International Journal of Islamic Business
IJIB, International Journal of Islamic Business, is a double-blind peer reviewed, international academic journal published biannually (April and October, formerly published in June and December) by Islamic Business School, Universiti Utara Malaysia. A manuscript submitted to the Editorial Board for consideration must be an original unpublished work, not under consideration for publication elsewhere. IJIB accepts articles, research notes, case studies, and book reviews based on research, original thoughts and commentaries in Islamic Business, Muamalat, Islamic Finance and its related fields. Articles are published in Bahasa Melayu, English and Arabic.
Islamic Business School, Universiti Utara Malaysia
WAQF GOVERNANCE AND ASSET MANAGEMENT IN SUDAN: ACCOUNTABILITY AND PERFORMANCE
This study explores how governance arrangements influence waqf (Islamic endowment) asset management in Sudan, with particular attention to accountability and organizational performance. Using a qualitative literature-based approach through a systematic literature review and conceptual analysis, the study examines scholarly works, policy documents, and publicly available institutional materials concerning Sudan’s waqf administration and regulatory environment. Relevant literature was identified through database searches and screened based on relevance and publication quality, resulting in 35 sources selected for detailed analysis. The findings identify three interrelated patterns. First, institutionalized governance structures support coordination and standard-setting in waqf administration. Second, productive management through diversified asset portfolios particularly urban properties and agricultural lands enhances prospects for sustainable revenue generation. Third, formal accountability and oversight arrangements strengthen transparency and public trust, thereby reducing risks of asset misallocation. These governance features collectively improve the capacity of waqf institutions to sustain social programs including education, health, and social welfare initiatives. Practically, the study highlights the importance of strengthening asset registration systems, improving transparency and reporting standards, and enabling structured partnerships with private actors while maintaining sharia compliance. Overall, the study concludes that accountability-oriented governance is a critical enabler of sustainable waqf asset performance in Sudan.
Copyright (c) 2026 International Journal of Islamic Business http://creativecommons.org/licenses/by/4.0
The Role of Digital Marketing Strategies in Enhancing Halal Brand Visibility in Nigeria: A Qualitative Study
This study examines the role of digital marketing strategies in enhancing halal brand visibility in Nigeria. Despite the growing global demand for halal products and the increasing acceptance of halal branding as a mainstream phenomenon, halal businesses in Nigeria continue to face challenges in achieving visibility, competitiveness, and recognition in both Muslim and non-Muslim markets. Having adopted a qualitative research design, semi-structured interviews were conducted with sixteen halal business owners and managers in the cosmetics and food and beverage sectors. Data were analysed thematically using NVivo software, which revealed four major themes: digital marketing strategies for visibility, perceptions of effectiveness, impacts on visibility, recognition and reputation, and challenges in implementation. The findings show that businesses employ diverse digital tools, particularly Instagram, Facebook, TikTok, WhatsApp, and Google Ads, to engage audiences and strengthen visibility. Business owners rated digital marketing as highly effective, with improvements noted in sales, customer engagement, and brand recognition. Digital marketing also enhanced competitiveness by showcasing halal certification and ethical values, thereby appealing to both Muslim and non-Muslim consumers. However, challenges such as limited resources, content creation demands, knowledge gaps in SEO and analytics, and the need to balance creativity with Shariah compliance were recurrent across businesses. The study concludes that digital marketing is central to the visibility and competitiveness of halal brands in Nigeria, offering opportunities to expand market reach and build consumer trust. It recommends capacity-building through training, financial support, and tailored digital resources that align with halal principles. By addressing these barriers, halal businesses can optimise digital platforms to consolidate their market presence and strengthen their role in the growing halal economy.
THE CHALLENGES OF AR-RAHN PRACTICES AS A MICRO FINANCING FACILITY: A STUDY OF BANKING AND NON-BANKING INSTITUTIONS
Ar-Rahn, or Islamic pawn broking, is an alternative to conventional pawn broking based on Islamic principles. It provides a form of micro financing that adheres to ethical conduct, ensuring that no interest is charged. Through Ar-Rahn, individuals can access quick liquidity by pledging collateral. In a modern economy, there is no doubt that banks are a key contributor to the financial and economic prosperity. People, communities, and organizations depend on banks for the fulfillment of their financial resources and financial needs. Now, Ar-Rahn has been recognized and integrated to complement Islamic financial product offered by banking institutions. Simply put, Ar-Rahn is offered by banking institutions, in addition to Ar-Rahn institutions. Commonly, people access financing from banks. However, when it comes to accessing micro financing through Ar-Rahn, people tend to choose Ar-Rahn institutions over banks, even though the banks also offer Ar-Rahn services. This paper aims to critically review the challenges faced by Ar-Rahn providers (bank and non-bank institutions), and the solutions to Ar-Rahn to counter those challenges faced. This presence study held within northern states of Malaysia which is Perlis and Kedah. The study employed a qualitative approach by conducting in-depth interviews and was restricted to a sample of four different Ar-Rahn providers. The data were analyzed using thematic analysis. All informants interviewed revealed different challenges, such as gold price volatility, fake gold pledged, and competition. These findings highlight the need for stronger positioning and trust in Ar-Rahn institutions. Based on the results, several recommendations are proposed to sustain Ar-Rahn practices in the future, including active promotion by banks as an accessible microfinance option and strengthened outreach, transparency, and financial literacy by non-bank institutions in line with Shariah compliance.
