Impact of exchange rate and oil price on the yield of sovereign bond and sukuk: Evidence from Malaysian capital market / Huda Arshad, Ruhaini Muda and Ismah Osman

This study analyses the impact of exchange rate and oil prices on the yield of sovereign bond and sukuk for Malaysian capital market. This study aims to ascertain the effect of weakening Malaysian Ringgit and declining of crude oil price on the fixed income investors in the emerging capital market. This study utilises daily time series data of Malaysian exchange rate, oil price and the yield of Malaysian sovereign bond and sukuk from year 2006 until 2015. The findings show that the weakening of exchange rate and oil prices contribute different impacts in the short and long run. In the short run, the exchange rate and oil prices does not have a direct relation with the yield of sovereign bond and sukuk. However, in the long run, the result reveals that there is a significant relationship between exchange rate and oil prices on the yield of sovereign bond and sukuk. It is evident that only a unidirectional causality relation is present between exchange rate and oil price towards selected yield of Malaysian sovereign bond and sukuk. This study provides numerical and empirical insights on issues relating to capital market that supports public authorities and private institutions on their decision and policymaking process

Navigating the Path to Equitable and Sustainable Digital Agriculture among Small Farmers in Malaysia: A Comprehensive Review

The agriculture sector has transformed with the advent of digital agriculture, smart farming and Agriculture 4.0, yet the social science aspects remain underexplored. This article aims to address this gap by conducting a comprehensive review of 17 studies that focus on the social, economic, and institutional dimensions of precision farming, digital agriculture, smart farming and Agriculture 4.0. The objectives are to explore the dynamics between digital agriculture and farm diversity and to identify emerging concerns related to economics, business, institutions, and ethics. Methodologically, the review synthesizes existing literature on socio-cyber-physical-ecological systems, digital agriculture policy processes, the transition from analog to digital agriculture and the global landscape of digital agriculture development. It adopts a multidisciplinary and transdisciplinary approach to provide a holistic understanding of the topic. The outcomes reveal significant implications for policymakers, farmers, and stakeholders in the agriculture sector. Key findings highlight the necessity of addressing social and economic impacts, such as data privacy, security, and accessibility, and the effects of automation on rural employment and community structures. The review emphasizes the importance of developing institutional and governance frameworks to support digital agriculture practices and tailoring policies to promote sustainable and equitable use of digital technologies. It explores how infrastructure, connectivity and local capacities influence the adoption of digital agriculture technologies. The review advocates for further research on the intersection of digital agriculture with broader societal trends, such as climate change, urbanization, and food system transformations, to develop strategies for sustainable and resilient food systems

Acceptance of Islamic Banking in New Zealand: Perspectives from Potential Customers

The Islamic banking system stems from an interest free economic transaction model, which was introduced well in the early days of Islam. Even though the development of Islamic banking in the southern hemisphere is not as rapid as in the northern hemisphere, this does not imply that small western countries such as New Zealand are not interested in this niche sector. The increasing number of the Muslim population in New Zealand, which grew to 70,000 by 2018, shows that there may be a potential demand for Islamic financial services. This perception study which is part of a larger feasibility study uses a quantitative approach to examine the perception level of New Zealand residents towards their intention to use Islamic banking. Using purposive sampling technique, 300 questionnaires were distributed to potential banking customers, irrespective of religion, residing in New Zealand. Multiple regression analysis was conducted to capture whether the variables based on the theory of reasoned action including knowledge, religious values, subjective norms and attitude had an effect on the New Zealand residents' intention to use Islamic banking. It was interestingly noted that only attitude had a significant effect on how New Zealand residents perceive their intention to use Islamic banking in their daily lives. Overall, this study has ascertained the level of perception towards their intention to use Islamic banking among potential customers in New Zealand. The results of this study can be used as a framework for the setting up of an Islamic banking system in New Zealand

Exploring the Role of Student Exchange Programs in Fostering Halal Understanding among South Korean Non-Muslims

One of the challenges in halal is the acceptance among non-Muslims of the values, due to their lack of appreciation in understanding its concept. Media bias, culture, personal beliefs, racism and Islamophobia are some of the common causes. Past studies concluded that the concept of misjudgment could be realigned to a positive attitude by providing the appropriate information and education. Therefore, the study was conducted with the aim, of assessing how the provision of halal knowledge through the concept of a student exchange program could change a group of non-Muslims’ attitude, acceptance and behavior towards halal. A research experiment was administered that involved a group of university students from a private university in South Korea, who voluntarily took part in a 7-day halal program in Malaysia. The study involved 1) a pre-test assessment, 2) participation in the student exchange heutagogy program and 3) a post-test assessment. Based on the paired sample test results, overall, there was a significant increase in the halal understanding among non-Muslims of South Koreans. The novelty of the study stems from the need to understand non-Muslims’ perception of halal, specifically from the learning and cultural perspectives

The effect of brand personality and brand identification on customer retention : examining Islamic banking services in Malaysia / Husniyati Ali, 'Ismah Osman and Sharifah Faigah Syed Alwi

