International Journal of Islamic Business
IJIB, International Journal of Islamic Business, is a double-blind peer reviewed, international academic journal published biannually (March and September, formerly published in June and December) by Islamic Business School, Universiti Utara Malaysia. A manuscript submitted to the Editorial Board for consideration must be an original unpublished work, not under consideration for publication elsewhere. IJIB accepts articles, research notes, case studies, and book reviews based on research, original thoughts and commentaries in Islamic Business, Muamalat, Islamic Finance and its related fields. Articles are published in Bahasa Melayu, English and Arabic.
Islamic Business School, Universiti Utara Malaysia
ISLAMIC DIGITAL INHERITANCE IN MALAYSIA: THE ROLE OF POLICYMAKERS
The adoption of e-wallet in Malaysia are proliferating with 90 percent of the Malaysia actively use e-wallet, has introduced significant challenges in its inheritance. Despites the widespread adoption of e-wallet, existing e-wallet service providers policies do not address the transfer of digital assets upon the account holder's death. This will add the existing gap on billions of ringgits in unclaimed money and raises concerns about compliance with both Islamic inheritance laws and financial regulations. This study aims to examine the role of policymakers in addressing these challenges and ensuring the inheritance of e-wallet could occur. Hence, to achieve this objective, qualitative research approach including library-based research and semi-structured interviews with key stakeholders such as lawyer, estate planner and e-wallet service providers have been conducted. The findings revealed the critical role of Bank Negara Malaysia in establishing structured and legal procedural frameworks for e-wallet inheritance. Key informants emphasize the need for mandated policies, standardized procedures and enhance regulatory oversight to facilitate the proper transfer of e-wallet to the heirs. With unclaimed money reaching RM12 billion in 2024, this study highlights the urgent need for regulatory intervention and proposes a policy framework that integrates shariah principles with digital finance governance. This will endure the legal clarity, financial sustainability, and the protections of Muslims heirs’ rights in Malaysia’s evolving digital economy.
Copyright (c) 2025 International Journal of Islamic Business http://creativecommons.org/licenses/by/4.0
THE INFLUENCE OF DIGITAL MARKETING ON ISLAMIC FASHION CONSUMPTION: INVESTIGATING MILLENNIALS’ PURCHASE INTENTION IN DIGITAL INFLUENCERS
This study investigates how millennials’ fashion purchase behaviors are influenced by digital influencers, focusing on key factors such as perceived credibility, expertise, congruence, attractiveness, and para-social interaction. While influencer marketing is a major component of digital marketing, there remains a lack of tailored strategies targeting millennials, the primary demographic for social media engagement. A quantitative research approach was employed, utilizing an online survey distributed to 307 millennial social media users to analyze the extent to which digital influencers impact their purchasing decisions. Findings reveal that perceived credibility, congruence, attractiveness, and para-social interaction significantly influence millennials’ purchase intentions, whereas perceived expertise does not exhibit a significant effect. However, the study is limited to a millennial sample, and the findings may not be generalizable to other demographic segments. Future research should explore how these influencer-related factors impact different consumer groups to develop a comprehensive understanding of digital marketing effectiveness. The study provides valuable insights for fashion brands seeking to optimize their digital engagement strategies, emphasizing the importance of credibility, authenticity, and interaction-driven influencer marketing to strengthen brand-consumer relationships. By deepening the understanding of influencer marketing strategies in the fashion industry, this research offers practical recommendations for brands aiming to enhance their influence on millennial purchasing behavior in the digital age.
FINTECH REGULATION AND GOVERNANCE FROM THE SINGAPORE PERSPECTIVE
Through the adoption of a balanced regulatory approach that promotes technological advancement while mitigating risks, Singapore has become a global leader in fintech innovation. The Monetary Authority of Singapore (MAS) plays a crucial role in forming the ecosystem as this paper examines Singapore's fintech regulatory framework, governance mechanisms, and risk management tactics. Singapore has shown its dedication to innovation and financial stability through important initiatives like the Payment Services Act, Fintech Regulatory Sandbox, and cross-border payment links. Along with discussing new developments in green fintech and central bank digital currencies (CBDCs), the paper also discusses issues like consumer protection, cybersecurity, and decentralized technologies. Singapore offers a model for promoting inclusive and sustainable growth in the fintech industry through global cooperation and flexible policymaking.
INNOVATIVE SHARIAH-COMPLIANT FINANCING SOLUTIONS FOR AFFORDABLE HOUSING: INTEGRATING PAYMENT TECHNOLOGIES
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.
