method is a retrospective method of calculating the outstanding balance in actuarial mathematics. Moreover, this study derived a probability of abandoned housing project equations implementing from the actuarial mathematics. The failure rate is assumed to be exponentially distributed. The profit will varies due to the changes of variables like profit rate, failure rate and tenure. This study also presented the intention of IB in bearing the losses of MMP when abandoned housing project occurred.

Published in	Science Journal of Applied Mathematics and Statistics (Volume 2, Issue 6)
DOI	10.11648/j.sjams.20140206.13
Page(s)	116-121
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Abandoned Housing Project, Actuarial Method, Failure Rate, Outstanding Balance, Profit Rate, Retrospective, Tenure

References

[1]	AL-QURAN. (n.d.).
[2]	Chan, E. H., & Tse, R. Y. (2003). Cultural Consideration in International Construction Contracts. Journal Of Contruction Engineering And Management (ASCE).
[3]	Chau, K. W., Wong, S. K., & Yiu, C. Y. (2007). Housing Quality in Forward Contract Marketing. Springer Science + Business Media, LLC.
[4]	Dahlan, N. H. (2011). Legal Issues in the Rehabilitation of Abandoned Housing Projects of the Liquidity Housing- Developer-Companies in Penisular Malaysia. European Journal of Social Science Vol 23 Number 3 , 392-406 .
[5]	Hoe, Y. E. (2013). Causes of Abandoned Construction Projects in Malaysia. University Tunku Abdul Rahman(UTAR).
[6]	Iqbal Z., M. A. (2007). An Introduction to Islamic Finance: Theory and Practise. John Wiley &Sons.
[7]	Kellison, S. G. (2005). The Theory of Interest Second Edition. McGraw Hill .
[8]	Md.Dahlan, H. N. (2008). In Need to define 'Abandoned Housing Project' In Peninsular Malaysia: An Analysis. IIUM LAW JOURNAL , Vol 16. No 1.
[9]	Sabri, S. M. (2013). The Willingness of Musharakah Mutanaqisah Partnership in Bearing the Loss- By Actuarial Approach to evaluate the Bank Investment Income by the Case of Abandoned Housing Project. Journal of Emerging Technologies in Web Intelligence, 117-121.
[10]	Sabri, S. M., & Ahmad, F. S. (2014). A Retrospective Study of the Behavior of Profit in Musharakah Mutanaqisah Partnership Home Ownership (MMP) By the Case of Abandoned Housing Project. Proceedings of the 21st National Symposium on Mathematical Science (SKSM21) (pp. 1067-1072). AIP Publishing .
[11]	Salman, S. A., & Nu Htay, S. (2011). Is Any Defect on Islamic Product: A Case Study of BBA. Retrieved from ire.iium.edu.my.
[12]	Salman, S. A., & Nu Htay, S. N. (2011). Is Any Defect In Islamic Banking Product? A case Study of BBA.
[13]	Salwani, R. (2008). The Principles of Gharar In Bai Bithaman Ajil Contract. Proceeding of The MFA Conference, (pp. .400-437).
[14]	Salwani, R. (n.d.). The Principle of Gharar In Bai Bithaman Ajil Contract.
[15]	Shahwan, S., Muhammad , M. O., & Abdul Rahman, Z. (2011). Home Financing Price Issue in The Bai' Bithaman Ajil (BBA) and Musharakah Mutanaqisah (MMP) . GJAT , 23-36.
[16]	Taib, F. M., Ramayah, D., & Razak, A. (2008). Factors influencing intention to use Diminishing Partnership Home Financing. International Journal; of Islamic and Middle Eeastern Finance and Management Vol.q No.3, 235-248.
[17]	Teoh , A., & Lim , E. L. (2011, March 22). A Banker's Perspective. The Association of Banks in Malaysia. Retrieved from http://www.abm.org.my/BuildThenSellConcept;ABanker%E2%80%99s_Perspectives.aspx
[18]	Yusof, N. M. (1997). Strategies to Implement the 'Build Then Sell' housing delivery system in Malaysia. Hbaitat International 34(1), 53-58.