PENERIMAAN AR-RAHNU SEBAGAI ALTERNATIF PATUH SYARIAH: KAJIAN EMPIRIKAL DALAM KALANGAN WARGA FELDA KUBANG PASU, KEDAH, MALAYSIA
Kajian ini bertujuan untuk menilai tahap penerimaan masyarakat Felda terhadap sistem Pajak Gadai Islam (Ar-Rahnu) dengan menumpukan kepada beberapa faktor utama seperti pengetahuan syariah, sistem harga, aset yang disandarkan, perkhidmatan dan layanan kakitangan, lokasi, serta pengiklanan. Menggunakan pendekatan kuantitatif, data dikumpulkan melalui soal selidik yang melibatkan 304 responden dari empat Felda di Kubang Pasu. Analisis deskriptif dan korelasi digunakan untuk mengenal pasti hubungan antara pembolehubah bebas dan penerimaan Ar-Rahnu. Hasil kajian menunjukkan bahawa sistem harga dan pengetahuan syariah adalah faktor yang paling dihargai oleh responden, diikuti aset yang disandarkan, perkhidmatan dan layanan kakitangan, lokasi, serta pengiklanan. Analisis korelasi mendapati hubungan signifikan antara penerimaan Ar-Rahnu dengan lokasi, pengiklanan serta perkhidmatan. Walau bagaimanapun, sistem harga dan aset yang disandarkan menunjukkan hubungan positif yang lebih lemah. Dapatan ini menegaskan bahawa penerimaan Ar-Rahnu dipengaruhi oleh kombinasi faktor intrinsik dan ekstrinsik. Kajian ini mencadangkan usaha penambahbaikan melalui promosi yang efektif, penekanan kepada lokasi strategik, serta peningkatan perkhidmatan pelanggan. Selain itu, usaha meningkatkan kefahaman masyarakat tentang manfaat syariah melalui program pendidikan dapat memperkukuhkan penerimaan Ar-Rahnu sebagai alternatif patuh Syariah kepada pajak gadai konvensional. ABSTRACT This study aims to assess the level of acceptance of the Islamic pawn-broking system (Ar-Rahnu) among FELDA communities by focusing on several key factors, namely Shariah knowledge, pricing system, pledged assets, customer service, location, and advertising. Adopting a quantitative approach, data were collected through questionnaires involving 304 respondents from four FELDA settlements in Kubang Pasu. Descriptive and correlation analyses were employed to identify the relationships between the independent variables and the acceptance of Ar-Rahnu. The findings reveal that the pricing system and Shariah knowledge were the most highly valued factors among respondents, followed by pledged assets, customer service, location, and advertising. Correlation analysis indicated significant relationships between the acceptance of Ar-Rahnu and location, advertising and customer service. However, pricing and pledged assets exhibited weaker positive correlations. These findings underscore that the acceptance of Ar-Rahnu is influenced by a combination of intrinsic and extrinsic factors. The study recommends improvements through effective promotional strategies, strategic location planning, and enhanced customer service. Furthermore, efforts to increase public awareness of Shariah-compliant financial benefits through educational programs could further strengthen the acceptance of Ar-Rahnu as a viable Islamic alternative to conventional pawn-broking. Keywords: ar-Rahnu, Islamic pawn broking, acceptance, Felda, Kubang Pasu
HALAL CHOCOLATE PURCHASE INTENTION AND COMPLIANCE: EXAMINING THE MODERATING ROLE OF RELIGIOSITY AMONG MALAYSIAN MUSLIMS
In Malaysia, the halal chocolate market is relatively less popular than other halal products such as meat and pharmaceuticals. The ingredients in commercial chocolate such as emulsifiers, flavorings, and dairy additives can raise halal compliance issues, an important but underexplored area of research. To date, there is little research attention on halal chocolate within consumer behavior studies. This study fills the gap by investigating religiosity as a moderating factor in halal chocolate consumption, an aspect not previously examined in this context. Using an online survey and convenience sampling method, a total of 252 valid responses were gathered from Malaysian Muslims aged 18 and above. Partial Least Squares-Structural Equation Modeling (PLS-SEM) was used to analyze the data of which findings suggest the significant effect of attitude and religiosity in driving purchase intention, as opposed to halal knowledge. Religiosity strengthens the relationship between attitude and intention, highlighting its crucial role in halal consumer decision-making. This insight shows that religiosity not only shapes halal-related attitudes, but also conditions their impact on behavior, especially in a product category that is often overlooked such as halal chocolate. Theoretically, this study contributes by positioning religiosity as a boundary condition in halal consumer research on top of providing practical guidelines for chocolate manufacturers, marketers, and halal certification authorities in catering to the religious sensitivities of Malaysian Muslim consumers.
Copyright (c) 2025 International Journal of Islamic Business http://creativecommons.org/licenses/by/4.0
EXPLORING MUSLIM YOUTHS’ PURCHASE INTENTION ON TIKTOK LIVE: A TECHNOLOGY ACCEPTANCE MODEL PERSPECTIVE
E-commerce, which enables the online trading of goods and services, has significantly altered the global retail environment. In Malaysia, this sector has experienced substantial growth driven by evolving consumer behavior and technological advancements. However, while TikTok Live is gaining popularity as a social commerce platform, limited research has examined the key drivers influencing the purchase intentions of Muslim youth consumers in this context. This study employs a quantitative approach grounded in the Technology Acceptance Model (TAM) to examine the purchase intentions of Muslim youth consumers on TikTok Live in Kubang Pasu, Kedah. A verified Google Forms survey was used to collect data from a sample of 384 respondents. The analysis employed Pearson correlation and regression techniques, using SPSS version 22 to evaluate the proposed relationships. Findings indicate that perceived usefulness and perceived ease of use have a significant influence on purchase intentions on TikTok Live. By emphasizing these crucial elements, businesses, marketers, and industry stakeholders can enhance purchase engagement with Muslim youth consumers, which will aid in the development of the digital economy and the social commerce sector. This research adds to the corpus of knowledge in social commerce and consumer behavior by validating the effects of perceived usefulness and perceived ease of use on purchase intention within the TikTok Live context among Muslim youth consumers.
