Malaysian Exports To Middle Eastern Asian Countries (Meacs): The Role Of Halal Development (Hd) And Trade Agreement (Ta)

Malaysia’s economic growths in the last three decades are mostly attributed to the success in exports sector. Export sector is dominated by manufacturing products such as electrical and electronics equipment, machinery, metal and mineral fuels. Among the top three Malaysian exports partners are United States, Singapore and Japan. Diversifying export destination is crucial so as to ensure that Malaysia will be reliant to selected few only. Thus, this study examines the bilateral export between Malaysia and Middle Eastern Asian countries (MEACs) for the period of 2002 to 2009 in order to investigate the potential impact of Halal development that is taking place in Malaysia on Malaysian exports.in addition this study also examine the impact of trade agreement on Malaysian export into MEACs. By using panel data, static effect, this study indicates that the crossrandom effect is the best model to be applied. The findings show that, the Halal development in certain extent play a vital role in promoting Halal products to MEACs, but it required more efforts to solve the pressing point. Besides, Trade Agreement has no threat of Trade Agreement diverting MEACs’ demand for import from Malaysia

Corporate social responsibility reporting within the Malaysian oil and gas industry: A questionable publicity stunt

This paper aims to challenge those involved in the CSR industry, non-governmental organizations (NGO) workers, CSR professionals and CSR consumers to question the real intentions by companies in their stance to move with the current trends and contribute towards a more sustainable and socially just society via their CSR activities. This paper used critically reviewed articles by using quantitative content analysis to analyse the High-Fit and Low-Fit CSR activities published within the Annual Reports, CSR Reports and company websites on firm performance over 5 years across the 30 oil and gas companies of Bursa Malaysia. This study finds that oil and gas companies should standardize their CSR reports based on the high-fit and low-fit CSR activities. By doing so, companies would be able to improve their reputation within the global community. This study could assist managers in oil and gas companies to review their CSR activities that indirectly give impacts towards social, economic and the environment. &nbsp

Pricing practices of Ar-Rahnu providers in Malaysia

Ar-rahnu is a shariah-compliant pawnbroking instrument that has high suitability to serve short-term and immediate financial needs of the lower income people. An important component of ar-rahnu is the safe-keeping/service fee on the collateral items charged by the ar-rahnu providers. This study highlights the pricing practices of selected ar-rahnu providers in Malaysia by comparing the service charges that they imposed as well as the loan margins granted by each of the providers. By doing so, the study aims to provide a critical discussion on the related issues arising from the pricing practices. This study hopes to shed lights on the role of ar-rahnu in providing inclusive financing to the low income group. Findings of this study contribute towards better growth of the ar-rahnu industry in particular, and the Islamic finance industry in general

Malaysian Exports To Middle Eastern Asian Countries: Trends And The Role Of Trade Agreements

Malaysia’s remarkable economic performance during the past three decades is partly due to the country’s successful export sector. Nonetheless, the growth of emerging economies necessitates change in the structure of Malaysia’s export sector. With slow economic growth in its primary trading partners, there is a pressing need for Malaysia to change its current export structure, which relies heavily on western industrialised countries as export destinations. By doing so, Malaysia can diversify its economy through agreements with new export destinations with which it currently has low bilateral trade. This paper aims to examine the trends of Malaysia's exports to Middle Eastern Asian Countries (MEACs) that are similar to Malaysia in that MEACs are also Islamic countries. Proposing MEACs as Malaysia's new main export destinations, this study will examine the probable impact of various trade agreements signed between MEACs and other countries on Malaysian exports to MEACs. Applying panel data analysis, this study observes that trade agreements between MEACs and other countries do not exert negative effects on Malaysian exports to MEAC

Critical Acceptance Factors towards the Ar-Rahnu Scheme in Malaysia

Of late, there is growing acceptance of ar-rahnu as a viable and competitive mode of financial instrument in the Islamic finance industry. Amid the increasing interest, research efforts have been focused on reviewing and examining ar-rahnu particularly on the acceptance factors of ar-rahnu, but scanty exertion has been given on acceptance factors from the perspective of the customers. Through a thorough review of the literature, this study highlights the important aspects on the customers'acceptance of ar-rahnu in Malaysia

Analysing ar-rahnu in the context of informal credit market theory: Evidence from women micro-entrepreneurs in Malaysia

Purpose - This study aims to offer a new area of discourse by investigating the factors determining the usage of the Islamic non-bank financing product ar-rahnu (Islamic pawnbroking) among women micro-entrepreneurs in Malaysia within the framework of the informal credit market theory. Design/methodology/approach - The study is based on primary data obtained by using self-administered questionnaires distributed in three states in Malaysia: Kedah, Kelantan and Terengganu. The questionnaires were distributed to a total of 750 participants, with each state contributing 250 respondents. Total number of respondents valid for data analysis was however 600. Findings - Based on descriptive and inferential statistics by using the IBM statistical package for the social sciences and structural equation modelling analysis of moment structures, the results show that the main factor influencing women micro-entrepreneurs to use ar-rahnu is the service charge. Research limitations/implications - This study only covers three states in Malaysia and is limited to examining the use of ar-rahnu by women micro-entrepreneurs in those states. Practical implications - As micro-entrepreneur s often face constraints to obtaining financial access in the formal credit market, ar-rahnu provides an alternative mode of obtaining business financing to female micro-entrepreneurs, so they can sustain their operations and even expand their businesses. The significance of such factors like service fee, as revealed in this study, indicates that managers should focus on this element when offering Islamic financial products, especially to women micro-entrepreneurs. Originality/value - The informal credit market theory is frequently used in conventional studies. This paper adds Sharīʿah compliance in the context of this theory as a new area to be considered when discussing Islamic financial products