The development of Islamic banks in Malaysia is increasingly challenging with more banks offering products and services based on Islamic principles. Hence, this study explores customers' perception towards corporate image and its impact on selfexpressive value, brand distinctiveness, brand attractiveness as well as brand identification towards their most preferred Islamic bank in Malaysia. Institutional theory as well as theory of social identification was exploited as the theoretical foundation for developing the conceptual model. Accordingly, data was collected firstly, through an exploratory study, through interviews with customers, Shari' ah supervisors, practitioners and lecturers in Islamic banking. Next, 'self-administered questionnaires were distributed among 600 customers of Islamic banks in Kuala Lumpur through purposive sampling, specifically in selected Islamic banks, shopping malls and stations of public transportation. Analysis of data was conducted through descriptive, exploratory and confirmatory factor analysis. Subsequently, structural equation modelling with 308 respondents was then conducted to test the hypothesized relationships among the constructs, as postulated in the model. Nine hypothesis links were supported, while eight were rejected. Results indicate that firstly, corporate image of Islamic banks are determined by institutional image and performative image. Performative image constitutes items including friendliness, reliability, honesty, security, achievement-orientation, leading-orientation, up-to-date and excitement. In consequence, institutional image constitutes god-consciousness, which includes items like being Islamic, humbleness, fairness and trustworthiness. Secondly, institutional image and performative image have impact on brand attractiveness. However, they do not have an impact on self-expressive value, brand distinctiveness and brand identification. Thirdly, self-expressive value has an impact on brand's attractiveness. Fourth, brand's attractiveness and brand's distinctiveness have an impact on consumers' identification with a brand. Fifth, brand's attractiveness has an impact on word of mouth, as well as brand loyalty. Sixth, consumers' identification with a brand has an impact on brand loyalty. It is hoped that this study would facilitate in developing corporate image in Islamic banks, due to intense competition from many players of the industry

Capital Structure–Firm Performance Nexus: The Moderating Effect of Board Independence

The purpose of this study is to investigate the relationship between capital structure and firm performance by exploring the moderating effect of one of the corporate governance mechanisms, namely board independence. Panel data regression was employed based on a sample of 492 non-financial listed companies in Malaysia from 2010 to 2019. The results showed that capital structure has a significant positive impact on firm performance. Meanwhile, board independence significantly and negatively moderates the relationship between capital structure and firm performance. The findings of this study shall provide better insights for investors, firm managers, and policymakers on the critical role of corporate governance mechanisms in enhancing firm performance, particularly in implementing suitable actions and policies

Public Transport Services in Klang Valley: Customer Expectations and Its Relationship Using SEM

This study investigates users’ expectations towards the services provided by public transportations and its relationships to customer satisfaction, loyalty and environmental factors. Additionally, it attempts to determine the most preferred mode of public transport. The data was then analyzed using descriptive statistics and structural equation modeling (SEM). The most preferred mode of public transportation was LRT (35.8%), and monorail (28.1%). More importantly, customers’ expectations on PT services were based generally on the account of safety. Findings also indicate positive significant relationships between customer satisfactions, environment and loyalty, as well as positive significant relationship between environmental concern and loyalty

Public Transport Services in Klang Valley: Customer Expectations and Its Relationship Using SEM

AbstractThis study investigates users’ expectations towards the services provided by public transportations and its relationships to customer satisfaction, loyalty and environmental factors. Additionally, it attempts to determine the most preferred mode of public transport. The data was then analyzed using descriptive statistics and structural equation modeling (SEM). The most preferred mode of public transportation was LRT (35.8%), and monorail (28.1%). More importantly, customers’ expectations on PT services were based generally on the account of safety. Findings also indicate positive significant relationships between customer satisfactions, environment and loyalty, as well as positive significant relationship between environmental concern and loyalty

Corporate image of Islamic banks in Malaysia: an institutional theory approach

The development of the Islamic banks in Malaysia is increasingly challenging with more conventional banks having their own Islamic bank subsidiaries participating and offering banking products and services based on Islamic principles after two decades of its establishment. Undoubtedly, it is very important for the players in the Islamic banking industry to better position themselves, in order to confront and respond vigorously to the robustness of the global financial environment. Hence, this study would embark on corporate image as this would be one of the most important criteria in determining customers’ patronage towards Islamic banking. More importantly, this study adopts the institutional theory approach since those banks offering Islamic banking products and services are considered homogenous. Exploratory study through interviews was conducted with customers, Syari’ah supervisors, practitioners and lecturers in Islamic banking as to gain insights pertaining to corporate image in Malaysia. Next, survey was conducted through self-administered face-to-face method, from Islamic banking customers in the Klang Valley. Exploratory factor analysis and confirmatory factor analysis were then employed for the data analysis. Consequently, it is hoped that this study would facilitate in developing the Islamic banks’ marketing strategies which are very crucial specifically due to the intense competition from the players of the industry