HOW DO MUSLIM WOMEN ENTREPRENEURS ACHIEVE SUSTAINABLE BUSINESS PERFORMANCE? THE INFLUENCE OF SOCIAL SUPPORT, RELIGIOSITY, AND GENDER STEREOTYPES
From an Islamic perspective, entrepreneurship has been an essential activity for a long time. It started at the beginning of human life on this earth and continues to grow rapidly along with the development of human life itself. The interpretation and discussion of entrepreneurship from a capitalist and developed nation point of view has caused many researchers and practitioners in the world, including Malaysia, to prioritize the opinions of Western thinkers in evaluating business performance. Thus, this study aims to examine the influence of social support, religiosity, and gender stereotypes on the sustainable business performance of Muslim women entrepreneurs in the informal sector. This study selected women entrepreneurs based on cluster and purposive sampling techniques. Data processing using the structural equation modeling (SEM) method with the help of AMOS software. The study findings show that social support, religiosity, and gender stereotypes significantly predict social, economic, and environmental performance. The study findings hope to assist the relevant ministries and agencies in formulating an action plan to increase Muslim women's involvement in entrepreneurship. In addition, this study can also be referred to as an aid to the ministry in planning and designing programs needed by Muslim women entrepreneurs to help improve their ability to operate a business.
AN EVALUATION OF ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) FROM ISLAMIC PERSPECTIVES
In recent years, the growing emphasis on Environmental, Social, and Governance (ESG) has prompted the need of firms to integrate the sustainable development goals (SDG) with the ethical framework, particularly the religious aspect in their business operations. The objective of this study is to explore how Maqasid al-Shariah’s divine ethical framework complements and diverges from the secular models of SDG and ESG in promoting human welfare, sustainability, and moral governance. The qualitative desktop research methodology is employed to systematically assess the previous academic literature, laws and regulations, Islamic publications and latest ESG frameworks. This study reveals that Islamic finance principles, that are rooted in the Al-Quran, Al-Hadith and Maqasid al-Shariah, have been proven to significantly align with the fundamental values of ESG by fostering the environment protection (khalifah), social justice (adl) and finally, fair and equitable governance (amanah). However, due to the inconsistencies of metrics for both, few gaps are identified in integrating ESG into the Islamic finance framework. This study contributes to the literature by discussing the conceptual framework that integrate ESG, SDG and Maqasid al-Shariah principles in finance context. From the policymakers’ perspective, the findings may assist them in understanding the ESG policies and how they aligned with the Islamic values.
MALAYSIA’S HALAL ECOSYSTEM: A STRATEGIC MODEL FOR GLOBAL HALAL ECONOMIC GOVERNANCE
The development of the halal industry in Malaysia has been instrumental in positioning the country as one of the world's fastest-growing economies. Renowned as a global leader in the halal sector, Malaysia has significantly contributed to the halal economy that extends across diverse products and services, mainly in food and beverages, cosmetics, and pharmaceuticals. The success of the halal industry is predominantly driven by its comprehensive halal ecosystem, built on the collaborative and synergistic involvement of government agencies, industries, and consumers. The successful establishment of the halal ecosystem in Malaysia is significantly driven by key factors, including a robust halal regulatory framework comprising a systematic halal certification system and comprehensive halal guidelines and policies, as well as active halal research and development. This narrative review article delves into the Malaysia halal ecosystem, providing the structural, regulatory, and market forces that shape Malaysia’s global halal economy. Overall, this article highlights Malaysia’s economic significance and its role to serve as a blueprint for other countries to develop their halal industries.
ISLAMIC FINANCE AS DA'WAH: INTRODUCING ISLAM TO MALAYSIAN NONMUSLIM COMMUNITIES
Islamic banking in Malaysia presents a unique case study of religious knowledge transfer through financial services in a multi-religious society. This study examined how Islamic banking serves as a channel for da'wah to non-Muslim communities by analyzing research published from 2012 to 2024. Through systematic literature review of 19 key studies, the research investigated non-Muslim engagement patterns, understanding of Islamic banking principles, the effectiveness of religious knowledge transfer, and the success factors for Islamic banking among non-Muslim customers. The findings revealed three distinct research clusters: customer perception studies (2012-2015), behavioral research (2016-2020), and knowledge transfer analysis (2021-2024). The results indicated that effective da'wah occurred primarily through indirect channels, with service quality and operational excellence serving as foundational elements for building trust and understanding. The study identified key success factors, including competitive pricing, technological accessibility, and culturally sensitive communication approaches. However, challenges persisted in the comprehension of Arabic terminology and complex Islamic financial concepts. The research made significant contributions by demonstrating how professional service delivery created natural pathways for religious understanding, highlighting the effectiveness of indirect knowledge transfer through business interactions, and providing evidence for the role of Islamic banking in fostering interfaith dialogue. These findings had important implications for Islamic financial institutions, policymakers, and researchers interested in the intersection of Islamic finance and cultural dialogue.
