Public Islamic Bank AITAB Hire Purchase-i
Islamic Car Financing in Labuan
Public Islamic Bank's vehicle financing with the contract in the product name: 'under the Shariah principle of Al Ijarah Thumma Al-Bai', offering an attractive margin of financing and competitive rates for commercial or consumer vehicles over up to 9 years, with payment via PBe, ATM and Public Bank/Public Islamic Bank branches. The page publishes the PDS (English and BM), a Personal Data Protection Notice, a margin of financing and maximum duration schedule, and a Code of Ethics on Repossession. The bank's announcements page notes the introduction of the Fixed Rate Reducing Balance Method under the Hire Purchase (Amendment) Act 2026, effective 1 June 2026 (crawled publicislamicbank.com.my 2026-08-06).
If you want to see the words Al Ijarah Thumma Al-Bai on the product itself rather than buried in a PDS, this is the cluster's benchmark. Public Islamic backs the naming with a published repossession ethics code and clear HPAA 2026 transition notices. Pricing is quote-based, so bring Bank Islam's printed grid to the negotiation, and note that new agreements from June 2026 use the fixed-rate reducing balance method industry-wide.
Pros
- Cleanest contract disclosure of any vehicle financing page in the cluster
- Repossession code of ethics is a rare published consumer safeguard
- Regulatory transition (HPAA 2026) communicated with dates
Cons
- No printed rate grid (Bank Islam prints 2.10% to 3.92%)
- Margin details live in a schedule document rather than page text
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Product Details
Structure
ijara
Vehicle Types
Consumer vehicles, Commercial vehicles
Terms
Up to 9 years
Public Islamic Bank in Labuan
Public Islamic Bank offers Islamic vehicle financing relevant to Labuan residents using a ijara structure. Unlike a conventional hire purchase, the bank owns, leases, or sells a real asset and earns rental or a disclosed profit rather than interest. Public Islamic Bank operates across Malaysia, so Labuan residents have full access to this product.
Our Take on Public Islamic Bank
Public Islamic Bank is the quiet value pick of the cluster: the best unconditional printed savings rate (ForU2Save 2.10%), the fastest route to a 2.00% term deposit (13 months), same-week rate sheets, and contract names baked into the product titles. Financing is the weak flank for a comparison shopper: pages are thin, with no printed product rates or margins, deferring everything to the PDS. Its personality mirrors its parent: conservative, precise, and understated to a fault.
How Public Islamic Bank Works
Open with modest minimums
CM Savings from RM250; Term Deposit-i from RM1,000 (2+ months) or RM5,000 (1 month); current accounts from RM3,000 with an introducer.
Pick the right variant
Ask for ForU2Save (2.10% first RM50,000) rather than the standard CM Savings; salary earners can use MySalary tiers to 1.00%.
Finance via PDS
Home, vehicle and personal financing pricing is disclosed in the PDS and at quotation; check the published financing rates page for the SBR (2.75%), BR (3.27%) and BFR (6.47%) benchmarks.
Financing Structure
Public Islamic runs Commodity Murabahah (Tawarruq) across deposits, with the mechanics governed by a published 5.00% Ceiling Profit Rate: the bank trades commodities at the ceiling-derived selling price and depositors earn the effective profit rate. Vehicle financing is AITAB (lease ending in sale), named in the product title. Financing contracts for home and personal products are documented in the per-product PDS.
In-Depth Analysis
Public Islamic Bank Berhad (company no. 197301001433) commenced operations on 1 November 2008 as Public Bank's wholly owned Islamic subsidiary, distributing through 260 Public Bank branches plus four full-fledged Islamic branches at Kg Baru, Putrajaya, Wakaf Siku and Jalan Kota (bank's own about page, crawled 2026-08-06).
Its deposit franchise is the cluster's best-kept secret. The ForU2Save variant prints 2.10% on the first RM50,000 with no salary-crediting or spending conditions, beating every standard adult savings rate in the market; the Term Deposit-i reaches 2.00% at 13 months where CIMB requires 36 for its 2.05%; and rate sheets carry effective dates as fresh as 5 August 2026, one day before our crawl. Behind it all sits a published 5.00% Ceiling Profit Rate that explains how the Tawarruq commodity trade prices, disclosure most banks skip entirely.
Financing is where the comparison shopper hits a wall: the Home Equity Financing-i page lists features (35-year tenures, redraw, green preferential rates, First Home Mortgage Guarantee Programme participation) but no rate, margin or contract name; AITAB Hire Purchase-i names its contract prominently but prices at quotation. The published Code of Ethics on Repossession and the HPAA 2026 transition notices show a bank that documents conduct even when it does not print prices.
