Azila Abdul Razak

The Dynamic Interaction between Islamic Stock Market and Strategic Commodities

In this research, we examine the relationship between FTSE Bursa Malaysia Emas Shariah Index, strategic commodities (such as oil and gold price) and macroeconomic variables in Malaysia from January 2007 to December 2011 using Vector Error Correction Model (VECM). Our findings indicate that Islamic stock prices are co-integrated with strategic commodities and macroeconomic variables. Based on the long run relationship analysis, the Islamic stock price is positively related to industrial production index, money supply aggregate, and crude oil price, while negatively related to consumer price index, Islamic interbank rate, exchange rate of Malaysian Ringgit-United States Dollar, and kijang gold price variables. Meanwhile, there is Granger causality between Islamic stock return and economic growth rate, Islamic interbank rate, and crude oil price. Thus, we can conclude that among strategic commodities, only oil price variables impact the Islamic stock return in the long run and short run in Malaysia.

Economic Significance of Mosque Institution in Perak State, Malaysia

This study explores the performance of mosque fund in Malaysia. Examining the structure of financial fund of a mosque is essential in promoting better socioeconomic development, as well as contributing to new knowledge pertaining to the Islamic finance principles. As the funding comes from the contribution or donation from various parties, the mosque institution is believed to be able to carry out this responsibility and trust. This study was conducted using 137 mosques which involved 1500 respondents in the districts of Batang Padang, Kinta and Hilir Perak, Perak State, Malaysia. The results show that the mosque institution has relatively good financial funds in terms of cash savings and also owned assets. Cash savings in the banks, from the year 2009 to 2011 amounted to RM 3,783,680 million. The results also show that nearly 75 percent of the respondents agreed that the fund of the mosque should be spent on activities that can increase the income of the mosque as this gives a positive impact to the society. In empowering the mosque fund, the public felt that the establishment of a mosque’s co-operative is an excellent method of stimulating the economic activities. However, several issues relating to the management and administration of the mosque need to be addressed urgently in order to empower the mosque fund. Thus, the role of the mosque as a centre of unification and glory of Islamic society in various aspects of life can be achieved.

The Tendency to Use Sunnah Functional Food among Students in Malaysia

The purpose of this study is to identify the influence of factors that affect the tendency to use sunnah functional foods among students using the Theory of Planned Behaviour (TPB). There are three variables for the TPB theory which are attitude, subjective norms and perceived behaviour control which are analysed together with a mediator variable, health claim. This study was quantitative and applied questionnaires as a research instrument in the data collection process. 422 students were selected to be a sample of the study based on a random sampling method of a one-tier cluster. The combination of descriptive and inferential statistics is done in data processing to achieve the objective of the study. The results of the analysis showed that there were four (4) significant hypotheses that also supported the findings. The findings of the analysis show that two variables, which are subjective norms and behavioural controls on the tendency to use sunnah functional foods, are significantly related. Mediator variables show the effect of a moderate intermediary through two variables, attitude and behavioural control. The result of this analysis shows that the TPB theory is able to predict the behaviour of the sunnah functional food. Health claims as a mediator variable are also found to be important as significant factors that attract users to use sunnah functional products. Therefore, the manufacturers actions are marketing functional products by promoting health benefits affecting consumer behaviour. Consequently, producers need to be sensitive and responsible for the claims of the health capabilities offered in a product to ensure consumers receive the nutritional benefits and ultimately form consumer-positive healthy eating habits.