THE ROLE OF ISLAMIC FINANCIAL LITERACY FROM THE PERSPECTIVE OF MAQASID AL-SHARIAH: A CASE STUDY OF COMMUNITY OF NAKA IN KEDAH
The research highlights a limited understanding of Maqasid al-Shariah and financial management principles among the rural community, coupled with inadequate digital and financial literacy. Economic hardships, lack of access to modern financial tools, and insufficient emphasis on long-term planning hinder their ability to achieve financial stability and align their practices with Islamic financial goals. Islamic financial literacy, when viewed through the lens of Maqasid al-Shariah, offers a holistic and ethical approach to financial management that aligns with the core objectives of Islamic law. Maqasid al-Shariah, aim to promote the welfare of individuals and society by preserving religion, life, intellect, progeny, and wealth. This study examines how these objectives shape financial literacy within an Islamic framework, emphasizing principles such as the prohibition of Riba (interest), the importance of Zakat (charitable giving), ethical investment, and the avoidance of extravagance and waste. The research employs a qualitative approach, utilizing secondary data collection through desktop research to analyze existing literature on Islamic financial literacy from the perspective of Maqasid al-Shariah. Additionally, it incorporates findings from a case study conducted in Naka, Kedah, focusing on the financial literacy and Islamic financial practices of villagers, supported by a pilot test with 27 participants who responded to workshop-survey sessions. By promoting a balanced and just approach to wealth management, Islamic financial literacy guided by Maqasid al-Shariah aims to advance financial stability, social equity, and overall well-being, thereby contributing to the holistic development of both individuals and communities. This research contributes by integrating Islamic financial literacy with Maqasid al-Shariah, offering a holistic framework for ethical financial management that promotes social welfare, enhances financial stability, and provides practical insights for empowering underserved communities through targeted education and tools aligned with Islamic principles.
EXAMINING THE PERCEPTION OF MUSLIMS ON THE ROLE OF WAQF TOWARDS POVERTY REDUCTION: A CASE STUDY OF RIJIYAR ZAKI, KANO, NIGERIA
One of the Islamic strategies of poverty reduction is waqf. This strategy had played a significant role in financing socio-religious and public welfare systems during the early days of Islam and is still relevant today. Many Muslim communities such as Malaysia are utilizing waqf for poverty reduction and enhancing the living condition of its citizens, but that is not the case in Nigeria. The objective of the paper is therefore to find out the reasons why waqf is not being fully utilized for poverty reduction by the Muslims in Nigeria, with particular reference to Muslims in Rijiyar Zaki, Kano- Nigeria. This was done by examining the perception of Muslims in Rijiyar Zaki, Kano- Nigeriaon waqf, its role in poverty reduction, and the reasons for its under-utilization. In carrying out the study, quantitative research method was used, and questionnaire was adopted as the instrument for collecting data. Data collected was then analyzed using descriptive analysis through the use of simple frequency counts and percentages. One of the major findings of the research was Muslims in this area have insufficient knowledge and lack of awareness regarding waqf. Providing proper education and sensitization on waqf may likely increase utilization of waqf for poverty reduction in the area of the study.
HALAL CERTIFICATION: LEGAL AND ETHICAL CONSIDERATION IN ISLAMIC JURISPRUDENCE
The article examines the moral and legal issues related to halal certification within the context of Islamic jurisprudence. This study also aims to examine the halal certification process' guiding principles and how they affect Shariah law compliance. The research employs a qualitative technique to investigate fundamental Islamic scriptures and modern fatwas to define the standards for halal certification and the moral obligations of certifying agencies. The findings show that halal certification reflects wider ethical convictions in Islamic finance and consumer practices, serving as more than just a regulatory instrument. The study identifies key elements affecting halal certification, such as the need for transparency, observance of Islamic dietary regulations, and the function of Shariah supervisory bodies in guaranteeing conformity. It also draws attention to the difficulties certifying bodies confront in upholding integrity and public trust in the face of expanding market demand. The article concludes by stating that halal certification greatly aids in adhering to Islamic beliefs and fostering ethical consumption. To guarantee that halal certification procedures correspond with the developing interpretations of Islamic jurisprudence, it advocates for increased cooperation between Islamic scholars and certifying bodies. This will promote ethical business practices and increase customer confidence in the halal market.
AN EMPIRICAL STUDY ON THE RELATIONSHIP BETWEEN CAREER ADMINISTRATION AND CAREER SUCCESS: AN ISLAMIC PERSPECTIVE
Career administration is essential for achieving career goals, relying on efficient management, particularly through job autonomy and transformational leadership. Research indicates that promoting job autonomy and implementing transformational leadership positively impacts employees’ career success, including promotions and satisfaction. However, practical issues such as inconsistent management practices and lack of support for job autonomy have hindered career success in many organizations. This study addresses these industry challenges by examining how job autonomy and transformational leadership influence career success within Malaysian government agencies from an Islamic perspective. By recognizing the difficulties employees face in maintaining efficiency and job performance, this research aims to understand how organizations can utilize career administration strategies to overcome these obstacles and enhance employee career success. A survey of 215 employees revealed two significant findings: firstly, career administration is positively and substantially correlated with promotions, and secondly, career administration positively linked to career satisfaction within the organization. These results highlighted the importance of career administration as a factor affecting career success. The study contributes to our understanding of how organizations can foster a positive work environment able to lead to a better organizational outcome.
WHAT MOTIVATES PEOPLE TO PAY ZAKAT, INFAQ, SADAQAH AND WAQF (ZISWAF) THROUGH ONLINE CROWDFUNDING PLATFORMS?