Cite This Article

Plain Text BibTeX RIS

APA Style

Farhana Syed Ahmad, Shamsul Rijal Muhammad Sabri. (2014). A Study of Profit and Failure Rate of Musharakah Mutanaqisah Homeownership Partnership (MMP) by Retrospective Actuarial Approach and Simulation Study: The Case of Abandoned Housing Project. Science Journal of Applied Mathematics and Statistics, 2(6), 116-121. https://doi.org/10.11648/j.sjams.20140206.13

Copy | Download

ACS Style

Farhana Syed Ahmad; Shamsul Rijal Muhammad Sabri. A Study of Profit and Failure Rate of Musharakah Mutanaqisah Homeownership Partnership (MMP) by Retrospective Actuarial Approach and Simulation Study: The Case of Abandoned Housing Project. Sci. J. Appl. Math. Stat. 2014, 2(6), 116-121. doi: 10.11648/j.sjams.20140206.13

Copy | Download

AMA Style

Farhana Syed Ahmad, Shamsul Rijal Muhammad Sabri. A Study of Profit and Failure Rate of Musharakah Mutanaqisah Homeownership Partnership (MMP) by Retrospective Actuarial Approach and Simulation Study: The Case of Abandoned Housing Project. Sci J Appl Math Stat. 2014;2(6):116-121. doi: 10.11648/j.sjams.20140206.13

Copy | Download

@article{10.11648/j.sjams.20140206.13,
  author = {Farhana Syed Ahmad and Shamsul Rijal Muhammad Sabri},
  title = {A Study of Profit and Failure Rate of Musharakah Mutanaqisah Homeownership Partnership (MMP) by Retrospective Actuarial Approach and Simulation Study: The Case of Abandoned Housing Project},
  journal = {Science Journal of Applied Mathematics and Statistics},
  volume = {2},
  number = {6},
  pages = {116-121},
  doi = {10.11648/j.sjams.20140206.13},
  url = {https://doi.org/10.11648/j.sjams.20140206.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjams.20140206.13},
  abstract = {The paper observed the impact of the profit rate and failure rate to the profit of Musharakah Mutanaqisah Homeownership Partnership (MMP) that exercise in local Islamic Bank in Malaysia while the probability of the housing project’s failure is considered into this facility. The retrospective method is a retrospective method of calculating the outstanding balance in actuarial mathematics. Moreover, this study derived a probability of abandoned housing project equations implementing from the actuarial mathematics. The failure rate is assumed to be exponentially distributed. The profit will varies due to the changes of variables like profit rate, failure rate and tenure. This study also presented the intention of IB in bearing the losses of MMP when abandoned housing project occurred.},
 year = {2014}
}

Copy | Download

TY  - JOUR
T1  - A Study of Profit and Failure Rate of Musharakah Mutanaqisah Homeownership Partnership (MMP) by Retrospective Actuarial Approach and Simulation Study: The Case of Abandoned Housing Project
AU  - Farhana Syed Ahmad
AU  - Shamsul Rijal Muhammad Sabri
Y1  - 2014/12/31
PY  - 2014
N1  - https://doi.org/10.11648/j.sjams.20140206.13
DO  - 10.11648/j.sjams.20140206.13
T2  - Science Journal of Applied Mathematics and Statistics
JF  - Science Journal of Applied Mathematics and Statistics
JO  - Science Journal of Applied Mathematics and Statistics
SP  - 116
EP  - 121
PB  - Science Publishing Group
SN  - 2376-9513
UR  - https://doi.org/10.11648/j.sjams.20140206.13
AB  - The paper observed the impact of the profit rate and failure rate to the profit of Musharakah Mutanaqisah Homeownership Partnership (MMP) that exercise in local Islamic Bank in Malaysia while the probability of the housing project’s failure is considered into this facility. The retrospective method is a retrospective method of calculating the outstanding balance in actuarial mathematics. Moreover, this study derived a probability of abandoned housing project equations implementing from the actuarial mathematics. The failure rate is assumed to be exponentially distributed. The profit will varies due to the changes of variables like profit rate, failure rate and tenure. This study also presented the intention of IB in bearing the losses of MMP when abandoned housing project occurred.
VL  - 2
IS  - 6
ER  -

Copy | Download

Author Information

Farhana Syed Ahmad

School of Mathematical Sciences, Universiti Sains Malaysia, 11800 USM, Pulau Pinang, Malaysia
Shamsul Rijal Muhammad Sabri

