What are the Challenges Faced by Islamic Banks in Making Financing Decisions toward Small Medium Enterprise (SMEs) in Malaysia?

This paper examines the challenges faced by Islamic banks in making financing decisions toward Small Medium Enterprises (SMEs) in Malaysia by analyzing three sets of applications used by banks, which are: (1) processes used by banks in assessing SMEs’ applications, (2) problems faced by banks during application process, and (3) monitoring the SME clients after financing has been granted. Small-and-Medium Enterprises (SMEs) are considered as the backbone of the national economy. They have evolved to become key suppliers and service providers to large corporations, inclusive of multinational and transnational corporations. Some of the contributions by SMEs towards Malaysian economy are; providing value-added activities in the manufacturing sector, expanding output, creating employment opportunities especially in the services sector and contributing to broadening Malaysia’s export base. However, because SMEs are often small and inexperienced as compared to many other larger and well-established multinational companies, banks are usually reluctant to lend money to them. SMEs are also considered as risky clients, have incomplete corporate governance, loose management, lack transparency in accounting information and do not keep proper records or meet conventional security requirements. These are few reasons why SMEs find it difficult to obtain financing from banks. From previous studies, researchers have argued that SMEs are characterized by lack of capital; therefore, granting financing to SMEs is considered as a high risk decision made by financial institutions. In this case, if a particular company defaults payment, it would reflect the bank’s financing ability in the future. On the other hand, in accessing financing applications from SMEs, banks are faced with considerable uncertainties and risk. Usually, data on SMEs tend to be unreliable or unavailable, making the decision process for banks more difficult. Furthermore, most banks and private firms are newly established and have little history of working with each other. Thus, conventional risk management techniques such as credit scoring are of limited use in such contexts. Therefore, this raises a very basic question: how in the absence of business data, are Islamic banks able to provide financing to SMEs in Malaysia and what are the challenges faced by banks? This study is focusing on the Islamic banking sector and as such two full-fledge Islamic banks in Malaysia have been chosen. Using questionnaires, documented evidence from banks and interview methods, this article investigates how do Islamic banks attempt to collect information from applicants for finance. The decision to focus on Islamic banks because, currently in Malaysia Islamic banking industry has boost out in the market and has been viewed as a new and promising alternative financing for SMEs. The aim of this study is to examine bank lending behavior, specifically, by investigating the challenges faced by Malaysian Islamic bank in the process of making financing decisions towards local Small Medium Enterprises (SMEs). From the studies, the availability of research findings on Western banks is contrasted with the scarcity of similar information on Islamic banks. Thus, this is the justification on why the dissertation is concentrating on Islamic banks. Finally, this paper discuss about the Islamic bank’s intervention strategies and efforts to support financing towards SMEs in Malaysia

THE ADOPTION OF ELECTRONIC COMMERCE (E-COMMERCE) BY SMALL MEDIUM ENTERPRISE IN MAKING FINANCING DECISION

Electronic commerce (e-commerce) is a very important strategic tool that fascinates many companies to turn their traditional business strategy into e-commerce technology. Nowadays, the use of e-commerce is growing among business organizations throughout the world. It’s not only limited to large companies, but also includes Small and Medium Enterprises (SMEs). The reason why businesses are moving towards of using e-commerce systems because this technology is very cost effective and can make day-today business operations are much more easier. However, some of the SMEs are still underexploited on the potential of e-commerce. Therefore, this paper will be focusing on the discussion about the adoption of E-commerce in small and medium sized business based on the financial decision-making. Journal, case study and articles have been used to support all the discussion and argument on the research problem.&nbsp

ANALYSIS OF THE FACTORS THAT INFLUENCE CUSTOMER PURCHASE INTENTION TOWARDS LUXURY FASHION GOODS

Purpose: Malaysia is an important luxury market and this luxury industry wills growth in the future because of the demand from young Malaysian consumers. Therefore, the purpose of this study is to examine the influencing factors that affect Malaysian Consumers’ purchase intention towards luxury fashion goods and their relative importance. Methodology:  Questionnaires had been distributed to 200 respondents. Data had been analyzed using SPSS to identify whether factors such as materialism, social comparison, and brand consciousness have a significant relationship with the intention to purchase luxury fashion goods.  Results: Results indicated that materialism and brand consciousness has a positive relationship with the purchase intention of luxury fashion goods in Malaysia. Implications: Malaysian consumers are more conscious and more aware of the unique brands to give prominence to their self-identity