Online crowdfunding platforms are web-based platforms designed for fundraising through a collaborative concept. These platforms are claimed to enhance interest in Zakat, Infaq, Sadaqah and Waqf (ZISWAF) contributions due to the convenience they offer. To evaluate this claim, this study aims to examine the influence of literacy, transparency, accountability, religiosity, and trust on the interest in fulfilling ZISWAF obligations through crowdfunding platforms in Indonesia. Employing a quantitative approach, the research involved 182 respondents from the academic community who completed an online questionnaire distributed to 15 universities with ZISWAF institutions on their campuses. The data were analysed using multiple linear regression method. The findings reveal that accountability variable does not significantly influence interest in fulfilling ZISWAF through online crowdfunding platforms in Indonesia. However, literacy, transparency, religiosity, and trust positively and significantly impact this interest. These results provide important insights into the determinants of individual interest in performing ZISWAF. Specifically, online crowdfunding platforms must ensure institutional accountability in ZISWAF fundraising activities. Additionally, platforms should increase transparency by publishing financial and other critical reports to maintain public trust. Therefore, this study contributes to the development of more effective strategies for optimizing online ZISWAF fundraising.
FACTORS CONTRIBUTING TO THE ACCEPTANCE OF VERIFY HALAL APP AMONG THE MALAYSIAN MUSLIM CONSUMERS
The presence of a halal mark on a food product serves as an indicator that the food has been certified as halal and is deemed suitable for consumption according to Islamic dietary guidelines and safety standards. However, the increased demand for halal food in the market has led many business owners to exploit this trend by intentionally misleading consumers with false claims of halal certification. To address these issues, the Verify Halal app platform was developed. However, there is a lack of research on the factors contributing to its acceptance. As such, this study explores the factors contributing to the acceptance of Verify Halal app among the Malaysian Muslim consumers. To achieve this objective, survey questionnaires were distributed online and face-to-face to collect data from 250 Muslim respondents in the Klang Valley area of Malaysia. The data collected were analyzed using SPSS. The results indicate that religiosity, perceived ease of use, perceived usefulness, and social influence contribute positively and significantly to the acceptance of the Verify Halal app. However, trust contributes negatively and insignificantly to its acceptance among Malaysian Muslim consumers. The findings of this study have serious implications for several entities, including halal business owners, halal consumers, halal app developers, and government entities. Specifically, halal business owners should ensure that information about their products listed on the app is accurate, current, and in compliance with halal standards. The findings call on halal consumers to frequently use the app to search for and purchase halal-certified products, which could contribute to the development of an effective community for other users. Halal app developers should prioritize user-centric design principles, which will not only increase initial engagement but also generate positive reviews and referrals, thereby contributing to the Verify Halal app’s market reputation. Finally, various forms of government incentives, such as grants and collaborations, can be provided to facilitate the advancement of the Verify Halal app.
Copyright (c) 2024 International Journal of Islamic Business http://creativecommons.org/licenses/by/4.0
FACTORS INFLUENCING STUDENTS BEING DECEIVED IN PYRAMID SCHEME IN MALAYSIA
Since the middle of the 20th century, multi-level marketing (MLM) became a way of doing business. Unfortunately, not every MLM opportunity is a legitimate business opportunity. Many pyramid schemes, frauds plotted to part the unwary from their money, are disguised. The syndicate activities behind the MLM had targeted university students to make a profit through participation in their business. Therefore, this study intended to measure the factor that might affect the involvement of students being duped in pyramid schemes, including the ambitious, desire to try, surrounding society, family background, and deceived by advertising. This study examines the relationships between the ambitious with being duped in pyramid schemes. This study employed a quantitative method where a questionnaire is used as a method in the collection of the data. The hypothesized relationships are tested using survey responses from 119 university students in Malaysia. The finding of the study revealed that two determinants had a positive relationship being deceived in pyramid schemes among the students: family background and surrounding society. This study’s findings are able for universities and industries can revise their policies to discern the extent of student involvement in the pyramid scheme businesses and take the initiative to help students who fall into this scheme.
MASLAHAH AND ITS APPLICATION IN ISLAMIC FINANCE
In light of the complexity of contemporary Islamic banking and finance difficulties and the fact that certain answers cannot be found in traditional legal texts, maslahah or the public interest has emerged as a secondary source of Shariah to address these difficulties and issues. Maslahah which embodies the notion of achieving the public interest and preventing harm, has been crucial to the development and evolution of products and services in Islamic finance. The purpose of this study is to analyze the concept of maslahah as the secondary source of Shariah whereby the definition, classification, validity of maslahah and the conditions of validity are discussed. The study also highlighted its applications in Islamic finance products and services besides conducting library research analysis on literature from both classical and contemporary maslahah literature as well as the current application of maslahah in Islamic finance products and services. The study explained maslahah mu’tabarah, maslahah mulgha, and maslahah mursalah as the three classifications of maslahah which are considered valid when they are genuine (haqiqiyyah), general (kulliyah) and not in conflict with clear Quranic verse according to the Muslim jurists. The study also found that the concept of maslahah is applied in the establishment of Islamic banking and finance institutions as well as the Islamic capital market whereby policies were developed by the government for the Islamic banking institutions to ensure the products are Shariah-compliant. Additional collateral is required, based on the principles of usul fiqh, for the renewal of mudarabah transactions. On the other hand, ta’widh and gharamah are introduced by Islamic banks to safeguard the interests of both banks and the customers. Finally, zakat financing can help entrepreneurs repay their existing financial obligations.
