The Role Of Gold As A Diversifier, Hedge And Safe Haven: A Study On The Impact Of Stock Market And Inflation In Malaysia

Walaupun kesepakatan sejagat mengatakan emas sebagai aset perlindungan yang selamat, penyelidikan akademik empirik mengenai topik ini setakat ini adalah agak jarang, terutamanya dalam konteks Malaysia. Despite the universal agreement of gold as a safe haven asset, empirical research on this issue to date is relatively sparse, particularly in the context of Malaysia

Export and economic growth in Southeast Asia current Newly Industrialized Countries: Evidence from nonparametric approach

Nonlinearity in the nexus of export and economic growth has not been addressed in most of the previous studies. If the true relationship is nonlinear, then inference from linear model may be invalid. This study re-examines the exports-growth nexus in four current Newly Industrialized Countries by nonparametric methodology. Results from Breitung cointegration test show existence of nonlinearities in the cointegration relationship of exports and economic growth in Malaysia, Thailand and Indonesia. With evidences of nonlinearities from cointegration test, nonparametric causality test based on rank series provides more reliable results than conventional linear model. The nonparametric causality test indicates a bilateral causality between exports and economic growth in Malaysia and Thailand. On the contrary, Indonesia support the hypothesis that growth driven exports. This results highlight that export is an engine to economic growth through its multiplier effect but it is not a general rule for all the Newly Industrialized Countries.Export-led growth, Nonparametric, Cointegration, Causality

Sharia compliant gold investment in Malaysia: hedge or safe haven?

This paper studies the hedge and safe haven characteristics of Sharia compliant gold in Malaysia. Specifically, we would like to know whether the official gold and gold account traded, which complies with Islamic principles, can be used as a hedge or a safe haven for the Malaysian market. To answer this question, we examine both constant and time-varying relations between domestic stock and gold returns. The notable finding is that the official gold standard of Malaysia can act as a strong hedge relative to the use of the Islamic gold account. On the other hand, the domestic gold, in particular the Islamic gold account, does not perform attractively as a safe haven during the episodes of extreme drops in stock market. These findings show that gold does not play a major role during the stock market declines in Malaysia. Nevertheless, we note that the official gold standard performs better than the gold account

Analysis of Three-Link Position Control during Sit to Stand Motion

This paper presents characteristics study of Sit to Stand ( STS ) motion. There are several model of STS including telescopic inverted pendulum, single-link, two-link and threelink(3L). Of all the system, 3L are chosen because of similar segment with human body. Previous study find a difficulty to analyze STS motion especially when the mass is changes. The characteristic of STS motion is not empirically conducted on the joint of each link. Hence the objective of the work presented here is to study the effect mass changes to each joint. Results shows that there is a possibility to estimate maximum torque needed by each link with equation derive from the experiment

Bivariate causality between exchange rates and stock prices in Malaysia

The main purpose of this paper is to examine the relationship between stock prices and exchange rates in Malaysia. This research considers high-frequency data of USD-MYR exchange rates and Kuala Lumpur Composite Index (KLSE) from July 22, 2005 to March 23, 2007, which is the period when the MYR was unpegged. The Johansen cointegration method suggests that there is no long-run equilibrium relationship between these two financial variables. Both Engle Granger and Toda-Yamamoto causality tests find that there is uni-directional causality running from stock prices to exchange rates

Customers' perception of Islamic Financing products pricing in Eastern Malaysia: an empirical investigation

Purpose - The main purpose of this study is to investigate bank customers' perception with regard to the pricing issuesof Islamic financing products in Eastern Malaysia. The study is intended to extend the work by Rosly (1999), Abdullah and Dusuki (2006), and a more recent study by Amin (2008). Rationality, these studies provide a research background with regard to the pricing issues in Islamic banking, not only in Islamic financing products but also to Islamic deposit products. Design/methodology/approach - The data for the research were collected using selfadministered questionnaires. A total of 400 questionnaires were distributed, and finalIy only 362 questionnaires were usable for the analysis purposes. The data were analyzed using Statistical Package for Social Science (SPSS) 17. Findings - All of the research objectives, certainly, were tested using survey data. Surprisingly, the majority of the respondents were of the opinion that Islamic financing products were not that of expensive as what was argued by previous works relevant to the pricing of Islamic financing products. On the other hand, there were also a number of respondents were still not clear about the pricing of Islamic financing products as proven to their responds to Islamic home financing, Islamic personal financing, Islamic car financing and Islamic credit card. It is therefore important to inculcate a dedicated support and further education to public with regard to the pricing concern in these products, which should be consistently and continuously done by Islamic bank managers in order to improve the pricing image of Islamic banking institutions in the eyes of bank customers. Research limitations/implications - The limitation of the study is the narrow focus on two cities in addition to the limited variables used in the research instrument. Notwithstanding, the research is important to provide insights on the pricing issues oflslamic financing products. The findings of this study shed some lights on the bank customers' perception level of Islamic financing products. Originality/value- This research is the first of its kind that examined bank customers' perception with regard to the pricing issues in Islamic financing products, which has limited previously been investigate

