Ipmuda becomes Malaysia’s 1st Shariah-compliant building material trading house

by BERNAMA / pic credit: ipmuda.com.my

IPMUDA Bhd has become Malaysia’s first fully Shariah-compliant building materials and solutions trading house following its implementation of Shariah-compliant procedures.

In a statement today, the group said the procedures apply to all of its building material products and services under its trading arm, such as tiles, ironmongery, sanitary wares and interlocking blocking system, including its in-house brands such as Ortolani, Concord and Duraset.

The procedures aimed to promote socially responsible and ethical business practices through transparent contractual terms and obligations, eliminating hidden caveats or conditions, particularly in terms of fees or charges, it said.

“The group will also eliminate any compounding interest and penalty to be imposed on its customers by requiring only charges against actual cost incurred from late payments, in line with the Shariah concept of ta’widh.

“Any excess proceeds over and above the actual cost will be channelled to charitable organisations and causes benefitting the communities, particularly in areas relevant to the group such as providing green and stable electricity to remote areas via the installation of solar panels and micro-hydro turbines,” it said.

Additionally, any early payment or settlement would entitle customers for cheaper prices and early rebates under the Shariah concept of Ibra’, further benefiting the customers, the group said.

CEO Jeffri M Yusup (picture) said, among other things, the Shariah-compliant procedures helps to eliminate uncompetitive bargaining practices.

“Incorporating Shariah practices into our trading house acts as a mechanism to provide attractive and unique incentives to our customers,” he said.

The group said the Shariah-compliant procedures will improve collection turnaround days, thus safeguarding the group’s cash flow management and enable it to increase client retention, confidence and loyalty through the improved customer experience.

Jeffri said the move complements Ipmuda’s aspiration to be a socially responsible organisation as the group is gearing up its environmental, social and governance initiatives across all its business segments.

“Our renewable energy and healthcare divisions are, by its nature, inherently within the sustainability space,  and now our trading division will join in the same journey towards building a more sustainable future,” he added.