THE CONCEPT OF FATWA DSN-MUI ON WAQF INSURANCE BENEFITS AND INVESTMENT BENEFITS IN SHARIA LIFE INSURANCE: HISTORICAL STUDY
In general, Indonesian people still do not understand waqf management in Islam correctly and thoroughly. If Muslims examine the benefits of waqf more deeply, it can be ascertained that the benefits can be reaped in this world and the hereafter. The discourse of productive waqf and cash waqf is echoed in Indonesia by several Indonesian figures, thinkers, and scholars so if the main obstacles to waqf are not addressed, it will have an impact on misuse and fraud in waqf. The Indonesian Waqf Board (BWI) should cooperate with the DSN-MUI to issue this waqf fatwa. This article aims to review and analyze the benefits of waqf insurance and investment benefits in Sharia life insurance based on DSN-MUI Fatwa No. 106 of 2016. This research uses a qualitative method with a literature study approach. The results of this study indicate that the principle of this fatwa uses the legal basis of the Qur'an and Hadith by using the istislahi pattern, which is the consideration of benefits based on general nash. In this pattern, general verses are collected to give birth to several general rules that are used to protect or bring certain benefits. They are based on Maqashid Sharia, so that they can help optimize the waqf program in Indonesia. The issuance of the fatwa on waqf insurance benefits and investment benefits in Sharia life insurance is due to a request from an Islamic financial institution, namely Sun Life Financial Syariah and Al-Azhar Waqf Institution, which applied for the determination of the Sharia aspects of life insurance investment benefits for waqf products and waqf insurance policies. For this reason, this DSN-MUI fatwa can be said to be in accordance with the general principle that fatwas are responsive, proactive and anticipatory.
TAKAFUL BUSINESS MODEL AND BUSINESS PERFORMANCE: A COMPARATIVE EVIDENCE FROM THE GLOBAL TAKAFUL INDUSTRY
As a means for takaful operators to survive and sustain their business within the industry, they must appropriately choose takaful business models for their products. Different types of takaful business models will determine the different types of income for the business. Thus, this study aims to identify the most competitive takaful business model that relies on the takaful operators’ business performance. This study employed qualitative and quantitative methods on eight selected global takaful operators. The qualitative method is employed through content analysis to identify the application of the Shariah contract and the respective standards. Meanwhile, the quantitative method analyzes each takaful operator’s business performance (profit-after-tax and the return on assets). The finding indicates that three out of eight operators adopted the wakalah-mudarabah model, two operators with the wakalah model, two with the wakalah-waqf model, and one with the wakalah-qard model. The finding also highlights that Syarikat Takaful Malaysia Keluarga Bhd recorded the highest profit-after-tax average and the average of return on assets using a wakalah-qard model. This study betrays an exigent insight into the effect of takaful business model selection on business performance. As a practical implication to the takaful operators, they need to restrategize their business model to boost revenue through an appropriate model. This study also provides a breakthrough to the body of knowledge. This paper bids its originality by narrowing down the segment of the takaful industry and focusing only on the family takaful segment.
EXPLORING THE BANKERS’ PERSPECTIVES ON SHARIAH AND OPERATIONAL ISSUES OF RESTRUCTURING AND RESCHEDULING IN ISLAMIC FINANCING DURING COVID-19 PANDEMIC
The Central Bank of Malaysia ordered all banks to give an automatic six months moratorium or loan or financing deferment starting April, 1 2020 to their customers during the Covid-19 pandemic since many customers had difficulties paying their monthly financing obligations to banks. Thus, the objective of this paper is to explore the bankers’ perspectives on Shariah and operational issues arising in Islamic banks in implementing moratorium which involves restructuring and rescheduling financing facilities during Covid-19 pandemic. At the same time, the methods these bankers used to manage the issues are also highlighted in this paper. A qualitative analysis is applied in this paper where the researchers conducted interview sessions with the Head of Shariah Department from an Islamic banking window and another from the Development Financial Institution which offers Islamic banking products and services. This study's findings show that there are certain perspectives from bankers in dealing with Shariah issues regarding restructuring and rescheduling during moratorium such as the issue of qalb al-dayn (debt restructuring), capitalization of accrued profit in the financing facilities as well as the operational issues related to the system and people. It can be deduced then that all Islamic banks were doing extremely well in their steadfast endeavors towards offering remedies to the issues faced for the sake of the overall improvement of Islamic banks in the implementation of restructuring and rescheduling of financing facilities as outlined by guidelines or Resolutions issued by the Shariah Advisory Council of Bank Negara Malaysia.