Comparative study on board structure and performance between domestic and foreign banks in Malaysia

This study examines the performance of domestic and foreign banks with regards to the relationship between the board structure and their financial performance in Malaysia. The sample consists of 8 domestic banks and 16 foreign banks in Malaysia from 2012 to 2016.The board structures are board size (BS) and proportion of independent director (ID) as an independent variables and firm size as the control variable. Meanwhile, the performance is measured by four ratios, liquidity (current ratio), profitability (return on assets), risk and solvency (loan to deposit ratio) and efficiency performance (asset utilization ratio). The findings reveal that the board size is proved to be significant relationship with return on assets (ROA) as well as loan to deposit ratio (LDR) for both domestic and foreign banks but insignificant with the other ratios of both the domestic and foreign banks. Apart from that, independent director proportion showed an insignificant influence on financial performance with four financial ratios for both domestic and foreign banks. This study suggests that both domestic and foreign banks do have difference in terms of financial performance, domestic banks perform better than foreign banks in terms of generating good return on assets and loan to deposits ratio however foreign banks perform far better in terms of level of liquidity of the banks as compared to domestic banks

The Adoption of Ar-Rahnu and Financial Wellbeing of Microentrepreneurs in Malaysia

There is an urgent call for a potential justification on how and to what extent customers (microentrepreneurs) of Ar-Rahnu institutions in Malaysia are successfully driven their living standards from B10 (hardcore poverty) to B40 (low income). This study classified Ar-Rahnu’s adoption factors into three categories, namely, Shari’ah governance, uniqueness of Ar-Rahnu, and efficiency. 150 questionnaires were distributed to micro-entrepreneurs that used Ar-Rahnu and analysed using SmartPLS 3.0. Based on the results, it shows that Shari’ah governance has a low correlation and insignificant relationship towards Ar-Rahnu adoption. Stated differently, it means that customers find Shari’ah-compliance requirements not as important and it does not get in their way of getting instant cash from Ar-Rahnu. The other two constructs, namely as uniqueness and efficiency, have positive relationships with Ar-Rahnu adoption. It shows a significant and positive relationship with the Ar- Rahnu financing output. Unlike previous studies within the body of knowledge that mainly focuses on the adoption factors of Ar-Rahnu, this study went a step further by addressing the after-effect or impact of Ar-Rahnu adoption towards customers’ wellbeing, especially in terms of financial wellbeing and have found positive results

Nexus between Islamic microfinancing and financial wellbeing of micro-entrepreneurs during the Covid-19 pandemic in Malaysia

Islamic microfinance is expanding and penetrating its potential market over the globe. Access to credit or financing, especially during the COVID-19 pandemic, is vital for micro-entrepreneurs in climbing the socio-economic ladder that will contemporaneously increase their household income. In Malaysia, most of the MEs can hardly access financing from formal financial institutions due to poor credit rating, having zero to little collateral, income instability, small loan amounts, and high transaction costs. Alternatively, MEs approach Islamic microfinance institutions for their financing solution. Therefore, this study intends to investigate how far the utilization of Islamic microfinancing by MEs could enhance their quality of life. One hundred seven (107) usable questionnaires were analysed via the Structural Equation Modelling (SEM) AMOS using IBM® SPSS and found that both investment and expansion factors played key roles in affecting the financial wellbeing of the micro-entrepreneurs. The results lend credence to the positive effect of Islamic microfinance products may have on MEs and indirectly support the long-term economic development for MEs. This study deliver implication to various angles. In practical part, it opens the eyes of micro-entrepreneurs to opt for the right path (expansion and investment) to achieve financial wellbeing. Government (regulators) can enhance the ability of Islamic microfinancing as a tool towards financial wellbeing and in theoretical part, this study deepens the scope of Schumpeter’s theory by inculcate this theory with Islamic finance scope of study

Does Banks’ Moratorium Alleviate the Burden of Borrowers? Case Of the Pandemic Covid-19

The COVID-19 crisis has devastatingly affected the Small and Medium Enterprise (SMEs) cash flow. Subsequently, the employee was laid off as the SMEs could not sustain themselves. To address these issues, governments globally embrace moratoriums to alleviate the hardship. However, there is a clash between the borrowers' expectations, the government agenda, and the current banking system. Therefore, this study undertakes a study on why there is a need for Islamic financial institutions to undertake a similar approach to conventional banking in discharging their moratoriums. In addition, the study shall also suggest possible alternatives that would protect both the customers' and the Banks' interests while upholding Maqasid-Shariah. The study applies a case study approach. The primary data was collected through in-depth interviews. The applied thematic analysis (ATA) was then employed in analyzing the narrative provided by the participants. The findings conclude that the moratorium has met the borrowers' expectations regarding assisting during a difficult time. Meanwhile, practitioners concluded the positive impact of the moratorium on the borrowers only for the short term. Shariah executive has pointed out that providing a moratorium with entitlement for accumulated profit is justice for both borrowers and the Banks. The Islamic Financial Institutions have been discharging the moratorium according to Maqasid Shariah. The study reveals that the sustainability of the financial institutions depends on the accumulated profit collected as the Malaysian banking system is debt-based. Thus, the act of taking accumulated profit is deemed within the Maqasid Shariah. Effective communication, government intervention, and reevaluating the interest rate system calculation are possible alternatives to protect both customers and the banks should the moratorium be implemented again for a similar situation like the COVID-19 pandemic and lockdown