School of Mathematical Sciences, Universiti Sains Malaysia, 11800 USM, Pulau Pinang, Malaysia

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Farhana Syed Ahmad, Shamsul Rijal Muhammad Sabri. (2014). A Study of Profit and Failure Rate of Musharakah Mutanaqisah Homeownership Partnership (MMP) by Retrospective Actuarial Approach and Simulation Study: The Case of Abandoned Housing Project. Science Journal of Applied Mathematics and Statistics, 2(6), 116-121. https://doi.org/10.11648/j.sjams.20140206.13

Copy | Download

ACS Style

Farhana Syed Ahmad; Shamsul Rijal Muhammad Sabri. A Study of Profit and Failure Rate of Musharakah Mutanaqisah Homeownership Partnership (MMP) by Retrospective Actuarial Approach and Simulation Study: The Case of Abandoned Housing Project. Sci. J. Appl. Math. Stat. 2014, 2(6), 116-121. doi: 10.11648/j.sjams.20140206.13

Copy | Download

AMA Style

Farhana Syed Ahmad, Shamsul Rijal Muhammad Sabri. A Study of Profit and Failure Rate of Musharakah Mutanaqisah Homeownership Partnership (MMP) by Retrospective Actuarial Approach and Simulation Study: The Case of Abandoned Housing Project. Sci J Appl Math Stat. 2014;2(6):116-121. doi: 10.11648/j.sjams.20140206.13

Copy | Download

@article{10.11648/j.sjams.20140206.13,
  author = {Farhana Syed Ahmad and Shamsul Rijal Muhammad Sabri},
  title = {A Study of Profit and Failure Rate of Musharakah Mutanaqisah Homeownership Partnership (MMP) by Retrospective Actuarial Approach and Simulation Study: The Case of Abandoned Housing Project},
  journal = {Science Journal of Applied Mathematics and Statistics},
  volume = {2},
  number = {6},
  pages = {116-121},
  doi = {10.11648/j.sjams.20140206.13},
  url = {https://doi.org/10.11648/j.sjams.20140206.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjams.20140206.13},
  abstract = {The paper observed the impact of the profit rate and failure rate to the profit of Musharakah Mutanaqisah Homeownership Partnership (MMP) that exercise in local Islamic Bank in Malaysia while the probability of the housing project’s failure is considered into this facility. The retrospective method is a retrospective method of calculating the outstanding balance in actuarial mathematics. Moreover, this study derived a probability of abandoned housing project equations implementing from the actuarial mathematics. The failure rate is assumed to be exponentially distributed. The profit will varies due to the changes of variables like profit rate, failure rate and tenure. This study also presented the intention of IB in bearing the losses of MMP when abandoned housing project occurred.},
 year = {2014}
}

Copy | Download

TY  - JOUR
T1  - A Study of Profit and Failure Rate of Musharakah Mutanaqisah Homeownership Partnership (MMP) by Retrospective Actuarial Approach and Simulation Study: The Case of Abandoned Housing Project
AU  - Farhana Syed Ahmad
AU  - Shamsul Rijal Muhammad Sabri
Y1  - 2014/12/31
PY  - 2014
N1  - https://doi.org/10.11648/j.sjams.20140206.13
DO  - 10.11648/j.sjams.20140206.13
T2  - Science Journal of Applied Mathematics and Statistics
JF  - Science Journal of Applied Mathematics and Statistics
JO  - Science Journal of Applied Mathematics and Statistics
SP  - 116
EP  - 121
PB  - Science Publishing Group
SN  - 2376-9513
UR  - https://doi.org/10.11648/j.sjams.20140206.13
AB  - The paper observed the impact of the profit rate and failure rate to the profit of Musharakah Mutanaqisah Homeownership Partnership (MMP) that exercise in local Islamic Bank in Malaysia while the probability of the housing project’s failure is considered into this facility. The retrospective method is a retrospective method of calculating the outstanding balance in actuarial mathematics. Moreover, this study derived a probability of abandoned housing project equations implementing from the actuarial mathematics. The failure rate is assumed to be exponentially distributed. The profit will varies due to the changes of variables like profit rate, failure rate and tenure. This study also presented the intention of IB in bearing the losses of MMP when abandoned housing project occurred.
VL  - 2
IS  - 6
ER  -

Copy | Download