CORPORATE SOCIAL RESPONSIBILITY IN THE HALAL FOOD INDUSTRY: APPLICATION OF SUPPLY CHAIN PERSPECTIVE
This study aims to construct a comprehensive framework for Corporate Social Responsibility (CSR) within the Halal food industry's supply chain. It acknowledges the increasing public attention towards corporate social responsibility (CSR) and supply chain practices in the food industry. It utilizes current literature and recent developments to provide a comprehensive understanding of CSR in the Halal context. Methodologically, this study conducts a systematic review of relevant articles and materials, forming a robust theoretical underpinning. Our findings reveal key CSR dimensions specific to the Halal food supply chain, including animal welfare, health and safety, environmental concerns, and community involvement. The proposed framework not only enhances understanding of Halal supply chain CSR practices but also sets the stage for strategic and operational improvements. Significantly, this study contributes to the scholarly conversation by integrating Islamic principles with contemporary CSR practices, offering a unique perspective that aligns business operations with ethical and religious standards.
CABARAN SEMASA USAHAWAN DALAM PERMOHONAN PENSIJILAN HALAL MALAYSIA DI NEGERI PERLIS
Kerajaan berhasrat untuk menjadikan Malaysia sebagai hab halal antarabangsa. Oleh itu, pelbagai penetapan piawaian, prosedur dan inisiatif telah diperkenalkan bagi membantu pihak industri mematuhi garis panduan halal secara menyeluruh. Objektif kajian ini dilakukan adalah untuk merungkai permasalahan yang dihadapi oleh para usahawan di negeri Perlis dalam permohonan pensijilan halal Malaysia. Kajian ini dijalankan adalah berdasarkan kaedah analisa kandungan melalui data hasil dapatan temubual bersama pegawai di Bahagian Penyelidikan dan Hub Halal, Jabatan Hal Ehwal Agama Islam Perlis, JAIPs sebagai badan berautoriti utama dalam pengurusan halal negeri Perlis. Kajian ini menyimpulkan bahawa pelbagai inisiatif yang telah diambil oleh pihak berautoriti untuk menjaga kredibiliti pensijilan halal Malaysia tetapi, usaha pengawalan perlu dilaksanakan diperingkat dalaman syarikat pemegang pensijilan halal Malaysia. Justeru itu, segala isu cabaran yang diketengahkan dalam kajian ini dapat memberi panduan kepada para usahawan untuk menghadapi cabaran semasa memohon dan memelihara pensijilan halal Malaysia.
EFFECTIVENESS OF E-LEARNING FROM ISLAMIC PERSPECTIVES ON THE COVID-19 PANDEMIC: THE CASE STUDY AMONG UNDERGRADUATE IN MALAYSIA
This research paper aims to study the effectiveness and to explore Islamic perspectives of e-Learning during the Covid-19 pandemic. It focuses on the undergraduate business students, who have used online learning as a part of their learning method. This study uses 118 undergraduate business students from different higher-learning institutions in Malaysia. Later, the analysis is conducted using descriptive and cross-tabulation analysis. The findings show that during the emergency e-Learning, many of the students indicated the ineffectiveness of e-Learning due to the factors of unable or slow internet access or connectivity, working in a limited space and constraints of adapting new environment of online learning. Apparently, findings are also showing that instructors have played a big role in ensuring the effectiveness of e-Learning during the Covid-19 pandemic with various online assessment methods. This study provides a finding on the effectiveness of e-Learning during the Covid-19 pandemic among business students in Malaysia. It offers some new insights related to the effectiveness of e-Learning and helps the relevant policymakers to offer an appropriate intervention strategy in optimizing e-Learning in the future.
THE ROLE OF HALAL-FRIENDLY HOSPITALITY SERVICES IN INCREASING VISIT INTENTION: A MUSLIM TOURIST PERSPECTIVE
Halal friendly hospitality, rooted in the Quran and Hadith, signifies the practice of providing guests with Halal-compliant food, beverages, and accommodations. This study investigates the pivotal role of Halal friendly hospitality services in enhancing visit intention among Malaysian Muslim tourists. It delves into the influence of push and pull factors on this intent. The study employed a proposed model, utilizing survey data collected from 300 local Muslim tourists in Malaysia. The results unequivocally reveal a positive and significant correlation between push and pull factors and Halal friendly hospitality services with overall satisfaction. Furthermore, it highlights a substantial connection between overall satisfaction and the intention to revisit. Significantly, the study contributes to the understanding of how overall satisfaction acts as a mediator between Halal friendly hospitality, push and pull factors, and revisit intention, shedding light on the practical implications for the hospitality industry. This study's findings offer valuable insights for the hospitality industry, emphasizing the significance of Halal friendly hospitality services in attracting and retaining Malaysian Muslim tourists. Understanding the mediating role of overall satisfaction can assist hospitality providers in tailoring their services to enhance the revisit intention of this demographic, ultimately contributing to sustainable growth in the sector.