ISLAMIC DIGITAL INHERITANCE IN MALAYSIA: THE ROLE OF POLICYMAKERS
The adoption of e-wallet in Malaysia are proliferating with 90 percent of the Malaysia actively use e-wallet, has introduced significant challenges in its inheritance. Despites the widespread adoption of e-wallet, existing e-wallet service providers policies do not address the transfer of digital assets upon the account holder's death. This will add the existing gap on billions of ringgits in unclaimed money and raises concerns about compliance with both Islamic inheritance laws and financial regulations. This study aims to examine the role of policymakers in addressing these challenges and ensuring the inheritance of e-wallet could occur. Hence, to achieve this objective, qualitative research approach including library-based research and semi-structured interviews with key stakeholders such as lawyer, estate planner and e-wallet service providers have been conducted. The findings revealed the critical role of Bank Negara Malaysia in establishing structured and legal procedural frameworks for e-wallet inheritance. Key informants emphasize the need for mandated policies, standardized procedures and enhance regulatory oversight to facilitate the proper transfer of e-wallet to the heirs. With unclaimed money reaching RM12 billion in 2024, this study highlights the urgent need for regulatory intervention and proposes a policy framework that integrates shariah principles with digital finance governance. This will endure the legal clarity, financial sustainability, and the protections of Muslims heirs’ rights in Malaysia’s evolving digital economy.
THE INFLUENCE OF DIGITAL MARKETING ON ISLAMIC FASHION CONSUMPTION: INVESTIGATING MILLENNIALS’ PURCHASE INTENTION IN DIGITAL INFLUENCERS
This study investigates how millennials’ fashion purchase behaviors are influenced by digital influencers, focusing on key factors such as perceived credibility, expertise, congruence, attractiveness, and para-social interaction. While influencer marketing is a major component of digital marketing, there remains a lack of tailored strategies targeting millennials, the primary demographic for social media engagement. A quantitative research approach was employed, utilizing an online survey distributed to 307 millennial social media users to analyze the extent to which digital influencers impact their purchasing decisions. Findings reveal that perceived credibility, congruence, attractiveness, and para-social interaction significantly influence millennials’ purchase intentions, whereas perceived expertise does not exhibit a significant effect. However, the study is limited to a millennial sample, and the findings may not be generalizable to other demographic segments. Future research should explore how these influencer-related factors impact different consumer groups to develop a comprehensive understanding of digital marketing effectiveness. The study provides valuable insights for fashion brands seeking to optimize their digital engagement strategies, emphasizing the importance of credibility, authenticity, and interaction-driven influencer marketing to strengthen brand-consumer relationships. By deepening the understanding of influencer marketing strategies in the fashion industry, this research offers practical recommendations for brands aiming to enhance their influence on millennial purchasing behavior in the digital age.
FINTECH REGULATION AND GOVERNANCE FROM THE SINGAPORE PERSPECTIVE
Through the adoption of a balanced regulatory approach that promotes technological advancement while mitigating risks, Singapore has become a global leader in fintech innovation. The Monetary Authority of Singapore (MAS) plays a crucial role in forming the ecosystem as this paper examines Singapore's fintech regulatory framework, governance mechanisms, and risk management tactics. Singapore has shown its dedication to innovation and financial stability through important initiatives like the Payment Services Act, Fintech Regulatory Sandbox, and cross-border payment links. Along with discussing new developments in green fintech and central bank digital currencies (CBDCs), the paper also discusses issues like consumer protection, cybersecurity, and decentralized technologies. Singapore offers a model for promoting inclusive and sustainable growth in the fintech industry through global cooperation and flexible policymaking.
INNOVATIVE SHARIAH-COMPLIANT FINANCING SOLUTIONS FOR AFFORDABLE HOUSING: INTEGRATING PAYMENT TECHNOLOGIES
The Malaysian government has launched numerous initiatives to provide affordable housing for low- and middle-income groups. However, rising living costs and the gap between household income and property prices continue to make homeownership unattainable for many. This study explores Shariah-compliant financing models, including Murabaha, Ijara, and Diminishing Musharakah, to assess their relevance to housing affordability in Malaysia. It also analyzes the role of digital payment technologies such as blockchain, mobile banking, and peer-to-peer (P2P) lending in improving efficiency, accessibility, and cost-effectiveness in housing finance. Furthermore, the study examines the integration of Shariah-compliant principles with fintech innovations to address the housing affordability crisis and provides actionable insights for policymakers and financial institutions. Using a qualitative research approach, purposive sampling was employed to select experts in Islamic finance, fintech, and housing. Data were collected through semi-structured interviews and analyzed using thematic analysis to identify key themes related to integrating Shariah-compliant financing with digital payment technologies. The findings reveal that combining Shariah-compliant financial instruments with advanced payment technologies can significantly reduce housing costs, improve access to financing, and enhance operational efficiency. By fostering collaboration among stakeholders, these solutions promote financial inclusion and sustainable housing development. The study offers valuable insights for researchers, policymakers, and practitioners seeking ethical and innovative approaches to Malaysia’s housing affordability challenges, highlighting the transformative potential of Shariah-compliant payment technologies.
