Financial literacy : an exploratory review of the literature and future research / Mohamad Azmi Abdullah and Rosita Chong

There are voluminous literatures written on financial literacy or financial knowledge. Since there is a renewed interest in Islamic finance, this article provides an account of reviews on current financial literacy studies in particular studies with respect to Islamic financial products. It was several years ago when the Governor of Central Bank of Malaysia pointed out that in order to make Islamic financial products acceptable to a wider spectrum of investors and businesspeople alike, financial literacy on Islamic financial products need to be enhanced. This is in order to facilitate transactions, with a clear understanding and appreciation of the unique characteristics and features of Islamic finance and its real economic value. Nevertheless, Kayed (2008) in his paper posed a pertinent question enquiring if there are any attempts by the research community to assess levels of Islamic financial literacy in various Muslim communities. In addition, another question was put forth by Ahmad (2010) on the importance of Islamic financial literacy. These two questions have actually motivated the current study to review available literatures on financial literacy main focus on the Islamic financial literacy. The objectives of this study are to determine if there are sufficient studies available on financial literacy with respect to Islamic financial products and services, as well as to examine if there are sufficient studies on the differences in the factors that affect financial literacy of people. The implications and recommendations are then put forward for future research

Ethical investment VS Islamic Investment: will they ever converge in the globalised world?

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Challenges facing bank in financing international trade : from an Islamic perspective

Risk has always existed in business and it is even predominant when business transactions are done across borders. With the intensification of industrialization, it has resulted in risks that are unknown before. In the competitive business environment today, for business firms to compete, they must not only be able to minimize their risks in doing business, but also be able to take advantage of the growth opportunities presented by doing business in other countries. Hence understanding what risk is and what the perception of business firm towards risk is very important to any bank especially Islamic bank. This study investigates the risks that Islamic banks face in particular when dealing with the Islamic bank mode of financing. There are some inherent risks involved when Islamic bank uses the Islamic principle of financing. Managing risk management is a complex discipline even in a very simple commercial transaction. Nevertheless, risk is a core element of business (particularly international business) which is closely related to return. Financing international trade inevitably is complex and involves risks, irrespective of the markets in which business firms chose to conduct their business transactions. Hence, it is pertinent that an analysis on issues of risk management in the Islamic Financial system is undertaken as well. A Sharia’ compliant risk management is analysed and some alternatives to risk management is proposed for Islamic banks in mitigating their risks in financing international trade.peer-reviewe

Financial literacy: an exploratory review of the literature and future research

There are voluminous literatures written on financial literacy or financial knowledge. Since there is a renewed interest in Islamic finance, this article provides an account of reviews on current financial literacy studies in particular studies with respect to Islamic financial products. It was several years ago when the Governor of Central Bank of Malaysia pointed out that in order to make Islamic financial products acceptable to a wider spectrum of investors and business people alike, financial literacy on Islamic financial products need to be enhanced. This is in order to facilitate transactions, with a clear understanding and appreciation of the unique characteristics and features of Islamic finance and its real economic value. Nevertheless, Kayed (2008) in his paper posed a pertinent question enquiring if there are any attempts by the research community to assess levels of Islamic financial literacy in various Muslim communities.In addition, another question was put forth by Ahmad (2010) on the importance of Islamic financial literacy. These two questions have actually motivated the current study to review available literatures on financial literacy main focus on the Islamic financial literacy. The objectives of this study are to determine if there are sufficient studies available on financial literacy with respect to Islamic financial products and services, as well as to examine if there are sufficient studies on the differences in the factors that affect financial literacy of people. The implications and recommendations are then put forward for future research

A study of knowledge workers and productivity in the commercial banking industry in Kuching / Rosita Suhaimi ...[et al.]

This study seeks to understand the relationship between knowledge workers, the banking work environment and the impact of the work environment on the productivity of the commercial banks in Kuching. The definition of the work environment includes Peter Drucker's 6 factors, namely task identification, autonomy , continuous innovation, continuous learning, importance of quality and employee as asset. Productivity of banks is measured using productivity measures such as counter transactions per day, loan applications processed/approved, values of deposits, value of credit approved, gross profit before tax, and average cost per employee

Repayment behaviour of development financial institution borrowers / Chong Fen Nee, Rosita Haji Suhaimi and Nurhani Aba Ibrahim

This study investigates the repayment pattern of Development Financial Institutions borrowers in Sabah and Sarawak. Additionally, factors such as demographic profile, loan characteristics and borrower-lender distance are examined to determine their relationships with repayment performance. A total of two hundred and forty-two queationnaires were collected during the study period and used for the analysis. Findings showed that 43% of the respondents default their credit obligations while the remaining take between one to six months to settle their monthly arrears. When the cross-tabulation analysis was used to identify the common demographic characteristics of the defaulters, it was found that most of the defaults are male, attain a lower level of education, have a higher total number of dependents and self employed. An empirical analysis on the impact of the factors affecting repayment performance of Development Financial Institutions using logistic regression analysis suggested that Development Financial Institutions should manage the borrower-lender distance actively and impose a collateral requirement in order to mitigate default peoblems

The Relationship between Internet Usage and Gross National Income of an Emerging Economy

This study examines both the long-run and short-run relationships between the internet usage rate and the gross national income per capita of an emerging economy – Malaysia. Empirical findings from the econometrics analysis of a thirteen years time series found that there is a significant long-run and short-run relationship between these two variables. Therefore, enhancing internet usage among the public and private sectors is a relevant strategy towards achieving a higher national income status for the people in this country

Does Research and Development Expenditure Co-integrate with Gross National Income of ASEAN Countries?

In order to successfully transform into a knowledge economy and eradicate poverty, many ASEAN countries have allocated a considerable amount of their yearly expenditures in research and development over the last decade. The objective of this paper is to examine the long-run relationship between research and development expenditure and gross national income of five major ASEAN countries – Thailand, Malaysia, Singapore, Indonesia and Philippines. The results of a cross-country panel data analysis performed in this study suggest that there is a long-run cointegration relationship between these two variables. Findings imply that higher research and development expenditure has a favorable impact on the long-run prosperity of these countries

Repayment behavior of development financial Institution borrowers/ Chong Fen Nee… [et al.]

This study investigates the repayment pattern of Development Financial Institutions borrowers in Sabah and Sarawak. Additionally, factors such as demographic profile, loan characteristics and borrower-lender distance are examined to determine their relationships with repayment performance. A total of two hundred and forty-two questionnaires were collected during the study period and used for the analysis. Findings showed that 43% of the respondents default their credit obligations while the remaining take between one to six months to settle their monthly arrears. When the cross-tabulation analysis was used to identify the common demographic characteristics of the defaulters, it was found that most of the defaults are male, attain a lower level of education, have a higher total number of dependents and self employed. An empirical analysis on the impact of the factors affecting repayment performance of Development Financial Institutions using logistic regression analysis suggested that Development Financial Institutions should manage the borrower-lender distance actively and impose a collateral requirement in order to mitigate default problem's

Multi-dimensional aspects of poverty and their linkages amongst squatters in Kampong Baru Stutong, Tabuan Jaya, Kuching / Wee Chong Hui, Rosita Suhaimi and Annie Wong Muk Ngiik

This is a study on a multi-dimensional aspects of poverty. It attempts to find out the linkages amongst squatters in Kampong Baru, Kuching and their relationships with expenditure, nutrition, housing and access to piped water, electricity, sewage and income