Governance is strong on names: the Shariah Committee's full biographies are published, chaired by Dr. Shafaai bin Musa with members trained at Al-Azhar, IIUM, USIM, Exeter and INCEIF. The card shelf is small but distinctive, including a Gold MasterCard-i that automatically donates 0.1% of dining spend to Yayasan Waqaf monthly.
Shariah Compliance Details
- Shariah Committee with full published biographies, chaired by Dr. Shafaai bin Musa (publicislamicbank.com.my corporate governance page, crawled 2026-08-06)
- Full-fledged Islamic bank under IFSA 2013, wholly owned by Public Bank, operating since 1 November 2008 (crawled 2026-08-06)
- Ceiling Profit Rate (5.00%) published for Commodity Murabahah deposit pricing (crawled 2026-08-06)
- PIDM protection up to RM250,000 stated on individual deposit product pages (crawled 2026-08-06)
How Public Islamic Bank Compares
Against CIMB Islamic, PIB wins medium-term deposits (2.00% at 13 months vs 36) and freshness, loses cards and digital. Against RHB Islamic, PIB's unconditional 2.10% ForU2Save beats RHB's conditional 6.60% ceiling for most real savers, while RHB prints far more financing pricing. Against Maybank Islamic, PIB's rate sheets are current where Maybank's are stale, but Maybank's network and product breadth are in a different class.
Better cards, digital banking and payout flexibility on deposits; needs 36-month commitment to beat PIB's 13-month 2.00%.
Far richer printed financing pricing and a partnership mortgage option; savings yields need behavioural hoops PIB does not impose.
Matches PIB's 2.00% at 13 months with a lower RM500 entry, and adds page-level contract education; savings rates are weaker.
Bottom Line
The saver's bank of Malaysia's big six: 2.10% unconditional on the first RM50,000, 2.00% term deposits from 13 months, and Tawarruq mechanics disclosed down to the ceiling rate. Financing shoppers should extract the PDS numbers before committing, because the pages will not volunteer them.
Read full Public Islamic Bank reviewShariah Compliance & Oversight
Public Islamic Bank publishes full biographies of its Shariah Committee on its corporate governance page: Dr. Shafaai bin Musa (Chairman, appointed June 2022; Al-Azhar, IIUM and Glasgow Caledonian trained), Assoc. Prof. Dr. Syed Musa Syed Jaafar Alhabshi (November 2022), Assoc. Prof. Dr. Yasmin Hanani Mohd Safian (April 2024; Al-Azhar, Birmingham and Exeter trained), Assoc. Prof. Dr. Mohamad Zaharuddin Zakaria (USIM), and Hj. Abdul Rahman Mohd Yusoff (1 April 2025; INCEIF Teaching Fellow, former ISRA Consulting interim Deputy CEO) (publicislamicbank.com.my/personal-banking/about-us/corporate-governance/shariah-committee/, crawled 2026-08-06).
2026-08-06
Why It's Halal
The clearest AITAB labelling in the cluster: the contract (Al Ijarah Thumma Al-Bai, lease ending in sale) is named in the product title and description. The published Code of Ethics on Repossession addresses the consumer-protection dimension scholars emphasise in hire purchase. Oversight: Public Islamic Bank's named Shariah Committee chaired by Dr. Shafaai bin Musa. Caveat: no rate grid is printed on the page itself; the bank flagged the industry-wide switch to fixed-rate reducing balance from 1 June 2026 (crawled publicislamicbank.com.my 2026-08-06).
Regional Availability
Public Islamic Bank serves all of Malaysia
✓ Available nationwide including Labuan
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NationwideFrequently Asked Questions
What is Public Islamic Bank AITAB Hire Purchase-i?
Why is Public Islamic Bank AITAB Hire Purchase-i considered halal?
Is Public Islamic Bank AITAB Hire Purchase-i available in Labuan?
What Shariah oversight does Public Islamic Bank have?
What financing structure does Public Islamic Bank AITAB Hire Purchase-i use?
How do I apply for Public Islamic Bank AITAB Hire Purchase-i in Labuan?
Does Labuan's offshore financial centre affect my consumer banking?
How do Labuan residents access the full Islamic product shelf?
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Important: HalalWallet provides educational information and comparisons to help you explore halal financial options. We do not provide financial, legal, or religious advice. Product structures and Shariah compliance oversight vary by provider. Always verify halal compliance directly with providers and consult with qualified Islamic finance advisors or scholars for guidance on specific products and your individual circumstances.