Asmak Ab Rahman

What drives consumers to participate into family takaful schemes? A literature review

Purpose – This paper aims to examine the basic determinants of consumers intention to participate in family takaful scheme using decomposed theory of planned behaviour (DTPB) and identifying relevant factors may be moderate the relationship. Design/methodology/approach – A comprehensive review of the DTPB literature is undertaken, with a particular focus on contribution to family takaful scheme. Findings – The review finds that intention toward participating in family takaful scheme is are not only affected by attitude, subjective norm and perceived behavioural control but also influence by moderating factors like demographic variables, consumer knowledge, situational factors and consumer level of religiosity. Inhibiting factors related to insurance and takaful purchase is also highlighted. Originality/value – Such an extensive review on identifying relevant factors to participate in takaful using DTPB has not been done before. The paper will be useful to researchers, professionals and others concerned wi...

The roles of mass media, word of mouth and subjective norm in family takaful purchase intention

Purpose – This paper aims to address the influence of mass media (MM) and word of mouth (WOM) on subjective norm (SN) and the intentions to purchase a family takaful scheme among Muslim Malaysians. Design/methodology/approach – Data were collected from 384 Muslim consumers in Kuala Lumpur, Malaysia, using a convenience sampling approach. The hypotheses were tested by applying structural equation modelling. Findings – The results revealed that MM and WM were able to influence SN. In addition, the results also found that SN significantly influences intentions to purchase a family takaful scheme. Practical implications – By examining MM and WM on SN, the study validated the importance of both constructs in affecting consumers’ SN and purchase intention. This study would be useful for takaful operators, as the findings would help them to formulate strategies for promotional activities. Originality/value – This paper empirically justifies the relationship between MM and WM on SN and purchase intention of famil...

The role of share waqf in the socio-economic development of the Muslim community: The Malaysian experience

Purpose - – This study aimed to analyse the role of the Waqf Fund Scheme, by taking Penang (or Pulau Pinang) as one of the states in Malaysia as a sample of the study. Waqf Fund Scheme was established by the Islamic Religious Council of Penang, Majlis Agama Islam Negeri Pulau Pinang (MAINPP), in an effort to develop the economy of the Muslim community in the state. Design/methodology/approach - – This study analysed the contribution that this endowment fund makes towards a comprehensive scheme of economic development, namely, in terms of the economic, spiritual and social welfare of the Muslim community in Penang. The primary source of data was obtained through interviews conducted by the researcher with the Manager of the Waqf Fund Scheme, the Head of Administration and Finance Section and the Account Executive of MAINPP. The researcher also interviewed respondents from four institutions that were beneficiaries of the Waqf Fund Scheme. Findings - – The findings of this research show that the endowment fund scheme plays an important role in the economic development of the Muslim community in Penang. The Waqf Fund Scheme contributes by way of providing a financing facility towards the acquisition of waqf assets or through cash support channelled to associations or committees of a masjid. Research limitations/implications - – This study only focuses on Waqf Fund Scheme which was established by MAINPP. Practical implications - – This study is expected to contribute to the improvement of the Waqf Fund Scheme management. Originality/value - – The paper is the first attempt to address the Waqf Fund Scheme contributions by MAINPP, particularly in Penang.

Do Muslims Intend to Participate in Islamic Insurance? Analysis from Theory of Planned Behaviour

Purpose – The purpose of this paper is to apply theory of planned behaviour (TPB) in predicting consumer intention to participate in takaful. One area of concern for takaful operators is the untapped Islamic insurance (takaful) market and lower market share compared to conventional insurance counterparts. It is possible that the application of the TPB could shed some light on the problem and possibly offer some assistance to the takaful operators. Design/methodology/approach – Interrelationships among attitudes, subjective norm, perceived behavioural control and purchase intentions in regard to takaful products participation were examined within a framework of the theory of planned behaviour. A model and series of propositions are developed. The propositions are open to empirical verification and can form the basis for a research stream on takaful participation. Findings – In identifying factors influencing takaful participation, TPB is used and the model incorporates certain individual factors that are l...

Financing universities through waqf, pious endowment: is it possible?