THE ROLE OF ISLAMIC FINANCIAL LITERACY FROM THE PERSPECTIVE OF MAQASID AL-SHARIAH: A CASE STUDY OF COMMUNITY OF NAKA IN KEDAH
The research highlights a limited understanding of Maqasid al-Shariah and financial management principles among the rural community, coupled with inadequate digital and financial literacy. Economic hardships, lack of access to modern financial tools, and insufficient emphasis on long-term planning hinder their ability to achieve financial stability and align their practices with Islamic financial goals. Islamic financial literacy, when viewed through the lens of Maqasid al-Shariah, offers a holistic and ethical approach to financial management that aligns with the core objectives of Islamic law. Maqasid al-Shariah, aim to promote the welfare of individuals and society by preserving religion, life, intellect, progeny, and wealth. This study examines how these objectives shape financial literacy within an Islamic framework, emphasizing principles such as the prohibition of Riba (interest), the importance of Zakat (charitable giving), ethical investment, and the avoidance of extravagance and waste. The research employs a qualitative approach, utilizing secondary data collection through desktop research to analyze existing literature on Islamic financial literacy from the perspective of Maqasid al-Shariah. Additionally, it incorporates findings from a case study conducted in Naka, Kedah, focusing on the financial literacy and Islamic financial practices of villagers, supported by a pilot test with 27 participants who responded to workshop-survey sessions. By promoting a balanced and just approach to wealth management, Islamic financial literacy guided by Maqasid al-Shariah aims to advance financial stability, social equity, and overall well-being, thereby contributing to the holistic development of both individuals and communities. This research contributes by integrating Islamic financial literacy with Maqasid al-Shariah, offering a holistic framework for ethical financial management that promotes social welfare, enhances financial stability, and provides practical insights for empowering underserved communities through targeted education and tools aligned with Islamic principles.
EXAMINING THE PERCEPTION OF MUSLIMS ON THE ROLE OF WAQF TOWARDS POVERTY REDUCTION: A CASE STUDY OF RIJIYAR ZAKI, KANO, NIGERIA
One of the Islamic strategies of poverty reduction is waqf. This strategy had played a significant role in financing socio-religious and public welfare systems during the early days of Islam and is still relevant today. Many Muslim communities such as Malaysia are utilizing waqf for poverty reduction and enhancing the living condition of its citizens, but that is not the case in Nigeria. The objective of the paper is therefore to find out the reasons why waqf is not being fully utilized for poverty reduction by the Muslims in Nigeria, with particular reference to Muslims in Rijiyar Zaki, Kano- Nigeria. This was done by examining the perception of Muslims in Rijiyar Zaki, Kano- Nigeriaon waqf, its role in poverty reduction, and the reasons for its under-utilization. In carrying out the study, quantitative research method was used, and questionnaire was adopted as the instrument for collecting data. Data collected was then analyzed using descriptive analysis through the use of simple frequency counts and percentages. One of the major findings of the research was Muslims in this area have insufficient knowledge and lack of awareness regarding waqf. Providing proper education and sensitization on waqf may likely increase utilization of waqf for poverty reduction in the area of the study.
HALAL CERTIFICATION: LEGAL AND ETHICAL CONSIDERATION IN ISLAMIC JURISPRUDENCE
The article examines the moral and legal issues related to halal certification within the context of Islamic jurisprudence. This study also aims to examine the halal certification process' guiding principles and how they affect Shariah law compliance. The research employs a qualitative technique to investigate fundamental Islamic scriptures and modern fatwas to define the standards for halal certification and the moral obligations of certifying agencies. The findings show that halal certification reflects wider ethical convictions in Islamic finance and consumer practices, serving as more than just a regulatory instrument. The study identifies key elements affecting halal certification, such as the need for transparency, observance of Islamic dietary regulations, and the function of Shariah supervisory bodies in guaranteeing conformity. It also draws attention to the difficulties certifying bodies confront in upholding integrity and public trust in the face of expanding market demand. The article concludes by stating that halal certification greatly aids in adhering to Islamic beliefs and fostering ethical consumption. To guarantee that halal certification procedures correspond with the developing interpretations of Islamic jurisprudence, it advocates for increased cooperation between Islamic scholars and certifying bodies. This will promote ethical business practices and increase customer confidence in the halal market.
AN EMPIRICAL STUDY ON THE RELATIONSHIP BETWEEN CAREER ADMINISTRATION AND CAREER SUCCESS: AN ISLAMIC PERSPECTIVE
Career administration is essential for achieving career goals, relying on efficient management, particularly through job autonomy and transformational leadership. Research indicates that promoting job autonomy and implementing transformational leadership positively impacts employees’ career success, including promotions and satisfaction. However, practical issues such as inconsistent management practices and lack of support for job autonomy have hindered career success in many organizations. This study addresses these industry challenges by examining how job autonomy and transformational leadership influence career success within Malaysian government agencies from an Islamic perspective. By recognizing the difficulties employees face in maintaining efficiency and job performance, this research aims to understand how organizations can utilize career administration strategies to overcome these obstacles and enhance employee career success. A survey of 215 employees revealed two significant findings: firstly, career administration is positively and substantially correlated with promotions, and secondly, career administration positively linked to career satisfaction within the organization. These results highlighted the importance of career administration as a factor affecting career success. The study contributes to our understanding of how organizations can foster a positive work environment able to lead to a better organizational outcome.
WHAT MOTIVATES PEOPLE TO PAY ZAKAT, INFAQ, SADAQAH AND WAQF (ZISWAF) THROUGH ONLINE CROWDFUNDING PLATFORMS?