Current developments of microwave filters for wideband applications

This paper presents a compilation of important review in the development of microwave filters for wideband technology used in previous years. The major research work for each year is reviewed. Several wideband filters based on the planar and non-planar circuits are compared and examined in order to propose a new topology of wideband filter using Suspended Stripline Structure (SSS). More importantly, this new proposed structure will be integrated with the Defects Ground Structure (DGS) to form an advanced hybrid system for wideband applications. This system will produce the band-pass and band-stop responses simultaneously in order to discriminate between the desired and undesired signals in the wideband spectrum. The proposed system outlined in this paper, featuring new innovation in hybrid structure as well as providing an insight of the direction of future research works. The contribution of this study is useful for applications where the reduction of physical volume is very important, while maintaining its good performance such as Ultra-Wideband (UWB), commercial radar as well as the wideband warfare receiver. As for future works, integration techniques between the UWB filter and DGS will be designed and analyzed to form an advanced new microwave device in order to produce bandpass and bandreject response in the same structure simultaneously

Hybrid topology of substrate integrated waveguide (SIW) filter and microstrip patch antenna for wireless communication system

This paper presents an analysis based upon the resonant circuit approach to develop hybrid system for integrating a microwave filter and an antenna in a single device. This technique is used to reduce the overall volume of RF/ microwave front-end device especially in wireless communication systems. This study focuses on the hybrid of rectangular Substrate Integrated Waveguide (SIW) filter with rectangular microstrip patch antenna to produce filtering and radiating element in a single system. To prove the concept, the hybrid of microwave filter and antenna, the operating frequency of 2 GHz is demonstrated and validated through simulation and experimental. The experimental performance shows promising results which were in good agreement with the simulated results particularly in exhibiting return loss better than 10 dB in the passband region. This study is useful for any hybrid microwave system whereby it can reduce the complexity of the design, weight and cost as it is very important in base stations and multiplexer in any wireless communication systems

Ultra-Wide Band (UWB) Ice Cream Cone antenna for communication system

The objectives of this paper are to design, fabricate and analyze UWB Ice Cream Cone Antenna. This antenna was fabricated on FR4 substrate. The effect of varying parameter for length of rectangular is studied. This antenna occupies the entire 3.1 GHz to 10.6 GHz spectrum band. The designs are simulated using CST Microwave Studio Simulation and the measurement are successfully achieves UWB spectrum band requirement. The proposed antenna suggested that the return loss must be less than -10 dB and a VSWR of less than 2 throughout the entire band with a lightweight planar profile and omnidirectional radiation pattern. The UWB Ice Cream Cone Antenna is designed, fabricated, measured and managed to cover UWB bandwidth from 3.1-10.1 GHz with the VSWR between 1.18 - 1.7 with a small size of 40 x 25 mm2 . The sizes of UWB communication devices can be reduced by using the Ice Cream Cone antenna. In the future, the low loss substrates can be used in order to increase the Return Loss of the antenna at higher frequencies for wideband applications

Wearable health monitoring system (WHMS) using wireless sensor network

The development in technologies has taken place in many sectors such as the Wearable Health Monitoring System (WHMS). It has been a remarkable revolution by the emerging of the Wireless Sensor Network (WSN) in performing the monitoring and recording of healthcare. Thus, the wearable wireless sensor based systems are intended to provide better personal health management, ubiquitous monitoring health condition, better quality treatment and care, along with to allow efficient circuit integrations, reliable vital signal measurements, low operation costs and optimum power usage. This paper therefore attempts to comprehensively review the basic concepts of Wearable Health Monitoring System (WHMS) using Wireless Sensor Network (WSN). A comparative study was carried out in various healthcare monitoring systems, which adapted different wireless technology. In addition, the challenges and limitations of WHMS systems are identified. The implication of this study is to minimize the challenges and limitations in the design, development and application of a wearable wireless sensor based systems. It is expected in the future that the information shared in this paper can serve similar scientific field and improve the system features

