INNOVATIVE SHARIAH-COMPLIANT FINANCING SOLUTIONS FOR AFFORDABLE HOUSING: INTEGRATING PAYMENT TECHNOLOGIES

Abstract

The Malaysian government has launched numerous initiatives to provide affordable housing for low- and middle-income groups. However, rising living costs and the gap between household income and property prices continue to make homeownership unattainable for many. This study explores Shariah-compliant financing models, including Murabaha, Ijara, and Diminishing Musharakah, to assess their relevance to housing affordability in Malaysia. It also analyzes the role of digital payment technologies such as blockchain, mobile banking, and peer-to-peer (P2P) lending in improving efficiency, accessibility, and cost-effectiveness in housing finance. Furthermore, the study examines the integration of Shariah-compliant principles with fintech innovations to address the housing affordability crisis and provides actionable insights for policymakers and financial institutions. Using a qualitative research approach, purposive sampling was employed to select experts in Islamic finance, fintech, and housing. Data were collected through semi-structured interviews and analyzed using thematic analysis to identify key themes related to integrating Shariah-compliant financing with digital payment technologies. The findings reveal that combining Shariah-compliant financial instruments with advanced payment technologies can significantly reduce housing costs, improve access to financing, and enhance operational efficiency. By fostering collaboration among stakeholders, these solutions promote financial inclusion and sustainable housing development. The study offers valuable insights for researchers, policymakers, and practitioners seeking ethical and innovative approaches to Malaysia’s housing affordability challenges, highlighting the transformative potential of Shariah-compliant payment technologies.