Online crowdfunding platforms are web-based platforms designed for fundraising through a collaborative concept. These platforms are claimed to enhance interest in Zakat, Infaq, Sadaqah and Waqf (ZISWAF) contributions due to the convenience they offer. To evaluate this claim, this study aims to examine the influence of literacy, transparency, accountability, religiosity, and trust on the interest in fulfilling ZISWAF obligations through crowdfunding platforms in Indonesia. Employing a quantitative approach, the research involved 182 respondents from the academic community who completed an online questionnaire distributed to 15 universities with ZISWAF institutions on their campuses. The data were analysed using multiple linear regression method. The findings reveal that accountability variable does not significantly influence interest in fulfilling ZISWAF through online crowdfunding platforms in Indonesia. However, literacy, transparency, religiosity, and trust positively and significantly impact this interest. These results provide important insights into the determinants of individual interest in performing ZISWAF. Specifically, online crowdfunding platforms must ensure institutional accountability in ZISWAF fundraising activities. Additionally, platforms should increase transparency by publishing financial and other critical reports to maintain public trust. Therefore, this study contributes to the development of more effective strategies for optimizing online ZISWAF fundraising.
FACTORS CONTRIBUTING TO THE ACCEPTANCE OF VERIFY HALAL APP AMONG THE MALAYSIAN MUSLIM CONSUMERS
The presence of a halal mark on a food product serves as an indicator that the food has been certified as halal and is deemed suitable for consumption according to Islamic dietary guidelines and safety standards. However, the increased demand for halal food in the market has led many business owners to exploit this trend by intentionally misleading consumers with false claims of halal certification. To address these issues, the Verify Halal app platform was developed. However, there is a lack of research on the factors contributing to its acceptance. As such, this study explores the factors contributing to the acceptance of Verify Halal app among the Malaysian Muslim consumers. To achieve this objective, survey questionnaires were distributed online and face-to-face to collect data from 250 Muslim respondents in the Klang Valley area of Malaysia. The data collected were analyzed using SPSS. The results indicate that religiosity, perceived ease of use, perceived usefulness, and social influence contribute positively and significantly to the acceptance of the Verify Halal app. However, trust contributes negatively and insignificantly to its acceptance among Malaysian Muslim consumers. The findings of this study have serious implications for several entities, including halal business owners, halal consumers, halal app developers, and government entities. Specifically, halal business owners should ensure that information about their products listed on the app is accurate, current, and in compliance with halal standards. The findings call on halal consumers to frequently use the app to search for and purchase halal-certified products, which could contribute to the development of an effective community for other users. Halal app developers should prioritize user-centric design principles, which will not only increase initial engagement but also generate positive reviews and referrals, thereby contributing to the Verify Halal app’s market reputation. Finally, various forms of government incentives, such as grants and collaborations, can be provided to facilitate the advancement of the Verify Halal app.
Copyright (c) 2024 International Journal of Islamic Business http://creativecommons.org/licenses/by/4.0
FACTORS INFLUENCING STUDENTS BEING DECEIVED IN PYRAMID SCHEME IN MALAYSIA
Since the middle of the 20th century, multi-level marketing (MLM) became a way of doing business. Unfortunately, not every MLM opportunity is a legitimate business opportunity. Many pyramid schemes, frauds plotted to part the unwary from their money, are disguised. The syndicate activities behind the MLM had targeted university students to make a profit through participation in their business. Therefore, this study intended to measure the factor that might affect the involvement of students being duped in pyramid schemes, including the ambitious, desire to try, surrounding society, family background, and deceived by advertising. This study examines the relationships between the ambitious with being duped in pyramid schemes. This study employed a quantitative method where a questionnaire is used as a method in the collection of the data. The hypothesized relationships are tested using survey responses from 119 university students in Malaysia. The finding of the study revealed that two determinants had a positive relationship being deceived in pyramid schemes among the students: family background and surrounding society. This study’s findings are able for universities and industries can revise their policies to discern the extent of student involvement in the pyramid scheme businesses and take the initiative to help students who fall into this scheme.
MASLAHAH AND ITS APPLICATION IN ISLAMIC FINANCE
In light of the complexity of contemporary Islamic banking and finance difficulties and the fact that certain answers cannot be found in traditional legal texts, maslahah or the public interest has emerged as a secondary source of Shariah to address these difficulties and issues. Maslahah which embodies the notion of achieving the public interest and preventing harm, has been crucial to the development and evolution of products and services in Islamic finance. The purpose of this study is to analyze the concept of maslahah as the secondary source of Shariah whereby the definition, classification, validity of maslahah and the conditions of validity are discussed. The study also highlighted its applications in Islamic finance products and services besides conducting library research analysis on literature from both classical and contemporary maslahah literature as well as the current application of maslahah in Islamic finance products and services. The study explained maslahah mu’tabarah, maslahah mulgha, and maslahah mursalah as the three classifications of maslahah which are considered valid when they are genuine (haqiqiyyah), general (kulliyah) and not in conflict with clear Quranic verse according to the Muslim jurists. The study also found that the concept of maslahah is applied in the establishment of Islamic banking and finance institutions as well as the Islamic capital market whereby policies were developed by the government for the Islamic banking institutions to ensure the products are Shariah-compliant. Additional collateral is required, based on the principles of usul fiqh, for the renewal of mudarabah transactions. On the other hand, ta’widh and gharamah are introduced by Islamic banks to safeguard the interests of both banks and the customers. Finally, zakat financing can help entrepreneurs repay their existing financial obligations.