A REVIEW OF A FINTECH FINANCING PLATFORM: POTENTIAL AND CHALLENGES OF ISLAMIC CROWDFUNDING TO ENTREPRENEURS
The emergence of financial technology, known as fintech, has altered the landscape of traditional financial institutions. Broadly defined, fintech is the application of technology in finance. Conventional and Islamic crowdfunding platforms are fintech innovations that offer a great alternative to traditional financial lenders like banks. This paper aims to provide insights regarding crowdfunding as an alternative fundraising source for entrepreneurs, especially start-ups, who usually face financial challenges. This paper uses a desk research methodology to review the extant literature on crowdfunding as an entrepreneur's funding source. Findings show that crowdfunding adoption is rapidly increasing and is embraced by many underserved entrepreneurs. As a promising alternative, it offers excellent potential by providing services at a lower transaction cost and greater efficiency. It also covers a broader market penetration. Islamic crowdfunding benefits even more, as the nature of Islamic financing helps to curb excessive credit expansion, thus helping to stabilise the economy. The application and importance of Islamic crowdfunding are in line with the three classes of Maqasid-Shariah, which are darūrāt (necessities), ḥājīyāt (needs), and taḥsīnīyāt (luxuries). Nevertheless, crowdfunding is not without problems and challenges. Major problems usually arise from regulatory and fraud issues, such as stolen ideas and lack of proper regulations. This paper may help create awareness about crowdfunding, its potential, and its challenges to entrepreneurs. The findings may also serve as reference points for future researchers to examine further the issues and challenges in the crowdfunding industry, especially Islamic crowdfunding, in promoting competency and sustainability for entrepreneurs' interests.
Copyright (c) 2023 International Journal of Islamic Business http://creativecommons.org/licenses/by/4.0
QARD ALHASSAN INSTITUTION AS A SUSTAINABLE ETHICAL FINANCING SOLUTION FOR MIDDLE­CLASS INDIVIDUALS IN MUSLIM­MAJORITY COUNTRIES
The purpose of this study is to propose a Qard Alhassan institution based on a Quranic concept regarding financing and borrowing. It is whereby a certain group of society is assisted, specifically middle-class individuals, that helps them get the finance they need and to return what they borrowed without any interest, while preserving the capital of the lenders who will receive the Hereafter reward, but the institution goal is not striving for profits though it may impose minimal fees for its services. The study used a qualitative approach. A holistic review of the Quranic verses, that mention several financial issues such as Riba, Qard alhassan, the study concludes that there is an urgent need to integrate the elements of Iman (believe in Allah) and Akhlaq (Islamic ethics) into the Islamic finance equation. In order to find out the obstacles that may face Qard Alhassan institution, the study presented and analyzed the case of the Malaysian Hajj Corporation project (known as Lembaga Tabung Haji), as there are elements of similarity with the proposed institution. In addition, over 100 personal interviews conducted, in two stages, with Malaysian and Arab experts in the academic and professional aspects in the Islamic financial and banking sector. The interviews conducted in span of 5 years (from 2018 to the end of 2022). The study has proposed a new Islamic financing project that represents the idea of Qard Alhassan institution, provided that several elements to be implemented as mentioned in the study’s recommendations.
ANALYSING THE LOOPHOLES ON ESTATE ADMINISTRATION OF CRYPTOCURRENCY IN MALAYSIA
The recognition of cryptocurrency as digital assets in Malaysia under the purview of security governed by the Securities Commission of Malaysia contributed to cryptocurrency's positive acceptance, with evidence that the number of cryptocurrency users is growing. Nonetheless, due to the unique characteristics of cryptocurrency, the lack of legal regulation on cryptocurrency inheritance will have an impact on crypto estate administration. Apparently, the law on cryptocurrency in Malaysia is still in its infancy, and the existing issue of frozen estate in Malaysia, which is constantly increasing, prompted the researchers to investigate potential loopholes in cryptocurrency estate administration from a legal and shariah standpoint. The study conducts content analysis by examining the relevant statutories, such as “the Probate and Administration Act 1959, the Capital Market Service Act 1997, the Capital Market and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019, Shariah Resolutions and Fatwas in Malaysia”, other literatures related to cryptocurrency estate administration. As a result, there are legal loopholes in cryptocurrency estate administration in Malaysia that prevent cryptocurrency from being inherited by the entitled beneficiary. The issue of cryptocurrency inheritance may arise in the near future; thus, this study provides policy implications to the Malaysian regulators to solve the highlighted lacuna as well as social implications to the Malaysian society to consider cryptocurrency in their inheritance planning.
