An analysis on the efficiency of the Malaysian Islamic banking industry: domestic vs. foreign

This paper examines productivity change of Islamic banks in Malaysiaduring the period 2006 to 2008. The data includes a panel of 12 Islamic banks and the productivity of each bank is analysed using the non-parametric Data Envelopment Analysis (DEA) method or the intermediation approach. In the DEA technique, efficiency is measured by the Malmquist index. We model Islamic banks in Malaysia as multi-product firms producing two outputs (total loan and income) by employing three inputs (total deposit, labour, fixed asset). Overall results suggest that scale efficiency dominates the pure technical efficiency effects in determining Malaysian Islamic banks’ overall or technical efficiency. Another important finding derived from the study is that Malaysian-owned Islamic banks’ performance is better compared to their foreign-owned counterparts. The findings of the study are important for Islamic banks in Malaysia to improve or maintain the ability to become more competitive and provide a viable and better alternative to the conventional banking system

Incorporating financial literacy in video clips amongst high school students

Young adults with enough financial knowledge can commonly make good financial decisions, whereas those who lack financial literacy are always burdened by student loans and credit card debts. Acquiring adequate financial knowledge has become crucial among young adults. The present study investigated the effectiveness of incorporating financial literacy into videos among high school students. The video clips were incorporated into financial literacy in the economics curriculum to engage students and facilitate their learning of financial literacy. This study employed the mixed-methods explanatory design. The data analysis procedures in this design involved collecting the quantitative data, analyzing the data, and using the data to guide the follow-up interviews. A total of 327 students participated in this study. The results showed a significant change in students’ behavior regarding financial literacy (F=271.847, p<.05). Financial literacy should be instilled to students from primary school through tertiary education to ensure long-term sustainability effects

The effect of video-based collaborative learning among economics’ undergraduates in Malaysia

This study reports on the effect of video-based collaborative learning in the teaching of economics among undergraduates in Malaysia. This study is undertaken to compare the video-based collaborative learning plus hands-on method and conventional collaborative method in promoting students’ performance and teamwork skills. This study employed the quasi experimental with pretest-posttest control group design. A total of 90 students was taken as samples. The samples were divided into Video-based Collaborative Learning plus Hands-on (VBCLH) group and Conventional Collaborative (CC) group. The analysis showed that the VBCLH group outperformed in performance and teamwork skill. The students’ hand-on experiences and making the video that related with the economics topics with composing their own lyrics with economics term are the innovations of this method. They can learn through experience and enjoy the lesson. Video-based learning has gained the attention since the classroom setting emphasizes on blended learning

The role of ar-rahn in enhancing financial inclusion: a structural equation modeling approach

This study examines the relationship between financial inclusion and the adoption of ar-rahn financing in enhancing the well-being of its customers throughout Malaysia. Data distributed via questionnaire to 239 respondents were analyzed using descriptive and structural equation modeling. The results indicate that there is a positive relationship between financial inclusion and ar-rahn’s financing adoption. In addition, the adoption of ar-rahn among customers improves the well-being of individuals and society. This paper contributes to the existing literatures and provide new insights on how financial inclusion could increase the adoption of ar-rahn financing and consequently the individual and societal well-being

The Involvement of B40 entrepreneurs in E-Commerce: experience from Malaysia

The focus of the study was: first; to identify the involvement of B40 entrepreneurs in e-commerce and, second; to analyse the factors influencing their involvement. This quantitative study involved 207 respondents chosen using the snowball sampling technique. All respondents were low-income government sector workers (B40) who were conducting business part-time to increase their income. Information was acquired via questionnaires which had been adapted according to the study’s suitability and adopted from several sources. The finding showed that the respondents were well-informed about the existence of e-commerce. A majority of them only utilised e-commerce for shopping purposes and not for selling purposes even though they had products to be marketed. As for the respondents who sold products online, the most critical factors influencing their involvement were the income increase, broadband facility and knowledge about e-commerce. Regarding the respondents who did not market their products online, the critical factors which influenced them were the satisfaction of doing business in a traditional way, online business safety and lack of knowledge in handling online business were critical factors which hindered their involvement in e-commerce. As such, the B40 entrepreneurs were encouraged to make use of e-commerce to expand the market. They should also attend related courses, become mentee for successful e-commerce mentors, and strive to expand their business network. The huge investment made by the government to provide broadband facility for the community members should be fully utilised especially by the B40 entrepreneurs in their effort to increase their income level

The involvement of B40 entrepreneurs in E-commerce: experience from Malaysia

The focus of the study was: first; to identify the involvement of B40 entrepreneurs in e-commerce and, second; to analyse the factors influencing their involvement. This quantitative study involved 207 respondents chosen using the snowball sampling technique. All respondents were low-income government sector workers (B40) who were conducting business part-time to increase their income. Information was acquired via questionnaires which had been adapted according to the study’s suitability and adopted from several sources. The finding showed that the respondents were wellinformed about the existence of e-commerce. A majority of them only utilised e-commerce for shopping purposes and not for selling purposes even though they had products to be marketed. As for the respondents who sold products online, the most critical factors influencing their involvement were the income increase, broadband facility and knowledge about e-commerce. Regarding the respondents who did not market their products online, the critical factors which influenced them were the satisfaction of doing business in a traditional way, online business safety and lack of knowledge in handling online business were critical factors which hindered their involvement in e-commerce. As such, the B40 entrepreneurs were encouraged to make use of e-commerce to expand the market. They should also attend related courses, become mentee for successful e-commerce mentors, and strive to expand their business network. The huge investment made by the government to provide broadband facility for the community members should be fully utilised especially by the B40 entrepreneurs in their effort to increase their income level

Muslim parents' reluctance to save for children's tertiary education in Malaysia: causes and reasons

This study aimed to identify the reasons and causes for the reluctance of Muslim parents to save for children’s tertiary education despite Islam encouraging the practice of saving money for the future. Additionally, this paper also identified the main sources used for current enrolled college children. A set of questionnaires had been used as the instrument to gather information needed. The respondents of this study were Muslim parents whose children were studying in public higher education institutions in Malaysia. Only 752 questionnaires were considered as completed and usable for analysis. Items in the questionnaires were adopted from Ipsos Public Affairs and adapted according to the suitability of the study. The study employed descriptive analysis including frequency and percentage. The findings showed that all respondents acknowledged that Islam encourages them to save money. The study also proved that T20 and M40 groups were focusing on other saving priorities rather than on children's education. Unlike the previous group (T20 and M40), the B40 group declared that they did not have enough money to save for their children’s tertiary education. B40 also expected that scholarship or financial aid would be enough to cover the cost. Furthermore, since respondents did not have savings for tertiary education of children, they used a variety of resources to finance their children's education. For T20 and M40, parents, their income and savings were used as the main sources for current enrolled college children. For the B40 group, the main sources were children's study loans, current income, scholarship and others. Some B40 received zakat to cover the cost of education. All parties should play their role to make better education possible. In conclusion, the public should be encouraged to save money as early as possible to ensure enough savings in the future. The government should step up with more campaigns and activities to encourage the society to save. Some suggestions to encourage individuals to save more in education were also made