THE CONCEPT OF FATWA DSN-MUI ON WAQF INSURANCE BENEFITS AND INVESTMENT BENEFITS IN SHARIA LIFE INSURANCE: HISTORICAL STUDY
In general, Indonesian people still do not understand waqf management in Islam correctly and thoroughly. If Muslims examine the benefits of waqf more deeply, it can be ascertained that the benefits can be reaped in this world and the hereafter. The discourse of productive waqf and cash waqf is echoed in Indonesia by several Indonesian figures, thinkers, and scholars so if the main obstacles to waqf are not addressed, it will have an impact on misuse and fraud in waqf. The Indonesian Waqf Board (BWI) should cooperate with the DSN-MUI to issue this waqf fatwa. This article aims to review and analyze the benefits of waqf insurance and investment benefits in Sharia life insurance based on DSN-MUI Fatwa No. 106 of 2016. This research uses a qualitative method with a literature study approach. The results of this study indicate that the principle of this fatwa uses the legal basis of the Qur'an and Hadith by using the istislahi pattern, which is the consideration of benefits based on general nash. In this pattern, general verses are collected to give birth to several general rules that are used to protect or bring certain benefits. They are based on Maqashid Sharia, so that they can help optimize the waqf program in Indonesia. The issuance of the fatwa on waqf insurance benefits and investment benefits in Sharia life insurance is due to a request from an Islamic financial institution, namely Sun Life Financial Syariah and Al-Azhar Waqf Institution, which applied for the determination of the Sharia aspects of life insurance investment benefits for waqf products and waqf insurance policies. For this reason, this DSN-MUI fatwa can be said to be in accordance with the general principle that fatwas are responsive, proactive and anticipatory.
TAKAFUL BUSINESS MODEL AND BUSINESS PERFORMANCE: A COMPARATIVE EVIDENCE FROM THE GLOBAL TAKAFUL INDUSTRY
As a means for takaful operators to survive and sustain their business within the industry, they must appropriately choose takaful business models for their products. Different types of takaful business models will determine the different types of income for the business. Thus, this study aims to identify the most competitive takaful business model that relies on the takaful operators’ business performance. This study employed qualitative and quantitative methods on eight selected global takaful operators. The qualitative method is employed through content analysis to identify the application of the Shariah contract and the respective standards. Meanwhile, the quantitative method analyzes each takaful operator’s business performance (profit-after-tax and the return on assets). The finding indicates that three out of eight operators adopted the wakalah-mudarabah model, two operators with the wakalah model, two with the wakalah-waqf model, and one with the wakalah-qard model. The finding also highlights that Syarikat Takaful Malaysia Keluarga Bhd recorded the highest profit-after-tax average and the average of return on assets using a wakalah-qard model. This study betrays an exigent insight into the effect of takaful business model selection on business performance. As a practical implication to the takaful operators, they need to restrategize their business model to boost revenue through an appropriate model. This study also provides a breakthrough to the body of knowledge. This paper bids its originality by narrowing down the segment of the takaful industry and focusing only on the family takaful segment.
EXPLORING THE BANKERS’ PERSPECTIVES ON SHARIAH AND OPERATIONAL ISSUES OF RESTRUCTURING AND RESCHEDULING IN ISLAMIC FINANCING DURING COVID-19 PANDEMIC
The Central Bank of Malaysia ordered all banks to give an automatic six months moratorium or loan or financing deferment starting April, 1 2020 to their customers during the Covid-19 pandemic since many customers had difficulties paying their monthly financing obligations to banks. Thus, the objective of this paper is to explore the bankers’ perspectives on Shariah and operational issues arising in Islamic banks in implementing moratorium which involves restructuring and rescheduling financing facilities during Covid-19 pandemic. At the same time, the methods these bankers used to manage the issues are also highlighted in this paper. A qualitative analysis is applied in this paper where the researchers conducted interview sessions with the Head of Shariah Department from an Islamic banking window and another from the Development Financial Institution which offers Islamic banking products and services. This study's findings show that there are certain perspectives from bankers in dealing with Shariah issues regarding restructuring and rescheduling during moratorium such as the issue of qalb al-dayn (debt restructuring), capitalization of accrued profit in the financing facilities as well as the operational issues related to the system and people. It can be deduced then that all Islamic banks were doing extremely well in their steadfast endeavors towards offering remedies to the issues faced for the sake of the overall improvement of Islamic banks in the implementation of restructuring and rescheduling of financing facilities as outlined by guidelines or Resolutions issued by the Shariah Advisory Council of Bank Negara Malaysia.
CORPORATE SOCIAL RESPONSIBILITY IN THE HALAL FOOD INDUSTRY: APPLICATION OF SUPPLY CHAIN PERSPECTIVE
This study aims to construct a comprehensive framework for Corporate Social Responsibility (CSR) within the Halal food industry's supply chain. It acknowledges the increasing public attention towards corporate social responsibility (CSR) and supply chain practices in the food industry. It utilizes current literature and recent developments to provide a comprehensive understanding of CSR in the Halal context. Methodologically, this study conducts a systematic review of relevant articles and materials, forming a robust theoretical underpinning. Our findings reveal key CSR dimensions specific to the Halal food supply chain, including animal welfare, health and safety, environmental concerns, and community involvement. The proposed framework not only enhances understanding of Halal supply chain CSR practices but also sets the stage for strategic and operational improvements. Significantly, this study contributes to the scholarly conversation by integrating Islamic principles with contemporary CSR practices, offering a unique perspective that aligns business operations with ethical and religious standards.