Route Planning Analysis In Holes Drilling Process Using Magnetic Optimization Algorithm For Electronic Manufacturing Sector

Electronic manufacturing sector uses computer numerical controlled machines for drilling holes. Most of the computer numerical controlled machines used nearest neighbour algorithm to plan the route for the drill bit to travel. Based on this motivation, this paper proposes an approach which is based on the experimentation of Magnetic Optimization Algorithm. In this implementation, each magnetic agent or particle in Magnetic Optimization Algorithm represents a candidate solution of the problem. The magnitude of the magnetic force between these particles is inversely proportional to the distance calculated by the solution they represented. Particles with greater magnetic force will attract other particles with relatively smaller magnetic force, towards it. The process is repeated until the stopping condition meets and the solution with lowest distance is taken as the best-found solution. Result obtained from the case study shows that the proposed approach managed to find the optimal solution. With this method, electronics manufacturing sector can optimize the drilling process hence will increase the productivity of the manufacturer. This study can be extended further by tuning the parameters of MOA in order to enhance the drilling route process

What are the Challenges Faced by Islamic Banks in Making Financing Decisions toward Small Medium Enterprise (SMEs) in Malaysia?

This paper examines the challenges faced by Islamic banks in making financing decisions toward Small Medium Enterprises (SMEs) in Malaysia by analyzing three sets of applications used by banks, which are: (1) processes used by banks in assessing SMEs’ applications, (2) problems faced by banks during application process, and (3) monitoring the SME clients after financing has been granted. Small-and-Medium Enterprises (SMEs) are considered as the backbone of the national economy. They have evolved to become key suppliers and service providers to large corporations, inclusive of multinational and transnational corporations. Some of the contributions by SMEs towards Malaysian economy are; providing value-added activities in the manufacturing sector, expanding output, creating employment opportunities especially in the services sector and contributing to broadening Malaysia’s export base. However, because SMEs are often small and inexperienced as compared to many other larger and well-established multinational companies, banks are usually reluctant to lend money to them. SMEs are also considered as risky clients, have incomplete corporate governance, loose management, lack transparency in accounting information and do not keep proper records or meet conventional security requirements. These are few reasons why SMEs find it difficult to obtain financing from banks. From previous studies, researchers have argued that SMEs are characterized by lack of capital; therefore, granting financing to SMEs is considered as a high risk decision made by financial institutions. In this case, if a particular company defaults payment, it would reflect the bank’s financing ability in the future. On the other hand, in accessing financing applications from SMEs, banks are faced with considerable uncertainties and risk. Usually, data on SMEs tend to be unreliable or unavailable, making the decision process for banks more difficult. Furthermore, most banks and private firms are newly established and have little history of working with each other. Thus, conventional risk management techniques such as credit scoring are of limited use in such contexts. Therefore, this raises a very basic question: how in the absence of business data, are Islamic banks able to provide financing to SMEs in Malaysia and what are the challenges faced by banks? This study is focusing on the Islamic banking sector and as such two full-fledge Islamic banks in Malaysia have been chosen. Using questionnaires, documented evidence from banks and interview methods, this article investigates how do Islamic banks attempt to collect information from applicants for finance. The decision to focus on Islamic banks because, currently in Malaysia Islamic banking industry has boost out in the market and has been viewed as a new and promising alternative financing for SMEs. The aim of this study is to examine bank lending behavior, specifically, by investigating the challenges faced by Malaysian Islamic bank in the process of making financing decisions towards local Small Medium Enterprises (SMEs). From the studies, the availability of research findings on Western banks is contrasted with the scarcity of similar information on Islamic banks. Thus, this is the justification on why the dissertation is concentrating on Islamic banks. Finally, this paper discuss about the Islamic bank’s intervention strategies and efforts to support financing towards SMEs in Malaysia