Purpose - – The purpose of this article is to highlight the importance of waqf in financing higher education. Nowadays, higher education is costly and this has prevented students, especially those who are self-financed, from accessing such learning environments. This paper offer an alternative solution to relieve such a situation, namely, through the application of an endowment-based or Design/methodology/approach - – The empirical data were mainly collected using in-depth interviews with the universities’ higher management authorities and some of the members of the board of trustees. Findings - – The findings show that the role of Originality/value - – This article provides the experiences of the Malaysian

Predicting intention to participate in family takaful scheme using decomposed theory of planned behaviour

Purpose The purpose of this paper is to examine the factors that influence an individual’s intention to participate in the family takaful scheme based on decomposed theory of planned behaviour (DTPB). The central hypotheses for this study are that individual’s intentions to participate in family takaful scheme are a result of attitudes towards participation in family takaful scheme, subjective norms, and perceived behavioural control (PBC). Awareness and knowledge, as well as exposure and religiosity, are integrated into the model. Design/methodology/approach Using primary data collection method, 384 questionnaires were distributed to target respondents comprising of Muslims in Klang Valley, Malaysia. The data were analysed using Statistical Package for the Social Sciences and SmartPLS. Findings The DTPB model is effective in predicting individual’s intention to participate in family takaful scheme. Out of 15 hypotheses, 12 were found to be significant. Attitudes towards participation in family takaful scheme, PBC, knowledge, and exposure have significant influences on purchase intention. However, this study found the path from religiosity, awareness, and subjective norm to intention was insignificant. Practical implications The results of this study highlight the applicability of DTPB into takaful research and suggest marketing strategies for family takaful operators. Originality/value The value of this paper lies in its presentation of a model for factors that affect individual’s intention to participate in family takaful scheme.

Tawarruq application in Islamic banking: a review of the literature

Purpose - – This paper aims to present the results of a comprehensive literature review with regard to the application of Tawarruq in the Islamic banking system covering the period between 2011 and before. The review aims to synthesize the previous research, capsulize the structural overview inasmuch as future research might be oriented and identify the gaps and direction for future research. Design/methodology/approach - – A range of published and unpublished documents was collated and filtered based on the defined rules to identify the determinants of the writing. The documents were then be classified into few segments in which content analysis was conducted to capsulize the essence of the subject matter described in the literature. Findings - – The analysis demonstrates that most of the studies discussed the fundamental theories which concerning the area of jurisprudence, while a few of them did discuss the application aspect in the banking environment. However, none of the operational process is discussed in-depth, whereas the risk of Shari’ah non-compliance might arise in the detail transaction. Research limitations/implications - – The databases used in the search might not contain all the documents that could be relevant for the review. Furthermore, the defined-rule for document searching and selection excluded the out-of-scope documents that might be relevant. Originality/value - – This paper identifies the gaps that become apparent in the literature in assisting researchers to ascertain the interesting areas as well as the direction for future research.

The Theory of ‘Promise’ (Waʿd) in Islamic Law

This article aims to clarify the concept of promise (waʿd) and questions whether a promise, albeit personal or transactional, is by nature binding on the promisor under Sharīʿah law. The term waʿd is also discussed in relation to other concepts involving promise: i.e., ʿaqd (contract), ʿahd (covenant or binding agreement), nudhur (vows), and juʿālah (payment for performing a service). A number of studies have concluded that waʿd is not obligatory on the promisor, unless the promisee incurs a loss due to a breach or deceptive promise. However, after reviewing the opinions of a number of classical Islamic scholars, this study concludes that under Sharīʿah law all promises are generally binding on the promisor, except in light of valid excuses or mitigating circumstances.

The roles of domestic and foreign Islamic banks in Malaysian monetary transmission

Purpose - – The aim of this paper is to empirically test the presence of the bank lending channel for the Islamic banking system in Malaysia. Design/methodology/approach - – Distributional effects from monetary policy changes were analyzed by three bank characteristics such as size, liquidity and capital. Using the econometric model by Kashyap and Stein (1995), the implementation of a policy contraction leads to reduction in loan supply because some banks may not able to offset a reduction in deposits. The paper explores the response shown between domestic and foreign Islamic banks in Malaysia using bank-level data from 2005 to 2010. Findings - – The empirical result indicates presence of the bank lending channel in the Islamic banking system in Malaysia, size and liquidity as sources of difference response of financing supply in domestic bank and capital for foreign Islamic bank and Islamic interbank rate as an efficient tool in conducting monetary policy especially in the Islamic banking system. Originality/value - – The paper manages to explore the effectiveness of Islamic the monetary policy tools in the Islamic Banking system in Malaysia. Using Islamic interbank rate as a policy tool, it provides valuable view to policy makers, who are analyzing for efficiency of transmission channel.

Society’s Understanding of Family Takaful: A Study in Southern Thailand: A Study in Southern Thailand

Originality/value – This is the first empirical study of takaful in Thailand. It was conducted to determine the level of understanding of family takaful in the Muslim communities of southern Thailand and to compare the levels of understanding of family takaful between those who have participated in it and those who have not.