CABARAN SEMASA USAHAWAN DALAM PERMOHONAN PENSIJILAN HALAL MALAYSIA DI NEGERI PERLIS
Kerajaan berhasrat untuk menjadikan Malaysia sebagai hab halal antarabangsa. Oleh itu, pelbagai penetapan piawaian, prosedur dan inisiatif telah diperkenalkan bagi membantu pihak industri mematuhi garis panduan halal secara menyeluruh. Objektif kajian ini dilakukan adalah untuk merungkai permasalahan yang dihadapi oleh para usahawan di negeri Perlis dalam permohonan pensijilan halal Malaysia. Kajian ini dijalankan adalah berdasarkan kaedah analisa kandungan melalui data hasil dapatan temubual bersama pegawai di Bahagian Penyelidikan dan Hub Halal, Jabatan Hal Ehwal Agama Islam Perlis, JAIPs sebagai badan berautoriti utama dalam pengurusan halal negeri Perlis. Kajian ini menyimpulkan bahawa pelbagai inisiatif yang telah diambil oleh pihak berautoriti untuk menjaga kredibiliti pensijilan halal Malaysia tetapi, usaha pengawalan perlu dilaksanakan diperingkat dalaman syarikat pemegang pensijilan halal Malaysia. Justeru itu, segala isu cabaran yang diketengahkan dalam kajian ini dapat memberi panduan kepada para usahawan untuk menghadapi cabaran semasa memohon dan memelihara pensijilan halal Malaysia.
EFFECTIVENESS OF E-LEARNING FROM ISLAMIC PERSPECTIVES ON THE COVID-19 PANDEMIC: THE CASE STUDY AMONG UNDERGRADUATE IN MALAYSIA
This research paper aims to study the effectiveness and to explore Islamic perspectives of e-Learning during the Covid-19 pandemic. It focuses on the undergraduate business students, who have used online learning as a part of their learning method. This study uses 118 undergraduate business students from different higher-learning institutions in Malaysia. Later, the analysis is conducted using descriptive and cross-tabulation analysis. The findings show that during the emergency e-Learning, many of the students indicated the ineffectiveness of e-Learning due to the factors of unable or slow internet access or connectivity, working in a limited space and constraints of adapting new environment of online learning. Apparently, findings are also showing that instructors have played a big role in ensuring the effectiveness of e-Learning during the Covid-19 pandemic with various online assessment methods. This study provides a finding on the effectiveness of e-Learning during the Covid-19 pandemic among business students in Malaysia. It offers some new insights related to the effectiveness of e-Learning and helps the relevant policymakers to offer an appropriate intervention strategy in optimizing e-Learning in the future.
THE ROLE OF HALAL-FRIENDLY HOSPITALITY SERVICES IN INCREASING VISIT INTENTION: A MUSLIM TOURIST PERSPECTIVE
Halal friendly hospitality, rooted in the Quran and Hadith, signifies the practice of providing guests with Halal-compliant food, beverages, and accommodations. This study investigates the pivotal role of Halal friendly hospitality services in enhancing visit intention among Malaysian Muslim tourists. It delves into the influence of push and pull factors on this intent. The study employed a proposed model, utilizing survey data collected from 300 local Muslim tourists in Malaysia. The results unequivocally reveal a positive and significant correlation between push and pull factors and Halal friendly hospitality services with overall satisfaction. Furthermore, it highlights a substantial connection between overall satisfaction and the intention to revisit. Significantly, the study contributes to the understanding of how overall satisfaction acts as a mediator between Halal friendly hospitality, push and pull factors, and revisit intention, shedding light on the practical implications for the hospitality industry. This study's findings offer valuable insights for the hospitality industry, emphasizing the significance of Halal friendly hospitality services in attracting and retaining Malaysian Muslim tourists. Understanding the mediating role of overall satisfaction can assist hospitality providers in tailoring their services to enhance the revisit intention of this demographic, ultimately contributing to sustainable growth in the sector.
A REVIEW OF A FINTECH FINANCING PLATFORM: POTENTIAL AND CHALLENGES OF ISLAMIC CROWDFUNDING TO ENTREPRENEURS
The emergence of financial technology, known as fintech, has altered the landscape of traditional financial institutions. Broadly defined, fintech is the application of technology in finance. Conventional and Islamic crowdfunding platforms are fintech innovations that offer a great alternative to traditional financial lenders like banks. This paper aims to provide insights regarding crowdfunding as an alternative fundraising source for entrepreneurs, especially start-ups, who usually face financial challenges. This paper uses a desk research methodology to review the extant literature on crowdfunding as an entrepreneur's funding source. Findings show that crowdfunding adoption is rapidly increasing and is embraced by many underserved entrepreneurs. As a promising alternative, it offers excellent potential by providing services at a lower transaction cost and greater efficiency. It also covers a broader market penetration. Islamic crowdfunding benefits even more, as the nature of Islamic financing helps to curb excessive credit expansion, thus helping to stabilise the economy. The application and importance of Islamic crowdfunding are in line with the three classes of Maqasid-Shariah, which are darūrāt (necessities), ḥājīyāt (needs), and taḥsīnīyāt (luxuries). Nevertheless, crowdfunding is not without problems and challenges. Major problems usually arise from regulatory and fraud issues, such as stolen ideas and lack of proper regulations. This paper may help create awareness about crowdfunding, its potential, and its challenges to entrepreneurs. The findings may also serve as reference points for future researchers to examine further the issues and challenges in the crowdfunding industry, especially Islamic crowdfunding, in promoting competency and sustainability for entrepreneurs' interests.
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