CAN MUSLIM INHERIT BITCOIN? DISCOVERING THE CONTINUITY OF DIGITAL ASSET IN PERLIS
Day by day the numbers of Bitcoins owners are increasing and as the time lapses, they also will face the death. In Perlis, Bitcoins is recognised as a wealth (mal) and subject to zakat by State Fatwa Committee of Perlis. Hence, this paper aims to discover the inheritability of bitcoin according to Shariah in Perlis. As a result, this study employed a qualitative research approach by interview in order to discover the inheritability of bitcoin as a mal according to Shariah. Purposive sampling was used in the study. The finding of this study indicated that the existing fatwa on bitcoin is silent on the inheritance ruling of bitcoin. The researcher urged that this inheritance ruling must be tabled and gazetted by the state fatwa committee of Perlis in order to ensure the continuity of bitcoin to the next generation. Therefore, this study has contributed in comprehensive Shariah views behind the permissibility of Bitcoin in Perlis and provides some important policy implication for the regulator and state fatwa committee of Perlis to fulfil the lacuna in the fatwa related to bitcoin.
ISLAMIC COOPERATIVES: OPERATIONS AND EVIDENCE FROM ORGANIZATION OF ISLAMIC COOPERATION (OIC) COUNTRIES
The Islamic finance industry has only been dominated with Islamic banking, Takaful, Islamic capital, and the money market, although, the Islamic cooperative (I-Coop), which is a non-financial institution in most cases is yet to be fully adopted in the contemporary Muslim societies. The Islamic cooperative can be a development reform tool or a social and economic growth method, it can be used to offer interest-free loans and to cover specific demands in rural and urban settings. The main purpose of this study is to investigate Islamic cooperative operations in some OIC countries. This study adopted the content analysis method by reviewing literature as the evidence to demonstrate and provide insights into various critical factors that have prompted the establishment of Islamic cooperatives in some OIC countries. Samples of literature for OIC countries were found and examined. Three I-Coop member countries were given focus to (Malaysia, Indonesia, and Nigeria). The findings show that Islamic cooperatives only exist in few OIC countries. It was found that the OIC countries have emphasised more on operating Islamic banking rather than Islamic cooperatives. It was also noticed that the lack of the well-regulated Islamic cooperatives in these countries is due to lack of the government support to established it. However, in Nigeria, the Islamic cooperative is considered new, but the study found various types of Islamic cooperatives already operating there. Lastly, based on the experiences of the Islamic cooperatives in the selected countries, the study suggested creating more awareness, promotions, and guidelines most especially within the OIC countries.
DEVELOPMENT RESIDENTIAL PROPERTY FOR B40
Economic conditions in the aftermath of the Covid-19 pandemic create an uncertain environment for all levels of the community, resulting in anxiety for everyone. The majority of the B40 group has difficulty obtaining credit from banks due to a lack of credit history and collateral. The B40 group is among the affected in obtaining financing from any financial institution. It makes it more difficult for them to buy a house and obtain financial assistance from financial institutions. As a result, they are unable to own their house and resulting to rent a house for their whole lifetime. It is worsened for this vulnerable group to pay the monthly house rental due to unstable income. Eventually, the house rentals arrears accumulate over several months, which could cause them to be evicted from the rented house. Therefore, the study aims to discuss the issues and challenges for the B40 group in Malaysia to own a home and explore a feasible solution for affordable housing on waqf land, while also proposing a framework for the development of residential property on waqf land in Malaysia by a collaboration between related stakeholders. This study incorporated primary data by conducting an in-depth analysis of the interview sessions from the targeted respondents. A series of interview questions are posed about the issues and challenges of B40 in owning a house, and the proposed framework to elicit feedback from industry practitioners regarding its viability and perspectives. The study discovers that the Islamic bank could play a significant role by acting as a collection agent from the public as a source of funding and channeling the fund to the waqf organizations or directly to this project. The study also proposes solar energy utilization within the framework which may help to mitigate greenhouse gas emissions while also addressing the United Nations' sustainable development agenda. This research offers the originality of the finding for the proposed collaboration framework between the Islamic banks, waqf, and zakat institutions in developing the residential property for the B40 group. This research contributes to improving the B40 group’s standard of living by providing a more comfortable house to live in for a long-term period, while also sparking an idea for other researchers to further improve the framework for other environmental aspects.
INFLUENCE OF TA’AWUN (MUTUAL COOPERATION) IN SUSTAINING INNOVATION ALLIANCES
Companies use cooperative strategies in sustaining performance and competitive advantage. The driver behind the cooperative strategies is mutual cooperation. There is an integration in the inter-companies’ alliances at horizontal level. The inter-companies’ alliances provide platforms and coworking spaces for value creation and innovation. This purpose of the study is to explore the influence of ta’awun (mutual cooperation) in sustaining innovation alliances. The study used personal interview with key managers with manual data collection and data analysis. The key results suggested that the influence of ta’awun is the spirituality and social driven on the contractual arrangements in the alliances. The main theoretical contribution is the alliances with spiritual cooperation through unified socialization.