Exploring hibah practices among Muslim entrepreneurs in Kelantan

This study delves into a segment of Islamic wealth management, focusing on hibah (inter vivos gifts), and investigates how Muslim entrepreneurs in Kelantan manage and enhance their wealth judiciously and fairly. Given the rising concern over unclaimed assets and their potential to remain frozen if Muslims neglect property management, this research is essential. It aims to evaluate the comprehension of hibah among these entrepreneurs, analyse their practices, and draw insights on both understanding and application in Kota Bharu, Kelantan. Data were collected through interviews and document analysis, with the aid of ATLAS.ti software to facilitate a network view analysis. Findings reveal that while informants practice hibah and recognize its importance, complete understanding remains lacking. The outcomes of this study could influence government action to address state-wide issues and encourage Islamic religious councils to enhance the understanding and practices of hibah among Muslim entrepreneurs and the broader community

Intraday Lead-Lag Relationship between Index Futures and Stock Index Markets: Evidence from Malaysia

This paper investigates the lead-lag relationship between the stock index futures (known as FKLI) and its underlying index, the Kuala Lumpur Composite Index (KLCI) in the emerging Malaysian market. Using 15-second interval data, cross-correlation, and the partial adjustment model, we find a bi-directional asymmetric lead-lag relationship and that the KLCI’s lead over FKLI is much stronger. The evidence also suggests that the KLCI returns over-react to information, more so once thin trading effects are considered. Overall, the evidences suggest that traders prefer to exploit stock specific information in the underlying market despite the advantages of trading the index futures

The potential of Islamic Pawn System: a study on the appropriateness on Muassasah Gadaian Islam Terengganu operation in Sabah

Purpose - The need for an Islamic pawnshop has been discussed by the researchers within in Malaysia as well as other countries (for example: Nasifah, Nor Mariana & Nur Azura, 2005; Ismail & Sanusi, 2005; Ismail, 2004; Kon Lim, 2003; Ismail & Nur Zakiah, 1997; Rugayah, 1986). The Islamic based pawnshop transaction is still overlooked in Islamic finance practices and abandoned cases for the state government of Sabah. This issue is important as it might create a greater impact in promoting Islamic financial transactions among local people in the future. Therefore, the main purpose of this study is to understand public perceptions with regard to the need of Islamic pawnshop as this would help to improve the delivery of Islamic pawnshop facilities to Sabahan especially in terms of quality of services offered along with features and procedures of the products. Design/methodology/approach - The data for the research were collected using self-administered questionnaires. Out of the 1000 prepared questionnaires, only 500 questionnaires were managed to distribute to Sabahan. Out of these numbers, only 339 questionnaires were usable for further data analysis of the data. The data were analyzed using Statistical Package for Social Science (SPSS) 17. Findings - All of the research objectives, certainly, were tested using survey data. The results indicated that, the majority of the respondents believed that there should be an introduction of Islamic pawnshop system in Sabah. The results also indicated that the respondents were support the collaboration between the states in accelerating the introduction and the development of Islamic pawnshops in Sabah. Furthermore, it is likely reported that, the majority of the respondents prefer to choose "Muasassah Gadaian Islam Sabah" or MGIS for Islamic pawnshops in Sabah. Research limitations/implications - The limitation of the study is the narrow focus on a couple of cities in addition to the limited variables used in the research instrument. Notwithstanding, the research is important to provide insights on the feasibility of establishing Islamic pawnshop system in Sabah. The findings of this study shed some lights on Sabahan perception level of Islamic pawnshop. Originality/value- This research is the first of its kind that examined Sabahan perception with regard to potential of establishing Islamic pawnshop in Sabah, which has limited previously been investigated