AS THE world's best-known banking systems from Europe to the United States desperately try to drag themselves out of quicksand, it makes sense for business schools to expose students to alternative forms of financial practices.
A course in Islamic law, banking and commerce, which debuted at the Singapore Management University earlier this year, was heavily over-subscribed.
The course, spanning a period of 15 weeks and covering topics ranging from the syariah (Islamic law) to the development of Islamic finance products, also invited authorities on the subject from establishments such as the Islamic Bank of Asia and the Monetary Authority of Singapore to give their take.
These highly charged sessions involved extensive discussions and sometimes, even ferociously candid debates on touchy issues such as the practicality of imposing religious practices in today's profit-driven financial environment.
Some questioned why many Islamic banks offer products that are on the surface free of riba (interest), which is haram (forbidden) in Islam, yet charge an equivalent of it in the form of mark-ups and extra fees.
Islamic banking practices and standards among different regions also differ, and what is accepted as a syariah-compliant product in Singapore or Malaysia might not pass muster in stricter jurisdictions such as Saudi Arabia. There are also other aspects of Islamic finance - such as the avoidance of gharar (uncertainty) and maisir (speculation) - which prohibit Islamic banks from engaging in high-risk transactions or investments.
More than that, I was thoroughly impressed by the fundamental principles (though hardly ever practised) that govern Islamic banking. The idea of having the bank as an entity that serves to advance social welfare, and to promote development and entrepreneurship, is brilliant.
Philosophical discussions and banter aside, snagging a job in the growing Islamic banking sector was high on the minds of the students, and each session would inevitably end with sheepish questions about the availability of jobs or internships, or if non-Muslims were welcomed.
With the rapid expansion of the industry, there is a chronic shortage of personnel who are adept at both Islamic principles and financial know-how to bridge the gap between the Islamic scholars and conventionally trained bankers.
A classmate even suggested that there should be a separate track in our university for Islamic banking and finance to allow for more specialised study in this area. The need to understand this topic has become more relevant than ever in today's economic climate, and I am sure this knowledge will serve me well.
Yet the most important elements I got out of this has to do with the simple principles, such as how money was once meant as just a means of exchange, and not something you amass and worship.
And this would serve as a timely reminder for me, as I leave school and enter the fascinating world of unemployment.
The writer, 24, is a final-year business management student at Singapore Management University. (Islamic law, banking and commerce is taught by Associate Professor Andrew White, a trained lawyer who specialises in Islamic law and arbitration.)