PELAKSANAAN INOVASI DALAM PROGRAM HOMESTAY: KE ARAH DESTINASI MESRA MUSLIM
Destinasi pelancongan mesra Muslim bukan sahaja menjadi lokasi tarikan bagi pelancong beragama Islam, malah turut popular dalam kalangan pelancongan lain yang berminat untuk menerokai keunikan Islam. Keterujaan pelancong memilih destinasi sebegini membuka peluang kepada pengusaha pelancongan di Malaysia melaksanakan inovasi terhadap produk dan perkhidmatan yang ditawarkan temasuk program homestay yang terkenal dengan pelancongan budaya. Inisiatif menuju ke arah Homestay Mesra Muslim dilihat berpotensi menyumbang kepada penjanaan pendapatan industri pelancongan di Malaysia. Namun, persekitaran yang mencabar menyebabkan pengusaha perlu lebih berinovasi agar kekal berdaya saing di peringkat global. Menariknya, analisis tinjauan literatur turut mendedahkan bahawa inovasi adalah penting dalam pembangunan program homestay. Oleh itu, kajian ini bertujuan untuk menerokai pelaksanaan inovasi dalam program homestay yang secara langsung menyumbang kepada konsep homestay mesra Muslim. Temu bual mendalam telah dijalankan dengan penyelaras bagi lapan buah program homestay di Semenanjung Malaysia bagi mendalami aspek inovasi. Hasil kajian mendedahkan bahawa inovasi yang dilaksanakan merangkumi empat elemen iaitu privasi dan keselamatan, kemudahan dan persekitaran, serta kebersihan dan keselesaan. Penemuan ini amat bermanfaat kepada pemain industri sebagai penanda aras dalam merancang strategi pembangunan program homestay. Selain itu, konsep homestay mesra Muslim ini sedikit sebanyak dapat menyumbang kepada pertumbuhan pelancongan budaya di Malaysia. Ini dapat disimpulkan bahawa pelaksanaan inovasi adalah penting dan bermanfaat bukan sahaja terhadap pengusaha homestay malah kepada pelancong daripada Malaysia dan seluruh dunia.
THE EFFECT OF RELIGIOSITY, MUSLIM CUSTOMER PERCEIVED VALUE ON LOYALTY AND CUSTOMER SATISFACTION IN HALAL TOURISM IN INDONESIA
The increase in the cumulative growth of international visitors to Indonesia between 2014 and 2018 compared to the preceding five-year period indicated that the tourism industry in Indonesia had promising growth potential. However, due to disruption in 2020 and 2021 during Pandemic period, the pre-pandemic projection of 230 million arrivals by 2026 will now be reached in 2028. This study aimed to examine the impact of the Muslim Customer Perceived Value (MCPV) on customer loyalty through customer satisfaction as an intervening variable among Muslims. In addition, study the impact of the religiosity of Muslim customers on customer satisfaction and loyalty among Muslims, as well as the impact of customer satisfaction on customer loyalty among Muslims. This study makes use of SEM (Structural Equation Modeling) for its analysis. According to the results of the investigation, various variables, including religiosity, and customer satisfaction have a strong positive effect on the variable of customer loyalty. However, there is no effect on the Muslim customer perceived value and the loyalty of Muslim customers.
THE DIGITAL BANKING SERVICES: A SELECTION MODEL FROM ISLAMIC BANKS
The digital banking services which consist of internet banking and mobile banking have occupied an important role in the financial sector. Despite the importance of digital banking, Islamic banks in Indonesia have encountered issues with the adoption of digital banking such as budget constraints as well as sizable investment. Therefore, it is important to examine how to prioritize the selection of digital banking services in Islamic banking. This study aims to propose a model for prioritizing the selection of digital banking services in Islamic banking by applying document research through analyze way the paper or journals and other published sources concerning with the digital banking and product development in Islamic banking. While most of the studies conducted in the conventional banking, in this study the proposed model is built to address the Islamic banking. The proposed model comprises six criteria and six alternatives of services that should be considered in the selection of digital banking services from Islamic banks perspective. The proposed model involves general criteria that presence in the general banking context (conventional banking or Islamic banking) and specification criteria which only presence in the Islamic banking namely Sharia (Al-Syari’ah). Therefore, the proposed model has characterized the model utilized for the Islamic Bank in prioritizing the services in digital banking.
EXPLORING CROWDFUNDING POTENTIAL FOR SUPPORTING COMMUNITY- BASED TOURISM IN MALAYSIA
This paper discovers the potential of the Islamic crowdfunding model for supporting community-based tourism in developing states Malaysia in particular. Community-based tourism has provided a great opportunity for rural areas to empower the socio-economy of local people to earn main or additional income, and crowdfunding is seen as a potential fund for supporting community-based tourism. This study applies a library research method as its data are collected through literature related to community-based tourism and crowdfunding topics. The special model of Islamic crowdfunding proposed by this study can potentially support community-based tourism if it is applied to a real platform. As a result, it can reduce the burden of the government in providing funds for tourism. While crowdfunding creates an alternative opportunity for community and tourism-based projects, it promotes job opportunities and economic growth within society including business and services. However, this approach could be challenging to apply because of awareness among people. Nevertheless, a suitable Islamic crowdfunding model with a proper campaign can be a practical solution for funding community-based tourism projects. As this study is conceptual, the outcomes may not be limited. However, it still provides a substantial contribution in terms of offering a practical model of Islamic crowdfunding in Malaysia.